On our February 25 Quarterly Investor Call, we received several questions from Congregations regarding the investment guidelines of the Common Endowment Fund (CEF’s)– notably around weapons, human rights and energy. As mentioned on the call, we promised a follow-up post to UUCEF.org summarizing the relevant guidelines, with the entire list available in the posted Investment Policy Statement.


Core Principles Guiding Investment Restrictions
UUCEF follows a socially responsible investment strategy, ensuring that funds are allocated to businesses and financial instruments that promote justice, equity, sustainability, and ethical governance. The investment restrictions and prohibitions aim to:

  • Avoid companies engaged in harmful or exploitative industries.
  • Promote investments in organizations that uphold UU values.
  • Engage in shareholder advocacy to influence corporate policies.

The UUCEF explicitly prohibits investments in certain industries and companies whose activities conflict with UU principles, including:

Fossil Fuel Industry

    The UUCEF divests from fossil fuel companies as part of its commitment to environmental sustainability and addressing climate change. Investments in companies listed on the Carbon Underground 200 (formerly Carbon Tracker 200) are strictly prohibited. This includes corporations primarily engaged in the extraction, processing, and distribution of fossil fuels.

    Weapons and Firearms

      Investments in the weapons industry contradict the UU commitment to peace and nonviolence. The fund prohibits investments in:

      • Companies that produce or sell handguns and/or are major manufacturers of weapons (among the top 50 based on revenues in the U.S. or worldwide)
      • Companies for whom weapons represent over 5% of revenue.

      Private Prisons

      The UUCEF strongly opposes the privatization of incarceration, which disproportionately affects marginalized communities. Consequently, the fund prohibits investments in:

      • Corporations that own, operate, or financially benefit from private prison systems.
      • Companies that provide security services or detention facilities that exploit prison labor.

      Tobacco Industry

      Given the adverse health effects of tobacco products and the industry’s history of deceptive marketing practices, UUCEF maintains a zero-tolerance policy toward:

      • Tobacco manufacturers.
      • Companies involved in the production or distribution of tobacco-based products, up to 5% of revenue from tobacco sales.

      Human Rights Violations

      To uphold ethical and humanitarian values, the UUCEF prohibits investments in companies that engage in or are complicit in human rights violations, including:

      • Forced labor, child labor, and exploitative working conditions.
      • Systemic discrimination and racial injustice.
      • Companies profiting from violations of international human rights laws.

      Unethical Financial Practices

      The fund avoids investments in financial institutions and businesses that engage in:

      • Predatory lending, redlining, and exploitative financial practices.
      • Corrupt governance, fraud, and unethical business conduct.

      These guidelines apply to all portfolios where the CEF employs separate or segregated portfolio accounts managed specifically for the CEF. In some areas where this is not practical (for example in bond or international equity investing the minimum separate account sizes are far larger than what the CEF would invest) we seek commingled funds – like mutual funds but for institutions – that get as close as possible to CEF guidelines. In these instances, we employ a process of monitoring to ensure this “close fit” remains so. We have had situations where a commingled fund regularly invested in companies that would normally be prohibited by CEF guidelines, and we have terminated the manager.


      The CEF is steadfast in its commitment to socially responsible investing. By enforcing stringent investment restrictions and prohibitions, the fund ensures that financial resources are managed in ways that promote justice, sustainability, and ethical corporate behavior. Through careful screening, community investments, and active shareholder advocacy, the UUCEF exemplifies a faith-driven approach to investing that aligns financial stewardship with Unitarian Universalist principles.