Your beliefs become your thoughts; your thoughts become your words; your words become your actions; your actions become your habits; your habits become your values; your values become your destiny.
– Mahatma Gandhi
FOR PEOPLE
AND PLANET
FAITH-CONSISTENT
INVESTING
Faith-consistent investing (FCI) is an approach to investing that takes faith values into account when making investment decisions. FCI involves investing in a manner that reflects an organisation's values and principles – often aligning with environmental, social and ethical considerations. In this way, faith institutions seek to live their values in their investments.
GROWING THE FCI MOVEMENT
ROLE OF FAITHS IN DRIVING SOCIAL CHANGE
For centuries faith groups have played a significant role in driving social and environmental change, from the abolition of slavery to improvements in workers' conditions in the 1800s, thanks to Quaker beliefs in equality and integrity; and from the Anti-Apartheid Campaign in South Africa in the 1980s, to the growing faith-based environmental and climate movements today.
APPROPRIATE USE
OF WEALTH
When it comes to finance, faith-based organisations have always taken values-based views around the appropriate use of money and wealth. Many religions teach that economic decisions have moral consequences and that wealth should be distributed fairly and used for the common good. Some faiths ban certain practices such as interest, or forbid investing in activities considered harmful.
HUGE RISE IN
INTEREST IN FCI
In recent years, there has been a huge rise in interest in faith-consistent investing (FCI), a form of ethical investing also known as faith-based investing or faith-aligned investing. With FCI, as with conventional forms of investing, faith groups want to generate returns from their investments in order to fund their staff, schools, hospitals and charitable activities, but they want to do so in a way that reflects their beliefs and values.
AVOIDING HARM
& DIVESTMENT
Many faith institutions start by using negative screening to avoid investing in ventures that conflict with their values, such as the arms trade, pornography or gambling. Increasingly, this includes divesting from institutions that damage the planet or contribute to the climate crisis. That's why faith groups make up the biggest group of investors divesting from fossil fuels.
PROACTIVE
INVESTING
While faiths are good at knowing what they don't want to invest in, in recent years there has been a growing consensus that it's not enough simply to avoid harm. In order to live their values in their investments, faith institutions are increasingly considering how to invest proactively for a beautiful and just world and are actively seeking investments that reflect their values.
INVESTMENT
GUIDELINES
Developing faith-consistent investment guidelines is a vital step for faith groups seeking to align their investments with their values. These are the essential governing documents for faith investment policies. As one member says, 'Having clear and comprehensive faith-consistent investment policies and guidelines is a prerequisite for becoming fully mission aligned.'
WHY IMPLEMENT FCI?
Faith-consistent Investing, based on clearly stated policies and guidelines:
Expands the outcomes and influence possible by faith-based groups
Complements the good acts, grants, and positive messaging by faith groups
Clearly expresses faith organisations' commitment to their faith beliefs & values
Prevents passive or inadvertent investing against a faith organisation's values
ESSENTIAL COMPONENTS OF FCI
POLICY
Policy sets out your overarching goals and objectives as a faith organisation.
GUIDELINES
Guidelines translate the policy into investment mandates and instructions.
GOVERNANCE
Governance processes guide oversight to ensure investments stay faith consistent.
COMMUNICATION
Communication shares objectives and investment activities to internal and external audiences
NEXT STEPS
Whether you are beginning this journey or reviewing your current policies, we can help.
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Take a look at our WHAT WE DO page to find out more about the practical support we provide to faith groups and faith-based asset owners, including free-to-access services and benefits, and our paid-for services.
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Download our guide to developing faith-consistent investment guidelines as well as other resources of relevance to faith-based investors.
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Contact us for a free assessment of your faith-based organisation's current investment policies and guidelines.
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Sign up to our Subscriber Network for the latest news and updates as well as early access to research and resources.
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Join our FCI Interest group which meets online every quarter to explore issues around faith-consistent investing with other faith-based asset owners.
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Check out our FCI resources to learn more about faith-consistent investing and to begin your FCI journey.
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If you need specific one-one-one support, contact us to find out how we can help.
WHAT IS FAITH-CONSISTENT INVESTING?
Faith-consistent investing (FCI) is....
INTENTIONALLY aligning assets that are available to invest with what your faith community wants to achieve...
...by INTEGRATING faith beliefs, teachings and values into foundational investment governance documents and processes....
...as this ROOTS investment decisions and translates faith values into actionable investment language.
FAITH VALUES
Many faith groups share core values – for example, caring for the poor, feeding the hungry and protecting the vulnerable – which are expressed through their sacred texts and teachings.
Many also have officially approved statements or position papers on the environment, social justice, health, housing, weapons and other activities, based on their beliefs, teachings and priorities.
WHAT DO WE MEAN BY 'ASSET'?
An asset is an item or resource containing economic value and/or future benefit that is owned or controlled by an organisation. Examples include land, buildings and investments. Such assets have value to deliver future benefits, and can be used to meet debts, commitments, or to further legacies and mission.
Assets can:
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sustain (fund the organisation's existence and activities)
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be used sacrificially (grants and giving)
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be invested to spark new enterprises and new hope
WHAT DOES FAITH-CONSISTENT INVESTING MEAN TO YOU?
What do other people say about faith-consistent investing? Hear what delegates at our Bold Plans and Faith-consistent investing conference in London said when we asked them what FCI meant to them in this series of short vox pops.