“We encourage Nike to explore implementation of the American Bar Association Model Contract Clauses, and of the recommendations of Sustainable Terms of Trade Initiative (STTI), which are both designed to reflect a shared responsibility to supplier standards. ”
In an impactful joint effort, ABN AMRO and CCLA Investment Management, supported by ICCR, PGGM, and Triodos Investment Management, have collaborated to send a crucial joint investor letter to Nike on September 7, 2023. The letter presses Nike to address outstanding wage payments for garment workers in factories located in Cambodia and Thailand, both affiliated with the Ramatex Group.
The joint letter explicitly refers to STTI, encouraging Nike to explore the implementation of the American Bar Association Model Contract Clauses and the recommendations of the Sustainable Terms of Trade Initiative (STTI) because these mechanisms are designed to promote shared responsibility to supplier standards, emphasizing ethical purchasing practices and supply chain collaboration.
The joint investor letter sheds light on two distressing cases of labour violations involving workers employed by Nike's major international supplier, the Ramatex Group. Workers from Violet Apparel in Cambodia and Hong Seng Knitting in Thailand were not fully compensated for wages and benefits in 2020, amounting to a collective $2.2 million owed to over 4,500 workers in Cambodia and Thailand combined.
The investors, representing over $2.1 trillion AUM/AUA, emphasized the need for immediate remedy through payment of unpaid wages and benefits, aligning with the United Nations Guiding Principles for Business and Human Rights and the OECD
Guidelines for Multinational Enterprises. By late September, more than 50 investors had joined the group of signatories in this powerful joint letter, highlighting the urgency and importance of the issue. |
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