Highlights

• Church Commissioners for England tweaks restrictions on defence-related investments.
• Companies operating in controversial weapons and oppressive regimes will be excluded.
• Policy applies sharper ethical criteria for NATO and UK defence investments.

The Church Commissioners for England, the Church of England’s permanent endowment fund, has come up with an updated defence investment restrictions policy.

The policy substitutes the former version from 2010 and aligns with guidance from the Ethical Investment Advisory Group (EIAG) and internal reviews.

The revision is with respect to companies operating in defence activities, particularly in evaluating links to oppressive regimes and controversial weaponry, while still considering ethical standards such as human rights, climate, nature, and labour.

Read More: Church of England Allocates £20M for Carbon Reduction

New criteria for defence-related investments

The updated policy gets rid of a simple revenue-based threshold and introduces a detailed assessment of company activities. Companies that previously qualified under the old 10% revenue rule may now fall outside the scope, and some firms previously restricted may now become investible.

For example, a firm providing protective equipment to the UK Ministry of Defence could be considered, whereas companies from oppressive regimes face more scrutiny. This approach helps prioritise ethical conduct in defence investments.

Exclusion of controversial weapons and links to oppressive regimes

Companies producing cluster bombs, landmines, chemical or biological weapons continue to be strictly excluded. Screening extends to all potential investments for links to regimes associated with human rights violations.

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The bar for investing in defence-related companies remains high and shows a commitment to ethical standards in areas, including human rights, labour rights, and environmental impact. Companies working with NATO or UK defence in non-controversial roles can be considered if they meet these criteria.

Alignment with ethical investment policies

All defence investment decisions are guided by comprehensive ethical investment policies. This includes ongoing consideration of climate change, nature, and human rights.

The updated policy gives teeth to the criteria used to assess investments, thereby giving a more rational, principled approach to defence fund allocation. The changes aim to balance financial management with ethical responsibilities and ensure that investments align with the Church’s standards and values.

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