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 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.
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.
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.
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.'
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 sets out your overarching goals and objectives as a faith organisation.
Guidelines translate the policy into investment mandates and instructions.
Governance processes guide oversight to ensure investments stay faith consistent.
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.
WHAT IS FAITH-CONSISTENT INVESTING?
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.
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.