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final paragraphs of the NCR article:
In 2021, CTSA formed the ad hoc Fossil Fuel Divestment Review Committee to assess ways forward. In 2022, the committee submitted a report that recommended CTSA freeze any new investments in the Carbon Underground 200, divest from direct or commingled investments in the Carbon Underground 200 no later than the 2025 Annual Convention, and develop a plan by the 2023 Annual Convention that will enact these two principled commitments. The board approved all three recommendations.
Related: Catholic Theological Society of America resolves to divest from fossil fuels
The committee then researched alternative fund managers. CTSA sought a firm that would empower CTSA to maintain its existing adherence to the U.S. bishops’ SRI guidelines, replicate its portfolio allocation and add an additional screen on fossil fuel corporations.
The committee found that two overtly Catholic investment managers, Ave Maria Mutual Funds and Knights of Columbus Asset Advisors, do not offer fossil fuel screens. Two secular firms with Catholic strategies informed by the SRI guidelines, DANA Investment Advisors’ Catholic-Based Value Investing and Global X S&P 500 Catholic, also lacked this option.
Catholic Investment Services offers a fossil fuel screen, but is limited to investors with financial accreditation CTSA does not possess. Community Capital Management offers a fossil fuel screen but could not ensure SRI guideline adherence.
Aperio Group provides a Catholic values strategy that adheres to the SRI guidelines. Aperio also offers a robust fossil fuel divestment option. Additionally, Aperio offers positive screening for Catholic values and shareholder engagement through As You Sow.
In April 2023, CTSA held a virtual town hall at which the committee presented its findings and recommended CTSA move all its investments to Aperio. Following theological and practical discussion at the town hall and subsequently at the Annual Convention, the board accepted the recommendation. The board has since implemented the recommendation and reformed the ad hoc Fossil Fuel Divestment Review Committee to become the Climate Justice Committee.
Cultivating hope
Catholic Theological Society of America’s journey illustrates the scarcity of options available to Catholic organizations committed to living the Vatican’s call and implementing the SRI guidelines through fossil fuel divestment. Bishops and other Catholic leaders might expand the opportunities by urging more firms to offer divestment.
Nevertheless, CTSA has shown that alternative opportunities exist for Catholics committed to divestment. Through discernment and fortitude, another world is possible.
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