Southwark Archdiocese introduces new Ethical Investment Policy

Phil Kerton

In following up an enquiry from Operation Noah, forwarded by a member of the Southwark JPIC Commission, Bishop Paul Hendricks confirmed that the diocese no longer holds shares in fossil fuel companies. Looking further into this matter, we heard from the Chief Operating Officer for the diocese, Paul McCallum, that this results from the adoption of a new Ethical Investment Policy, which is outlined in the most recent annual submission from the diocese to the Charity Commission.

The further good news to be celebrated is that the policy involves much more than the boycott of fossil fuels, as additional ethical and environmental considerations are taken into account. The diocese now checks that it has no investments in companies involved in alcohol, tobacco, fossil fuels, armaments, gambling or adult entertainment - though the odd parish may still hold legacy shares in Shell, for example. Concerned activists will be grateful to Operation Noah for prompting us to make this discovery!

The Policy was developed via a process of ethical screening to eliminate organisations that are not consistent with Catholic principles, followed by evaluation in terms of Environmental, Social and Governance practices (ESG), which led to selection of candidate stocks. The final stage was to evaluate each company's contribution to the UN's Sustainable Development Goals.

The former policy, in place for many years, was essentially one of avoidance. The diocese avoided any companies that either offered abortion services or with 10% or more of their turnover in strategic military sales (e.g., strategic military parts and combat equipment) or in tobacco sales.

Those concerned for the Climate crisis will be further pleased to know that parishes are encouraged to join the Inter Diocesan Fuel Management Programme which delivers 100% green power and 71% green gas, incorporating biomethane (a by-product of gin distillation). 30% of parishes have already signed up to this supplier and a further 46% have submitted applications.

Those concerned about the Arms Trade are delighted to see that a clear strategy has been placed in the public domain where it can be appreciated, discussed and applauded.

Long-time campaigner Bruce Kent comments that. "It is an encouragement that, in taking a stand on climate change, many sources of the CO2 which is so changing our atmosphere have been included. Notably, the production and use of armaments. Military activities not only cause so many violent deaths and encourage a trigger-happy approach to the resolution of disagreements, but in addition eat up funds that could be devoted to the support of some of the world's poorest people.

Phil Kerton is a long-standing member of Southwark Archdiocesan JPIC.