The Church of England Pensions Board has published its 2025 Stewardship Report, outlining its approach in an increasingly fractured and volatile world of growing conflict and weakened global institutions.
Guided by strong member support for its Ethical and Responsible Investment priorities, the Board details how it is working to strengthen global collaborations with other pension funds, seeking greater impact through its investments and stewardship while supporting peacebuilding in conflict-affected areas.
“Meeting long-term pension promises in an increasingly fragile world involves careful and responsible stewardship,” says Clive Mather, Chair of the Pensions Board. “Our priorities have strong support from our members. We have already made significant progress, including initiating a new Global Centre for Peacebuilding and Business, as well as setting out a 10-year Vision and recommendations for a rules-based mining sector that has gained traction with both world leaders and fellow investors.”
In the Board’s 100th year, the report underlines its long-term responsibility in how it manages GBP3.5 billion of pension savings on behalf of more than 43,000 members. The Board achieved returns of 9.5 per cent on assets invested for growth within its defined benefit schemes in 2025, continuing a strong track record averaging 8.2 per cent per annum over the past two decades.
Through the wider Anglican Communion, the Board also sees how investments can affect the world’s poorest and most marginalised.
“Capital markets are a human construct, not an alien imposition, and investment decisions are not devoid of ethical or moral consequence,” says Adam Matthews, Chief Responsible Investment Officer. “Decisions to invest in a particular company, market, or sector matter. We seek positive impact that supports human flourishing, economic growth, and innovation, while also acting, as we have on mining, where we see investments driving conflict, unintended consequences, or harm to communities or the environment.”
“In line with the Church’s ethos and mission, we engage with the companies in which we invest as well as the policy environment within which they operate. We work closely with other Asset Owners to improve corporate practice and address systemic risks like climate change, nature loss or resilience of food systems,” says Laura Hillis, the Board’s Managing Director for Responsible Investment.
Responsible stewardship
The report is structured around the five responsible investment priorities introduced in 2025: supporting ethical and responsible markets, tackling global systemic risks, strengthening the UK market, supporting peacebuilding and respect for human rights, and delivering real-world impact through investments and stewardship.
In 2025, the Board voted at 1,041 company meetings with 15,357 ballots cast, voting against management recommendations 19.27 per cent of the time. A total of 556 companies were excluded from investment across categories including climate, defence, human rights, and governance.
The report details significant developments during 2025, including:
A stricter defence investment policy, following advice from the Ethical Investment Advisory Group, tightening the revenue threshold for investment in companies with defence-related activities from 10 per cent to 5 per cent.
Progress towards establishing a Global Centre for Peacebuilding and Business, to be headquartered in Cape Town, which will help investors and companies engage in conflict-affected environments.
The publication of a 10-year Vision for responsible mining by the USD19 trillion-backed Global Investor Commission on Mining 2030, which the Board established and chairs. The Vision was presented to President Lula of Brazil and his cabinet, after which Brazil announced a Presidential Commission to advance the country’s response on mining and critical minerals with a new mining law anticipated later this year.
The launch of the independent Global Tailings Management Institute, six years after the Brumadinho disaster that claimed 272 lives, with the Board as a founding partner alongside the UN Environment Programme and the International Council on Mining and Metals.
Expanded work on food systems and energy systems as part of a new focus on system-level risks, including engagement with National Grid and European car manufacturers on the energy transition.
