{"id":30256,"date":"2020-10-31T20:28:34","date_gmt":"2020-11-01T00:28:34","guid":{"rendered":"https:\/\/test.greenmoney.com\/2025\/?p=30256"},"modified":"2020-11-22T08:48:03","modified_gmt":"2020-11-22T13:48:03","slug":"faithful-finance-strategies-for-connecting-values-and-capital-to-generate-real-world-impact","status":"publish","type":"post","link":"https:\/\/test.greenmoney.com\/2025\/faithful-finance-strategies-for-connecting-values-and-capital-to-generate-real-world-impact\/","title":{"rendered":"Faithful Finance: Strategies for Connecting Values and Capital to Generate Real-World Impact"},"content":{"rendered":"
>> Back to November 2020 Issue<\/a><\/div>\n

\"KateFaith-based investors have been pioneers in the field of responsible investing for nearly fifty years. In 1971, the Episcopal Church penned the first shareholder resolution addressing a social concern: racial segregation. Empowered by their ownership stake, the church called for General Motors to divest from South Africa until apartheid was ended. Paul Neuhauser<\/a><\/strong>, author of the resolution, later reflected on the church\u2019s underlying conviction: \u201cOur view was that, because of the conditions there, they should not operate under such immoral conditions.\u201d That demand ultimately prompted a number of major corporations operating in South Africa to adopt the Sullivan Principles, a set of operating guidelines focused on basic fairness and anti-segregation.<\/p>\n

By wielding their power effectively, these early faith-based investors generated change \u2013 and sparked a movement. They knew their work was essential fifty years ago, and it is even more important now.<\/p>\n

Today, we need an \u201call hands-on deck\u201d approach as the urgent issues of climate change, racial and social injustice, and inequality reach their tipping points. We also need leadership through varied approaches to solve these crises. Allocating substantial capital to promising solutions is one of the most effective way to address these concerns. Impact investing<\/strong><\/a> \u2013 that is, investing with the intention to generate positive, measurable social and environmental impact alongside a financial return \u2013 offers precisely such an approach.<\/p>\n

As the global champion of impact investing, the Global Impact Investing Network (GIIN)<\/strong><\/a> has long recognized the important role of faith-based investors and, in 2019, began a project to deepen our engagement with this community. We sought to understand what might prevent faith-based investors from allocating capital to impact investment and to identify ways that more faith-based assets could be invested in alignment with their missions.<\/p>\n

Although the field of faith-consistent investing is wonderfully diverse, three key themes emerged from our research<\/strong><\/a> as strategies for faith-based investors to more effectively generate the positive change they seek: realize the opportunity, articulate your impact goals, and work in community.<\/p>\n

Realize the opportunity: <\/strong>Impact investing is a natural extension<\/strong><\/a> of the values of faith-based investors. However, not all have realized this alignment and, thus, may be missing an important opportunity. \u00a0Many faith-based investors told us that they and their financial consultants may have limited knowledge or experience of impact investments. Without that understanding, these investors may overlook the powerful ways that impact investments can align with both the mission and financial goals of their organization. So, broader awareness of the opportunity presented by impact investing is critical.<\/p>\n

Key decision-makers must also recognize that impact investments exist across asset classes and across the risk-return spectrum. This means that there is likely an investment product for any faith-based investor appetite. Even for investors who will consider only low-risk and market rate returns for their investment portfolio, there are still opportunities to find impact products that meet asset owners financial and moral goals.<\/p>\n