Stewardship Update: Selling Private Prisons in the CEF Advocacy Portfolio
As part of its ongoing stewardship work, the Unitarian Universalist Common Endowment Fund (UUCEF) is reviewing the alignment of its Advocacy Portfolio with the values and policy commitments of the Association. Following several months of discussion, congregational inquiry, and internal review, the Stewardship Subcommittee of the Common Endowment Fund Investment Committee recommended divestment from publicly listed private prison operators currently held in the Advocacy portfolio, CoreCivic (CXW) and The GEO Group (GEO). You’ll find links to the letters we sent informing these companies of our decision, rationales and action below.
This action reflects a growing consensus that continued ownership of companies whose core business is the operation of incarceration facilities is inconsistent with UU values and the intent of the Fund’s Investment Policy Statement.
The review also highlighted the challenges of using shareholder advocacy in cases where a company’s fundamental business model is at odds with the principles of justice and equity that guide the Common Endowment Fund. While advocacy remains an important tool in many areas of the portfolio, the Investment Committee determined that, in this instance, ownership does not provide a credible or effective path to corporate change. Moving forward, this action is intended to strengthen alignment, reduce reputational risk, and provide greater clarity to congregations and investors about how the Fund lives its values in practice.