Time Warner Inc.* Faces Shareholder Pressure to Cut Carbon Pollution
Contact: Lucia von Reusner, Green Century Capital Management, 617-482-0800, email@example.com
June 19, 2015: Concerned that the media conglomerate does not appear to have a long-term strategy for reducing its impacts on climate change, the Green Century Equity Fund has put forward a proposal urging Time Warner, Inc. (TWX) to adopt targets for reducing its greenhouse gas (GHG) emissions that shareholders will be voting on today at the company’s annual meeting. Green Century asserts that Time Warner is lagging its peers and public expectations for setting clear goals to reduce its greenhouse gas emissions and is likely missing major cost savings and investment opportunities associated with curbing these emissions. The company may also face potential reputational and regulatory risks associated with failing to take a more proactive approach to curbing its contributions to climate change.
“Without clear goals for reducing its greenhouse gas emissions, investors and the public are left to question if, or even whether, Time Warner has a long-term strategy to curb its dirty and damaging carbon pollution,” commented Libby O’Connell, Shareholder Advocacy Associate at Green Century Capital Management. “As the economic costs associated with climate change have become increasingly evident, TWX and other companies that fail to demonstrate a proactive ambition to curb their own contributions to this problem face reputational, regulatory, and financial risks.”
The impacts of climate change—caused by carbon emissions—are increasingly recognized as posing major risks to companies’ businesses and the economy at large, prompting investors to pay closer attention to how companies are managing their impacts on climate change. The scientific community has called for a global reduction in greenhouse gas emissions of up to 85% by 2050 in order to mitigate the worst impacts of climate change. In urging TWX to set a GHG reduction target for its own operations, Green Century has recommended that the company align its targets with those recommended by the Intergovernmental Panel on Climate Change’s scientific guidance.
A growing number of companies, including competitors such as The Walt Disney Company* and Twenty-First Century Fox Corporation,* have set targets to reduce their greenhouse gas emissions, reporting significant progress against these targets as well as significant savings associated with reductions in energy use related to these efforts. Time Warner, Inc., which offers entertainment products including Warner Bros. Pictures, HBO, CNN, and New Line Cinemas, does not have set targets for reducing its greenhouse gas emissions, and ranks near the bottom of its industry on its climate-risk management strategy, according to the Carbon Disclosure Project analysis of the company.
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Green Century Capital Management is the investment advisor to the Green Century Funds and offers two environmentally and socially responsible funds, the Green Century Equity Fund and the Green Century Balanced Fund. Green Century works to curb climate change through fossil fuel free investing, reinvestment in sustainable companies, and advocating with companies to improve their environmental policies and supply chains. Green Century also is the only U.S. mutual fund company owned by environmental non-profits, the Public Interest Research Groups (PIRGs).
*As of March 31, 2015, Time Warner, Inc. and The Walt Disney Company comprised 0.00% and 0.95% and 0.00% and 2.26% of the Green Century Balanced Fund and the Green Century Equity Fund, respectively. Other securities mentioned were not held in the portfolios of the Green Century Funds as of March 31, 2015. 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.
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