Vanguard says it helps customers save for the future, but unless the company deals with its climate problem now, its customers will be paying the price for its climate inaction.

Vanguard invests about $300 billion in fossil fuels, and it’s already costing the company and its customers money. The Institute for Energy Economics and Financial Analysis found that Vanguard’s largest fund has underperformed almost 6% as compared to a benchmark that excluded fossil fuels. And this trend is only predicted to increase. 

Plus, climate change threatens to profoundly hurt the economy across all sectors. So, if Vanguard and the other largest investors, insurers, and banks don’t take more responsibility for stopping the money pipeline to fossil fuel companies, Vanguard customers’ savings will take a significant hit across their diversified investments. 

References:

Vanguard Group: Passive About Climate Change. Institute for Energy Economics and Financial Analysis. 

Climate in the Boardroom: How Asset Manager Voting Shaped Corporate Climate Action in 2021. Majority Action.