THE General Synod’s expressions of gratitude for the decision by the National Investment Boards (NIBs) to disinvest in oil and gas companies were mixed on Saturday, with lament at the failure of the Church to effect significant change in the fossil-fuel industry.
The First Church Estates Commissioner, Alan Smith, and the chair of the Church of England Pensions Board, Clive Mather, gave a presentation explaining the decision last month to ditch church investments in oil and gas companies.
Speaking afterwards, the Bishop of Norwich, the Rt Revd Graham Usher, the Church’s lead bishop for the environment, paid tribute to the “incredible work the NIBs have done”. He regretted, however, that the attempt to bring about change from within had not borne fruit. It was a “great source of lament”, he said, that fossil-fuel companies had not done more to transition to net zero. “Ultimately we have failed.”
The mood within Synod was a “nuanced balance”, he said: “very optimistic and hopeful, whilst also recognising we’ve got a long way to go.”
In 2018, the Synod had passed a motion instructing the NIBs to jettison their investments in fossil-fuel companies unless they could prove that they were aligned with the targets set in the Paris Agreement (News, 8 July 2018).
Despite some progress, the target hadn’t been met, Mr Smith explained to Synod: European oil and gas companies had “rolled back” on targets, and had failed to adequately invest windfall profits in funding the climate transition.
“It was good we pushed as hard as we could, and it was good we have demonstrated our intent, but it is still sad that we did not succeed,” Mr Mather said.
He added that the NIBs would continue to engage with the energy industry “using every channel that we can”, though they will no longer being able to attend shareholder AGMs.
Sam Atkins/Church TimesChristian Climate Action protesters outside the meeting of General Synod on Saturday
The Transition Pathway Initiative (TPI) was one way in which they could continue to engage, he said, and described it as a “gift” as it was available for use free of charge.
The TPI, which was developed by the Pensions Board in conjunction with partners such as the London School of Economics, tracks the progress that companies are making in transitioning to net zero.
In June, before the decision to disinvest had been announced, the chief responsible-investment officer of the Pensions Board, Adam Matthews, said that he thought shareholder engagement could make a real difference.
At Shell’s AGM in May, the Pensions Board had voted against the re-election of the board of directors, and supported a motion that would require the company to cuts emissions drastically, but neither move received more than 20-per-cent support (News, 26 May).
“The engagement of the NIBs must continue, and double, even if they’re not shareholders”, Bishop Usher said. “In every way we have to be prophetic on this issue.”
Many of the contributions from the floor of Synod praised the decision to disinvest, and expressed hope that those outside the chamber would be inspired by the Church’s actions.
Others, though, expressed reservations about the move. Clive Scowen (London) asked how it would help if the shares were sold to someone who did not press for the ethical concerns that the NIBs had advocated.
In response, Mr Smith said that the time had come to “shake the dust from our feet” — but that they would consider reinvesting in oil and gas companies if they could show they were on track to meet climate commitments.
The decision was also guided by financial good sense, he said: “Companies that are not meaningfully allocating capital in support of the transition are not the companies of the future.”
Protesters from Christian Climate Action (CCA) demonstrated outside the chamber on Saturday, and spoke to the Archbishop of Canterbury before the Synod session began.
According to a press release from the campaigning group, Archbishop Welby told demonstrators that “fossil-fuel companies will not stop extracting unless there is a strong disincentive. such as a carbon tax.”
Although the central bodies have disinvested, individual dioceses may still be involved. On Sunday morning, CCA members carried out a “die-in” outside York Minster, before the communion service began, and called for the diocese of York to follow the central Church and sell its investments in fossil-fuel companies.