Agency withdraws petition calling for divestment

United Methodist News Service
After direct meetings with Caterpillar Inc., The United Methodist Church’s social action agency says it will withdraw a petition calling for divestment from the heavy equipment manufacturer.
The petition, sent to the den-omination’s top legislative body, charged that the company profits from illegal Israeli occupation of Palestinian land and contributes to the occupation by supplying Israeli Defense Forces with heavy equipment.
Sending the petition to the 2008 General Conference has achieved positive results, said Jim Winkler, top executive of the United Methodist Board of Church and Society in Washington.
Since January, Caterpillar has opened discussions with the board, issued a statement denouncing immoral use of its equipment and agreed to continued dialogue.
General Conference began April 23 and will meet until May 2 in Fort Worth. The legislative body meets every four years.
The Caterpillar statement sent to Winkler said, “Caterpillar’s products are designed to improve quality of life...We do not condone the illegal or immoral use of any Caterpillar equipment...We expect our customers to use our products in environmentally responsible ways and consistent with human rights and the requirements of international humanitarian law.”
The statement affirmed the importance of continuing dialogue between Caterpillar and The United Methodist Church. “We are committed to further conversations and possible philanthropic activities in Palestinian areas.”
About $5 million of the den-omination’s estimated $17 billion pension portfolio is invested in Caterpillar stock.
The Rev. Steve Sprecher, a director of the United Methodist Board of Church and Society, was part of the committee that led the agency to send the petition to General Conference. He called divestment “a time-honored policy” within The United Methodist Church.
“We will report back to the 2012 General Conference on the progress of our discussions with Caterpillar,” he said. “Our church believes strongly in corporate social responsibility.”
The 2004 General Conference passed a resolution opposing Israeli settlements in Palestinian land. The United Methodist Church opposes continued military occupation, confiscation of Palestinian land, destruction of Palestinian homes and the continued building of illegal Jewish settlements.