Praxis engages banks on the low carbon transition

Shareholder advocacy | October 19, 2023

Lenders have a critical role to play

Praxis Mutual Funds has joined with other investor partners to engage large banks on climate change and the low carbon transition. This new advocacy program is an extension of our continuing advocacy with power companies.

Praxis believes the natural environment is a finite resource and a gift from God. We pursue engagement on climate change as a faith-based response to our role as stewards of Creation. We are reaching out to banks to support and encourage them to enable the low carbon transition and finance the move toward sustainable energy.

Banks are connected to virtually every sector of our economy, and they wield significant influence. Banks can play a critical role in limiting global temperature rise to 1.5 degrees Celsius – the predominant scientific benchmark for avoiding the most serious outcomes of climate change.

While there are many issues to speak with banks about, investors are starting with the following:

Net Zero carbon commitments and implications
Greening lending portfolios
Climate risks and opportunities in real estate
Renewable energy financing

As these dialogues evolve, topics will expand and new issues will be added. To this point, Praxis has engaged Citigroup and Morgan Stanley, and we are also planning to engage Bank of America and JPMorgan Chase.

Bank of America, Citigroup, JPMorgan Chase & Co., and Morgan Stanley are held in the Praxis Value Index Fund and the Praxis Impact Bond Fund.

Shareholder advocacy in action

At Praxis, our investments generate a competitive financial return and deliver a clear and direct benefit to people and our planet. We believe it is our responsibility to encourage companies toward responsible business behavior.

Disclosure

As of Sept. 30, 2023, the Praxis Value Index Fund has invested 1.22% of its assets in Bank of America, 0.55% in Citigroup, 2.56% in JPMorgan Chase and 0.56% in Morgan Stanley; the Praxis Impact Bond Fund has invested 0.22% of its assets in Bank of America, 0.31% in Citigroup, 0.68% in JPMorgan Chase and 0.48% in Morgan Stanley. Fund holdings are subject to change. To obtain holdings as of the most recent quarter, visit praxismutualfunds.com.