16th February, 2014

His Holiness Pope Francis I

The Holy See

Vatican City State

Italy.

Your Holiness,

We have been heartened by the news that you are writing an encyclical on caring for Creation. This is indeed a most pressing issue facing humanity – we have clearly failed in the divine instruction to be 'caretakers of God's world' and need to most urgently address our shortcomings. We would like to offer some reflections, informed by our values as religious organisations and analyses of the current situation globally.

Despite the now well-known risks of rising greenhouse gas emissions, we note that around 55% of the money held by the world's banks, superannuation/pension funds and insurance companies is invested in carbon-intensive industries while only 2% is invested in low-carbon technologies. Whilst only short-term financial gain is considered, the former has been, and continues to be, seen as more profitable than the latter.

However, the capacity of the biosphere to absorb greenhouse gas emissions must now be taken into account. We stand at a critical point in human history. Analysts have calculated that only a further 565 gigatons of the world's oil, coal and gas can be burnt without posing an unacceptable risk of exceeding the internationally accepted maximum of 2° C average global warming. The impacts of climate change are already being felt but, as you know, over 2° C would place the world at serious risk of a climate catastrophe from which recovery may be impossible for humans to achieve.

If global greenhouse gas emissions continue to increase annually as they have been, in just 15 years the world will reach this limit. Fossil fuel companies currently hold around 2795 gigatons of carbon in reserves - five times the carbon budget which has a chance of keeping the world safe. This means that 80% of the world's reserves of fossil fuels must stay in the ground if humanity is serious about limiting climate disruption.

The compelling conclusion is that it is immoral to continue burning fossil fuels at an ever- increasing rate. If this is immoral, then it must also be immoral to profit from making this possible.

Fossil fuel companies are not heeding this message. They are not just intending to extract the fossil fuel reserves they already have, but their business models depend on exploring for more coal, gas and oil. Concerned religious and civil society organisations have tried shareholder advocacy rather than removing their investment, in the hope of changing the hearts and minds of company directors. After decades of these efforts, the companies have shown themselves to be unscrupulous and intransigent. The experiences of the Interfaith Center for Corporate Responsibility and the Christian Brothers Investment Services in North America are two examples.

There are already viable alternative ways of generating as much energy as we consume. Technological advances in the generation of renewable energy and mass production as well as ensuring a level playing field together mean such energy is now becoming competitively priced. Yet there remains significant inertia and obstacles around creating a new path to energy security.

Governments have started to take legislative action to limit greenhouse gas emissions, to greater or lesser extent, but collectively they have not yet significantly slowed the global growth of emissions. Nor has the international community been able to design an Agreement which would avert the climate crisis which is now only in its early stages. Various efforts to encourage communities to live more sustainably have likewise been only modestly successful. These efforts continue to be valuable, of course, but much more is needed.

In the words of Reverend Fletcher Harper of GreenFaith, "We are marching into the teeth of the climate change gale with no pathway to a future with a stable climate, or even to a future in which the crisis's worst effects are avoided." Many thousands of people are already suffering health impacts or losing their lives, particularly the poor in developing countries. The threat of vast numbers of 'climate refugees' forced from their lands, is very real. Ever present is the experience of insecurity, fear, and despair which can only become multiplied, and clear religious voices are needed.

To create for the essential large-scale action on climate issues, a widespread, firm expression of resolve is required. Moving investment out of fossil fuels is now considered by many to be a uniquely effective way to signal such resolve, independent of government or vested business interests. It holds the potential to de-legitimize activities thus far seen as normal. It has been commented that the divestment movement has already begun to do this.

Resolutions to move investments out of fossil fuels has now been embraced by Churches, Universities and Cities in various parts of the world. These include the Quakers in the UK, five Anglican Dioceses of Aotearoa/New Zealand, the Uniting Church Synod of NSW/ACT, Australia, and a range of United Church of Christ, Unitarian and Episcopalian Churches in the USA. Many are inspired by the leadership of Methodist environmentalist Bill McKibben who co-founded 350.org in USA. Organisations such as ARRCC, Operation Noah in the UK and GreenFaith have been promoting divestment as a moral response to the climate crisis. They also promote re-investment in renewable energy generation, energy efficiency and other low-carbon technologies as part of a practical and ethical response.

Requests

We request that you advocate that religious and civil organisations undertake to remove their investments from fossil fuels, as well as banks and funds who fund and profit from the industry. That is, that they move their money out of investments in fossil fuel extraction, distribution and consumption projects and the infrastructure required to enable them, starting with new projects as a priority.

There are strong economic arguments supporting such actions. Much has been written about the "carbon bubble" in financial markets. If and when the international community gets serious about constraining the burning of carbon-based fuels, fossil fuel reserves face significant value reduction. Furthermore, there is strong research evidence to suggest that fossil fuel free investment portfolios already do not lead to sacrificing returns. But we think it's wrong to represent divestment as an approach that does not involve sacrifice and risk. Indeed, it is the fact that divestment may require some sacrifice that gives it moral significance, though the real risk is to continue as usual.

To move investments away from fossil fuels is a matter of integrity. To notify the funds why the investment is being removed will be salutary. To make public such divestment is not necessary, but it would be prophetic and would enhance the impact of such decisions, and support others in doing so.

We urge you, as a person held in high esteem by many millions around the world, to speak clearly about the place of divestment from fossil fuels as one significant means to avert the worst of climate disruption. You could have a desperately needed influence on the direction humanity takes from here. We urge you to use this influence.

Please accept, Your Holiness, the expression of our highest consideration.

Ms Thea Ormerod and Rabbi Jonathan Keren-Black

President, Australian Religious Response to Climate Change

Rev. Fletcher Harper

Executive Director, GreenFaith

Dr Matheson Russell

Campaign co-ordinator for Aotearoa/New Zealand Anglican Church divestment