Employing Portfolio Power in Pursuit of Peace
Investors choose socially responsible funds because they care how their dollars are invested. In the case of Israel-Palestine, investors want to use the power of their portfolios to discourage profiting from a political situation that, while ripe for business, nevertheless violates international law and human rights.
The General Synod 2006 resolution, “Concerning the Use of Economic Leverage in Promoting Peace in the Middle East,” called on United Church Funds, the Pension Boards and other ministries of the church to engage with corporations to end profit-making from the Israeli Occupation of the Palestinian Territories. United Church Funds has taken seriously that call, helping to charter the Ecumenical Action Group for a Just Peace in Israel-Palestine in 2007, a task force comprising more than 20 Christian denominations and religious orders. Together, this group has participated in several shareholder resolutions and corporate engagements with, among others —
- Caterpillar whose equipment is used to tear down Palestinian homes, rip out ancient Palestinian olive groves, and build the Wall across Palestinian land
- Motorola whose equipment is used at checkpoints that prevent Palestinians from moving freely, whose cell towers are erected in Israel settlements built in Occupied land to both bypass Palestinian cell systems and enhance Israeli Defense Force communications in Palestine, and whose components have been used in bombs
- Hewlett-Packard whose supply chain includes manufacturing facilities in the illegal settlements
Corporate engagement takes a long time — and a lot of patience. The anti-apartheid movement needed 20 years before seeing change in South Africa. But good things have begun to happen in Israel-Palestine: Motorola has sold the division that made the bomb components mentioned above. And Caterpillar has begun to talk about its expectation that Caterpillar equipment be used in compliance with international law.
Small steps, but the Ecumenical Action Group continues to seek dialogue with corporate management, and is organizing a trip in early 2010 to help educate managers who are often surprisingly unfamiliar with the situation on the ground. As long as investors like United Church Funds own shares of companies profiting from the Occupation, we can continue to participate in activities that can bring about an end to corporate misbehavior. While a more dramatic step, divestment eliminates the possibility of engagement. So with our ecumenical partners, we are continuing to present and pursue the values of the UCC to promote peace in the Middle East.
Net Asset Values
as of 09/03/2010
| Fixed-Income | 4.7382 |
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| EQUITY FUNDS | |
| Domestic Core | 8.7884 |
| International | 10.3561 |
| Small Cap | 8.2327 |
| Total Equity | 9.1517 |
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| BALANCED FUNDS | |
| Conservative | 10.2429 |
| Moderate | 7.4552 |
| Aggressive | 9.4655 |
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