The impact investing industry is increasing in sophistication, as more investors enter the fold and seek to create positive social and environmental impact alongside financial returns. For generations, one such group of investors, faith-based investors – from individuals to religious institutions – have engaged with values-based investing, through negative screening, divestment, and shareholder advocacy, among other investment strategies. As impact investing continues to evolve, more faith-based investors are seeking to act on their faith through impact investing.
In order to allocate more capital to impact investments, faith-based investors indicate that more research and data on performance is needed. As such, the GIIN has produced this issue brief to provide access to practical information about impact investing. Drawing on responses to the GIIN’s 2020 Annual Impact Investor Survey, as well as data, insights, and findings from the Impact Investing Decision-Making: Insights on Financial Performance, this brief: Pursuing Faith-Based Impact Investing: Insights on Financial Performance, provides an introduction to impact investing, a dynamic decision-making approach to informing impact investment strategies, an overview of the financial performance of impact investments, and a spotlight on a faith-based impact investor: Trinity Wall Street.
The brief demonstrates that through the consideration of six key facets—financial return objectives, impact objectives, financial risk tolerance, impact risk tolerance, resource capacity, and liquidity constraints – impact investors seeking risk-adjusted market rate returns can achieve them. As such, impact investing presents an opportunity for faith-based investors to deepen their commitment to the very values that underpin their faith in all their activities, including investment.
This report was produced with the support of Porticus.