Letters

Rocket Lab not a Suitable Investment for MTA

Kia ora editor,

Are NZ Methodist Church members aware that our church is contributing to the militarisation of space?

The Methodist Trust Assn. (MTA), the investment arm of the NZ Methodist Church is investing in Rocket Lab Ltd which is heavily into military contracting by building and launching satellites which are used to carry weapons.

The investment policy for the church states that MTA “does not buy or hold companies that derive five percent or more of revenues from weapons related contracts”. The evidence that I have collected clearly establishes that the bulk of satellites Rocket Lab builds and launches are for military contracts with only a minority for environmental research.

MTA argues that because Rocket Lab Ltd only creates the satellites they can’t be held responsible for how the satellites are used. Rocket Lab have however entered into an agreement with Lockheed Martin, a major USA based weapons manufacturer, who unfortunately is also involved in supporting Israeli settlements in occupied Palestinian territory contrary to United Nations resolutions. Rocket Lab has also entered into other contracts to provide “fighting platforms” in space.

Rocket Lab originally gave Hawkes Bay Mahia Māori an undertaking that satellite launches from the Mahia Peninsula would be entirely for peaceful purposes. When this promise was broken, a founding Co-Director of Rocket Lab left in protest.

A number of Mahia Māori are also protesting. Apart from MTA only paying lip service to the Responsible Investment policy of the church, doesn’t our church’s Bicultural & Treaty of Waitangi commitment require us to stand with Mahia Māori and insist that MTA drop its invesment in Rocket Lab Ltd?

To not do so, is to feed the accusation, that a number of concerned organisations are already making, that the NZ Methodist Church is contributing to the weaponization of space.

If you share my concern, please write to the Chair of MTA, PO Box 58682, Botany, Auckland.

Brian Turner, Christchurch.

Methodist Trust Association Respond

We appreciate the concerns raised by Mr Turner with respect to an investment made by the Methodist Trust Association in Rocket Lab Limited shares on the New Zealand stock exchange.

It is crucial for us to address such matters transparently and to ensure that our actions align with the Responsible Investment principles that guide our church community.

The MTA Board and staff take our responsibilities seriously in adhering to the investment policy set forth by the Church. Our investment policy clearly states that we do not buy or hold companies that derive five percent or more of revenues from weapons-related contracts.

Our policies do permit investments in companies that:

Ø have some minor military business,

Ø have some contracts with the US Department of Defense for goods and services that are clearly not weapons-related,

Ø manufacture computers, electric wiring, and semiconductors or that provide telecommunications systems (unless these products and services are specifically and exclusively weapons-related, when the 5% criteria applies.

Having materiality criteria like this becomes extremely important as almost every investment could be argued as not socially responsible in one way or another at a micro level. We have in the past, for example, discussed the issue of investments in airport operating companies being in breach because they rent space to retail organisations that sell tobacco products. Our job is to 'sanity check' our policies and develop a workable solution that leads with socially responsible investing and then secondly maintains a market return to depositors. It is of course the ongoing challenge for us to gauge the mood of the Connexion and the work we do therefore requires analysis, policies and interpretation.

The MTA board continually reviews our investment portfolio to ensure compliance with the Church’s Responsible Investment Policy and ethical standards.

Regarding the concerns raised about Rocket Lab's sales to military contractors, we would like to emphasize that our current research and interpretation suggests that the investment in Rocket Lab does not violate our investment policy, as they are not weapons-related. However, we understand the importance of transparency and accountability in this matter, and we are currently engaging with Rocket Lab directly to seek clarification around some details on one of their recent contracts.

While we acknowledge Mr Turner's concerns about Rocket Lab's contracts with Lockheed Martin, to date these have been for standard commercially available products and services.

Furthermore, Rocket Lab have publicly stated that “Rocket Lab does not and will not launch weapons. This is something we have committed to as a company”.

Regarding Mr Turner’s comment about Hawkes Bay Mahia Māori, the only correspondance on this has been from Mr Turner and we have not been apporached at all by Mahia Māori with concerns that they share. After receiving correspondence from Mr Turner, we also engaged with Taha Māori leadership regarding the concern, and they were not aware of the issue.

Our church's bicultural & Treaty of Waitangi commitment is a core part of our identity, and we take this commitment seriously. We continue to work diligently to ensure that our actions and investments reflect the values of justice, fairness and respect for all communities, including standing in solidarity with Mahia Māori.

Rest assured that we continue to closely monitor the activities of all our holdings with respect to our Responsible Investment Policy, and if necessary, appropriate steps will be taken to address any identified issues.

Dave Johnston

Chair of the Methodist Trust Association on behalf of the Board