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15. Joint Advisory Committee on the Ethics of Investment
1 Role and Function of the Committee
1.2 SRI Reporting Requirements
In July 2000 regulations came into force
1.1 Terms of Reference
that obliges all pension funds to consider The Joint Advisory Committee on their policy, if any, on socially responsible the Ethics of Investment (JACEI) was investment (SRI). In April 2005 similar established in 1983 by a Resolution of requirements were extended to charities the Methodist Conference to provide a under the SORP guidelines. The CFB is mechanism for the Methodist Church to investment manager to large pension tackle ethical dilemmas associated with funds that use the JACEI Conference investment and report annually to the report as part of their assessment of CFB Conference. Its terms of reference, which compliance with their SRI policies. The were last revised in 2001, are as follows: report should therefore enable trustee bodies to assess clearly whether the CFB The Joint Advisory Committee of the Ethics has operated in a way consistent with the of Investment shall have a Chair appointed aims of the Methodist Church.
by the Methodist Council. The Committee shall have five members appointed by the 1.3 JACEI Procedures
Central Finance Board of the Methodist The latest procedural amendments (2008) Church (CFB) and five members appointed agreed that each meeting should have: by the Methodist Council. The function of ∞ one or two major items for debate
the Committee shall be: either previously agreed by the ∞ to advise the CFB of ethical
Committee, requested by the CFB or considerations relating to investment, driven by events; it being accepted that the CFB legally ∞ regular reporting items to keep the
has responsibility for making the final Committee fully informed of ethical decision on the purchase or disposal issues relating to investment and to assist in the selection of items ∞ to make public where appropriate
requiring a major debate; any ethical policy of the CFB and in ∞ a report from the CFB on its ‘ethical
particular any investment decision performance'. This would include taken on ethical grounds and any other the EIRIS (the Ethical Investment advice the Committee may provide on Research Service) screen, voting ethical matters relating to investment; records and any disinvestment on ∞ to report to the Conference on the
ethical grounds, workings of the Committee and in particular to comment on the that the Committee should: performance of the CFB in managing ∞ hold four meetings a year in
the funds under its control according November, February, June, and to an ethical stance which is in accordance with the aims of the ∞ have its own identity with an address
Methodist Church.
located at Methodist Church House; ∞ advise the CFB in relation to current
Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment Methodist Church policy; the CFB against investment in G4S ∞ examine all aspects of a company's
(section 4.2) and Thyssen Krupp operations rather than simply focus on one particular issue; ∞ take responsibility, where appropriate,
∞ carried out detailed scrutiny and
for making public any ethical policy debate about the ethical suitability of the CFB and in particular any of BSkyB (section 4.5), noted the investment decision taken on ethical CFB's engagement work, and advised the CFB that the existing ban on ∞ seek ways to make the advice
investment should be retained for the provided by the Committee available to the wider Methodist Church,
∞ highlighted the importance of the
that Committee members should: CFB Ethical Performance Review and ∞ feel free to contact the Secretary
scrutinised the CFB voting record, between meetings about issues of the EIRIS ethical overview of UK sectors, the list of ethically excluded ∞ email their comments on position
UK and European companies and the papers or other matters to the minutes of the monthly CFB ethics Secretary if unable to attend a meeting (see section 4.9); particular meeting.
∞ advised the CFB in relation to
2 Highlights of Actions and Decisions
carrying out existing policy with regards to Nestlé (section 4.3) and 2.1 The Committee:
on investment in mining companies ∞ supported the Central Finance Board's
(CFB) judgements relating to a number of companies; ∞ emphasised the high priority of
establishing a policy on climate change, ∞ welcomed representatives of the
and highlighted the CFB's existing work Trustees of the Methodist Church in in this area (section 4.6).
Ireland to meetings (section 3.1); 2.2 The Central Finance Board (CFB):
∞ hosted a ‘fringe' meeting at the 2008
Held meetings, corresponded and/or Conference (section 3.2); produced briefing notes relating to ethical, environmental and human rights issues ∞ approved a CFB position paper on
either singly or in concert with others as Ethical Investment Issues Involving Children (section 4.1); • Aggreko (see 4.6) ∞ considered a policy on Private Security
• Anglo-American (see 4.7 & 4.8) Contractors (section 4.2). Advised • Antofagasta (see 4.6) Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment • Arcelor Mittal (see 4.8) Investment (PRI). Had regular • Aveva Group (see 4.6) collaboration with the General Board • Beazley Group (see 4.6) of Pensions and Health Benefits • Bodycote (see 5.2) (GBOPHB) of the United Methodist • BSkyB (see 4.5) Church. Drafted a position paper • BP (see 5.3) on ethical issues related to climate • Charter International (see 4.6) change (section 4.6).
• Compagnie Financiere Richemont 3 The Working of the Committee
• Dassault Systemes (see 5.2)• Dignity (see 4.6) 3.1 Committee Membership
• GlaxoSmithKline (see 5.7) The Revd John Howard was the Chair of • Forth Ports (see 4.6) the Committee.
• G4S (see 4.2)• Hargreaves Lansdown (see 4.6) Members nominated by the Methodist • ICAP (see 4.6) Council were: Dr David Clough, Ms Anthea • Intercontinental Hotels Group Cox (to August 2008), Dr Brian Gennery, Ms Alison Jackson (from October 2008), • Kazakhmys (see 4.6) Mr Kumar Jacob (to September 2008), • Morgan Crucible (see 5.2) Ms Rachel Lampard (from October 2009), • Morgan Sindall (see 4.6) Mr Gareth Mostyn (to June 2008) and Mr • Wm Morrison (see 5.4) Chris Moorhouse (from April 2009). One • Nestlé (see 4.3) place remained unfilled.
• Rexam (see 4.6)• Royal Dutch Shell (see 5.5) Nominated by the Central Finance Board • Ryanair (see 5.5) (CFB) were: Dr Keith Aldred, Mr Alan Emery, • Shire (see 4.6) Sir Michael Partridge, Mr Bill Seddon and • Tate & Lyle (see 4.6) Mr Peter Thompson.
• Tesco (see 5.4 & 5.7)• Thomas Cook (see 4.6) In attendance to facilitate the workings of • Thyssen Krupp (see 5.2) the Committee were: Mr Russell Sparkes • United Business Media (see 4.6) (Committee Secretary), Mr Stephen Beer, • Vodafone (see 5.9 Mr Stephen Hucklesby, Mr Miles Askew, • Wood Group (see 4.6) and Ms Kate McNab. The Committee gave a particular welcome to the Revd ∞ continued to play an active role in the
Winston Graham who was in attendance Church Investors Group (see 4.7); representing the Trustees of the Methodist the Institutional Investors Group on Church in Ireland for the first time.
Climate Change (see 4.6); the Carbon Disclosure Project (see 4.6); Access The Committee noted the restructuring of to Medicines Index (see 5.7) and the Connexional Team resulting from the the UN Principles for Responsible Team Focus process and will review any Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment impact on the working of the Committee in wrong. The paper also described the general principles set out in the UN Convention on the Rights of the Child 3.2 Developing Greater Understanding of
and the ethical issues highlighted on the the Committee's Work
websites of the UK's leading charities The Committee agreed that the 2008 and UNICEF. Finally ethical issues were popular JACEI report, Investing with categorised by industrial sector to guide Integrity - living in a complex and diverse CFB ethical investment research and world, made clear how the Committee engagement work. Following detailed operated and what it tried to achieve. The scrutiny the paper was revised to report had been circulated to Conference incorporate a number of amendments. representatives and sent to all district The Committee agreed that it was a and circuit treasurers and others with an good basis for a CFB policy on ethical interest in Methodist finances. It was also investment issues involving children, with agreed that it would be desirable to give the next step being for the CFB to produce it wider publicity, to facilitate small group a Policy Statement on the issue.
The CFB also reported that staff had At the 2008 Conference a fringe event spoken at an Action for Children (formerly was held to promote discussion of the NCH) trustee workshop on ethical Committee's work. This was in the format investment. Discussions took place at a of a ‘thought for the day' by David Walton, subsequent meeting between members the Vice-President. It was agreed that the of the CFB and Action for Children's policy JACEI fringe meeting had been worthwhile.
team, on child poverty, the portrayal of young people in the media, and young (Enquiries about the Committee's work people's access to media services. The are encouraged, with letters to be CFB also described the engagement work addressed to the Committee's Chair c/o done by the General Board of Pensions 25 Marylebone Road, London NW1 5JR, or and Health Benefits (GBOPHB) with the by email to: jaceichair@methodistchurch.
US retailer Wal-Mart on child labour in 4 Significant Issues
4.2 Private Security Contractors
A CFB report on G4S, previously known as
4.1 Ethical Investment Issues Involving
Group 4 Securicor, was considered. The company had previously been excluded The Committee considered a detailed owing to its involvement in US prisons CFB paper on the above subject, which where the death penalty could be carried attempted to identify the main ethical out. However, following the sale of this issues involving children, noting their business a thorough ethical review of essential vulnerability, in that they are G4S had been carried out to see whether often the first to suffer when things go it was now ethically acceptable. A new Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment concern had arisen following the recent Private contractors may employ personnel acquisition by G4S of the private security less well-trained than those in the armed contractor Armor Group, which carried out forces, under less well-developed chains military outsourcing in combat zones. The of command, and with less accountability. Committee concluded that Armor Group The use of contractors in place of military came close to running private unregulated personnel may therefore increase the armies; involvement with which was risk of inappropriate use of force in some considered unacceptable. It therefore areas of conflict.
advised the CFB that investment in G4S should be avoided on ethical grounds.
The CFB policy Companies with Military Fol owing this decision the Committee Exposure must be specifically applied noted that private security contractors to the provision of private military or were not covered by the recently agreed security services by a company. Such Policy on Companies with Military Exposure, services may be regarded as raising and it was agreed that a complementary more concern than the provision of policy should therefore be drafted. It offensive weapons.
subsequently agreed a Policy on Contractors Providing Military and Security Services, For the purposes of investment, a noting the areas of ethical concern and the company's exposure to the provision specific policy to be fol owed: of private military or security services wil only be tolerated if it does not Areas of ethical concern
form a significant proportion of its Companies involved in providing overal activity, is clearly conducted private military or security services to in a wel -regulated environment with government, corporate, or NGO clients clear rules of engagement subject to may be more directly involved in armed legal scrutiny, and is not deployed as a conflict than companies providing substitute for national armed forces.
military equipment or services.
4.3 Nestlé
Private military contractors may The CFB reported that it was continuing prevent harm and may be more to monitor Nestlé's ethical performance akin to police than national armies, as requested by the 2006 Conference. thereby raising fewer ethical concerns. The Chair stated that the Methodist Nevertheless, private armed forces Youth Executive had written to him at the do not always have clear lines of request of the 2007 Methodist Youth accountability and democratic control Conference, enquiring how the shares and can be used as substitutes for owned by the CFB might have influenced national forces. The application the company's behaviour, with particular of the Christian Just War tradition reference to allegations of bonded child to the use of private forces is not labour on cocoa plantations. His reply to the Methodist Youth Executive noted Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment that at a recent CFB meeting with the becoming much more ‘family focused' company a number of Nestlé initiatives and that it was therefore timely to review that seek to eliminate child slavery and the ethical ban on owning shares in it. It to improve conditions in the cocoa trade also noted that BSkyB appeared open to had been identified. It was noted that a engagement at present. meeting between the company and a joint Connexional Team/CFB delegation had However, the Committee noted continuing been held on the 26 March 2009.
ethical concerns about BSkyB related to the screening films of a pornographic nature and gambling channels. A number The Committee commended the CFB's of detailed questions were raised which decision to host a meeting to exchange required the CFB to obtain additional views and discuss the situation in Israel/ information from the company. The CFB Palestine with the Church of England research also compared BSkyB with and three US Church investors: the other media companies in which the General Board of Pensions and Health CFB invested, examining accessibility Benefits of the United Methodist Church, to pornographic material and gaming. the Evangelical Lutheran Church of The Committee agreed that it was America and Mennonite Mutual Aid. It important to have a consistent approach was noted that the CFB had discussed in providing advice on BSkyB and other the Committee's 2007 position paper, media companies such BT and Vodafone. Guidelines for Constructive Corporate Following revisions and additions to the Engagement Related to Israel/Palestine.
original paper further discussions took place.
4.5 BSkyB
During the year the Committee devoted a
After a thorough debate the Committee significant amount of time to discussing agreed that the company's current gambling the ethical suitability of BSkyB, following exposure, 1% of group turnover, did not the production by the CFB of a detailed represent an area of significant ethical paper on the company. This noted how concern. However, this advice should the Committee had advised the CFB in be reviewed if turnover exceeded 5%, 1994 that the company was not suitable as this would indicate that it may have for investment owing to its involvement become a strategic growth area for the in the production of pornographic content company. There was less agreement through its partial ownership of the about the company's role as a conduit of Playboy Channel. The CFB stated that its pornographic material, although on balance policy was to avoid discriminating against it was accepted that the company had companies because of their past, but moved forward significantly since 1994. It to look at their present activities, and was recognised that BSkyB was required crucially, the direction in which they were by law to broadcast any channel on its moving. It believed that the company platform subject to screening and ‘adult had changed significantly since 1994, content' controls. However, although BSkyB Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment no longer held any stake in the Playboy Church on a joint project entitled Hope in Channel it did stil own channels that God's Future: Christian Discipleship in the broadcast pornographic content.
Context of Climate Change, a theological assessment of climate change. It It was suggested that whilst engagement also considered a 2007 Conference may be the most appropriate stance Resolution, Caring for Creation in the to take in future, it should involve Face of Climate Change. It was accepted trying to persuade BSkyB to exit from that whilst there was increasing concern pornography and gaming as well as about climate change among ordinary seeking tighter restrictions on access. members of the Churches, little work on The CFB commented that it was difficult this subject had previously been produced to engage with a company unless it was by the mainstream UK Churches from as a shareholder. The Committee decided a theological perspective. In the light that engagement with the company at a of Hope in God's Future, produced for senior level, preferably in collaboration presentation to the Methodist Council, with the Church Investors Group (CIG), the CFB had drafted a position paper on was necessary before considering any climate change. Once detailed scrutiny of alteration to its current advice. Such a this has been completed the Committee meeting was subsequently held in February aims to recommend a policy statement 2009 with the Chief Executive and Finance to the CFB as soon as possible. The Director of the company. The Connexional Connexional Team also reported that the Team leadership agreed that it was President of the Methodist Conference appropriate for one of the four Methodist has joined with other Church leaders in Strategic Leaders to be included in high urging that the UK government and the EU profile meetings between the Methodist commit to a stronger negotiating line on Church and senior company executives. targets in relation to the UN summit on Consequently, the Secretary for Team climate change to be held in Copenhagen Operations as well as representatives of in December this year. In particular UK the CFB and Connexional Team were part Churches have called for targets to be of the CIG delegation. The Committee met by domestic emission reductions welcomed the Methodist participation in and expressed concern that our financial this CIG meeting, and looked forward to support to developing countries to build seeing positive signs of change from the low-carbon economies should not allow company in the areas of concern.
us to buy out of progress on domestic emission reductions.
4.6 Climate Change
The Committee agreed that this was an
The Committee highlighted a number extremely important issue that needed of initiatives already being taken by the to be given a high priority on its agenda. CFB which addressed various aspect The Committee noted the work done by of climate change. It was noted that the Methodist Church, the Baptist Union the CFB had been a signatory to every of Great Britain, and the United Reformed round of the Carbon Disclosure Project, Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment and had written to all companies held broad overview and it was important not by the CFB that had not participated in to attach too much weight to individual the (CDP 6) questionnaire. Letters to numbers. The Committee agreed that the FTSE 100 companies were sent in the most important action is to engage with name of the Church Investors Group: companies to encourage a reduction in Antofagasta, ICAP, Intercontinental Hotels their carbon footprint, with the next stage Group, Kazakhmys, Rexam, Shire and being to utilise the Trucost data once a Thomas Cook. The CFB wrote directly policy on climate change has been agreed.
to Aggreko, Aveva Group, Beazley Group, Dignity, Charter International, Forth Ports, 4.7 The Church Investors Group (CIG)
Hargreaves Lansdown, International Hotels The Committee noted the continuing Group, Morgan Sindall, Tate & Lyle, United work done by CIG, an initiative aimed Business Media and Wood Group. The at enabling the Churches of Britain and replies received to date were noted by the Ireland to present an ecumenical approach Committee. The Committee also noted when dealing with companies on ethical the growing acceptance and influence of issues, and in making related public the CDP process.
statements. The Committee commended a paper commissioned by CIG on usury The CFB reported on the work of the as providing a theological examination Institutional Investors Group on Climate of a complex modern problem. It first Change (IIGCC) of which it is an active provided an outline of biblical teaching member. During the year IIGCC produced on usury, moved on to examine the a trustees' guide to the impact of climate development of Church teaching, before change on property investment. It also seeking to relate them to contemporary submitted a statement to the UN Poznan investment issues. Two areas of concern conference on climate change stressing were identified; home credit (door step investor concern that the Copenhagen lending) and sub-prime secured lending. summit must draw up a replacement for The research concluded that home credit the Kyoto Protocol which expires at the represented a usurious form of lending end of 2012.
that disproportionately affected the disadvantaged, whilst other forms Work was carried out investigating the of sub-prime were not necessarily feasibility of quantifying the carbon footprint of the CFB UK Equity portfolio. Having assessed various services, Trucost CIG issued a Policy Statement with Respect was commissioned to produce analysis. to Sudan, which deplored the current It was noted that the Trucost service situation in the Sudan, urged all parties was not limited to carbon dioxide and to work for constructive engagement, and would provide an equivalent measure for welcomed the contribution made by the other gases such as methane that posed Sudan Divestment Movement. In-depth a threat to the environment. The CFB reports on the Future of Nuclear Power and cautioned that the work would only give a Shell's tar sands project, both produced Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment on behalf of the Church of England, were non-drinking water supplies, were found to made available to CIG members.
contain pollution consistent with mining. Anglo American subsequently fenced It was also noted that the CFB and off these sites. In addition to the CIG members of the Committee had meeting the CFB participated in a meeting participated in a number of CIG between the company and members of the engagement initiatives: Extractive Industries Transparency Initiative investors group.
∞ Meeting with Chief Executive of EDF
Energy, the UK subsidiary of the The Committee also noted that the SRI French electric utility EDF, to discuss portion of the Norwegian state pension the issue of building new nuclear fund had sold its shares in Rio Tinto over power stations in the UK; concerns about the Grasberg mine. The ∞ Meeting with Chairman of Anglo
CFB had discussed these concerns with American to discuss key issues the company previously and will do so related to the company's sustainable again in the coming year. A CFB report development performance; on the European company Arcelor Mittal, ∞ Marks & Spencer and Unilever both
a large steel and mining company, was made presentations to members on considered, noting that the CFB held their approach to corporate social shares in Arcelor Mittal via the Epworth responsibility. Given the significant European Equity Fund. Two main areas for operations Unilever has in India, the concern were identified: health and safety issue of caste discrimination was and consultation with local communities. It was agreed that the next step should be to obtain further information from the 4.8 Investment in Mining Companies
company regarding these issues before There was regular contact with Anglo considering future action.
American over the year in relation to allegations raised by the NGO, Action Aid, 4.9 The CFB Ethical Review
on health and safety, local communities, The Committee highlighted the importance and water pollution. Management of the CFB Ethical Performance Review, had stressed the high commitment which allowed trustee bodies to meet the to safety by the new CEO, and had legal requirement to ascertain whether given detailed answers on the other their investments were managed in questions. Subsequent independent accordance with their SRI policy. The water quality tests found that neither a CFB voting record, ethical overview of UK school supply nor other drinking water sectors, list of ethically excluded European supplies mentioned by Action Aid were and UK companies (approx 8% of Eurofirst contaminated by mining pollution. Other 300 ex UK Index and 13% of FTSE All forms of pollution did exist, arising Share Index, respectively) and minutes perhaps from poor sewerage. Two sites, of the monthly CFB ethics meeting were which Anglo American states are used for all noted. After several years in which Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment the ethical policy had hurt investment missiles. More general humanitarian returns, the ethically adjusted index had concerns arose from the Israeli Navy's outperformed the FTSE All Share Index by blockade of Gaza in order to prevent 0.8% in 2008. A significant number of arms imports but which also curtailed CFB reports on individual companies were Palestinian fishing. The Committee received during the year (see section 2.2). advised that as there was sufficient The CFB reported on its regular dialogue reason to believe that these submarines with the GBOPHB, manager of the core could be used as nuclear weapons CFB US portfolio, on a variety of ethical platforms it clearly ruled out investment in issues. It had not proved possible to find Thyssen Krupp on ethical grounds. (Note a suitable ethical fund for Continental also section 4.2.) European equities, and consequently an ethical index tracker fund had been The CFB examined a number of companies established, operated by Barclays Global in relation to their military exposure using Investors but with the ethical screen the framework provided by the Policy on supplied by the CFB.
Companies with Military Exposure: 5 Regular Reporting Items
∞ Dassault Systemes, a producer of
shipbuilding design software with 5.1 Alcohol and Tobacco
no apparent link with any nuclear The CFB reported that historically the weapons platforms. The military French luxury goods company Compagnie exposure was insufficient reason for Financiere Richemont had been excluded ethical exclusion and the fact that on ethical grounds due to holding a large it was 50% owned by the defence stake in British American Tobacco (BAT). contractor, Dassault Aviation, was not However, after restructuring, the company regarded as relevant. The Committee had now sold its stake in BAT and the confirmed the CFB's view that there Committee agreed that it should therefore was insufficient cause for ethical be deleted from the European ethically excluded list.
∞ Morgan Crucible, a UK engineer, took
a controlling stake in NP Aerospace, a company specialising in producing The Committee considered a CFB briefing parts for the defence and aerospace note on the diversified German engineering industries, which include body and and engineering company Thyssen Krupp, vehicle armour protection. Following whose shipbuilding division represented the acquisition revenues derived from 3.9% of the total group including military sales were likely to jump from submarines. Of particular concern were 5% to over 15%. The Committee three Dolphin-class submarines built advised that it should be excluded for the Israeli navy. There were credible from investment.
although unproven allegations that these ∞ Bodycote, a UK engineer, had been
submarines could carry nuclear cruise contacted due to concerns over Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment the company's military exposure. by the company of UK farmers, a point However, it had confirmed that none also reaffirmed for Ireland. Allegations of Bodycote's facilities operated relating to supply chain concerns made specifically for the manufacture by War on Want against Tesco, ASDA, and of weapons or ammunition. The Primark, and by both Panorama and the Committee confirmed the CFB's view Observer against Primark were noted. that there was insufficient cause for There was particular concern that Primark, ethical exclusion.
a subsidiary of Associated British Foods (ABF), had been singled out three times. The Committee was also pleased to note The CFB decision to engage with ABF the signing of the UN Convention on was endorsed by the Committee. The Cluster Munitions.
Committee noted the correspondence between the CFB and Morrison 5.3 Corporate Governance and
Supermarkets over the latter's improved social responsibility performance.
The CFB reported on the Barclays EGM, and explained that while the CFB was not happy with the way the company had A joint CFB/Connexional Team delegation ignored shareholders' pre-emption rights, met with Royal Dutch Shell. Subjects it had voted in favour of the resolution. discussed included the company's CFB staff had participated in a meeting approach to Global Corporate between BP and members of the Extractive Responsibility, Health and Safety and the Industries Transparency Initiative investors Corrib gas project. A follow-up meeting group. The CFB's decision to become a with the company on Nigeria was to be signatory to a letter from the UN Principles arranged. A press article concerning for Responsible Investment (PRI) calling Canadian Tar sands and the environmental for improved US corporate governance was damage caused by their extraction and noted. In 2008 the CFB voted against 20 processing were considered. The CFB resolutions authorising the appointment/ also participated in a PRI internet-based reappointment of auditors and against 74 debate on Shell's proposed expansion remuneration reports with a further 33 in Canadian oil sands, which was feared to have a major negative environmental impact. However, it was believed that the 5.4 Supply Chain Issues (including Debt
rapid decline in the oil price put a question Relief and Fair Trade)
mark over the commercial viability of A CFB briefing note on supply chains the project. It was noted that ECCR had was noted. The decision by Tesco to produced a new report on Shell and that stop sourcing products from Zimbabwe it planned to bring a resolution relating was noted, as were allegations of poor to the company's operations in the Artic employment practices by Tesco in the Beaufort and Chukchi seas. An ECCR US. The Committee expressed its report on corporate water usage was also continuing unease about the treatment Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment 5.6 Gambling
had decided to vote for the resolution in The only significant discussion under this line with its position on animal welfare heading during the year was in relation having met with both the company and to BSkyB (section 4.5). The Committee with the television company promoting also commended the public criticisms the resolution. It was noted that cheap by the Connexional Team of government chickens were an important source of proposals to relax gambling regulations.
animal protein for poor families.
5.7 Medical and Food Safety Issues
5.8 Human Rights
The CFB reported that it had contacted A project proposal for or from the Joint GlaxoSmithkline (GSK) over allegations the Public Issues Team to examine Human company had failed to publicise adverse Rights and the Corporate Sector was safety information on its Paxil/Seroxat noted. The Committee welcomed the antidepressant drug. However, it was prospect of structured theologically-based noted that that the conclusions of the work on the subject. The Committee meta-analysis, on which the criticisms noted that the CFB had voted together with were based, were not particularly the GBOPHB in favour of Resolutions for robust. The Committee considered the Chevron Annual General Meeting on correspondence between the CFB and GSK human rights with particular reference to over allegations of delays in publication Burma/Myanmar. The Committee noted of drug testing results, and it agreed that that continuing work was being carried out the company had provided a thorough on the subject of caste discrimination, and and extensive reply to the CFB, which considered the Dalit Solidarity Network constituted a satisfactory response to report entitled: Another Apartheid? The the CFB's concerns. It was noted that CFB reported that the CIG Statement on publication of clinical trial results of Sudan had been used to satisfy concerns this kind were likely to take up to six expressed by a member of the Lay months although there was currently no Employees Pension Scheme in connection legal obligation to publish results in any with companies operating in the Sudan.
particular time frame. New legislation was being put in place which would tighten 5.9 Media
up procedures in this respect. A revised Work in this area was dominated by BSkyB version of the Access to Medicines (see section 4.5). The CFB reported Index to which the CFB is a signatory was that it had engaged with Vodafone on the subject of additional protection for children by age profiling.
The Committee considered a Special Shareholder Resolution for the Tesco Annual General Meeting instructing Tesco to adopt the ‘five freedoms' for The CFB reported that apart from the battery chickens as part of its animal GBOPHB it had met and corresponded welfare policy. The CFB reported that it with overseas Church bodies: Glebe Asset Methodist Conference Agenda 2009
15. Joint Advisory Committee on the Ethics of Investment Management, Uniting Church of Australia, EIRIS Foundation (Trustee Board member). the Evangelical Lutheran Church of Other contacts included the Ecumenical America, Mennonite Church in Canada, the Council for Corporate Responsibility and Church of Sweden, and the Dutch Pastors UKSIF. It also used the services of Ethical Pension Fund. It was also actively involved Investment Research Services (EIRIS), in: the Church Investors Group (Steering PIRC and Trucost.
Committee member - see section 4.7); the Institutional Investors Group on Climate 6 Conclusion
Change, the Carbon Disclosure Project, UN The Committee judges that the CFB has Principles for Responsible Investment, the managed the funds under its control in Access to Medicines Index, the Extractive accordance with the aims of the Methodist Industries Transparency Initiative and the The Conference received the Report. Methodist Conference Agenda 2009

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