The Investment Committee of the Board of Trustees of the Pension Boards–United Church of Christ, Inc. (PBUCC), recently voted to eliminate separately-managed (non-commingled) investments in oil sands and thermal coal.
The Committee's action is based on socially responsible investment guidelines in PBUCC's Investment Policy, which encourage the application of environmental, social, and governance (ESG) factors in analyzing investment choices, particularly where investments with the same or better risk-to-reward characteristics are available. PBUCC has invested over $20 million in renewable energy bonds and private equity infrastructure improvement over the past year.
"An environmental benefit results in that the burning of thermal coal accounts for up to 60% of the total carbon emissions released, which contributes to the urgent problem of global warming and climate change," said the Rev. Rick Walters, Director of Corporate Social Responsibility for PBUCC.
"Asking our managers to eliminate companies that derive a significant amount of their revenue or their total business from thermal coal and tar sands, based on reliable third-party data from Sustainalytics, not only makes our portfolio stronger from an investment perspective, it also makes a positive move toward investment in the best of class within the energy sector," added Pension Boards' Chief Investment Officer David Klassen.
PBUCC is a founding member of the Interfaith Center for Corporate Responsibility and has an active program of social justice advocacy and faith based initiatives for social change through proclamation and leverage of assets.
PBUCC – operating at the intersection of Faith and Finance