Investors Commend NiSource for Increasing Transparency on Water-related Risks
Company released new report on water use
May 27, 2010 — Today, investors commend NiSource Inc.* for its recently released report detailing its water usage and efforts to explore alternative generation methods, such as wind power that minimize water withdrawals. The Green Century Equity Fund withdrew its shareholder proposal at the company after it agreed to increase its disclosure in this area.
Thermoelectric power generation results in significant water withdrawals. According to the U.S. Department of Energy (DOE), electric power plants are the second largest user of freshwater. As water scarcity becomes a growing problem, investors are becoming increasingly concerned about the water-related risks companies in this sector face.
“Green Century commends NiSource for demonstrating its commitment to transparency and the responsible stewardship of natural resources through the release of this comprehensive and thorough report,” said Larisa Ruoff, Director of Shareholder Advocacy for Green Century Capital Management. “We believe this report provides investors with vital information on how the company is managing its water-related risks and encourages others in the sector to adopt similar disclosures."
According to a September 2008 report of the DOE, “Water shortages, potentially the greatest challenge to face all sectors of the United States in the 21st century, will be an especially difficult issue for thermoelectric generators due to the large amount of cooling water required for power generation.” As a result, there is growing recognition of the need for increased corporate disclosure of water use and clarity on how companies are managing water risks. Investors believe better planning, reporting and accountability mechanisms with respect to water use are critical under these circumstances.
NiSource’s water usage report and its recently published sustainability report are available on the Environmental, Safety and Sustainability portion of its website.
Green Century Capital Management is an investment advisory firm focused on environmentally responsible investing. Founded by a partnership of non-profit environmental advocacy organizations in 1991, Green Century's mission is to provide people who care about a clean, healthy planet the opportunity to use the clout of their investment dollars to encourage environmentally responsible corporate behavior. Green Century believes that shareholder advocacy is a critical component of responsible investing and actively advocates for greater corporate environmental accountability. Green Century manages two environmentally responsible mutual funds, the Green Century Balanced Fund and the Green Century Equity Fund.
*As of March 31, 2010, NiSource Inc. was not held by the Green Century Balanced Fund and comprised 0.08% of the Green Century Equity Fund. Portfolio composition will change due to ongoing management of the Funds. Please refer to the Green Century Funds website for current information regarding the Funds' portfolio holdings. These holdings are subject to risk as described in the Funds' prospectus. References to specific investments should not be construed as a recommendation of the securities by the Funds, their administrator, or their distributor.
You should consider the Funds' investment objectives, risks, charges, and expenses carefully before investing. For a prospectus that contains this and other information about the Funds, call 1-800-93-GREEN, visit www.greencentury.com or email firstname.lastname@example.org. Please read the prospectus carefully before investing. Investments are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
The Green Century Funds are distributed by UMB Distribution Services, LLC. 5/10
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