SRI Guidelines

Social Restrictions

1. Investments shall not knowingly be made in any company producing, as its core business, alcoholic beverages (beer, wine, distilled liquor) or
   1. Receiving 10% or more of gross revenues from selling, distributing or marketing alcoholic beverages, or
   2. Receiving 10% or more of gross revenues from supplying key elements for alcoholic beverage production.
2. Investments shall not knowingly be made in any company manufacturing, as its core business, cigarettes, cigars, chewing tobacco or smokeless tobacco or
   1. Receiving 10% or more of gross revenues from selling, distributing or marketing tobacco-related products, or
   2. Receiving 10% or more of gross revenues from supplying key elements to the tobacco industry (cigarette papers, flavorings, adhesives, etc.)
3. Investments shall not knowingly be made in any company owning or managing, as its core business, casinos, racetracks or off-track betting parlors or
   1. Receiving 10% or more of gross revenues from the production of goods and services related to the gaming or lottery industries.
4. Investments shall not knowingly be made in any company receiving 10% or more of gross revenues from the production, sale or distribution of products or services that are considered pornographic or meet the legal definition of “obscene” or “harmful to minors.”
5. Investments shall not knowingly be made in any company
   1. Receiving 10% or more of gross revenues from the manufacture, sale or distribution of antipersonnel weapons (land mines, “assault-type” automatic and semiautomatic weapons, firearms, etc.) and ammunition provided for commercial and private markets. Exceptions may be made for weapons and ammunition provided for legitimate military or law enforcement uses.
   2. Ranking among the top 100 Department of Defense (DOD) contractors and whose ratio of DOD contracts involving the production and distribution of conventional military armaments or weapons-related systems to gross revenues is greater than or equal to 10%.
   3. Whose identifiable ratio of nuclear weapons contract awards from DOD or comparable agency or department of any foreign government to gross revenues is greater than or equal to 3%.
6. Investments will not be made in corporations in which 10% or more of gross revenues are derived from a combination of the above (A – E.).
7. Emerging markets commingled equity pools are exempt from the above restrictions if specifically authorized and the aggregate exposure of companies otherwise prohibited does not exceed 10% of the value of the fund.
8. A company may be considered ineligible for purchase even when not in direct violation of General Board screens. A negative reputation or public image or actions in violation of other United Methodist Social Principles may justify ineligibility.
9. The General Board will consider divesting the securities of any company considered ineligible for purchase according to these guidelines or whose actions are in violation of United Methodist Social Principles.