Pensions Board Video Intensifies Divestment Debate

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UPDATE: According to a Feb. 15 report by Heather Hahn of United Methodist News Service, "the pension board altered the text on the video on Feb. 11 to say 'We do not support forced divestment” and “We oppose divestment petitions.” The video’s narration remains entirely the same."

Ms. Hahn also contacted the Rev. L. Fitzgerald “Gere” Reist II, secretary of the General Conference, who echoed Phillips’ misgivings about the pension board’s initial video. “The presentation came across to me as too directive and insufficiently informative,” he said. “I did not experience it as persuasive.”

ORIGINAL UM INSIGHT FEB. 12 ARTICLE BEGINS HERE

For the second time in as many months, the General Board of Pension and Health Benefits has come under fire for its policy of resisting divestment from controversial companies while attempting socially responsible change as a shareholder.

In a Feb. 8 blog post titled "This Is Not Okay; UM Pension Board Video Crosses the Line," the Rev. Jenny Phillips, coordinator of Fossil Free UMC, alleges that a video aimed at General Conference delegates from regions outside the United States unduly pressures them to reject divestment from petroleum companies and related industries. The Pensions Board's video, featuring the agency's top executive Barbara Boigegrain, is posted on Fossil Free's blog.

According to Fossil Free UMC's website, the General Board of Pension and Health Benefits has nearly $600 million invested in the fossil fuel companies around the world. Although it sold off some of its coal holdings in early 2015, the pensions board currently is invested 31 of the top 100 coal companies and 80 of the top 100 oil and gas companies.

In a press release the day after the blog posting, Rev. Phillips commented: “Many of the church's Central Conferences are located in countries that are acutely vulnerable to climate change. The United Methodist Church has a moral duty to engage delegates worldwide in active discernment on the church's response to the climate crisis. General agency presentations on this—and on all key issues facing the church—should empower delegates with information, not imperatives.”

In response to a telephone inquiry from United Methodist Insight, M. Colette Nies, managing director of communications for the Pensions Board, issued the following statement via email:

"The landing page for the Fossil Free UMC website is an appeal that directly targets our agency and seeks divestment. Our video simply responds by stating our position that we do not think such divestment action would be prudent.

"Our message is not unique for Central Conference delegates.  We have been asking U.S. delegations to consider that divestment is not the only way, and we believe not the best way to combat climate change, to consider our perspective, and to allow us to continue the engagement work that we believe will make a greater difference than walking away.

"[The video wasn't shown at the Jan. 20-22 Pre-General Conference Briefing in Portland, Ore., because] We had our sustainable investment expert, [Kirsty Jenkinson] in the room for the U.S. pre-conference briefing and to field questions, but it would be difficult for us to physically send her to all the central conference briefings around the world; hence the video message." [Editor's note: Video of the session on social issues that includes the divestment question has been posted on YouTube].

Seattle-based Fossil Free UMC formed in 2015 to promote its petroleum-divestment legislation to the 2016 General Conference. The group has submitted petitions calling on delegates to amend the Book of Discipline to require all United Methodist boards and agencies to sell off or avoid investments in companies that produce petroleum, coal and natural gas:

Fossil Free UMC describes itself and its objectives on its website:

"We are a movement of United Methodists who recognize that it is wrong for The United Methodist Church to profit from wrecking the planet. Indeed, profiting from fossil fuel companies undermines the very ministries that our investments are meant to support.

"Our mission is to convince the General Board of Pension and Health Benefits of The United Methodist Church to divest from fossil fuel companies and to reinvest in clean energy companies, and to add coal, petroleum and natural gas to the list of socially responsible investment screens in the Book of Discipline and Book of Resolutions."

In January, the pensions board drew fire from pro-Israel groups – and praise from pro-divestment lobbies such as United Methodist Kairos Response – when it announced it would not invest in five Israeli-owned banks that help to fund Israeli settlements in the Palestinian Authority. The announcement explained that the decision stemmed from new guidelines for socially responsible investing based in part of the United States Declaration of Human Rights. The guidelines were developed with the pensions board's financial adviser, Wespath.

Overall, the pension and health benefits board manages some $20 billion in asserts for retired United Methodist clergy and lay church employees. The agency recently ranked as the 10th largest investor among the world's top 500 investors.

The investment section of its website describes the agency's investment principles and tracks profit-and-loss trends among its major funds. In general, the board states that it "seeks to avoid investing in companies that produce and/or provide products and services that are not aligned with United Methodist values. Our six exclusions relate to: alcoholic beverages, tobacco products, adult entertainment, weapons, gambling and privately-owned correctional facilities."

Veteran religion journalist Cynthia B. Astle is Founder and Editor of United Methodist Insight.