Douglass Guernsey – Behind the Scenes of a Shareholder Advocate

As a shareholder advocate at Green Century°, I try to influence the world’s top companies to make better environmental decisions by meeting directly with corporate leaders. 

Much of this work happens on the computer or over the phone, but there is nothing like meeting in person – partially because you never know what to expect. 

This spring I attended a shareholder meeting at Builders FirstSource* in Dallas that was so empty, at first, I thought I was in the wrong place. I was waiting completely on my own in a 100-seat event room when suddenly I was joined by a small handful of executives from the company. 

With so few of us in the room, the CEO, General Counsel and I discussed Green Century’s proposal, which asked the company to commit to reducing carbon emissions associated with timber harvesting and other supply chain issues. 

I encouraged the CEO to think about potential regulatory risk, about how climate change is impacting Boreal forests that the company relies on for roughly one-third of its revenue, and about the advantages of increasing efficiency and transparency in its supply chain. While we didn’t agree on everything, we had a productive conversation, and I commend Builders FirstSource CEO Dave Rush for connecting to address environmental risks. 

As a result of Green Century’s engagement, for the first time Builders FirstSource measured and disclosed its CO2 emissions from its operations and transportation and stated it would set emissions reduction targets. The company still has significant work to do, including measuring its emissions from timber harvesting, setting efficiency targets for its supply chain, and prioritizing sourcing FSC certified lumber. We will continue to work with the company to achieve these goals. 

A few weeks after returning from the meeting, the very same forests that Builders FirstSource relies upon erupted in the worst fire season in Canada’s modern history, bathing much of the U.S. in so much smoke that simply breathing the air outside could be the equivalent of smoking six cigarettes a day. Meanwhile, the earth as a whole had the hottest day – and month – on record.  

Clearly, more immediate environmental action is needed. 

Green Century is deeply committed to its environmental advocacy work and brings more than 30 years of environmentally responsible investing experience to its investing philosophy. Our team hopes to deliver not only long-term security for investors, but immediate environmental actions from portfolio companies. 

We do this every day, whether that means meeting in a room packed full of executives, or in an empty room with one CEO. 

Douglass Guernsey is a Shareholder Advocate at Green Century Capital Management. He holds an MBA from Brandeis University. 

An 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. 

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