Church of England confirms fossil fuel divestment

The Church Commissioners and the Church of England Pensions Board have announced a retraction of investment of £12 million in thermal coal and tar sands. As such with immediate effect, neither body will invest in companies which receive more than 10% of its revenues from the extraction of thermal coal or the production of oil from tar sands.

The announcement comes as a result of the adoption of the new climate change policy recommended by the Church’s Ethical Investment Advisory Group.

Rev Canon Professor Richard Burridge, Deputy Chair of the EIAG and lead on the EIAG's theological process, said: "Climate change is already a reality. From an ethical perspective the focus of the investing bodies must be on assisting the transition to a low carbon economy. The Church has a moral responsibility to speak and act on both environmental stewardship and justice for the world's poor who are most vulnerable to climate change. This responsibility encompasses not only the Church's own work to reduce our own carbon footprint, but also how the Church's money is invested and how we engage with companies on this vital issue."??Bishop Nick Holtam, the lead Bishop on the environment at the Church of England, said: "I very much welcome the policy of the national investing bodies and the Ethical Investment Advisory Group of the Church of England in response to the motion that came to General Synod from Southwark Diocese in February 2014. 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.??Climate change is the most pressing moral issue in our world. Change is happening rapidly, I therefore particularly welcome the commitment to regularly review the policy recommendations in the light of our knowledge and experience."??Tom Joy, Director of Investments at the Church Commissioners, said: "We want to be at the forefront of institutional investors seeking to address the challenge of energy transition. This will predominantly be achieved through strategic engagement, as seen by recent shareholder resolutions at Shell and BP. But this new policy rightly goes beyond to incorporate investment exclusions for companies focused on the highest carbon fossil fuels where we do not think engagement would be productive."??The focus of the new policy is to engage with companies which hold NIB shareholders, companies that make a significant contribution to reducing global greenhouse gas emissions.

Pierre Jameson, Chief Investment Officer of the Church of England Pensions Board said: "We want a global policy framework that incentivises a reduction in carbon emissions and the transition to a low carbon economy. We need governments meeting in Paris at the end of this year to agree long term global emissions targets with a clear pathway to a low carbon future."? James Bevan, Chief Investment Officer at CCLA, which is majority owned by the CBF Church of England Investment Fund, said: "We have been carefully analysing the investment risks associated with climate change. Our flagship multi-asset funds are underweight fossil fuels, and we currently have similar sized allocations to low carbon investments like energy efficiency and green infrastructure."? Edward Mason, Head of Responsible Investment for the Church Commissioners, said: "This is one of the most comprehensive policy frameworks on climate change adopted by any institutional investor. This is not about divestment v engagement. This policy talks to how institutional investors committed to ethical and responsible investment can integrate climate change considerations into their thinking and investment strategy. This is an evolving space. We want to continue to collaborate with others to play our part in the transition towards a low carbon economy and low carbon investing."