Since 1972, Anglican Financial Care (AFC) has been dedicated to ethical investing, guided by Christian values. AFC’s investment philosophy centres on the belief that economic decisions are inherently moral choices, grounded in the mission to serve our members’ financial interests while contributing to God’s work of restoration in the world. As such, AFC prioritises investments that provide risk-adjusted returns for the benefit of scheme members, and that also take into account human flourishing, sustainable development, and long-term global well-being.
This year, AFC took a significant step in this mission by endorsing the Fossil Fuel Non-Proliferation Treaty Initiative, reaffirming its commitment to supporting a global just transition to clean energy and a future free from fossil fuels.
WHAT IS AFC’S ETHICAL INVESTMENT POLICY?
At its core, AFC’s Ethical Investment Policy is designed to reflect Christian values in financial decisions. This policy recognises that AFC has fiduciary obligations to its scheme members to act in their best financial interests, with the balance that investment choices must factor in long-term impacts on people and the planet. The approach centres on investing in organisations that produce more good than harm while steering clear of industries and practices that cause significant damage or violate human dignity.
Fossil fuels are one of the focal areas where AFC has made a clear ethical commitment. The policy reflects the Church’s understanding of humanity’s God-given responsibility to care for creation and preserve it for future generations.
ADDRESSING FOSSIL FUELS
AFC’s Ethical Investment Policy takes a balanced stand regarding fossil fuels, recognising their role in driving climate change and harming the environment, but also their role in developing the infrastructure for renewable energy. In alignment with the 2015 Paris Agreement, AFC excludes from its investment assets, companies whose primary business involves coal and tar sands – two of the most damaging fossil fuel sources. Instead, AFC prioritises investments in companies committed to reducing carbon emissions and driving the shift toward a cleaner, more sustainable future.
While AFC’s stance on fossil fuels involves targeted divestment, the approach also supports energy companies that demonstrate tangible commitments to carbon reduction. By investing in these entities, AFC believes it can help drive change from within, encouraging progress toward a just transition to affordable, reliable, and clean energy for all.
AFC ENDORSES THE FOSSIL FUEL NON-PROLIFERATION TREATY INITIATIVE
This year (2024), AFC responded to a request from the Anglican Diocese of Dunedin to demonstrate leadership for the Anglican Church by endorsing the Fossil Fuel Non-Proliferation Treaty Initiative. This global effort seeks to phase out the use and production of coal, oil, and gas while accelerating the adoption of renewable energy. The treaty initiative’s goals align with AFC’s broader ethical investment strategy and its belief in fostering a fair and just energy transition. AFC was happy to accommodate the request from the Bishop of Dunedin—its endorsement of the treaty is (at the time of writing) viewable under the Endorsements tab, Faith Letter, Faith Institutions by Country.
The treaty initiative builds on decades of work by governments, civil society groups, and Indigenous leaders from around the world calling for international cooperation to stop the expansion of fossil fuels. The aim is to ensure that this transition is equitable for all communities. The treaty initiative does this through three pillars:
- Just Transition: Fast-track real solutions through scaled up access to renewable energy and a just transition for every worker, community and country so that no one is left behind.
- Non-proliferation: Prevent the expansion of coal, oil and gas by ending all new exploration and production.
- Fair Phase Out: Equitably phase out existing fossil fuel production in line with the 1.5˚C goal.
For AFC, endorsing the treaty initiative represents its public commitment to these three pillars for a global and just transition to renewable energy.
SUPPORTING A JUST TRANSITION TO CLEAN ENERGY
AFC is committed to ethical investments that reflect its belief in stewardship of God’s creation. While ultimately divestment from fossil fuels is an essential part of this strategy, AFC also believes in supporting the development of alternative energy technologies. As part of this, AFC invests in a global alternative energy fund, which channels resources into renewable energy infrastructure, technology, and innovation.
This investment supports the transition from harmful fossil fuel reliance to a future powered by clean energy. In doing so, AFC plays an active role in contributing to a more sustainable world – one that honours creation and prioritises the well-being of all people.
ETHICAL INVESTING AS A CHRISTIAN RESPONSIBILITY
AFC’s Ethical Investment Policy is rooted in the Christian call to care for others and for creation. Deliberately investing in companies that are committed to developing a cleaner and more equitable future, AFC is caring for the financial interests of its members whilst participating in God’s redemptive work in the world.
This approach reflects the Church’s belief that ethical investing can create tangible positive impacts, helping to restore creation while also providing for the needs of current and future generations.
JOIN US ON THIS ETHICAL JOURNEY
At Anglican Financial Care, we are committed to aligning our investments with Christian values and working toward a sustainable, equitable future. Our decision to endorse the Fossil Fuel Non-Proliferation Treaty Initiative is just one example of how we strive to reflect our commitment to ethical investing.
Of course, a difference each of us can make every day is through our spending habits, because businesses will always produce what people buy. Each one of us can play our part in building a better tomorrow, by choosing how we spend our money today.
As we continue to support a just transition to clean energy, we invite you to join us on this journey – working together for the good of our communities, our planet, and generations to come.
Discover more about AFC’s ethical investment practices and our commitment to Christian values here.
