Vatican Bank Partners with Morningstar for Catholic-Aligned Equity Indexes

The Vatican bank has teamed up with Morningstar to introduce two equity indexes tailored to align with Catholic values, as announced on Tuesday. This marks a rare collaboration between the Vatican and the financial sector.

Known as the Institute for the Works of Religion (IOR), the Vatican bank revealed that the indexes comprise 50 medium- and large-cap companies adhering to Catholic teachings on life, social responsibility, and environmental safeguarding. Named Morningstar IOR US Catholic Principles and Morningstar IOR Eurozone Catholic Principles, these equities aim to promote socially responsible investment aligned with Christian values.

The collaboration highlights a notable shift towards ethical investing amid past challenges faced by the Vatican bank, including allegations of corruption and financial misconduct. Ongoing reforms, initiated by the late Pope Francis, sought to rectify these issues, and this joint venture represents a step forward for the institution.