Campbell’s Shareholders Vote on Climate-Safe Retirement Plans

Campbell's current 401(k) options force employees to invest millions in fossil fuels and deforestation.

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Stefanie Spear, [email protected], 216-387-1609

BERKELEY, CA—DEC. 6, 2022—Campbell’s shareholders Wednesday voted on an As You Sow’s shareholder resolution asking the company to prepare a report assessing how the company’s retirement funds manage the growing systemic risk created by investing in companies contributing significantly to climate change. The proposal earned a 8.8% vote at Campbell’s annual general meeting, achieving the threshold needed to continue dialog with the company and resubmit the resolution next year, if necessary.

While Campbell’s has embraced strong climate goals, including a commitment to reduce its Scope 1 and 2 emissions by 42% by 2030, as well as commitments to reduce deforestation impact, it is at the same time investing more than $130 million of employee retirement savings into fossil fuel companies and agribusinesses involved in deforestation. As concern over the impact of high-carbon investments gains momentum, companies like Campbell’s must begin addressing their 401(k)s’ contributions to climate change or risk negative effects to their reputations, 401(k) plan returns, employees’ futures, consumer retention, and employee goodwill.

“Employees want and need investment plans that reduce climate risk and impact,” said As You Sow President Danielle Fugere. “Now more than ever, employees want to save for retirement while leveraging their investor power to avoid climate destruction.” 

Many 401(k) plan fiduciaries have avoided taking climate risk into account in their 401(k) plans for fear of breaching their fiduciary duty. However, the Department of Labor last week released its long-awaited “Prudence and Loyalty" rule that empowers plan fiduciaries to safeguard the savings of America's workers by clarifying that fiduciaries of employee retirement plans can consider material environmental, social, and governance (ESG) risks when making investment and proxy voting decisions.

A substantial amount of Campbell’s 401(k) plan assets are invested in the default Vanguard target-date option, which has exposure to carbon-intensive industries and companies responsible for deforestation in the Amazon and Indonesian rainforests. These high carbon investments not only have the potential to risk short-term returns, but create significant risk for young employees' future retirements following decades of climate impact.

A report from the Carbon Disclosure Project indicates that 215 of the largest global companies report almost $1 trillion at risk from climate impacts, with many losses to hit within the next five years. Climate change also threatens workers’ life savings. Despite employee demand for climate-safe investment options, the company does not currently offer any such options inside its 401(k) plan.

Campbell’s lack of climate-safe retirement options is not unique. Investors have filed a similar shareholder resolution at Microsoft. While Microsoft is touted by many as an industry leader when it comes to climate goals and climate action, it is also investing more than $2 billion of employee savings into oil, coal-fired utilities, and agribusinesses involved in deforestation. Investors will vote on the Microsoft resolution at the upcoming annual meeting on Dec. 13. Microsoft investors can learn how to leverage their investor power to vote at the upcoming Microsoft meeting by following the simple steps outlined in this shareholder voting guide. To learn more, read this press briefing.

As You Sow publishes monthly report cards rating mutual funds and retirement plans as part of its Invest Your Values initiative.  

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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.