Investing in Alignment with Unitarian Universalist Values
The UU Common Endowment Fund (UUCEF) seeks strong, long-term investment returns while reflecting Unitarian Universalist values, including environmental sustainability, human rights, racial and economic justice, and responsible corporate behavior.
Investment screening helps us align our investments with these values by avoiding certain industries and business activities while seeking investments that contribute to a more just and sustainable world.
Our approach is guided by the UUCEF Investment Policy Statement (IPS).
How Investment Screening Works
UUCEF invests primarily through professional investment managers who select and manage investments on our behalf. Rather than maintaining a centralized list of approved and prohibited companies, we incorporate our values into investment guidelines, manager selection, and ongoing oversight.
1. Prohibiting Certain Investments
Our Investment Policy Statement establishes restrictions on investments inconsistent with UU values, including:
- Fossil fuels: Companies on the Carbon Underground 200 list of major fossil fuel reserve owners.
- Weapons and firearms: Certain manufacturers and sellers of weapons, subject to policy-defined thresholds.
- Tobacco: Tobacco manufacturers and companies exceeding specified tobacco-related revenue thresholds.
- Private prisons: Companies involved in prohibited private prison activities.
- Human rights: Companies consistently and directly complicit in egregious human rights violations.
The IPS provides detailed definitions, thresholds, and limited exceptions, including holdings permitted for shareholder advocacy.
2. Selecting Investment Managers Who Share Our Values
We consider environmental, social, and governance practices when selecting and evaluating investment managers.
We seek managers whose investment approaches reflect our commitments to sustainability, human rights, diversity, equity, and inclusion. We also consider how managers evaluate companies, address risks, exercise shareholder rights, and engage with businesses on important social and environmental issues.
Our goal is not simply to avoid harmful investments, but also to direct capital toward businesses and strategies that contribute positively to society.
3. Monitoring Investments and Manager Practices
Screening works differently depending on how UUCEF invests.
Separately managed accounts: These portfolios are managed specifically for UUCEF. Investment managers are expected to follow the applicable restrictions established in our IPS.
Pooled investment funds: UUCEF invests alongside other investors and generally cannot impose its own restrictions on individual holdings. We therefore seek strategies that closely align with our principles and review their investment approaches.
When concerns arise, we may engage with managers, seek changes, reconsider investments, or pursue alternatives.
Beyond Screening: Using Our Influence as Investors
Investment screening is one part of our broader commitment to socially responsible investing.
UUCEF also promotes positive change through shareholder engagement and proxy voting. These activities allow us to advocate for improved corporate practices on climate change, human rights, racial justice, labor standards, and corporate accountability.
We also make community investments that support underserved communities and expand economic opportunity.
Together, these approaches help us pursue our financial responsibilities while advancing UU values.
Our Commitment to Accountability
UUCEF’s Investment Committee, supported by UUA investment staff and advisors, oversees our investment policies and practices.
Aligning a diversified portfolio with our values requires ongoing attention as corporate practices, social concerns, and investment strategies evolve.
We are committed to strengthening oversight, reviewing our practices, and communicating transparently with investors about our progress and challenges.
Learn More
- UUCEF Investment Policy Statement (October 2025) — Our investment principles, restrictions, and responsibilities.
- Investment Guidelines of the Common Endowment Fund — How investment restrictions apply to our portfolios.
- Proxy Voting — How we exercise shareholder rights.
- Community Investing — Investing in underserved communities and economic opportunity.
For questions about our investment policies and practices, please contact the UUCEF Investment Office.