The Church Investors Group (CIG), a coalition worth GBP26 billion, is calling on asset managers to take greater account of faith when formulating investment strategies, arguing they should not have to“make do with investment solutions which are not designed with Christian faith in mind”.
The CIG used its annual conference this week to launch new guidance which it says provides “clear and practical” steps to help faith-consistent investors work in partnership with the asset management industry.
Dr Rory Sullivan, CEO of Chronos Sustainability, who co-authored the publication says: “At the heart of this project is a framework to help Christian investors set clear expectations for the asset managers who enact their mandates. This creates alignment right through the value chain in terms of the systems and processes they expect managers to have in place, the specific issues they expect managers to consider, and the outcomes and impacts they expect managers to achieve.”
According to Sullivan the guide helps faith-consistent investors “send a loud signal to the wider global investment markets”, which not only supports Christian organisations but also any mission-based organisation seeking to align its investment to its principles and values.
Stephen Beer, CIG Chair of Trustees, says faith-based investors should not be underserved by an asset management industry, which is focused on broader sustainable investment without taking specific regard of faith.
“[The CIG] have faith in sustainable investment; but we also want our asset managers to more room for faith. The role of Christian ethics, as well as risk management, is important for church investors.”
He adds: “Church investors should not have to make do with investment solutions which are not designed with Christian faith in mind. Our aim is to help members form long-term relationships with asset managers, built on mutual understanding, that enable both portfolios and humanity to flourish.”
Asset managers would do well to heed the guide from CIG since Christian investors are estimated to be worth an estimated USD1.75 trillion worldwide.
And their influence is growing.
A 2023 report from Morningstar reveals in increase in faith-based investing, which is dominated by Christian and Shariah-based funds. In recent months, Christian-based funds have consistently attracted more capital than Shariah-values funds, largely driven by US-domiciled investors.
In terms of focus, impact investing and contribution to achieving the UN’s Sustainable Development Goals (SDGs) are central to faith-based investing.
A report from the Global Impact Investing Network covering faith-based investors found that advancing human dignity and protecting the environment are often used to guide investment decisions.
The top three SDGs pursued through respondents’ faith-based portfolio were decent work and economic growth (81 per cent), affordable and clean energy (68 per cent), and reduced inequalities (68 per cent).
Oxford Saïd Associate Fellow Gayle Peterson, co-principal investigator leading The Oxford Faith-Aligned Impact Finance Project (OxFAIF), says: ‘Examining the role of faiths in impact finance is essential as more funds are needed to support efforts to address the world’s most complex problems. Protecting people and planet is consistent with the values and goals of the faith communities worldwide. More than 85 per cent of the global population is affiliated with a faith.
“We believe faith-aligned investing is a game-changer in creating opportunities to achieve sustainable development goals.”
