Climate People’s Mission-Aligned 401(k) Plans

Introduction

As a technology recruiting firm focused on placing mission-driven professionals at climate tech companies, a sustainable 401(k) plan is a natural fit for Climate People. Their commitment to sustainability and solving climate change shines through everything they do, from the employee benefits they offer to the clients they serve. 

The challenge was in finding a 401(k) investment advisor that offers portfolios that are not invested in fossil fuels, and focus on investments in companies building climate solutions.

Company Overview

• Industry: Staffing and Recruiting
• Company size: <10 employees
• Headquarters: Boston, MA
• Founded: 2020

Watch the Video from Climate People

Climate People's investment in our Team and the Planet

The Story of Climate People and Their Mission

There are many staffing and talent companies out there, but none like Climate People. What makes Climate People unique is their dedication to the mission of getting more talented people working on climate. 

The team recruits for a variety of sectors ranging from carbon, food, buildings, and energy to mobility and industry. These are all industries that need to grow to enable the climate transition. 

As Founder of Climate People, Brendan Andersen explains in an interview with Jilea Hemmings:

“Think about all the technologies that exist that need to be scaled, the ones in research/prototype phase, and the ones that have not yet been created. One of the biggest challenges is where are we going to find the people to fill the necessary jobs to build these life-saving technologies to scale. To make this switch, we need to transition millions and millions of jobs to focus on climate issues.”

In addition to supporting an incredible company mission, Climate People is part of two important initiatives. The first is 1% for the Planet, which is “an international organization that allows members to collaborate with environmental nonprofits.” Through 1% for the Planet, Climate People donates 1% of every placement fee to a climate nonprofit of the candidate’s choice. 

Climate People is also a founding member of BGS, Browning the Green Space. BGS is a coalition of clean energy and climate companies, non-profits, venture capital firms, and grassroots organizations that have made a pledged commitment to diversity, equity, inclusion, and justice (DEIJ) in support of a just energy transition for Black and Brown communities.

Opportunity to Further Invest in Their Team and Future

Climate People already offered attractive employee benefits such as remote working options (telepresence being a climate solution according to Project Drawdown), flexible work hours, and generous PTO. The ability to offer a climate-focused retirement plan aligned with company goals around attracting and maintaining talent. And a 401(k) plan with green options was also a great way to help employees invest for their future without compromising their values. 

“Before starting Climate People I spent a considerable amount of time removing fossil fuels equities from my personal portfolio. After starting the company, I knew I wanted to provide an environmentally positive retirement plan for my team and was frustrated with the options available. I was so excited to hear about Carbon Collective because they perfectly align with our mission and values." —Brendan Andersen, Founder and CEO of Climate People

The typical options for 401(k) plans are dismal when it comes to being climate-friendly and smart investments. Most 401(k) providers only offer one or two “ESG” (Environmental, Social, and Governance) funds that oftentimes still invest in fossil fuel companies, and tend to come with higher fees that are passed on to the investors.

Why Climate People Chose Carbon Collective

Climate People’s leaders and employees wanted to have options for their 401(k) portfolios that support their mission of solving climate change. The ability to invest in the world that their employees and potential new hires actually want to retire into was key. 

Climate and sustainability-focused companies like Climate People want to enable their employees to invest for their futures without conflicting with their values and mission. It was also important that Carbon Collective doesn’t force any plan participants to invest green — all 401(k) plans include the typical portfolio options in addition to climate-friendly options.

How Carbon Collective Worked With Climate People to Set up a Sustainable 401(k) Plan

Two of the qualities that helped Climate People successfully get a sustainable 401(k) plan up and running included:

• Set up of low-fee, diversified portfolios — Employees are given the option to choose between a climate-focused portfolio or traditional ESG (Environmental, Social, and Governance), and the Standard target date funds that most 401(k)s include. 
• Dedicated support and onboarding — Carbon Collective’s Head of 401(k) Operations worked closely with Climate People’s team each step of the way. 
• Onboarding education – 401(k)s are complex. And Carbon Collective did an educational webinar to help people understand how to be smart investors as well as how to choose a portfolio that is the best fit for your situation.
• Competitive pricing — Carbon Collective’s 401(k)s understands the link between fiduciary responsibility and fees. The fees are comparable to other plan options that businesses with less than ten employees typically consider, and tend to be more cost effective than larger providers such as Vanguard. 

 

The goal was to streamline the setup of a brand new 401(k) plan, and set up the climate-focused portfolio options that Climate People wanted to offer its mission-driven employees and use to attract future talent.

“The team at Climate People works tirelessly to reverse the harms of climate change through our every-day work. We are thrilled to partner with Carbon Collective because they give us the opportunity to ‘put our money where our mouth is’ and invest in a future that directly aligns with our sustainability initiatives.”

The Results

Climate People’s sustainable 401(k) is now an important part of their employee benefits. This perk (along with many others!) is highlighted on their careers page.

“I was thrilled when I learned that Climate People was planning on offering a sustainable 401(k) plan! So much of our day-to-day work is rooted in doing our part for the planet, and it just feels right to have a retirement account that aligns with those values.” — Natalie Lavery, Marketing Lead at Climate People

Ready to Get Started?

We’re here to answer all of your questions about setting up a sustainable 401(k) for your company. Schedule a Free 401(k) Strategy Session with our Chief Investment Officer.