In today’s uncertain world, many Christians are re-evaluating what it means to be good stewards—not just in how we give or spend, but in how we invest. Values-based investing invites us to align our financial decisions with what matters most: our faith, our values, and our calling.
What Is Values-Based Investing?
Values-Based Investing (VBI) is an investment approach that considers both financial performance and personal convictions. It asks:
“Does this investment align with my beliefs and honor my stewardship responsibilities as a Christian?”
Unlike traditional investing, which often focuses solely on returns, VBI filters investments through a values lens—supporting companies that reflect integrity, stewardship, and compassion, while avoiding those that profit from practices contrary to biblical teachings.
A Biblical Perspective on Stewardship
Scripture reminds us that everything we have belongs to God:
“The earth is the Lord’s, and everything in it.” – Psalm 24:1
As stewards, we are entrusted to manage His resources wisely. Values-based investing extends that stewardship into the realm of our portfolios—allowing us to invest in ways that reflect:
– Justice (Micah 6:8)
– Honesty (Proverbs 11:1)
– Generosity (2 Corinthians 9:6–8)
– Integrity (Proverbs 10:9)
How Does It Work?
Values-based investing uses “screens” to guide investment decisions. These screens may:
Exclude Companies Involved In:
– Abortion services
– Pornography
– Tobacco, alcohol, or gambling
– Human rights abuses or exploitative labor
Include Companies That:
– Practice environmental and social responsibility
– Support family and faith-friendly values
– Operate with ethical governance and transparency
Is It the Same as ESG?
No. While ESG (Environmental, Social, and Governance) investing also promotes responsible business practices, values-based investing is grounded in faith. It asks:
“Does this investment align with my Christian beliefs?” Not just, “Is this good for society?”
Does Values-Based Investing Sacrifice Performance?
A common concern is whether aligning investments with values means giving up performance. While no investment strategy can guarantee returns, some studies such as those from Harvard Business School and Morgan Stanley suggest that portfolios with screens for sustainability have performed similarly to traditional portfolios over certain time periods. You can read more about these studies here:
https://www.morganstanley.com/ideas/sustainable-funds-performance-first-half-2024
https://www.hks.harvard.edu/centers/mrcbg/programs/growthpolicy/does-sustainable-investing-lead-lower-returns
Note: These studies vary in scope, methodology, and screening basis. They do not explicitly reflect values-based investing, and instead focus more broadly on sustainability. Past performance does not guarantee future results. Incorporating non-financial objectives may impact overall returns and performance, and may result in recommendations that do not prioritize financial return. All investing involves risk, including the potential for loss.
Why It Matters Now
Many companies today support or fund activities that Christians may not agree with—often without our knowledge. Values-based investing empowers you to be intentional and informed about where your money goes.
It’s not just about avoiding harm—it’s about using your portfolio to promote the values you believe in.
Is It the Same as ESG?
No. While ESG (Environmental, Social, and Governance) investing also promotes responsible business practices, values-based investing is grounded in faith. It asks:
“Does this investment align with my Christian beliefs?” Not just, “Is this good for society?”
Does Values-Based Investing Sacrifice Performance?
A common concern is whether aligning investments with values means giving up performance. While no investment strategy can guarantee returns, some studies such as those from Harvard Business School and Morgan Stanley suggest that portfolios with screens for sustainability have performed similarly to traditional portfolios over certain time periods. You can read more about these studies here:
https://www.morganstanley.com/ideas/sustainable-funds-performance-first-half-2024
https://www.hks.harvard.edu/centers/mrcbg/programs/growthpolicy/does-sustainable-investing-lead-lower-returns
Note: These studies vary in scope, methodology, and screening basis. They do not explicitly reflect values-based investing, and instead focus more broadly on sustainability. Past performance does not guarantee future results. Incorporating non-financial objectives may impact overall returns and performance, and may result in recommendations that do not prioritize financial return. All investing involves risk, including the potential for loss.
Why It Matters Now
Many companies today support or fund activities that Christians may not agree with—often without our knowledge. Values-based investing empowers you to be intentional and informed about where your money goes.
It’s not just about avoiding harm—it’s about using your portfolio to promote the values you believe in.
Final Thoughts: Investing with Purpose
As Christians, we are called to live—and invest—with intention.
When we align our finances with our faith, we believe investing with intention provides for a greater purpose.
Ready to align your investments with your values?
Schedule your Discovery Call