Media Contacts:
Annie Sanders, Director of Shareholder Advocacy, asanders@greencentury.com, 773-272-6691
Pam Podger, Communications Director, ppodger@greencentury.com, 802-299-9495
Boston, April 22, 2024 – Archer-Daniels-Midland Company* (ADM), one of the largest agricultural companies in the world, has released a study that informed a new policy to enhance protections for South American ecosystems key to global biodiversity and the fight against climate change. ADM’s new policy will eliminate primary native vegetation conversion, or the repurposing of wild land for crops such as soy and corn, from its global supply chains by 2025 for direct suppliers and by 2027 for indirect suppliers.
“Critical ecosystems like the Cerrado, Gran Chaco and Pantanal may be less well-known than the Amazon, but they’re just as important when it comes to protecting our planet from biodiversity loss and climate change,” said Leslie Samuelrich, president of Green Century Funds°. “We congratulate ADM on enhancing protections for these special places.”
Shareholder Proposal Prompted Study, Protections
In response to a shareholder proposal filed by Green Century, Robeco and BNP Paribas Asset Management, ADM had agreed in spring 2023 to conduct a feasibility study to eliminate native vegetation conversion from its South American soy and corn supply chains and issue a correlated commitment. The feasibility study completed in November 2023 and published in April 2024 informed ADM’s new “no-conversion” commitment, which covers supply chains in the Brazilian Amazon, Cerrado and Pantanal biomes, as well as the Paraguayan and Argentinian Chaco.
“We believe ADM has made significant progress in ensuring business continuity in an increasingly fragile ecosystem by having a clear outlook on key areas needing protection across its supply chain,” said Peter van der Werf, Head of Engagement at Robeco. “Importantly, the assessment allows ADM to prioritize already degraded land fit for further agricultural expansion, allowing it to steer investments and help farmers to move forward in a sustainable manner.”
Native vegetation conversion degrades ecosystems such as the Cerrado savanna in Brazil that are vital for preserving biodiversity and mitigating climate change. Soy production is a leading cause of native vegetation conversion in South American habitats and contributes to a broader decline of South American wilderness.
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About Green Century Funds
°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 3.31.2024, ADM comprised 0.00%, 0.14%, 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.
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.
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 a variety of risks including interest rate, credit, and inflation risk.
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, LLC. 235 W Galena Street, Milwaukee, WI 53212. UMB Distribution Services, LLC is not an affiliate of Green Century or any of its affiliates. April/2024