deforestation – MIDANA CAPITAL Funds

Douglass Guernsey – Behind the Scenes of a Shareholder Advocate

Douglass Guernsey — Wed, 02 Aug 2023 16:15:31 +0000

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

Guernsey at the Builders Firstsource AGM in 2023

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 MIDANA CAPITAL’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 MIDANA CAPITAL’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.

MIDANA CAPITAL 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 MIDANA CAPITAL 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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About MIDANA CAPITAL Funds

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. MIDANA CAPITAL 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, 2023, Builders FirstSource, Inc. comprised 0.00%, 0.07%, and 0.00%, of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund, respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL 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.

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.

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.midanacapital.com, email info@midanacapital.com, or call+1(480)-439-2851. 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 MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 6/23

STATEMENT: MIDANA CAPITAL Earns 14.3% of Total Votes Cast for Proposal Asking General Motors* to Increase Supply Chain Sustainability

Andrea Ranger — Tue, 20 Jun 2023 15:58:14 +0000

Media Contacts:

Andrea Ranger, Shareholder Advocacy, aranger@midanacapital.com, 781-349-2813;

Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495

Boston, June 20, 2023 – General Motors released the results of the shareholder vote on a MIDANA CAPITAL ° proposal asking the company to improve the sustainability of its aluminum, steel, rubber, and leather supply chains. Votes cast in favor reached 14.3% for this first-year proposal, which asked the company to disclose the environmental impacts of these key materials, procure more low-carbon aluminum and steel, and eliminate deforestation associated with producing leather and rubber.

In recent years, General Motors has set several aggressive targets – one to achieve carbon neutrality by 2040 and another to make and sell only electric light-duty vehicles by 2035. However, the company has not established clear targets for procuring green steel or aluminum, even though both industries can electrify some of their operations and use renewable energy to do so. Further, GM has yet to join industry associations such as ResponsibleSteel ^TM, a coalition which created a certification system for green steel and is working to increase customer demand for green steel manufacturing.

Additionally, GM may be sourcing leather and rubber used for car interiors and tires from areas that are associated with deforestation. For example, in Brazil, which is considered a major source of leather for U.S. auto manufacturers, raising cattle is a leading cause of deforestation. The growth and expansion of rubber plantations in Southeast Asia and West Africa – the two primary areas in the world where latex for car tires is harvested – threatens the destruction of biodiverse ecosystems in those regions. Nevertheless, GM currently lacks public targets, milestones and metrics that would indicate progress toward eliminating its exposure to deforestation from rubber plantation expansion or destruction of tropical forests from cattle ranching.

In response to the vote, MIDANA CAPITAL Funds President Leslie Samuelrich said:

“We believe that even with a full transition to electric cars and trucks by 2035, GM has exposure to significant environmental risks. Ultimately, we don’t think GM wants to be associated with deforestation. If the company wants to clean up its steel and aluminum supply chains, it should invest now in the transition to low-carbon steel and aluminum. Waiting only postpones much needed emissions cuts across the globe.”

Andrea Ranger, MIDANA CAPITAL shareholder advocate, added:

“As one of the largest auto companies in the world, GM has a leadership role to play in addressing climate and deforestation risk. Many European auto companies, such as BMW, Mercedes, Volkswagen, and Volvo, are making commitments to source low-carbon metals. GM has an opportunity to catch up and lead the way for American manufacturers. Moreover, few manufacturers are addressing deforestation risk within their supply chains. GM could set an industry-wide standard by adopting near-term targets for zero deforestation.”

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°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds).

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.

Notable 21% vote in favor of MIDANA CAPITAL Proposal to Set Greenhouse Gas Reduction Targets at Builders FirstSource*

Douglass Guernsey — Fri, 16 Jun 2023 19:06:58 +0000

Media Contacts:

Douglass Guernsey, Shareholder Advocate, dguernsey@midanacapital.com, 617-482-0800

Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495

Boston, June 16, 2023 – Builders FirstSource, the country’s largest building product supplier to the professional market, released the vote result from its annual meeting of shareholders on Tuesday. MIDANA CAPITAL° received a notable 21% of the vote in favor of its shareholder proposal, which asks the company to adopt science-based greenhouse gas emissions reduction targets. The proposal additionally asks the company to set goals for sourcing more renewable energy, increasing energy efficiency in its operations, and procuring zero-emission vehicles.

To implement science-based targets, the company would have to reduce its direct, operational emissions and its indirect emissions including from timber harvested for the lumber it sells. Over 5000 companies, including competitors Lowe’s and Home Depot, have committed to working with the Science Based Targets initiative, and nearly 60% of all Fortune 500 companies have set some kind of climate change reduction target.

In response to the vote, MIDANA CAPITAL Funds President, Leslie Samuelrich said:

“Last year, we filed a nearly identical proposal at Builders asking for reduction targets which received a resounding ‘yes’ vote from investors – but Builders took almost no action. The company relies heavily on timber, which comes from forests that are significantly threatened by climate change. We believe management needs to start taking this risk seriously by measuring, disclosing, and setting reduction targets for its Scope 3 supply chain emissions.”

MIDANA CAPITAL Engaged with Builders FirstSource to Set First Emissions Reduction Targets

Douglass Guernsey, shareholder advocate at MIDANA CAPITAL added:

“At the 11th hour, Builders disclosed its Scope 1 and 2 emissions, which cover the direct emissions from its operations, and stated it will set emissions reduction targets for both these categories in 2025. While we appreciate that Builders is now taking action on a part of MIDANA CAPITAL’s 2022 proposal, the company has not yet measured, disclosed, or set targets for its Scope 3, or supply chain emissions, leaving investors in the dark for what comprises, on average, 75% of companies’ climate emissions.”

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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About MIDANA CAPITAL Funds

*As of March 31, 2023, Builders FirstSource, Inc. comprised 0.00%, 0.07%, and 0.00%, Lowes Companies, Inc. comprised 0.00%, 0.66%, and 0.00%, and Home Depot, Inc. comprised 0.88%, 1.67%, and 0.00%, of the Green Century Balanced Fund, the MIDANA CAPITAL 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 MIDANA CAPITAL 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.

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 MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 6/23

Shareholders to Vote on MIDANA CAPITAL Resolution Urging General Motors* to Cut Emissions and Deforestation from its Supply Chains

Annie Sanders — Wed, 14 Jun 2023 15:19:45 +0000

Media Contacts:

Andrea Ranger, Shareholder Advocacy, aranger@midanacapital.com, 781-349-2813; Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495

Boston, June 14, 2023 –The shareholders of the General Motors Company will vote Tuesday, June 20 on a MIDANA CAPITAL° shareholder proposal asking the company to improve the sustainability of its aluminum, steel, rubber, and leather supply chains.

“While GM has taken steps to increase the sustainability of its operations, it continues to face climate risk from the global sourcing of its automotive materials,” said MIDANA CAPITAL Funds President, Leslie Samuelrich. “GM has an opportunity to be an industry leader by investing in low-carbon aluminum and steel – as well as by protecting tropical forests from the destructive practices associated with producing leather and rubber.”

The production of aluminum and steel used for automotive parts and manufacturing equipment has a heavy carbon footprint. For example, the world’s auto manufacturers consumed 18% and 11% of global aluminum and steel production respectively, according to tallies completed in 2019. Globally, manufacturing steel and aluminum creates billions of tons of carbon dioxide pollution annually, or about 13% of total global GHG emissions.

Further, the leather and rubber that GM sources for its car seats and tires, may be associated with deforestation and land clearance. In Brazil, a country considered a major source of leather for U.S. auto manufacturers, raising cattle causes nearly 70% of the country’s deforestation. The automobile industry is also the biggest consumer of natural rubber, and rubber tree cultivation is a leading driver of deforestation in Southeast Asia and West Africa.

Despite GM’s recent commitment to achieving carbon neutrality by 2040, the company does not yet disclose the emissions associated with these key materials, nor does it offer concrete strategies for reducing those emissions. Additionally, GM has yet to set a zero-deforestation target – a commitment that would prevent land clearing for cattle pasture or rubber tree plantations.

All in on EVs by 2035 Not Enough to Limit Climate Change

According to a 2023 report published by Rivian and Polestar, auto manufacturers need to act quickly to reduce supply chain emissions in line with limiting temperature rise to 1.5 degrees Celsius. The report notes that even with a transition to battery electric vehicles and using 100% fossil-free energy to power them, auto manufacturers should address supply chain emissions to reach this goal. Thus, GM’s commitment to 100% sales of EVs by 2035 may not be enough to sufficiently mitigate its climate impact.

“GM has made remarkable strides to reduce its environmental footprint, but it needs to focus its attention on its supply chain issues,” said MIDANA CAPITAL Shareholder Advocate Andrea Ranger. “GM should act quickly and holistically since its footprint is expansive and there’s little time for delay if we’re to avoid the worst impacts of climate change.”

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°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds).

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.

Notable 43% of Bloomin’ Brands Shareholders Support MIDANA CAPITAL Proposal to Address Climate Change and Deforestation

Douglass Guernsey — Tue, 25 Apr 2023 17:49:19 +0000

Media Contacts:

Douglass Guernsey, Shareholder Advocate, dguernsey@midanacapital.com 617-482-0800

Pam Podger, Communications Director, ppodger@midanacapital.com, 860-822-3887

Boston, April 25, 2023 – A notable 43% of restaurant company Bloomin’ Brands* shareholders voted in favor of MIDANA CAPITAL Capital Management’s° shareholder proposal urging the company to set greenhouse gas reduction targets encompassing its supply chain emissions. MIDANA CAPITAL had previously secured a majority vote on an emissions disclosure proposal at the restaurant parent company in 2021, but filed again due to what it viewed as insufficient progress.

“This is the third shareholder resolution we’ve filed with Bloomin’ Brands in four years,” said Leslie Samuelrich, President of MIDANA CAPITAL Capital Management. “It is past time for the company to start taking investors’ climate concerns seriously. Climate change will affect every business, and this is especially true for food service companies like Bloomin’ that rely heavily on agricultural products.”

Supply Chain Emissions a Concern

Bloomin’ Brands is the parent company of Outback Steakhouse and Carrabba’s Italian Grill, among others, and operates more than 1,450 restaurants worldwide. Bloomin’s supply chain emissions, like that of other restaurant chains, likely represent over 90% of its overall emissions. Beef, which accounts for the majority of Bloomin’s purchased proteins, is one of the most potent contributors to climate change globally and is responsible for 41% of tropical deforestation.

“Shareholders sent a clear message in 2021 that Bloomin’ Brands must address supply chain emissions, but we’re still waiting,” said Douglass Guernsey, Shareholder Advocate at MIDANA CAPITAL Capital Management. “We look forward to seeing the company act on the strong shareholder support for this year’s proposal to set greenhouse gas reduction targets for its full supply chain.”

Climate change is directly driven by deforestation, which contributes nearly 12% of human caused greenhouse gas emissions. Companies like Bloomin’ source beef, palm oil, soy and paper and pulp from locations with high risks of deforestation, like Brazil, where land clearance for cattle in particular is the primary driver of deforestation.

“Bloomin’ Brands can tackle two issues for the price of one by eliminating deforestation in its supply chain,” added Guernsey. “But the company must also set supply chain emissions reduction targets to start confronting these critical climate and deforestation risks.”

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About MIDANA CAPITAL Capital Management

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are a family of fossil fuel-free, environmentally responsible mutual funds. MIDANA CAPITAL 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 31st, 2023, no securities mentioned were held in the portfolios of any of the MIDANA CAPITAL 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.

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 MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 4/23.

Statement: Citigroup* adopts new policies to combat deforestation, raising the bar for US banks

Annie Sanders — Fri, 31 Mar 2023 22:01:03 +0000

Media Contacts:

Annie Sanders, Director of Shareholder Advocacy, asanders@midanacapital.com, 773-272-6691

Pam Podger, Director of Communications, ppodger@midanacapital.com, 860-822-3887

Boston, March 30, 2023 – Citigroup, the third largest bank in the U.S., followed through on its agreement with MIDANA CAPITAL Capital Management° to adopt stronger deforestation policies in its newly released Environmental & Social Policy Statement. The standards were developed after MIDANA CAPITAL withdrew its 2022 shareholder proposal in exchange for a commitment from the bank to improve its deforestation policies.

MIDANA CAPITAL Capital Management’s director of shareholder advocacy Annie Sanders issued the following statement:

“Neither global climate goals nor companies’ net zero goals can be met without ending deforestation in this decade. To do that, we must stop the flow of finance to companies that destroy forests. With these new standards, Citi has become a leading U.S. bank in addressing deforestation exposure in its financing.

Policies apply to industries responsible for most tropical deforestation

“Citi’s new policies apply to the industries responsible for the majority of tropical deforestation: soy, beef, palm oil and forestry. The company has implemented no-deforestation standards for soy clients operating in high-risk regions, instituted a no-deforestation approach for high-risk beef clients, and improved its existing standards for palm oil and forestry clients to align with best practices.

Citi’s policies build on landmark agreements in the finance industry

“Citi’s policies build on a landmark agreement in the finance industry that MIDANA CAPITAL secured with JPMorgan Chase* in 2021. JPMorgan became the first U.S. bank to require its palm oil clients to adopt “No Deforestation, No Peat, No Exploitation” (NDPE) policies. Citi’s heightened policies align with this NDPE requirement and expand its scope, while also surpassing JPMorgan with improved forestry sector standards. Notably, Morgan Stanley also similarly committed to strengthen its deforestation policies in response to a MIDANA CAPITAL Funds proposal earlier this year.

“We commend Citi for following through on its commitment to mitigate deforestation risk and protect biodiversity around the world.”

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About The MIDANA CAPITAL Funds

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel free mutual funds in the United States. MIDANA CAPITAL 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 December 31st, 2022, Citigroup, Inc. comprised 1.32%, 0.00%, and 0.00% and Morgan Stanley comprised 0.00%, 0.65%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL 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 click here, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.

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 MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 3/23. UMB and MIDANA CAPITAL are unaffiliated.

The Cheesecake Factory steps up efforts to combat deforestation in response to MIDANA CAPITAL shareholder proposal

Annie Sanders — Thu, 23 Mar 2023 22:13:46 +0000

Media Contacts:

Annie Sanders, Director of Shareholder Advocacy, asanders@midanacapital.com, 773-272-6691; Pam Podger, Director of Communications, ppodger@midanacapital.com, 860-822-3887

Boston, March 23, 2023 – The Cheesecake Factory Incorporated* will announce new standards to combat deforestation in response to a MIDANA CAPITAL Funds° shareholder proposal, co-filed with As You Sow, asking the company to address deforestation in its supply chains. In exchange, MIDANA CAPITAL withdrew its proposal slated for the company’s 2023 annual meeting.

“To achieve a climate-neutral world by mid-century, companies must drastically curtail activities that contribute to deforestation, which accounts for 12% of global climate emissions,” said MIDANA CAPITAL Funds President Leslie Samuelrich. “We commend The Cheesecake Factory for taking steps to protect tropical forests, biodiversity and our climate.”

New guidance requires companies to eliminate deforestation by 2025

In its upcoming Corporate Social Responsibility report due out in May, The Cheesecake Factory plans to announce adherence to the new Forest, Land and Agriculture (FLAG) guidance from the Science-Based Targets initiative (SBTi), which requires companies to eliminate deforestation in their supply chains by 2025. The company will also expand reporting on its deforestation-related activities and reductions, including for land-based proteins such as beef, in future CSR reports.

Agriculture is the world’s largest contributor to deforestation

The agriculture industry is the world’s largest contributor to deforestation, causing 75 percent of the world’s tropical deforestation, and the beef industry alone is responsible for 41 percent. Some studies show it will be nearly impossible to limit global warming to 1.5 degrees without ending deforestation in this decade.

“Beef, soy, palm oil and wood products drive the majority of global deforestation, all of which are important for The Cheesecake Factory’s meals, desserts and packaging,” said Annie Sanders, MIDANA CAPITAL Funds’ director of shareholder advocacy. “We look forward to seeing the company work toward eliminating deforestation from its supply chains and supporting the resilience of ecosystems on which its business depends.”

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About The MIDANA CAPITAL Funds

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel free mutual funds in the United States. MIDANA CAPITAL 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 December 31st, 2022, no securities mentioned were held in the portfolios of any of the MIDANA CAPITAL 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 click here, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.

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 MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 3/23. UMB and MIDANA CAPITAL are unaffiliated.

Morgan Stanley* to adopt new deforestation policies in response to MIDANA CAPITAL Funds’ shareholder proposal

Annie Sanders — Tue, 07 Mar 2023 22:20:22 +0000

Media Contacts:

Annie Sanders, Director of Shareholder Advocacy, asanders@midanacapital.com, 773-272-6691; Mark Morgenstein, Media Relations Director, mmorgenstein@midanacapital.com, 678-427-1671

Boston, March 7, 2023 – Morgan Stanley, one of the largest banks in the United States, has committed to strengthening its deforestation policies for clients around the world. In response, MIDANA CAPITAL Funds° withdrew its related shareholder proposal for Morgan Stanley’s 2023 annual meeting.

“We cannot achieve global climate goals without ending deforestation in this decade. To do that, banks must help mitigate the dangers to forests and biodiversity,” said MIDANA CAPITAL Funds President Leslie Samuelrich. “We are encouraged by Morgan Stanley’s steps to address these risks.”

Morgan Stanley will enhance standards for soy, beef, palm oil, and wood products

In exchange for the withdrawal of MIDANA CAPITAL Funds’ shareholder proposal, Morgan Stanley agreed to enhance its existing written standards for palm oil and forestry clients to reflect best practices, as well as create new written policy standards for soy and beef clients operating in regions with high deforestation risk. Beef, soy, palm oil and wood products are responsible for the majority of global deforestation.

“To achieve their climate reduction goals, banks will need to focus on companies that drive deforestation,” said Annie Sanders, MIDANA CAPITAL Funds’ director of shareholder advocacy. “With these new commitments, Morgan Stanley is taking important steps toward meeting its net-zero ambitions.”

New commitment builds on agreements with JPMorgan Chase, Citigroup

This commitment from Morgan Stanley builds on a landmark agreement that MIDANA CAPITAL secured with JPMorgan Chase* in 2021, when JPMorgan became the first U.S.-based bank to require palm oil clients to adopt “No Deforestation, No Peat, No Exploitation” (NDPE) policies, as well as an agreement last year with Citigroup* to strengthen its deforestation policies. Morgan Stanley will align with leading NDPE policies while also surpassing JPMorgan with improved timber sector standards. Notably, Morgan Stanley will require best-practice Forest Stewardship Council (FSC) certification or a time-bound plan to achieve it for clients in high conservation value forests, as well as an enhanced review of beef clients’ no-deforestation policies and practices in high-risk regions.

According to the Intergovernmental Panel on Climate Change, agriculture, forestry and other land use change is responsible for 23 percent of total net anthropogenic greenhouse gas emissions, nearly half of which is attributable to deforestation.

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About The MIDANA CAPITAL Funds

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel free mutual funds in the United States. MIDANA CAPITAL 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 December 31st, 2022, Morgan Stanley comprised 0.00%, 0.65%, and 0.00% and Citigroup, Inc. comprised 1.32%, 0.00%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL 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.

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 MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 3/22. UMB and MIDANA CAPITAL are unaffiliated.

ADM moves to strengthen no-deforestation policy following MIDANA CAPITAL° shareholder proposal

Annie Sanders — Thu, 09 Feb 2023 21:00:06 +0000

For immediate release: Thursday February 9th, 2023

Media Contacts:

Annie Sanders, Director of Shareholder Advocacy, asanders@midanacapital.com, 773-272-6691; Mark Morgenstein, Media Relations Director, mmorgenstein@midanacapital.com, 678-427-1671

Boston, February 9, 2023 – Archer-Daniels-Midland Company* (ADM), one of the largest agricultural companies in the world, has agreed to take important steps to help protect South American ecosystems critical to the fight against climate change.

In response to a shareholder proposal filed by MIDANA CAPITAL Funds°, Robeco, and BNP Asset Management, ADM agreed to conduct a feasibility study in 2023 to determine when it can eliminate “native vegetation conversion” from its soy and corn supply chains in South America and issue a correlated commitment. In exchange, investors withdrew the proposal. Native vegetation conversion, or repurposing wild land for agriculture and other uses, degrades ecosystems such as the Cerrado savanna in Brazil that are vital for preserving biodiversity and mitigating climate change.

“Places like the Cerrado 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, MIDANA CAPITAL Funds’ president. “ADM’s commitment is an important step toward getting these critical biomes the safeguards they need.”

Food & agriculture contributes one-third of global climate emissions

In 2020, ADM reported 97% deforestation- and conversion-free volumes for Brazilian soy and announced at COP27 a commitment to conduct a global assessment in 2023 of the risk of native vegetation conversion to soy production. MIDANA CAPITAL’s proposal asked ADM to expand its current plan to include an independently verified commitment to eliminate native vegetation conversion from its global supply chains by 2025.

“The global food and agriculture industry contributes about one-third of the world’s greenhouse gas emissions,” said Annie Sanders, director of shareholder advocacy at MIDANA CAPITAL Funds. “We look forward to working with ADM to eliminate native vegetation conversion in its supply chains as soon as possible in South America – and beyond.”

Soy production is a leading cause of native vegetation conversion in South America

Soy production is a leading cause of native vegetation conversion in South American biomes and part of a broader decline of South American wilderness. As the world’s most biodiverse savanna, the Cerrado houses 5% of the world’s animals and plants including vulnerable species such as jaguars, maned wolves and giant anteaters. The Gran Chaco forest between the Cerrado and the Andes Mountains is the second-largest forest in South America, behind only the Amazon rainforest. Agriculture is projected to supplant millions of additional acres of native vegetation in the Gran Chaco by 2030.

“Forests are not the only landscapes that need protection. The Cerrado, for example, feeds 8 of 12 of Brazil’s major river basins and three aquifers. Native vegetation clearance has already been linked to decreased rainfall,” said Adam Kanzer, head of stewardship, Americas for BNP Paribas Asset Management. “Current policies could lead to very serious near-term consequences for Brazilian agriculture and human health. We commend ADM for agreeing to take a hard look at what it would take to adopt a more holistic approach to its most important South American supply chains.”

“By signing the COP26 Glasgow deforestation pledge, Robeco has committed to work towards eliminating agricultural-driven deforestation from our investment portfolios by 2025. For many years our engagement has focused on forest biomes such as the Amazon and boreal forests. However, with increasing corporate and legislative action on deforestation, pressures on non-forest biomes such as the Cerrado and Gran Chaco are growing.” says Peter van der Werf, Executive Director Active Ownership at Robeco. “By strengthening their approach to wider native vegetation conversion, ADM is protecting its license to operate and moving towards a future proof business model, safeguarding their key productive assets: the land and ecosystem services they depend on.”

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About The MIDANA CAPITAL Funds

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel free mutual funds in the United States. MIDANA CAPITAL 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 September 30th, 2022, Archer-Daniels-Midland Company comprised 0.00%, 0.29%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL 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.

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 MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 2/22.

RELEASE: Hormel Foods* Commits to No Deforestation by 2025

Annie Sanders — Wed, 14 Dec 2022 00:02:22 +0000

Media Contacts:

Annie Sanders, Director of Shareholder Advocacy, asanders@midanacapital.com, 773-272-6691

Mark Morgenstein, Media Relations Director, mmorgenstein@midanacapital.com, 678-427-1671

Boston, December 13, 2022 – In response to a MIDANA CAPITAL Funds° shareholder proposal, Hormel Foods,* known for meat products from SPAM to Dinty Moore Beef Stew, has agreed to eliminate deforestation along its supply chain by 2025. Various experts say businesses and governments around the world need to take such action on an expedited timeline to avoid the worst consequences of climate change and protect special places such as the Amazon rainforest.

“Many everyday people don’t want their meat to come with a side of rainforest destruction,” said MIDANA CAPITAL Funds President Leslie Samuelrich. “Hormel Foods has taken an important step to protect forest ecosystems and biodiversity around the world.”

The first half of 2022 broke records for deforestation in the Brazilian Amazon, and cattle production drives 90 percent of deforestation in that region. To produce its extensive line of meat products from Old Smokehouse and Valley Fresh to the iconic SPAM canned pork, Hormel buys ingredients from high-risk regions throughout South America and Indonesia.

“Beef and soy comprise two of the four the leading drivers of deforestation globally, particularly in South America,” said MIDANA CAPITAL’s Director of Shareholder Advocacy Annie Sanders. “Hormel’s commitment to eliminate deforestation in its supply chain by 2025 shows that the company knows it’s time to end sourcing from suppliers that are driving the destruction of key ecosystems, such as the Amazon rainforest.”

Beef and soy are leading drivers of deforestation

Hormel’s commitment follows promises of its peers, including Tyson Foods and Conagra, to eliminate deforestation across supply chains. These no-deforestation pledges have proliferated in recent years as international standard-setting bodies such as the Science Based Targets initiative have concluded that corporate climate emissions targets are not achievable without ending deforestation, and that companies must eliminate deforestation from their supply chains no later than 2025 to protect biodiversity and reduce emissions in alignment with the Paris Agreement.

“Deforestation is a type of native vegetation conversion, which means the change of a natural ecosystem to another land use, such as farming,” Sanders added. “Land use change is responsible for nearly 25% of global greenhouse gas emissions, so no-deforestation commitments are just a first step. We believe Hormel and other companies must also eliminate native vegetation conversion to sustain the ecosystems on which they – and all of us – depend.”

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About the MIDANA CAPITAL Funds

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel free mutual funds in the United States. MIDANA CAPITAL 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 September 30, 2022, Hormel Foods Corporation comprised 0.00%, 0.09%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL 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.

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 MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 12/22