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 is the alignment of faith values with investment decisions. Faith-consistent investing (FCI), also called faith-based investing, 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.
AVOIDING HARM:
DIVESTMENT
Many faith institutions start by avoiding 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.'
FAITHS AS KEY STAKEHOLDERS IN THE PLANET
Faiths have huge outreach (84% of people worldwide say they belong to a faith) and hold enormous financial assets to build schools, hospitals, clinics and orphanages as well as distribute cash to support the poorest and most marginalised. They own investments, pension funds, private sector businesses as well as land and millions of buildings worldwide.
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.
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
ESSENTIAL COMPONENTS OF FCI
Find out more about FaithInvest's approach to FCI, and how we can support you to align your values with your investment guidelines and policies.
FCI RESOURCES & GUIDES
If you are beginning this journey, or reviewing your current policies, we can help. Download our guide to developing faith-consistent investment guidelines below as well as other resources of relevance to faith-based investors. And take a look at how FaithInvest can help you further.
GOOD INTENTIONS
Our March 2023 white paper, Faith-Consistent Investing and Smaller Organisations, looks at the challenges faced by small faith groups with limited resources when seeking to align their values and iinvestments – and offers some solutions.
FCI GUIDE
The Faith Values to Investment guide, pubished in September 2021, is aimed at faith organisations seeking to align their values and their investment policies, providing a framework for doing so.
A CAPITAL SOLUTION
This 2000 publication by ARC and WWF, supported by the World Bank, looked at the extent of faith assets and was the first to discuss the need for faith-consistent investment policies.
GOOD INTENTIONS
Our April 2022 Good Intentions paper Is the first in-depth, multi-faith analysis to take a deep dive into publicly available faith investment policies and guidelines, and assess the extent to which nvestments are aligned to faith values.
ZUG GUIDELINES
The Zug Guidelines, published in 2017, describe the investment priorities of dozens of traditions from eight major faiths, plus the ethical rationale behind their decisions.
IMPACT INVESTING
Our February 2022 Roadmap discusses three key topics for faith-based investors: understanding alignment versus Impact, private markets for impact investing, and tradeoffs between impact and investment outcomes.
FAITH IN FINANCE
The 2016 Faith in Finance paper explores the role of faiths as investors. Commissioned by OECD and UNDP, it was published by the Alliance of Religions and Conservation.