The Costly Ruling Against BP Provides Another Reason to Avoid Investing in Oil Companies
Contact: Leslie Samuelrich, Green Century Capital Management, 617-482-0800, email@example.com
This press release was originally sent on September 10, 2014
September 10, 2014: The recent watershed ruling against BP* that found BP took irresponsible drilling risks in the 2010 Gulf of Mexico Deep Horizon oil spill is a stark reminder of the potential financial risks of investing in oil companies. The details of the spill, described as the “worst U.S environmental disaster” by then EPA Director Carol Browner,¹ might have faded, but the recent watershed ruling, which may eclipse $50 billion, brought the financial impact of the company’s actions back to the attention of investors worldwide. BP’s stock immediately declined and financial analysts predicted that the fine could wipe out years of profit and interfere with the company’s financial ability to maneuver effectively.² BP was found guilty of gross negligence by U.S. District Judge Carl Barbier for its oil rig that exploded, killing 11 people and dumping 170 million gallons of crude oil into the Gulf of Mexico for three months.
“The ruling shows that the risks of pursuing high cost and high risk oil explorations in deep water can impact investors for years,” stated Leslie Samuelrich, President of Green Century Capital Management. “This ruling is a wake-up call for investors who have not yet addressed the potential risks of investing in fossil fuel companies. While the BP explosion was unprecedented, no drilling company can predict or protect against all the unforeseen environmental accidents and resulting costs and liabilities that can impact investors,” added Samuelrich.
Both Green Century’s Balanced Fund and Equity Fund exclude fossil fuel companies and instead seek to invest in companies that manage environmental risks and operate sustainably. Green Century also works with companies to improve their environmental footprint and make their supply chain more sustainable. The following content was not prepared by Green Century.
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Green Century Capital Management (Green Century) is an environmentally responsible investment advisory firm that manages two fossil fuel free mutual funds – the Green Century Balanced Fund (GCBLX) and the Green Century Equity Fund (GCEQX). Founded in 1991, Green Century also leverages its power as a shareholder to press companies to adopt more environmentally responsible corporate behavior.
* Neither of the Green Century Funds invests in BP Plc. 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 consider the Funds’ investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus that contains this and other information about the Funds, please click here, email firstname.lastname@example.org, or call 1-800-93-GREEN. Please read the Prospectus carefully before investing.
Stocks will fluctuate in response to factors that may affect a single company, industry, sector, or the market as a whole and may perform worse than the market. 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.
This information has been prepared from sources believed to be reliable. The views expressed are as of the date of this writing and are those of the Advisor to the Funds.
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