SRI

Socially Responsible Investing

The "umbrella" term for any investment strategy that seeks both financial return and social/moral good.

ESG

Environmental, Social, Governance

A risk management tool for investors to better understand how a company operates.

Faith-Aligned Investing

'Trinity of Stewardship'

Faith Aligned Investing is a manifestation of our Witness.

Negative Screening

Avoidance

The practice of "saying no." Excluding specific industries that conflict with the Baptismal Covenant (e.g., weapons, private prisons, or fossil fuels).

Positive Screening

Affirmative Investing

The practice of "saying yes." Actively seeking out companies that are leaders in human dignity and creation care.

Advocacy

Shareholder Engagement

Using our status as "owners" to influence a company. This includes Proxy Voting (voting on corporate policies) and Dialogue (writing letters, attending meetings to improve corporate behavior).

Impact Investing

Mission-Mirroring

Investments made with the primary intention of generating a measurable social or environmental impact alongside a financial return. E.g. Specifically choosing investments that "mirror" the parish's unique mission (e.g., if your parish focuses on housing the homeless, your investments might support affordable housing bonds).

Fiduciary Duty

The legal obligation to act in the best interest of the church's finances.

Note: Modern SRI argues that ignoring ESG risks (like climate change or lawsuits) 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The outdated belief that you must accept lower returns to be ethical.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 (IPS)

This is 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 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—meaning, 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?"

1

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.

2

Know/Own What You Own

Ask for the "Top 20 Holdings" list. It's hard to have a theological conversation about abstract numbers; it's much easier when you see the actual names of the companies you are supporting.

3

Perfect is the Enemy of the 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.