Amazon, Comcast Seek to Silence Shareholder Voices on Climate Risk in 401(k) Plans
Company retirement plans are imposing climate-related financial risk onto employees, jeopardizing workers' futures.
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Stefanie Spear, sspear@asyousow.org, 216-387-1609
BERKELEY, CA—FEB. 15, 2023—Amazon and Comcast recently submitted “no-action” requests to the U.S. Securities and Exchange Commission (SEC), requesting the exclusion of shareholder resolutions proposed by As You Sow from the companies’ proxy statements. The two resolutions called for reports asking how the companies are protecting employees from climate risk stemming from their retirement plans’ default investment options.
The “no-action” motions aim to silence shareholders who are merely posing a straightforward and pertinent question about the degree to which carbon-intensive investments in the default investment option contribute to greater beneficiary risk and reduced plan performance over time.
These resolutions focus on the fact that because high carbon investments increase climate-related systemic risk over time, retirement portfolios face the likelihood of diminishing returns, harming younger workers proportionally more than workers who will access retirement savings in the shorter term. It is unsurprising, therefore, that those with the most at stake — plan beneficiaries — overwhelmingly favor responsible management of climate risk in their retirement portfolios.
This is the second year As You Sow has filed resolutions asking Amazon and Comcast to address climate risk in their 401(k) plans. Last year, resolutions at both companies achieved a high enough shareholder vote to be refiled again this year, yet the companies continue to attempt to silence valid concerns from their shareholders.
“Employees saving for their future continue to be denied the freedom to invest the way they want to invest,” said Andrew Behar, CEO of As You Sow. “It’s a matter of personal freedom, and these companies are denying that freedom by offering default investment options filled with fossil fuels, deforestation, private prisons, and weapons companies.”
As You Sow, a nonprofit shareholder advocacy organization, publishes monthly report cards rating mutual funds, EFTs, and retirement plans as part of its Invest Your Values platform. The initiative has now analyzed and scored 38 401(k) retirement plans, plus two university 403(b) plans.
"Polling shows large majorities of employees want their retirement savings to be in climate-safe sustainable investment options,” said Grant Bradski, As You Sow’s sustainable investing initiative coordinator. “Companies that aren't responsive to this demand are not only exposing their workers to climate-related financial risk, but also may have issues with hiring and employee retention.”
The “no-action” motions claim that shareholders do not have the right to inquire about climate risk stemming from their 401(k) plans. As You Sow is contesting these requests by submitting briefs to the SEC, advocating for the protection of shareholder rights to ask relevant questions without being silenced.
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As You Sow is the nation’s leading shareholder advocacy nonprofit, 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, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.