Faith-based investing has become an increasingly important topic in today’s financial world, especially as ESG criteria dominate the conversation around ethical and sustainable investments. More and more Catholic investors—individuals, families, dioceses, religious orders, foundations, and Catholic institutions—are asking a fundamental question:
Is investing according to ESG criteria enough to ensure coherence with my faith and Catholic values?
The rise of ethical investing and socially responsible investing has undoubtedly represented a step forward compared to purely profit-driven financial models. However, for Catholic investors, ESG often raises serious concerns regarding moral consistency, long-term stability, and alignment with the Social Doctrine of the Church.
This is where Catholic investing and faith-based investing offer a deeper and more coherent alternative.
What is ESG investing and why has it become so influential?
ESG investing evaluates companies based on three main criteria: Environmental, Social, and Governance factors. These indicators aim to measure how companies manage environmental risks, treat employees and communities, and structure corporate governance.
As a result, ESG has become the backbone of modern socially responsible investing, influencing asset managers, pension funds, and institutional investors worldwide. Many see ESG as a practical way to integrate ethics into finance.
However, while ESG may encourage certain positive behaviors, it does not provide a complete moral framework—especially for those seeking Catholic values in investing.
The structural limitations of ESG for Catholic investors
One of the main weaknesses of ESG investing lies in its subjectivity. ESG scores vary widely depending on the rating agency, methodology, and cultural context. What is considered “socially responsible” today may change tomorrow.
For Catholic investors, these contradictions make ESG insufficient as a tool for Catholic responsible investing. ESG does not distinguish between negotiable and non-negotiable moral issues, nor does it rely on objective, permanent ethical principles.
Catholic investing: beyond ethical labels
Catholic investing is not simply another version of ethical investing. It is rooted in a moral vision that places the human person at the center of economic life.
Grounded in the Social Doctrine of the Church, Catholic investing evaluates economic activity through principles that are stable, universal, and not subject to ideological trends. These include:
- Respect for human life from conception to natural death
- Human dignity
- The protection of the family
- The care of creation
- The pursuit of the common good
This framework allows Catholic investors to practice purposeful investing with clarity and coherence.
This distinction is essential. ESG may be a starting point for some investors, but for Catholics, it cannot replace a framework grounded in objective moral teaching.
A common misconception is that Catholic or Christian investing requires sacrificing returns. In reality, applying clear ethical criteria often strengthens risk management and long-term performance.
By avoiding companies exposed to legal, reputational, and regulatory risks, Catholic responsible investing contributes to sustainable value creation. Integrity and profitability are not opposites—they reinforce each other.
Faith-based Investing: Investing with purpose in a changing world
In the ESG era, Catholic investors are called to go further than labels and marketing claims. True faith-based investing requires discernment, formation, and the right tools.
Investing coherently becomes a form of testimony—a way of living faith consistently, even in financial decisions.
One of the main challenges Catholic investors have faced historically is access to reliable, structured, and transparent information. How can one know whether a company truly aligns with Catholic moral principles? How can a portfolio be constructed with rigor, without sacrificing professional financial analysis?
The answer lies in professional investing tools specifically designed for faith-based investing.
Altum Explorer is a professional stock screening tool developed to serve Catholic investors seeking coherence and excellence.
Unlike generic ESG tools, Altum Explorer:
- Applies filters based on the Social Doctrine of the Church
- Analyzes companies’ real economic activities, not just public policies
- Identifies hidden ethical risks
- Suggests compliant alternatives
It functions as a Catholic investing tool for asset managers, advisors, and institutions committed to building truly faith-aligned portfolios.
Faith-based investing offers a solid response to the limitations of ESG. Through Catholic investing, investors can align their capital with their deepest convictions without compromising professional standards.
At Altum, we believe coherence is not optional. It is a call to live faith fully—also in finance—by placing the human person, truth, and the common good at the center of every investment decision.
For more Faithful Investing, click here.
