June 30, 2021 Read More →

Vanguard investment policies risk investor wealth destruction

Asia Asset Management: 

A report on Vanguard Group Inc. by the Institute for Energy Economics and Financial Analysis (IEEFA) highlights grave alleged faults and shortcomings in its policies on climate change, despite the asset management giant’s public statements and posturing on environmental, social and governance-focused investing.

The report accuses Vanguard, the second largest asset manager in the world after BlackRock, of “leaving its investors to face profound wealth destruction risks” from climate change, in contrast to its public commitment to the Net Zero Asset Managers initiative.

The IEEFA specifically highlights some 6% of Vanguard’s entire portfolio, or US$300 billion, of fossil fuel exposure, including some $90 billion in thermal coal, and further accuses Vanguard of “transparency failure” in neglecting to disclose this fact to its investors.

[ Paul Mackintosh ] 

More: Analysis: Vanguard or laggard? 

Posted in: IEEFA In the News

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