Two major UK church investment organisations have welcomed a new code designed to encourage responsible investment.
The Central Finance Board of the Methodist Church (CFB) and its
sister organisation, Epworth Investment Management, have endorsed the
Financial Reporting Council’s Stewardship Code and signalled their
intention to become Code signatories.
Chief Executive Bill Seddon said: “Engagement and informed dialogue
with companies lies at the heart of our investment approach. A
Christian approach to investment focuses on our role as stewards. The
Stewardship Code provides a valuable context for enhancing the
responsibilities of ownership”.
However, some companies have encouraged Methodist, Anglican and other
church bodies to be more bold and justice-oriented in their investment
and divestment policies, citing oil companies as among those who should
be put under more financial pressure.
The CFB and Epworth say they both seek to invest in "well managed
companies that deliver sustainable growth to shareholders and which
operate to the highest standards of corporate governance and ethical
behaviour."
The CFB and Epworth also state that they wish to integrate engagement
with companies on financial, ethical, social, environmental and
governance performance as part of their investment decision making.
Both institutions already comply with the Code.
They are currently
reviewing the seven principles contained within the Stewardship Code and
will make a more informed statement of compliance in the near future.
Britain's major churches control investments worth in the region of
£12 billion.
This is a significant stake in the wider economy.
A
sizeable proportion of these funds is tied up in pensions, buildings and
salaries.
SIC: Ekklesia/UK