Faith in Action · Stewardship Guide
Episcopalian Faith-Aligned Investing
1
The Core Frameworks
SRI
Socially Responsible Investing
The umbrella term
Any investment strategy that seeks both financial return and social or moral good.
ESG
Environmental, Social, Governance
A risk management tool
E — Carbon footprint, waste management, climate risk.
S — Labor standards, human rights, diversity, data privacy.
G — Board transparency, executive pay, anti-corruption.
S — Labor standards, human rights, diversity, data privacy.
G — Board transparency, executive pay, anti-corruption.
Faith-Aligned
Faith-Aligned Investing
Trinity of Stewardship
A manifestation of our Witness, expressed through three practices:
Avoidance · Advocacy · Affirmative Action
Avoidance · Advocacy · Affirmative Action
2
The Methods of “Witness”
Avoidance
Negative Screening
The practice of saying no
Excluding specific industries that conflict with the Baptismal Covenant — e.g., weapons, private prisons, or fossil fuels.
Affirmative Investing
Positive Screening
The practice of saying yes
Actively seeking out companies that are leaders in human dignity and creation care.
Shareholder Engagement
Advocacy
Using our voice as owners
Proxy Voting (voting on corporate policies) and Dialogue — writing letters and attending meetings to improve corporate behavior.
Mission-Mirroring
Impact Investing
Measurable social return
Investments made with the primary intention of generating measurable social or environmental impact alongside a financial return — mirroring the parish’s unique mission.
3
The Fiduciary Conversation
The Baptismal Covenant from the Book of Common Prayer is an affirmation tying ourselves to God. It involves viewing financial assets as tools for ministry and stewardship, rather than merely tools for generating wealth. This framework for living out our faith can be translated into investment strategies that emphasize justice, peace, and environmental care.
Fiduciary Duty
The legal obligation to act in the best interest of the church’s finances.
Modern SRI argues that ignoring ESG risks is actually a failure of fiduciary duty.
The “Trade-off” Myth
The outdated belief that you must accept lower returns to be ethical. Many SRI funds perform at or above market benchmarks by avoiding “risky” unethical companies.
Investment Policy Statement
The written document that tells your advisor exactly which values they are required to follow.
Transparency
The “Know what you own” principle. Moving away from opaque funds where the underlying companies are a mystery.
Baptismal Covenant: Witness Questions for Your Advisor
Translating faith into the language of investment stewardship.
| Baptismal Promise | The “Witness” Question for Your Advisor |
|---|---|
| “Will you continue in the apostles’ teaching and fellowship... and in the prayers?” | “How often are we reviewing our holdings through the lens of our faith? Can we schedule a ‘values audit’ alongside our performance reviews?” |
| “Will you persevere in resisting evil, and, whenever you fall into sin, repent and return to the Lord?” | “Are we currently invested in companies that contradict our mission? What is our ‘repentance’ strategy — how do we divest or engage when a company’s actions cross our ethical lines?” |
| “Will you proclaim by word and example the Good News of God in Christ?” | “How are our proxy votes being cast? Are we using our ‘voice’ as shareholders to support corporate transparency, or are we silent partners in practices we wouldn’t preach from the pulpit?” |
| “Will you seek and serve Christ in all persons, loving your neighbor as yourself?” | “Are we invested in companies that prioritize fair wages, worker safety, and community health? Does our portfolio love our neighbor, or does it profit from their exploitation?” |
| “Will you strive for justice and peace among all people, and respect the dignity of every human being?” | “Does our manager specifically screen for human rights abuses, modern slavery, and systemic inequality? How is our capital building a more just world?” |
I will, with God’s help.
3 Tips for the “Uncomfortable” Conversation
01
Understand the Inertia
Recognize that your advisor might be trained to focus only on the math. You aren’t being “difficult” by asking these questions — you are being a steward.
02
Know What You Own
Ask for the “Top 20 Holdings” list. It’s hard to have a theological conversation about abstract numbers; it’s easier when you see the actual names of the companies you are supporting.
03
Perfect is the Enemy of Good
No portfolio is 100% “pure.” The goal is orientation — turning the ship toward the values of the Kingdom of God, one meeting at a time.
This guide is intended for educational and pastoral purposes only. It does not constitute financial, legal, or investment advice. Consult a qualified financial advisor for guidance specific to your parish’s circumstances.