Our approach to ESG

The latest news and insights on environment, social, and governance investing and advocacy.

At Vanguard, our investors are our owners and they come first.1 For some investors, owning certain companies is not consistent with their values or preferences, which is why we offer passively managed environmental, social, and governance (ESG) funds that are screened for certain ESG criteria. And for investors who prefer to invest in companies with leading sustainability practices, we offer an actively managed fund that chooses to invest in companies deemed to have leading ESG practices.

In addition to offering ESG funds, Vanguard is focused on informing investors on climate risk. You can read our recent report on the potential effects of climate change as well as a summary of our efforts to advocate for investors and lower our own carbon emissions.

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Vanguard Baillie Gifford Global Positive Impact Stock Fund seeks capital appreciation and emphasizes companies that contribute towards a more sustainable and inclusive world.

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A proposed regulation regarding the inclusion of ESG factors into retirement plan investment decisions is expected to be finalized later this year. Importantly, there is a range of decisions from the foundational to the most complicated for plan sponsors to consider.

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Climate change will have a negative estimated net impact on the global economy, according to new Vanguard research.

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John Galloway, global head of Vanguard Investment Stewardship, discusses the role of investment stewardship in facing climate change.

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Learn about the kinds of ESG funds available today.

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Proposed regulation would make significant changes to the rules on the use of ESG factors in retirement plans.

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Learn about the framework that shapes Vanguard decisions on launching ESG-focused products.

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Explore our ESG and socially responsible funds.

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Review our global investment stewardship efforts as well as our proxy voting and engagement activity disclosures.

¹ Vanguard is investor owned, meaning the fund shareholders own the funds, which in turn own Vanguard.

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For more information about Vanguard funds or ETFs, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest.

ESG funds are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the index provider or advisor, as applicable, for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other funds screened for ESG criteria. The index provider or advisor’s assessment of a company based on the company’s level of involvement in a particular industry or their own ESG criteria, may differ from that of other funds or an investor’s assessment of such company. As a result, the companies deemed eligible by the index provider or advisor may not reflect the beliefs and values of any particular investor and may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. Successful application of the screens will depend on the index provider or advisor's proper identification and analysis of ESG data. The advisor may not be successful in assessing and identifying companies that have or will have a positive impact or support a given position. In some circumstances, companies could ultimately have a negative or no impact or support of a given position