In 2023, the Church Commissioners excluded more than 800 companies from their investment portfolio on ethical grounds, including 38 firms that failed to engage over their connections with Russia.
These exclusions are detailed in the Commissioners’ latest stewardship report, An Ethical and Responsible Approach, published last week.
The Commissioners’ endowment fund grew to £10.4 billion by the end of 2023, up from £10.3 billion the previous year.
The report reflected their commitment to distribute £1.2 billion over the 2023-25 triennium to support the Church's mission, a 30 per cent increase from the prior period.
However, this commitment comes amid global economic instability and an escalating climate crisis, noted Alan Smith, First Church Estates Commissioner in his forward to the report, seen by Church Times.
The number of companies excluded from direct investments surged to 844 in 2023, a 94 per cent increase from 2022.
The exclusions span sectors such as climate change (248 companies), alcohol (124), gambling (116), defence (104), and tobacco (68).
The Commissioners also disinvested from fossil-fuel companies due to their failure to align with the Paris Agreement, continuing their push for climate responsibility.
Additionally, 113 companies were excluded for "special reasons" such as unresolved controversies or connections to Russia.
Quarterly portfolio reviews ensure compliance with international norms and human rights, and disinvestment is considered when engagement fails.
Most engagements in 2023 addressed environmental (51 per cent) and social issues (49 per cent), focusing heavily on climate change and human rights.
The Commissioners cast over 13,000 votes in shareholder meetings, opposing or abstaining from 22.7 per cent of management resolutions.
Looking forward, the Church Commissioners pledged £100 million in 2023 to address the lasting impacts of the transatlantic slave trade, acknowledging their historical ties to this injustice.
Smith emphasised the importance of this reflection, noting that it shapes how the Commissioners aim to invest ethically for future generations.