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CLIMATE CHANGE POLICY OF THE
NATIONAL INVESTING BODIES
PRESENTATION
Policy Development and Context
Mr James Featherby
Chair of the Ethical Investment Advisory Group
Biblical and Theological Reflections
The Revd Canon Professor Richard Burridge FKC
Deputy Chair of the Ethical Investment Advisory Group
Policy Implementation by the National Investing
Bodies (NIBs)
Dr Jonathan Spencer
Chairman of the Church of England Pensions Board
POLICY DEVELOPMENT
Biblical:
Reflected in depth on biblical and
theological position
Evidential: What does the science say
Pragmatic: In an imperfect world, what’s the best
ethical response for the NIBs with their
ability to act and speak both as part of the
witness and mission of the Church, and as
significant institutional investors
UNDERPINNING RATIONALE
Transition: Urgent but orderly transition to a low carbon
economy. Fossil fuels are not tobacco. We don’t
need tobacco. We do need energy
Influence: Right to disinvest from most polluting fuels, but
most significant additional ethical contribution is
to engage both companies and policy makers
Flexibility: Clear direction of travel but responsive to
changing facts on ground. Mistake to be overly
prescriptive
KEY RECOMMENDATIONS
• Disinvestment from thermal coal and tar sands
• Intensive engagement with major fossil fuel producers and users
• Threat of divestment from those unresponsive to need for transition
• Increased public policy engagement
• Greater investor collaboration
• Increased investment in sustainable strategies that meet risk/return
criteria
• Support development of international performance metrics
• Integrate in stock selection and asset manager appointments
• Monitor and report annually
REACTION
‘I very much welcome the policy of the national investing bodies and
the Ethical Investment Advisory Group…It is thoughtful and has been
carefully considered, producing a range of ways to engage with issues
of the Church’s finance in relation to Climate Change. It marks the start
of a process of divestment as well as engagement with fossil fuel
companies and better aligns the Church’s investment practice with its
belief, theology and practice.’
Bishop Nick Holtam
THE BISHOP OF SALISBURY AND LEAD BISHOP ON THE ENVIRONMENT AT
THE CHURCH OF ENGLAND
‘The Church of England’s investment policy, supporting the transition
to a low carbon economy, is remarkably thoughtful and expressive of
investor integrity. It is also very encouraging to see that the climate
negotiations are being discussed by the upcoming General Synod.’
Ms Christiana Figueres
EXECUTIVE SECRETARY, UNITED NATIONS FRAMEWORK
CONVENTION ON CLIMATE CHANGE (UNFCC)
‘Fine and wise leadership.’
Professor Lord Nick Stern
CHAIR OF THE LONDON SCHOOL OF ECONOMICS GRANTHAM RESEARCH
INSTITUTE ON CLIMATE CHANGE
BIBLICAL AND THEOLOGICAL REFLECTIONS:
THE REVD CANON PROFESSOR RICHARD BURRIDGE FKC
DEPUTY CHAIR
ETHICAL INVESTMENT ADVISORY GROUP
BIBLICAL AND THEOLOGICAL REFLECTIONS
“Humankind has a divinely mandated responsibility for
the physical world, for its creatures and for one
another, especially the weakest and least”
(Policy Exec Summary (i), p. 5)
We undertook an extensive period of reflection upon the biblical
material, theological considerations, the history of the church and
the current policies and attitudes from other churches.
See the Climate Change Policy and Advisory Paper from EIAG,
GS Misc 1110, Sections 2 and 3, pages 10-15.
1
Gen. 1.31
THE DOCTRINE OF CREATION
“God saw all he had made and it was very good.”
Gen. 2.15, 20 Human beings to ‘till it and keep it’, naming the animals.
Malawi: Looking across Chikwawa province towards Mozambique.
2
HUMAN SIN AND ABUSE OF CREATION
Gen 3: the story of the Fall; ‘dominion’ or domination? (P Gooder Bible Studies)
Industrial development and climate change have changed the rainfall pattern.
Government logging contracts; individual tree cutting for charcoal: drought & floods
3
ELECTION, INCARNATION, ATONEMENT
God does not give up on his world:
Saves people (Noah, Gen 8-9).
The call and election of Israel.
Enters into our world in the incarnation
of Jesus Christ (John. 1.1-14).
In Christ, God reconciled the world to
himself; new creation in Christ; passes
ministry onto us (2 Cor. 5.17-18).
Crucified Jesus and the Risen Lord,
Lilongwe Hospital Chapel, Malawi
4
LIVING ‘BETWEEN THE TIMES’
Ethics between the resurrection and
the final judgement of all – pot and
fire often symbols in the prophets.
Eager longing and groaning of
creation for consummation: Rom. 8
Time to wake from sleep Rom.13.11
Mitigate damage and enable poor
and vulnerable to develop.
Fuel efficient cooking stoves to save
wood and feed many people.
5 ROLE OF STEWARDSHIP,
BUSINESS AND CREATIVITY
Report reflects on simpler lifestyles.
Call to be ‘co-creators’ with God.
Need for creativity in development
Shift to low carbon economy.
Renewable energy sources.
Solar panels being used in villages
to recharge mobile phones for text
warnings of high water & floods.
Challenge is to solve storage issue.
6
ALL HANDS TO THE PUMP!
7
THE CHRISTIAN HOPE
Christian ethics about
aspiring to high demands of
Jesus’ teaching while
following his open example.
Inevitable tension of the
‘now’ and the ‘not yet’.
Bible and theology drives
our mixture of divestment
and engagement – but
“GOD CAN DO ANYTHING!”
DR JONATHAN SPENCER
CHAIRMAN
CHURCH OF ENGLAND PENSIONS BOARD
NIBs AMBITION AND COMMITMENT
Ambition:
“To be at the forefront of institutional investors… addressing the
challenge of the transition to a low carbon economy”
Commitment:
Recognition of our responsibility to do what we can, as church investors
informed by the witness and mission of the church, to support the
transition to a low carbon two degree world. As custodians of the funds
and stewards of endowments we have a responsibility to take a long term
view, in keeping with our fiduciary responsibilities to our beneficiaries.
IMPLEMENTATION: FOUR LEVERS
• Disinvestment
• Investment
• Engagement with companies
• Engagement with policy makers
LEVER 1: DISINVESTMENT
Policy announced on 1st May
Commissioners and Pensions Board made an immediate
disinvestment of £12 million of holdings from companies
generating over 10% of income from thermal coal and oil
sands
Further disinvestments
Option to make further disinvestments from companies that do
not respond to engagement
LEVER 2: INVESTMENT
Pensions Board: 6% (or currently £90m) of its growth assets in core, socially
useful infrastructure projects. These may include renewable energy projects
and investments in networks to make them suitable for locally produced,
renewable energy.
Commissioners: £299 million of the Commissioners’ investment portfolio
(approximately 4.5%) qualifies for inclusion in the Low Carbon Investment
Registry, includes investments such as the £253 million sustainably certified
forestry portfolio.
£312.5m, with Generation Investment Management
CBF Church Funds: 2.5% of the capital value CBF Church of England
Investment Fund dedicated to investments in renewable energy infrastructure,
energy efficiency, and sustainable timber.
LEVER 3: ENGAGEMENT WITH COMPANIES
It is clear that we are uniquely placed as the Church of England National
Investing Bodies to seek to influence the way companies respond to
climate change. To achieve this we engage, using the moral power the
Church gives us, together with the entry ticket our shareholdings give us.
Engagement:
• Development of detailed Engagement Framework setting Aims and
Objectives to build on success of Aiming for A shareholder resolutions
• Review of engagement capabilities with view to increasing
• Partnerships such as the ecumenical Church Investors Group (CIG)
LEVER 4: ENGAGEMENT WITH POLICY MAKERS
The most effective and efficient way of mitigating climate change is
through internationally coordinated public policy.
Engagement:
• Engagement as an investor in the public policy debate
• Support increased publicly funded R and D into clean energy
• Financing of a new position at the Institutional Investors Group on
Climate Change (IIGCC)
• Working with other investors to support an agreement in Paris
“The Earth is the LORD’S and all that is in it
the world, and those who live in it;
for he had founded it on the seas,
and established it on the rivers.”
PSALM 24:1-2