Co-op America: Turn up the heat on mutual funds to act on Climate Change

Ten of the largest mutual fund families in the country are acting like climate change won’t affect our planet, the economy, and their investors.

They invest in some of the worst climate-change-causing companies around -- companies like ExxonMobil, Ford, and Massey Coal -- and yet time and time again, their largest funds fail to push these companies to do better. As shareholders -- as part-owners of these companies -- mutual funds have both the right and responsibility to push their companies to improve, not just because it’s the right thing to do, but because polluting companies that will suffer under consumer pressure, government regulation, and the changing times are a huge risk for the millions of people represented by these ten major fund families.

That's why we're calling on American Century, American Funds, Ameriprise, Dreyfus, Fidelity, ING, Morgan Stanley, Oppenheimer, Pioneer and Vanguard to wake up to the reality of climate change and step up to their responsibility to protect their investments and vote for progress at the companies in their portfolios, each and every time they have the chance. Unfortunately, these ten mutual fund families do not vote in favor of climate change resolutions, abstaining or voting against them instead for the last three years running. The shareholder process provides ample opportunity for these funds to vote for a new way of doing business, if only they would support other (wiser) shareholders' climate change resolutions. These resolutions frequently call for companies to: disclose their climate emissions, explain the effects these emissions will have on their business, and develop a plan for reducing those emissions, thereby reducing the company's financial risk due to climate change.

It's not just the right thing to do; it's good business.

Other investors -- increasing numbers of pension funds, university funds, foundations, and socially responsible mutual funds -- already know this, and they're leading the way. We need you to help give a push to the huge mutual fund families (representing trillions of dollars in powerful investments) that are lagging behind. Take our action now to tell these funds to get in step with their more responsible peers -- especially now that we know that climate change is happening faster than we ever thought. The time to act is now.

TO: American Century, American Funds, Ameriprise, Dreyfus, Fidelity, ING, Morgan Stanley, Oppenheimer, Pioneer and Vanguard

As a concerned investor, I urge your company to take climate change seriously. The evidence is in, climate change is happening faster than we imagined and is an enormous threat to our planet, including our economy. All businesses will be affected by climate change and as investors, we have a right and responsibility to encourage companies to be proactive in mitigating and addressing this threat.

I’m concerned that your company is not supporting any climate change resolutions. This is a basic step that a growing number of investors, large and small, are taking to promote corporate responsibility and action on this important issue. In fact, institutional investors with trillions of dollars in assets are filing climate change resolutions, dialoguing with company management, and voting their proxies in favor of resolutions. Their work is having an impact, with a growing number of multinational companies taking action on climate change in response, and demonstrates how far behind the curve your institution is.

As an investor, I expect any fund family I invest in to be active on climate change. I encourage your funds to reconsider your blanket rejection of all climate change resolutions and start supporting these resolutions instead. Your funds should also engage in dialogues with corporate management on climate change, evaluate your investment choices based on corporate responses to the risks of climate change, and take steps to make your own operations climate neutral.

Sincerely,
Your Name
Your City and State

Here's who's signed the letter to the mutual funds and how they are using their money to create a better world.

— Becky in Denham Springs, LA says, "By not making senseless purchases that take away from the good of our world and its inhabitants."

The views and opinions of expressed in postings above do not necessarily state or reflect those of Co-op America. We ask participants to keep their comments respectful in tone.