Dear John,
More than 140 million American workers participate in 401(k) or other retirement plans, yet less than 3% of employee retirement savings plans include climate-friendly investing options. As the physical impacts and transition risks of the climate crisis get worse, the financial costs will continue to rise, unless we significantly increase the investment in a low-carbon economy. As such, retirement fiduciaries must be empowered to evaluate all factors that impact risk and return, including climate change, which affects nearly every sector of the economy. Plus, studies show that environmental, social and governance (ESG) funds consistently have competitive returns with lower risk relative to
the broad market, making these investments a safer bet for American workers.
So what can you do to help ensure that millions of Americans can invest in a sustainable future?
A new proposed rule from the U.S. Department of Labor would open the way for plan sponsors to include more sustainable options in their retirement saving plans. If this rule is adopted, more than $8 trillion could become eligible to be invested in climate-friendly funds.
Ceres is working with investors and companies to voice their support for this new rule, making the case that climate-aligned investing will help manage climate risk while creating new jobs and generating new wealth.
But individuals also have a stake in this. Tell the Department of Labor to adopt this new rule by directly submitting a supportive comment by December 13th. |
You can read the rule and submit your comments here. Below are a few talking points you can use as you craft your comment.
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Retirement (ERISA) managers must be empowered to evaluate all factors that impact risk and return, including climate change, which affects nearly every sector of the economy. I am glad to see the Proposed Rule restores fiduciary authority to consider all relevant, financially material factors.
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ESG funds have competitive returns compared to the broader market and lower downside risk.
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Climate-aligned investing will manage risk, create new jobs, and generate new wealth.
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As an employee, I should have the option to align my retirement investments with my personal values, including investing in sustainable, climate-friendly funds.
It is vitally important that as the Department of Labor is considering this rule, they hear from as many people as possible who support climate-friendly investments. Be sure to submit your comment by December 13th. And after you do, send us a note at [email protected]
letting us know you added your voice!
Learn more
If you’d like to learn more about this proposed rule, please join us on Wednesday, November 17 for a free webinar: Bringing Sustainable Investment Options to 140 Million Americans. We’ll be joined by our friends at Environmental Defense Fund, and US SIF - The Forum for Sustainable and Responsible Investment to gain a deeper understanding of the impact of the proposed rules on ESG investment opportunities. |
