Can't investors just choose funds that reflect their values? If customers ask for it, Vanguard will provide it.
We need Vanguard to significantly increase its investments in climate-friendly funds by offering those funds as the default option for its customers.
Vanguard has a few ESG funds (investment funds using environmental, social, and governance criteria to screen out certain companies). But as of May 2021, only 0.29% of Vanguard’s assets under management were invested in ESG funds! That means Vanguard is still investing over $8 trillion of its customers’ money in standard funds. Making customers go out of their way to find and choose these few ESG funds has led to only marginal amounts of money being invested in more socially responsible funds, and a continuation of the status quo.
We believe in the power of customers taking strategic action to push for funds that reflect their values. That’s why we’re organizing Vanguard customers to leverage their power and pressure Vanguard to deal with its climate problem. If you’re a Vanguard customer and want to get involved, please fill out this form and we will be in touch!
Vanguard Group: Passive About Climate Change. Institute for Energy Economics and Financial Analysis.
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