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MEDIA CONTACT: Ryon Harms, ryon@asyousow.org, 310.579.2188

University Employees Worsen Climate Crisis by Investing in Fossil Fuels Through Retirement Funds from TIAA CREF and Vanguard

New research from As You Sow reveals how employees at universities, who dedicate their lives to educating the next generation, are funding corporate polluters fueling climate change

EL CERRITO, CA—FEBRUARY 6, 2025 — A new analysis from shareholder representative As You Sow found over $1 billion in fossil fuel investments by faculty and staff at five high profile universities, including Harvard, Princeton, and Northwestern. The high-risk investments were found inside retirement funds from TIAA CREF, Vanguard, and other major asset managers. The funds are offered to university employees, including faculty, administration, and staff, as part of their workplace 401(k)-style plans. In addition to risky fossil fuel investments, the research also found investments in other companies with environmental and social risks, including military weapons manufacturers and private prison operators.

As You Sow’s analysis looked at defined contribution plans offered by five large universities: Columbia, Harvard, Northwestern, Princeton, and Notre Dame. Among the findings: TIAA CREF variable annuities and Vanguard Target Retirement funds were major contributors to the risky investments. Four of the five universities had more than 60% of fossil fuel investments coming from those funds. The percentages were similar for military weapons and prison industry investments.

“As a student at Northwestern, I would urge our university, professors and staff to embody the values that guide our education,” said Zoe Lewis, a student at Northwestern University, “Investing in sustainable, fossil fuel-free futures is non-negotiable.”

Separate from investments in university pension plans or endowments, 401(k)-style defined contribution plans offer employees a choice of where to direct their savings. Each of the plans analyzed offered sustainable fund options with reduced exposure to fossil fuels, weapons, and prisons. But many participants are either unaware or are choosing not to use these options, with the amount invested in sustainable funds dwarfed in comparison to the amount invested in non-sustainable funds.

Most employees across the U.S. are unaware their retirement plan investments are invested in environmentally and socially risky companies. Fossil fuel investments face long-term decline as the world transitions to cleaner energy, and both create and are subject to growing systemic climate risks, including: physical infrastructure impacts; supply chain disruptions; reduced resource availability; financial losses associated with stranded assets; and inaccurate valuations, among others. The wide-ranging impacts of climate harms will have portfolio-wide consequences to employees saving for retirement.

“Educators are supporting industries that run counter to their universities stated philosophy and goals without knowing it,” said Andrew Behar, CEO of As You Sow. “They dedicate their lives to educating future generations, yet their retirement savings are being funneled into companies that are fueling the climate crisis. If they knew there was an alternative, most of these employees would like their retirement funds invested in companies that are building a sustainable future for students.”

The university plan ratings are the latest addition to As You Sow’s Retirement Plan Sustainability Scorecard, which gives employees at corporations, government agencies, and nonprofits the tools and transparency needed to ask employers to address these risks. The full analysis of the findings can be found on FossilFreeFunds.org.

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As You Sow is the nation’s leading shareholder representative, 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, 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.