Contact: Kate Kroll, 617-482-0800, email@example.com
BOSTON, MA: Green Century Capital Management announced today a new five-year program, The RISC (Risk In Supply Chains) project. The new global project will inform and engage global investors about the growing business and environmental risks of deforestation as part of Green Century Capital Management’s overall efforts to curb global warming.
Tropical deforestation is a major source of global carbon emissions. In the last several years, investors have played a key role in protecting rainforests by pressuring companies to adopt zero-deforestation agreements in their palm oil supply chains. The project builds on this investor success and seeks to expand engagements to target other causes of deforestation in South America and Africa, such as the cultivation of soy, beef, timber, and rubber. The project is being led with the Civil Society arm of the Norwegian government, NORAD, two European allies – AidEnvironment and Profundo – and the U.S. organization policy group, Climate Advisors.
“When the finance and investment community has been informed of these risks through credible analysis, they have acted as a powerful force for ending deforestation – and we hope that this continues,” said Leslie Samuelrich, President of Green Century Capital Management, the investment advisor to Green Century Funds. “The project will allow global firms to properly value their investments – often for the first time – and we envision it changing the state of play across the commodity finance sector,” said Samuelrich.
According to Forest Trends, a research group in Washington that works with market players to address the array of challenges facing forest conservation, 71% of deforestation is driven by commodity agriculture, specifically soy, cattle, timber and palm oil production. Global population growth resulting in increased demand has meant high prices for these commodities and has generated large corporate profits, but commodity producers can face significant financial risks if they do not accurately incorporate sustainability risks into their business models. Poor attention to sustainability may lead to inefficient land-use and very high carbon emissions resulting in opportunity costs and carbon taxes or fines.
The forest protection project will help investors and financial institutions accurately value risks inherent in unsustainable commodity supply chains by providing 40 reports over the next five years as well as engagement opportunities. Through on-the-ground research, Aidenvironment will identify sustainability risks such as contested land, deforestation, fires, exploitation, and inconsistencies in official corporate policies; Profundo will develop financial models analyzing the financial risks inherent in current unsustainable practices; Climate Advisers will provide financial commentary and policy analysis; and Green Century will lead outreach to U.S. and global investment firms.
“The PRI welcomes Green Century’s expanded work in this vital area,” said Paul Chandler, Manager for Environmental issues at the United Nations-supported Principles for Responsible Investment (PRI). “Our signatories are increasingly focused on deforestation-related risks, yet often struggle to fully understand the scope and nature of these risks in their portfolios. Green Century’s work to bring this analysis together will give investors the information they need to better integrate these risks into their investment processes and to have more informed dialogues with the companies they invest in,” said Chandler.
Green Century has worked with companies including The Kellogg Company,* ConAgra,* and the largest palm oil trader in the world, Wilmar,* to adopt zero-deforestation policies and most recently, led the first cross-commodity zero-deforestation policy adoption with Archer Daniels Midland (ADM).* Green Century also works with Ceres’ Shareholder Initiative on Climate and Sustainability (SICS) and through its seat on the PRI Advisory Committee on Palm Oil to promote sustainable sourcing of forest risk commodities.
Learn more about Green Century’s Forest Protection Campaign here.
Green Century Capital Management is the investment advisor to the Green Century Funds and offers two environmentally and socially responsible funds, the Green Century Equity Fund and the Green Century Balanced Fund. Green Century works to curb climate change through fossil fuel free investing, reinvestment in sustainable companies, and advocating with companies to improve their environmental policies and supply chains. Green Century also is the only U.S. mutual fund company owned by environmental non-profits, the Public Interest Research Groups (PIRGs).
*As of June 30, 2016, The Kellogg Company comprised 0.28% and 0.00% of the Green Century Equity Fund and the Green Century Balanced Fund, respectively. Other securities mentioned were not held in the portfolios of the Green Century Funds as of June 30, 2016. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
Stocks will fluctuate in response to factors that may affect a single company, industry, sector, or the market as a whole and may perform worse than the market. Bonds are subject to risks including interest rate, credit, and inflation. The Funds’ environmental criteria limit the investments available to the Funds compared to mutual funds that do not use environmental criteria.
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This information has been prepared from sources believed to be reliable. The views expressed are as of the date of this writing and are those of the Advisor to the Green Century Funds.
The Green Century Funds are distributed by UMB Distribution Services, LLC. 235 W Galena Street, Milwaukee, WI 53212. 7/16