Two indexes with 50 companies each that adhere to Catholic social teachings were announced by the Vatican Bank in order to promote ethical Catholic investing.
The Institute for the Works of Religion (IOR), commonly known as the Vatican Bank, announced the launch of two new equity benchmarks developed in partnership with Morningstar Indexes.
The two indexes, the Morningstar IOR Eurozone Catholic Principles and the Morningstar IOR US Catholic Principles, are designed to serve as global reference points for investments that adhere to Catholic teaching, according to a Feb. 10 IOR press release.
Each index includes 50 medium- and large-cap companies selected in accordance with the IOR’s Investment Policy, which is guided by the social doctrine of the Catholic Church, according to the press release.
The indexes exclude companies involved in activities inconsistent with Catholic teachings, the IOR said.
According to the press release, the initiative will strengthen the IOR’s commitment to responsible and ethical finance, allowing Catholic institutions, dioceses, religious orders, and other faith-aligned investors worldwide to benchmark and evaluate performance in a manner consistent with Catholic teaching, particularly on issues related to life, social responsibility, and environmental protection.
Robert Edwards, managing director for EMEA at Morningstar Indexes, stated: “Investors increasingly seek benchmarks that reflect specific values-based or policy-driven criteria. Morningstar’s transparent, rules-based approach ensures client-defined standards are applied consistently and objectively.”
Giovanni Boscia, deputy director general, CFO, and head of asset management at the IOR, added: “With the launch of these two new equity indexes, the IOR takes a further step forward in the process that has seen it adopt international best financial practices for years, in strict compliance with the principles of the social doctrine of the Church.”
“Having benchmarks built in accordance with recognized Catholic ethical criteria allows us to make our performance assessment and reporting processes even more rigorous and transparent,” Boscia continued. “This initiative reaffirms our commitment as a financial institution serving the Church, further strengthening the role of the IOR as a reference point for the Catholic world.”
In 2022, the Vatican issued Mensuram Bonam, which means “a good measure.” It is a document intended to guide Catholics to think and act according to the teachings of the Church in their investment decisions, including considering how their economic actions affect the poor.
Last year, in its annual report, the IOR showed a net profit of 32.8 million euros in 2024, representing a 7% increase compared with 2023, attributing its positive financial performance with “numerous improvements” made, including adding specialized personnel and making strategic investments in digital and technological infrastructure.
This article was originally published by EWTN News English.
