The Globe and Mail reports in its Friday, Sept. 6, edition that investor pressure is growing on Nike ahead of its annual shareholder meeting. A Reuters dispatch to The Globe reports that Norway's sovereign wealth fund plans to support a resolution urging Nike to address working conditions in its garment factories. Nike is facing sales declines and supply chain criticisms, with MSCI downgrading its ESG (environmental, social and governance) rating. The resolution, proposed by 60 investors including Domini Impact Equity Fund, calls for better addressing persistent rights abuses. Last year, Nike faced calls to pay $2.2-million (U.S.) in wages to workers at its Cambodian and Thai suppliers. Rights groups said the workers were denied severance pay owed to them after factory shutdowns during the pandemic. Nike denied the allegations and is in communication with the resolution's co-filers. The resolution reflects a push from some investors for Nike to create binding agreements with workers at factories and suppliers in countries where worker exploitation is a problem. It asks Nike to consider whether binding agreements with workers would improve its ability to address human-rights issues when sourcing from high-risk countries.
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