Office of Faith-Based Investing and Corporate Engagement

 

Presbyterian Faith-Based Investing

Mission Responsibility through Investment: How it works from Presbyterian Foundation on Vimeo.

The Presbyterian Church (U.S.A.) believes that church investment is more than a practical question. It is also “an instrument of mission and includes theological, social and economic considerations” (183rd General Assembly, UPCUSA, 1971). This belief flows from our understanding of the stewardship of God’s resources entrusted to the church. Thus, “we confess that the Lord is really the acknowledged Master of our entire life-moral, physical and material” (116th General Assembly, PCUS, 1976).

Mission Responsibility Through Investment (MRTI), was created in recognition of the church’s unique opportunity to advance its mission faithfully and creatively through the financial resources entrusted it. MRTI implements the General Assembly’s policies on socially responsible investing (also called faith-based investing) by engaging corporations in which the church owns stock. This is accomplished through correspondence, dialogue, voting shareholder proxies and recommending similar action to others, and occasionally filing shareholder resolutions. The General Assembly’s investment policy identifies specific concerns that MRTI is to promote: pursuit of peace; racial, social and economic justice; environmental responsibility and securing women’s rights. MRTI prioritizes issues on these concerns from requests by ecumenical partners, mid councils, and congregations.

Committee on Mission Responsibility Through Investment

MRTI enjoys the full participation and support of the Board of Pensions and the Presbyterian Foundation. Assets under their management, including those of the Foundation-sponsored family of New Covenant mutual funds, are managed according to General Assembly guidelines, in as much as is legally permitted. In addition to the Board of Pensions and Foundation trustees, MRTI has elected members from the Presbyterian Mission Agency, Advocacy Committee for Women’s Concerns, Advisory Committee on Social Witness Policy, Racial Equity Advocacy Committee, and three at-large representatives. You can view the Committee Procedures here.

You can view MRTI’s current workplan, including a list of companies MRTI engages, here: 2021-2022 MRTI Workplan.

Who Serves on MRTI?

Rev. Kerri Allen, Chair, Advocacy Committee on Women’s Concerns
Rev. Dr. Lindley DeGarmo, Vice-Chair, Board of Pensions
Dr. Mark Douglas, Advisory Committee on Social Witness Policy
Adebisi (Bisi) Shofu, Racial Equity Advocacy Committee
Rev. Dr. Fairfax F. Fair, Board of Pensions
Rev. Richard White, New Covenant Trust Company
Sam Muse, Presbyterian Foundation
Vacant, Presbyterian Mission Agency
Rev. Brenton Thompson, Presbyterian Mission Agency
Rev. Dr. Elizabeth Hinson-Hasty, Member-At-Large
Rev. Sandra Moon, Member-At-Large
Rev. Dr. Gregory Simpson, Member-At-large

Bios for MRTI members are available here: MRTI member bios 2021

The composition of the committee with sub-committee assignments can is available here: MRTI Committee Composition

If interested in joining MRTI as an at-large member when openings occur, you may apply here: https://oga.pcusa.org/section/committees/nominations/

Tools of Faith-Based Investing


Faith-based investing uses the three pillars of socially responsible investing—screening, shareholder advocacy, and community investing—to express faithful stewardship of investment resources.

Screening

Screening means selecting investments that meet criteria based on our faith values. Some churches and individuals employ “positive” screens that seek out companies for investment based on their approach to environmental responsibility, fair-hiring practices and efforts to support international human rights standards. Others use “negative” screens that may include alcohol, tobacco, gambling and the production of war materials, among others. Research enables concerned investors to make informed choices to invest in companies thatcome closest to their values.

Screening in the PC(USA) begins with policies of the General Assembly and the investing agencies of the church to avoid investments in companies involved in tobacco, alcohol, and gambling, along with for-profit prisons, and some companies related to weapons production, antipersonnel and mines, handguns and assault weapons. In addition, at times a company involved in serious human rights and environmental violations may also be screened. The investment managers retained by the investing agencies for their expertise in specific areas then select stocks from the universe of non-screened companies according to their mandated responsibility.

Corporate Engagement

Corporate engagement combines our voices as investors to leverage a call for socially responsible corporate policies and practices. Shareholders, as the owners of the corporation, have a variety of options—and the responsibility—to influence the behavior of a company in which they hold stock.

Through dialogue and meetings with company management, shareholders try to directly encourage more responsible levels of corporate citizenship. If initial attempts at dialogue or communication with a company fail, institutions or individuals can file a shareholder proposal, to be voted on at that company’s annual shareholder meeting. A shareholder proposal is a recommendation or request that a company and/or its board of directors take a particular action relevant to company policy.

All investors then have the opportunity to speak out on key issues through the votes they cast on shareholder resolutions appearing on their proxy ballots in advance of the company annual meeting. Proxies not voted by shareholders are almost always automatically credited to the company’s recommendation, which is usually a vote against the shareholder proposal.

MRTI is involved in shareholder advocacy to encourage companies to protect the most vulnerable, care for creation, and promote peace. Recent dialogues have led to an agreement by Wells Fargo to end payday lending, staff training programs at Hilton and Wyndham Hotels to recognize the trafficking of children for sexual exploitation, and the establishment of a greenhouse gas emission reduction goal by Conoco-Phillips. Shareholder resolutions have been filed in the field of human rights, corporate accountability, health care, environmental responsibility, and more. 

MRTI Implementation of 222nd General Assembly Directive

To help MRTI implement its directive from the 222nd General Assembly as well as evaluate the progress it makes with companies engaged in conversations around environmental, social and governance (ESG) issues, the committee approved this document in June 2017. The 223rd General Assembly affirmed these Guideline Metrics in June 2018.The Committee approved updates to the Guideline Metrics framework in June 2021. Those updates are available here: MRTI Guideline Metrics(June 2021).

Updated Guideline Metrics Company Scoring Evaluation, approved by MRTI in January 2022, can be found here.

Community Investing

Community investing provides financial capital for economic development in communities that are often overlooked or excluded by traditional financial structures. Community banks, credit unions, and loan funds, along with other community-based businesses, build opportunity by helping to provide market-based jobs, housing and local services. Designating a portion of investment capital for community investing supports the building of sustainable economies in communities where it is needed most.

In a similar vein, the Assembly called for Positive Investment in Israel-Palestine, as part of an effort to create conditions for peace in the region. The Presbyterian Foundation has implemented this effort through a series of investments there including construction loans, microfinance, and direct investment.

MRTI Resources For Active Ownership of Invested Funds

Your Power as a Shareholder. This resource will help you leverage your power as an investor: Activating your Power as a Shareholder
General Assembly Divestment/ Proscription List
. Each year MRTI produces this list based on the General Assembly’s divestment policies. Download current list.
Divestment strategy.  The General Assembly has given guidance about when divestment is appropriate.  Download the Divestment as an Ethical Strategy document here.
Proxy Voting Recommendations. Each year MRTI reviews a large number of shareholder resolutions that concern social and ethical issues related to the corporation’s business operations and policies. MRTI makes recommendations for Presbyterian shareholders based on the mission goals and policies of the General Assembly. Download 2022 Proxy recommendations.
Sample Socially Responsible Investment Policies. These are actual policies of Presbyterian congregations and can be adopted or adapted for a congregation’s or other institution’s permanent funds or endowment. Click here to request sample policies.
MRTI statement on the decision regarding the 224th General Assembly available here.

Additional Resources for Faith-Based and Socially Responsible Investing

Board of Pensionswww.pensions.org
Cereswww.ceres.org
Climate Action 100+ | www.climateaction100.org
The Forum for Sustainable and Responsible Investmentwww.ussif.org
Interfaith Center on Corporate Responsibilitywww.iccr.org
Investor Environmental Health Network | www.iehn.org
New Covenant Fundswww.newcovenantfunds.com
Presbyterian Foundationwww.presbyterianfoundation.org

Divestment recommendations at the 225th General Assembly (2022)

“We recognize that climate change is undeniable and is one of the most pressing moral and theological problems of our time. Human action and corporate degradation of creation threatens the survival of the planet upon which we live and depend for our sustenance,” from the rationale of MRTI’s report to the 225th General Assembly (available here).

Following General Assembly policy and responding to the 223rd General Assembly directive to the Committee on Mission Responsibility Through Investment (MRTI), MRTI is recommending five companies be added to the General Assembly Proscription/ Divestment list: Chevron, ExxonMobil, Marathon Petroleum, Phillips 66, and Valero Energy. If approved by the 225th General Assembly, the recommendations can be implemented by the investing agencies of the PCUSA – the Board of Pensions and the Presbyterian Foundation.

A Timeline of Recent General Assemblies and MRTI response

221st GA (2014): First fossil fuel divestment overture introduced, issue referred to MRTI. Directed MRTI to report back in 2016 after “action and discernment in accordance with its long-standing and detailed procedures to engage with individual corporations to advance their actions in support of important social policy issues.”

2015-2016: MRTI conducts research and policy analysis; gaps identified in “Power to Change” GA Environmental Policy (2008), no guidance on owning fossil fuel stocks.

222nd GA (2016): Need to establish criteria for owning fossil fuel stocks. GA directed MRTI to report back in 2018: “with recommendations, including possible selective divestment if significant changes in

governance, strategy, implementation, transparency and disclosure, and public policy are not instituted by the corporations during the engagements of MRTI and ecumenical partners.”

2016-2017: MRTI develops and adopts tool for measuring criteria.

223rd GA (2018): affirmed MRTI’s measurement criteria and named 9 companies for focused engagement and measurement, directed MRTI to return in 2020 with divestment recommendations. 9 companies named: Chevron, ConocoPhillips, Duke Energy, ExxonMobil, Ford, General Motors, Marathon Petroleum, Philips 66, Valero Energy

224th GA (2020): MRTI recommended adding companies falling in the red category, ExxonMobil, Valero Energy, and Marathon Petroleum, to GA Divestment/ Proscription list.

225th GA (2022): MRTI recommends adding companies falling in the red and orange categories, Chevron, Exxon, Marathon, Phillips 66, Valero, to the GA Divestment/ Proscription list, and add additional companies to the focused engagement list.

Resources

MRTI report to the 225th General Assembly

January 2022 Guideline Metrics

1984 Divestment Policy

Resources

MRTI Divestment List 2017

The General Assembly of the Presbyterian Church (USA) urges divestment and/or proscription of some corporations due to their involvement in military-related production (MR), tobacco (TO), human rights violations (HR), and operating for-profit prisons (FPP). This file contains a comprehensive list of corporations or securities affected by those General Assembly policies.
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