The Church Investors Group (CIG), representing 70 members and £21bn in assets, has this week written to the leaders of FTSE 350 companies to inform them that it will be enhancing its scrutiny of corporates ESG aspects this AGM season.

The CIG already reviews aspects of executive pay, diversity, climate change, and tax, and has regularly voted against overly generous executive remuneration schemes and the reappointment of directors when pay schemes are excessive.

This year, new measures extend expectations on diversity and hold directors to account on Modern Slavery. Mining companies face additional scrutiny on the issue of the management of tailings dams following the Brumadinho disaster that killed 270 people last year.

CIG members will exercise their rights as shareholders under UK company law, voting according to a common template agreed between them. They believe such action is required to ensure all FTSE 350 companies recognise their role in overcoming global challenges as well as their obligations to the communities in which they operate. The largest members of the CIG include the Central Finance Board of the Methodist Church, the Church Commissioners, the Church of England Pensions Board, and the CBF Church of England Investment Funds.

The Revd Canon Edward Carter, chair of the Church Investors Group, commenting on the 2020 voting template said: “Church investors have led the way in using their votes at company AGMs, including voting on the reappointment of directors. These new criteria are all about expecting companies to play a responsible role in society. In this respect, the addition of Modern Slavery as a voting issue is particularly welcome as it complements our plans for investor collaboration to encourage companies to take their responsibilities seriously.”

Share Story: