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Religious organization rocked by internal fight over investments: 'Shareholder activism cannot succeed when the flaw is the business plan'

Restrictions are already in place to stop funds from going to what the church deems morally unaligned organizations.

Restrictions are already in place to stop funds from going to what the church deems morally unaligned organizations.

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At the United Methodist Church's California-Nevada Summit, the organization decided to move forward in divesting from dirty fuels.

According to United Methodist News, summit participants approved a proposal to be voted on at the California-Nevada Annual Conference in June 2025. 

It recommends the end of fossil-fuel-related investments and is similar to proposals passed by other regional conferences in the UMC.

Restrictions are already in place to stop funds from going to what the church deems morally unaligned organizations, industries, or projects. 

Companies that make a majority of their money from "gambling, alcoholic beverages, tobacco products, pornography, weapons, or for-profit prison companies," do not receive funding from Wespath, a financial organization honoring the United Methodist Church, per UM News.

Now, these restrictions may apply to fossil fuel-related companies.

Dirty energy sources, such as gas, oil, and coal, have repeatedly been proved to harm the planet and negatively affect human health. 

While the church's divestment is in part due to the planetary impact of the pollution produced when burning these fuels — such as exacerbated droughts, deadly storms, and other extreme weather events — there is a deeper humanitarian level to it as well.

Jim Antal, a theologian and adviser on climate justice for the United Church of Christ, spoke at the California-Nevada summit.

According to UM News, Antal said, "People who are socially, economically, culturally, politically, institutionally, or otherwise marginalized are especially vulnerable to climate change."

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The United Methodist Church sets a good example for other organizations and individuals to follow in keeping their money out of planet-harming operations. 

Resources like GreenPortfolio offer information on building portfolios and on specific investments, banks, and credit cards, all with climate-forward investing in mind.

Pushback on the United Methodist Church's turn away from fossil fuels includes the notion that by remaining invested, reform can happen from the inside. 

In response, Antal said, "Shareholder activism can work when a company has a flaw in their business plan that violates moral norms and needs to be corrected. But shareholder activism cannot succeed when the flaw is the business plan. Their business as usual will kill their children."

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