The IOR adheres to Basel III. No investments contrary to the Social Doctrine, in arms and drugs for abortion

The Institute for Works of Religion (IOR) publishes its first Sustainability Report and adheres to the Basel III rules for financial transparency. This is - it is announced - a non-obligatory step, through which the Vatican's fields of investment are also clarified, in line with church doctrine: no weapons, no projects related to abortion practices and contraceptive products. And 'limited' investments in nuclear energy, but also in alcohol, tobacco and porn. "We want to provide a transparent and comprehensive overview of the measures we are taking to meet the sustainability standards identified, in particular to ensure that our investment practices are fully in line with the principles laid down by the Catholic faith," comments Jean-Baptiste Douville de Franssu, chairman of the Ior's Board of Superintendence. ensure that our investment practices are fully in line with the principles laid down by the Catholic faith.

"We must exclude from our investments that which does not fall within the principles of doctrine and at the same time be good investors: we have always done so, now we communicate this and are increasingly transparent. There is a strong focus on not investing in activities that violate the cardinal principles of the Church, with a focus on the protection of human life," Aurelio Amaduzzi, head of the Risk management function at the Ior, explained to Ansa. In parallel with the Sustainability Report, the Ior also published the first disclosure equivalent to the third pillar of the Basel regulations (Pillar III) on capital adequacy and risk management system. In 2024, with a profit of 31 million, the Institute generated a total economic value of 50 million, which was distributed among the Holy Father (27%), employees (30%) and suppliers (18%), with the remainder retained to ensure long-term sustainability. And, through the management of its clients' assets, it also 'created value' of 157 million. With clear specifications for prohibited investments.

The Institute - writes a note - in fact avoids targeting 'companies that directly or indirectly through subsidiaries own and/or manage hospitals and specialised centres that provide abortion services; produce contraceptive products; are involved in the use of embryonic stem cells or tissues derived from human embryos or foetuses'. No also to companies that directly or indirectly 'produce controversial military weapons (anti-personnel mines, chemical weapons, nuclear weapons, cluster bombs); are involved in the production and distribution of small arms; directly produce weapons or provide supporting products and services, specifically intended for military or non-military industry, used for lethal and offensive purposes'. The Institute also restricts investment 'in coal for power generation, nuclear energy, pesticides, special furs and skins, and palm oil'. It also 'closely monitors companies that conduct tests on animals, verifying compliance with current regulations and the presence of appropriate company policies'. Against addiction it restricts (in the sense that it prohibits) investment 'in companies directly or indirectly involved in gambling, adult entertainment, lending at usurious rates, the production and sale of tobacco, the production and sale of alcohol'. Finally, it avoids investment in companies that seriously violate the 10 principles of the UN Global Compact, i.e. violation of human rights, workers' rights and business ethics.