The Church of England is pulling its investment in major fossil fuel companies because they failed to align with the goals of the Paris climate agreement.
The Church Commissioners and Church of England Pensions Board announced today they would independently divest from fossil fuels.
The Archbishop of Canterbury, Justin Welby, said:
“We have long urged companies to take climate change seriously, and specifically to align with the goals of the Paris Climate Agreement and pursue efforts to limit the rise in temperature to 1.5°C above pre-industrial levels.
“In practical terms that means phasing out fossil fuels, investing in renewables, and plotting a credible path to a net-zero world.
“Some progress has been made, but not nearly enough. The Church will follow not just the science, but our faith – both of which call us to work for climate justice.”
The Church Commissioners excluded 20 oil and gas majors from its investment portfolio in 2021.
Today’s announcement said all remaining oil and gas majors would now be excluded from the £10.3bn endowment fund by the end of 2023.
The companies comprise BP, Ecopetrol, Eni, Equinor, ExxonMobil, Occidental Petroleum, Pemex, Repsol, Sasol, Shell and Total.
All other companies primarily engaged in exploration, production and refining of oil or gas, would also be excluded unless they were in genuine alignment with the 1.5C pathway, the church said.
Alan Smith, first church estates commissioner, said:
“The decision to disinvest was not taken lightly.
“Soberingly, the energy majors have not listened to significant voices in the societies and markets they serve and are not moving quickly enough on the transition.
“If any of these energy companies come into alignment with our criteria in the future, we would reconsider our position. Indeed, that is something we would hope for.”
The church said today its national investing bodies (NIBs) had “long actively engaged with fossil fuel companies to encourage meaningful change”.
In 2018, the General Synod agreed a timeline for the NIBs to divest by the end of 2023 from fossil fuel companies not aligned with goals of the Paris climate agreement.
Last week, more than 200 Church of England clergy, including 10 bishops, sent an open letter to the Church Commissioners and the pensions board calling for full divestment from fossil fuel companies.
DRILL OR DROP? 
Kent County Council is worried enough about having money in its pension funds invested in oil and gas becomiong stranded assets that it has built a very large solar farm as an alternative. Who wants their assets stranded? I dont think anyone does. The O&G companies are out of time my baby, my poor old fashioned baby, they have known since the start of the 20th century that their products harmed the environment and yet they still carry on doing the same things that will condemn future generations to a very uncertain future. Shame on them.
Don’t think the solar farm was too welcome either CJR!
Stranded assets? Hmm, does the sun always shine in Kent?
How are the poor old oil and gas companies doing? Oh yes, paying out high dividends-income-and buying back shares.
I really would just take a hard look at Councils and their track record at managing investments. It really is not that good.
Well done C of E. About time!