Investment Strategies Ten Questions

In 2024, the Union for Reform Judaism (URJ) adopted a landmark resolution committing to address the climate crisis through investment strategies. The resolution is rooted in our faith tradition of caring for the earth that sustains us and encourages all Reform Jewish Movement entities and congregations with financial investments to implement a strategic combination of fossil fuel divestment, shareholder engagement, and redirection of financial holdings.

No congregation, clergy, or congregant is bound by the positions adopted in URJ resolutions; resolutions reflect a collective position and offer guidance to Reform movement entities looking to us for leadership and wisdom. To help Reform congregations across North America explore and use this resolution, the Religious Action Center of Reform Judaism (RAC) and Dayenu: A Jewish Call to Climate Action created an FAQ page featuring ten essential questions congregations should ask their financial advisors when pursuing Environmental, Social, and Governance (ESG) investments or divesting from fossil fuels.

Disclaimer: These resources do not provide financial advice for congregations. Rather, they offer a framework for discussion and an introduction to the importance of this issue . Congregations should always consult with a financial advisor and counsel (if applicable) before making any investment decision.

Why does the URJ care about addressing the climate crisis?

The Reform Jewish movement has long recognized the need for a national energy policy that also protects against global warming. The URJ's resolution on The Environment (1991) called for government to take action, including "the provision of significant resources for the study of mitigation of global warming and destructive environment change." A subsequent resolution on Climate Change and Energy (2009) stated: "We now face the unprecedented challenge of climate change due to greenhouse gas emissions, and the need for serious and urgent action on this issue has never been clearer." In 2017, the resolution on Addressing the Impacts of Climate Change reaffirmed and added: "What has changed since our prior statements? The urgency." 

In parallel, the Central Conference of American Rabbis (CCAR) 2015 Resolution on Climate Justice recognized global climate justice as a priority social justice initiative, pledging "to continue reminding ourselves, our communities and our leaders the teaching of our tradition that, if we corrupt this Earth, 'there will be no one to set it right thereafter.'" In 2022, CCAR's Resolution on the Climate Crisis recognized the urgency for change, calling for education, advocacy, and local practical actions. And in 2023, the Religious Action Center (RAC) launched Power for Purpose: The Reform Movement's Campaign for Climate Justice to build power to advance environmental justice and strengthen federal climate regulations.

Why focus on investments?

A December 2022 report by Dayenu found that the largest Jewish institutions (including the four major denominational movements, 20 largest Federations and national Federation, and 20 largest American Jewish foundations) held $34.7 billion in total investments, including about $3.3 billion in fossil fuel investments. Fossil fuels accounted for a total of nearly 10 percent and median of 5.54 percent of all investments. The report estimates this is only one-third of total American Jewish communal invested assets, so the full exposure of Jewish communal investments in fossil fuels may be approximately $10 billion. (This does not include Jewish congregations' or individuals' investments).

The Reform Jewish Movement has long recognized that our financial investments are a way to express our moral values and commitments. Jewish tradition teaches that we are responsible not only for our words and direct actions, but also for how our resources impact the world. In the 1997 resolution on Socially Responsible Investment, the URJ adopted the concept of the "double bottom line" - that investment should look at both the rate of return and the alignment of the investment with our values. Many organizations within the Reform Movement, from the URJ and CCAR to individual congregations, invest assets in stocks and mutual funds that include fossil fuel companies (those engaged in the exploration, production, transportation, sale, or manufacturing of fossil fuels or fossil fuel byproducts) and companies that provide essential assistance to the fossil fuel industry (including financial institutions that provide necessary funding and utility companies that provide an outlet for fossil fuel products).

As our congregations and institutions hold significant financial assets, we have an opportunity to reflect our commitment to protecting God's creation through our investments.

How do divestment and impact investing contribute to real-world environmental outcomes beyond our portfolio?

While one congregation's investment decisions may seem small, each action is part of a movement representing trillions of dollars. When religious institutions divest or make impact investments, it sends a powerful moral signal that directs capital to environmental justice projects and renewable energy infrastructure. Furthermore, a congregation's action inspires other institutions. When one synagogue aligns their holdings with their morals, it creates a model that empowers other congregations, universities, and organizations to follow, multiplying impact far beyond your own holdings.

Is a phased or partial approach to divestment effective?

When large or small institutions in faith-based organizations, higher education, or public sector funds have moved towards shareholder activism and/or divestment, they have typically established a 3-5 year timeline to balance the needs of study, planning, consideration of options, prudent timelines for decision making, and annual reporting and engagement that is open to changing conditions. What matters most is making a clear commitment with a concrete timeline and not letting the perfect be the enemy of meaningful action.

How can we build support in our congregation for addressing the climate crisis through strategic investments?

No two congregations are alike, so building support requires tailoring your approach to your community's culture and concerns. Start by grounding the conversation in Jewish values so congregants see investment decisions as fulfilling sacred obligations. Provide education through learning sessions where members can ask questions about ESG investing and returns, using RAC and Dayenu resources alongside your financial advisor's expertise. Address concerns directly with data showing that fossil fuel-free portfolios can perform competitively while reducing long-term risk. Share success stories from other congregations and consider forming a Green Team to champion the effort and keep members engaged. Secure early support from your clergy, board, and influential lay leaders, and connect investment decisions to your congregation's broader climate actions-whether that's building energy efficiency, sustainability practices, or advocacy work. The key is meeting your congregation where it is: some communities will embrace bold action quickly, while others need gradual education and consensus-building. What matters is creating space for honest dialogue that honors both financial stewardship and moral responsibility.