Building the Catholic Investing Roadmap 

Values-aligned investing has deep roots in the Anglo-American tradition, but Catholic values investing has evolved rapidly in recent years. Catholic institutions are increasingly engaging Catholic Social Teaching (CST) alongside modern capital markets, guided by frameworks such as the U.S. Conference of Catholic Bishops’ Socially Responsible Investment Guidelines (USCCB SRIG) and, more recently, the Vatican’s Mensuram Bonam, which offers global direction for values-aligned investing.

Catholic-affiliated organizations face a shared challenge, balancing foundational values with investment outcomes. There is no single solution. In our work, we emphasize the importance of tailored frameworks that translate Catholic values into investment philosophies aligned with each organization’s mission, while still supporting long-term financial goals. So how are these frameworks built, and how can Catholic investors balance mission with financial success?

At the core of Catholic values-aligned investing are the five categories outlined in the SRIG: protecting human life, promoting human dignity, enhancing the common good, pursuing economic justice, and saving the global common home. Together, these principles reflect the moral priorities of Catholic Social Teaching and provide a consistent lens for evaluating investment decisions and building a values-aligned investment framework.

The guidelines do not prescribe a single investment tactic but instead outline three complementary approaches that can be applied across asset classes. Investors may avoid harm through exclusions or divestment, work for change through active ownership and engagement, and promote the common good by allocating capital to investments with positive social or environmental outcomes. Partnering with the right advisor helps ensure these approaches are integrated into a coherent, disciplined portfolio strategy that remains aligned with both mission and financial objectives.

Implementing these frameworks calls for strong governance. Organizations must build consensus among boards, investment committees, and senior leadership around a shared vision for portfolio alignment. In some cases, this may also include engagement with staff, volunteers, or broader community stakeholders.

Once alignment is achieved, the approach should be clearly documented in the investment policy statement (IPS). The IPS should explicitly reflect the organization’s Catholic identity and describe how values will be applied in portfolio construction and oversight. It should also clarify which asset classes fall under Catholic guidelines, an especially important consideration when alternatives are involved, given their complexity and longer investment horizons. In our work, we partner with clients closely to cut through the complexity and ensure that clients' IPS provide clear direction, while remaining practical and investable.

Once intent is clearly defined, organizations must determine how far and how fast they wish to progress. Leadership should agree on a target level of alignment and establish a realistic timeline for achieving it. For portfolios with significant exposure to illiquid assets, this transition may occur over several years.

Equally important is establishing clear thresholds and guardrails. These decisions often involve nuance, such as determining acceptable levels of exposure to certain industries or activities. Many organizations use external indices to help create consistent, defensible standards. Mercer helps clients assess these tools and tailor thresholds that align with both values and portfolio objectives.

Finally, the success of Catholic values-aligned investing depends on clearly defining what “success” means for the organization. This definition will vary across institutions, reflecting their distinct missions and priorities. It is therefore essential that organizations work closely with their advisors at the outset of a values-aligned investing program to establish clear, measurable indicators of success. These benchmarks may draw on frameworks such as CST and the USCCB SRIG, or the principles outlined in Mensuram Bonam. Establishing this framework early helps to ensure that all stakeholders are aligned, working toward a common purpose with a shared and cohesive vision.

Both the U.S. bishops’ guidelines and Mensuram Bonam highlight shareholder engagement as an important expression of Catholic stewardship. Engagement can take many forms, including proxy voting, dialogue with company management, and filing shareholder resolutions. However, effective engagement requires time, expertise, and coordination.

In our experience, institutions achieve the greatest impact by focusing on a small number of priority issues. We work with clients to identify where engagement efforts are most likely to be effective and how they can be integrated into broader portfolio strategies, balancing values, investment outcomes, and stakeholder expectations.

There is no single model for Catholic values-aligned investing. A college or hospital may prioritize return objectives within defined exclusions, while a diocesan fund or Catholic charity may pursue a more active stewardship approach in service of its mission. At the same time, there is growing momentum toward greater alignment across Catholic institutions around shared priorities.

Whatever path an organization chooses, building a Catholic investment roadmap requires thoughtful design and experienced advice. Mercer works with Catholic investors to develop values-aligned investment frameworks that support both mission and long-term financial objectives.