FAN Climate Webinar January 9, 2014

Fossil Fuel Divestment and Competitive Ecological Reinvestment

Francis in the Public Square

St. Francis’ Letter to Rulers

To all mayors and consuls, magistrates and rulers throughout the world, and to everyone who may receive these letters:

Brother Francis, your little and despicable servant in the Lord God, sends his wishes of health and peace to all of you.

St. Francis’ Letter to Rulers (cont.)

Pause and reflect, for the day of death is approaching. I beg you, therefore, with all possible respect, not to forget the Lord or turn away from His commandments by reason of the cares and preoccupations of this world, for all those who are oblivious of Him and turn away from His commands are cursed and will be totally forgotten by Him. And when the day of death does come, everything which they think they have will be taken from them. And the wiser and more powerful they may have been in this world, so much greater will be the punishments they will endure in hell.

Fossil fuel divestment and clean energy reinvestmentin faith communities

Overview

BackgroundWhy Divest

&Reinvest Now!Resources

GreenFaith’s Mission

GreenFaith helps diverse religious communities put their beliefs into

action for the Earth.

www.greenfaith.org

Background

Context of frustration and desperation

Starts with coal on college campuses

The “filthy fifteen”

McKibben in Rolling Stone, July 2012

300+ campuses, growing number of municipalities

Faith-based/denominational efforts in early stages

Divest & Reinvest Now! Goals

Create and share resources to support faith-based discussion and action

Educational

Resolutions

Support leaders and activists in diverse denominations

Organize multi-denominational gatherings for leaders/activists

Publicize

Initial Reactions Galvanizing

Skeptical

That it can make a difference

That it is financially responsible

The wrong target “Divestment fatigue”

Anti-Israel concerns

Frequently used instead of last resort

Preference for engagement through shareholder advocacy

Background for Faith Groups

Long history of ethical use of money

Long history of investment screening/ divestment

Tobacco, alcohol, weapons manufacturing, prison construction and management, gambling, financial service firms, pharmaceuticals, adult entertainment, pork production, and more

Why Faith Groups Divest

Reason #1: Responding to Grave, Large-Scale Harm

Activity causing grave injury or death on a large scale

Degradation of human dignity

Integral to industry or government functioning

This reason suffices for some faith groups

Conservative Christian divestment in alcohol, tobacco, adult entertainment/pornography

Why Faith Groups Divest

Reason #2: Responding to Intractable Resistance

Religious preference for some attempt at dialogue

ICCR, shareholder activists – retain influence through ownership

Must exhaust other alternatives – divestment as last resort

Industry/government must demonstrate stubborn resistance to change

Industry counter-attacks, false research, PR

Why Faith Groups Divest

Reason #3: Redefining Society’s Moral Code

Relational, discussion-based

Create reputational risk; modern form of shunning/shaming

From inconceivable/laughable to irritating to plausible

Uncertain impact– tobacco vs alcohol

South Africa as strong example

Success depends on credible case for moderates

Fossil Fuel Meets the Criteria Massive harm

More than all other divestment targets of the past century combined

Fundamental resistance

Skeptic science, malign influence on government

Opportunity to influence society

Desperation and tragic aspect of divestment

Lack of success through other strategies

Reinvestment

It’s not the 60’s or the 80’s

Protest not enough

Values-based investing

In own facilities

Religious facilities as ‘green laggards’

In clean energy/clean tech

Divestment, Reinvestment and Sacrifice

Misguided effort to downplay risk

“We won’t lose money – fund managers will fix it.”

Denial of risk.

Accept that moral stance involves a sacrifice.

Potential financial sacrifice.

Attention, time, for fragile institutions

GreenFaith’s Resources

Web-based resource center

Educational tools

Statements, sermon aids, discussion guides

Sample resolutions

Media and reports

http://greenfaith.org/programs/divest-and-reinvest

GreenFaith’s Resources

Monthly webinars

Biblical/theological

Practical/strategic

Sample resolutions, essays

Sermon and discussion group resources

Support for organizers/activists

Campus-based efforts

Final Notes

The depth and effectiveness of the discussion is the ultimate value of divest/reinvest

Tragic naturePlausibility for moral moderates

Contact Information

The Rev. Fletcher Harper

732-565-7740, ext. 301

revfharper@greenfaith.org

Skype – revfharper

Twitter - @greenfaithworld

www.greenfaith.org

Competitive Ecological Investing by Frank Morris

What does it mean to invest in the Common Good?

Global Fresh Water Crises

There are concerns of a global fresh water crises.http://www.unesco.org/bpi/science/content/press/anglo/10.htm

Thermo electric power plants

11% 1%

31%

1%4%2%1%

49%

Percentage of H2O usage

Public SupplyDomesticIrrigationLivestockAquacultureIndustrialMiningThermoelectric Power

Thermo electric power plants (centralized coal, oil, nuke and gas) claim 40% of Americas fresh water usage.lhttp://pubs.usgs.gov/circ/1344/

Fresh Water, Clean Energy, Jobs

Electricity Storage

Renewable

Energy

Energy Efficienc

y

Employing energy efficiency, renewable energy, and electricity storage-helps to maintain fresh water supplies and provides electricity with less pollution, and provides new jobs and industries.

Retrofitting

 Johnson Control's energy efficiency retrofit, helped the Empire State Building use substantially less electricity. 

NYC Solar Energy Potential

 These energy cost savings, after a energy efficiency retrofit, can often be used to pay for the retrofit in less than 5 years.  http://www.energytaxsavers.com/

NYC has 5800 mega watts of solar energy potential.http://www.nytimes.com/2011/06/16/science/earth/16solar.html?_r=0

European Uncertainty in Utilities

In Europe, alternative energy has caused uncertainty for utilities, resulting in 500 Billion euros of value destruction.    http://www.economist.com/news/briefing/21587782-europes-electricity-providers-face-existential-threat-how-lose-half-trillion-euros?fsrc=scn/tw_ec/how_to_lose_half_a_trillion_euros

Solar Roofs in Germany

 In Germany, 1.5 million citizens have installed solar roofs.  Solar roofs are dropping in cost, as their efficiency improves. hese solar roofs provide a distributed income for homeowners.  The model is applicable wherever the sun shines.

Urban Population Growth

As global populations grow and urbanize, water utilities will provide improved health and quality of life.As global populations grow and urbanize, rail and bicycle transportation will continue to grow and improve.

Organic, Fair Trade, and EPENX

 Fair trade and organic foods are a viable, distributed, and growing. http://www.reuters.com/article/2011/07/05/us-un-farms-idUSTRE7641MT20110705

EPENX

Firms providing organic foods, metals recycling, rail, bicycles, alternative energy-renewables-storage, water utilities, bio-remediation and pollution control are building a competent, more ecological infrastructure.  The Epiphany Global Ecological Mutual Fund EPENX,  is a catholic faith based mutual fund investing in ecological solutions

Ecological infrastructure distributes wealth and income, where as fossil and commodity based infrastructure-concentrates wealth and income

An Ecological Economy of Communion

An "Ecological Economy of Communion" (competing within the global, exploitative market economy) can thrive, and is thriving now, to provide dignity, quality of life, and the Common Good.

Next Steps

Pray About how best to bring your faith to Investing.

Review your own Investment Portfolio

Investigate the Investments of your business or community

Meet with Investment committees to discuss alternative options (Bring a friend!)

Research Mutual Funds like EPENX or other sustainable investment options for comparisons.