Methodist, Unitarian and Free Churches divest from fossil fuels

May 3rd, 2021

Source: Operation Noah

The Methodist, Unitarian and Free Churches have all voted to disinvest from fossil fuels...

At the online AGM of the General Assembly of Unitarian and Free Christian churches on 24th April, members voted overwhelmingly to disinvest from companies whose turnover is more than 10% from oil and gas.

The motion was proposed by Stephen Lingwood, pioneer minister in Cardiff. He said: "In the year of COP26 in Glasgow I've very happy that my denomination has made this commitment to help tackle the climate emergency. Divestment is one of the tools available to us to push the world towards a zero carbon future. My faith calls on me to love God, and to love my neighbour, and loving my global neighbour means making sure people in Pacific Island nations and elsewhere still have homes to live in. That will only happen if we keep global temperatures below a 1.5C rise."

Also speaking in the debate was Professor Geoff Levermore, a Unitarian and Nobel prize winning climate scientist. He said: "Some consider that we may already have gone past the tipping point with climate change, as the polar ice caps are losing ice so quickly now. Covid will be easier to solve than climate change and all countries need to respond, especially the developed ones. Fossil fuel companies, like water companies, should pay for the pollution of CO2 just as water companies pay for the sewage disposal."

The resolution requests that the General Assembly of Unitarian and Free Christian Churches does not invest in companies whose total turnover is more than 10% derived from the extraction and/or supply of fossil fuels, and that the divestment is fulfilled by 2025. It encourages Unitarian congregations, which are independent and autonomous, and other Unitarian funds to do the same.

The resolution builds on a long history of climate activism in the church, with previous agreements to tackle climate change and protect the environment going back to the 1970s. A number of Unitarian individuals and congregations have in recent years been actively involved in climate change campaigns such as Extinction Rebellion.

The General Assembly has £6.3m of investments, currently managed by Newton Investment Management.

On 30 April, the Central Finance Board of the Methodist Church announced that it has fully divested from fossil fuel companies, after selling its remaining shares in Shell and Equinor.

The decision followed advice received from the Methodist Church's Joint Advisory Committee on the Ethics of Investment (JACEI) earlier this month, that no oil and gas companies are currently aligned with the climate change targets set out by the 2015 Paris Agreement. The Central Finance Board divested from coal and tar sands in 2015.

The Methodist Church has sold almost £21m in shares in Shell, as well as selling around £2m of bonds in Norwegian oil company Equinor.

David Palmer, Chief Executive of the Central Finance of the Methodist Church, which oversees £1.3bn of investments, said: "The patience of the Church has run out." He added: "The pace of change across the oil and gas sector has been inadequate and we welcome the recommendation of JACEI to disinvest."

Revd Dr Stephen Wigley, Chair of JACEI, commented: "The Committee has determined that the slow pace of corporate change means that the oil and gas sector is failing to meet the targets set by the Paris Accord. Shell, along with its peers, is currently failing to play a substantial enough role in addressing the climate emergency."

The decision comes after the Methodist Conference and Methodist Council both supported resolutions on fossil fuel divestment last year.

The 2017 Methodist Conference passed a motion calling for divestment from any fossil fuel company that had 'not aligned their business investment plans with the Paris Agreement target of a global temperature rise well below 2 degrees' by the 2020 Conference.

The Central Finance Board of the Methodist Church previously announced in June 2020 that it would divest from BP and Total.

In the same month, 260 Methodists, including 114 ministers and former Presidents and Vice Presidents of the Methodist Conference, signed a letter calling for the Central Finance Board to complete divestment from all fossil fuel companies. The group highlighted recent Transition Pathway Initiative and Carbon Tracker analysis, showing that no oil and gas companies had aligned their business investment plans with the Paris Agreement goals.

The Methodist Council passed a resolution on divestment in October 2020, after the Methodist Conference: "The Council supports the request that JACEI recommends that the Central Finance Board… disinvests before the 2021 Conference from all oil and gas companies which are not currently aligned with the Paris Agreement target of a global temperature rise well below 2 degrees." The issue had been referred to Council by the Methodist Conference in July 2020.

Michael Pryke, Chair of the Methodist Zero Carbon Group and former Methodist Youth President, welcomed the news: "It's excellent to see the Methodist Church divesting from oil and gas companies. The prophetic voice of the Church has been heard and the reaction has been amazing to witness. But we mustn't get complacent, as we still have a lot to do to achieve net zero by 2030.'

Martha Rand, Vice Chair of the Methodist Zero Carbon Group, who proposed the motion on divestment at Methodist Conference as a representative of the Methodist Youth Assembly, said: 'I'm overjoyed to hear today that the Central Finance Board has fully divested from oil and gas. As Methodists and Christians, it is vital that we show our concern for God's world and our siblings around the globe through action as well as words. This is a brilliant and important step we have taken. Thanks to everyone who helped make this happen, especially Operation Noah and everyone in the Methodist Zero Carbon Group."

James Buchanan, Bright Now Campaign Manager at Operation Noah, a Christian climate change charity, said: "This is a hugely significant and welcome step by the Methodist Church in responding to the climate emergency, especially as the UK prepares to host COP26 in November. We thank all the Methodists who have campaigned tirelessly to make this happen. We hope other Churches will join them in supporting a just and green recovery by divesting from fossil fuels and investing in the clean technologies of the future."

LINKS

Unitarian Church - www.unitarian.org.uk/

The Central Finance Board of the Methodist Church has divested from all oil and gas stocks - www.cfbmethodistchurch.org.uk/news/the-central-finance-board-of-the-methodist-church-divests-from-all-oil-and-gas-stocks/

Operation Noah - http://operationnoah.org/