Summary
Faith-based investing firms help Christian investors align their investment portfolios with biblical values through shareholder engagement, corporate governance advocacy, and biblically responsible investing strategies. Rather than simply screening investments, these firms communicate with companies through shareholder engagement, encouraging greater transparency about corporate policies so investors can make informed decisions consistent with their moral convictions.
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A recently published Washington Times article described Inspire Investing's engagement with American Express shareholders regarding the company's apparent health plan coverage of gender-transition interventions for minors. Through a shareholder proposal presented at the company's annual meeting, Inspire asked the company to provide shareholders with greater transparency by evaluating and disclosing legal, regulatory, reputational, and fiduciary risks associated with providing such benefits.
Of Interest to Christian Shareholders
To help shareholders appreciate why the issue matters, Inspire arranged for de-transitioner Soren Aldaco to address shareholders via a recorded message during the meeting. Aldaco shared her experience of receiving cross-sex hormones as a teenager and later undergoing a double mastectomy, procedures she said were covered through her mother's employer-sponsored health insurance. She urged shareholders to support greater corporate disclosure, arguing that companies offering these benefits play a role in decisions with lifelong consequences for minors and that investors deserve to understand the human risks associated with such policies.
Considering Financial and Moral Implications of Corporate Governance Decisions
Inspire Investing emphasized that faith-based investing is not simply about screening companies, but also about representing Christian investors through constructive shareholder engagement. . The firm believes companies create stronger long-term shareholder value when they remain focused on their core business while carefully considering legal, ethical, reputational, and financial risks associated with controversial social issues. By asking companies to disclose how they evaluate these risks, faith-based investors can better determine whether corporate practices align with their biblical worldview and investment objectives.
American Express recommended shareholders vote against the proposal, stating that its existing benefits review process already considers relevant risks and that producing an additional report would impose unnecessary costs while potentially creating concerns related to sensitive employee health information. The company also stated that it no longer participates in the Human Rights Campaign (a LGBTQIA group) Corporate Equality Index, referenced in the shareholder proposal as evidence regarding its reported benefits policies.
At the annual meeting, shareholders ultimately voted against the proposal, leaving the company's existing governance and employee benefits policies unchanged.
Oversight & Engagement on Behalf of Christian Investors
For those seeking faith-based investing opportunities, shareholder engagement is an important part of Christian investing. Faith-based investment firms communicate with company leadership, file shareholder proposals, and advocate for greater corporate transparency so Christian investors can pursue portfolios that align with their biblical values while pursuing their long-term financial goals. The proposal reflects a broader trend among faith-based investment firms and Christian investing organizations using shareholder rights to engage corporate boards on issues they believe affect long-term shareholder value as well as ethical stewardship. Supportive organizations point to changing state laws, evolving medical standards, and increased legal scrutiny surrounding gender-transition treatments for minors as reasons companies should regularly reassess their policies and communicate their evaluations to Christian investors. It is an opportunity to practice faithful stewardship by encouraging transparency, accountability, and responsible corporate governance.
Christian investment firms communicate with company leadership, file shareholder proposals, and participate in annual meetings to encourage greater disclosure and responsible decision-making. These efforts help investors evaluate whether the companies they own are consistent with their biblical values while also considering potential long-term business risks. Through this approach, faith-based investing seeks to combine financial performance with Christian stewardship, giving investors confidence that their portfolios reflect both their financial goals and their faith.
To learn more about faith-based investing or speak with a Christian financial advisor about aligning your portfolio with your biblical values, contact a Strategic Stewardship advisor today.
The returns on a portfolio consisting primarily of Faith Based investments may differ from a portfolio that is more diversified or where decisions are based solely on investment considerations.