wfn.org | Brethren Benefit Trust to Dialogue with Caterpillar

[COBNews@aol.com]

Date: Dec. 7, 2005
Contact: Cheryl Brumbaugh-Cayford
V: 847/742-5100  F: 847/742-6103
E-MAIL: _CoBNews@AOL.Com_ (mailto:CoBNews@AOL.Com)

BRETHREN BENEFIT TRUST AGREES TO DIALOGUE WITH CATERPILLAR

Dec. 7, 2005 (Elgin, IL) --  Bulldozers are commonly seen as  instruments of
construction, used to raze old structures or sculpt land for  development. But
what if these machine are used for destruction, such as  destroying houses,
farms, ancient olive groves, roads, and water and sewer pipes  that are
currently in use?

According to Human Rights Watch, Israel has used Caterpillarâs large D-9
bulldozers, which have been purchased through the US military and
outfitted with
tons of armored plating, to wreak havoc on Palestinian settlements by
illegally  destroying property and infrastructure.

As a Caterpillar shareholder, the Brethren Benefit Trust (BBT) Board of
Directors in November decided to try to engage in dialogue with Caterpillar,
asking the firm based in Peoria, Ill., to cease selling equipment that makes its
way to Israel to be used for violent purposes against humanity. BBT is a
Church	of the Brethren agency that manages more than $350 million of investments
for  its 4,000 Pension Plan members and 200 asset management clients, and uses
shares	that it owns on behalf of its members to promote Brethren values
through  shareholder activism initiatives.

The boardâs deliberation of this issue came at the request of On Earth
Peace, which like BBT is one of the five agencies of the Church of the Brethren
Annual Conference. In its Oct. 14 letter to BBT, On Earth Peace asked BBT to
divest of its Caterpillar holdings âto seek investment of these funds in
companies whose business enriches the lives of Palestinians and Israelis.â

After lengthy discussion by the BBT board, which was meeting at the  Brethren
Home Community in New Oxford, Pa., the board decided to attempt  dialogue
with Caterpillar with the understanding that divestiture could come if	the
dialogue fails. Reasons for this decision included:

-- BBTâs socially responsible investing policy calls for BBT not
to invest
in companies that make more than 10 percent of their sales in alcohol, tobacco,
 defense, and gambling. Companies BBT invests in are checked against these
benchmarks annually; in 2005 Caterpillar was not excluded on this basis.

-- BBT works at shareholder advocacy initiatives with companies that do
not 
get screened out of BBTâs investment portfolio but have at least one area
where  changes are advocated, based on Annual Conference statements.

-- BBT has engaged in dialogue with Caterpillar regarding the AIDS
pandemic 
in Africa, and has found the company to be responsive to shareholder  dialogue.

-- Israelâs use of the D-9s for destructive purposes goes against  Caterpillar
âs worldwide code of conduct, which calls on its host countries to
 âhonor
their agreements, including those relating to rights and properties of
citizens of other nations.âThe BBT board also endorsed inviting On Earth Peace  to
participate in the dialogue with Caterpillar.

After the BBT Board meeting, staff learned of a resolution passed by the
Pacific Southwest District of the Church of the Brethren, on âDivestment from
Companies Selling Products Used as Weapons in Israel and Palestine.â The
resolution will be forwarded to the 2006 Annual Conference for possible  action.

âThis is a human rights issue that needs to be addressed,â said Nolen, upon
hearing of the Pacific Southwest Districtâs resolution. âBBT Board members
and  staff look forward to addressing this issue with On Earth Peace and the
Annual	Conference. Through our shareholder dialogue, we hope that the Church of
the  Brethren peace witness will help prompt Caterpillar to decide not to
sell  machines that are used against humanity.â

The Church of the Brethren is a Christian denomination committed to
continuing the work of Jesus peacefully and simply, and to living out its faith  in
community. The denomination is based in the Anabaptist and Pietist faith
traditions and is one of the three Historic Peace Churches. It celebrates its  300th
anniversary in 2008. It counts about 130,000 members across the United
States and Puerto Rico, and has missions and sister churches in Brazil,
the 
Dominican Republic, Haiti, and Nigeria.

# # #

For more information contact:

Cheryl Brumbaugh-Cayford
Director of News Services
Church of the  Brethren General Board
1451 Dundee Ave.
Elgin, IL 60120
847-742-5100  ext. 260
_cbrumbaugh-cayford_gb@brethren.org_
(mailto:cbrumbaugh-cayford_gb@brethren.org)

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 director of news services for the Church of the Brethren General Board.
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