Business 4 min read By Alice Ashford
Nike shareholders reject climate proposal backed by Norway wealth fund
Nike shareholders voted against a climate-related proposal at the company's annual meeting, despite backing from Norway's sovereign wealth fund, signalling continued resistance to environmental resolutions among major investors.
Nike shareholders have voted down a climate-related proposal at the sportswear giant's annual meeting, rejecting a resolution that had drawn support from Norway's sovereign wealth fund, one of the world's largest investors. The outcome underscores the continuing difficulty environmental activists face in pushing climate targets through corporate governance channels at major consumer brands.
The proposal, which sought to compel Nike to adopt more aggressive emissions reduction targets aligned with the Paris Agreement, failed to secure majority backing from investors. Norway's Norges Bank Investment Management, which manages the country's $1.6 trillion oil fund and holds a significant stake in the Oregon-based company, had publicly supported the resolution ahead of the vote.
The rejection follows a pattern seen across corporate America in recent years, where climate-focused shareholder resolutions have struggled to gain traction despite growing institutional investor interest in environmental, social and governance issues. While some European asset managers have pushed harder for binding climate commitments, many US-based funds remain reluctant to impose targets that could constrain management flexibility or affect short-term financial performance.
Nike had recommended that shareholders vote against the proposal, arguing that its existing sustainability strategy already addresses the concerns raised. The company has previously committed to reducing greenhouse gas emissions across its supply chain and has set interim targets for 2030, though critics contend those goals fall short of what is needed to limit global warming to 1.5 degrees Celsius.
The vote comes at a delicate time for Nike, which has been navigating slowing demand, inventory challenges and increased competition from rivals such as Adidas and emerging brands like On and Hoka. The company has also been managing a broader strategic review under new chief executive Elliott Hill, who returned to lead the business in late 2024 after a period of declining sales and margin pressure.
Norway's wealth fund has become increasingly vocal on climate issues in recent years, regularly backing shareholder resolutions that push portfolio companies toward net-zero commitments. The fund has also engaged directly with boards on executive pay, board diversity and environmental risk disclosure. Its support for the Nike proposal reflects a broader push by the fund to align its vast portfolio with international climate goals.
Despite the defeat, shareholder activists are likely to continue pressing Nike and other apparel companies on their environmental record. The fashion industry is estimated to account for around 10 percent of global carbon emissions, and brands face mounting regulatory pressure from both the European Union and individual states to improve supply chain transparency and reduce waste.
Nike's next major test on climate governance will come as it reports annual sustainability metrics and as investors weigh the company's progress against its stated commitments. For now, the rejection signals that a majority of Nike's shareholders remain comfortable with the board's current approach, even as the debate over corporate climate responsibility intensifies across global markets.
