Shareholder Advocacy: Engagements with Companies
Green Century believes it is important to pressure a wide variety of companies to become more environmentally responsible, including those with the most egregious impact on the environment. As a result, we advocate for change at some companies that neither of the Green Century Funds invest in because they do not pass our Funds' screens for environmental responsibility.
2011 Engagements
Climate and Energy
ExxonMobil Corporation*: Green Century filed a resolution asking the company to prepare a report discussing possible long-term risks to the company’s finances and operations posed by the environmental, social and economic challenges associated with the oil sands. The proposal received 27 percent** of the vote.
ConocoPhillips*: Green Century filed a resolution asking the company to prepare a report on the environmental damage that would result from the company’s expanding oil sands operations in the Canadian boreal forest. The proposal received nearly 28 percent** of the vote.
Southern Company* and FirstEnergy Corporation: Green Century filed a resolution asking the companies to prepare a report on the companies' efforts, above and beyond current compliance, to reduce environmental and health hazards associated with coal combustion waste, and how those efforts may reduce legal, reputational and other risks to the companies' finances and operations. The proposals received nearly 24 percent** and 36 percent** of the vote respectively.
Procter & Gamble and General Mills*: Green Century joined As You Sow in filing a resolution at the companies asking them to assess the feasibility of adopting a policy of Extended Producer Responsibility - a corporate and public policy that shifts accountability for collection and recycling from taxpayers and governments to producers - for post-consumer product packaging. This step would reduce carbon emissions and air and water pollution resulting from the company's business practices.
Wilderness and Biodiversity
Costco Wholesale Corporation*: Stemming from a resolution Green Century filed in the 2010 proxy season, investors have had a productive dialogue with Costco which moved the company from being a sector laggard to a leader. The company committed to cease sales of 12 wild seafood species identified as “at great risk”, set a goal to meet global performance-based standards for shrimp farming and will implement a set of salmon farming standards.
Toxics and Environmental Health
Whole Foods Market Inc.*: Green Century has been engaging in dialogue with Whole Foods since 2006 on the issue of bisphenol A (BPA). After the company agreed to eliminate BPA from bottles sold in its stores, Green Century is now working with Whole Foods to phase BPA out of its other products and operations.
Packaged food/beverage companies and BPA: Green Century continues to pressure packaged food and beverage companies, including Campbell’s Soup Company*, H.J. Heinz*, Hain Celestial*, Kellogg*, and PepsiCo*, to explore and implement BPA-free packaging for all canned products. For more information on our work in this area, please read our report, "Seeking Safer Packaging 2010."
Corporate Accountability and Responsibility
Eastman Kodak Company*: Green Century filed a resolution encouraging Eastman Kodak to increase its disclosure of political spending, including annual disclosure of all contributions made with corporate funds and dues paid to trade associations and other tax-exempt groups. Green Century withdrew its proposal after the company agreed to improve disclosure around its political spending with corporate funds.
CVS Caremark Corporation*: Green Century filed a resolution encouraging CVS to increase its disclosure of political spending, including annual disclosure of all contributions made with corporate funds and dues paid to trade associations and other tax-exempt groups. The proposal received 39 percent** of the vote.
International Business Machines Corporation (IBM)* and PepsiCo*: With Walden Asset Management, Green Century co-filed resolutions encouraging IBM and Pepsi to institute a comprehensive review of each companies’ political spending policies and oversight processes, including payments and affiliations to controversial trade associations, such as the U.S. Chamber of Commerce. The proposals received 31 percent** and 10 percent** of the vote respectively.
Occidental Petroleum*: Green Century filed a proposal requesting a Board-level review of the company’s political spending and policies. The company faced risk after Occidental supported the failed Proposition 23 in the 2010 elections, which would have rolled back California’s landmark global warming law. Green Century’s shareholder proposal received over 30 percent** of the vote.
Water
Ultra Petroleum*: Green Century co-filed a resolution with As You Sow encouraging Ultra to prepare a report disclosing the environmental impacts of the company’s hydraulic fracturing operations and to take measures to reduce or eliminate hazards to air, water and soil quality, including switching to less toxic fracturing fluids. The proposal received nearly 42 percent** of the vote.
Cleco Corporation*and Portland General Electric*: Green Century sent letters encouraging these electric companies to address the business risks faced by companies that produce energy using traditional power plants and urged the companies to disclose their water use and invest in less water intensive generation methods.
Food and Agriculture
Chipotle Mexican Grill, Inc.*: In the 2010 proxy season Green Century co-filed a resolution with Trillium Asset Management and Calvert Investments encouraging Chipotle to produce a report disclosing how the company is reducing pesticide use throughout its supply chain. We withdrew the proposal after the company agreed to increase its disclosure but we remain in dialogue with the company, pressing it to increase transparency and reduce its pesticide use.
*As of December 31, 2011, neither the Green Century Equity Fund nor the Green Century Balanced Fund was invested in ExxonMobil Corporation, ConocoPhillips, Southern Company, First Energy Corporation , or Occidental Petroleum. As of December 31, 2011 Procter & Gamble comprised 0.00% of the Green Century Balanced Fund and 3.50% of the Green Century Equity Fund; General Mills comprised 0.02% of the Green Century Balanced Fund and 0.50% of the Green Century Equity Fund; Costco Wholesale Corporation comprised 2.40% of the Green Century Balanced Fund and 0.69% of the Green Century Equity Fund; Whole Foods Market Inc. comprised 1.57% of the Green Century Balanced Fund and 0.20% of the Green Century Equity Fund; Campbell’s Soup Company comprised 0.00% of the Green Century Balanced Fund and 0.12% of the Green Century Equity Fund; H.J Heinz comprised 0.00% of the Green Century Balanced Fund and 0.33% of the Green Century Equity Fund; Hain Celestial comprised 0.00% of the Green Century Balanced Fund and 0.02% of the Green Century Equity Fund; Kellogg comprised 0.00% of the Green Century Balanced Fund and 0.25% of the Green Century Equity Fund; PepsiCo comprised 0.00% of the Green Century Balanced Fund and 2.00% of the Green Century Equity Fund; Eastman Kodak Company comprised 0.00% of the Green Century Balanced Fund and 0.01% of the Green Century Equity Fund; CVS Caremark Corporation comprised 0.00% of the Green Century Balanced Fund and 1.05% of the Green Century Equity Fund; International Business Machines comprised 2.35% of the Green Century Balanced Fund and 4.19% of the Green Century Equity Fund; Ultra Petroleum comprised 0.00% of the Green Century Balanced Fund and 0.09% of the Green Century Equity Fund; Cleco Corporation comprised 0.00% of the Green Century Balanced Fund and 0.04% of the Green Century Equity Fund; Portland General Electric comprised 0.00% of the Green Century Balanced Fund and 0.04% of the Green Century Equity Fund; and Chipotle Mexican Grill comprised 0.00% of the Green Century Balanced Fund and 0.20% of the Green Century Equity Fund.
Portfolio composition will change due to ongoing management of the Funds. Please refer to the Green Century Funds website for current information regarding the Funds' portfolio holdings. These holdings are subject to risk as described in the Funds' prospectus. References to specific investments should not be construed as a recommendation of the securities 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.
