Faith Traditions and the Future of Impact Investing Christianity: From Stewardship to Shareholder Activism

In a packed auditorium in Colorado, Christian leaders convene to discuss a radical idea, wealth as a tool for virtue. At the 2025 Christian Institutional Investors conference, delegates hear a college president describe investing as working “in God’s vineyard,” using God-given talents to “bear fruit for his kingdom”.

Christianity’s relationship with money has always been a delicate balance between earthly riches and heavenly ideals.

For centuries, churches and monasteries were patrons of charity, feeding the hungry, building hospitals, and stewarding lands. Yet the Bible also warned that love of money can corrupt; Jesus’ maxim about a camel passing through the eye of a needle captured the anxiety about the perils of wealth. The Protestant Reformation, not a little frustrated with the aristocratic levels of extravagance demonstrated by the Catholic church of the time, brought new thinking, hard work and thrift were virtues, but extravagance and injustice were sins. John Wesley, the 18th-century Methodist, observed that as riches increase, so can “pride” and “love of the world,” urging Christians to “gain all you can, save all you can, give all you can”. Such teachings laid groundwork for socially attuned investing. By the 19th century, devout abolitionists were boycotting slave-made sugar, an early example of aligning money with faith values.

‘As riches increase, so can “love of the world”’

The modern era of faith-driven investing took off amid the social upheavals of the 1970s. In 1971 two Methodist ministers launched the Pax World Fund so that their church’s money would not support the Vietnam War. Catholic nuns formed the Interfaith Center on Corporate Responsibility, buying shares in companies to press for change on apartheid and environmental harm. These religious activists proved that shareholder activism could be a form of ministry. They filed resolutions, asking “What would Jesus do?” in boardrooms of polluters and arms makers. Many Christian institutions also began applying negative screens to avoid industries at such as weapons, pornography and abortion services. By the 2000s, this had become commonplace with those such as the U.S. Catholic bishops conference, publishing detailed guidelines on ethical investing. A whole niche industry of faith-based investment advisors arose to help churches live up to their values in finance.

Still, a new generation of Christian investors is going further. Where earlier strategies often stopped at “thou shalt not…”, today’s faith aligned investors seek positive impact. Inspired by Catholic Social Teaching and the gospel call to serve the least of these, they ask how their portfolios can proactively advance the common good.

In 2022 the Vatican issued “Mensuram Bonam”, guidelines urging Catholic organizations to engage more actively as “faith-consistent” investors. Rather than only screening out bad actors, the document calls for “a proactive stance” to find investments that “contribute…to environmental, social, [and] human goods”. Whilst papal directives can appear spiritual overreach to some, this approach bears fruit on the ground and undoubtedly cascades throughout circa 1.4 billion Catholics. The Missionary Sisters of the Sacred Heart have aligned about 90% of their portfolio with their mission, channelling capital into microfinance, renewable energy, and affordable housing across the developing world. However, the Church of England demonstrate mission aligned investing too, the historic endowment (some £10.4 billion) is now a laboratory for impact investing, having implemented comprehensive ethical guidelines across all asset classes and earmarked funds for direct impact ventures since 2016. These large institutions lend credibility and momentum to the notion of “capital as a means of love of neighbour.”

Christian organizations collectively control vast assets, pension funds, university endowments, charitable foundations that, if invested with purpose, can drive social change. Their moral commitments can make them the very patient capital needed to fund affordable housing or climate solutions that pure profit-driven investors might shun. Church investors have also been leaders in collaborative efforts, for instance, ecumenical coalitions are pressing Big Tech on data ethics and energy giants on carbon emissions, leveraging the moral authority of faith. As one participant at the Colorado conference noted, Christians take a long-term view “because our Father has had a long-term perspective towards you”.

Unlike short-term markets, faith-aligned investors can think in generations. Generational fiduciary duty creates a principally different set of guiding principles than what might be commonly accepted. Time mitigates risk and allows space for lasting ‘kingdom building’ impact to be achieved.

Yet tensions persist. Even within Christianity, definitions of “ethical” investment vary. One board might shun fossil fuel companies to care for Creation, while another fears divestment could hurt workers. Different denominations emphasize different issues meaning that every investing board has different standards. There is also the perennial challenge of financial performance. Some worry (rightly or not) that restricting investments for ethics could sacrifice returns needed to fund church ministries. Others counter with gospel logic saying what’s the point of profit if it undermines one’s mission? This debate pushes Christian investors to innovate, seeking investments that yield solid returns and tangible mission impact. Increasingly, they are finding that companies with sustainable, fair practices make good long-term partners, squaring fiduciary duty with faith.

From the Catholic nun in New York painstakingly screening a portfolio, to the Baptist church in Bradford starting a community development loan fund, Christians are weaving a new narrative of finance. It is one in which ancient values of stewardship, justice, and love guide modern spreadsheets. As one Catholic leader put it, “mission-based investing is a fundamental starting point for any Catholic on the planet”. The ultimate promise and challenge is to ensure that “where your treasure is, there your heart will be also” aligning pounds with the divine imperative to care for one’s neighbour and the earth. The Christian journey from almsgiving to impact investing is still unfolding, a testament to a faith that strives to practice what it preaches in the marketplace.