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Ethics

Balancing
opportunity with integrity

The CFB is committed to seeking both superior returns and improving ethical standards.

Positive approach

We seek to improve the ethical profile of our portfolios by avoiding investments in particular businesses and encouraging better practices in others.

Company engagement

We view our investments as long term partnerships with company managements. We engage in constructive dialogue and practise active voting to challenge social, environmental and ethical considerations.

Integrated process

Ethical research integrated with financial analysis is key to our investment process. Fund managers are responsible for both financial and ethical analysis.

Clear policy

Comprehensive policy statements and position papers offer a reference for clients and a clear focus for fund managers.

Theological grounding

The Joint Advisory Committee on the Ethics of Investment provides a unique and robust mechanism for testing ethical investment decisions against theological principles.

Quarterly review
March 2020

COVID-19

The developing COVID-19 pandemic and the response to it has dominated events this quarter, and also impacted our ethical work. Many companies are receiving government, ultimately taxpayer, subsidies in the form of grants, including to maintain jobs, and guaranteed loans. Companies’ priorities have been ensuring their survival and the well-being of their employees. We recognise that and so we will not for the time being be voting against the re-election of board chairs and executive directors at AGMs, unless there has been particularly poor performance responding to climate change. This temporary policy will be reviewed at the end of Q2.

... Continue reading →

Climate change - oil & gas companies

We have completed our review of 15 oil and gas companies, examining the extent of the alignment of their business models and investment plans with the Paris Agreement. We assessed climate change scenarios and looked at 25 metrics for each company. The Paris Agreement targets an average temperature rise of ‘well below 2°C’ but we were also mindful of growing calls for a 1.5°C target. A new development was the inclusion of companies’ Scope 3 emissions targets and ambitions in our assessment.

... Continue reading →

Meat producers

Following the results of the CFB carbon footprint analysis, and in line with our 2009 policy, we have engaged with both Cranswick and Hilton Food Group. These companies were found to have higher than average carbon footprints by Trucost, due to Scope 3 emissions from the meat supply chain. We asked what actions the companies were implementing to reduce supply chain emissions, as well as what measures they were taking to reduce those Scope 1 and 2 emissions within their control. We were encouraged by Cranswick’s response: looking at the impact of animal feed of the animals, steps to reduce waste, and a commitment that all of its owned farms will be carbon neutral by 2030. We look forward to hearing back from Hilton Food Group in due course.

... Continue reading →

More quarterly reviews

Voting

Reports

q1 2020 image
March
2020
q4 2018 image
December
2019
q3 2019 image
September
2019
q2 2019 image
June
2019

Policy

Voting policy →

Serving
the Methodist Church

The Joint Advisory Committee on the Ethics of Investment (JACEI) provides CFB with advice on ethical issues and reports to the Methodist Conference on CFB compliance with the aims and objectives of the Church.

JACEI Report

The JACEI Report is produced for the Methodist Conference outlining its activities each year. An abbreviated version is also produced. Together they provide a comprehensive survey of the issues that we have addressed.

Joint Advisory Committee on the Ethics of Investment Report 2020 Joint Advisory Committee on the Ethics of Investment Report 2019 Joint Advisory Committee on the Ethics of Investment Short Report 2019

The Climate emergency

Evidence continues to mount that the Earth is warming and yet greenhouse gas emissions continue to rise.

Read the CFB and JACEI's response →

Working
in partnership

Carbon Disclosure Project Church Investors Group IIGCC, Institutional Investors Group on Climate Change Access to Medicines Index Access to Nutrition Index FAIRR ECCR, The Ecumenical Council for Corporate Responsibility EITI< The Extractive Industries Transparency Initiative Institutional Shareholder Services Sustainalytics TRUCOST UNPRI UKSIF Business Benchmark on Farm Animal Welfare, BBFAW

Active membership of global networks and partnerships provide a powerful united voice when dealing with multinational corporations and assist us and our clients to make informed ethical investment decisions.

The Stewardship Code

The CFB supports investor engagement with companies and is a signatory to the Financial Reporting Council's Stewardship Code

Montréal Pledge

The CFB is a signatory of the Montréal Carbon Pledge and is committed to a voluntary disclosure of the results. Read the CFB's Montréal Pledge Disclosure.

Have your say...

Our ethics are based on Methodist Church principles. We welcome feedback on an ethical issue. If you would like to discuss these please contact CFB Relationship Manager Christophe Borysiewicz on 020 7496 3630 or Chair of JACEI Stephen Wigley on 020 7467 5245.