Disney, Qualcomm Face Investor Votes on Climate Risk Fueling California’s Insurance Crises and Risking Employee Retirements
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Disney, Qualcomm Face Investor Votes on Climate Risk Fueling California’s Insurance Crises and Risking Employee Retirements
Disney and Qualcomm’s 401(k) investments expose the life savings of employees to climate risk, are out of alignment with their own public targets, and exacerbate physical risks to their California operations
MEDIA CONTACT: Ryon Harms, ryon@asyousow.org, 310.579.2188
EL CERRITO, CA—March 18, 2025 — This week, Disney (NYSE: DIS) and Qualcomm (NYSE: QCOM) shareholders will vote on proposals asking the companies to report on how they are protecting employees from growing climate portfolio risk in their company retirement plans. The proposal was filed by shareholder representative As You Sow on behalf of investors concerned about Disney and Qualcomm’s 401(k) plan investments in high-carbon industries that threatens workers’ life savings, particularly those with retirement dates more than a decade out. A failure to consider and address contribution to systemic climate risk from retirement plans creates reputational risk, violates fiduciary obligation, and exposes operations in California to ever more extreme weather.
“The recent devastating wildfires in southern California are a stark reminder that climate change is here now, destroying lives and property and imposing immense financial costs,” said Danielle Fugere, President of As You Sow. “By allowing workers’ hard-earned savings to be invested in fossil fuel companies and other high-carbon industries that are driving climate-related harm, the companies are failing to protect their employees’ long-term financial security.”
This failure of oversight carries real financial implications for plan beneficiaries, especially younger employees whose life savings are exposed to growing climate portfolio risk over a longer time horizon. A recent report found that Qualcomm employees could have made over $230 million more in returns had Qualcomm moved to decarbonize its retirement plan 10 years earlier. Both plans have, as their most popular options, target date funds that do not integrate climate risk into investment strategy or hold companies accountable for their climate impacts through proxy voting.
“Climate harm is outpacing financial market expectations and hurts the American people--from insurance-affordability and lack of coverage, to climate-associated inflation from skyrocketing building costs and drought-devastated and flooded farms, to more heat-related deaths, and higher utility bills from extreme weather,” added Fugere. “The obvious solution is to stop investing in more climate change.”
Investors also raised concern that Disney could face reputational risk from the dissonance between the company’s mission to inspire young people around the world, while at the same time jeopardizing their future with high carbon investments in its 401(k) plans. Disney’s retirement plans have more than $897 million of employee savings in high carbon industries like oil & gas, coal-fired utilities, and agribusinesses connected to deforestation.
Surveys suggest that 84% of individual U.S. investors and 96% of Millennials are interested in sustainable investing, raising shareholder concern that the lack of climate-safe investment options could harm the ability of companies to attract and retain top talent. Last year, more than 1,000 Google employees signed a petition urging their company to offer a fossil-free 401(k) plan.
"Disney has long been a company that inspires young people and helps them imagine a bright future,” said Andrew Behar, CEO of As You Sow. “Employees across the U.S. want retirement plans that align with a safe and prosperous future. But that future is under threat as climate risk grows—both for the company and for its employees who will be invested in the market for years. If companies like Disney don’t respond now, the future their younger employees retire into will be dramatically different, and much less safe and profitable than today.”
As You Sow publishes monthly report cards rating retirement plans and mutual funds as part of its Invest Your Values initiative.
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ABOUT AS YOU SOW
As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility. Its focus areas include climate change, ocean plastics, toxins in the food system, the Rights of Nature, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.