The Church Commissioners for England, which manages the Church of England’s donated assets, has updated its ethical guidance on investing in funds relating to weapons and defence.
The policy revision is the first update since 2010, and follows recommendations from the Ethical Investment Advisory Group.
Previously, the Commissioners were allowed to invest in a large company from an oppressive regime – provided that less than 10 per cent of its revenue came from weapons used to attack. Yet investments in funds relating to weapons used to defend the UK were banned above the ten per cent threshold.
The updated guidance makes it more difficult to invest in companies linked to oppressive regimes but enables more investment into UK and NATO-aligned defence businesses.
Companies involved in creating controversial weapons, such as cluster bombs, landmines, and chemical weapons, remain strictly excluded.
A statement read: “All potential investments will be screened for controversies and for links to oppressive regimes. The bar to investing in defence businesses will remain high.”
Last month, the UK government unveiled a new laser defence system, DragonFire, designed to shoot down weapons and spy drones. The Ministry of Defence said it is capable of hitting a £1 coin from over a kilometre away and will be fixed to Royal Navy ships.
The Church Commissioners have not named any specific funds which they will invest in under the new rules, but said they aim for a “rational, responsible” approach.