Financial stakeholders are more than banks and pension funds. Religious concerns may also drive investment practices. Guidelines offered by many religious institutions are usually not mandatory, but rather a way for those who choose to put their faith to action. 

Investment guidelines coming out of Baptist, Catholic, Islamic, Methodist and Church of England leadership all recommend avoiding the nuclear weapon industry. 

US Conference on Catholic Bishops

In November 2021, the U.S. Conference of Catholic Bishops’ (USCCB) approved new “Socially Responsible Investment Guidelines”. The guidelines, for the first time, incorporate specific environmental, social and governance principles to “invest in those corporations and institutions that promote human dignity and enhance the common good.” Therefore, the guidelines recommend not to generate revenue if it “comes at the expense of human life, reduces the human dignity of others, or leads to the destruction of our common home.”  The guidelines call for avoidance of certain industries, including the defence sector, as well as active divestment. In quoting Pope Francis in the Fratelli Tutti as the justification, the guidelines indicate that the “USCCB will not invest in firms that derive any revenue from the production of weapons inconsistent with Catholic teaching on war (e.g., biological and chemical weapons, landmines, nuclear weapons, weapons of mass destruction, etc.).” 

United Methodist Church

The United Methodist Church has a similar set of guidelines in place, in which it states, “institutions shall endeavour to avoid investments in companies engaged in core business activities that are not aligned with the Social Principles through their direct or indirect involvement with the production of anti-personnel weapons and armaments (both nuclear and conventional weapons)”.

American Baptist Home Mission Society

The American Baptist Home Mission Society also has socially responsible investment guidelines, which avoid investments in companies that derive 10% or more from the production of nuclear, chemical, biological or other weapons systems or firearms. The Society, however, also has a very clear provision for those that will engage a company through shareholder action to try and modify its behaviour, especially those who cause harm in communities.

Church of England

With more than £3 billion invested, the Church of England’s responsible approach means excluding any company connected to the production or supply of nuclear weapons, fissile materials, or strategic parts or services for these. In the UK, there is a national prohibition on investments in cluster munitions which pushed many investors to adopt policies avoiding those companies. However, the Church of England “took the view that the common factor was the capacity of all these weapons for indiscriminate destruction of human life. For this reason, it concluded that it is inappropriate ethically for the Church’s national investing bodies to devote their capital to, and derive profit from, their manufacture.”

Halal Investing

Halal investment principles are designed to comply with Islamic law. Generally Halal portfolios avoid investments in companies that profit from gambling, weapons, tobacco, alcohol and other industries. Financial institutions following Halal principles will often have investments screened by Shariah scholars to ensure the portfolios avoid these areas. There are many Halal investors, including financial institutions like Crescent Wealth and Azzad Asset Management, who take a strict zero tolerance approach to the companies involved in the nuclear weapon industry.

There are many drivers and factors to consider in shaping any portfolio, taking religious concerns into the financial world is one way some investors decided to put faith into action.