The Southlands Methodist Trust has taken a major step towards a carbon-free future by deciding to move its investments into a Climate Stewardship fund. This is an investment vehicle which encourages the transition away from a carbon-based economy by focusing on companies which are actively helping to tackle the climate emergency.
The trustees of the SMT discussed and then decided on the significant move in the first half of 2022. They chose to move all their investments in the Epworth Climate Stewardship Fund for Charities, an innovative investment vehicle which was launched in May 2020. So far the SMT has moved around half its investments at the end of 2022, with plans to complete the switch over the next 18 months.
The fund is operated by Epworth, an investment manager which is owned by the Methodist Church and which places particular emphasis on ethical, Christian decision-making. Speaking about the decision, SMT chair Revd Dr Tim Macquiban said:
We take the challenge of climate crisis very seriously, and felt that as a church foundation it was no longer viable to continue doing business as before.
We looked at a range of options for managing our investments in a way that encouraged a move away from the carbon economy, and were impressed by the principles that underpin Epworth’s new investment vehicle. The Climate Stewardship Fund takes an innovative approach to investment, focused mainly on UK companies which are doing as much as they can to reduce the risk of climate change.
Previously the trust’s investments had been placed in ethical funds, but the new policy marks a switch towards more actively environmental business operations. As might be expected, the climate fund also avoids investing in companies which are active in fossil fuel extraction and refining.
Dr Macquiban added that the SMT was keen to promote the message that switching from carbon-heavy investments was a timely step for other institutions to consider.
We think this is the most responsible way to invest in the long-term future of both the trust and the communities we serve.
Any short-term gain in opportunistic, carbon-heavy investment is rapidly becoming indefensible for institutions which place importance on their values, on ethical behaviour, and on the wellbeing of future generations. As part of an educational institution as well as a church foundation we feel a particular responsibility to step up to the plate on this issue.
The principles behind the Epworth investment strategy can be seen online. For more information and contact details for the Southlands Methodist Trust, explore this website.