In the letter, the clients underscore Vanguard’s responsibility:

“As a fiduciary, it is your duty to steward your clients’ investments – including my investments – responsibly. Failing to do what is in your control to mitigate risks to your clients’ assets is arguably a violation of your legal obligations. As many other clients before me, I am voicing my concern of Vanguard’s failure to do this under Tim Buckley’s tenure, and my hope that as the new CEO, you will take action to help safeguard my financial future.”

Clients wrote additional notes to express the extent of their concern, many stating that they would withdraw money unless the company changed course, others citing the ways in which their investments are impacting the future and what their lives will look like in retirement, especially for their children. Clients also mentioned that they will continue to petition employers to move away from VG if they don’t see changes from the financial institution.

Following the publication of their letter, clients provided the following statements:

“As a long term investor with Vanguard, I appreciate the important role Vanguard plays in safeguarding our retirement funds. It’s essential to take a long term view to protect future retirees by curtailing investments that accelerate climate change. Your leadership is critical at this moment,” said Cindy Flaherty, Vanguard client from Columbus, OH.

“As a customer of Vanguard with a 401(k) in a target-date fund, I urge you to change course and consider the impacts of how you are managing my money. In whole, continued support for investments in climate change-contributing companies is a losing proposition for my quality of life, and truly, the quality of life for ALL your customers, in retirement,” wrote Krista Grimm, Vanguard client from La Grange Park, IL. 

“As one whose life savings in Vanguard…I feel strongly that you should take the advice of those of us who are concerned about the state of our climate seriously…Please make some changes so that I can continue to feel good about keeping my funds with Vanguard,” said L.A. Depew, Vanguard client from Camarillo, CA.

Climate change poses a growing threat to retirement savings, including VG’s clients. Leading global financial institutions, including Vanguard, have forecasted unprecedented impacts to the global economy from climate change, with cumulative losses to the global economy modeled as high as 25% by mid-century. John Galloway, Vanguard’s Global Head of Investment Stewardship, has himself expressed, “Climate change represents a profound, fundamental risk to investors’ long-term success.” However, Vanguard has done little to date to manage climate-related risks.

Vanguard, as one of the largest asset managers in the world, can take proactive steps to mitigate these risks for their clients through proxy voting, corporate engagement, fund offerings, and working with clients to shift their investment strategies. Unfortunately, Vanguard has fallen far behind in terms of managing and mitigating these risks on behalf of clients.  Vanguard continues to be the largest investor in fossil fuel companies, investments which help contribute to carbon lock-in and accelerate climate-related financial risks. In addition, in regard to proxy voting, Vanguard consistently votes against climate resolutions in the companies that it holds in its portfolios; in 2023, Vanguard supported a mere 2% of environmental and social resolutions.

Clients that understand emerging risks and responsible risk management are eager to see meaningful change under Ramji’s tenure. The client letter warns:

“Meeting the challenges of the 21st century requires moving away from 20th century thinking about investment risk management; it requires understanding the risks that climate change poses to both individual companies and portfolios as a whole, having a strategy to manage and mitigate those risks in long-term and passively managed funds, developing a vision to navigate a set of new and evolving risks, and having a team that is eager and able to meet these challenges.”