Major church pension fund disinvests from Israeli banks funding settlements

The board of the United Methodist Church's $20 billion Pension and Health Benefits Fund has voted to withdraw investments in Israel's five largest banks, because they do not meet the Church's new human rights policy.

The five banks: Bank Hapoalim, Bank Leumi, First International Bank of Israel, Israel Discount Bank and Bank Mizrahi-Tefahot, have been excluded because of their financial involvement with the illegal settlements in the Occupied Territories.

They are on a list of 39 companies from 14 countries including North Korea, Saudi Arabia, Sudan, Somalia, Syria, Egypt, India and China, that have been declared off limits for not meeting the church's Human Rights Investment Policy guideline implemented in 2015.

See the full list here: www.gbophb.org/assets/1/7/hr-excluded-12-15.pdf

Wespath, which is the investment management division of the General Board of Pension and Health Benefits of the United Methodist Church, explains on its website: "The General Board's Human Rights guideline reflects The United Methodist Church's call for all general boards and agencies to '... make a conscious effort to invest in institutions, companies, corporations, or funds whose practices are consistent with the goals outlined in the Social Principles.' (¶ 717) We are a global investor, and we actively influence the promotion and protection of human rights through constructive engagement by using our voice as shareholders to change company practices. We believe that engagement is the most effective strategy for us, and like-minded investors, to effect corporate change and improve human rights protections."

It further notes: "There are specific times, however, when we must recognize that a company is very unlikely -- or unable to -- discontinue activities in certain parts of the world that we have classified as 'high-risk.' When activities in high-risk countries and areas represent a significant part of a company's business, we will avoid investing until the company has changed its business practices. Avoiding such investments supports our commitment to sustainable investing, which we believe ultimately improves the performance of our investment funds."

In a statement last Thursday, United Methodist Kairos Response, a group within the United Methodist Church that has been pushing for divestment over the Palestinian issue, said it was "the first time a major church pension fund has acted to preclude investment in Israeli banks that sustain Israel's illegal occupation of Palestinian land."

"We commend the pension fund for taking this significant step in disassociating from the illegal occupation of Palestinian land. But as United Methodist policy opposes the occupation, this is only a first step toward ending our financial complicity in the ongoing oppression of the Palestinian people," UMKR Co-Chair Rev Michael Yoshii said in the statement.

The General Board of Pension and Health Benefits of the United Methodist Church is recognized as the largest faith-based benefit plans administrator and pension fund/investment asset manager in the United States and is ranked among the top 100 pension fund managers (based on assets under management) in the country.

The Israeli government has not issued an official comment yet.

Source: Wespath

For more information see: www.wespath.com/