The Church of England has dumped Vale SA, and it doesn’t look like the Brazilian miner will make it back into the good books any time soon.
The church sold its shares in Vale after a tailings dam collapse in January killed at least 249 people in the Brazilian town of Brumadinho. It has also blocked investments in the miner through an ethical exclusion process, according to Adam Matthews, director of ethics and engagement at the church’s pension board.
There’s a “long way to go” before the church is ready to backtrack, he said by phone before the Financial Times Commodities Americas Summit in Rio de Janeiro, where he is scheduled to speak.
“We obviously need to see the outcome of various investigations,” Matthews said. “We also need to further understand that the company has done all it possibly can to ensure the community locally has been supported and compensated — to the extent that’s even possible — and then at that point we will make a judgment but I think that’s quite some way off.”
The Church of England has been at the forefront of a divestment movement targeting companies failing to meet environmental rules and tackle climate change. While its total holdings in Vale were less than 10 million pounds ($12.5 million), the move highlights how investors are flexing their muscles to pressure companies to adhere to environmental standards.
For the rest of this article: https://www.bloomberg.com/news/articles/2019-09-24/after-dumping-vale-church-of-england-says-miner-has-way-to-go