ESG Fund Added to ON Semiconductor’s 401(k) Plan
written by Lana Hall, ON Semiconductor CSR Program Manager
ON Semiconductor recently added an environmental, social and governance (ESG) fund as an additional option to their 401(k) investment lineup.
ESG criteria is a set of standards for a company’s operations that socially conscious investors use to screen potential investments to generate long-term competitive financial returns and positive societal impact. The selected fund excludes investments in industries such as tobacco, alcohol, nuclear power, weapons and gambling. It also excludes companies that have issues with child labor, human rights violations, animal abuse and poor ethical practices.
According to a report by the US SIF Foundation, sustainable investment assets have grown to $12 trillion in 2018, that’s a 38% increase from 2016. In other words, $1 in $4 of the total $46.6 trillion under professional management in the United States is represented in sustainable investing.
Employees are becoming more interested in sustainable investing and having ESG investment options can be a major incentive to boost plan participation. Baby boomers are retiring at a rate of 100,000 per day and millennials are stepping in. By 2025, 75% of the workforce will consist of millennials and they are looking for socially responsible employers. Having ESG funds as an option for an employee’s 401(k) is a great way for them to engage with the company. It can entice new employees, retain existing employees, all while increasing participation and contributions. It also gives the employee the opportunity to align with their social, political, and/or environmental values through their investment decisions.
“We are pleased to provide an opportunity to invest in an ESG fund in our 401(k) plan for employees as another example of our commitment to sustainability. Currently, only 4% of 401(k) plans have an ESG fund available for investment by plan participants. We feel it is part of our fiduciary duty, as well as our belief in sustainability efforts, to provide our employees with inclusive investment options in their retirement plans,” said Keenan Evans, senior vice president of global quality, reliability, environmental health and safety and corporate social responsibility at ON Semiconductor.
ON Semiconductor is always looking for new ways to engage their workforce. We strive to be a good corporate citizen and adding an ESG fund to the available options in our 401(k) investment portfolio is another way we are demonstrating our focus on creating a positive societal impact.
If you are looking for a profession in the semiconductor industry, check out our Careers or if you are interested in reading more about our CSR initiatives, check out our Corporate Social Responsibility Report.
