Climate Finance Podcast

Alexandra Wright-Gladstein is the Founder and CEO of Sphere. Sphere is a public benefit corporation that is amplifying a social movement to get 401(k) retirement savings money out of fossil fuel companies. Sphere has two ‘first of its kind’ products: i) Sphere 500 Fossil Fuel Free Index (SPFFXI) which tracks the S&P500 excluding the fossil fuel companies, and ii) Sphere 500 Fossil Fuel Mutual Fund which tracks SPFFXI.

Prior to Sphere, Alex co-founded Ayar Labs, a tech startup that produces power efficient optical input-output solutions, in 2015. Ayar Labs has raised over $60 million from the likes of Founders Fund, Intel Capital, and Lockheed Martin Ventures. She previously studied Economics and Political Science at Tufts University, worked at Enel X North America, and obtained her MBA from Massachusetts Institute of Technology.

Check out the Climate Finance Podcast website for more information.

Topics discussed:

• Alexandra’s climate journey from working in the energy sector and studying entrepreneurship / technology transfer to founding Ayar Labs and Sphere.

• Eureka moment: Alex enduring an arduous three year process to be able to offer her employees, at Ayar Labs, with fossil fuel free 401(k)s.

• Brief overview of 401(k) plans. 79% of American employees have access to a 401(k) plan.

• Pain point 1: 82% of Americans believe in Climate Change and 70-80% are not happy or aware that their retirement savings are invested in fossil fuel companies.

• Pain point 2: 99% of Americans have on average $6000 invested in fossil fuel companies and only 0.1% of 401(k) assets under management is sustainably invested. This is despite 33% of professionally managed AUM using sustainable investing strategies.

• Why Fossil Fuel Free Funds instead of ESG Funds?

• Main impediments for lack of sustainability integration in 401(k)s (Fear of lawsuits, regulatory roadblocks, pricing premium for ESG products, and preference for Mutual Funds).

• Regulatory support from the current presidential administration for ESG integration in 401(k)s.

• How Sphere’s Index and Mutual Fund solves these problems?

• Sphere Fossil Fuel Free Fund - Prospectus

• How can employees and HR managers join the Sphere Movement?

• VC Funding from Pale Blue Dot, Climate Capital, and other Angel Investors.

• As You Sow Foundation and Negative Screening Methods.

• ‘Nuts and Bolts’ partnerships for developing Mutual Funds and ETFs (Distributor, Fund Administrator, and Investment Advisor - Jason Britton at Reflection Asset Management).

• Closing question 1: Advice to Tech entrepreneurs who want to engage in (Climate) Finance entrepreneurship.

• Closing question 2: Advice to internal corporate sustainability change makers.

Note: This podcast is for informational purposes only and should not be considered as investment advice. The interview took place on 4th January 2022.