Parnassus drops its exclusionary screens while Green Century reaffirms its commitment to them.
Parnassus Investments recently announced that they were dropping the exclusionary screens it used to restrict the types of companies it invested in. This change opens the floodgates for Parnassus to now invest in every industry, including the ones that they had previously eschewed including:
• Coal
• Oil
• Fracking
• Tobacco
• Guns
• Military Weapons
• Nuclear Energy
Why did this change happen? From our point of view, it can’t be because the companies in these industries have changed their core businesses. Tobacco companies produce products that are harmful and potentially fatal to people who smoke and nonsmokers alike.
Oil companies are still damaging ecosystems in pursuit of a product that scientists link to erratic weather and nuclear energy still produces radioactive waste.
We believe this rollback will have consequences for Parnassus investors and the financial advisors who have used their funds. The impact is that everyday investors, financial advisors who work with them, and institutional investors may no longer count on Parnassus to keep their clients out of these industries. After seeing Parnassus alter its alignment on previous commitments, advisors may become wary of using Parnassus funds for their clients. As one advisor told us, “We’re not happy with this move. Green Century is one of the few firms I feel like I can trust now.”
Green Century has worked hard to build that trust for 34 years. I can reiterate our commitment to our investors. We were founded as a firm for people who wanted to align their environmental values with their investments as they saved for the future. In 2014, we became one of the first fossil fuel-free, environmentally responsible fund families. Not every company we invest in is perfect. Still, when we see room for improvement in those companies, we lead a rigorous shareholder advocacy program to negotiate better environmental policies, such as sourcing more clean energy and reducing the use of plastics.
We won’t stray from our mission because our values are baked into our DNA. We are owned by environmental and public health non-profit organizations that speak out for the public and stand up to special interests about problems that affect the public’s health, safety and well-being. That’s who we have been for more than three decades and that’s who will continue to be. You can count on us.
—Leslie Samuelrich, President, Green Century