We understand why some groups are taking this approach, but here’s the problem: as of February 2023, less than 0.5% of Vanguard’s assets under management were invested in ESG funds (investment funds using environmental, social, and governance criteria to screen out certain companies). Making customers go out of their way to find and choose ESG funds has led to only marginal amounts of money being invested this way, and a continuation of the status quo. Furthermore, many ESG funds are not what they seem and can include fossil fuels, fossil fuel finance and insurance, and other destructive industries, like incineration. Check out this resource to see if your current funds are fossil free.

As more and more customers look for sustainable funds, and move their investments when they don’t find them, all asset managers will start to get the message and create more options. Because Vanguard is the world’s #1 investor in fossil fuels, with one of the worst shareholder proxy records, that means that almost any asset manager you choose will be better.