SEC Gives Green Century the Greenlight to Put Landmark Climate Proposal on Chubb’s* Annual Meeting Ballot
Media Contacts: Josh Chetwynd, firstname.lastname@example.org, 303-573-5558; Andrea Ranger, email@example.com, 781-349-2813
Boston, March 28, 2022 – The Securities and Exchange Commission (SEC) ruled Monday that Green Centuryº can move forward with a landmark climate proposal at Chubb Limited’s annual meeting in May. This is the first-ever shareholder proposal to go to a vote that asks an insurance company to cease underwriting new fossil fuel supplies in alignment with the International Energy Agency’s (IEA) Net Zero by 2050 Roadmap.
“I can’t overstate the importance of today’s SEC ruling,” said Andrea Ranger, shareholder advocate with Green Century. “We can now ask insurance companies to adopt policies that align with the IEA report findings, which we believe makes clear that fossil fuel expansion has no place in a net zero by 2050 future. Insurers like Chubb have enabled the fossil fuel industry to continue business-as-usual which has delayed much-needed adoption of clean energy technologies.”
The ruling follows a policy sea change at the SEC on climate issues. In November, the commission announced in a legal bulletin that it would allow shareholders more leeway to ask companies to address climate change and its associated risks. The SEC’s new guidance provides shareholders more influence on the management of climate-related risks and may signal that similar shareholder proposals are poised to survive challenges at the SEC.
Chubb claimed that Green Century’s proposal would interfere with the company’s ability to run its day-to-day business. But reflecting its November guidelines, the SEC affirmed the shareholder right to press companies on broad societal issues such as climate change.
Due to the SEC’s ruling, the similar proposals that Green Century filed with Travelers* and The Hartford* may also go to the ballot.
“I’m elated that our proposal will go to vote,” Ranger said. “Insurers have been saying that underwriting fossil fuels, even new fossil fuel projects, requires a careful, calculated approach. We agree, but they should have started the process years ago. Even the current geo-political conflicts demonstrate how politically charged and risky fossil fuels are, and, in our opinion, is another reason for insurers to walk away.”
About Green Century Capital Management
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (the Funds). The Green Century Funds are the first family of fossil fuel free, responsible, and diversified mutual funds in the United States. Green Century Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of December 31, 2021, Chubb Limited comprised 0.00%, 0.39%, and 0.00%; The Travelers Companies, Inc. comprised 1.18%, 0.18%, and 0.00% and The Hartford Financial Services Group, Inc. comprised 0.00%, 0.11%, and 0.00% of the Green Century Balanced Fund, the Green Century Equity Fund, and the 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.
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 visit www.greencentury.com, email firstname.lastname@example.org, or call 1-800-934-7336. Please read the Prospectus carefully before investing.
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The Green Century Funds are distributed by UMB Distribution Services, LLC. 235 W Galena Street, Milwaukee, WI 53212. 3/2022