The Presbyterian Church (USA) seeks to be a “socially responsible” investor and thus has a long “no-no” list in terms of business investments and holdings. The question is whether or not that social responsibility extends to companies with whom the denomination does business and from whom the denomination earns income.
The denomination is forbidden through its governing body, the General Assembly, from investing in companies engaged in particular pursuits that the PCUSA regards as socially irresponsible or morally reprehensible. The Mission Responsibility through Investment web site states that “The General Assembly of the Presbyterian Church (USA) urges divestment and/or proscription of some corporations due to their involvement in military-related production (MR), tobacco (TO), human rights violations (HR), and operating for-profit prisons (FPP).”
So, if we learned that a company like Nestle has been found guilty of gross human rights violations, and the PCUSA held shares of Nestle in either its Presbyterian Foundation portfolio or its Board of Pensions portfolio, then MRTI would initiate a process of corporate engagement that could result in Nestle being added to the divestment list.
Or, if Overture 045 from Newark Presbytery “Eradicating slavery from the supply chains of vendors and other businesses which the PCUSA and its various bodies do business” were to pass, immediate divestment would be required.
The current divestment list includes recognizable names like: Boeing, General Dynamics, Lockheed Martin, Phillip Morris, Raytheon, Reynolds and Saab. The 2014 General Assembly added Caterpillar, Hewlett Packard and Motorola Solutions to the list for producing items used by the nation of Israel in what the PCUSA regards as “non peaceful pursuits.”
Overture 012 which will be before the 2016 General Assembly in Portland, Ore. in June, seeks to lengthen the PCUSA divestment list considerably by the addition of companies who own the rights to fossil fuels still in the ground. And that brings us to the PCUSA’s new tenant at its headquarters located at 100 Witherspoon Ave., Louisville, Ky.
ISCO is a pipe company whose new 35,000 sq. ft. international headquarters is now inside the Presbyterian Center in Louisville. ISCO is the denomination’s single largest tenant and provides a significant new income stream to the financially struggling denomination. That is cause for rejoicing as long as you focus on the piping they supply for ground water and golf courses. But look further and you’ll see that ISCO is the industry leader in the production of something called HDPE: high density high-density polyethylene.
ISCO’s website describes it as “a perfect choice for oil patch, and oil and gas gathering systems.” That’s fossil fuel extraction.
ISCO’s core business is mining, oil and gas, and nuclear energy production. Their website celebrates that “ISCO Industries offers solutions for various power piping applications in nuclear, fossil and renewable generation facilities. Whatever your power needs, ISCO Industries supplies pipe, fittings, fabricated fittings, related piping products and more.”
You see the rub. The land-rich cash-poor PCUSA headquarters needed a tenant. ISCO needed space, has cash and was based in Louisville. The match seems perfect. Unless, of course, the denomination’s convictions about climate change, creation care and investments are consistently applied and result in the approval of Overture 012.
Certainly there are alternatives being proposed (Overtures 032, 033 and 034) but it is reasonable to imagine that fossil-fuel divestment enthusiasts might well be protesting a tenant inside their own church’s national office building.
23 Comments. Leave new
All you can say about the louisville sluggers is that their decisions resemble Picasso Paintings.
Since ransoming property owned (titled, deeded) by local congregations is a significant revenue stream for presbyteries, one would hardly expect the gang at HQ to be any more circumspect in grubbing around for whatever income it can readily find. It’s not like they’re guided by ordinary Christian principles, after all.
Is the church allowed to deny service to anyone based on religious conviction?
Yeah right – dedicating millions to World Missions is a revenue stream, http://www.pcusa.org/news/2015/10/2/grace-presbytery-donates-28-million-presbyterian-w/
The Presbyterian Mission Agency, which entered into the rental agreement with ISCO, is one of six agencies that together comprise the corporate/business side of the PCUSA as a denomination. All six agencies are governed by the General Assembly which is a body of people elected from across the PCUSA and meets every two years. So, when you ask if “the church” is allowed to do something I’m unclear exactly which entity you mean. Also, I’m not sure how “denying service” is tied to this particular story. Please help me connect the dots so I can answer your question. – Carmen
I figured the point Dave was making was… can an entity discriminate in who it leases space to based on its own relgious-based views?…(I may be wrong, but I thought that is what he was wondering). (and thanks for your work and writings, Carmen!)
“Some are more equal than others.”
Yes, as “common tater” phrased it better. Can a group such as PC(USA) deny rental space to a company because it disagrees with their business? If it is not legal to deny the tenant that space, then it is hard to criticize the PC(USA) from doing obeying the law.
I love it Presby! Well said and great link! Here’s my favorite part, quoting Jan DeVries: “We felt strongly that the money should be used to strengthen ministry and not just our operating budget”
But most importantly, out of the $7.8 million given, $2.85 million was used for Jesus. Way more than a tithe! And to think that they selflessly kept just a mere 5 million dollars! Keep it coming Presby! I love your posts!
I think I am sensing smart, biting sarcasm here, Matt…..and I think I like it!
How does a company that makes plastic pipe fit either the spirit or letter of Overture 12, which asks for divestment in fossil fuel companies? This company does not own fossil fuel, it does not pump or store fossil fuel.
There’s nothing here that provides any evidence that the author of this piece has bothered to read the overture. How is it possible that the author does not realize that selling pipe does not mean the company is doing the exploration, drilling, storing, or selling of fossil fuels?
In fact, this statement, “ISCO’s core business is mining, oil and gas, and nuclear energy production.” is an outright lie. ISCO’s core business is providing pipe to a number of industries. It does not *operate* any mining, oil, gas, or nuclear energy production.
Slow news day?
ISCO makes a market in the energy industry. It actively seeks new customers for its product (piping) which is crucial to the bringing to market of fossil fuel as well as other forms of energy, including nuclear. In exchange for its product and related services, ISCO earns revenue from the energy industry, a portion of which is then available to cover lease payments to the PCUSA. Such payments are also a tax deductible expense to ISCO.
Overture 12 calls upon the General Assembly to recognize “the moral mandate for humanity to shift to a sustainable energy regime…” and to “reduce our use of fossil fuels and shrink our carbon footprint.”
Sorry, I’m not seeing it. But I think this is one of those things you have to want to see in order to find a problem.
The lead tenant of the PCUSA is an energy service provider whose product and services help bring to market fossil fuel as well as other forms of non-renewable energy.
In light of Overture 12 with its summons to “reduce our use of fossil fuels and shrink our carbon footprint”, I find surprising that some do not see the glaringly evident paradox.
I think it’s being compared to the caterpillar type divestment. I don’t think the PCUSA has any restrictions from accepting money made by fossil fuel companies, gambling, liquor sales, human trafficking or drug deals. The restrictions only apply to investment of the assets received.
I think that if you attached a $20 bill on a fishing hook and dragged it outside their parking lot, a line would form from the building to catch it.
The same principle applies, the PCUSA could have sunk a oil/gas well on its Louisville footprint for royalties and it would never make the connections. The PCUSA is not so much a coherent or even functional religious denominations but a collection of various tribal, ideological interests that have found home in the “big tent”. The fact that one hand does not know the other is doing in Louisville is neither surprising or all that odd to be honest. As the tide recedes and he money becomes tighter it is every interest or cause or crusade for themselves.
What does PCUSA do if one of the company’s owners or directors or officers is a pro-Israel Jew?
Repeat an untruth often enough and you’re hoping that it becomes the truth?
This company is *NOT* an energy services provider. They make plastic pipe. Period. Some of that pipe is sold to the energy industry, some to water, some to mining.
Maybe I do not see the paradox because I’m not so busy making up basic facts.
This isn’t a fossil fuel company.
“They make plastic pipe. Period”
You are misinformed. ISCO also sells pumping equipment to facilitate mining operations.
In its own words, “Our pump program is an integral component of our total system design, supply and installation for slurry systems,water systems and for processing and recovery of fine materials in the mining industries.” This, of course, is another example of the work of an energy service provider.
ISCO’s primary business is supplying piping to various industries. Their primary product is HDPE piping (high density polyethylene), an extremely durable plastic material better suited to conveying many liquids/gases than traditional metal pipes. They are also an industry leader in a newer form of plastic piping known as PP (polypropylene). The essence of their business is selling these plastic products. For those of you unsure of where synthetic plastic comes from, the answer is — crude oil. The complex plastics are formed from the refining of crude oil. So in addition to the issue that ISCO products support the oil, gas, coal and other non-renewable energy industries, these products themselves are dependent upon the oil industry. If oil production were shut down, ISCO would go out of business. But then again, so would many other companies which depend either on the sale or use of plastic products. Bottom line for ISCO, both on the production and sale side, it is dependent upon the petroleum industry.
*sigh*
Like I said, you have to *want* to see it. Thank you for proving my point.
Nevertheless, they do not pump oil.
Tom, I hope I answer your question here. To quote you, “How is it possible that the author does not realize that selling pipe does not mean the company is doing the exploration, drilling, storing, or selling of fossil fuels?”
Tom, pipe does not explore or drill for crude oil or NGL’s. Nor does it store crude oil, refined fuels, NGL’s, or any other type of hydrocarbon. Pipe is only a medium to transport energy, liquid or vapor. Same as a truck that hauls crude oil, or even a truck that hauls salt water in the oil field. Pipe is an energy transport without wheels. It’s energy my friend. Poly, stainless, drill bits/pipe, etc… And if you’ll look at the ISCO website, they’ve been a class act.