STATEMENT: 31% of IBM Shareholders Support Green Century Climate Proposal
Media Contacts:
Andrea Ranger, aranger@greencentury.com, 781-349-2813
Pam Podger, ppodger@greencentury.com, 802-299-9495
Boston, May 5, 2024 – Green Century received 31% of votes in favor of its resolution with IBM asking the company to set comprehensive climate emissions reduction targets.
IBM has a goal to achieve net-zero emissions by 2030, inclusive of emissions attributable to its direct operations and the electricity consumed at third-party run data centers. Yet, IBM has declined to consider the vast majority of its indirect emissions during its target-setting process, unlike competitors, Hewlett Packard Enterprise*, Microsoft*, and Salesforce*. For example, its target does not include emissions generated when customers run IBM hardware or from its employees’ business travel.
IBM has also declined to set targets with the Science Targets initiative (SBTi), an organization that validates climate emissions reduction targets to ensure they are aligned with limiting warming to a rise of 1.5 degrees Celsius. Thousands of corporations have committed to set or have set targets through SBTi.
“Our proposal is not just about asking IBM to set rigorous greenhouse gas reduction targets,” said Green Century Funds President Leslie Samuelrich. “It’s also about IBM maintaining its historic role as a climate leader and building long-term shareholder value.”
IBM Could Increase Its Credibility
IBM sells sustainability software and posted a blog in 2022 stating that the SBTi was created to facilitate “urgent climate action by setting science-based targets” and to help “companies tackle global warming while seizing the benefits and boosting their competitiveness in the transition to net-zero.”
Unfortunately, IBM has also stated that the SBTi is a “self-appointed arbiter for judging a company’s goals.” While undermining the value of the SBTi on the one hand, IBM is simultaneously selling software solutions that will help customers prepare to submit science-based targets to the SBTi.
“It’s ironic that Al Gore was a huge IBM ThinkPad fan in the 90’s – he took that computer with him everywhere,” said Green Century Shareholder Advocate Andrea Ranger. “I wonder how the former vice president would look at IBM now. Would he appreciate that IBM fought climate action at the ballot box? I think not.”
A sustainable investment strategy that incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.
About Green Century
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. Green Century 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 03.31.2024, International Business Machines Corporation comprised 0.00%, 0.74%, and 0.00%, Hewlett Packard Enterprise Company comprised 0.00%, 0.10%, and 0.00%, Microsoft Corporation comprised 5.34%, 12.51%, and 0.00%, and Salesforce, Inc. comprised 1.34%, 1.24%, 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.
The percentage in favor was calculated by (i) dividing the number of votes in support of the proposal by (ii) the sum of the number of votes voted in support of and against the proposal. Abstentions and broker non-votes were not included in the calculation.
You should carefully consider the Fund’s 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 info@greencentury.com, or call 1-800-934-7336. Please read the Prospectus carefully before investing.
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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.
The Green Century Funds are distributed by UMB Distribution Services, LLC, 235 W Galena Street, Milwaukee, WI 53212. UMB Distribution Services, LLC is not an affiliate of Green Century or any of its affiliates. May 2024.
