Demonstrating the Values of Justice, Sustainability, and Compassion through Faith and Finance

Each year, the world observes Climate Week. During this time, we at the Pension Boards–United Church of Christ (PBUCC) reflect on the intersection of faith, finance, and sustainability.

Climate change is not only a moral challenge— it is also a material investment risk. Rising sea levels, severe weather, and energy transition affect economies, financial markets, and the retirement security of our members. As stewards of the resources entrusted to us, we believe that integrating sustainability into our investment process is both a fiduciary and faith-driven responsibility.

Within the Pension Boards’ fixed income investments, this commitment takes shape through our sustainable bond strategy. Guided by the United Church of Christ’s historic call to environmental and social justice, we intentionally allocate capital toward issuers and projects that promote climate resilience, financial and moral sustainability, shared prosperity, and good governance.

This approach balances three essential objectives:

·        managing risk prudently

·        generating competitive returns, and

·        advancing the mission of the church in the world

For the Pension Boards, these investments are more than transactions— they are a public witness. They demonstrate how faith and finance can be woven together to create impact—and in this instance, climate change—by investing with a mission that embodies the values of justice, sustainability, and compassion on behalf of our members.

Capital Dedicated to Environmental Projects

Green bonds are fixed income investments in which the capital raised is dedicated to environmentally beneficial projects—such as renewable energy, energy efficient buildings, or sustainable infrastructure—so investing in them directly supports climate and sustainability goals. The Pension Boards’ green bond investments, made on behalf of our  members, extend across various parts of the fixed income market, including corporate bonds: 

·        Coca-Cola Femsa: In 2024, the world’s largest Coca-Cola bottler obtained 84% of the electricity used in its bottling operations from renewable sources. In 2020, Coca-Cola FEMSA became the first Mexican company to align its emission reduction targets with the Paris Agreement. Efforts include incorporating electric vehicles into its fleet and optimizing distribution routes to increase fuel efficiency. PBUCC’s Investment: $2.54 Million. 

·        New York State Electric & Gas Corp.: A regulated utility that provides electricity and natural gas service to homes and businesses in upstate New York issued green bonds to finance sustainable energy infrastructure projects, including investments in system resiliency, advanced metering infrastructure, and LED street lighting. The company is committed to reducing its carbon footprint and investing in clean energy. PBUCC’s Investment: $3.4 Million.

·        LG Energy Solution Ltd.: This global company specializes in batteries and energy-storage-issued green bonds to fund projects in low-carbon transportation and energy efficiency. Its initiatives support the research and development of electric vehicle batteries and the construction of battery manufacturing facilities. PBUCC’s Investment: $3.5 Million.

·        NTT Finance Corporation: The financing arm of Nippon Telegraph and Telephone Corporation uses the proceeds from its green bonds to fund projects that meet its environmental objectives, such as building energy-efficient data centers and investing in renewable energy projects. The company aims to leverage technology to reduce its own environmental impact and support a low-carbon society. PBUCC’s Investment: $3.35 Million.

·        Verizon Communications Inc.: One of the largest telecommunications companies in the United States issued green bonds to invest in renewable energy to power its networks, build more energy-efficient facilities, and support forest conservation. The company has met its 2025 renewable energy goal early and aims for 100% renewable electricity by 2030. PBUCC’s Investment: $2.07 Million.

Sustainable Property Development

Green real estate investment trusts are companies that own and operate income-producing properties and are designed to align their property portfolios and development practices with sustainability standards.  By controlling large portfolios of commercial or residential properties, green REITS can make systemic environmental improvements on a grand scale. Their “green-ness” benefits the environment in a myriad of ways including energy efficiency; reduced carbon footprint; water conservation; waste reduction and recycling; sustainable materials and design; and healthier indoor environments.

The Pension Boards invests in green bonds of several REITS including:

Equinix, a global leader in data centers and interconnection services. Data centers are highly energy intensive, and Equinix has committed to sourcing 100% clean and renewable energy for its global operations. Use of proceeds from Equinix green bonds are allocated to upgrades in data centers, green buildings (LEED certified), and water and waste reduction. Equinix reports carbon reductions in line with targets and has pledged to reach climate neutrality by 2030 across Scope 1 and Scope 2 emissions.

Another investment is in Kimco Realty, a shopping center REIT whose green bond use of proceeds includes renewable energy installations such as rooftop solar and LED lighting.  Kimco targets a 30% reduction in Scope 1,2, and 3 greenhouse gas (GHG) emissions by 30% by 2030 and net zero by 2050.  PBUCC’s total green REIT bond investments: $20 Million.

Sustainable Housing Finance

Banks provide loans for energy-efficient homes and buildings, which are then bundled into mortgage-backed securities (MBS). These green MBS direct capital toward housing that uses less energy, reduces heating and cooling costs, and lowers environmental impact.  At the Pension Boards, we invest in these securities—such as Fannie Mae’s Green MBS—where multifamily properties must meet strict green building standards.  In this way, sustainable housing finance channels everyday mortgage lending into climate solutions. Pension Boards green MBS investments are diversified across geography/location, property type, and green criteria/standards such as LEED certifications and ENERGY STAR ratings.  PBUCC’s total green MBS investments: $17 Million.  

At the Pension Boards, our efforts to manage and reduce carbon footprints have produced fixed income investment portfolios with average greenhouse gas emissions (GHG) that are 80% lower on a per-million-dollar-sales basis than their respective index benchmarks.

By combining rigorous financial analysis with a commitment to justice and sustainability, the Pension Boards demonstrates that faith and finance are not competing priorities—but mutually reinforcing ones. Our members’ retirement assets are invested in a way that seeks to provide security for them, while also shaping a more sustainable future for generations to come.

As we celebrate Climate Week this year, we reaffirm our belief that capital can be a tool for transformation. Through our sustainable fixed income approach, we aim not only to deliver financial returns, but also to embody the United Church of Christ’s vision of a just world—for people, for communities, and for the planet we share. In each of these investments, we see financial stewardship as a ministry of justice, where our faith commitments guide how we deploy capital for the common good.