Dear John,
More than 140 million workers in the U.S. prepare for their retirement through 401(k) investment plans. With nearly $8 trillion in assets under management, these plans are a crucial vehicle for employees to prepare for retirement. They also offer tremendous potential for employees to align their values with their investments.
That’s why the U.S. Department of Labor is taking a step to help safeguard one critical part of our economy and a cornerstone of many Americans’ financial futures – workers’ retirement savings. Under a newly proposed rule, retirement plan managers can consider climate change when making 401(k) investment decisions and advocate for climate focused ESG investments.
The Department of Labor needs to hear from you! Submit a public comment and show your support for climate-resilient retirement options, before the December 13th deadline!
Today, there are over half a million 401(k) and other ERISA defined contribution plans in the U.S. However, only 13% of all 401(k) participants have access to funds that actively integrate climate risks and other environmental, social, and governance (ESG) factors. The Department of Labor’s proposed rule can help reverse this worrying trend, here’s how:
- For companies: adoption of the proposed rule would help align corporate benefits with growing employee demand for sustainable investing. Nearly 75% of employees at Fortune 1000 companies believe that having socially responsible investment options in their 401(k) plans is important. Making retirement savings accounts more responsive to employee demands can help – but action is needed.
- For financial advisors: there is an opportunity to better incorporate climate and other environmental factors into their analyses, while also reflecting the values and desires of a growing number of investors.
- For climate-aware investors (employees) in 401(k)and ERISA plans: the change would provide more flexibility to achieve their financial goals while supporting the future they want to retire into.
This is our moment to take meaningful action to protect families, retirees, and all who depend on our financial system, from the destabilizing effects of climate change. Submit your public comment in favor of DoL’s new rule!
Thank you for your support,
Wes Rogerson
Manager, Grassroots Organizing & Activism
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