The Sustainable Development

Goals (SDGs)

and

The Stewardship of

Financial Investments

REFLECTIONS ON THE SPIRITUAL

AND ETHICAL DIMENSIONS OF THE

2030 SUSTAINABLE DEVELOPMENT AGENDA (5)

The Sustainable Development Goals (SDGs)

and the Stewardship of Financial Investments

The United Nations, Pope Francis and IBVM documents speak to how we are called to live. While each is unique in its approach and assessments, we can

say that each one recognises the importance of interconnectedness. People and nature, earth, institutions, policies, decisions – all interrelate and

have an impact far beyond themselves.

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We resolve, between now and 2030, to end poverty and hunger everywhere; to

combat inequalities within and among countries; to build peaceful, just and inclu-

sive societies; to protect human rights and promote gender equality and the em-

powerment of women and girls; and to ensure the lasting protection of the plan-

et and its natural resources. We resolve also to create conditions for sustainable,

inclusive and sustained economic growth, shared prosperity and decent work for

all, taking into account different levels of national development and capacities.

(Transforming our world: the 2030 Agenda for Sustainable Development, no. 3)

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We are faced not with two separate crises, one environmental and the other social,

but rather with one complex crisis which is both social and environmental. Strate-

gies for a solution demand an integrated approach to combating poverty, restoring

dignity to the excluded, and at the same time protecting nature.

(Laudato Si, 139)

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The temporal goods of the Institute are administered in accordance with

gospel values, Christian principles of justice, the provision of canon law,

the spirit of evangelical poverty, ecological considerations, sensitivity to

present and future apostolic needs and careful long-term planning.

(IBVM Constitutions, 6.104)

The SDGs stimulate action on behalf of people and the planet towards the

prosperity and peace of all. The goals are grouped in the three necessary

dimensions of sustainable development:

social (about poverty, hunger, health, education, gender equality, clean

water and sanitation)

economic (work, energy, industry, growth, sustainability) and

environmental (climate, waters, land, peace and justice).

Pope Francis, in addressing climate change, speaks of ‘our common home’,

‘integral ecology’ and a network of relationships.

Our Constitutions and the GC 2014 call us to just living, mission, transfor-

mation, sustainability and solidarity.

With these commitments, principles and calls in mind, let’s turn our atten-

tion to the stewardship of financial resources, in particular investments.

The management of these resources provides opportunity to be guided by the

SDGs and Laudato Si, as well as our own documents.

Investment Management

In the field of ethical or socially responsible investing there are a varie-

ty of approaches to investment management: for example,

Exclusionary: to screen out companies or whole industries (e.g. for abor-

tifacients, gambling, poor human rights, nuclear weapons etc.). Our

investment policy includes a list of exclusions.

Engagement: discussion with companies regarding ESG – environmental

(climate risk, fossil fuel, carbon footprint, water) , social (decent

work, human trafficking, human rights) and governance (Board diversi-

ty, compensation,) criteria to improve behaviour

Impact investment: investing in companies or industries with a particular

and measurable social or environmental benefit.

CAIC: Canadian Alternative Investment Cooperative is a local example of im-

pact investing by means of a loan/investment in a cooperative. Rooted in a

shared hope of a socially just world, CAIC was formed in the early 1980's by

religious congregations (among them IBVM). CAIC provides mortgages, con-

struction financing, working capital loans and equity investments for groups

working in the charitable, non-profit and social justice sectors. Borrowers

have used resources to operate shelters, food banks, skills development cen-

tres to name a few. More recently a foundation was established to ensure

this work for social benefit into the future.

The engagement approach to investing is of particular interest in relation to the SDGs. The IBVM Canadian province participates in JEM (Joint Ecologi-

cal Ministry group) and is a client of SHARE (Shareholder Association for Research and Education).

Joint Ecological Ministry (JEM), established in 2015, “is a collaboration of

religious communities and partners using their resources to promote caring

for Creation and living within planetary limits.” JEM first called together

leaders, treasurers, and JPIC representatives of religious congregations to

reflect on how we can use our resources to influence companies to reduce

their carbon emissions, and to consider the carbon footprint of a congrega-

tion’s investments. Participants considered divestment of resources away

from fossil fuel companies, shareholder engagement with such companies, and

reinvestment in planet friendly endeavours.

On March 6, 2017 Leadership, Finance Office and JPIC committee members at-tended the most recent JEM gathering. The focus of the presentations was

“Divesting and Reinvesting in the Future We Want.” We heard from presenters representing different stages on the path of divestment; the importance of being rooted in one’s mission and identity; advocacy. The conversation and

exploration continues. Divestment is a complex matter, made even more so in a Canadian context where 1/3 of available equity is in financial institu-tions (and a significant part of their business is lending to the fossil fuel industry), 1/3 is oil and gas industries, 1/3 is in a variety of other

industries and alternative investments. A few religious groups have chosen some form of divestment and the challenge for them is implementation. More groups have chosen engagement.

SHARE: Shareholder Association for Research and Education

(http://share.ca/)

As a result of the 2015 JEM conference, IBVM became a client of SHARE who

brings together institutional investors such as religious congregations,

churches, pension funds, foundations, universities, asset managers and mutu-

al funds. SHARE’s approach is ‘responsible investment for a sustainable

economy’ and it offers shareholder engagement and proxy voting services, fa-

cilitating ongoing constructive dialogue with companies on ESG issues.

Increasingly it is normative that shareholders (not only religious minded ones) want companies to be about more than financial return; they expect at-

tention to social and environmental issues and outcomes for a sustainable

world and planet. Attention to ESG criteria results in more attractive in-vestment returns in the long run. SHARE, on behalf of its clients, engages in ongoing constructive conversation with companies in a process of persuad-

ing them to improve their behaviour in regard to environmental, social and governance issues.

A sample of the issues addressed by SHARE in 2016 includes:

measuring, disclosing and reducing climate risks

addressing the financing of climate risk

improving workers’ health and safety

providing decent work in the supply chain

protecting and preserving clean water

respecting international human rights, and

Board of Directors diversity.

These issues correspond well with the United Nations SDGs, in particular:

responsible production (# 12) climate change (#13), decent work (#8), corpo-

rate governance (#16), human rights, business and reconciliation, water

(#6).

This kind of advocacy requires ‘being in it for the long haul’. Conversa-

tions with industries require time, patience and discerning listening. Every

small step or bit of ‘progress’ is acknowledged and then next steps set.

The use of proxy voting opportunities in shareholder proposals is another

example of shareholder engagement activity on issues related to climate

change and environmental issues; indigenous rights; and board practices,

governance and diversity.

In summary the management of financial resources such as investments, pro-

vides opportunity to be guided by the SDGs and Laudato Si, as well as our

own IBVM mission and values. Groups like SHARE and JEM are great examples of

collaboration among religious congregations, Christian churches and other

groups. Together we increase our awareness, explore issues and raise our

voices together; there is strength and greater impact in working and re-

sponding together. Our actions and decisions are influenced by the SDGs and

its rights based approach – rights of people and planet. We are called to

pay attention to the ‘commons’ – those cultural and natural resources that

should be available to all, for the health of all people (not just a few)

and the planet. Pope Francis reminds us the cry of the poor and the cry of

the earth are inextricably linked.

We are invited to an ‘ecological conversion’, a new lifestyle and relation-

ship with people and the earth, a re-evaluation of priorities and actions.

May our small efforts in the stewardship of financial investments be a part

of bringing about that conversion.

Carmen Diston IBVM (Canada)

NGO AT THE UNITED NATIONS

INSTITUTE OF THE BLESSED VIRGIN MARY

WWW.IBVMUNNGO.ORG