The issue: Fossil fuel finance & insurance
Financial companies are supporting fossil fuels
Banks and insurers that finance and underwrite fossil fuels - including tar sands, arctic drilling, and coal mining - may be hidden in your 401(k).
Retirement plans are invested in climate-risk finance
Commercial and investment banks are lending to fossil fuel companies, despite this carbon-intensive funding being fundamentally incompatible with reaching the 1.5-degree aligned global goal necessary to prevent catastrophic climate harm.
Primary insurers and reinsurers are also continuing to underwrite and invest in coal, oil, and gas, while experiencing dramatic losses associated with catastrophic weather-related events.
By continuing to financially support fossil fuel projects, banks and insurers are not only responsible for exacerbating climate and social impacts, but they are also exposing investors to financial risks.
FOCUS: SUSTAINABILITY RISK
Banks financing fossil fuels
Since the Paris Agreement, the six largest U.S. banks — JPMorgan Chase, Citi, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs — have provided $1.4 trillion in financing to the fossil fuel industry, contributing to the climate crisis and resulting in substantial portfolio risk for investors.
401(k) participants deserve to understand the climate risk embedded in their portfolios from these financial institutions.
Offer climate-safe retirement plan options
Company retirement plans should offer fund options that are sustainably invested and climate-safe, avoiding investments in fossil fuels, including climate-risk financial companies.