Nike is facing fresh scrutiny as Canada's ethics watchdog investigates allegations of Uyghur forced labour in the company's Chinese operations.
The probe follows complaints filed by human rights groups, reported the BBC. Nike claims it severed ties with the accused companies.
The Canadian Ombudsperson for Responsible Enterprise (Core) has initiated the first investigation since its complaint mechanism was launched in 2021. The agency alleges that Nike Canada Corp has supply relationships with Chinese firms identified by the Australian Strategic Policy Institute as using or benefiting from forced labour. Nike has stated that it no longer sources products from the Xinjiang Uyghur Autonomous Region (XUAR).
Another company under investigation, Dynasty Gold, denies benefiting from forced labour at a mine in which it holds a majority interest.
The ethics watchdog has a mandate to hold Canadian companies accountable for human rights abuses in their overseas operations.