Nike shareholders reject climate proposal backed by Norway wealth fund

On September 8, Nike shareholders voted down a proposal advocating for greater transparency regarding the company's climate goals, including information on how Nike intends to meet its emissions reduction targets. The shareholder resolution reignited questions about Nike's prioritization of environmental objectives amid financial challenges, U.S. political pressure, and global scrutiny over environmental claims.

In 2019, Nike pledged to cut its carbon emissions by 65% across its own operations and by 30% across its supply chain by 2030. However, the company's fiscal 2024 update revealed that supply chain emissions had only decreased by 11% from a 2015 baseline. Despite Nike's market capitalization of approximately $56 billion, the company did not disclose the exact results of the shareholder vote.

Norway’s wealth fund, Nike’s 11th-largest shareholder, backed the push for more transparency, stating that while they do not believe Nike is neglecting its environmental responsibilities, they seek greater clarity on the company's progress. Nike's impact report from 2024 highlighted its efforts to utilize recyclable materials and assist factories in sourcing renewable energy for its supply chain.

However, Nike's board defended its decision, emphasizing that management is best equipped to determine suitable targets and disclosures. The athletic footwear company is currently facing declining sales, reduced market share, and CEO Elliott Hill's efforts to enhance product innovation since taking office two years ago. Nike's shares have declined by around 40% this year.

In addition to the climate proposal, shareholders approved executive compensation, with Nike CEO Elliott Hill earning more than $36 million in fiscal 2026. Norway’s wealth fund had planned to vote against executive compensation, arguing that the board should ensure all benefits have a clear business rationale. A proposal from conservative investors to exclude gender-transition surgery for minors from employee health plans also failed to pass, further intensifying scrutiny over Nike's diversity policies.