As Google continues to make headlines with its ambitious climate change initiatives, a group of frustrated employees is urging the tech giant to do more in a less talked about area: their 401(k) options. Employees have penned a letter to management, signed by over 1,000 workers, asking for 401(k) options that exclude investments in fossil fuel companies like ExxonMobile, Shell, and Chevron. They are also seeking to make a fossil-free fund the default option in their benefits packages.
The campaign, headed by a small group of employees including technical writer Sam Asher, was launched after the employees raised complaints to the company’s benefits team and felt dissatisfied with management’s response. The employees are questioning how much Google is directly funding oil companies through its current 401(k) options and are pushing for change within the company. The circulation of the letter comes ahead of Google’s annual shareholder meeting, where a climate advocacy group will present a shareholder proposal urging Google to release a report outlining how it is protecting plan beneficiaries from the increased risk of investing in fossil fuels.
Google spokesperson Fiona Lee declined to comment on the letter but pointed to the company’s response to the shareholder proposal in its annual proxy statement, recommending shareholders reject the proposal. The employees are specifically asking for a target date fund that is free of fossil fuels, as the current options, like the Parnassus Fund, are deemed too volatile for most employees. The employees’ efforts are not just about sustainability but also about financial benefit, as a report estimates that Google employees have collectively lost $1.15 billion over the last decade due to underperforming fossil fuel investments.
University of Waterloo researchers have highlighted the financial risks associated with not divesting from fossil fuels, estimating that U.S. public pension plans lost out on $21 billion by not divesting a decade ago. The lead researcher, Michael Zonta, emphasized that the underperformance of fossil fuel investments compared to the risk associated with them could give portfolio managers like Google more power to scrutinize their investments. Google has made commitments to sustainability, aiming to achieve net-zero emissions by 2030, and employees are pushing for the company to align its 401(k) options with its environmental goals.
While the more than 1,000 signatures from Google employees represent a small group within a workforce of over 180,000, past instances have shown that a vocal minority at Google can successfully drive change within the company. Google workers have previously influenced decisions on projects like Project Maven and have even sparked industry-wide conversations about tech worker unionization. Employees are hoping that Google, as a trendsetter in company culture, will also lead the way in offering fossil-free 401(k) options, sending a message to other companies to follow suit. The ongoing campaign by Google employees reflects their determination to hold the tech giant accountable for its investments in line with its climate commitments.
