Investing According to Catholic Social Teaching, Four Years After the Publication of *Mensuram Bonam*.

Those in leadership roles within Catholic institutions—priests, bishops, treasurers, and committed laypeople—bear an important responsibility: to manage the financial resources entrusted to them in a way that safeguards the Church’s mission, reflects Catholic social teaching, and ensures the long-term vitality of the Church’s ministries.

For many, however, this responsibility is accompanied by a recurring question: Is it possible to invest in a way that is consistent with the Catholic faith without sacrificing financial returns?

For years, this issue has been a source of uncertainty and doubt. It was often assumed that a portfolio built on ethical and religious principles would inevitably yield lower returns than conventional investments. However, practical experience shows us that the reality is different.

An analysis of the experience accumulated by certain organizations that have specialized for decades in faith-based investing shows that adherence to the principles of the Church’s Social Doctrine has not, historically, resulted in lower long-term returns. On the contrary, financial management based on Catholic values can go hand in hand with strong financial performance.

In other words, good stewardship and faithfulness to the Gospel are not mutually exclusive; they are part of the same mission.

Why It Is Important for the Church

Financial decisions are a concrete form of witness. When the investments of a diocese, a religious congregation, or a Catholic institution do not align with the teachings of the Church, an important opportunity to lead by example is lost.

Conversely, when Church leaders understand how faith-based investing works, their ability to explain and promote these options within their communities increases. This creates a virtuous cycle: understanding builds trust, and trust fosters generosity and participation.

Recognizing that short-term performance differences do not necessarily compromise long-term competitiveness also allows financial management to be viewed as a genuine form of pastoral leadership. This awareness gives leaders the confidence they need to act with conviction.

Mensuram Bonam: A Call for Consistency

In 2022, the Pontifical Academy of Social Sciences published *Mensuram Bonam*, in which it called on the Church and all the faithful to align their investment decisions with the principles of the Catholic faith.

The document reminds us that the Church’s mission does not end at the doors of our churches. On the contrary, it permeates every aspect of Christian life, including the way we manage the financial resources entrusted to us.

Investing, therefore, is neither a neutral nor a purely technical activity. It is an integral part of following Christ. Through our financial decisions, we can bear witness to the Gospel, defend human dignity, and promote the common good.

The guidelines provided in *Mensuram Bonam* also generally align with those developed by various national Episcopal Conferences—including those of the United States, Germany, Italy, and Austria—since all of them draw from the same sources: the Gospel, the social doctrine of the Church, and Catholic tradition.

The Three Pillars of Faith-Based Investing

Mensuram Bonam identifies three fundamental dimensions of Catholic investment: commitment, improvement, and exclusions.

Commitment: Promoting the Common Good Through Dialogue

The commitment involves using our position as an investor to promote more responsible corporate behavior.

This is achieved through direct dialogue with companies and the exercise of shareholders’ voting rights. In this way, Catholic investors can help steer corporate policies toward greater respect for human dignity, responsible stewardship of the environment, and the common good.

Improvement: Prioritize best corporate practices

The improvement involves giving priority, all other things being equal, to companies that demonstrate stronger social, environmental, and governance practices.

The goal is not to sacrifice returns, but to seek out investment opportunities that combine financial quality with ethical responsibility.

Exclusions: Avoid involvement in activities that are incompatible with the faith

The third pillar—exclusions—is perhaps the best known and, at the same time, the one that raises the most concern.

It involves avoiding investments in companies involved in activities incompatible with human dignity and Church teaching, such as those related to abortion or the production of weapons of mass destruction.

This is where the most common question arises: What is the financial cost of excluding certain companies from the investment universe?

The Myth of Lower Returns

For many years, this question was difficult to answer.

Traditional comparisons were based on broad market indices that included all publicly traded companies, including those whose activities conflicted with Catholic values. To a large extent, there were no adequate tools available to measure the actual impact of exclusions on returns.

In the absence of clear data, many concluded that restricting the investment universe would necessarily lead to lower returns.

Another challenge reinforced this perception. Identifying companies that violate the fundamental principles of Catholic doctrine requires specialized knowledge, constant research, and ongoing ethical discernment—skills that are rarely part of the standard training for priests and Church administrators.

Therefore, it is not surprising that concerns about performance continued to be one of the main obstacles to faith-based investing.

A reassuring conclusion

Practical experience and data analyzed by specialized professionals point to an encouraging conclusion: it is possible to invest in a manner consistent with the Catholic faith while still achieving returns comparable to those of the broader market.

Comparative analyses of Catholic indices and conventional market indices indicate that, historically, the exclusion of companies that are incompatible with the Church’s principles has not prevented investors from achieving competitive long-term returns.

The experience of real portfolios managed according to Catholic principles also confirms that strong financial performance can coexist with strict adherence to the Church’s social teaching.

For Church leaders, this means looking to the future with confidence. Faithfulness to the Gospel does not require abandoning the sound stewardship of resources. On the contrary, financial management consistent with the faith can become a tangible expression of Christian witness, capable of sustaining the Church’s mission today and for generations to come.