Despite Israeli Controversy, Methodists Will Not Pull Investments

After deliberation last week, officials from the United Methodist Church will not divest their $5 million holdings from Caterpillar Inc., the construction equipment company that does extensive business with the Israeli army.

The Associated Press reported that United Methodist Church officials had considered selling all of the group’s stock in Caterpillar (NYSE: CAT) because the Israeli army uses Caterpillar equipment to bulldoze homes and other property in occupied territory, such as the West Bank. The church’s investment in Caterpillar represents a small percentage – less than 1 percent – of its $17 billion pension plan.

Church Solutions reported in January about the group’s conference in Ghana, revealing the increased global consciousness in United Methodist Church

The Methodist General Board of Church and Society announced last week they did not intend to bring up the issue at this week’s General Conference in Texas because they have already seen “positive results” after discussion the issue with officials at Caterpillar.

However, $141 million of Methodist money is still invested in other businesses or organizations that are somehow related to Israel’s territorial occupation.

The church and society board released in a statement that, “Caterpillar has opened discussions with the board, issued a statement denouncing immoral use of its equipment, and has agreed to continued dialogue.”

Caterpillar chief executive James Owens, who is a member of the United Methodist Church, has condemned the “illegal or immoral use of Caterpillar equipment.”

Several church organizations, including Presbyterian Church USA and the Roman Catholic Dominican Sisters, have also considered divesting in companies that contribute somehow to Israeli occupation but none have actually pulled stock.

Caterpillar is based in Peoria, Ill., and the United Methodist Church, though having no true headquarters, has most of its administrative offices in Nashville, Tenn.