Summary
On February 8, the Vatican bank, known as the Institute for Works of Religion (IOR), launched two ethical investment indices to serve as benchmarks for Catholic investments worldwide. Developed with Morningstar, an American financial service provider, these equity benchmarks are designed to adhere to Catholic ethical standards and market best practices. The IOR, commonly referred to as the Vatican bank, has been undergoing significant reforms under Pope Francis aimed at ensuring transparency and ethics in investment processes. This initiative follows earlier scandals involving unethical investments by the Holy See and internal reports highlighting poor risk management and investment policies within its financial institutions. In 2021, Libero Milone, former auditor general of the Vatican, revealed that the Holy See had invested in a pharmaceutical company producing an emergency contraceptive, which was later reported to senior Church officials. Following this revelation, Pope Francis established the Committee for Investments in 2022. The IOR, now managing all curial investments under its administration, is focused on aligning investment processes with Catholic ethical principles and profitability, as per a papal constitution. The recent launch of these indices marks a significant step towards ensuring alignment between reference parameters used by the IOR and its Investment Policy, developed in accordance with the Social Doctrine of the Church. The Committee for Investments has also been a source of internal tensions within the Vatican’s financial institutions. This latest development underscores the Holy See’s commitment to ethical investment practices under Pope Francis’ leadership.
Key Topics
Vatican Bank, Morningstar, Catholic Ethics
