Here’s a monthly roundup of the Engagement work happening at SHARE.
Garnering support for freedom of association at Tesla
In advance of Tesla, Inc.’s annual general meeting on June 13, SHARE, the Committee on Worker’s Capital (CWC) and other investor partners co-hosted Driven to the Edge: An investor briefing on freedom of association and collective bargaining at Tesla.
Tesla has been repeatedly accused of interfering with workers’ rights across its global operations, exposing its shareholders to operational, legal, and reputational risks and jeopardizing the company’s long-term value.
In response to these allegations, SHARE co-filed a proposal urging the Tesla board to adopt and disclose a Non-interference Policy upholding the rights to freedom of association and collective bargaining in its operations, as reflected in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.
The proposal received 30 per cent support from independent shareholders, indicating significant shareholder concern around this issue. SHARE is evaluating next steps.
Engaging with Nike on human rights
In March, SHARE and a group of co-filers submitted a shareholder proposal at Nike, Inc., asking the company to publish a report evaluating how implementing worker-driven social responsibility (WSR) principles and supporting binding agreements would affect the company’s ability to identify and remediate human rights issues in sourcing from high-risk countries.
Investors are concerned that Nike’s current approaches to addressing and mitigating these issues in their supply chain are ineffective, leaving it exposed to legal and reputational risk.
The proposal recognizes that Nike sources from high-risk countries where labour laws are inadequately enforced or subject to corruption, exposing the company to operational disruptions, legal liability, and reputational harm.
Nike must enhance its due diligence in these contexts, and the adoption of WSR principles would better position Nike to mitigate these risks, take the lead in corporate accountability and effective supply chain management and deliver meaningful human rights outcomes.
SHARE managed to secure a meeting with the company in late April, but unless significant progress is made, the proposal will be voted on at Nike’s upcoming annual general meeting in September.
