Protesters block Vanguard office over climate policy

A group of protesters blocked off entry points to Vanguard’s Malvern, Pennsylvania, headquarters on Wednesday, the latest episode in an ongoing campaign over the asset management company's climate policy.

Sixteen people were arrested, with most facing charges of criminal trespass, disorderly conduct and failure to disperse, according to the Tredyffrin Township Police Department, which took 13 people into custody. The other three protesters were arrested by the East Whiteland Township Police Department.

The protest did not affect Vanguard’s operations, according to the company.

But it did draw more attention to Vanguard, which has attracted criticism since it pulled out of the Net Zero Asset Managers initiative last year, a move that occurred as some Republican state leaders have taken stances against the use of environmental, social and governance factors in public investments.

In January, several groups protested at Vanguard’s Newton Square, Pennsylvania, office. Some of those groups, including Earth Quaker Action Team, Extinction Rebellion Philadelphia and Fossil Free Penn, were also part of the protest at the Malvern location today, according to a statement from Earth Quaker Action Team.

The protests are part of a wider campaign called Vanguard S.O.S., which has targeted the company over its investments in oil, gas and coal.

Vanguard has taken the position that its top priority is shareholder return, but it recognizes the material financial risks associated with climate change. In a white paper it published, “The Economics of Climate Change, Vanguard economists used consensus scientific data to assess the effect of climate change on economic activity under four scenarios for greenhouse gas emissions and resulting temperature increases,” the company said in a post about its climate policy. “They found that the net impact on global GDP is negative in all scenarios. We continue to pursue research efforts such as this to educate our clients about the ways climate change may affect economic growth and the value of their investments over the long term.”

The company provides more than 280 index funds and ETFs, along with 120 actively managed funds, with some that specifically use ESG criteria, including "several ESG funds that are designed to meet net zero objectives," Vanguard states on its site. The company manages proxy voting and engagement for portfolio companies within the funds it manages in-house but notes that third-party firms that manage many of its funds handle proxy voting separately.

In March, Vanguard S.O.S. published an online video ad against Vanguard with the tagline “If it’s bad for the environment, it’s bad for your retirement.”

And last month, the company was sent at least 1,400 copies of a form letter by the Sierra Club, signed by Vanguard investors, alleging that by leaving NZAM and not supporting certain climate-focused shareholder resolutions at portfolio companies, the company is breaching its fiduciary duty to clients.