A028 Support for Freedom to Consider Ethical Issues in Investing
Resolved, the House of Deputies concurring,
That the 81st General Convention reaffirm its commitment to and encouragement across the Church of faithful and ethically responsible investing addressing ethical concerns for social, environmental and governance matters, including climate change and human rights, commonly referred to as ESG (Environment, Social, Governance) investing, as set forth in General Convention resolution 2022-A073; and be it further
Resolved, That General Convention reaffirm the Episcopal Church's long practice of aligning its investments with the values of Jesus Christ as expressed in General Convention and Executive Council resolutions, through such means as corporate engagement through dialogue, filing and voting on shareholder resolutions, voting in director elections, and divestment and affirmative investment, including ESG (Environment, Social, Governance) investing, and, more broadly, participation in boycotts and sanctions campaigns, as with South Africa, all in order to help carry out the Church’s commitment to environmental sustainability, justice, and equal rights at home and globally, while generating positive financial returns; and be it further
Resolved, That General Convention affirm the use of ESG investing by Executive Council’s Investment Committee in its management of the investments of the Domestic and Foreign Missionary Society (DFMS), and affirm the work of the Executive Council’s Committee on Corporate Social Responsibility (CCSR) in advocating for corporate engagement through dialogue, filing and voting on shareholder resolutions, voting in director elections, and divestment and affirmative investment, including ESG (Environment, Social, Governance) investing, as CCSR supports General Convention and Executive Council in carrying out their responsibilities for the Church's investments; and be it further Resolved, that General Convention affirm and support the Church’s advocacy for the right of all investors, whether or not they are guided by faith commitments, to consider all financial and other factors relevant to investing, to use ethical criteria, including ESG investing, to assess investment risks and opportunities, and to engage with companies, including through dialogue and voting, in making responsible investments; and be it further
Resolved, That General Convention lament, condemn and oppose proposals and actions of some federal, state and local legislatures and agencies, and attorneys general, to suppress and outlaw the consideration of all financial and other factors relevant to investing and the use of ethical criteria, including ESG investing, to assess investment risks and opportunities; and be it further
Resolved, That General Convention encourage the Church to advocate publicly for the freedom to invest responsibly and against legislation that would prohibit divestment, or ESG investing, or consideration of all environmental, social and governance factors relevant to responsible investment decisionmaking; and be it further
Resolved, That General Convention encourage active support for the rights of shareholders to raise important issues through the proxy resolution and voting process, including support for the authority of the United States Securities and Exchange Commission to rule on shareholders’ access to corporate ballots; and be it further
Resolved, That General Convention direct CCSR, as part of its advocacy of responsible investing, to continue its ongoing engagement, divestment and investment work with companies that contribute to and/or benefit from human rights violations and/or environmental exploitation in areas of conflict and high risk, such as Sudan, Myanmar, the Occupied Palestinian Territories, and elsewhere; and be it further
Resolved, That General Convention commend CCSR’s 53-year record of promoting corporate responsibility and encourage all dioceses and congregations to view The CCSR Story video (currently linked at https://www.episcopalchurch.org/video/the-ccsr-story/) that celebrates our Church’s witness, and to share the video with their people.
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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