Investing & Catholic Social Teaching
Are the Institutional Shareholder Services’ (ISS) Catholic-Faith Based Proxy Voting Guidelines in line with the USCCB Socially Responsible Investment Guidelines?
Investing with Catholic Social Teaching principles in mind has come to the forefront of dioceses, Catholic organizations, and individual investors. Institutional Shareholder Services (ISS) is heavily relied upon for its Catholic principles-based guidance on investment selection and proxy voting. In November 2021, the United States Conference of Catholic Bishops (USCCB) released an updated version of its Socially Responsible Investment Guidelines. ISS’ Catholic Faith-Based Proxy Voting guidelines (Feb 2023) state that its recommendations are in line with the updated USCCB guidelines. In this whitepaper, Dr. Irene Kim and Dr. Daniel Svogun of the Busch School of Business, examine the extent to which the ISS Catholic-Faith Based Proxy Voting Guidelines are in line with the USCCB Socially Responsible Investment Guidelines.
Photo: Forlenza Finance Lab, Busch School of Business
They start with a short description of how the USCCB developed the most recent guidelines. Next, they emphasize ISS's vital role in interpreting these guidelines as a leading proxy voting service in the world. Finally, in line-by-line detail, they recommend areas of improvement for the ISS guidelines, such as expanding and highlighting right to life issues and ensuring that ESG goals align with Catholic Social Teaching. Specific applications include eliminating language inconsistent with the Catholic position on sex and adding precise violations of the right to life (such as euthanasia and assisted suicide). Because of the heavy reliance on ISS recommendations, this whitepaper has implications for how dioceses and other Catholic institutions use ISS guidance.
Read the whitepaper here.