Alphabet Shareholders Call for Climate-Safe Retirement Funds
Momentum for climate-safe retirement plans grows in corporate America
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Sophia Wilson, [email protected], (341) 600-1832
BERKELEY, CALIFORNIA—JUNE 6, 2024—Tomorrow, Alphabet Inc. (NASDAQ: GOOG) shareholders will vote on a proposal asking Alphabet, Google’s parent company, to report on how it plans to protect its employees from the financial risk created by investing in fossil fuel and other high-carbon companies. The resolution is filed by shareholder representative As You Sow.
The vote follows the release of new research finding that tech companies, including Google, missed out on more than $5 billion dollars in 401(k) returns by failing to decarbonize its retirement plans over the past ten years.
“Climate change poses a material risk to retirement plan beneficiaries,” said Andrew Behar, CEO of As You Sow. “Google has a responsibility to protect its employees from these risks, and its failure to do so may violate its fiduciary obligation to manage the plan in the best interests of its employee beneficiaries -- many of whom will retire decades into the future when climate impacts will be even more catastrophic than now. A climate-safe retirement plan will not only protect employees’ financial futures, it will the protect the company from the economic impacts of climate change, a win-win.”
More than 66% of Google employee 401(k) savings are invested in the company's default target date option from Vanguard, which is heavily exposed to high-carbon and deforestation-intensive industries. These investments contribute to climate change, create systemic portfolio risk, and typically perform poorly over the long-term, particularly for younger beneficiaries whose retirement benefits are likely to be harmed due to climate-related financial losses.
In recent months, Google’s employees have begun mobilizing to pressure their company to address the nearly $2 billion in fossil fuels investments held by their target date and other equity funds. An internal petition with more than 1,000 employee signatures demands that the company leverage its power as Vanguard’s largest corporate client to push Vanguard to offer better, climate-safe options.
“I’m proud of Alphabet’s industry-leading climate commitments. Yet, the $2 billion Alphabet employees have invested in fossil fuels through the company’s retirement fund options is misaligned with these goals,” said Samuel Gooch, a technical program manager at Alphabet subsidiary Waymo. “These investments have also cost employees more than $1 billion dollars over the last ten years because fossil fuels are one of the poorest performing sectors in the S&P 500.”
Google promotes its “third decade of climate action” on its main landing page and underscores how critical it is to “track our progress and be transparent with what we’ve accomplished and where we’re going.” As an identified leader on climate action, shareholders now ask that Google address the risks of investing billions of dollars of employee retirement savings in fossil fuels and other high-carbon companies.
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As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, toxins in the food system, biodiversity, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.