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graph showing the evironmental, social, and governance risks

By Mary Minette, 
Consultant, Mercy Investment Services

The pillars of environmental, social, and governance (ESG) form a basis for responsible investing that prioritizes the long-term health of our economy, societies, and planet. This has been a key component of the approach of the Portfolio Advisory Board (PAB) since its inception as an important expression of alignment between the investments and the mission of the Adrian Dominican Sisters. 

As ESG investing has grown as a share of the overall market, an anti-ESG movement has developed among some politicians and state treasurers, who decry such investments as “woke” capitalism. 

New legislation in some states prohibits state contracts and investments with investment firms that use environmental or social indicators to inform investment decisions. Sometimes, government entities may not enter contracts for goods or services without written verification that the vendor will not boycott fossil fuels. Legislation of this nature has been introduced in 37 states, targeting investors who have made climate commitments.  

In July, the US House of Representatives Financial Services Committee held a series of hearings called “ESG Month” that targeted ESG investors. They introduced bills designed to curtail social and environmental investment and the regulatory powers of the Securities and Exchange Commission to allow for greater disclosure of ESG information. None of these bills is expected to move to the Senate during this session of Congress, but they represent a disturbing trend that would curtail the ability of investors to choose how and where they invest.

In early June, the PAB joined 77 fellow Interfaith Center for Corporate Responsibility members in a letter asking members of Congress to publicly speak out against these anti-ESG campaigns and efforts to derail environmental and social progress resulting from shareholders’ efforts. The letter encourages members of Congress to advocate for prudent, non-partisan investment practices and to consider the financial damage to state and municipal pension funds due to the anti-ESG legislation. 

The PAB will continue to advocate for the importance of addressing these factors in investing and engagement. 


 


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June 30, 2020, Adrian, Michigan – On behalf of the Congregation, Sister Elise D. García, OP, General Councilor of the Adrian Dominican Sisters, recently signed the Catholic Impact Investing Pledge

An initiative of the Catholic Impact Investing Collaborative (CIIC), the pledge affirms that signatories will commit to making investments “on behalf of the poor and vulnerable, to promote human dignity, economic justice, and environmental stewardship,” pursuing a just society “with urgency, given the increasing needs of the poor and vulnerable and the continuing degradation of our common home.”

The pledge principles include the call to making investments “that provide financial returns while simultaneously creating measurable, positive social and environmental incomes in service of people and planet.” 

Sister Elise D. García, OP

Sister Elise serves as the General Council liaison to the Adrian Dominican Sisters’ Portfolio Advisory Board (PAB). Since 1978, the Community Investment arm of the PAB has made more than 500 low-interest loans to a variety of community organizations.  Currently, the PAB is investing in 38 organizations – throughout the United States and internationally – in banks, community credit unions, multi-purpose loan funds, housing programs, cooperatives, and international loan funds. 

In signing the pledge, the Adrian Dominican Sisters joins a community of pledge supporters committed to investing for the common good. Signatories include Catholic Relief Services; Mercy Investment Services; Ascension, a faith-based healthcare organization; and other congregations of women religious, such as the Daughters of Charity, Conference of St. Louise, and the Felician Sisters of North America.

 

Feature photo: One of the affordable housing projects of New Way Homes, a Santa-Cruz, California-based housing organization that receives investments from the Portfolio Advisory Board.


 

 

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