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Montréal Pledge Disclosure

The Central Finance Board of the Methodist Church has long recognised the challenges posed by global climate change. To help direct its selection of investments, in 2009 the CFB adopted a climate change policy, which has since been supplemented with two further policies: electricity generation; and different fuel types. The fundamental aim of these policies is to ensure that companies in which the CFB invests are consistent with a target of reducing the UK’s greenhouse gas emissions by 80% from 1990 levels by 2050, and limiting increases in global temperatures to 2℃.

One of the guidelines provided by the CFB policy on climate change is: “To create and manage portfolios with a carbon footprint that is relatively low and measurably declining”. As a result since 2009, the CFB has commissioned an annual carbon footprint analysis of its UK Equity Fund from Trucost, and has signed up to the Montréal Carbon Pledge committing to a voluntary disclosure of the results. All the data in this report are to 28 February 2018, the CFB’s year end.


Trucost estimates the total greenhouse gas emissions of each company within the portfolio and the relevant benchmark, estimating both the portfolio’s proportionate share of each company’s emissions, and that of the benchmark. These emissions are then summed to provide the total greenhouse gas emissions of the portfolio (in tonnes of CO2 equivalent (tCO2-e) per million pounds of market capitalisation) and for the benchmark. More details of Trucost’s methodology can be found on its website:


According to the Trucost analysis, at 28 February 2018 the CFB's carbon footprint was 288tCO2-e per million pounds of market capitalisation compared to 290tCO2-e for the FTSE All Share – a difference of 0.6%. The ‘gap’ between the Fund and the market has significantly narrowed owing to relative reductions in carbon intensity across the market generally.

The CFB UK Equity Fund is significantly less carbon intense than the overall UK stock market in the materials (mining and chemicals) and utilities sectors, and significantly more intensive in the food, beverage and tobacco sector, and that of transportation.

The change in the CFB UK Equity Fund's footprint is estimated by dividing the total carbon footprint of the Fund (measured in tCO2-e) by the number of units in the Fund; this compensates for changes in size of the Fund due to inflows/outflows and movements in market values. The table below compares the total footprint of the fund, the number of units and the trend in emissions per unit.

CFB total emissions (tCO2-e) CFB units in issue Emissions per unit (kg per unit)
2011 149,212 22,182,723 6.73
2012 112,914 20,749,796 5.44
2013 115,598 21,066,622 5.48
2014 127,192 19,406,209 6.55
2015 123,819 20,027,588 6.18
2016 114,243 21,096,008 5.42
2017 94,630 19,921,015 4.75
2018 96,317 19,909,197 4.84

This would suggest that the carbon intensity of the portfolio has increased by 1.8% between 2017 and 2018, having fallen by 12.4% the year before. Since 2009, the carbon intensity of the portfolio has fallen by 3.4% p.a.

The analysis is based on the direct holdings of the CFB UK Equity Fund, which comprised £333.9m as at 28 February 2018.

Continuing the work

In line with the aims of its policy on climate change, the CFB seeks to continue to reduce its portfolio carbon footprint through the prioritisation of good environmental performance as a factor in investment decisions. The CFB is also working to persuade all companies that are heavy users of fossil fuels to reduce their carbon footprints through initiatives such as the ‘Transition Pathway Initiative’, the ‘CDP Climate Change Program’ and the ‘IIGCC Climate Solutions Program’.

In addition, climate change issues have been integrated into CFB voting practice which means that we will oppose the re-election of the Chair or members of appropriate board committees if a high-carbon footprint company is failing to improve its emissions performance. Extreme poor disclosure on climate change risk may also result in our voting to oppose the adoption of the Annual Report & Accounts.

For further information on the CFB’s work on climate change or to feedback on these results please contact Christophe Borysiewicz at

October 2018