London-based activist shareholder platform Tulipshare is urging Nike  to be more transparent about the working conditions in its supply chain, as reported by Reuters on March 30. In a shareholder proposal, Tulipshare asked for a report from Nike on its equity goals and human rights commitments, and requested information on how Nike tracks forced labor and wage theft risks. The group aims to help investors push for environmental and social commitments. Tulipshare has criticized Nike for failing to adequately disclose how it assesses the risk of forced labor within its supply chain and cited ongoing labor complaints against the company.

This criticism by Tulipshare contrasts with Nike’s sustainability claims. In the past two years, Nike has claimed to have revamped its operating systems and supply chain, adapting to customers’ needs more directly and promoting long-term growth. The company has created a multi-node regional distribution network and implemented AI and machine learning to predict and plan ahead for consumer demand. It has also focused on sustainability by reducing split packages, using pop-up cartons made from recycled content, and launching initiatives like Nike Refurbished. Additionally, Nike has prioritized health and safety for its employees, creating an advanced COVID protocol and investing in career development and community volunteering opportunities. Despite these efforts, Tulipsharebelieves that Nike needs to provide more transparency about its supply chain practices, particularly in regards to forced labor and wage theft risks.

Sources:

https://www.reuters.com/business/retail-consumer/nike-faces-shareholder-proposal-human-rights-2023-03-30/
https://futurevvorld.com/footwear/nike-supply-chain-2022-distribution-centers-cobots-artificial-intelligence-recycled-packaging-shipping-sustainability/