Faith and Asset Ownership

Abstract

This article examines the Church of England’s engagement with Royal Dutch Shell, demonstrating how a faith-based asset owner can influence corporate behaviour to align with moral objectives. Unlike the conventional investment chain, the Church engaged directly with Shell, bypassing asset managers, to advocate for greenhouse gas emissions reduction targets consistent with the Paris Agreement. While internal tensions persisted between practical considerations and theological commitments in the Church, the engagement prompted Shell to adopt GHG-reduction metrics. This engagement contributed to Shell incorporating GHG-reduction metrics into executive remuneration, marking a novel precedent among major oil companies. This case highlights the potential for asset owners to maximise shareholder welfare, balance theological commitments with pragmatic investment considerations, and provide insights into mechanisms through which ethical objectives can shape corporate behaviour within complex investment networks.