ClimateSmart Investing by Carbon Collective: IRA's, 401(k)'s, and Endowments

Our collective

Our growing collective:

$325+ million
In assets under management
As of March 25, 2026, we had $348,353,604 in combined assets under management from individual investors, employer 401(k) and 403(b) plans, and our ETFs and CITs, as reported in our latest ADV. This figure has been rounded down for simplicity.

5,000+
Individual savers
140+
401k/403b plans served
Rated as one of America’s Top Financial Advisors - 2025

About ClimateSmart

ClimateSmart is (deliberately) simple

Our goal for ClimateSmart is to answer the following question: How should one approach long term investing, like saving for retirement, in the age of climate change?

1. Start with the global stock market.

We're believers in passive investing. We generally think it's hard to beat the market's crowdsourced pricing within any given sector. So we don't try to pick stocks, we pick sectors in a fashion we call "globally dynamic." We believe the coming decades will likely be more volatile than the previous ones, with greater, more sudden shifts of capital from one country to another, a trend that will likely be exacerbated by rising climate change. So rather than try and anticipate where that capital will flow, we aim to be ready to dynamically shift with it as the geopolitical landscape of the 21st century continues to evolve.

2. Cut the sectors reliant on the status quo fossil fuel system.

Would you rather invest in a growing industry or a stagnant/declining one? Historically, long term investment returns are driven by growth. One of the core assumptions ClimateSmart makes is that fossil fuels will be entering an extended decline over the coming decades as they struggle to compete with the next generation of tech (renewables, batteries, and EVs) amidst a geopolitical landscape that is prioritizing energy independence. If we are correct, this will not only add significant investment risk for fossil fuel companies themselves, but industries that cannot also adopt non-fossil fuel alternatives (cement, steel, shipping, airlines, etc.), as they are forced to cope with unexpected supply shortages as key pieces of local fossil fuel infrastructure turn unprofitable.

Overall, we believe the stock market is underpricing the technological, market, and geopolitical risks facing fossil fuels, so we exclude them and their technologically dependent sectors (which generally account for about 15-20% of the overall stock market).

3. Replace their share with high-potential climate solutions.

We then replace that fossil-fuel dependent 15-20% of the global stock market with investments into the high-growth industries replacing them: climate solutions. From renewables, to batteries, to EVs, to energy efficiency, to the circular economy, we believe we are in the midst of an energy and materials revolution. A revolution that is being driven by a combination of technological superiority and geopolitical incentives. Over time, we believe these growth potential factors will lead to climate solutions to outperform the overall market (irrespective of governmental climate action), so we overweight them.

Ready to go deeper?

Individuals

IRA's, Brokerage Accounts, and more

401(k) + 403(b)

We're proud to serve 140+ employer sponsored plans.

Endowment

Foundation setup and cash management.

FAQ

Frequently asked questions

Who does Carbon Collective work with?

Individuals: We help individuals set up and operate brokerage, IRA, and safety net accounts.

Employers: We help employers manage their 401(k) and 403(b) plans, serving as the 3(38) advisor. We build and monitor fund lineups, assist with finding and collaborating with other service providers, and provide support and financial education to participants.

Nonprofits: We help nonprofits build and manage ClimateSmart endowments and cash reserves.

Who is ClimateSmart for?

ClimateSmart is for savers who believe that climate change is here. That it's going to get worse before it gets better. And that the overall stock market is likely not pricing in the risks of climate-related investments like fossil fuels or the growth potential of climate solutions.

Our difference

01.

We're clear eyed.

We think financial security and climate health are directly linked.

02.

We're independent.

We're not owned by a big bank or Wall Street firm.

03.

We're real people.

You'll feel it the moment you meet us.