Google employees are pushing for the company to offer fossil-free 401(k) options, as they believe their retirement plans should align with Google’s commitments to sustainability and climate action. More than 1,000 employees have signed a letter urging management to introduce a fossil-free fund as the default option in their benefits packages. The campaign is led by a small group of employees who are dissatisfied with Google’s current 401(k) options and feel that the company can do more to be a climate leader.
The letter comes ahead of Google’s annual shareholder meeting where a climate advocacy group will present a shareholder proposal urging the company to release a report on how it is protecting plan beneficiaries from the risks of investing in fossil fuels. Google’s response in its annual proxy statement recommends rejecting the proposal, but the employees are determined to push for change. They believe that divesting from fossil fuels not only aligns with their values but could also have financial benefits, with a report estimating that Google employees have collectively lost $1.15 billion over the last decade due to underperforming fossil fuel investments.
The University of Waterloo researchers’ report showed that divesting from fossil fuels can lead to significant financial benefits for investors, with Google employees estimated to have lost $1.15 billion over the last decade. This underperformance relative to the risk taken in investing in fossil fuels has led employees to call for a fossil-free target date fund in their 401(k) options. Employees believe that Google, as a leader in tech industry culture and sustainability, has the opportunity to set a trend for more sustainable retirement investment options.
While Google has made commitments to achieve net-zero emissions across its operations and supply chain by 2030, employees are pushing for the company to also align its 401(k) options with these goals. The campaign for fossil-free 401(k) options is not the first time that Google employees have used their collective voice to push for change within the company. Past efforts, such as urging Google to drop a Pentagon contract for Project Maven, have shown that a vocal minority within the company can successfully push for change.
Google employees are hoping that the company will listen to their concerns and lead the way in offering fossil-free 401(k) options. As a pioneer in company culture and sustainability commitments, Google has the opportunity to set a trend for other companies to follow. The employees believe that if Google takes action on fossil-free 401(k) options, it could send a powerful message to other companies and potentially lead to a broader shift towards more sustainable investment options across the tech industry.
In conclusion, Google employees are calling on the company to offer fossil-free 401(k) options, aligning with their values and the company’s sustainability commitments. The employees believe that divesting from fossil fuels not only has environmental benefits but also financial benefits, with a report estimating significant losses from underperforming fossil fuel investments. Google has the opportunity to lead by example in offering sustainable retirement investment options and potentially influence other companies to follow suit. The employees are determined to push for change within the company, using their collective voice to advocate for a fossil-free future.
