Displaying items by tag: esg

Catholic investment managers and institutions have pledged to begin building a comprehensive set of faith-aligned investment services in 2025, aiming to align $1.75 trillion with Catholic Social Teaching. The initiatives stem from the second Mensuram Bonam conference in London, where leaders from 16 countries gathered to advance Christian-aligned financial practices. 

Key projects include a new Catholic market index, a proxy-voting consortium, long-term performance research, expanded fund identification, and a standardized reporting model to help investors monitor faith-consistent strategies more easily. 

These efforts reflect growing demand for portfolios that deliver competitive returns while avoiding activities inconsistent with Church teachings. 

Finsum:  With Christian assets large these initiatives could mark a turning point in building a global market for Catholic and Christian investors.

Investor interest in ESG, environmental, social and governance, continues to surge, driving rapid growth in ESG-focused ETFs that bundle stocks based on sustainability and responsible business practices.

Some ESG ETFs have delivered standout performance this year, while others appeal to cost-conscious investors with expense ratios as low as 0.05%. Supporters argue that ESG investing empowers individuals to influence corporate behavior while still pursuing competitive long-term returns, a point underscored by research showing ESG portfolios outperforming traditional ones over multiyear periods. 

Choosing the right ESG fund requires evaluating active versus passive strategies, aligning the fund’s mission with personal values, and understanding how it fits into an existing portfolio. 

Finsum: Investors who want their capital to reflect their priorities can use ESG ETFs as a straightforward and scalable way to invest responsibly.

Institutional appetite for sustainable investing is rising sharply, with more than 80% of global asset owners and managers planning to increase allocations over the next two years, according to Morgan Stanley’s new Sustainable Signals 2025 report. 

Surveyed investors overwhelmingly cited strong performance and the growing maturity of ESG strategies as the primary reasons behind their expanding commitments. Demand is also reshaping the competitive landscape, as roughly 9 in 10 asset owners now view sustainable investment options as a key differentiator when selecting or retaining managers. 

Top areas of focus include renewable energy, energy efficiency, and, surging in priority this year, climate adaptation, reflecting mounting concern about physical climate risks and their impact on asset prices. 

Finsum: ESG remains a long term play as the short run outlook appears clouded by regulatory changes. 

Two leading proxy advisors, ISS and Glass Lewis, have partnered with the Catholic University of America (CUA) to create investment voting guidelines grounded in the U.S. Conference of Catholic Bishops’ (USCCB) principles. The collaboration, led by CUA professors Andrew Abela and Nicholas Schmitz, aims to ensure that investors’ proxy votes align with Catholic moral and social teachings. 

Under the new framework, proposals that conflict with Church doctrine—such as those funding abortion or gender-transition procedures—will be opposed, while issues without clear moral guidance will defer to company management or abstain.

After discussions with CUA, both firms recognized demand for authentic faith-based voting services and agreed to develop new policies faithful to Church doctrine. 

Finsum: The guidelines, can help advisors of build better connection for clients of faith, by offering an ESG alternative. 

Faith-based investing has become an increasingly important niche within sustainable finance, offering investors the opportunity to align their portfolios with Catholic values while still pursuing competitive returns. 

Funds such as Allianz Global Investors’ E.T.H.I.C.A. apply the Church’s social doctrine, emphasizing human dignity, social justice, and environmental care, while excluding sectors like abortion, weapons, or adult entertainment. Similarly, Invesco’s MSCI Europe ESG Leaders Catholic Principles ETF provides exposure to European firms that uphold Catholic ethics, combining strict exclusions with best-in-class ESG practices and achieving strong performance alongside transparency and affordability.

Investment houses like Tressis also integrate moral and financial discipline, using ethical commissions to ensure portfolios support social welfare, sustainability, and human rights, while excluding harmful industries. 

Finsum: These strategies reflect a growing movement where values-based frameworks coexist with robust investment performance, helping advisors tailor to clients.