Explanation

ESG:          

Environment – striving for protection of all God’s creation, especially through a clean energy future        

Social – Promoting human and civil rights through justice for all humanity        

Governance – promoting equity in the workplace and diversity among corporate leadership (gender and ethnicity)

(See generally General Convention resolution 2022-A073, appended at the end of this explanation.) Using ESG promotes responsible investing that aligns with the Church’s values while also assuring sound financial returns.  Divestment has been a tool of the Church for decades, as has been affirmative investment.  The Church has used these tools on issues like tobacco, fossil fuels, private prisons, military contractors, and South Africa apartheid, and other instances where human rights have been or are being denied and/or routinely ignored, such as in the Occupied Palestinian Territories, Sudan, and Saudi Arabia. Other tools include boycotts—such such as those of Nestle infant formula (1979) and of oil companies doing business in South Africa (1988)—and advocating with government for government action, such as imposing government financial sanctions on South Africa (which ultimately led to the end of apartheid).   In the United States, some federal, state and local legislatures and agencies, and attorneys general, have sought recently to ban or stifle use of ESG by government investors.  These efforts, while not aimed directly at the Church, threaten the Church’s ability to continue its efforts, now carried on over many years, advocating for applying ethical standards by all investors, including faith-based investors.  The Freedom to Invest campaign, launched by CERES and other responsible investors, is pushing back against this dangerous threat. The Church can influence the public to reject such efforts to suppress ESG.

Previous General Convention resolution on this topic: 2022-A073 Encouraging Faithful, Ethical, and Responsible Investing  

Resolved, That the 80th General Convention affirm to all institutional investors across the Church the value and importance of faithful and ethical investing (defined as investing institutional assets consistently with the Church’s faith and teachings and the Church’s mission) and responsible investing (defined as addressing, ethical concerns for social, environmental and governance matters, including climate change and human rights); and be it further

Resolved, That all institutional investors across The Episcopal Church be encouraged to adopt faithful and ethically responsible investing for their investment programs and portfolios and to manage their investment assets using the following elements of ethically responsible investing: ethical and theological guidelines for investment selection and management; shareholder engagement, including voting proxies; and investing for responsible social and environmental outcomes as well as for financial return. 

 

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