What does it mean to invest fossil fuel free?
Green Century° has a very clear definition of fossil fuel free investing. The Green Century Funds do not invest in companies that explore for, extract, process, refine, and transmit coal, oil, or gas; burn fossil fuels to make electricity; or possess carbon reserves.
Our fossil fuel exclusion is explicit in our prospectus. Any fund claiming to be fossil fuel free should explicitly exclude those investments in its prospects. Without it, the fossil fuel free claims may just be a marketing gimmick.
Avoiding fossil fuel investments may offer financial benefits. The fossil fuel sector has been the worst performing sector for the last year and decade. Right now, the industry is in the midst of a number of bankruptcies, write offs, and layoffs. Do you think fossil fuels are the energy source of the future?
Please keep in mind that a sustainable investment strategy that incorporates environmental, social, and governance (ESG) criteria may result in lower or higher returns than an investment strategy that does not include such criteria.
Distinctions between "low carbon" and fossil fuel free funds
- A so-called “low carbon” mutual fund may invest in coal, oil, and gas companies. Instead of simply excluding the companies most to blame for their climate crisis, they may evaluate carbon emissions, carbon reserves, or the overall carbon footprint of a company.
- Only portfolios with zero or “0.00%” in the energy sector would be consistent with fossil fuel free investments. Download our Fossil Fuel Free Investing Guide for additional guidance.
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (the Funds).
You should carefully consider the Funds' investment objectives, risks, charges and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds, please click here for more information, email firstname.lastname@example.org or call 1-800-934-7336. Please read the Prospectus carefully before investing.
Stocks will fluctuate in response to factors that may affect a single company, industry, sector, country, region or the market as a whole and may perform worse than the market. Foreign securities are subject to additional risks such as currency fluctuations, regional economic and political conditions, differences in accounting methods, and other unique risks compared to investing in securities of U.S. issuers. Bonds are subject to risks including interest rate, credit, and inflation. A sustainable investment strategy which incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.
The Green Century Funds are distributed by UMB Distribution Services, LLC., 235 W Galena Street, Milwaukee, WI 53212.