BOSTON -- In response to a shareholder proposal filed by Green Century Capital Management°, Environment America and PIRG’s affiliated socially responsible mutual fund company, the grocery retailer Kroger* has committed to setting science-based targets to reduce greenhouse gas emissions from its full value chain, including its operations and its supply chains. Greenhouse gas emissions from the food system represent roughly a third of all planet-warming emissions. Kroger is the largest supermarket chain in the United States, and among the nation’s largest general retailers.
Kroger has committed to setting targets through the UN-backed Science Based Targets initiative (SBTi). That will require Kroger, in 2023, to improve its existing scope 1 and 2 emissions targets enough that it plays its part in keeping the average global temperature from rising more than 1.5°C from pre-industrial levels. Scope 1 emissions are direct emissions from sources owned and controlled by Kroger, such as vehicles. Scope 2 emissions are those associated with the purchase of electricity, steam, heat or cooling.
Kroger will also set a scope 3 target for the first time and disclose its comprehensive scope 3 emissions, which likely represent the vast majority of its climate impact. For context, Walmart* has estimated that for retail companies, roughly 95% of emissions are in scope 3. Scope 3 emissions include all sources an organization indirectly includes in its value chain.
In response, Environment America’s Destination: Zero Carbon Director Morgan Folger released the following statement:
“Kroger's decision to reduce its impact on climate change will have a positive repercussion all along its supply chain. Stocking food on Kroger’s shelves relies on agricultural practices, including clear cutting forests for cropland, that significantly contribute to climate change. Business as usual is not an option when the impacts of global warming are getting worse each year. The grocery giant's commitment to science-based climate goals will help create a more sustainable food system.”
PIRG Environment Campaigns Director Matt Casale said:
“The recent reports from the Intergovernmental Panel on Climate Change make clear that to tackle climate change, we need all hands on deck. Governments must do their part, as must each of us, but importantly, so must the companies that make and sell the stuff we use and food we eat every day. As the largest supermarket chain in the U.S., Kroger's commitment will not only result in significant emissions reductions, but should serve as a model for companies of all kinds.”
Environment America and PIRG are not registered investment advisers. Environment America and PIRG are not providing any investment advice to any recipient of this communication.
About Green Century Capital Management
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are a family of fossil fuel-free environmentally responsible mutual funds. Green Century Capital Management 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 March 31, 2022, The Kroger Co. comprised 0.00%, 0.20%, and 0.00% of the 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 email@example.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. A sustainable investment strategy which incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.
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. 5/22