Sustainable Investment Strategy
Investing in Sustainable Companies
Green Century invests in environmental leaders and innovators, including renewable energy, energy and water efficiency, and healthy food companies as well as companies leading their industry in environmental, social and governance (ESG) performance.
Green Century uses the following strategies to offer investments in sustainable companies while pursuing competitive returns:
Environmental, Social and Governance (ESG) Performance Ratings.
A large and growing body of evidence demonstrates that choosing investments by incorporating ESG performance may reduce risk and offer financial advantages. Green Century believes that companies that protect the environment may be more profitable in the long run by avoiding risks, being prepared for changing regulations, and growing through competitive advantages.
Green Century also monitors company controversies to identify and avoid ones that are trending toward damaging reputational risks or are not following international norms and principles.
Value-Based, Socially Responsible (SRI) and Exclusionary Screens.
To offer investors a way to invest with their values, our Funds avoid dangerous and harmful industries including fossil fuels, civilian and military weapons, tobacco, producers of GMOs (Genetically Modified Organisms), and nuclear energy.
Fossil Fuel Free Commitment.
Green Century is proud to be the first family of responsible and diversified fossil fuel free mutual funds in the U.S. Definitions matter - our definition of fossil fuel free investing excludes companies that explore for, extract, process, refine, and transmit coal, oil, and gas, as well as companies that burn fossil fuels to make electricity, or any companies with carbon reserves.
Fossil Fuel Free Investing
Green Century is proud to be the first family of responsible and diversified fossil fuel free mutual funds in the U.S.
What About the Performance of Fossil Fuel Free Investing?
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.
Review recent studies on performance:
Fossil Fuel Divestment: Perspectives After the Oil Bust
the Call for Fossil
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Important Distinctions Between Green Investment Approaches
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.
- Review the prospectus. 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 (PDF) 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
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 [email protected] 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.