Brethren Benefit Trust agrees to dialogue with Caterpillar.

Bulldozers are commonly seen as instruments of construction, used to raze old structures or sculpt land for development. But what if these machine are used for destruction, such as destroying houses, farms, ancient olive groves, roads, and water and sewer pipes that are currently in use?

According to Human rights watch, Israel has used Caterpillar's large D-9 bulldozers, which have been purchased through the US military and outfitted with tons of armored plating, to wreak havoc on Palestinian settlements by illegally destroying property and infrastructure.

As a Caterpillar shareholder, the Brethren Benefit Trust (BBT) Board of Directors in November decided to try to engage in dialogue with Caterpillar, asking the firm based in Peoria, Ill., to cease selling equipment that makes its way to Israel to be used for violent purposes against humanity. BBT manages more than $350 million of investments for its 4,000 Pension Plan members and 200 asset management clients, and uses shares that it owns on behalf of its members to promote Brethren values through shareholder activism initiatives.

The BBT board also endorsed inviting On Earth Peace to participate in the dialogue with Caterpillar. The board's deliberation of the issue came at the request of On Earth Peace. In an Oct. 14 letter to BBT, On Earth Peace asked BBT to divest of its Caterpillar holdings "to seek investment of these funds in companies whose business enriches the lives of Palestinians and Israelis."

After lengthy discussion by the BBT board, which met at the Brethren Home Community in New Oxford, Pa., the board decided to attempt dialogue with Caterpillar with the understanding that divestiture could come if the dialogue fails. Reasons for the decision included first, that BBT's socially responsible investing policy calls for BBT not to invest in companies that make more than 10 percent of their sales in alcohol, tobacco, defense, and gambling. Companies BBT invests in are checked against these benchmarks annually; in 2005 Caterpillar was not excluded on this basis. Second, BBT works at shareholder advocacy initiatives with companies that do not get screened out of BBT's investment portfolio but have at least one area where changes are advocated, based on Annual Conference statements. Third, BBT has engaged in dialogue with Caterpillar regarding the AIDS pandemic in Africa, and has found the company to be responsive to shareholder dialogue. Finally, Israel's use of the D-9s for destructive purposes goes against Caterpillar's worldwide code of conduct, which calls on its host countries to "honor their agreements, including those relating to rights and properties of citizens of other nations."

Pacific Southwest District has approved a resolution on "Divestment from Companies Selling Products Used as Weapons in Israel and Palestine," to be forwarded to Annual Conference. "This is a human rights issue that needs to be addressed," said Nolen, upon hearing of the district resolution. "BBT Board members and staff look forward to addressing this issue with On Earth Peace and the Annual Conference. Through our shareholder dialogue, we hope that the Church of the Brethren peace witness will help prompt Caterpillar to decide not to sell machines that are used against humanity."

For more about Brethren Benefit Trust see www.brethenbenefittrust.org.

Source: 12/14/2005 Newsline
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