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Economic Leverage Toward Peace

A resolution was passed in 2005 at the Twenty-Fifth General Synod of the United Church of Christ entitled "Concerning Use of Economic Leverage in Promoting Peace in the Middle East." One of the provisions of the resolution calls upon the church to "make positive contributions to groups and partners committed to the non-violent resolution of the conflict."

The Pension Boards (PBUCC) has been engaged in this call through its investment in the private equity fund, Siraj Palestinian Fund LP1, in which PBUCC holds a .67% interest. PBUCC's investment in Siraj does not include pension or benefit plan funds.

The Siraj Palestinian Fund consists of direct equity investments in viable start-up, distressed, and relatively large enterprises in Palestine. Siraj was named the "Best Asset Manager in Palestine" in 2013, and has created over 500 new Palestinian jobs since 2011.

Siraj's investments are spurring economic growth, job creation, and innovation in Palestine. More detailed information about the impact of this investment may be found in a May 14, 2013 memorandum to Executive Council from PBUCC President/CEO Michael A. Downs. (Please also see the August 2013 Forbes magazine article, "Peace Through Profits? Inside The Secret Tech Ventures That Are Reshaping The Israeli-Arab-Palestinian World.")

Economic leverage for social transformation has been the goal of PBUCC's corporate social responsibility ministry for over 42 years, and continues to make a difference through multiple strategies called for by General Synod resolutions. We work together with other activists and UCC mission partners in a comprehensive witness to peace in the Middle East.

Proxy Voting

SP proxyvote

As faith-based institutional investors, the Pension Boards utilizes the CSR Office to encourage responsible corporate citizenship by the companies in which the Pension Boards invests. We vote companies' ballots using our proxy voting guidelines, which promote equitable pay structures, global and human rights, and other best practices. This work is done in the interest of safeguarding companies' financial performance and enhancing the long-term sustainability of companies' operations, thereby enhancing our investments.

The Pension Boards maintains proxy voting guidelines to ensure that we consistently use the "power of the proxy" to demonstrate the faithful stewardship of our investments. The social issues proxy voting guidelines encompass our stance on the environment, labor issues and equality. Our corporate governance guidelines include how we vote stock issues, board of director composition, and the other business items that appear on companies' annual meeting ballots.

Proxy Vote Disclosure

Proxy Voting Guidelines

U.S. Socially Responsible Investment Voting Guidelines

International Socially Responsible Investment Voting Guidelines

Exclusionary Screening

Exclusionary screening is the practice of excluding companies from a portfolio based on non-financial criteria. This is a primary way for faith-based investors to ensure that their profits are made in sectors and companies whose work is in line with the beliefs and policies of the Church.

The Pension Boards' Screening Policy

In selecting among investment alternatives which are suitable for the Pension Boards' portfolio based on the Pension Boards' Investment Guidelines, investments should be avoided in companies or industries that the Investment Committee has determined adversely affect human rights, contribute to the denial of such rights or threaten the quality of human life or of the environment, provided that the investment manager is able to identify alternatives with the same or superior reward/risk relationships. The Investment Committee has decided that companies in the U.S. firearms, gambling, tobacco, and thermal coal and tar sands industries should be avoided to the extent possible within the above policy.