May 6, 2003
The following is a true copy of a Resolution adopted by the Executive Council at its meeting on April 28 – May 1, 2003 in Ellicott City, Maryland, at which a quorum was present and voting.
Resolved, that the Executive Council hereby adopts a policy of disinvestment from any company (a) among the top five U.S. defense contractors, measured in dollar volume of sales and (b) any company among the top 50 defense contractors that receives more than fifty percent of its revenues from military contracts.
Resolved, that a copy of this resolution be sent to any company from which this Church disinvests in accordance with this policy; and be it further
Resolved, that other church investors, including the Church Pension Fund, parishes, and dioceses, are urged to adopt a similar policy to the extent permissible under laws governing fiduciaries.
The Social Responsibility in Investments Committee, at the direction of the National Concerns Committee of the Executive Council, prepared an initial document in October 2002 exploring the issue of divestment from companies engaged in the production of military goods. This document was discussed at the January 2003 of the National Concerns Committee of the Executive Council, which directed the Social Responsibility in Investments Committee to draft a formal resolution regarding divestment for consideration by the Executive Council.
The Episcopal Church has a long history of speaking to the Church’s commitment to peacemaking—whether by the Executive Council or the General Convention— including concern over weapons production and proliferation, and also opposition to war. These resolutions have encompassed a number of areas:
Further, the 1930 Lambeth Conference declared that “war as a method of settling international disputes is incompatible with the teaching and example of our Lord Jesus Christ.” This statement has been reaffirmed by several Lambeth Conferences since 1930, including the 1998 Lambeth Conference. The 1979 and 1982 General Conventions similarly endorsed the Lambeth Statements on war.
In the past eight years, the Episcopal Church has filed a number of shareholder resolutions with defense contractors on a variety of issues, including the adoption of ethical criteria for military contracts and reports on foreign military sales. These resolutions had little impact on the activities of companies with which they were filed, and few of the resolutions received enough votes for refiling in subsequent years.
Given the Episcopal Church’s history of witness on issues related to peace, it seems inconsistent to profit from companies that are engaged in activities that make war possible. The divestment criteria applied in this resolution ensure that companies that get the largest dollar volume and revenue percentages from defense contracts are the only ones that are included in the screen. Other companies with lower dollar volumes or more incidental percentages of revenues from defense contracts are not included.
In taking this action, the Episcopal Church joins a number of other denominations in divesting from a subset of companies engaged in the production of military goods (The United Methodist Church, The Presbyterian Church USA, The Evangelical Lutheran Church in America, The American Baptist Church and The United Church of Christ, among others). It is possible that the Episcopal Church would file or co-file a militarism-related resolution with a company that is not subject to the screen enacted under this policy. Further, proxy voting will continue on militarism-related issues, also with regard to companies not subject to the screen enacted under this policy.
Lockheed Martin and Northrop Grumman are the initial companies subject to the policy (being both among the top five U.S. defense contractors and receiving more than fifty percent of revenues from military contracts). The list will be updated annually.
The Rev. Rosemari G. Sullivan
Secretary of the Executive Council and the Domestic
and Foreign Missionary Society of the Protestant
Episcopal Church in the United States of America
