Green Century recently announced the launch of our RISC (Risk in Supply Chains) Project. The five-year program will inform and engage global investors about the growing business and environmental risks of deforestation and build on our ongoing efforts to curb global warming.
Tropical deforestation is a major source of global carbon emissions because, as we know, forests, in conjunction with Earth’s oceans, play an instrumental role in carbon sequestration and are one of our planet’s primary carbon sinks. As the global population has continued to rise, so has the cultivation and production of agricultural commodities, such as soy, cattle, timber, rubber, and palm oil – which according to a report from the Washington-based NGO, Forest Trends, account for more than 70 percent of deforestation.
In addition to being one of the primary sources of increased carbon emissions that contribute to global climate change, deforestation literally strips forests of their ability to manage drought and other extreme climate events – a key reason that companies and investors may consider deforestation a business risk. Pending legislation, current legal liabilities in emerging markets, reputational risk, and the ability to access raw materials to maintain revenue streams are pushing deforestation even further up the business agenda.
Historically, when the finance and investment community has been informed of the value risks inherent in unsustainable practices, it has acted as a powerful force. With regard to deforestation, it is no different. Over the last several years, investors have played a key role in slowing the rate of deforestation and have successfully pressured companies to adopt zero-deforestation policies. Our new forest protection project will further this investor success by providing 40 reports over the next five years as well as a number of engagement opportunities. It is our expectation that the new RISC Project will allow global firms to properly value their investments, often for the first time, and we envision it changing the current unsustainable conditions that exist across the commodity finance sector.
To learn more about our Sustainable Investment Strategy and how you can make an impact with the power of your investments, please visit our Why Choose Green Century webpages or call 1-800-93-GREEN (934-7336).
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 a variety of risks including interest rate, credit, and inflation risk. The Funds’ environmental criteria limit the investments available to the Funds compared to mutual funds that do not use environmental criteria.
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 Funds.
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