How to match your dollars with your values: Invest in less plastic, not fossil fuels.
Green Century has helped investors and businesses support the planet, not polluters, for over 30 years with your retirement savings.
You may shop local, take public transit, and aim to match your lifestyle with your values – but what about your money?
Your retirement funds are likely propping up industries that you’d rather avoid, like investing in fossil fuels and weapons.
Green Century, a Boston-based investment firm, was one of the nation’s first to offer fossil-free mutual funds. They also exclude industries that produce or profit from nuclear weapons, firearms, tobacco, and alcohol from its funds. For over thirty years, they’ve helped thousands of clients invest in line with their values – without the oil, guns or greenwashing.
They’ve also helped businesses stay accountable and as good environmental stewardship evolves. Since Green Century is owned by nonprofits, “one hundred percent of our profits go to supporting the environmental and public health campaign work that our nonprofit owners do,” according to Annie Sanders, Green Century’s director of shareholder advocacy.
In other words, profits from investments aren’t padding corporate pockets – instead, they’re funding environmental action.
Using dollars to push companies to do better
In addition to offering clean investments, Green Century actively pushes companies to improve their environment and social practices using environmental, social responsibility and corporate governance, or (ESG) criteria as a benchmark.
They accomplish this by filing shareholder proposals and engaging in advocacy efforts backed by rigorous research and respected partners – including the Rainforest Action Network, Mighty Earth, and the Environmental Defense Fund. Research is a core pillar of their approach, with a vetting process and ‘checks and balances’ system to corroborate the information.
One success story includes a campaign against deforestation caused by the production of palm oil in 2012. Green Century filed proposals on behalf of its shareholders against major companies, including Starbucks and Kellogg, whose products like cookies contain palm oil. “Unfortunately, suppliers destroy rainforests in Indonesia to produce it, which is not even necessary. There’s plenty of already degraded land that they can clear,” Sanders said. The campaign seemed to have a ripple effect with Starbucks committing to purchasing the oil through more sustainable production. Kellogg and Wilmar International, reportedly one of the larger offenders, made similar commitments.
Today, at a time when plastic production is increasing, new problems emerge: only 6% of plastic waste is recycled, endangering marine life and linked to health problems, including cardiovascular issues and reproductive issues. However, Green Century was able to receive commitments from Disney, Costco, and Amazon to measure their plastic footprint, and work to reduce it.
The hospitality industry has also recently gotten on board. “We also engaged with Hilton, Marriott, and Choice Hotels, who all agreed to assess their plastic footprint and then set a reduction goal this year,” Sanders said.
Leading Clients to Green Investments
Jeffrey Scales, a retired financial advisor and long-term Green Century investor, frequently recommended the firm to both clients and friends. “Any investor that values moral, ethical and good governance of companies and their boards will find that Green Century helps them meet that priority,” he said.
He also emphasized that ESG investing does not equal sacrificing a good return. “It’s not because you didn’t invest in fossil fuels or companies that made guns. You can still have high-quality returns that align with your values.”
Scales noted that Green Century’s partnerships with shareholders to push companies to improve will ultimately benefit the long-term investments, since these will be better performing companies and better community partners. “[Other companies] are putting short-term returns ahead of the impact on the environment and communities.”
Instead, the real risks come from bad timing, like entering or getting out of the market too soon, or not having a diversified portfolio.
Accessible for everyday investors.
Out of roughly 30,000 clients, Green Century’s investors represent all ages and socioeconomic backgrounds. The firm offers three mutual funds from over 600 companies, with a minimum requirement of $1000 to open an account.
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.
As with all equity funds, the share price will fluctuate and may fall if the market as a whole declines or the value of the companies in which the Fund invests falls. The value of stocks held in the Fund will fluctuate in response to factors that may affect a single company, industry, market cap, country or region 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. The Fund’s environmental criteria limit the investments available to the Fund compared to mutual funds that do not use environmental criteria; as a result performance could be affected.
The Green Century Funds are distributed by Distribution Services, LLC. Distribution Services and Green Century are not affiliated.
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