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Sustainable Investment Strategy

The Green Century Funds avoids fossil fuel companies and instead invests in companies leading their industries in environmental, social and governance (ESG) rankings. The Funds use the following strategies to pursue competitive returns and investments in sustainable companies.

Fossil Fuel Free

Green Century is a family of fossil fuel free environmentally responsible and diversified mutual funds in the U.S.  Green Century had the foresight to avoid coal and major oil companies from its inception, providing a long track record of avoiding this environmentally reckless industry. 

Our exclusions are thorough.  The Green Century Funds avoid:

  • Exploration, extraction, processing, refining and transmission of coal, oil and gas
  • Utilities that burn fossil fuels to produce electricity
  • Companies with carbon reserves

Read more about the reasons to invest fossil fuel free on our fact sheet. 

 

Value-based screens

Green Century believes that investors should have an option to avoid environmentally reckless industries.  The Green Century Funds do not invest companies that produce:

  • Tobacco 
  • Nuclear weapons
  • Military weapons
  • Nuclear power
  • Alcohol, Gambling and Adult Entertainment
  • Coal, Oil, or Gas
  • Genetically-Modified Organisms (GMOs)

All our exclusionary screens are included in our prospectus

Environmental, Social and Governance (ESG)

All the Green Century Funds use ESG criteria. 

 

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.

Performance of Fossil Fuel Free Investing

The fossil fuel sector has been one of the worst performing sector for the last year and decade.

Research from leading industry analysts suggests that investing fossil fuel free may protect investors from:

  • Volatility of oil prices
  • Decreased dividends due to capital expenditures on high-cost projects such as offshore and Arctic drilling
  • Devalued or stranded carbon reserve assets

These concerns are just some of the reasons why Green Century has a long-standing investment strategy of avoiding the worst polluting companies and instead seeking to invest in companies that are helping to build a sustainable economy.

Recent studies on performance:

Advisor Partners

Fossil Fuel Divestment: Perspectives After the Oil Bust

MSCI

Responding to the Call for Fossil-fuel Free Portfolios

MSCI

MSCI ACWI ex Fossil Fuels Index (USD)

Important green investing distinctions

As more investments are marketed as “low carbon” or “climate change solutions,” keep these points in mind:

  • “Low carbon” is not the same as fossil fuel free. Low carbon investments might invest in coal, oil, or gas companies; these portfolios might evaluate carbon emissions, carbon reserves, or the overall carbon footprint of an investment, but they may also still invest in the companies most responsible for climate change, like natural gas companies.
  • Any binding exclusion, such as avoiding fossil fuel companies, should be spelled out in the prospectus. You can review the prospectus of the Green Century Funds here.
  • Only portfolios with zero or “0.00%” in the energy sector would be consistent with fossil fuel free investments. Download our Fossil Free Investing Guide for additional guidance.

Additional Resources on Sustainable Investing

°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds).

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 click here for more information, email info@greencentury.com or call 1-800-934-7336. Please read the Prospectus carefully before investing.

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 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.  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; as a result performance could be affected.

The Green Century Funds are distributed by UMB Distribution Services, LLC., 235 W Galena Street, Milwaukee, WI 53212.