wfn.org | Socially Responsible Investing Has "Come of Age," MRTI Told

[PCUSA NEWS <pcusa.news@ecunet.org>]

99273 
20-August-1999 
 
    Socially Responsible Investing Has "Come of Age," MRTI Told 
 
    Many Investment Firms Are Now Following the Church's Lead, Experts Say 
 
    by Jerry L. Van Marter 
 
BOSTON--Socially responsible investing has come of age, according to 
several speakers at the summer meeting of the Committee on Mission 
Responsibility Through Investment (MRTI) of the Presbyterian Church 
(U.S.A.). 
 
    Steve Lydenberg, research director and partner in Kinder, Lydenberg and 
Domini, reported that many firms are beginning to follow MRTI's approach to 
socially responsible investing.  With the expansion of socially screened 
mutual funds and investment management firms in the last ten years, well 
over a trillion dollars is now invested with both social and financial 
bottom lines, Lydenberg said. 
 
    Working in cooperation with PC(USA) investors - primarily the Board of 
Pensions and the Presbyterian Church (U.S.A.) Foundation - MRTI assesses 
companies' compliance with General Assembly policies on alcohol, tobacco, 
gambling, military production, environmental protections and labor 
practices and advises church investors on which stocks to avoid. 
 
    The membership of MRTI includes representatives from the pension board 
and the foundation, as well as other advocacy and advisory groups - the 
Advocacy Committee on Women's Concerns, the Advocacy Committee on Racial 
Ethnic Concerns and the Advisory Committee on Social Witness Policy - in 
order to enhance the cooperative nature of its enterprise. 
 
    MRTI combines social screens with shareholder engagement through proxy 
voting, dialogues with corporate executives and filing shareholder 
resolutions on issues to which the General Assembly has spoken. 
 
    Shelly Alpern of Trillium Assets Management, Robert Massie of CERES, a 
coalition of environmental groups, public pension funds, religious 
organizations and investment firms, and Heather White of Verite, a group 
which monitors overseas factories, also addressed MRTI. 
 
    The committee reviewed recent shareholder engagement.  A shareholder 
resolution with American International Group seeking fuller AA/EEO data 
received 24.4% of the proxy vote, the highest ever.  MRTI staffer the Rev. 
William Somplatsky-Jarman reported that successful dialogues were held with 
Intel, Citigroup, BankAmerica and Hasbro. 
 
    The committee also adopted its 1999-2000 work plan.  Twenty-seven 
companies will be approached on issues such as equal employment 
opportunity, climate change, pollution prevention, employment and 
environmental standards, community reinvestment and predatory lending, and 
standards for contract suppliers. 
 
    MRTI will be the lead religious shareholder in engagements with Intel 
and Advanced Micro Devices on international standards for their suppliers; 
with Warnaco, Lands' End and Hasbro on employment standards to prevent 
sweat shops; with Union Pacific and CSX on climate change and emissions; 
with Tosco on pollution prevention; with Citigroup and Wells Fargo on equal 
credit opportunity; with Household International on predatory lending; with 
American International Group and Venator on equal employment opportunity; 
and with Albertsons on endorsing the CERES environmental principles. 
 
    MRTI will support other religious shareholders in approaches to 
Dillards, BankAmerica, MBNA, Exxon, Talisman Energy, Unocal, Mattel, 
WalMart, Disney, General Motors, Ford, Nike and  Hewlett Packard. 
 
    MRTI's fall meeting will be in Austin, Texas, on October 14-16, 1999. 
A dialogue with Advanced Micro Devices will be held at that time. 
 
(Information for this story furnished by William Somplatsky-Jarman) 

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