Campaigners on Thursday hailed a move by the Church of England to exclude all oil and gas majors from its investment portfolio because of climate concerns.
The body that manages the Church’s £10.3-billion ($13.1-billion) endowment fund excluded 20 companies from its list of financial assets two years ago.
It has now extended the ban to 11 more, including BP, ExxonMobil, Shell and TotalEnergies, after assessing that none was meeting the goals of the 2015 UN climate accord to tackle global warming.
“With the 2021 exclusions and those announced today, the Church Commissioners (for England) will have excluded all oil and gas majors,” it said.
“The broader exclusion of all oil and gas exploration, production and refining companies will follow by the end of 2023.”
The Church of England Pensions Board announced separately that it, too, would disinvest from fossil fuels.
Archbishop of Canterbury Justin Welby, a former oil company executive who leads the worldwide Anglican Communion of affiliated churches, said Christians had “a duty to protect God’s creation”.
“Energy companies have a special responsibility to help us achieve the just transition to the low-carbon economy we need,” he added.
“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.”
First Church Estates Commissioner Alan Smith said the decision to divest “was not taken lightly” but energy majors had been too slow to act.
Campaign
The announcement came as the Church’s national assembly, the General Synod, comprising hundreds of lay members and clergy, prepares to convene in early July.
In 2018, the body set a five-year strategy to invest in climate solutions, engage with high carbon-emitting companies, and disinvest from fossil fuel firms not aligned with the Paris accord.
The agreement saw countries agree to cap global warming at “well below” 2.0 Celsius above average levels measured between 1850 and 1900 — and 1.5C if possible.
The Church’s National Investing Bodies are due to report back to the upcoming synod in York, northern England, on progress meeting the plan.
Last week, more than 200 clergy, including 10 bishops, sent an open letter to the commissioners and the pensions body calling for “fossil-free” pensions.
The 42 Church of England dioceses have their own investments but according to Operation Noah, a Christian climate charity, more than half have pledged to exclude those linked to fossil fuels.
Operation Noah chair Darrell Hannah said Thursday’s announcement “should send shockwaves around the world”.
Hannah said it should show that oil and gas majors “are not operating in good faith and not preparing for the global transition to renewable energy”.
“We trust that today’s announcement… will encourage many others to divest from fossil fuels and invest in climate solutions,” he added.
‘Lost faith’
Oil and gas majors have been frequent targets for climate activists for not doing enough to move from polluting fossil fuels towards cleaner alternatives such as renewables.
Energy giants have been accused of stalling on their commitments because of strong demand for fossil fuels, which has given them bumper profits.
The Church of England Pensions Board in May joined other minority shareholders in voting against Shell’s “green” transition plan, and called for more ambitious carbon-cutting targets.
Friends of the Earth’s divestment campaigner Rianna Gargiulo said she hoped Thursday’s announcement could spur institutional investors such as local councils, pension funds and universities to follow suit.
Greenpeace called it a “moment of moral reckoning” for other investors and the government.
“After years of trying to change these companies from within, the Church of England has clearly lost faith in Shell and other oil giants’ ability to redeem themselves,” it added.
