STATEMENT: Green Century Earns Enough Support for Sustainable Supply Chain Proposal to Re-file with Ford
Media Contacts:
Andrea Ranger, aranger@greencentury.com, 781-349-2813
Pam Podger, ppodger@greencentury.com, 802-299-9495
Boston, May 9, 2024 – Ford Motor Company shareholders delivered 6.6% of votes cast in support of Green Century’s° resolution asking the company to eliminate materials linked to deforestation in its cars and trucks. The proposal also asked Ford to buy more sustainable steel and aluminum, and pushed for the company to purchase steel and aluminum plants that run off of clean, renewable energy.
The Ford family has significant control over Ford business decisions because it owns a special class of stock that ensures it has 40% of the voting power. Votes against the Green Century proposal by Ford family members could have negatively impacted the vote result.
Ford purchases leather, rubber, and minerals for car seats, tires, and auto parts. Raising cattle, harvesting rubber, and mining minerals are associated with deforestation and ecological damage in vulnerable areas such as Brazil, Indonesia, West Africa, and Southeast Asia. Deforestation is now one of the leading drivers of climate change and biodiversity loss.
Heavy emitting industries such as steel and aluminum also contribute to climate change. Currently, not a single ton of sustainable steel and aluminum is manufactured in the United States. Green Century’s proposal asks Ford to join organizations like ResponsibleSteel and the Aluminum Stewardship Initiative, which develop sustainability certifications for aluminum and steel manufacturers and push them to replace fossil fuels with renewables.
“While we had wished for a higher vote, we’re pleased with the support we received,” said Green Century Funds President Leslie Samuelrich. “Enhancing supply chain sustainably at Ford is a new initiative for us, and we plan to keep pressure on the company to address its material environmental risk.”
Sustainable Supply Chains Are Key
In 2022, Ford set a target to purchase sustainable steel and aluminum for 10% of its total steel and aluminum purchases by 2030. The company also planned to add EVs to its fleet, which are manufactured with more aluminum than gas-powered cars to offset the extra battery weight. The Aluminum Stewardship Initiative works to ensure that aluminum producers are cutting emissions significantly by 2025. Similarly, ResponsibleSteel has a mission to “…be a driving force in the socially and environmentally responsible production of net-zero steel, globally.” Ford may benefit by joining both organizations, using its influence as a major consumer of steel and aluminum to press for greener production.
“I don’t think anyone wants to buy a Ford Explorer or F-150 and learn that the leather, rubber, and minerals in their vehicles contributed to deforestation,” said Green Century Shareholder Advocate Andrea Ranger. “Sustainability needs to be woven into every aspect of Ford’s supply chain, because Green Century believe it’s good for Ford’s investors, customers, and the company itself.”
A sustainable investment strategy that incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.
About Green Century
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. Green Century hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of 03.31.2024, securities mentioned were not held in the portfolios of any of the Green Century Funds. 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.
The percentage in favor was calculated by (i) dividing the number of votes in support of the proposal by (ii) the sum of the number of votes voted in support of and against the proposal. Abstentions and broker non-votes were not included in the calculation.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds please visit www.greencentury.com, email info@greencentury.com, or call 1-800-934-7336. Please read the Prospectus carefully before investing.
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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
The Green Century Funds are distributed by UMB Distribution Services. UMB Distribution Services, LLC is not an affiliate of Green Century or any of its affiliates. May 2024.
