Green Century is pleased to support the Non-Disclosure Campaign, which is urging 1,051 corporations, including Domino’s,* AutoZone,* and Exxon,* to provide a more complete disclosure of their environmental impact. The campaign is supported by more than 100 investors, representing more than $10 trillion in assets.
Green Century has long insisted that investors have a right to know how corporations are addressing the material risks posed by the climate crisis, deforestation, and water security. The 1,051 targeted companies, estimated to emit the equivalent of “the 2017 GHG emissions from the U.S.,” have either refused to provide investors with information on their environmental impact or have provided insufficient data.
The Non-Disclosure Campaign is organized by CDP, a global nonprofit that manages a disclosure system for investors, companies, cities, states, and regions to disclose and manage their environmental impact. According to the CDP, companies targeted by the campaign are more than twice as likely to disclose than those not targeted.
Every year, CDP issues questionnaires to seeking data on the climate crisis, deforestation, and water scarcity and the over 8,400 reporting companies represent more than 50% of global market capitalization. The questionnaires require companies to examine the risks and potential opportunities posed by climate change and unsustainable business practices. The disclosures allow investors to evaluate how seriously companies are
Green Century contends that companies that better manager their environmental, social, and governance (ESG) performance may be more profitable in the long run by avoiding risks, being prepared for changing regulations, and growing through competitive advantages. Green Century regularly uses CDP’s questionnaires to evaluate company performance and identify industry laggards.
According to the Intergovernmental Panel on Climate Change’s 2018 Special Report, the world must become carbon neutral by 2050 to limit global warming to 1.5° C and avoid the most catastrophic effects of the climate crisis. Investors have a right to know if companies recognize this imperative and are taking steps to mitigate their environmental impact and exposure to climate-related risks.
*As of March 31, 2020, Domino’s Pizza Inc. comprised 0.00%, 0.12%, and 0.00%, AutoZone Inc. comprised 0.00%, 0.00%, and 0.00%, and Exxon Mobil Corporation comprised 0.00%, 0.00%, and 0.00% of the Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century Green Century International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. 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.
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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 a variety of risks including interest rate, credit, and inflation risk. 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.
This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
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