Linking Our Investments To Our UU Values Sponsored by the UUA Committee on Socially Responsible Investing Basic Workshop Committee on Socially Responsible Investing Established by the UUA Trustees in 2001: • Joan Cudhea, Chair • Lucia Santini-Field, Chair UUA Investment Committee • Diane Olson, UUA Moderator and Trustee Liaison • Jim Gunning • Stephanie Leighton • John Keller • Pam Allen-Thompson, Board Liaison • Susan Leslie, Staff Liaison, Congregational Advocacy and Witness • Larry Ladd, UUA Financial Advisor, Ex-Officio • Jerry Gabert, UUA Treasurer, Ex-Officio 2 Your Presenters Fill in names here 3 Socially Responsible Investing What Is It? Bearing witness with our investments, based on our values 4 Why Social Investing? Demonstrate faith in action Tailor to fit your priorities Increased leverage for social change Your parish will make a difference You can make a difference Elimination of financial and fiduciary obstacles No compromise on financial return 5 Where Are You in the Process? Just learning? Involved with SRI as an individual? Trying to get congregation interested? Trying to determine options? Talking to your/a financial advisor? Considering action or needing process help? Getting resistance or acceptance at church? Ready to act? Already engaged in the process? 6 Our Presentation Today Four Aspects of SRI: The Basics How Can Your Congregation UUA Screens and Social Activism 7 Four Aspects of SRI Four Aspects of SRI #1 Screening Investments in your Portfolio #2 Voting Shares Owned #3 Petitioning Company Managers to be Better Citizens #4 Investing in Community Development 9 #1: Screening Investments in your Portfolio Negative Screens - Examples of industries and companies to avoid: Tobacco Weapons and military contractors Gambling Nuclear energy 10 #1: Screening Investments in your Portfolio Positive Screens- Examples of company policies to favor: Positive employment policies and practices Sound environmental policies Good community relations Diverse boards 11 #2 Voting Shares Owned Annual meeting proxy solicitations Legal and financial issues Corporate Governance / Accountability issues Social and environmental issues 12 #2 Voting Shares Owned Corporate Governance/Accountability: Board composition and diversity Independent Board members Selection of auditors Nomination committee composition and others 13 #2 Voting Shares Owned Social Issues: Equality in employment Corporate Accountability Militarism and weapons Health and tobacco Global Human Rights and others 14 #2 Voting Shares Owned Environmental Issues: Global Warming Nuclear power CERES Principles Genetic engineering of food Waste disposal and others 15 #3 Petitioning Managers to be Better Corporate Citizens Identify issues, working with others Determine which companies to approach Open a dialogue with managers File resolutions for Annual Meetings Negotiate meaningful actions 16 #4 Invest in Community Development Examples: Affordable Housing Community Banks Local Community Development Organizations and others 17 #4 Invest in Community Development Join the 1% for Community Movement 1% of investments dedicated to your community Use Community Development Financial Institutions (CDFI’s) Matching funds available from UUA For new and existing investments 18 #4 Invest in Community Development Criteria for UUA Matching Funds: Loans must be listed with: The National Community Capital Association - Philadelphia Another source is the UUAHC Unitarian Universalist Affordable Housing Corp - Wash DC. 19 How Can Your Congregation Get Involved? There are different paths you can take Set Your Own Path... Start in one area and expand Is one screen or area most important ? Look into Community Investing 1% for community program Consider SRI Mutual Funds if moneys to be invested are < $750k Talk to your investment advisor about SRI. Set a new direction Or talk to an SRI advisor 21 Consider UUA Pooled Funds Consider investing along with UUA Endowment according to UUA SRI policies. • Go to UUA website or contact Treasurer’s Office for more information. 22 Where to Invest? Some Options Small Endowments UUA Pooled Funds SRI Mutual Funds Medium Sized Endowments SRI Mutual Funds Individual Securities Large Endowments Self Managed (by Investment Committee) Independent Investment Manager 23 Determine Church Team Local Parish Roles can vary church to church Investment Committee Board Social Justice Committee Minister Annual Meeting is good venue to discuss and vote 24 A Great Place to Start: Link UU Values with Social and Environmental Investment Issues Follow guidelines set by UUA Investment Committee Screens for stock selection Targets for shareholder activism See Handout of UUA Approved screens and issues 25 Which Issues Should You Pursue? Consider Following UUA Screens Screens for Stock Selection Approved by UUA Trustees Employee Impact Customer Impact Community Impact Environmental Impact 27 Employee Impact Avoid companies that: Have a pattern of NLRB cases Are on the AFL-CIO boycott list Are egregious OSHA offenders Are directly involved in violations of basic human rights Use forced labor, child labor, sweatshops 28 Employee Impact Favor companies that: Have above average women and minorities in workforce Strong awareness of affirmative action, diversity, antiracism Nondiscrimination policies include sexual orientation Positive union relations 29 Employee Impact Favor companies with: Above average compensation and benefits Demonstrated commitment to work-life balance Strong emergency and safety programs Explicit standards for their own and vendors' facilities here and abroad Transparency on workplace issue challenges 30 Customer Impact Avoid companies with: Significant weapons production Tobacco products Unhealthy products Misleading or irresponsible marketing, including stereotypical depictions of women or minorities 31 Customer Impact Favor companies that: Have safe and useful products of good quality Responsible pricing and marketing practices Good product safety concerns 32 Community Impact Avoid companies that: Fail to maintain good CRA ratings Engage in predatory lending practices Lack regard for community issues (pollution, land use) 33 Community Impact Favor companies that: Have "outstanding" CRA rating Good accountability with communities and the public Strong economic development programs (women and minorities) Innovative community involvement (sabbaticals, volunteers) 34 Environmental Impact Avoid companies that: Have serious environmental violations Have been negligent in dealing with environmental problems Have major environmental disasters Engage in global destructive practices (rainforest, ozone) Do not disclose environmental information 35 Environmental Impact Favor companies that: Reduce waste and conserve natural resources Innovate programs to reduce use of energy, water, land Good compliance record Strong environmental management systems Commitment to standardized environmental reporting 36 Voting Proxies Security and Exchange ("SEC") rules Non-binding voting, but important PR Certain % needed to return on the issue Management controls most proxies Vote count of 5 - 10% is good first year 10 - 15% is good in second year Recently have received votes of over 20% on some issues 37 Shareholder Activism CSRI focused issues: Apply Affirmative action - disclosure of EEO data Promote the Glass Ceiling Commission's recommendations Reduce greenhouse gas emissions Implement a code of global human rights standards Prohibit discrimination based on sexual preference Protect bio-diversity, particularly in the Arctic National Wildlife Refuge 38 Some Companies that Received Resolutions Affirmative Action or Glass Ceiling: American International Group Halliburton ConocoPhillips Johnson & Johnson Dollar General Merck EMC Target Corporation Fleet Bank 39 Other Companies That Received Our Resolutions Environmental Issues: Bristol-Myers Squibb - greenhouse gas emissions Chevron Texaco - greenhouse gas emissions AES Corp - greenhouse gas emissions BP Amoco - bio-diversity 40 Additional Resolutions Global Human Rights Standards: Home Depot Colgate-Palmolive Federated Department Stores H.J. Heinz Non-Discrimination, Freedom of Sexual Preference: Exxon 41 Socially Responsibly Investing Is WORTH doing There are many paths to success Choose the one that fits your needs Ask the UUA CSRI for help 42 Thank You For Attending Questions?