FAITH & FINANCE

OVERVIEW

The faiths are major stakeholders in the planet, controlling significant wealth (mostly held on behalf of their members) as well as owning large amounts of land and property. Religions have been described as 'the third-largest economic power on Earth' and estimates frequently suggest they own trillions of dollars in assets and investments. These assets earn huge incomes, which they use to finance their operations, run their places of worship and carry out their charitable activities.

Faith groups also have a great deal of purchasing power. They run schools, clinics and hospitals. Many have cafes, hostels and halls where people come together, and they spend large amounts of money annually on food, supplies, power and more.

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‘Our question to faith groups is: "You're doing great things with what you get from the returns on your investments. But where you are putting your funds?" The inexorable logic is that your values should affect everything you do – including where you invest your money in the first place.’

– Martin Palmer, FaithInvest's Founding President and former Secretary General of the Alliance of Religions and Conservation

Faiths and finance

THE APPROPRIATE USE OF MONEY & 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, such as Islam, Judaism and Daoism, ban certain practices such as interest, or forbid investing in activities considered harmful.

Avoiding harm

When it comes to their investment policies, the starting point for many faith institutions is to avoid investing in activities 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 faiths make up the biggest group of investors divesting from fossil fuels globally.

Divestment from fossil fuels

More than 570 faith institutions have committed to moving away from fossil fuels in the last decade. Faiths make up the biggest category of groups divesting, out of 1,600 institutions from all sectors. The Vatican and World Council of Churches, among others, have called on faith groups to divest as 'a moral imperative' given the extreme climate, biodiversity and humanitarian impacts arising from fossil fuel use.

Faith-consistent investing

In recent years, there's been a growing sense that it's not enough for faiths to avoid harmful investments; they also need to invest positively to create a beautiful and just world. The fast-growing movement of faith-consistent investing (also known as faith-based or faith-aligned investing) is a form of ethical or values-based investing in which faiths actively seek investments that reflect their beliefs and values.

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