Introduction: Investing Is Not Passive
When people think about ethical investment, they often think about what’s excluded—fossil fuels, tobacco, weapons, and so on. But there’s another powerful tool at the heart of values-based investing: shareholder engagement.
At Epworth Investment Management, we believe engagement is an act of Christian witness—a way of speaking truth to power and influencing companies to act justly, sustainably, and transparently.
But what exactly is shareholder engagement? And does it actually lead to meaningful change?
What Is Shareholder Engagement?
Shareholder engagement is the process by which investors use their rights and influence as part-owners of a company to drive change in how that company behaves.
This can include:
- Writing to company leadership
- Meeting with executives or board members
- Asking formal questions at AGMs
- Filing shareholder resolutions
- Voting on key decisions (remuneration, climate plans, board appointments)
For ethical and faith-based investors, this isn’t just corporate housekeeping—it’s a moral responsibility.
“Faith-based investors should exercise their rights as shareholders to influence corporate decisions that align with Gospel values.”
— Mensuram Bonam, §72
Engagement vs Divestment: Why Not Just Walk Away?
Some ask: if a company is acting unethically, why not simply divest?
The answer is: engagement and divestment are not opposites—they are stages on the same path.
- Engagement is about trying to change company behaviour from within.
- Divestment is the response when that change doesn’t happen—a public act of accountability and withdrawal.
At Epworth, we believe in starting with dialogue and escalating when companies are unresponsive or continue to violate our ethical standards.
How Epworth Engages on Behalf of Faith-Based Investors
Our engagement is focused on issues where Christian values and long-term financial risks intersect. These include:
Climate and Environmental Stewardship
- Challenging fossil fuel financing and deforestation-linked supply chains
- Urging companies to adopt science-based climate targets
- Pressing banks on their role in transition finance
Human Rights and Decent Work
- Advocating for fair wages and safe working conditions
- Calling out modern slavery and child labour in supply chains
- Pushing for responsible use of surveillance and AI technology
Corporate Ethics and Governance
- Questioning excessive executive pay
- Demanding tax transparency and responsible lobbying
- Promoting board diversity and inclusive leadership
Peace and Conflict
- Engaging with companies linked to arms exports or dual-use technologies
- Raising concerns over operations in conflict-affected areas
We undertake this work directly and through collaboration with ecumenical and interfaith coalitions—including the Church Investors Group, ShareAction, and international Christian networks.
Read more in our Stewardship Reports
Does Engagement Actually Work?
Yes—but it requires persistence, credibility, and strategy.
Over the past decade, shareholder engagement has driven major changes in corporate behaviour, including:
- Oil majors publishing climate transition plans
- Retailers improving factory oversight and wages
- Tech companies introducing algorithm ethics committees
- Global banks withdrawing from controversial fossil fuel deals
At Epworth, we’ve seen direct impact through our own engagement—including influencing policies at HSBC, Barclays, Glencore, and others. Change doesn’t happen overnight—but it does happen.
Theological Foundations for Shareholder Engagement
Engagement is not just a technical exercise—it’s a spiritual one.
“Speak up for those who cannot speak for themselves… defend the rights of the poor and needy.”(Proverbs 31:8–9)
In the Christian tradition, stewardship is not passive ownership—it is active care. Shareholder engagement reflects this calling by using influence to:
- Promote justice
- Protect creation
- Elevate dignity
- Hold power accountable
Whether it’s voting at an AGM or challenging a CEO on supply chain ethics, these are acts of witness in the public square.
FAQs for Charity Trustees and Treasurers
Is shareholder engagement legally required?
While not mandatory, the UK Stewardship Code and Charity Commission guidance encourage responsible oversight of invested assets—including engagement and voting.
Can small investors make a difference?
Yes. By pooling votes and joining coalitions, smaller charities can have a major voice—especially when acting with integrity and consistency.
What happens if a company won’t change?
We escalate. This may include public statements, voting against directors, filing resolutions, or ultimately excluding the company from our portfolios.
Conclusion: Investing with a Voice
At Epworth, we don’t just avoid bad companies. We challenge them to do better—because we believe that investment is a tool for transformation, not just a means of return.
Whether you’re a local church, a national charity, or a religious order, shareholder engagement gives you a seat at the table—and a voice that reflects your values.
Want to know how your investment can speak for justice? Get in touch with our team today.