The Impact of Energy Sector Investments on the Financial Value of Tech 401(k) Funds
Could fossil free funds have saved over $5 billion for these 12 tech companies’ 401(k)s? This study from researchers at the University of Waterloo, in partnership with As You Sow, finds that more than 2,000,000 employees from 12 tech-sector companies could have earned an estimated $5.1 billion in additional returns had their employers moved to decarbonize their retirement plan holdings 10 years ago. The report analyzed the employee 401(k) plans of Adobe, Amazon, Apple, Broadcom, Google, Intuit, Meta, Microsoft, Netflix, Oracle, Qualcomm, and SAP America, estimating cumulative 10-year returns with and without fossil fuel investments, and found a difference of +8.9%, or +0.86% per year invested, in favor of fossil free portfolios. The analysis looked at equity funds and target date funds in these 401(k) plans, using data from company filings with the U.S. Department of Labor.
Roughly a third of U.S. household wealth is held in the form of retirement assets. Most employers have yet to use the tools at their disposal to protect their employees from climate-related financial risk. Fossil fuel stocks have underperformed the broader stock market over the last decade. But U.S. retirement accounts are overwhelmingly invested in traditional mutual funds that are heavily exposed to high-carbon sectors. Will these companies embrace this opportunity to protect their employees from financial risk and shift billions of dollars away from climate destruction?
Fill out the form below to read the report.
View Full Report
As You Sow will never trade or sell your e-mail address.
DISCLAIMER: As You Sow is not an investment adviser as that term is defined under federal and state (California) laws and regulations. As You Sow is a tax-exempt, nonprofit organization dedicated to educating and empowering shareholders to change corporations for the good through the collection, analysis and dissemination of relevant information to the public, free of charge. As You Sow does not provide financial planning, legal or tax advice. Nothing on this website shall constitute or be construed as an offering of financial instruments, or as investment advice or investment recommendations. See our full disclaimer.