Shareholder resolution pressures investment bank to ‘assess impact’ of Amazon oil drilling

The Environmental Protection Agency (EPA) has made the prevention of oil spills a top priority within the United States. Still, the potential of drilling mishaps and pipeline leaks continue putting vulnerable communities worldwide at risk — polluting drinking water, tainting soil and endangering both wildlife and sea life.  

In May, United Church Funds, the investment arm of faith-based organizations including the United Church of Christ, took a step in giving voice to one such group: Indigenous tribes being impacted by oil drilling in the Amazon.

Studies reveal that between 1997 and 2021, there were 566 oil spills in the Peruvian Amazon, with more than 87,000 barrels reportedly having been spilled.

At the May 21 annual meeting in New York City, United Church Funds proposed a resolution calling for J.P. Morgan Chase & Co. to assess the impact of its funding of oil drilling projects — as well as gas and coal — on Indigenous communities. The resolution garnered 30% shareholder approval. United Church Funds’ Director of Responsible Investing Matthew Illian explained that “any vote over 25% tends to catch the attention of a company.”

“Management takes notice because they view it as a reputation [issue],” said Illian.

Hearing the voices that matter the most

Socially responsible investing is a cornerstone of the UCC, having passed several resolutions over the years. At the 2015 General Synod, the “Urging Socially Responsible Investment Practices” resolution called for congregations and the UCC Board of Pensions for actions such as more shareholder engagement and dialog with corporations.

For Illian, focusing on “faith-based and sustainable investments” means shedding light on big corporation policies.

“We look to be advocates on issues, helping churches like the UCC invest their assets and endowments. Right now, that means engaging banks particularly on Indigenous rights and addressing the environmental impact on Indigenous lands. We are asking for corporations to be transparent in their financing,” he said.

Illian’s voice, though — and those of his United Church Funds’ colleagues — are not the ones that need to be heard these days when engaging with financial behemoths. The stories from those being directly impacted by monies supporting projects like oil drilling are what need to be heard.

“‘How are you listening to the people?’ is a question we need to ask,” said Illian, adding, that the stakeholder voice needs to be built into future conversations with financial institutions.

Indigenous leader speaks out

United Church Funds had such a voice at its May meeting, as Olivia Bisa Tirko, president of the Autonomous Territorial Government of the Chapra Nation in Peru, gave what Illian said was “a powerful testimony” on how Petroperú, a petroleum company funded in large part by J.P. Morgan, was threatening precious Amazon ecosystems.

Bisa Tirko, who says she has received death threats for her vocal opposition to oil drilling, spoke not only for her Chapra nation, but for the Achuar and Wampis nations who also dwell in the region.

“Indigenous peoples have the right to say no to oil in our territories,” she said.

Bisa Tirko, along with two other Indigenous leaders from Peru, were scheduled to meet with J.P. Morgan during an April visit to New York City.  J.P. Morgan Chase cancelled.

At deadline, UCC News Digest has not received comment from J.P. Morgan Chase.

Illian said that United Church Funds will continue being in conversation with J.P. Morgan.

“When we file a shareholder resolution, there is about a three-month negotiating period with the company, where they seek to show us that they are taking steps to address the issues we have raised,” he said, adding, “This isn’t going to be a problem solved overnight, but it is definitely an important issue to raise.”

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