Nike is facing an official investigation in Canada over allegations that its supply chain relies on forced Uyghur labor in China. The probe was initiated by the Canadian Ombudsperson for Responsible Enterprise (Core), the country’s ethics watchdog.
Core launched the investigation based on complaints filed by human rights organizations, as reported by the BBC. This marks the first official probe under Core’s complaint mechanism introduced in 2021.
The agency alleges Nike Canada Corp. maintains supply relationships with Chinese factories identified as utilizing or profiting from forced Uyghur labor. Nike claims to have cut ties with the accused suppliers.
Another company, Dynasty Gold, is also under investigation for allegedly benefiting from forced labor at a mine where it holds a majority stake. Dynasty Gold denies the accusations.
Core has a mandate to hold Canadian corporations accountable for overseas human rights violations. The Nike investigation focuses on potential Uyghur forced labor in China’s Xinjiang province.
Nike says it no longer sources any products from Xinjiang amid widespread reports of human rights abuses in the region. However, supply chain traceability issues have persisted.
The probe represents rising pressure for apparel brands to ensure transparent, ethical sourcing free of forced labor in Chinese factories. Nike faces potential reputational and operational impacts pending Core’s findings.