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Investment Strategy

Sustainable & Strategic Investments

The Green Century Funds avoids environmentally dangerous industries and instead invests in companies that meet high environmental, social and governance (ESG) criteria. The Funds use the following strategies to pursue competitive returns.

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.

All the Green Century Funds invest in companies that meet high ESG criteria.

Learn more about what ESG does and does not mean in this clarifying piece written by Green Century Funds President Leslie Samuelrich.

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.

The Green Century Funds belief is that investors should have the option to avoid environmentally harmful industries and align their investments with their values. The Green Century Funds do not invest in companies that produce:
  • Tobacco
  • Genetically Modified Organisms (GMOs)
  • Nuclear Power
  • Alcohol, Gambling, and Adult Entertainment
  • Coal, Oil, or Gas
  • Military, Conventional or Nuclear Weapons
Our exclusionary screens are included in our prospectus.
Green Century Funds is one of the first families of fossil fuel free mutual funds in the U.S.
All of our mutual funds avoid:
  • Exploration, extraction, processing, refining, and transmission of coal, oil, and gas
  • Utilities that burn fossil fuels to produce electricity
  • Companies with carbon reserves
Tips to keep in mind when comparing other mutual funds to ours:
  • “Low carbon” is not the same as fossil fuel free. Low carbon investments might invest in coal, oil, or gas fracking companies
  • Only portfolios with zero or “0.00%” in the energy sector would be consistent with fossil fuel free investments
  • Firms can describe their funds as fossil fuel free but only apply that definition to 80% of their investments.  We apply our exclusions to 100% of our stock and bond holdings.
Download our Fossil Free Investing Guide for additional information
View our Why Invest Fossil Fuel Free fact sheet for financial reasons to avoid coal, oil and gas.
View our Fossil Fuel Free Investing’s Success fact sheet to learn about the movement’s impact.

Green Century also employs a full array of shareholder advocacy tools, including dialogues with management and the filing of shareholder resolutions, to improve corporate environmental policies and supply chains to make an impact you can measure.

Learn more.

Since 1991, every dollar Green Century earns managing its Funds supports our nonprofit owners and their work. This unique aspect makes Green Century truly a distinctive firm.

Our owners are nine nonprofit organizations across the U.S. They advocate for the public interest and speak out for a healthier, safer world. They have championed changes that have resulted in more recycling and less waste, cleaner air, and cleaner energy.

Learn more.

Our Environmentally Responsible Funds

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Green Century MSCI International Index Fund
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Green Century Equity Fund
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Green Century Balanced Fund

Going Fossil Fuel Free

Why Invest

Research from leading industry analysts suggests that strategically investing fossil fuel free may help shield investors from:

  • Volatility of oil prices
  • Decreased dividends due to capital expenditures on high-cost projects such as offshore and Arctic drilling
  • Devalued or stranded carbon reserve assets

These concerns are just some of the reasons why Green Century Funds has a long-standing investing strategy of avoiding the worst polluting companies and instead seeks to invest in companies that have not driven climate change.

Source : MSCI World ex USA SRI ex Fossil Fuels Index (USD)

*See important disclosure information regarding MSCI ACWI ex Fossil Fuels and MSCI ACWI Index.

Past performance is not a guarantee of future results.

Avoid Greenwashing

As more investment strategies are marketed as “low carbon” or “climate change solutions,” keep these points in mind:

  • “Low carbon” is not the same as fossil fuel free. Low carbon investments might invest in coal, oil, or gas companies; these portfolios might evaluate carbon emissions, carbon reserves, or the overall carbon footprint of an investment, but they may also still invest in the companies most responsible for climate change, such as fracking companies.
  • Any binding exclusion, such as avoiding fossil fuel companies, should be spelled out in the prospectus. You can review the prospectus of the Green Century Funds here.
  • Only portfolios with zero or “0.00%” in the energy sector would be consistent with fossil fuel free investments. Download our Fossil Free Investing Guide for additional guidance

Sample Holdings

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Johnson Controls

Johnson Controls invented the electronic thermostat and has been involved in more than 500 renewable energy projects and has helped clients reduce CO2 emissions by 15 million metric tons since 2000. Its retrofit of the Empire State Building reduced its energy use by 38%. Johnson Controls is a current holding in the the Green Century Equity Fund.

Photo by Ales Krivec on Unsplash+
Vestas Wind Systems

Vestas Wind Systems is the only global energy company dedicated exclusively to wind energy. With installations in 84 countries, Vestas turbines account for 18% of global wind energy production. Vestas, headquartered in Denmark, is a current holding in the Green Century MSCI International Index Fund.

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Starbucks Sustainability Bond

Starbucks’ sustainability bond supports coffee farmers who commit to promote long term productivity by keeping soil healthy, conserving water and growing shade trees to protect wildlife. The Starbucks bond is a current holding in the Green Century Balanced Fund.

*As of December 31, 2023, Johnson Controls International, PLC, comprised 1.09%, 0.18%, and 0.14%; Vestas Wind Systems comprised 0.00%, 0.00% and 0.72% and Starbucks Corporation comprised 1.68%, 0.52% and 0.00% of Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund respectively. As of the same date, other 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. 

Resources

*As of December 31, 2023, Johnson Controls International, PLC, comprised 1.09%, 0.18%, and 0.14%; Vestas Wind Systems comprised 0.00%, 0.00% and 0.72% and Starbucks Corporation comprised 1.68%, 0.52% and 0.00% of Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund respectively. As of the same date, other 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. 

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