Responsible Retirement

Today’s retirement investors can’t afford to ignore climate risks. Economists estimate that the climate crisis will cost the U.S. economy over $14.5 trillion by 2070 if left unaddressed. For someone entering the workforce today, the next 45 years of retirement investing are critical. 

Our goal is to protect American retirement savings from the financial losses of climate risks and empower savers who want to capitalize on growing climate opportunities. To do so, we: 

• Advocate for regulators to strengthen responsible investing frameworks 

• Engage companies to improve the investment options offered to their employees   

• Educate and motivate retirement industry professionals in support of these goals   

• Drive asset managers to improve the integrity of the responsible funds they offer   

Plan fiduciaries—including companies, advisors, and consultants—can use our new Responsible Retirement Toolkit to identify resources and tools that support the adoption of sustainable investment options and strategies in defined contribution plans.

We rallied support for the Department of Labor’s Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights rule, which affirms that plan sponsors and advisors may consider all financially relevant risk-return factors—including the economic effects of climate change. Adopted in November 2022, the rule ensures that fiduciaries can incorporate climate and sustainability risk analysis into their investment decisions when in the best interest of beneficiaries.

With the 2022 rule reaffirming that the principles of fiduciary duty apply to climate-related financial risk considerations, it is time for plan sponsors and advisors to re-evaluate their offerings. Watch our conversation with the Department of Labor to learn more. 

To learn more or start the process of integrating a responsible investing strategy in your plan, contact Randi Mail at [email protected].