Alphabet Inc, the parent company of Google, is facing a shareholder proposal urging the company to report on how it is managing climate risks within its retirement plan investments. The proposal, led by the advocacy group As You Sow, is set to be voted on at Alphabet's annual meeting on June 7, 2024. It highlights the potential financial risks posed by climate change to the savings of retirement plan beneficiaries, particularly those with longer investment horizons. The Google LLC 401(k) Savings Plan, which holds a significant portion of its assets in high-carbon industries, is at the center of this concern. As You Sow's analysis suggests that the plan's investments in such industries could lead to reduced future portfolio...Show More

Alphabet Inc, the parent company of Google, is facing a shareholder proposal urging the company to report on how it is managing climate risks within its retirement plan investments. The proposal, led by the advocacy group As You Sow, is set to be voted on at Alphabet's annual meeting on June 7, 2024. It highlights the potential financial risks posed by climate change to the savings of retirement plan beneficiaries, particularly those with longer investment horizons. The Google LLC 401(k) Savings Plan, which holds a significant portion of its assets in high-carbon industries, is at the center of this concern. As You Sow's analysis suggests that the plan's investments in such industries could lead to reduced future portfolio returns due to climate change's growing impacts. The proposal calls for Alphabet to assess and disclose how it is protecting plan beneficiaries from these risks, especially as younger employees are expected to face higher climate-related risks to their portfolios. Alphabet's board has opposed the proposal, stating that it could pressure the investment committee to make imprudent changes not in the best interests of plan participants. However, As You Sow argues that fiduciary responsibility includes managing climate risk and that addressing these risks could have prevented an estimated $1.15 billion in lost returns over the past decade for Google 401(k) participants.