FOR IMMEDIATE RELEASE
September 25, 2024
RESPONSE TO VANGUARD CEO SALIM RAMJI’S KEYNOTE SPEECH AT THE FT FUTURE OF ASSET MANAGEMENT EVENT IN NEW YORK
This morning, as Vanguard CEO Salim Ramji gave the opening keynote at the FT’s Future of Asset Management North America event in New York – one of his first public appearances since assuming the role in July – representatives of the Vanguard S.O.S. campaign were present outside the event venue, handing leaflets to attendees which highlighted Vanguard’s continued inaction on the climate crisis.
Lina Blount, Director of Strategy and Partnerships at the Earth Quaker Action Team, who was one of those present, said in response to Ramji’s speech:
“This was Ramji’s opportunity to differentiate himself from his predecessors, to show that he truly understands the material risks which climate change poses to the global economy, and to indicate a change in direction for Vanguard. Instead, he trotted out the same tired old lines from the Vanguard playbook, using the asset manager’s status as a passive investor as an excuse for inaction on climate change. The consequences of such inaction are dire.
“Furthermore, this is a false equivalence – nothing about being a passive investor prevents companies from taking sensible precautions to mitigate climate risk. Vanguard is free to use the tools available to it through shifting capital, engagement, and proxy voting to reduce climate risk across its portfolio. By choosing not to, the “passive” investor is actively endorsing the polluting status quo.”
In his speech, Ramji was also keen to highlight Vanguard’s Voting Choice Pilot. In response to this point, Nancy Treviño, Asset Manager-Campaign Manager of Stop the Money Pipeline, said:
“The key takeaway from Vanguard’s Voting Choice Pilot – in which only 2% of eligible clients opted in – is that the company attracts clients who largely want to “set and forget” their investments and trust their asset manager to act in their best long-term interests. Vanguard cannot use this pilot to abdicate its own responsibility to safeguard its clients from material climate risk, which its own research has shown presents a severe threat to global economic performance.
“We reiterate our call for Ramji to meet with us to discuss our concerns about Vanguard’s approach to the climate crisis, and establish a way forward which protects both the long-term interests of the company’s clients and our collective future against the impacts of climate change.”
About Vanguard S.O.S.
Vanguard S.O.S. is an international campaign pushing Vanguard to chart a new course away from climate catastrophe and toward truly sustainable and responsible investing. The network is made up of civil society organizations, social movements, and financial experts working together to secure a climate-safe future for everyone.
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Contact:
Mark Normington, mark.normington@sunriseproject.org, (971) 337-9781