BusinessEnvironmentHow Climate Friendly is Your 401(k)?

How Climate Friendly is Your 401(k)?


- Advertisment -sslate

As states like North Dakota debate whether to stay committed to fossil fuels, an online scorecard gives people with retirement accounts a glimpse into what role their investment portfolio plays in keeping the industry funded.

The nonprofit As You Sow is out with its latest Fossil Free Funds ratings.

Andrew Montes, director of digital strategy for As You Sow, said they grade investment firms based on which energy sources their funds are linked to. He added it might not be as obvious to most account holders.

“Just to use one from a major asset manager, from Vanguard, within the Vanguard 500 Index Fund, you’re going to find investments in JPMorgan Chase,” Montes explained. “JPMorgan Chase is the highest lender to fossil fuels over the last few years.”

Conservationists Warn of Power Grab in FL's Energy Policy

While some of Vanguard’s funds get higher grades, a significant portion received “D” and “F” grades, including its most common plans. In the past year, fossil-fuel company stocks have netted returns, even in a down market. But some believe the gains are short-term.

Montes pointed out his group’s view is not only do such investments contribute to the climate crisis, they could also become a more risky strategy as the world shifts to renewable energy.

“What is the world going to look like if you are, today, a 30-year-old working at a company, and you’re thinking about 30 years down the road?” Montes posed. “Well, climate change has to be a major factor in what’s going to impact your investments over that time.”

Energy analysts have noted as costs for renewables like wind and solar go down, they are likely to see stronger investments. And as sources like coal see less demand, portfolios still wrapped up in such ventures could become stranded assets.

On its website, As You Sow has a toolkit with guidance on how to respond to fund managers maintaining significant investments in fossil fuels.

Sunshine Slate
Sunshine Slate
Sunshine Slate is your news, entertainment, music fashion website. We provide you with the latest breaking news and videos straight from the United States of America.


Please enter your comment!
Please enter your name here

Latest news

Redefining Professional Spaces: The Rise of Dual-Purpose Backyard Office Sheds in America

The American Dream Reimagined: Backyards Transforming into Profitable Workspaces

The Ultimate Fighter 31: McGregor vs. Chandler: The Battle Begins

The Ultimate Fighter 31 is set to premiere on ESPN+ on June 6, 2023, and it is sure to be a must-watch for fans of mixed martial arts.

Florida Faces Lawsuits Over Sweeping New Elections Law

The moment Florida Governor Ron DeSantis signed a sweeping elections bill into law last week, several voter-advocacy groups filed lawsuits against it.

U.S. House Votes to Rescind Student Debt-Relief Program

A new report outlined the importance of student debt relief to workers in New York and across the country.
- Advertisement -

How to Style Activewear for a Versatile Wardrobe

Learn now how to mix and match your sportswear pieces for a versatile wardrobe. Sports clothes are now part of activewear fashionista looks

Pool Builders: Your Ultimate Guide to Choosing the Right One

Building a swimming pool is a significant investment, and choosing the right pool builder is crucial to ensuring a successful project.
- Advertisement - Motel 6

Must read

Best Apps for your New Mobile Phone

We can install any app from the google play store very quickly. Let’s take a look at some most amazing apps for android mobile phones.

Survivors Call for Monument in Honor of Fallen Heroes

Congress is moving forward with plans to build the monument to honor the 3,600 Americans who have earned the nation's highest award for valor in combat.
- Advertisement -
- Advertisement -sslate

You might also likeRELATED
Recommended to you