Airbnb 401(k) & Fossil‑Free Funds

The best bet for a financially stable future is a diversified portfolio that does not take unnecessary risks on individual companies or industries. Until now, that has meant investing in every part of our economy, including the oil & gas sector.

But that equation is changing as our economy is shifting away from fossil fuels and the combination of solar, wind, and batteries has become more affordable than fossil fuel power generation. Several studies (here, here, here, and here) have shown that climate-friendly funds have more often than not performed better than traditional funds.

It turns out, if you are fortunate enough to have long-term savings, the single most impactful thing you can do is move those savings into climate-friendly funds. If you haven’t started saving yet, but you have a bank account, the most impactful thing you can do is move to a climate-friendly bank.

It may seem far-fetched at first. How does money impact climate change?

It turns out Vanguard, Blackrock, and similar funds are major shareholders of new dirty energy projects. So if we’re investing in their funds, we’re funding new fossil fuel development projects.

The beauty of this problem, though, is that no one is forcing us to invest this way. It’s just become the standard for everyone to invest in everything.

This is one change we can make entirely on our own. And it turns out:

There are no tradeoffs when it comes to moving to climate-friendly investing.

You don’t have to accept higher risks if you stop investing in oil, gas, and coal. In fact, that industry has had the highest volatility - i.e. risk in the financial sense of the word - of any sector of the economy over the past 15 years. They’ve also had the worst returns of any sector over that same time period. So excluding them can actually protect us from high risks and bad returns.

Fossil fuels have had bad returns.

Believe it or not, fossil fuels have had the worst returns of any sector of the economy over the past 10 years. If you had invested $10,000 in fossil fuels 10 years ago, today you'd have $10,004. Having a fossil-free option isn't just about saving the planet, it's about saving more of your money for retirement.

A line graph showing the growth of a stock market.

A black and white photo of a line graph.

Fossil fuels have been risky.

The oil & gas sector is the only part of our economy that is controlled by a cartel, otherwise known as OPEC. It's no wonder its value fluctuates more than that of any other sector. When it has high highs, like after Putin invaded Ukraine, it makes headlines. But what many don't realize is that it has even lower lows. Those don't make the headlines. It's time we talk about them.

Others are already taking action.

The movement to remove fossil fuels from our long-term investments is growing.

Google

In 2024, Google employees successfully rallied together to convince company leadership to add a fossil-free option to their 401(k).

Voltus

Voltus added a Sphere climate-friendly option to its retirement plan and saw significant interest and adoption from its employees.

Maine

In 2024, Maine's treasury department allocated millions of dollars of their State Trust to a Sphere fund.

This is the most impactful thing you can do.

If you can, it's a great idea to go vegan and stop flying. But it turns out there's one thing you can do that has a bigger impact than every other change you can make combined: stop investing in fossil fuel companies.

Saves 16 tons

of carbon emissions per year

Saves 22 tons

of carbon emissions per year

Get an electric car
Install solar panels
Go vegan
Avoid flying
Buy recyclable products
Compost food waste
Take cold showers
Buy organic food
Shop locally
Upcycle your waste
Unplug unused devices
Use public transport
Plant more trees
Reduce plastic usage
Switch to LEDs
Conserve water
Buy second-hand
Recycle old electronics
Grow your food
Join community cleanups
Advocate sustainable policies
Use reusable bags
Avoid fast fashion
Upgrade energy efficiency
Try Meatless Mondays
Educate on sustainability
Harvest rainwater
Use eco cleaners
Minimize food waste
Walk or bike
Choose ethical brands
Use rechargeable batteries
Support green projectsVolunteer for environment

Get oil + gas out of your 401(k)

16 tons source: https://www.nature.org/en-us/get-involved/how-to-help/carbon-footprint-calculator/

22 tons source: Internal calculations ascribing pro-rata emissions of each holding on a dollar weighted basis utilizing Green House Gas emissions (Scope 1, 2 & 3 emissions - place based) data collected from Bloomberg Terminal under data license.

Retirement saving by its very nature is long-term. By giving you and your colleagues the option to invest your retirement savings in a climate-friendly fund, AirBnB can give you the option to align your investments with your values, while feeling comfortable that you're investing in a fund that offers a good risk and return profile.

Climate-friendly means two things: no investments in oil & gas, and voting for the climate

Many don't realize that someone is voting on their behalf hundreds of times each year, at every company in the funds they invest in. Each time a company in a fund has a shareholder vote, the fund manager votes for you. It turns out big asset management firms vote against climate change-related shareholder proposals most of the time, because they tend to vote however company boards recommend. That means they're directing companies on your behalf to ignore climate change.

Voting in favor of climate-related shareholder proposals not only helps protect the planet, but also can help protect your investment in these companies from the risks posed by climate change and help companies take advantage of the opportunities offered by climate change.

Avoiding fossil fuel investments protects your savings from an industry in decline. And voting your shares at the companies you do invest in to encourage them to take action on climate helps set those companies up for success in a changing world.

Let’s focus on what we can do here and now.

If you have investments: move them. Join the growing group of action-takers who have already moved their money into our climate-friendly funds, taking money away from fossil fuel companies and voting shares at the rest of the companies they invest in, to encourage them to do better on climate.

To have an even bigger impact: get AirBnB to start offering this option in your 401(k), like the over 150 companies who have already done so.

Your 401(k) plan has $700M in it.

Can you imagine the impact you would have, if you not only started investing your own money in a climate-friendly fund, but you helped your colleagues get access to climate-friendly options too? You'd not only help get up to $27M out of fossil fuel companies, but you'd help get $700M voting for positive change on climate at all of the companies across the economy that can keep doing their main lines of business on a healthy planet. Because lowering energy costs is good for their bottom lines and good for the planet.

When we take action together, we have immense power to create change. Especially when we talk with our money.

Get a template to email your HR

Airbnb’s 401(k) invests $27M in fossil fuel companies. Why?

It may seem far-fetched at first. How does money impact climate change?

There are no tradeoffs when it comes to moving to climate-friendly investing.

Fossil fuels have had bad returns.

Fossil fuels have been risky.

Others are already taking action.

Google

Voltus

Maine

This is the most impactful thing you can do.

Saves 16 tons

Saves 22 tons

Climate-friendly means two things: no investments in oil & gas, and voting for the climate

Let’s focus on what we can do here and now.

Your 401(k) plan has $700M in it.

Get a template to email your HR

Get a template to email your HR