Save our ship, save our future

Instead of acting invincible, Vanguard needs to steer its massive ship away from the existential iceberg known as climate change. Climate risk is investment risk, and Vanguard must take quick, decisive action to protect its customers and shield all of us from disaster. It can wield its enormous power and help lead the global transition to clean, renewable energy. Here’s what Vanguard needs to do:

01 Act on "Net Zero" commitments

Vanguard is one of the many global financial institutions that has pledged to lower greenhouse gas emissions across its portfolio. As a signatory to the Net Zero Asset Managers Initiative (NZAMI), Vanguard should commit now that by 2030, it must have 100% of its assets under management (AUM) on track to reach zero emissions by 2050.

02 Fundamentally shift investment policy

Vanguard is an institutional investor whose portfolio contains a representative sample of the entire market. As a massively broad investor, Vanguard has poured significant money into the fossil fuel sector. Because of this, Vanguard should urgently work to decarbonize its investment portfolio according to what science tells us is needed, and to expand truly sustainable investment options.

03 Escalate engagement and improve proxy voting

As one of the largest shareholders of almost every public company in the U.S., Vanguard should leverage this massive power to influence the worst climate actors to reduce climate impact and enforce accountability. Within its portfolio, Vanguard should prioritize the heaviest emitters that are able to transition and sectors that produce indirect emissions, including financial institutions.

04 Integrate climate justice into business decisions

Vanguard’s role as one of the biggest global investors in the climate crisis entails significant risk and enormous responsibility – not only to its clients, but also to the planet, and especially to those most affected by its harmful investments. Vanguard should center justice when addressing the long-lasting consequences of climate change.

Want to see the detailed solutions?