The United Church of Canada has adopted a new policy calling on its congregations to invest only in companies that work for peace.

The policy is particularly aimed at companies doing business in the Middle East. The wording was ratified Thursday in Thunder Bay, Ont., as part of the church's general council.

"We want to encourage all parts of the church, all ministries of the church, to be very careful to ensure that our investments are only in companies that work for peace," Rev. Bruce Gregersen told CBC News.

In adopting the wording, the church also rejected the concept of divestment. A proposal had been before the council that, if adopted, would have seen the church boycott any Canadian or international firm involved in the Israeli occupation of Palestinian territories.

But the church moved away from the idea after intense lobbying from Jewish leaders. 

"We are not simply taking one side, and we're not simply hearing one side's narrative of why the Middle East is such a difficult region," Rev. Foster Freed said.

Freed, a convert to Christianity from Judaism, pushed to have the policy's language be balanced in championing peace throughout the Middle East, including the security of Israel.

Meanwhile, the church was also getting ready Friday to choose a new spiritual leader, or moderator, from five nominees. The current moderator, Peter Short, has held the position since 2003.