ThispaperwascommissionedbyUNDPandtheOrganisationforEconomicCooperationandDevelopment(OECD).ItwaswrittenbytheAllianceofReligionsandConservation(ARC)inconsultationwithawiderangeofsecularandreligious

groups(seeAcknowledgements).

Publishedin2016bytheAllianceofReligionsandConservation

SupportedbyTripleBottomLineGroup(TBLI)andThePilkingtonAnglo-JapaneseCulturalFoundation

Designandproduction:RanchorPrime

ARC,6GayStreet,Bath,BA12PH,UK.www.arcworld.org

PrintedintheUnitedKingdomonForestryStewardshipCouncilFSC-certifiedpaperfromsustainablymanagedforests

FirstpublishedSeptember2016.ReprintedDecember2016.

3

EXECUTIVESUMMARY 5

CHAPTERONE:INTRODUCTION 8

1.1 ADIFFERENTPERSPECTIVE 91.2CURRENTINVESTMENTSTRATEGIES 111.3FUNDINGSUSTAINABLEDEVELOPMENT 131.4APRESUMPTIVEECONOMICMODELBEHINDTHESDGS:FAITHCONCERNS 141.5PINNINGDOWNTHENUMBERS 141.6ACAUTION 161.7“YOUMUSTNOTWORRY…” 17

CHAPTERTWO:FAITHS,FINANCEANDVALUES 19

2.1AVAILABLERESEARCHONFAITH-CONSISTENTINVESTING 192.2THERISEOFFAITH-CONSISTENTINVESTING(FCI) 222.3EXAMPLESOFFAITHINVESTMENTGROUPS 23

CHAPTERTHREE:THECONTEXTOFTHESDGS 29

3.1FROMTHEMDGSTOTHESDGS 293.2FINANCINGANDDRIVINGFORWARDTHESDGS 34

CHAPTERFOUR:FAITHSASKEYPARTNERS 37

4.1THEFAITHSANDTHEMDGS 404.2THEFAITHSANDTHESDGS 444.3VOICESFROMRELIGIONSONSUSTAINABLEDEVELOPMENT 48CHAPTERFIVE:FAITH-CONSISTENTINVESTING,THESDGS

ANDTHECOREFAITHTEACHINGS 51

5.1THEBAHA’ISTATEMENTOFCOREVALUESINRELATIONTOECONOMICS 545.2THEBUDDHISTSTATEMENTOFCOREVALUESINRELATIONTOECONOMICS 555.3THECHRISTIANSTATEMENTOFCOREVALUESINRELATIONTOECONOMICS 565.4THEDAOISTSTATEMENTOFCOREVALUESINRELATIONTOECONOMICS 585.5THEHINDUSTATEMENTOFCOREVALUESINRELATIONTOECONOMICS 595.6THEISLAMICSTATEMENTOFCOREVALUESINRELATIONTOECONOMICS 615.7THEJEWISHSTATEMENTOFCOREVALUESINRELATIONTOECONOMICS 62

CHAPTERSIXOUTLINEPROPOSALFORTHEMEETINGIN2017 64

6.1INVITETHERIGHTPEOPLE 646.2FIVEPOINTSFORACTIONINTHEFUTURE 656.3OUTCOMESTOPLANFOR 67

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7.0ACKNOWLEDGEMENTS 69

APPENDIX1.SOMEEXAMPLESOFFAITHGROUPSASINVESTORS 70

APPENDIX2.ISLAMICDEVELOPMENTBANK(IDB) 73

APPENDIX3.OECDINVESTMENTPROFILE 75

APPENDIX4.BRISTOLCOMMITMENTSANDVOICES 77

APPENDIX5.FURTHERNOTESONZAKAT 83

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ExecutivesummaryThemajorinstitutionalfaiths1areamongstthelargestinvestorsintheworld.In recent years this investing power has been used in a number of ways,includingdisinvestment,pro-activeethicalinvestmentandimpactinvesting.This quest for a clear coordination between faith beliefs and values andinvestmentpolicyisincreasinglyknownasFaith-ConsistentInvesting(FCI).In2015theUNlaunchedtheSustainableDevelopmentGoals(SDGs).WhiletheMillenniumDevelopmentGoals(MDGs)–launchedin2000for15years– focused on developing countries, the SDGs are a vision of sustainabledevelopmentforthewholeworld.Assuchtheyenvisageamassiveinputoffinancegoingbeyondthenormalaidchannelsandfunds.Hencetheinterestin investments as amotor for change. In this context the potential of thefaithsissignificant–thereasonforthispaper.Financeisonlyapartofthecontributionfaithsarealreadymakingbasedontheirbeliefsandvalues.Thereasonthatfaithcanbesopowerful–forgoodand sometimes for bad – is its personal and community transformativepower–whichmoneycansometimes,butnotalways,assist.Tounderstandthis,weexplorecorebeliefsandvalues.A common mistake made by those with little experience of the sheerdiversityoffaithsistoassumethatinsomerathervaguewaytheyarereallyallthesame,andthattheybelieveinthesamethings.Thisisnotsoandnoprogrammeofworkingwiththefaithswillworkunlesstheparticularitiesofeach tradition – not just each faith but each traditionwithin the faith – isunderstood. Forexample,withinChristianity thereare traditionswhich forspecific religious reasons do not invest in alcohol, gambling, tobacco orarmaments.OtherChristiantraditionshavenoparticularproblemwithsomeofthese.

1Inthispaper‘thefaiths’isshorthandforthedozens,orsometimeshundredsoftraditionswithinmajor

classificationssuchasChristianity,Hinduismetc.Thesetraditionscandifferwidelyfromeachotherandthepaperexploreshowthesedifferences–aswellascommonareasofinterestandconcernsuchaseducation–shapethewaythefaithtraditionsrespondtocontemporaryinvestmentandsustainabledevelopmentissues.

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The SDGs can benefit from faith involvement. The goals will never be theactualunderlyingreasonwhythefaithsengagewith issuessuchasgender,primary education, health, welfare, climate change etc. Those reasons liewithintheteachings,beliefs,valuesandtraditionsofthefaiths,astheyhavedone formany generations. However, the SDGs are a reminder ofwhat isimportant in this world today for this generation, and by providing astructure and a frame, they will in some cases cause faiths to thinkdifferently and invest in differentways. The reason theywill do sowill bebased on a mixture of reasons that might be practical and spiritual,economicandcompassionate,systemicandinsomecasesexperimental.Theaimofthispaperistostimulate,encourageandsupportdiscussionanddebateabout faithconsistent investingand itspotential roleaspartof theinvestmentquest to support sustainabledevelopment. It ishoped that thepaperwillenablefaithgroupsaswellasseculargroupstoexplorepotentialpartnerships.Tofurtherthisitisproposedthatthroughaninitialmeetingaprogrammeofpartnershipbetweensecularandfaithgroupscould:• Throughthispapercreateawarenessamongstthefaithsoftheserious

potentialofFCIinhelpingsustainabledevelopment;• Choosethreeareasoffocusforpreliminaryinvesting;• Explorethedevelopmentofastructure/approachtoinvestinginthese

priorities–suchasfaithscreatinginvestmentprotocols;• Indicate the ways in which the official development bodies can

assist/advisesuchinvestment;• Discuss how to leverage the ‘committed groups’ into expanding the

faithconsistentinvestingcommunity• Outlinenextstepsandagreedinitialtargets;• Encourageasharingofbestpracticewithotherasyetunengagedfaith

investmentsgroups.

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SectionOutlineIn the following sections are examples of how and why faiths haveresponded both to the wider ethical investment through FCI and to thespecificpossibilitiesandchallengesoftheSDGs.• Section1introducesthereasonforthispaperanditscontext.• Section2 looksat anumberofexamplesof faith-consistent investing

includingthecriteriatheyuse.• Section3reviewsthecontextforsuchinvestmentintermsofthenew

challengestheSDGsposetothesustainabledevelopmentworld.• Section4exploresthenatureofthepartnershipsthatfaithshaveand

havehadwithinternationalinitiativessuchastheMDGsandtheSDGs.• Section 5 provides the core beliefs and values which inspire and

therefore drive faith decisions including increasingly faith financedecisions.

• Section 6 outlines a possible next step in exploring how the faithsmightbepartnerswiththeSDGprocessandbeyond.

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CHAPTERONE:Introduction

“Iwant to live inaworldwherepovertyand inequalitydoesn't exist inany form, for anybody, anywhere. I want to live in a world that issustainable and has plenty of resources for generations to come… So,when I am older and I look at the world, I don't want to see childrenwashing up dead on the beach. I don't want to see people taking life-threatening journeys to flee their countries because of the conflictshappeningthere.Iwanttolookattheworldandseepeopleofferinghelpto those in need,withoutwanting something in returnbutmost of all Iwant to see a world where people strive to help one another, for theirgood,thegoodoftheplanetandthegoodofallthegenerationstocome.”Bristolteenager,BrandonKirwan,speakingattheopeningofFaithintheFuture,Bristol,September2015

‘Withoutavision,thepeopleperish’Proverbs29:18

In early September 2015 the United Nations (UN) partnered with theAlliance of Religions and Conservation (ARC) and religious leaders andinfluencerstohostameetinginBristol,UK,titledFaithintheFuture.TheaimwastoexploreissuesaroundfaithsandtheSDGs.Thereflectionabovewaswritten for, and read during, the opening of this meeting by 15-year-oldBrandon Kirwan, a pupil at a Catholic school in Bristol. It reflects Catholicvaluesbutisalsoayoungperson’ssenseofbeingpartofawidermovementofcompassion,concernandaction.ItsummarisesthepassionsandstrengthsthatfaithpartnerscanbringtogoalssuchastheSDGsbutisalsoareminderthatthefaithswouldbedoingmuchofthiseveniftherewerenosuchgoals.The SDGs can benefit from faith involvement. The goals will never be theactualunderlyingreasonwhythefaithsengagewith issuessuchasgender,primary education, health, welfare, climate change etc. Those reasons liewithintheteachings,beliefs,valuesandtraditionsofthefaiths,astheyhavedone formany generations. However, the SDGs are a reminder ofwhat is

9

important in this world today for this generation, and by providing astructure and a frame, they will in some cases cause faiths to thinkdifferently and invest in differentways. The reason theywill do sowill bebased on a mixture of reasons that might be practical and spiritual,economicandcompassionate,systemicandinsomecasesexperimental.

LETMYCOUNTRYAWAKEWherethemindiswithoutfearandtheheadisheldhigh;

Whereknowledgeisfree;Wheretheworldhasnotbeenbrokenupintofragments

bynarrowdomesticwalls;Wherewordscomeoutofthedepthoftruth;

Wheretirelessstrivingstretchesitsarmstowardsperfection;Wheretheclearstreamofreasonhasnotlostitsway

intothedrearydesertsandofdeadhabit;Wherethemindisledforwardbythreeintoever-widening

thoughtandaction;Intothatheavenoffreedom,myFather,letmycountryawake.

—RabindranathTagore(1930’s)1.1 AdifferentperspectiveTo respond to the scale of issues there needs to be a different sort ofcommitment – and not just a financial one. This need for a differentperspective inspired President François Hollande of France towrite to themajor government leaders attending the Paris Conference of the Parties(COP)inDecember2015withapowerfulletter,askingthemforjustsuchanewapproach:

“By their nature, COPs offer an opportunity to meet and talk at thehighest level.Theyalsoofferanopportunitytoundertakedecisivestepstotackleclimatechange;butasweallknowthatopportunityisbesetbychallenges.2015isadramaticyearformakingkeychoicesforHumanity:weneedtoreinventhowwetacklethemajorchallengesthatfaceusandourplanet.Thiscallsfornewwaysoflivingandacting.

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Suchacall comes fromthedeepbelief that to reallymakeadifferenceeach of us needs to approach these complex challenges from our ownindividualpersonalconsciences.Thiscallsforrealhonestyateverylevel,anditisvitalthatitstartshere,amongthosedeeplyinvolvedatthelevelof leadersofnationaldelegations,NGOs, the scientific community, civilsociety…So as you prepare to come to Paris wewould like to ask you to thinkaboutyourpersonal role,andanswerasimple,butprofound,question:WhydoIcare?Yourresponsemightbeverypersonal–theinfluenceofaparent,childorgrandparent;theinfluenceofcultureorpersonalbeliefs;theinfluenceofatransformativeexperienceofthewonderandbeautyofnature;acrisisinyourlifewhichbroughtyoubacktocorevalues.Inourcontemporaryworlditisveryrarethatweareaskedtotalkaboutwhat lies at theheart of our actions. Insteadwehidebehind statistics,data, policy statements etc, fewofwhich actually touchother people’sheartsandminds.”2

It is thiswiderpicture, thisgreaterstoryofwhywedothingsnot justhowwe do them, that brings the role of the faiths in sustainable developmentandininvestmentintoprofile.IfitisnotjustaquestionofhowtofundSDG-related development but why, then the faiths offer a level of partnershipalmost unique in the financial world because they are able to be held toaccounton thebasisof core teachingsandvalues. Thishas ledmany faithinvestmentgroupstobegintoprioritisesomeorallofthefollowingareasforinvestment,followingmanyoftheprinciplesofthewiderethicalinvestmentmovementbecausetheyalsoreflectclearfaith-basedpriorities.

• Alternativeenergy• Communitydevelopment• Affordableandsustainablehousing• Sustainableforestry(FSCinparticular)• Sustainableagriculture

2 http://www.arcworld.org/news.asp?pageID=798

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• Eco-friendlynewtechnologies• Micro-finance• Education• Entrepreneurtraining• Eco-friendlyfoodanddrink• Fairtrade• Watersupplies(somefeelthisshouldbefree.notforprivateincome)• Genderanddiversity• Electricvehicles• Publictransportnetworks• ‘People’sbanks’• Socialmedia• Conversion of former polluting industries andmilitary production, to

sustainablealternatives

Itisalsothecasethatfaithsliketoinvestin“projectsorcompaniesthatdogoodratherthanadopting‘bestinclass’approaches3.”1.2CurrentinvestmentstrategiesThemajor faiths have long had a tradition of what theywill not invest inbased upon core values. For example, Islam and Daoism traditionally banusury;theQuakerswillnotsupportanythingtodowithwarfare;Jainismhasa strict principle of ahimsa or non-violence in everything its followers areengagedin.Positivescreeningasastrategytoinvestincompaniesthatshowevidenceofcorporate social responsibility is also a tool usedby the faiths. Investmentdecisionsbasedon theenvironmentoremployeewelfareand rightspolicyprogrammes of companies, for example, are used by various Christianinvestors.4Faiths have also been powerful exercisers of shareholder resolutions onethicalandmoral issues.Examples includetheanti-apartheidmovement in

33iGreportFromStewardshiptoPower:ReligiousOrganisationsandtheirinvestmentpotentials(May2014)43iG.FromFaithtoFaith-ConsistentInvesting.Religiousinstitutionsandtheirinvestmentpractices(2010)

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the 1970s and 1980s where investors including (and often led by) faithbodies publicly removed their investment from banks such as Barclays,which had invested in pro apartheid companies. More recently there hasbeen a Divest Reinvest movement strongly promoted by the faiths,promulgating divesting from companies profiting from carbon fuels andreinvestinginsustainablealternatives.In 2001 the environmental movement posed the challenging question tofaith investmentmanagers: “Weknowwhatyouareagainst:whatareyoufor?”This led toamovementaimedatproactive investingwithsomefaithinvestmentsbeingmovedforexampleintosustainableforestry inSouthernAfrica; sustainable, organic Traditional Chinese Medicine in China; micro-finance in India; supporting alternative energy use and investing inalternativeenergythroughthechurchesintheUSA.What is known within the faith communities as faith-consistent investing(FCI), (which is the term used in this paper) is also known elsewhere asimpactinvesting,environmental,socialandgovernance(ESG)integration,orsociallyresponsibleinvesting(SRI).In brief, faith investment strategies which aim for a financial return oninvestment alongside high positive social return can nowadays be dividedintofourareas:• negativescreening;• positivescreening;• impactinvesting(FCI);• shareholderengagement;

As institutions the faiths are of course composed not just of the formaldoctrinalauthoritiessuchastheVatican,theSanghainBuddhismorShari’aLaw Courts in Islam. Their creativity lies in countless movements, youthorganisations,voluntarybodies,educationprojectsandso forth.The faithshave lastedthis longbecausetheyactuallyarecapablethroughtheirsheerdiversity of institutions, organisations and fellowships to continuously

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reinvent themselves. Focusing only on legal bodies on doctrine will meanmissingwheretheenergyanddrivewithinafaithreallyresides.1.3FundingSustainableDevelopmentThroughout thedevelopment and launchof the SDGs, theUNhaspointedout that taking them seriously will require a radical rethinking of howsustainable development worldwide can be funded. Aid alone will not besufficient.Newmodelsof financingdevelopmenthave tobeexplored,andoldmodelsoffinancingdevelopmenthavetoberevitalised.For example, the major early development of the earliest industrializedcountries(includingtheUK,USA,GermanyandJapan)wasusuallyfinancedby private or corporate investors (for example in many countries therailways were private initiatives) rather than through government aid orinternationalaidagencies.TheUNConferenceonTradeandDevelopmentsaystheSDGsfaceanannualfunding gapof about $2.5 trillion5. In July 2015delegates frommore than100 countries convened in Addis Ababa, Ethiopia, to agree on a financingframework for the SDGs that emphasised international tax reform andprivateinvestment.

Asoneofthelargestsectorsoftheinvestmentworld,thefaithsareanaturalpotential sourceof such investment.Theyhavebeen leftoutofmost suchdiscussionsuntilnow.Forexampletheywerenotinvited,asasector,totheAddismeeting.

Give just measure and weight, and do not withhold frompeoplethatwhich is theirdue;anddonotcreatemischiefontheearthafter ithasbeenset inorder–thatwillbebest foryouifyouhavefaith.Surah7verse85oftheQur’an

5 http://unctad.org/en/PublicationsLibrary/wir2014_en.pdf

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1.4ApresumptiveeconomicmodelbehindtheSDGs:faithconcernsWhile the faiths are proud of their historic as well as contemporarycontribution tohumanwellbeing andprotectionof theplanet for someofthe faiths there is concern about a perceived priority to economicswithinmuch of contemporary thought about effective models for sustainabledevelopment. This issue is perhaps best expressed as concern thateconomicswill always be the priority consideration and that themodel ofeconomicsisessentiallyaconsumeristcapitalistone.Theperceptionthatsuchmodelsassumeonlyacapitalistapproachwillworkraises issuesof thevaluesandmoralpurposeof financewhichsomefaithswould question. For example, many faiths see economics as a tool, not ascience.Thismeanstheycanask,justifiably,whatthattoolistobeusedfor.Inotherwords,whatisthegreaterpurposeoftheuseofeconomicmodelswithinamoralandspiritualunderstandingofhumanmotivationandofourplace and role within what some call Nature, others Creation, and othersEvolution. (Whilethesetermsarenotequivalent,theyrepresent importantdifferent value perspectives upon the origin, meaning and purpose of theecology of the planet). Economics also ignores voluntary work, in-kindsupport and other elements of what many faiths would see as service,compassionorlove.1.5PinningdownthenumbersDetails of the financial aspects of the SDGs come from our UN andOECDcolleagues. Figures quoted vary considerably as do expectations of thembeingfulfilled.Forexampleherearesomeverydifferentassessments from2014:

The traditional foundation of ODA, estimated at $135 billion a year,provides a fundamental source of financing, especially in the poorestandmost fragile countries. But more is needed. Investment needs ininfrastructurealonecould reachup to$1.5 trillionayear inemergingand developing countries.6 … Flows for development includephilanthropy, remittances, South-South flows and other official

6http://blogs.worldbank.org/voices/node/3346

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assistance, and foreign direct investment – together these sourcesamount to nearly US $1 trillion that needs to be used just aseffectively.7TheSDGsareambitious,andsubstantialadditionalfundingwill be needed to achieve them. The SDGs are inter-related, notindependent.Theycannotbefundedasindividualgoals.8

With respect to social needs, estimates as to the annual cost oferadicating extreme poverty in all countries (measured as increasingtheincomesofallpeopletoatleastUS$1.90perday)areaboutUS$66billion annually. Estimates of annual investment requirements ininfrastructure in all countries – in water, agriculture,telecommunications, energy, transport, buildings, industrial andforestry sectors–amount tobetweenUS$5and7 trillion. Theunmetneedforcredit forsmallandmediumsizedenterprises inallcountrieshasbeenestimatedatUS$3.5trillionannually(ofwhichUS2.5trillioncorresponds to the developing world). Global Public Goods (GPGs)provision is estimated at several trillion more per year (UN FinanceCommittee).9“Whileestimatesvary,analystssayitcouldcostasmuchas$4.5trillionper year in state spending, investment, and aid to meet the SDGs.However, a 2014UN report estimates that infrastructure investmentsnecessary to create jobs and sustain growth alone could reach $7trillionannually.”(CouncilonForeignRelations).10“The SDGs are unfeasibly expensive. Meeting them would cost $2trillion-3trillionayearofpublicandprivatemoneyover15years.Thatis roughly 15 percent of annual global savings, or 4 percent ofworldGDP. At the moment, Western governments promise to provide 0.7

7http://siteresources.worldbank.org/DEVCOMMINT/Documentation/23659446/DC2015-

0002(E)FinancingforDevelopment.pdf8http://siteresources.worldbank.org/DEVCOMMINT/Documentation/23659446/DC2015-

0002(E)FinancingforDevelopment.pdf9https://sustainabledevelopment.un.org/intergovernmental/financecommittee10http://www.cfr.org/global-governance/sustainable-development-goals/p37051

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percentofGDPinaid,andinfactstumpuponlyaboutathirdofthat.”(TheEconomist)11“TomeettheUN’sSustainableDevelopmentGoalsforendingextremeglobal poverty by 2030, it is estimated that governments, businesses,andinvestorsneedtokickin$172.5trilliontobuildout infrastructure,combat infectious diseases, and stop endemic hunger. And yet totalphilanthropy and government-assistance remittances flowing fromdeveloped to developing countries was $365 billion annually, by theUN’slastcount.”(Barron’s)12

It ishopedthatpriortoanymeetingwithfaith investors,agreatersense–andcosting–ofthefundingneedsofeachSDGwillbeavailablefromtheUNandother relatedbodieswhichwillenableduediligence tobeundertakenbyanyinterestedfaithinvestor.Itisrecognizedthatthisisadifficulttaskbutsome greater sense of the scale of the funding for the SDGs will beimportant.And it will be important to have the best available data on current faith-based financing for the SDGS, including both Faith Based Organisations(FBOs) and religiousbodies at international, national and local levelwherepossible. This will not be easy and the limitations on access to suchinformationfrommanyfaithcommunitieshastobeacknowledged.It is also hoped that there will be details of secular investors who havealready identifiedways inwhich theirportfolioscanassist thegoals.ThesecanthenactasguidesforanypotentialfaithconsistentinvestinginsupportoftheSDGs.1.6AcautionRecent discussions and papers from the secular side about such anengagementwithFCIhasraisedconcerns.The“discovery”oftheeconomiccapacities of the major faiths, both in philanthropy and in traditional11http://www.economist.com/news/leaders/21647286-proposed-sustainable-development-goals-would-be-worse-useless-169-commandments12http://www.barrons.com/articles/impact-investing-done-right-1448684226?tesla=y

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investment, has led in somequarters of the secularworld to considerableexcitement. What has sometimes come across to the faiths is a ratherpatronising attitude that the secular world might know better than thereligiouscommunitieshowtheyshouldutilisetheirfundsforthebettermentof humanity and the planet. Sometimes it almost sounds as though someseculargroupsthinkthefaithsshouldhandoverorpooltheirmoneytobeadministeredbyothergroups.ThisisnevergoingtohappenandtalkofsuchanideawillalienatevirtuallyeveryFCIgroup.For example in its March 2015 report An Act of Faith: HumanitarianFinancingandZakat13,GlobalHumanitarianAssistancesuggests “anumberofpossiblebarriersthatwillneedtobeovercomeifZakat istofullyrealiseits humanitarian potential… [including] streamlining and formalising howZakat is collected,bywhom,andhow it is channelled to thehumanitarianresponsecommunity.”Zakatisareligiousdutyandisessentiallylocalwithitsemphasisondealingwithproblemsandpotentialinthelocalarea.Itisguidedbylongestablishedtraditionsofhowit isadministeredwhichreflectthedeepculturalrootsofIslam.Thereforesuchtalkascitedabovewilldonothingtofurtherasenseofpotentialpartnerships.Notleastbecauseitishighlylikelythatthefaiths’asinvestorswillbearoundlongaftermanyofthe internationalagencieshavebecomefootnotesinhistory.1.7“Youmustnotworry…”

Letnotyourheartbetroubledorafraid—GospelofJohn,NewTestament

Thefaiths,attheirbest,haveanaturalinclinationtoworktomaketheworldabetterplace.Whilefinanceisobviouslypartofthis,increasinglythefaithsare exploring what their use of finances says about their own goals. Theprimary reason faithswill invest in sustainable development is because ofwhattheybelieve.Whatishelpfuliswheninternationaldocumentssuchas

13http://www.globalhumanitarianassistance.org/report/humanitarian-financing-and-zakat

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those from theUN andWorld Bank echo/enhance these concerns so thatthefaithscanfeelpartofit.Tworeasonsfaithcanbesopowerful–forgoodandsometimesforbad–areitsimpactatthepersonalaswellasitsabilitytotransform communities. For both ofwhichmoney can sometimes, but notalways,assist.And sometimes, followers of faiths believe, that while they have tomakechoicesand takeaction, the result is in thehandsof someotherauthorityaltogether. As Mahatma Gandhi said, speaking from a Vedic14 (Hindu)perspective:

“…You must not worry about whether the desired resultfollowsfromyouractionornot,solongasyourmotiveispure,your means correct. Really, it means that things will comerightintheendifyoutakecareofmeansandleavetheresttoHim.”

14Meaning‘belongingtotheVeda’,avastbodyofAncientIndiantextsconcernedwith‘Knowledge’that

transcendstheordinaryhumanexperience.

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CHAPTERTWO:Faiths,FinanceandValuesHowdothefaithsmanagetheirinvestments?Aretheyreallydifferentfromother secular or even perhaps philanthropic investment boards? Howsignificant are they in the overall capitalmarket andwhat successes havethere been in encouraging the development of a more pro-active ‘faith-consistentinvesting’programmeforthemajorfaithinvestmentgroups?Theemergenceofinterestintheroleofcivilsocietyandinparticularofthefaithsinrecentyearshasledtointerestintheirfinances.Thisisstillanareawhere information is hard to obtain except for the faith organisationsprimarily based in Europe or North Americawhere legislation hasmade itmandatory for financial details to be made public. However, ARC hasinitiated,togetherwiththefoundingmembersoftheInternationalInterfaithInvestment Group (3iG), amovement promoting faith consistent investing(FCI) and supporting faith groups with guidelines, tools and research. Thefollowing comes through our experience and that of others such as theInterfaithCenterforCorporateResponsibilityinNewYork.2.1AvailableresearchonFaith-consistentinvestingItwouldappearthatthefirstexternalsurveyofthelevelandnatureoffaithfinancesworld-widewasdonebyCitigroupinpartnershipwithARCin2002following a request in 2000 from the faiths that such a survey beundertaken. This arose from the meeting of major faiths, environmentalorganisations and the World Bank in Kathmandu, Nepal. In this survey(CITIGROUP June 19 2002, The Market Impact of “Faith-Consistent”Investing, Michael Even, Chief Finance Advisor) it was estimated thatbetween 10 and 15 percent of theUS stockmarket (between 2.5 percentand7.5percentoftheworldmarkets)wasownedbyfaiths.In 2010, a survey by 3iG was undertaken in direct response to the lowresponse rate of its first survey (796 people contacted, 24 peopleresponded). The second survey enlisted several Religious Investor Groups,and was based upon existent 3iG relations. The Religious Investor Groupsused their members and networks to spread the survey, and this second

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approachyieldeda21percentresponserate.Oftheseanoverwhelming90percentwereChristian. It is challenging todrawanycomparisonsbetweenfaith groups from these results. However, the overall message from thesecondsurveywasclear.Thesefaithgroupstrytoinvestinfinancialmarketsinwaysthatareconsistentwiththeirbeliefsandvalues.Howeverinpracticethis canbedifficult as theyareoftendependentuponadvice fromsecularfinancialinstitutions.Anotherstudyby3iGfollowedin201215wherebysevencasesofshareholderengagementbyaQuakerUKtrust(withassetsundermanagementof£150-200 million), a Catholic USA-missionary group (US$450 million) Church ofEngland (£8 billion) highlighted the potentials and challenges of engagingwith companies in order to change their behaviours. Themost recent 3iGresearch,FromStewardshiptoPower,201416,indicatesthepowerthefaithswieldand theopportunities theycan take to further theirmission throughmeansoftheirinvestments.Faith finances are usually administered by a boardwhich functionswithinthegovernancestructureof the faith. In thecaseofmostChristian, Jewishand Muslim organisations, information about their finances are publiclyavailable.However this is for themajor fundsanddoesnotalways includethe composition of the portfolio of investments. Smaller, parochial orfoundationfundsheldonbehalfofafaithmaynotbesoreadilyavailableatall. Inthecaseofmajortemples,gurdwarasandshrinesandmosques, it isveryrarethattheirfinancialdetailsarepublicallyavailable.Itisimpossibletoestimatethetotalwealthoffaithinvestments,andthefiguresquotedbytheCitigroupsurveyare“guestimates”.The faith beliefs and values context of each tradition’s priority in termsoffaithconsistentinvestingissetoutinChapterFive.Acommonmistakemadeby thosewith littleexperienceof the sheerdiversityof faiths is toassumethatinsomerathervaguewaytheyarereallyallthesameandbelieveinthesamethings.Thisisnotsoandnoprogrammeofworkingwiththefaithswill

153iG,BelieversintheBoardroom.ReligiousOrganisationsandtheirShareholderInvestmentPractices(2012).163iG,FromStewardshiptoPower.ReligiousOrganisationsandtheirInvestmentPotentials(2014).

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workunlesstheparticularitiesofeachtradition–notjusteachfaithbuteachtraditionwithin the faith – is understood. For example,within Christianitythere are traditions which for religious reasons do not invest in alcohol,gambling, tobacco or armaments. Other Christian traditions have noparticularproblemwithsomeofthese.Intheend,asfarasmostfinanceboardsofthemajorfaithsareconcerned,thefinancesaretheretoensurethecontinuityofthemissionandserviceofthefaithtradition.Anythingmorethanthatisseenasabonus.

“What is good has been explained to you. This is what TheLordasksof you:only this, toact justly, to love tenderlyandwalkhumblywithyourGod.”(TanakaBible,MicahChapter6verse8)

CASE STUDY: OIKOCREDIT International work17 An international network of religiously inspired private investors in sustainable business models around the world especially in the global south, Oikocredit focuses its bottom line on people, profit and planet. Its slogan is Investing your money for financial return and the good it can do to contribute to livelihoods of people and communities in the developing world. It provides financial and technical support to more than 800 partner organisations in over 60 countries. Its mission is to reach financially-excluded people and support them in building their own businesses, sustaining their families and communities, and helping protect the planet. Over its 40-year history Oikocredit has disbursed over €2.1 billion of development financing raised from investors. In 2014, 28 million people were reached by Oikocredit’s fair trade, social enterprise, microfinance and renewable energy partners, and it diversified into new areas of social investment such as renewable energy. It reported €907m of assets under management and its 53,000 worldwide organisational and individual investors generated a development finance portfolio worth €735m. It uses strict financial and social criteria to analyse the suitability of potential partners. It seeks to finance organisations that: create jobs and income for disadvantaged people; are co-operatives, financial institutions or small to medium enterprises; have women in management positions; are environmentally sustainable and respect animal welfare; have a suitable management structure; are (or can soon become) financially sustainable; and demonstrate a clear need for foreign investment. It has a screening programme to exclude organisations involved in child labour, arms productions, explosives etc. 17https://www.oikocredit.org.uk/?_ga=1.178922535.284991662.1457349256

22

2.2TheRiseofFaith-ConsistentInvesting(FCI)Within the financial world, the potential of the faiths has long beenunderstood by organisations such as the Interfaith Center for CorporateResponsibility (ICCR) in New York, which pioneered social shareholderengagementbythefaiths.From 2001 to 2005 many faith investment managers worked together toexplore the potential for FCI supporting sustainable development, with aparticular interest in environmental issues. The International InterfaithInvestment Group (3iG)18 was created in 2005 and continues to offerresearchandadviceandanumberof the faithorganisations involvedhavegone on to create their own ethical/FCI boards. As a result the majorinternationalCatholicweekly,TheTablet, runsa special ethical investmentsupplementonceayear.TheChurchofEnglandhas invested ina rangeofethicalventures;haswithdrawnfromanumberofcarbonfuelinvestments,has made plans to pull out altogether in the future and is setting up a“people’sbank”intheUK.Bhumi,aUK-basedHinduNGO,isstudyingHinduinvestments of the major Indian temples to help them invest faithfully.Meanwhiletheriseof Islamicbankingoffersavastarrayofpossibilitiesforfaith-consistentinvesting.Moredetailsareintheappendices.However, progress is slow and mainly concentrated in North America,AustralasiaandtheUK19. Inpartthis isduetothelackofbasic informationabout the levels and nature of faith investments. In part it is due to theconservatismof faithsand finance.And inpart there is the fact thatwhilefaithswillinvestforthelongterm,thisisalsoreflectedinthefactthattheydon’tmakesuchdecisionshastily.ItisimportanttostressthatwhileFCIcancontributetotheSDGsitwilldosonot because of the SDGs but because the values chimewith those of thefaiths. What does not help is when secular bodies view the faiths asinstrumentalinenablingaseculargroup’saims(whatcouldbedescribedas

18http://www.3ignet.org/19http://www.3ignet.org/resources/3ig_stp-practioner_report_2014.pdf

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a “missionary attitude” by secular groups). Partnership must mean equalpartnershipnot thesublimatingof religiousactivities,motivesandpurposewithinasecularagenda.InparticulartherehasbecomealmostafrenzyofinterestinIslamicbankingandespeciallyinzakat–theyearlyobligatory2.5percenttaxinIslam–oneoftheFivePillarsofIslamiclifeandobservance.Whendiscussingzakatit isimportant to note that after they achieved Independence, a number ofIslamiccountries,includingBangladesh,Indonesia,MalaysiaandPakistansetupgovernmentdepartmentstomanagezakat-givingonbehalf–initially–oftheMuslimcommunity.Howeversuchgovernment-runschemeshavebeenincreasingly seen bymanywithin Islam as simply another government taxrather than as a proper role for the Islamic Pillar of zakat. Any attemptthereforebysecularbodiestotrytomakeinternationalsuchagovernmentaladministration of zakat would be viewed with great distrust and disquiet.SeeAppendix5.2.3ExamplesofFaithInvestmentGroupsHere are some examples, in their ownwords, of faith investment groups,andtheirinvestmentcriteria.OtherexamplesareinAppendixI.

2.3.1IslamicDevelopmentBankInaccordancewithShari’aLawtheIslamicDevelopmentBank(IDB)extendsloans to promote inclusive and sustainable development of membercountries and in particular Muslim communities20. The IDB financesinfrastructural and agricultural projects including roads, canals, dams,schools,hospitals,housing, and ruraldevelopment.AtYE2014 ithad totalassetsofUS$22billion.

Shari’a means Clear Path and is the term used to describeformal law codeswithin Islam. These are perceived as God’sprescriptions forhumanityand thus Shari’a is seenasdivinenot human in origin. Shari’a refers to the outward

20http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Resources_For/In

vestor_Presentation.pdf

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manifestation of both individual and a community being in‘Islam’–thatisinobediencetotheWillofGod.

The IDB announced on 17 February 2016 that the Board of ExecutiveDirectors had approved US$734.7m for financing projects, includingUS$319.7m for contribution to upgrading a national slum in Indonesia;US$220mforcontributiontothe400megawattAshuganj(East)powerplantefficiencyimprovementprojectinBangladesh;US$103mforcontributiontotheSarneyDamandWaterSupplyproject inIran;US$45mforcontributionto the Kabala water supply project Phase II in Mali; and US$44.7m forcontribution to the grass field participatory integrated rural developmentprojectinCameroon.21Whatwasinvestedinandhowmuch?Infrastructure received 83 percent of IDB-OCR (US$4.2b), followed byagricultureat8percent,education4.5percent,health3percent,andothersectors, including finance, 1.5 percent. Within infrastructure, the energysector accounted for the largest allocation of financing at 44.9 percent,followed by transportation at 33 percent, water and sanitation at 16.1percent, industry and mining at 5 percent, and information andcommunicationat1percent.22FurtherexamplesaregiveninAppendix2.In the IDB 2014 Annual Report, President and Chairman of the Board ofExecutive Directors, Dr. AhmadMohamed Ali23said: "As 2015 is a year ofmajoreventsduringwhichtheconclusionofnewinternationalagreementsareexpectedonSDGs,climatechangedealtoreducecarbonemissions,andglobal trade, Iamconfident thatprogresswillbemadeonall these fronts.TheIDBGroupisreadytoworkwithitsdevelopmentpartnerstosupporttheeffortsofitsmembercountriestoachievetheobjectivesoftheseimportantevents.SincethepillarsoftheIDBGroup’sstrategyareconsistentwiththeSDGs, I strongly believe that Islamic finance can play an important role in

21http://www.isdb.org/irj/portal/anonymous?NavigationTarget=navurl://71cd39288bf9ac31b2b312401ca8eea722http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Publications/Ann

ual_Reports/40th/IDB_Annual_Report_1435H_English.pdf23http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Publications/Ann

ual_Reports/40th/IDB_Annual_Report_1435H_English.pdf

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financing their implementation. It is high time to explore and exploit thepotentialofIslamicfinanceforSDGsaswetransitiontoanewera."

2.3.2ChurchofEnglandAttheendof2014TheChurchofEnglandChurchCommissionershadatotalinvestment fund of £6.7 billion and the Church of England’s ethicalinvestment policy embraces stewardship, engagement and investmentexclusions. The ethical investment policies are “the basis for a distinctlyChristian approach to investment embracing negative screening, positivealignmentwiththeChurch’steachingandvalues,andactivestewardship.24”Regarding investments in public equities, property or corporate debt they“apply investment exclusions to companies involved in indiscriminateweaponry, conventional weaponry, pornography, tobacco, gambling, non-military firearms, high interest rate lending and human embryoniccloning.”25The Church Commissioners invest in their ”parish ministry and missiongrants, including support for low-income diocese.” The investing bodies oftheChurchof England ‘expect companies inwhich they invest tomanifestsustainable environmental practice, fair treatment of customers andsuppliers,responsibleemploymentpractices,conscientiousnesswithregardto human rights, sensitivity towards the companies inwhich they operateand best corporate governance practice’. One of the objectives of theChurchCommissionersis“toapplyethicalinvestmentpolicyguidelines.”26At December 31 2014, £299m of the Commissioners’ investment portfolio(approximately 4.5 percent) qualified for inclusion in the Low CarbonInvestmentRegistrymaintainedbytheGlobal InvestorCoalitiononClimateChange.ThiswasmadeupoftheCommissioners’• £253msustainablycertifiedforestryportfolio

24https://www.churchofengland.org/about-us/structure/eiag/ethical-investment-policies.aspx25AlltheinformationinthissectionisfromtheChurchCommissionersforEnglandAnnualReport2014

https://www.churchofengland.org/media/2229788/the%20church%20commissioners%20annual%20report%202014.pdf

26Ibidpage26

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• £29minvestmentintwogreenofficebuildingsinSingapore• £17mholdingintheImpaxEnvironmentalMarketsplcFund

“The new climate change policy does not allow investments in companiesthatderivemorethan10percentofrevenuefromtarsandsorthermalcoal.”

2.3.3Buddhist:SarvodayaShramadanaMovementofSriLankaThe Sarvodaya Shramadana Movement is the largest non-governmentalpeoples’ development organisation in Sri Lanka. (See Appendix 4 for itsspecific SDG commitments given at Bristol.) These are built around theirethical criteria based on Buddhist principles of sharing and compassion aswell as a holistic approach to development, recognizing the inter-connectedness and interdependence of all beings and all systems. Itsdevelopmentmodelencompassesspiritual,moral,cultural,social,economicand political dimensions. It is a people-based approach that focuses ongender equality and the use of renewable resources and is a bottom upapproachfordevelopmenttocreateaself-sufficienteconomy.TheSarvodayaShramadanaMovementdoesnot invest inorprovidecreditfor any business promoting the killing of animals (meat and leatherproduction); alcohol, tobacco or any other intoxicant; creating ethnic,religious or social disharmony; polluting, destroying or negatively affectingenvironment, eco-systems, habitats and biodiversity. It instead engages inactivitiesthatsustainsocio-culturalvaluesinsociety.Sarvodaya does not regard spiritual activities as uneconomical and itprimarily gives micro-credit for predominantly rural communities to meethousing, educational or health needs. It takes steps to remove structuralinjustices that keep the majority powerless and poor and ensure villagesavings circulate within the village. It has evolved a grassroots economicempowerment model; people’s savings are deposited in a revolving fundmanaged by the villagers’ themselves under a legally incorporated villagesociety.

27

At community level, funds are required for micro, small and mediumenterprises, and there is also requirement for “consumption loans”. Theseare credit requirements which are not necessarily intended to generateincomebuttomeethousing,educationalorhealthneeds.Initiallythevillagesociety members are encouraged and required to save for a period of 6monthsbeforethesocietycangrantanyloans.Thereafter,thevillagers’ownsavings are supplemented by external credit lines and co-funding bySarvodaya Development Finance Company (a regulated entity) andsupplemented by entrepreneurial guidance by Sarvodaya EconomicEnterpriseDevelopmentServices(SEEDS).TheSarvodayaShramadanaMovementconfirmedthat itsdepositbase is3billionSriLankaRupees(aroundUS$20million)andtheloanportfolioisalsoLKR3billion.Itdisbursesabout2,000loansamonthandtheaverageloanisaboutLKR55,000US$380).ItsassetbaseisLKR4.2billion(US$28.8million)andthecapitalisLKR1billion(US$6.8billion).27

2.3.4TheJewishJointBurialSociety,UKThe Jewish Joint Burial Societywas founded in the 19th Century to ensurethatworkersandtheirfamilieswouldhaveadecentfuneral–thereturnontheirinvestmentscoversthecostoffuneralsandtraditionallythefundsareinvestedinstandardstocksandshares.Thefundingareas,asoutlinedintheGrants Payable section of the annual report, include (in addition tobereavement), education, Jewish specific interests such as Holocausteducation, and Jewish reform movements such as the British friends ofIsrael.

27www.sarvodaya.org

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JEWISH JOINT BURIAL SOCIETY, UK INVESTMENTS “By developing a series of laws designed to improve the environmental quality of life, we are beginning to turn the negative meaning of this mitzvah: ‘you shall not destroy’, into a positive command ‘you shall maintain.28’.” In 2012, instead of the earlier 50 percent UK equities/50 percent bonds benchmark, new asset classes were added (overseas equities, property and infrastructure. The neutral bond allocation was reduced from 50 percent to 14 percent, consistent with the very long-term nature of the Society’s liabilities. In 2013 reserves of the society were £13.4m excluding any reserves in respect of the revaluation of burial land and excluding funds designated for charitable grants. The aim is to ensure that reserves will be sufficient to cover the future costs of funerals in respect of existing members, without relying on any assumptions regarding contributions from possible future members. Takes into account the ageing population of JJBS members, when the average level of the future contributions from ageing individuals will fall. In 2013 the target rate of return on assets net of investment management expenses was 1 percent p.a. in excess of the annual escalation in funeral costs (which were increasing at an estimated 5 percent per annum).

28http://www.jjbs.org.uk/the-woodland-cemetery

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CHAPTERTHREE:TheContextoftheSDGs

Work.Keepdiggingyourwell.Don’tthinkaboutgettingofffromwork.

Wateristheresomewhere.Submittoadailypractice.

Yourloyaltytothatisaringonthedoor.

—JalaluddinRumi,‘TheSunriseRuby’trans.ColemanBarks(2000)

The SDGs were created partly as ananswertothequestionthatfacespeopleliving today: “How can we fulfil ourdestinyofbeingthefirstgenerationabletoeradicateextremepovertyandthelastgeneration able to prevent catastrophicclimate change?” They succeed theMillennium Development Goals (MDGs)launchedin2000.3.1FromtheMDGstotheSDGsThe MDGs were established soon afterthe UN Millennium Declaration of 2000and included eight objectives to beaccomplished by 2015 (see illustration).At a global level, there has beensignificantprogresstowardsanumberoftheMDGs:• Between 1990 and 2010 extreme

income poverty halved. (Extremeincome poverty is defined asaverage daily consumption ofUS$1.25or less and itmeans livingontheedgeofsubsistence)

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• Overthesameperiodthe likelihoodofachilddyingbeforetheir fifthbirthdaywasnearlyhalved

• The target of halving the proportion of people without access to animproveddrinkingwatersourcewasachievedin2010.In2012,89percentof theworld’spopulationhadaccess to an improved source,upfrom76per cent in 1990.Over 2.3 billionpeople gained such accessbetween1990and2012

• On average, gender parity in primary education has been achievedaroundtheworldandmostchildrennowenrolinaprimaryschool

• There is a downward trend in maternal, tuberculosis, and globalmalariadeaths.ThetideisturningonHIV

• Bleak as the news is on environmental degradation, some of thepriority areas for action which were reinforced by MDG targets areshowing results.Forexample,mostof theozone layerwill recover totherelativelyhealthylevelsofthe1980sby2050

ThefollowingisaseriesofQ&As,basedonapaperontheSDGscreatedbyUNDPfortheFaithintheFuturemeeting,September2015Q:WhathasledtothenewagendaandthedevelopmentoftheSDGs?A:ProgressonMDGtargetshasbeenuneven.Somecountrieshaveseenverylittlepovertyreductionatall.ForexampleSub-SaharanAfrica’spovertyratedidnotfallbelowits1990leveluntilafter2002andtheregioncontinuestolagbehind.More than40per cent of thepopulation in sub-SaharanAfricastilllivesinextremepoverty29.Thetargetssetfor2000to2015didnotaimtoeradicateextremepovertyandhunger,butonlytohalvethelevels.Nowitistimetogofurther.Q:Whatkindofnewchallenges?A: The threats from environmental degradation, including of our climate,have gathered speed. Extreme weather events endanger lives, livelihoods,and whole nations. Our current patterns of consumption are generatinglevels of pollution with which our planet cannot cope. Economic growth

29http://www.un.org/millenniumgoals/2015_MDG_Report/pdf/MDGpercent202015percent20revpercent20(Julypercent201).pdfp15

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compatible with our planetary limits, and decent employment, remainelusive. Conflict and insecurity continue to prevent progress. And yet thenature of conflict has changed considerably. Armed conflicts are far morelikely to occur within states than between them, and to involve non-stateactors.Newgoalswereseenasnecessary.Q:Howwerethe17goalschosen?A:Theprocessofarrivingatthepost2015developmentagendawasledbyUN member states. More effort than before was made to engagetraditionallyexcludedcommunitiesandgroupsincludingwomen,indigenouspeople, farmers etc30.While the UN Secretariatwas ultimately responsibleforframingtheMDGstheSDGswereestablishedinadifferentway–throughaprocessofnegotiationandconsultationwithnumerousstakeholders.Thisis the first major intergovernmental policy process to be informed by acomprehensiveglobalconsultation.Q:Whowasconsulted?A: National consultations were held in almost 100 countries, with effortsmade to reach examples of some of the poorest and most marginalizedcommunities: people and groups who are not usually asked for theirperspectives on global agendas. After a year of intense work, the OpenWorkingGroupof70governments,drawingontechnicalinputsfromtheUNsystemandcivilsociety,producedaproposalwith17goalsand169targets.This agenda was launched at the Sustainable Development Summit inSeptember2015.Q:Whatinputdidreligionshave?A:Somefaithnetworkswereinvitedtocontributetonationalconsultations,andwereabletoexpressthemselves inthematicconsultations,andengagein the global MY WORLD survey rollout which enabled almost ten millionpeopletoranktheirprioritiesforthefuturetheywant.

30https://sustainabledevelopment.un.org/majorgroups

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OneWorldPeopleamongthediamondseedsofdawn.—JayRamsay,‘Summerland’(2010)

THE17SDGS1. Endpovertyinallitsformseverywhere2. Endhunger,achievefoodsecurityandimprovednutrition,andpromote

sustainableagriculture3. Ensurehealthylivesandpromotewellbeingforallatallages4. Ensureinclusiveandequitablequalityeducationandpromotelifelong

learningopportunitiesforall5. Achievegenderequalityandempowerallwomenandgirls6. Ensureavailabilityandsustainablemanagementofwaterandsanitationfor

all7. Ensureaccesstoaffordable,reliable,sustainableandmodernenergyforall8. Promotesustained,inclusiveandsustainableeconomicgrowth,fulland

productiveemployment,anddecentworkforall9. Buildresilientinfrastructure,promoteinclusiveandsustainable

industrialisation,andfosterinnovation10. Reduceinequalitywithinandamongcountries11. Makecitiesandhumansettlementsinclusive,safe,resilientand

sustainable12. Ensuresustainableconsumptionandproductionpatterns13. Takeurgentactiontocombatclimatechangeanditsimpacts(takingnote

ofagreementsmadebytheUNFCCCforum)14. Conserveandsustainablyusetheoceans,seasandmarineresourcesfor

sustainabledevelopment15. Protect,restoreandpromotesustainableuseofterrestrialecosystems,

sustainablymanageforests,combatdesertificationandhaltandreverselanddegradation,andhaltbiodiversityloss

16. Promotepeacefulandinclusivesocietiesforsustainabledevelopment,provideaccesstojusticeforallandbuildeffective,accountableandinclusiveinstitutionsatalllevels

17. Strengthenthemeansofimplementationandrevitalisetheglobalpartnershipforsustainabledevelopment

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Q:Whatmakesthisnewagendasodifferent?A: The fact that governments have agreed that the new agenda will beuniversalcouldbeitsmosttransformativecharacteristic.WhereastheMDGagenda reflected a commitment to tackle poverty backed by a promise toprovideadditionalOfficialDevelopmentAssistance, thenewSDGagenda isaboutchallengesthatarecommontoallcountries.Theseincludeinequality,increasingemployment,providingdecenthealthcare,nurturingskillstohelpallpeoplebethebesttheycanbeaswellaspresentingotherchallengesthatare shared by some countries: including financial stability, fairer trade, astableclimate.Ifitisrespected,theprincipleofuniversalitycouldchangetheway that countries relate to each other, and could increasingly make thedistinctionbetweendevelopedanddevelopingirrelevant.Q:Whatisthenewfourthdimensionofsustainabledevelopmentandwhyisitsignificantforfaithparticipation?A: The traditional three dimensions of sustainable development areeconomic,socialandenvironmental.Afourthdimensionisculture.Toquotefrom the 2030Agenda for SustainableDevelopment: ‘We pledge to fosterintercultural understanding, tolerance, mutual respect and an ethic ofglobal citizenship and shared responsibility.We acknowledge the naturaland cultural diversity of the world and recognize that all cultures andcivilizations can contribute to, and are crucial enablers of, sustainabledevelopment. 31 This new dimension is of considerable importance forpartnershipswithfaithsandfaith-basedorganisations.Q:WhataretheothernewelementsoftheSDGs?A: In recent years people have recognised the critical importance ofaddressinginequalitiesandofpromotingpeacefulandinclusivesocieties.Forthe first time, governments are incorporating a goal and targets ongovernance,buildingpeaceandeffective,openandaccountableinstitutionsforall.There isastandalonegoalongender inequality, includingendingallforms of violence, discrimination, child marriages and female genitalmutilation.

31(Page13,point36,The2030AgendaforSustainableDevelopment).

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Q:Whatismostwonderfulaboutthem?A:TheSDGshavebeendesignedtocatalyseanumberof“transformationalshifts”tofurthersustainablehumandevelopment:

• Leaveno-onebehind:ashiftfromreducingtoendingextremepoverty,including amongst the most marginalised (disabled people; ethnicminorities,womenandgirls;remotecommunities);

• Putsustainabledevelopmentatthecore: integratingeffortstotackleclimate change and environmental degradation within the goals.Environmental issues are strongly represented, demonstrating a longsoughtmarriagebetweendevelopmentandenvironment;

• Transform economies for jobs and inclusive growth: harnessinginnovation,technologyandtheprivatesector.

• A clear social dimension – the first agenda that is addressinginequalitieswithinsocietiesandnations.

Twoofthemostimportantcrosscuttingcharacteristicsofthenewagendaare that it calls for participation and partnerships. It recognises that nosingle country and no single government can achieve the agenda on itsown.3.2FinancinganddrivingforwardtheSDGsWhile the SDGs differ from the MDGs because they are applicable to allcountries not just developing countries, realism has to intrude. Manydevelopingcountriesdonothavetheinternalfinancialcapacitytofundthenecessarychangesanddevelopments.Thisisastrueofgovernmentfundsasit isofprivateinvestmentfunds.Thescaleofthechallengesisgreaterthananythingpreviouslyundertakenatthis level.TheUNhasmade itclearthatdevelopment aid can no longer be left to development aid agencies –whether thesearegovernmental, intergovernmentalor fromcivil society–and that theywill require a radical realignment of aspects of finance (andthereforealsoofvalues)towardssharedandagreedgoals.AlthoughnodefinitivefiguresareavailableastotherealcostsoftheSDGsitiscleartheywillfarexceedanythingpreviouslyattemptedorplanned,with

35

estimatesofanythingfrom$3to$10plustrillionperyear.32 Hencetherewillbe a need for external investment into many countries. The role ofinvestments from the faiths aswell as other private investment sources ispotentiallycrucial. Suchastronomical figuresand their inherent vagueness raisesquestionsofhow these goals are to be funded and why they might be funded orsupported by non-financial means and resources. The case for it and theinherentproblemswellareexpressedintheReportoftheUS-basedCouncilonForeignRelations.Thecompilersexploretheneedfora“massivestepup”in the mobilisation of domestic resources, including major changes ininternational tax practices to give fair treatment to developing countries,and an agreement on inclusive global governance of cooperation in taxmattersinordertogivedevelopingcountriesequaldecision-makingpower.However,theCouncilpointsoutthat,whatevertheincreaseingovernmentrevenue, itwillnotsufficetofundalltheSDGs.Otherfundingcouldcomefrom donor countries renewing their commitment to give 0.7 percent ofgross national income, from south-south cooperation, and innovativefinancingaroundtheworld, includingtaxesoncarbon,bunkerfuelsandairtravel. But evenwhen done efficiently, itwould come to only aboutUS$1trillion33.These issues were debated at the Addis Ababa meeting on financing theSDGsheld in July2015prior to the launchof theSDGs.The final reportofthatmeetingoutlines thekey issues for the involvementofprivate financeandinvestment.“38. We will endeavour to design policies, including capital marketregulations where appropriate, that promote incentives along theinvestment chain that are aligned with long-term performance andsustainability indicators and that reduce excess volatility…. We willencourageourcommercialbankingsystemstoserveall, includingthose

32https://sustainabledevelopment.un.org/intergovernmental/financecommittee33http://www.cfr.org/global-governance/sustainable-development-goals/p37051

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whocurrentlyfacebarrierstoaccessfinancialservicesandinformation.We will also support microfinance institutions, development banks,agricultural banks, mobile network operators, agent networks,cooperatives,postalbanksandsavingsbanksasappropriate.”34 It isaconsiderableandsignificantwishlistsetwithinaframeworkofmanyissues and considerations. For example the issues of corruption and taxavoidance are addressed as serious contributors to a depleted ability bycompanies and governments to make a truly significant contribution. TheAddisReportislongonitsvisionofwhatcouldhappenbutlessclearonwhatishappeningorhowitmighthappen.Amajorarealefttobedefinediswhatallthiswillcostandwheresuchinvestmentisneededandatwhatfinanciallevel.While there is clearly a long way to go before specific SDG-relatedinvestment opportunities can be identified and costed, the general movetowards sustainable development investment has been under way for aconsiderable time. Faith-consistent investing is partof thatmovementandhasconsiderablepotential.ItisthereforesomewhatsurprisingthatthefaithinvestmentgroupswerenotinvitedtotheAddismeeting.TheSDGscanbeausefulspurtofurtherreflectionandactionbutformanyfaith groups the 15-year lifespan will seem quite short compared to theirusual investment timeframe, which is renowned for being generationalratherthanshortterm.

34 https://sustainabledevelopment.un.org/frameworks/addisababaactionagenda

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CHAPTERFOUR:Faithsaskeypartners

Faithactorsarediverseandnumerous.Theyrangefromsmallcommunitiesat the heart of every social group, to religious leaders of communities (ofdifferent sizes, locations and faith traditions) to CEOs and staff of majorfaith-inspired NGOs and foundations working on all aspects of humanexistence and experience. They are embedded in their communities andtheir influence is often far more widespread than any other socialorganisation.

“What is the kingdom of God like? What shall I compare itwith?Itislikeamustardseedwhichsomeonetookandthrewintothegarden:itgrewandbecameatreeandthebirdsofthe

38

airshelteredinitsbranches.”JesusquotedinNewTestament,LukeCh.13vs.18-19

Religious leaders are often respected and trusted, listened to carefully bytheir followers, communities and governments. They are listened to andfollowed inways almostnoother sectorof society canhope for. They arelocal,nationaland international inunderstandingand reach.Through theirteachings and practices theymanifest the core beliefs and values of theirtradition, such as compassion, love or trust. Religious institutions are theoldest“socialserviceproviders”knowntohumankind.Assuch,theyaretheoriginal “service deliverers” of health, education, nutrition, farming,sanitation,ecologyandenergy.Moreover,religiouscommunitiesareincreasinglycomingunderthelimelightfor another critical capacity – resourcing human development. Faithcommunities are the oldest “fundraisers”, “community mobilisers” and“humanandsocialcapitalbuilders.”Central tomanyfaiths is thenotionofempowerment–enablingpeopletocreatetheirownfuturesbuildinguponthe community values of the faith. The Parsi Panchayatswhomanage thecommunity funds for Parsi and Zoroastrian communities around theworldhaveforcenturiesinvestedinhomes,workshopsandeducationalandhealthcarebuildingsandorganisationsfortheircommunity.This is not to pretend that religions cannot sometimes be a block ondevelopment, for example on gender issues or equality. Howeverengagement with other social actors has increasingly shown how this canbenefit both sides – reducing the often ‘missionary’-like ardour of theseculartomakeeveryonebejustlikethemandreducingtheintransigenceoffaithtraditionswhofeelthreatenedbymodernity.

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CASE STUDY OF FAITH-BASED EMPOWERMENT PROGRAMME AND PREPARATION FOR WORK-PLACE The New Psalmist Baptist Church of Baltimore, USA, has a Sunday Congregation of 7,000 and a network of over some 80 other African American mega churches in the USA and some 2,000 churches in East Africa. It runs a huge range of Empowerment programmes for youth, young adults and adults, to “empower members of our community to go into the world and make disciples of all persons.” This includes the Choose to Be GREAT Summer Camp teaching children to build successful relationships with law enforcement officers and church leaders. (GREAT is an acronym for Gang Resistance Education and Training). It also includes: an internship program for Young Adults, where the church coordinates internships with government and private organisations; a Financial Academy, where members of the church community are empowered in financial literacy, including classes in Budgeting 101, Understanding Credit and Wealth Building, Owning your own Home, Medicare and You, and Estate Planning; A Job Training Centre providing adults and young adults with skills in resume building, interviewing, job coaching, job search; Social Action Leadership workshops teaching members how to advocate for justice issues and policy changes; Fitness, Health and Wellness programmes35 Faithinvestinginsustainabledevelopmentisdonethroughdonationsaswellas through investments that have a market-rate or below market-ratefinancialreturn.MajorfaithtraditionssuchasCatholicReligiousOrders,theBombayParsiPanchayet,theChurchofEnglandandsomeIslamictraditionssuch as the Ismailis have investment fund departments that have theobjective to ensure income in order to pay for their internal expensesincludingstaffing,pensions,buildingsetc.Howevertherearealsosubstantialfunds given to charity, supporting thepoor, education, hospitals,which allrequire staffing, strategy and monitoring. In addition there is the moneyinvestedbyfollowersofmanyfaiths,whowanttheirmoneytobeusedwell,whileit iswaitingforthemtouseit.Thereisalsoacontributiontogeneralhumanitariananddevelopmentaidbyfaith-basedorganisations.36

35 CorrespondencewithRevAlBaileyoftheNPBC,May2016 36 Thescaleoffaithinvestmentsisoftenasurprisetosecularorganizations.TheCenterforFaith&theCommonGoodtrackedrevenuesandexpendituresof71ofthelargestUSFaith-basedNGOsfromFY2011-FY2014.InFY2014,totalrevenueraisedbyUSFaith-basedNGOswas$6.19billion,and88percentofthetotalrevenue($5.43bn)wasraisedfromprivatesources.Furthermore,inFY2014,44ofthe71trackedUSFBOsdidnotacceptorreceiveanyUSpublicfunds.

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4.1TheFaithsandtheMDGsIn discussing the potential involvement of the faiths in supporting theobjectivesoftheSDGsit is instructivetolookbackatwhatrelationshipthefaithsformallyhadinsupportingtheMDGs.Asstatedabove,thephilosophybehindtheMDGswasverydifferentfromthatwhichinformstheSDGs,andno seriousengagementwith the faiths aspotential partnerswasbuilt intotheoriginalplanningofMDGsdevelopment.Whenitbecameclearthatinfactthefaiths,throughtheirmanyoperationswereengagedinworkwhichparalleledthegoalsoftheMDGs,variouslinksweremadeanddiscussionsundertaken.Forexample,UNICEFundertookaninternalreviewofthedegreetowhichitalreadyworkedwithfaithsaroundthe world37. This study was revealing to many within the organisation asregards the scale of such existing if informal partnerships. As a result theWASHprogramme,ofwhichUNICEFisamajorpartner,startedseriousworkon partnering with faith-based schools which they had traditionallyneglected.UNICEFfoundforexamplethat64percentofall schools inSub-Saharan Africa were faith-based – usually as part of national educationsystems.Howeveranysearchof thekeydocumentsontheMDGsyields little in thewayofevidenceoftheroleofthefaiths,andexaminationofthemajorfaithtraditions and even the social action and aid sectors in faith traditions,likewise, shows remarkably little reference to theMDGs.Various interfaithmeetingswereheldbutinterfaithmeetingswithoutapriorsurveyofactionsalreadybeingundertakenorplansforactionstofollowareusuallyofnoorlittle significance.Religious leaders saying theMDGsareagood thingdoesnotconstitutestructuralinvolvementbythefaithtraditionitself.However,mostfaithscontinuedtodowhattheyhavealwaysdone–namelycontribute in their own way to education (over 50 percent of schoolsworldwidehaveaconnectiontoafaith,whetherfoundedby,managedbyorconnected); offer practical help throughmedicine and socialwelfare; raisefundsforcharitableobjectivesinlinewiththeirteachings;provideplacesof

37PartneringwithReligiousCommunitiesforChildren,UNICEF2012

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meaningwherepeoplecanrediscoverapurposeinlifeordeveloptheirskillsandcontributetosociety.Thatthesecontributionsoftenreflectthe15-yeargoalsoftheUNlaunchedin2000 isnotsurprising.HowevertheyarenotaresponseofthefaithstotheMDGs.WheretherewasattentiontotheMDGswasintheaidagenciesofthemajorfaiths.Thesehavealwaysbeenmorecloselyalignedtothegoalsofthewidersecularworld.ButevenherethereislittledocumentaryevidenceofspecificprogrammesbeingdevelopedexplicitlytoimplementorsupporttheMDGs.Rather, there are linksmade between existing aid programmes and issueshighlightedinthegoals.For example, in July 2015 a conference was held at the World Bank inWashingtonDC, USA, on effective partnerships between public sector andreligiousgroupstoachievetheSDGS.Itwasco-hostedbyBMZ,USAID,DFID,WorldVisionInternational,andtheJointLearningInitiativeonFaith&LocalCommunities, and co-sponsored by a number of leading faith-basedorganisations.Itshowcasedtheevidencefortheactivitiesandcontributionsof faith groups to Global Goals, with a particular focus on health. Themedical journal The Lancet launched a series of articles on Faith-basedHealthCare:thefirstseriesinTheLancetevertofeatureaspecialeditiononfaith.Manyexampleswerehighlighted,including• thecontributionofinterfaithplatformstomalariapreventioninNigeria

andMozambique• the role of local faith groups in alleviating extreme poverty in the

Philippines• theextensivefaith-basedhealthcaresysteminAfrica• theroleoflocalfaithcommunitiesinsupportingresilientcommunities

againstcrisesinJordan• Theuniqueroleoffaithleadersincombatinggender-basedviolencein

Burundi38Theconferencehighlightedanumberofinnovativefundingandcontractingmechanisms. For example, through the Nigerian Ministry of Health, the

38http://jliflc.com/wp-content/uploads/2015/08/RSD-Conference-Proceedings_Final.pdf

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WorldBankGroupfundedtheNigerian InterfaithActionAssociation,whichunitedChristianandMuslimleadersinNigeriaagainstmalaria.USAIDfundedtheProgramaInter-ReligiosoContraaMalaria(PIRCOM),another interfaithprogram against malaria, at first through the Adventist Development andReliefAgencyintermediary;nowUSAIDfundsPIRCOMdirectly.39FAITH-BASED ORGANISATIONS (FBOs) While FBOs are not the focus of this paper they have significance as a faith contribution to the MDG work and the potential for SDG work. In 2016 the Center for Faith and The Common Good analysed faith-based contributions to humanitarian assistance. Of the 250 organisations with the largest contributions in 2015, 37 were FBOs. In total, the 37 FBOs’ contributions amounted to more than $612m. Seven of the 37 FBOs were in the US, with their total contributions of more than $156m.40 It is hard to assess the specific contribution of the faiths to the MDGsbecausethatisnothowthefaithsthemselveshaveseenordesignatedtheirwork.Thatthefaithshavecontributedisbeyonddoubt.Buttheyhavealsocontributed to criseswhich fell outside theMDGs such as the Ebola crisiswhere the role of faiths, often in partnership with the UN and otherinternational bodies, was crucial in helping change social behaviour whichincreasedtheriskofinfectionspreading.Whatdidemerge from theMDGperiodwasa growing interest inworkingnotjustwithnationalgovernmentsnorjustwithNGOsbutwithCivilSocietyper se. This became especially significant after the failure of nation statesandinternationalagenciestodevelopanykindofleadershiporprogrammeat theCopenhagenCOP in2009.World-wide the faithsare the largestandmostorganizedsectionofcivil societyandthereforeattentionbegantobepaid to what had previously been a largely ignored and in some casesdenigratedsectorofcommunitylife.

39Duff,Buckingham.Strengtheningofpartnershipsbetweenthepublicsectorandfaith-basedgroups(2015).

http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(15)60250-1/fulltext40www.faithforcommongood.org

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TheLong-TermFaithPlansprogrammeOneexampleofthiswas–andstillis–aUNDPprogrammewhichsoughttobuild upon theway faiths actuallywork and their inherent strengths. Thiswas the Long Term Faith Plans programme, an innovative programmecreated by the UNDP partnering with ARC to encourage a faith-basedresponse to the forthcoming Copenhagen COP. It recognised that faithgroups have a long-term perspective, that they are the oldest humaninstitutionswithacontinuoushistory,andthattheythinkingenerationsandsustain communities for hundreds, in some cases, thousands of yearsthroughallkindsofadversity.And it recognised theymight benefit fromhelp in formulating a vision forhowtheycanprotecttheplanetinthefuture.Thedevelopmentoflong-termplanswasdesignedtoemphasisetheprocessbywhichchangetakesplacewithincommunities.Toooftentheemphasisinenvironmental and development organisations has been on short-termprogrammes, campaigns or targets. The MDGs and now the SDGs areexamples of a somewhat longer-term process being acknowledged – butfaithsarecapableofsustaininginitiativessuchasinvesting,formuchlongerthanthat.TheLong-TermPlansprogrammeidentifiedsevenkeyareaswherefaithsaresocially,financiallyandenvironmentallyactive:

1.Assets(land,investments,hospitals,purchasingandproperty)2.EducationandYoungPeople(includingschoolbuildings,curricula,natureteachingandcamps).3.Wisdom(includingtheologicaltraining,rediscoveringpastteachingsaboutthenaturalworldfromreligioustexts,andhelpingpeopleadapttoclimatechange).4.Lifestyles.5.Mediaandadvocacy.

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6.Partnerships.7.Celebration.

Starting with the 2009Windsor Event (attended by UN Secretary GeneralBan Ki-moon and hosted by His Royal Highness Prince Philip) and leadingoverthenexttwoyearstoeventsinAfricaandAsia,morethan60long-termplanswereproducedby faithgroups ranging from theDaoists inChina, toSikhs,HindusandMuslimorganisationstomorethan30differentChristiantraditionsaroundtheworld.Onesignificantaspectoftheselong-termplanshasbeentoshifttheattentionoftheUNandothersawayfromonlyreallyworkingwith the aid agencies of the faiths and towards engagementwiththestructuresand infrastructuresof the faiths themselvesaskeyelementsofcivilsociety.4.2ThefaithsandtheSDGsThe successof this long-termplanpartnership led theUN inearly2015 toask ARC and the faiths to undertake a similar process of long-term faithcommitments in relationship to the SDGs. ARC organised a meeting inBristol, UK, titled Faith in the Future, which took place before the UNGeneralAssembly inSeptember2015,wheretheSDGswereaccepted.ThewidercontextandpurposeoftheBristolmeetingwaswellexpressedbytheUNSecretaryGeneral,inhislettertotheARC-UNDPWindsoreventin2009:

“As a secular organisation the United Nations does not have anycommonlanguageorcommonreligion,butlikeallthemajorfaithswedoworkonbehalfofthedisadvantagedandthevulnerablepeople.Wesharethesameethicalstandardsandbeliefintheinherentdignityofallindividuals and all human beings. This iswhywework in partnershipwith governments, civil societies, business communities, NGOs andreligiouscommunities.ThatiswhyweworkwithorganisationsliketheAllianceofReligionsandConservation,which is co-hosting this event,togetherwiththeUNDP.We are united by the belief that what unites us as human beings isstronger than what divides us. We believe that through discussions,

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cooperationandcommoneffortswecanbuildamoreprosperous,morepeacefulworld– thepeace that comes fromknowingwhereournextmeal,whereournextbreadcomes;knowingyourfamiliesaresafefromviolence and disease; knowing that your children can go to schoolwithoutanyfearofdanger.Thepeacethatcomesfrompreservingtherichesofthisplanetforcominggenerations.That iswhyweareheretoday.Weareallpartofa largerwebof life.Togetherletusworktoprotectandrespectourplanet,ouronlyhome.Letushavepeacewithourplanet.”(BanKi-moonUNSecretary-General,WindsorCastle,2009)

The faiths have been social actors formany centuries. Therefore the nextstep of the growing partnership between the faiths and the UN was tocapturewhatfaithswerealreadydoingwhichcouldrelatetotheSDGsandinthelightofthat,whatmoretheymightnowdecidetoundertakebecausethegoalschimewiththeirownvaluesandbeliefs.Each of the 24 faith traditions attending the meeting prepared for it byexploringhowitscurrentprogrammesandpotentialnewprogrammescouldcompliment the SDGs worldwide. Each tradition then set out itscommitments to work on aspects of the SDGs or build awareness of theSDGs into existing programmes. By the time of the meeting, theCommitmentswerereadytobelaunched.• Each Commitment builds upon the infrastructural capacities of each

tradition–schools,colleges,educationdepartments,propertyboards,staff,hospitalsandclinics,mediaandfinancedepartmentswhicheveryfaithtraditionhas.

• Each Commitment is primarily funded by the faith tradition and itssupporters, building upon the existing structures and resources andexpanding in a sustainable way based upon a realistic evaluationcapacity.

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• Whenandwhere appropriate, new sourcesof support and resourceswould be sought enabled by the partnership status of theCommitments.

The Bristol Commitments, September 2015, illustrate how the SDGs relatewell to core faith practices and principles, providing doorways intodiscussionwithfaith investmentcommunities.However,aswiththenotionof faith finance for theSDGs thesehave tobe in the formofpartnerships,notofaninstrumentalapproachtofaiths.Thefollowingareafewexamplestakenfromthe220-pagebook41FaithintheFuture:

4.2.1Bahá’íInternationalCommunityBristolCommitmentincludes:“The challenges addressed in the SDGs will require technical andtechnological approaches. But a lasting, sustainable resolution will alsorequire solutions that are consonant with the spiritual nature of humanbeings….Countlesspeopleinwidelydifferingcontextswillneedtotakethisagendaastheirownandmakechangesintheirthinkingandbehaviour.Andit is here that faith and belief can be of central importance, for religionreachestotherootsofmotivation,prompting individualstonot justagree,buttoariseandact.”

4.2.2TheBuddhistBristolCommitmentincludes:GOAL1:ENDPOVERTYINALLITSFORMSEVERYWHEREEconomicempowermentofcommunity-basedorganisations:• Provisionofentrepreneurshipskillsandprovisionoffinancialservices• Trainingfarmercommunitiesforclimaticshocksanddisasterresilience• Advocacyforbetterpovertyalleviationstrategiesandmodels;beyond

thewelfareStatemodels“Buddhist economics promotes a spiritual approach by examining thefunctioningofthehumanmindas itsfirstprinciple.Theaimistocreateaninner process that enables thepositive transformationof ignorance, greedandviolence–theverybasisofthecurrenteconomicmodel–intowisdom,

41http://www.arcworld.org/projects.asp?projectID=667

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contentment and peace.” (This commitment comes from the Sri LankanBuddhist community and in particular Sri Lanka’s largest Buddhist socialactionorganization,Sarvodaya.)

TheBuddhisttreeordinationritualremindspeopleofthevalueofrespectforalllifeforms,includingplants,andtheneedtopreserveoursacredplanet.Source:ParichartSuwanbubbha

4.2.3TheChurchofEnglandBristolCommitmentincludes:The CofE’s Church Commissioners have made a major commitment tomonitorandreview its investments in linewith its recently revisedclimatechange policy. Changes have already been made to its portfolios, forexamplewithdrawingfromfinancecompanieswhichchargeexorbitantratesfor loans;withdrawingfromcarbonfuelcompanies,whilst italsomaintainsan active engagement strategy using stakeholder resolutions to holdcompaniestoaccountandimprovetransparency.This fulfils many of the issues in SDG Goal 9 – regarding resilientinfrastructure, promoting inclusive and sustainable industrialization andfosteringinnovation.“AsthePontificalCouncilofJusticeandPeacestatedin2012inVocationofthe Business Leader: A Reflection: “Respect for human dignity and thecommongoodarefoundationalprincipleswhichshould informthewayweorganisethelabourandcapitalemployed,andtheprocessesof innovation,inamarketsystem.Thedeepandabidingpurposeof individualbusinessesandcommercialsystemsistoaddressrealhumanneeds”.”

4.2.4TheIslamicBristolCommitmentincludes:• Initiate threeprograms aimedat sustainably improving the economic

wellbeingofdistincttargetgroupsamongtheMuslimCommunity

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• Program concepts including objective baseline data, sound rationalefortargetgroundidentification,plannedinterventionmethodologyandestimatedbudgetplusitsfunding

• Develop and implement advocacy program and sensitization/capacitybuildingtoolsoneconomicengagement

“Atthesametime,Islamencouragesthelegitimatepursuitofwealthandthe enjoyment of the bounties created for human fulfilment, inrecognitionthatwealthisonlyonedeterminantofwellbeing.IndividualsaremerelytrusteesofthewealthbestowedonthembyAllah.”

This Commitment comes from the Supreme Council of Kenyan Muslims(SUPKEM).PleasealsoseeIslamicDevelopmentBankbelow)

4.2.5TheJewishBristolCommitmentincludes:Jewishgroupsinvestinginandadvocatingforrenewableformsofenergy:“One way of addressing our own responsibility for climate change by thetime of the 2022 shmita year would be for households, congregations,denominations, and federations to invest in spending that helps heal ourplanet.(SDGGoals7,8,13)”Contributed by Hazon (USA-based, but working worldwide with activistJewishcommunities).4.3VoicesfromReligionsonSustainableDevelopmentAgoodexampleofasecularinitiativecreatingrealpartnershipswithfaithsisthatlaunchedbytheGermanFederalMinistry.InFebruary2016theGermanFederal Ministry launched a major new initiative in Berlin for EconomicCooperationandDevelopment(BMZ).AtthemajorconferenceReligionsandthe2030AgendaforSustainableDevelopmentthecorepurposeofboththeconference and the new series of partnerships being created betweensecularagenciesandthefaithswasdefinedasfollows:

“Withthe2030AgendaforSustainableDevelopment,theinternationalcommunityhaschartedapathtoensurethatallhumanbeingscanlive

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life indignitywhilerespectingtheboundariesofourplanet.Yet, ifwearetoachievetheseSDGs,weneedtochangehowwethinkandactatevery level. In the long term, the goals can only be accomplished bybuildingpartnershipsnotonlywiththosethatappealtopeople’sminds,but alsowith those thatmove their hearts. Religion plays an integralroleinallsocietiesandisthemostimportantsourceofvaluesformanypeople.Anydevelopmentpolicythattakestheindividualseriouslymustalso take his or her worldview seriously. For most people, thisworldviewisfundamentallyshapedbytheirreligion.Furthermore, for many centuries now, religion has made a practicalcontribution towards meeting people’s basic social needs. In manydeveloping countries, education and health care systems areinconceivable without this contribution. Therefore, we can only trulybreathe life into a new global partnership to implement the 2030Agendaifreligionplaysarole.”

VoicesfromReligionsonSustainableDevelopment,thebookarisingfromthisnew process is a thorough and accessible laying out of the position ofreligions on sustainable development. It includes chapters on ten religionsandtraditions:Baha’i,Buddhist,Christian,Confucian,Daoist,Hindu,Jewish,Lenape(akaDelawareIndians)MuslimandSikh.A remarkable feature is that each faith chapter addresses sustainabledevelopment through the beliefs, values and core concepts of each faithratherthansimplyusingconventionaldevelopmentterminology.InthatwayitisadirectfollowonfromthewaythefaithsrespondedtotheSDGsintheBristolCommitments.The following are some brief quotes from the Voices reflections on faithengagementwith the issues and concerns of the SDGs. SeeAppendix 4 orthefulltextofFaithintheFutureformoreinformation42.

Buddhist

42http://arcworld.org/downloads/Faith%20in%20the%20Future%20with%20cover%20(UN).pdf

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Buddhist economics promotes a spiritual approach by examining thefunctioningofthehumanmindas itsfirstprinciple.Theaimistocreateaninner process that enables thepositive transformationof ignorance, greedandviolence–theverybasisofthecurrenteconomicmodel–intowisdom,contentmentandpeace.

Christian–ChurchofEnglandThePontificalCouncilofJusticeandPeacestatedinVocationoftheBusinessLeader: A Reflection, 2012: “Respect for human dignity and the commongoodare foundationalprincipleswhichshould informthewayweorganisethe labour and capital employed, and the processes of innovation, in amarketsystem.Thedeepandabidingpurposeof individualbusinessesandcommercialsystemsistoaddressrealhumanneeds.”

IslamAtthesametime,Islamencouragesthelegitimatepursuitofwealthandtheenjoymentofthebountiescreatedforhumanfulfilment,inrecognitionthatwealthisonlyonedeterminantofwellbeing.IndividualsaremerelytrusteesofthewealthbestowedonthembyAllah.

Judaism“TheTorahcommandsthatJewscarefortheirfellowhumanbeings:

“You shall love your neighbour as yourself: I am the Lord”(Leviticus19:18).

Jewsare thus instructed togivegenerously to support fellowhumanswhoareexperiencingpoverty–withoutconsideringthesepersons’background.

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CHAPTER FIVE: Faith-Consistent investing, the SDGs and the core faithteachings

WegrieveundertheweakenedsunToseeallearth’sgreenfoundationsdried,

Andfallenalltheworksoflight.Youdonotspeak,andIregret

ThisdownfallofthegoodwesoughtAsthoughthefaultweremine.

—WendellBerry,‘Sabbaths:1984’Many faith leaders and practitioners are largely unaware of the role andimpacttheirinvestmentshave.Manyfaithsfinditawkwardtoadmitthat,inorder to do their pastoral work, they often use income generated by theinternationalfinancialmarkets.ForChristians,thisawkwardnessiscapturedintheteachingofJesusthatyoucannotservethetwomastersofGodandMammonatthesametime(NewTestament,Matthew6v24).Nor should it be assumed that every tradition within the major faiths isautomatically orientated towards goals such as social justice, equality andsustainability.Sometraditionsarehighlyexclusive;othersareopponentsofforexamplegenderequality;yetothersareopposedtosharingwithpeopleof other beliefs; others have agendas for expansion which run counter tocollaborative work on issues such as the environment or development.These tendencies are to be found also in many institutional faiths wherethey have a formal relationship with the state or with specific politicalparties. Conservatism is often the dominant feature of such traditions andsometimes themost conservative element of such groups is their financeoffice.Howeverthevastmajorityofbelieverssharemanyofthevalues,goalsandhopesof themainsecularagenciessuchas theUN.Whatcannotbe takenfor granted is that the reasonswhy themajority share these values, goalsand hopes is the same as that usually expressed in UN documents, forexampleintheSDGsthemselves.Theissuehasalreadybeenhighlightedthat

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Muslim colleagues have stated their perception that the underlyingassumption of the SDGs is that capitalism is the only significant economicmodel. Indeed many of the indigenous traditions of both Islam andChristianity that have emerged in the last century or so in Africa andAsiahave an anti-capitalist basis and create alternativemarkets through barterandexchangeofskillswithin thecommunity.Forexample theKimbanguistChurchofCentralAfricahasdoneexactlythis.ThishasenabledthisChurchtosurvivethealmosttotalcollapseofcapitalistmarketstructuresinCentralAfrica.However,asMaxWeberpointedoutinhis‘TheProtestantEthicandthe Spirit of Capitalism” (1905) the genesis of capitalism lies within theProtestantrevolutionof the16thand17thcenturies. ItwasJohnCalvin, thefounding force behind Calvinismwho broke Christianity’s ban on charginginterest, a key instrument in enabling capitalism. This relationship isreflected for example in the ProsperityGospel churches especially in LatinAmerica and Western Africa where faith in God is judged by how manymaterial blessinghebestows sucha luxury cars. Thishas even spread intosomeformsofmodernBuddhismincountriessuchasChinaandTaiwan.While capitalism has its roots firmly in Protestantism, it does not inCatholicism or Orthodox Christianity. Indeed, many Papal Encyclicals overthelasthundredorsoyearshavebeendeeplyopposedtothecorevaluesofcapitalism,not least thecurrentPope’sEncyclicalEvangeliiGaudiumwhichindefenceofthepoorlambastscapitalism.The fact is that many faiths have simply received stocks and shares asdonationsandthenmanagedthemwithlittleregardtotheirsocialorethicalimpact. This split between faith values and the values of the market wasdramaticallyhighlightedwhenthethenAnglicanBishopofOxfordtooktheofficialfinancemanagementstructureoftheChurchofEngland–theChurchCommissioners– tocourt in1989.The issuewas thatunderBritishcharitylawtheonlyobligationoftheChurchCommissionerswastomaximiseprofitto further theworkof theChurch. TheBishop challenged this through thelaw courts on the grounds that if themeans by which profit was createdunderminedtheveryvaluesoftheChurchitwasnotlegitimate.

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The Court turned this down and said that the only requirement of theChurchCommissionersunderthethenlawwastomakeasmuchmoneyaspossible for the Church. However the casewas used to clarify English lawand tomake it easier for English charities towork out how far theywerepermitted to take ethical as well as financial considerations into theirinvestmentdecisions.This is the crux of the issue because under the fiduciary law of manycountries, theboardor commissionwhich controls theassetshas tomakeevery decision for the direct benefit of the beneficiaries or beneficiary.Becauseitiseasiertoassessfinancialbenefitoverspiritualormoralbenefit,lawcourtsgenerallyputtheonusonthedecisionmakerstoprovethattheirnon-profit specific decisionsdidnotdetract from the financial benefit thatcouldhavebeengainedotherwise.Interestingly,intheUKtheclarificationofthe Charity Law to enable a focus on SRI and FCI has been critical inreassuringforexampleJewishorganizationsthattheycanlegitimatelyinvestin such areas as the SDGs outline. Such changes might be sought andencouragedelsewhere.Longevity in faith investments has a powerful potential for SDG fundingbecause the faiths go for long-term investment not short-term gains.Thereforeaninvestmentpackageofsayfifteenoreventwenty-fiveyearsisquitenormalformanyfaithgroups.Tounderstandwhatthevaluesandbeliefsarethatthe investmentsshouldbeconsistentwithinordertobeFCI,itisnecessarytolookatwhatvariousfaith traditionshavedefinedas thesecorevaluesand teachings.Only thencanafaithtraditionbyfaithtraditionprogrammebedeveloped.Itisnotpossibletocreatea“onefitsall”programme.Eachfaithtradition–and there are hundreds of them – is different for historic, cultural andreligious reasons. The following examples were produced in a partnershipbetweentheWorldBank,ARCandkeyfaithfinancegroupsworldwide.TheyshouldbetakeninpartnershipwiththequotesgivenearlierfromtheBristol

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Commitments and the Voices from Religions on Sustainable Developmentwhichprovidebackgrounddetailsofthefaith’sbeliefs.5.1TheBahá’istatementofcorevaluesinrelationtoeconomicsDevelopment,intheBahá’íview,isanorganicprocessinwhich“thespiritualis expressed and carried out in the material.” Meaningful developmentrequiresthattheseeminglyantitheticalprocessesofindividualprogressandsocialadvancement,ofglobalisationanddecentralisation,andofpromotinguniversal standards and fostering cultural diversity, be harmonised.Bahá’u’lláhteachesthatrecognitionofthefundamentalspiritualprincipleofourage,theonenessofhumanity,mustbeattheheartofanewcivilisation.Universal acceptance of this principle will both necessitate and makepossiblemajor restructuringof theworld’seducational, social, agricultural,industrial,economic,legalandpoliticalsystems.Basedonthevisionofa just,unitedandsustainableglobalcivilisation, fivespiritualprinciplesarekeytotherealisationofsuchafuture.Whiletheyarebynomeans theonly principles necessary to consider, it is felt that thesefive contain a sufficient diversity of concepts to serve as starting point forthiseffort.Theyare:• Unityindiversity;• Equityandjustice;• Equalityofthesexes;• Trustworthinessandmoralleadership;and• Independentinvestigationoftruth.

Spiritually-basedIndicators:FivePriorityPolicyAreasAswiththespiritualprinciples,thesepolicyareasareinterconnectedand,insomecases,overlapping.Therefore,initiativesinoneareawillrequireactioninothers.Thefiveareasbrieflyconsideredbeloware• Economicdevelopment;• Education;• Environmentalstewardship;• Meetingbasicneedsinfood,nutrition,healthandshelter;and• Governanceandparticipation.

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5.2TheBuddhiststatementofcorevaluesinrelationtoeconomicsOntheIndicators/criteriaofDevelopmentfromaBuddhistPointofViewFirstofall,onecriterion is the involvementofall interestedsubjects intoaprocess of development. This criterion is based on the notion of Buddhistphilosophyaboutinterdependenceofeverythingandeveryone.Second,theunderstandingthatanydevelopmentinthemoderntimecannotbeattheexpenseofanyhumanbeing,communityorcountry.Third,Buddhismteachesthattherecouldnotbeanydevelopmentbasedonpassion;that isonhatred,violenceand/orgreed.Soifthereisaneconomyoreconomicdevelopment,whichisbasedonindustrieswhosepurposeistosupplyhatred(weapons),violence(drugs,violentformsofentertainment)orgreed(consumerismwithoutanyreallifeenhancingpurpose),thiscannotbecalleddevelopment.Fourth, the concept of sharing is central in the Buddhist philosophy. In abroad sense, it means sharing love, compassion with somebody and forsomebody and at the same time-sharing one’s sufferings. So if in a givensociety the favourable environment is created for the flourishing ofphilanthropy,andagood social security net system is introduced then thissocietycouldbeconsideredasadevelopedsociety.Fifth, if one continues developing the concept of sharing, one inevitablycomestotheproblemofsettingupagoodtaxsystemwherethereisajustsharing of profit. According to this logic a tax system that allows a singleperson(orasmallcommunity)toaccumulatesomuchprofit(wealth)thatitismuchmorethannecessaryforthedemandsofapersonoracommunity,this tax system should be improved according to the notion of sharing inBuddhistphilosophy.Sixth, killing of any living creature is considered to be Papa [sin orunwholesome] in Buddhism. Continuing this notion one could come to a

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conclusionthatanyeconomydirectedattheproductionoftheweaponsofmassdestruction,anysocietywithuncontrolledmilitaryexpenditures couldbeconsideredasaneconomyleadingtodestruction.Seventh,Buddhistphilosophy isverymuchconcernedwith theproblemofkeeping purity of body, speech, and mind. So the development which isfriendly for the environment (body or outer side), for the mind (humanbeingsorinnerside),andforthespeech(themeansofdevelopment)isthequalitativeone.Eighth,itisinterestingtoobserveacloseconnection,whichexistsbetweenameansof development and theultimategoalof thedevelopment.A goodgoalshouldandcouldbeachievedonlythroughandbyagoodmeans.Anyattempttoachieveagoodgoalbybadmeans(violence,victimsandsoon)couldnotandshouldnotbeconsideredasdevelopment.Ninth, the term development itself should be explained in a sense that“development”ispossibleafterahumanbeingoracommunityhasreachedacertainlevelofliving.Forinstance,inBuddhismapersonreally“develops”only after he/she becomes a Buddhist, after he/she starts hearing theteachingofBuddha.Soanation/country“develops”onlyafter itsolvestheproblemofactualhunger,theproblemofactualwar.5.3TheChristianstatementofcorevaluesinrelationtoeconomicsIn recent years, there has been growing concern that in the midst ofeconomic growth there is increasing and evident poverty in inner cities,among minorities, and in households where women are the head.Economics,atroot, isaboutscarcity. Itsbasicassumption is that,giventhecurrentavailabilityofresources,allthedemandsontheseresourcescannotbe met, and the market is used as a mechanism for resolving competingclaims.Bycontrast,theChristiangospelisaboutgenerosity.Itsbasicassumptionisthat there is sufficiency in theworld for all of humanneed, for the divine

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Creator has blessed it and filled it, and has given to human beings theinventiveness and skill to release its wealth and potential. However, theover-exploitationofnaturalresourceshasledtotheextinctionofthousandsofspecies,andtheirreversibledepletion,almosttothepointofexhaustion,ofvastamountsofprimarymaterials.ThisliesattheheartofPopeFrancis’sEncyclicalissuedin2013EvangeliiGaudiumwhichunequivocallyspeaksoutin favour of social and economic justice for the poor. “Just as thecommandment ‘Thou shalt not kill’ sets a clear limit in order to safeguardthe value of human life, todaywe also have to say ‘thou shalt not’ to aneconomyofexclusionand inequality.Suchaneconomykills.Howcan itbethatitisnotanewsitemwhenanelderlyhomelesspersondiesofexposure,but it is news when the stock market loses two points? This is a case ofexclusion.”Theeffectivenessofanyeconomicsystemis,inChristianthinking,measured,not by the wealth that is acquired by those who gain most, but by thebenefit to those who are disadvantaged and poor. InMater et Magistra,PopeJohnXXIIIwrote:“itcannotbedeniedthatintheplanoftheCreatorallof this world’s goods are primarily intended for the support of the wholehumanrace”.In the Catholic tradition, wealth accumulation is linked to the biblicalunderstanding of justice and teachings on social and distributive justice.Pope Benedict XVI set out in his 2009Caritas in Veritate, a guideline thatbusinessmodelsmustshiftfromshareholdertostakeholdermodels.Practical implications of theological writings and their interpretations arefoundininvesting.JohnPaulIItaughtthat"...investmentalwayshasmoral,aswellaseconomicsignificance"(1991).TheReformationputanendtothetraditionalbanonusury–JohnCalvinin1555allowed interestwith theunderstanding that success inbusinesswasone signofGod’s favour to thatparticular person. Profits shouldbemadewithoutendangeringone'ssoulorthoseofothersandshouldbelegitimate.ThishasdevelopedwithinProtestanttraditionsintoviewingthisasactuallya

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'calling' that should be adhered to in being a proper steward ofGod.OneshouldacceptGod’sgifts[theprofits]andbewillingtousethemwhenandifGodwantsit.AsanexampleofProtestantguidelineson investing,TheMethodistChurchin theUSAoffers itsgrassrootsTheBookofDiscipline (2008),outlining thekey statements about how United Methodists agree to live their livestogether.Oneparagraphcoversresponsibleinvestmentandreads:"...intheinvestment of money, make a conscious effort to invest in institutions,companies, corporations, or funds whose practices are consistent with thegoalsoutlinedintheSocialPrinciples."Thisisfurtherelaboratedinpracticaltermsthrough"...endeavourtoavoidinvestmentsthatappearlikely,directlyor indirectly, to support racial discrimination, violation of human rights,sweatshops or forced labour, gambling, or the production of nucleararmaments, alcoholic beverages or tobacco, or companies dealing inpornography.”5.4TheDaoiststatementofcorevaluesinrelationtoeconomicsDaoismisthetraditionalfaithofChina,foundedupontheteachingsofLaoZiand the classical text theDaoDe Jing. Daoism seeks to follow the naturalway,theWayofDao–whichitselfmeansthePathorWay.Daoismhasonoccasions ruledareasofChinaandhad todevelophandbooks forpracticalandspiritualguidanceinstatesmanship.TheDaoDeJingitself isaguidetogoodlivingandstatesmanship.Daoismadvocates trueequality in its classicTai Ping Jing (Scriptureof theGreatPeace). Itbelievesthatallsocialwealthbelongstoheaven,theearthand human society, and should not be possessed by a small number ofpeople.Wealthshouldbedistributedproperlyinsociety,ensuringthateverymemberofthecommunityhastheessentialsforlife.Forexample:Firstly, social wealth can be properly redistributed by the governmentthroughanappropriatefinancialpolicyespeciallytoensurethatthehungryhaveenoughfoodandtheraggedhaveenoughclothing.

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Secondly,thosewhoarewealthyshoulddistributetheirwealthvoluntarilytothepoor.Thirdly,thosewithmoneyshouldlendtothepoorfortheirlife’snecessitieswithout charging interest. If thosewithwealth fail to do this and therebyincrease the suffering of the poor, or even cause their death, then thewealthywillbepunishedbytheUniverse.

Ifyouknowwhatyouhaveisenoughyouwillbesatisfied.

Butifyouthinkyoudon’thaveenoughthenyouwillneverhaveenough!

IfyoufollowtheTao,whatyouarewilllast.Youwilllive,andlive,andoutliveyourselfagain.

—DaoDeJing,ch.33Daoism does not oppose wealth, but as the Tai Ping Jing teaches thepossession and grabbingofwealth bring greed anddesire. It declares thatultimately all wealth is not someone’s possession, but belongs to theUniverse and to the Dao. TheDao De Jing says: “The Heavenly Dao takesfrom those who have too much, and gives to those who have little ornothing.”(Chapter77)Daoismbelievesthatoneobligationforthewealthyshouldbetolendmoneyto the poor, interest free. However, Daoismmakes a distinction betweenmoney lent to the poor for the improvement of their basic facilities,amenities and opportunities - e.g. housing, food, education, employmentopportunities etc. - and money lent for the making of more money. Theformershouldbeinterest-free,whilethelattercanbechargedinterestatareasonableandrealisticlevel.5.5TheHindustatementofcorevaluesinrelationtoeconomicsAll human endeavours are part of the divine cycle of sacrifice, in whichaction is consecrated to the Supreme and death acts as the last samsara

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[cycle of lives]. This is the core of Hindu notions of dharma [religion, orresponsibility]. Dharma is sometimes translated as religion, because itshapesthemoralsandbehaviourofsociety,butitismorethanthis.Itistheessence of life itself. Depending on whether a person’s actions are inaccordancewithdharma,theybringeithergoodorbadreactions.Thereforethe chief end in Hindu society is not, and never could be, economicdevelopment.Itistoupholddharma.Sacrificebringsprosperity,andisthereforethefoundationofHindusociety.From it follows economic development, material comfort and ultimatelyspiritual fulfilment through detachment. This sequence is commonlyexpressed as the fourfold basic principle of human civilisation: dharma,artha, kama,moksha - ‘religion, economic development, sense enjoymentandliberation’.Accordingtothisfourfoldprinciple,dharmaeventuallyleadsto moksha, or liberation from the cycle of rebirth. But artha and kama,economic development and sense enjoyment, are part of this process. Ittherefore becomes clear that artha, or Hindu economics, is central to thesuccessfulexecutionofhumanlife.The Hindu understanding of economic prosperity is a society in which allaspectsoftheindividual--body,mindandspirit--aresatisfiedbyplacingGodatthecentreofallactivities.

“Whateveryoudo,whateveryoueat,whateveryouofferandgiveaway,andwhateverausteritiesyouperform-dothoseasanofferinguntoMe[Krishna].”[BhagavadGita9.27]

This according to the Srimad Bhagavatam [7.11.8-12], encourages thedevelopment of basic human good behaviour, called sadarcara, including‘truthfulness, mercy, control of the mind and senses, non-violence,simplicity, service to saintly persons, gradually taking leaveof unnecessaryactivitiesinhumansociety,fooddistributiontoalllivingbeings(bothhumanandanimal),worshipofGod.’

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5.6TheIslamicstatementofcorevaluesinrelationtoeconomicsWhile Islam historically developed in different traditions, the basis of theMuslimfaith,worldviewandethicremainstheQur’an,supplementedbythesunna: the remembered behavioural precedents set by the ProphetMuhammad(Arabicathar),andhissayingsorrulings(Arabichadith).And the tone of the Qur’anic and Prophetic Directives regarding wealth(Arabicmal or rizq), gain (Arabic kasb) and expenditure (Arabic infaq) isbasically approbatory. As viewed by the Qur’an, wealth is amut`ah: likemarriage and parentage, one of the comforts and delights of earthly life,whose enjoyment is fully legitimate provided it does not preclude (a) theheeding of spiritual and ethical dictates, and (b) consideration for thecommonwelfare.AsdepictedintheQur’an,allwealthderivesfromGod’sbounty(Arabicfadl,orni`mah),andsuccessinitsacquisitionisasignofDivinefavour.Recipientsof God’s bounty must receive it and expend it with pious gratitude.According to the Qur’an, true believers are those who, apart from beingassiduous inworship,“expendofthatwhichWehavebestoweduponthem(mimmarazaqnahumyunfiqun)(2:3).In the search for wealth, as in its enjoyment, the faithful need to guardagainst excess and lack of consideration for others. For the greedy,avaricious and exploitative, as for the rich who are secretive about theirwealthormakeanunnecessaryshowofitbyconspicuousconsumption,theQur’an has nothing but outright condemnation. “They who hoard up goldand silver and spend it not in thewayofGod, unto themgive tidings of apainfuldoom,ontheday[theirgoldandsilver]willbeheated inthefireofhell,andtheirforeheadsandtheirflankswillbebrandedtherewith...”(9:34b-35a).TheQur’andrawsa cleardistinctionbetween thenaturalhumandesire toacquire and expendwealth,which is commendable as being innocent andlegitimate when exercised with piety and restraint, and excessiveenrichment or indiscriminate spendingwithout regard to piety, and at the

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expense of the common welfare, which elicits condemnation as anunpardonablevice,onspiritualasonsocialgrounds.IntheQur’anicview,thetrulylegitimateavenueforacquiringwealthistradeasafreecommercialtransactionbetweenbuyingandsellingpartiesonthebasis of mutual agreement and goodwill (4:29). And the Qur’an actuallydetailstherulesforcommercialtransactions.“Godhathpermittedtradeandforbiddenusury.... giveupwhat remaineth [due to you] fromusury... [and]have your principal [back] without interest.... And if the debtor is instraitenedcircumstances,then[lettherebe]postponementuntil[repayment]becomespossible;andthatyeremityourdebtincharitywouldbebetterforyou....”The Qur’an addresses its directives regarding economic behaviour to thebelievers, individuallyorasacommunity,withouttouchingonthequestionof economic organisation as a political function. The only Muslim publicinstitutionforwhichtheQur’anexplicitlyprovides iszakat: thetithewhichthe faithfulareexhortedtopaytoalleviatetheconditionsof thepoorandneedyamongthem,andtodefrayothercommunalexpenses.ThisleavesthepoliticaleconomyoftheMuslimcommunity,anditspublicaffairsingeneral,to be managed, as circumstances dictate, within the framework of theMuslimethicprescribedbytheQur’anandthesunnah:anethicinwhichtheprincipalemphasisrelatestofair-dealingandconsiderationofothers,andofthe general good. Beyond this ethic, there are no hard and fast rulesgoverning collective Muslim behaviour politically or economically. Thisleavesabundant roomfor resilienceandadaptation,aschangingsituationsmaydemand.ForfurtherdetailsonzakatpleaseseeAppendix5.5.7TheJewishstatementofcorevaluesinrelationtoeconomicsThe Talmud states that the first question thatwill be asked of thosewhoenter theWorld toCome is:“Wereyouhonest inbusiness?”Thisquestionshould not come as a surprise, for the way that a person earns his livingclearly affects and colours all of his actions and deeds. There is a vital

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principleinJewishlawthatajustifiableendmayneverbeachievedthroughunjustifiablemeans and no amount of religious launderingwill evermakenon-kosheractions(ormoney)kosher.The Talmud compares profiteers and hoarders to usurers and shortchangers.Jewishlawalsoappliesstrictprofitlimitationstowhatareknownas“essentialitems”atermgenerallyappliedonlytobasicfoodstuffs.Flour,bread,oil,andperhapscertainmilkproductswouldnowadayscomeintothiscategory. Itmayalsobepossible to argue that certain services are “basic”andwouldthereforehavetobeprice-fixedoratleasthaveprofitlimitationsapplied.Assistance to the weaker or impoverished members of society is notconsidered an act of kindness, but rather an obligation, both for theindividual and for society as a whole. Indeed the Hebrew word used forcharity, tzedakah, could be more accurately translated as “justice”. Theunderlying principle is that one cannot escape one’s obligations andresponsibilitiestoothermembersofsociety.Thisconceptisexpressedinthestatementof the rabbis:“Hewho says: ‘Mine ismineandyours is yours’...somesaythatthisisthetraitofSodomSystems of charity as outlined in the Torah can be classified as eitheragricultural gifts, or assistance in the form of money and kind. It isparticularlywith regard to the latter thatMaimonides suggests that thereare eight levels or degrees of charity: The lowest level is when charity isgiven grudgingly. The levels then ascend in importance as the donor andmore importantly the recipient become anonymous. The highest levelhowever,doesnoteven involvethegivingofcharity. It is thatofprovidingfor poor people by sending business their way or by setting them up inbusiness.Inotherwords,thehighestcharitableactistogiveanotherpersonthe means to become independent. The aim of Jewish law is not to justrelievepoverty,butrathertoenabletheunfortunatepersontoescapeandgetoutofthestateofpoverty.

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CHAPTERSIXOutlineproposalforthemeetingin2017

6.1InvitetherightpeopleThekeyfaithfundsareheldbymajorfaithtraditionsandinstitutions.Thesefundsarenotmanagedexceptataveryremotelevelbyreligiousleadersassuch but usually by professional finance staffmandated by the GoverningBodyofthefaith–synods,councils;boardsetc.Our proposal is that any such meeting or next step should not make thecommonmistakeofwell-meaningbodiesofinvitingmajorreligiousleaders.Fewifanyofthemknowanythingabouthowthefinancesoftheirtraditionare run. The people who should be invited should be those with actualfiduciary responsibility plus those who have sought to move the faithtradition to great social involvement. This often means educationalists,mediaanddevelopmentagencyspecialistsfromwithinthefaithitself.It is proposed that those invited to participate come from the followingcategorieswithinthefaithtradition:• Financeofficers;• Propertyandrealestatemanagers;• Charitablefoundationsandtheirheads;• Pensionandhealthfundmanagers.• Educationdepartments;• Theology/Philosophy/ReligiousStudiesdepartments;• FBOssuchasChristianAid,ICCO,IslamicRelief,EcoSikhetc,whichare

ineffectautonomousbutlinkedtoaspecificfaithtradition.• Scholars, economists and other expertswho can track data on faith-

basedfinance,andresearchevidenceforfaithactivityandcontributiontotheSDGs.

Itisalsorecommendthatwhilefaithaidagenciesareinvited,thekeygroupswho can seriously invest in sustainable development goals are the majorfaithtraditionsthemselves,notjusttheiraidagencies.

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For the initialmeeting it isproposedthat the faithbodies invitedwillhavedrawn up a “protocol” which will have been discussed internally. Theprotocol will indicate the new or revised priorities which the organisationhasagreedshouldbetheguidingprinciplesfortheirinvestmentprogramme.Whilesuchaprotocolcannotbeconsideredlegallybindingitcanbeameansfor addressing the issue of the legal responsibilities of Trustees. Asmentionedearlierfiduciarylawsoftenaccidentallyexcludemoralchoicesinpreference for greater financial return. By adopting protocols to guidedecisionmakingfaithbodiescanovercomesuchlimitationswhilstremainingwithinthelaw.Forgroupsnotconstrainedbysuchlawsitisbelievedthattheprotocolswillenableasharperdefinition,notjustofvaluesandbeingfaithconsistent,butof how the faith will make decisions in the future about the use of itsinvestments.The hope of this paper is that not only can new partnerships be createdthrough the proposed 2017 meeting, but that the paper will also inspiredeeper reflection and actionwithin faith organisations. Alongside this thepaper should encourage secular organisations and institutions to reflectseriouslyaboutthepotentialofworkingwiththefaithsasinvestors.6.2FivepointsforactioninthefutureFaiths last. Secular institutions have short life spans. Therefore whenplanningthisprogramme,itisrecommended:

1. Startwiththosewhohavealreadywalkedthispatheven if theyhavestumbledbecauseit ismoredifficultthaninitiallythoughtandhoped.Thosefaithswhichhavereviewedtheirinvestmentsoncapitalmarketsandthenputtentativeprogrammesinplacetoinvestfaithfully.

2. Work with finance officers from faiths with significant investmentswhichareontheedgeofbecomingmorefaith-consistentsuchassomekeyelementsofShintoisminJapan;majorHindutraditionssuchastheRamakrishna movement; Buddhist groups like the Sarvodaya

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Development Finance group, Sri Lanka; the social and developmentfunds in the (well-structured) UN-based network ACT Alliance43, theCatholicnetworkCIDSE44etc.

3. Involveothercivilsocietyinvestmentmanagers,e.g.thoseinvolvedinthe Principles of Responsible Investment (PRI), who have made thejourneyintoethicalinvestmentandhavealreadysigneduptosupportSDG-orientatedinvestment.Faithfinanceofficerswillwanttoseethatthis is a path that others with similar responsibilities are walking sotheywillnot feelalone.A rangeof financehouses/bankswillprovideduediligence.Rabobank, forexample,manages some£300millionofreligious funds. Triple Bottom Line International (TBLI) is supportingthesefuturedevelopments;ithasbeeninvolvedinethicalinvestingformanyyears,includingwiththefaiths.

4. Official development bodies such as OECD, UNDP, and nationaldevelopmentagencycolleagueswhocan talkabouthow this fits intothebiggerinternationalfinanceflowandwheretheyconsiderthebestandmostfaithappropriateopportunitiesare.Thislevelmustcomenotjustwith a request butwith specifics ofwhere, howmuch andwhy.NormustitbeaboutwhatthefaithscandofortheUNorOECD.Ratheritshouldbeframedaswhatcanbedonebettersidebysidethanalone.

5. ThoseFBOsthathaveputthepolicyoffaith-consistentinvestmentintopractice.Howeverbeawarethat thesegroups:Cafod;Caritas; IslamicRelief; Christian Aid etc. are sometimes seen by the major faiths aslobbygroupsand sharing the valuesof the secularworld rather thanfaith-basedvalues.OneexceptionisWorldVision,whichhasmanagedto be the genuine voice of the evangelical US Christian world. It istempting to work with what are often familiar clones of secularagenciesbuttheydonotcarrythatmuchweightwiththemainstreamfaithorganisations,whichtheysometimesclaimtorepresent.Theyareoftenatoddswithmore traditional sectionsof the faithand this canpolariseissuesunnecessarilywhenthekeydecisionmakersonfinanceareoftenalsothemoreconservative.

43http://www.actalliance.org44www.cidse.org

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6.3Outcomestoplanfor1. Throughpublicationofthepapercreateawarenessamongstthefaiths

oftheseriouspotentialoffaith-consistentinvestinginhelpingsustainabledevelopment;

2. Choosethreeareasoffocusforpreliminaryinvesting;3. Explorethedevelopmentofastructure/approachtoinvestinginthese

priorities;4. Indicatethewaysinwhichtheofficialdevelopmentbodiescan

assist/advisesuchinvestment;5. Discusshowtoleveragethe‘committedgroups’intoexpandingthe

investingcommunity6. Outlinenextstepsandagreedinitialtargets;7. Encourageasharingofbestpracticewithotherasyetunengagedfaith

investmentsgroups.FaithswillbecomeSDGinvestorsbecauseitmakessensewithintheirworld-viewandvalues.TheyarenottheretobeadjunctstotheUN,OECDoranyothergroup,Theyaretheretobepartnerspursuingvaluesthataccordwiththeteachingsoftheirfaith,notasinstrumentsofpolicyforothers.An instrumentalist approach to the faiths in relation to SDGs or any othersuch plans of world improvement will not work. The faiths are not hereprimarilytomaketheworkofanysecularorganisationeasier.Theyarehereto challenge us to think bigger; seek deeper; explore more widely andenthusepeoplemoreprofoundlythananypoliticaloreconomictheoryeverwill.Theyalsothinklongtermbecausetheyhaveoutlivedandwilloutliveallotherhumanconceptualstructuressuchasempires;dynasties;nationsandeven ethnic identities. This is perhaps best captured in two texts fromancientChina– itself the longestsurvivingculture intheworld.OneofthefourclassicnovelsofChinasays:

“Empiresrisefromchaosandempirescollapsebackintochaos.”TheStoryoftheThreeKingdomsc1380AD

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The contrast to this Confucianworldview is found in theDaoDe Jing, theClassicofDaoism(DaomeansthePathorWayofNature):

TheGreatDaogoeseverywhere,pastyourlefthandandyourright–

fillingthewholeofspace.Itisbreathtoeverything,

andyetitasksfornothingback;Itfeedsandcreateseverything,butitwillnevertellyouso.

Itnurturesallthings.Withoutlordingitoveranything.Itnamesitselfthelowestofthelow.

ItholdswhatitmakesYetneverfightstodoso:ThatiswhywecallitGreat.Why?

Becauseitnevertriestobeso.”(Chapter34)

MartinPalmer,SecretaryGeneral,ARC,November2016

Andwouldyoulearnthespellsthatdrowsemysoul?WorkwithoutHopedrawsnectarinasieve,AndHopewithoutanobjectcannotlive.

— SamuelTaylorColeridge,WorkwithoutHope,1825

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7.0AcknowledgementsThispaperhasinvolvedthework,helpandsupportofmanypeople.We’dliketothank:Frances Charlesworth, Diary Assistant to the Bishop of London; Rt Rev RichardChartres,Bishop of London; Katinka van Cranenburgh from Community WisdomPartners; Michael Ray Darby, Research Assistant at ARC; Jean Duff, President of thePartnershipforFaithandDevelopment;OmayamaElElla,OperationsManagerfortheMuslim Charities Forum;Michael Even, CEO ofNumeric Investors LLC; Victoria FinlayDirectorofCommunicationsfortheAllianceofReligionsandConservation;Rev.SeamusFinn,ChairoftheInterfaithCenteronCorporateResponsibility;RabbiMarkGoldsmith,The Movement for Reform Judaism; John Goldstein, Managing Director of ImprintCapital;CarolineLensingHebben,UNDP,YunHe,ARCChinaProgrammeManager;AzzaKaram,SeniorAdviser,MultilateralAffairsBranchfortheUNPopulationFund(UNFPA);OlavKjorven,DirectorforPublicPartnerships,UN;HettyKovach,GovernanceSpecialist,OECD; Jørn Lemvik, Secretary General of Digni; EdwardMason, Head of ResponsibleInvestment for theChurchCommissioners forEngland;EllieMcCarthy,Researcher forARC;PippaMoss,ResearcherforARC;UlrichNitschke,–HeadofPaRDSecretariat,TheInternationalPartnershiponReligionandSustainableDevelopment;DavidNussbaum,CEOofWWFUK;Pilkington,Brian–ChairmanofTrusteesforARC;JayRamsay,PoetryAdviser; Robert Rubinstein, CEO Triple Bottom Line Investment Group; MichaelShackleton, Osaka Gakuin University, Japan; Khushwant Singh, Sector ProgrammeValues, Religion and Development of GIZ; Allerd Stikker, Founder of the ValleyFoundation; Jean-Pierre Sweerts, Chairman of the Board and the InvestmentCommitteeatDOBEquity;TessaTennant,FinancialConsultant;KarlWagner,RealizingVisions; Robert Wilson-Black, CEO of Sojourners; Josh Zinner, CEO of the InterfaithCenteronCorporateResponsibilityWealsowishtoacknowledgethehelpofmanyfaithleadersoverthepast15yearswhohavecontributedtothedevelopmentofFCI.

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Appendix1.SomeexamplesoffaithgroupsasinvestorsItcanbehardtofindinformationaboutfaithinvestments.Theseexamples,inalphabeticalorder,werechosentorepresenttherangeanddiversescaleofsuchgroups,aswellastheirinvestmentcriteriaandtheirportfoliostothedegreethatinformationisavailableinthepublicdomain.Ourhopeistoexpandthesedetailsasthisprogrammerollsforward.

FaithGroupAmountInvested(inonefinancialyear) Criteria

ChurchofEnglandChurchCommissioners

£6.7billion(end2014) Seelistinsection2

ISKCON(InternationalSocietyforKrishnaConsciousness),UK

Netassets:£30,706,918(end2011) BhaktivedantaManormaintainsapolicyofpurchasingpropertiesforhousingmembersofstaffonthebasisofneedandwhetherbudgetallows.Ifthereisnopurchase,moniesmaybeusedformaintenanceofexistingproperties.Thetemplesetsaside£10,000tobeawardedtodeservingISKCONprojects.Includefoodrelief,education,religiousfestivals,preaching,awarenessandbookpublishing

Islam $2trillionglobally(end2014) Shari'alaw-donotinvestingambling,alcohol,porcinefoodproducts,weapons,tobacco,media,'conventional'financialinstitutions,pornography.ProhibitionofRiba(excessinterest)

Islam-MeezanBank,Pakistan

£2,906,306,051TotalAssets PremierIslamicbanking:fair,just,Shari’acompliant.Nomentiononwebsiteorinstandardsofethicsofparticularinterestinethicalinvestmentorsustainableliving.NospecificinvestmentcriteriabeyondthatsetoutbyShari’alaw,whichwouldbecheckedbytheShari’asupervisoryboard.

JewishJointBurialSociety

£13.1million(endof2014) InvestmentsmanagedbyInvestec,largelyequities,bondsandproperties

JewishNationalFund

Investments,splitinterestagreements:$70,741,445other:$116,737,793(TotalAssets:$236,108,961)

Land,forestry&greeninnovations,waterrenewal,researchanddevelopment,Zionisteducation&advocacy,Israel'sindependence,disabilitiesandspecialneeds

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NewIsraelFund Grantspaid2014:£1.24mNetAssets:£389,307

NIFwillnotfundglobalBDSactivitiesagainstIsraelnorsupportorganizationsthathaveglobalBDSprograms.Prioritiesarehumanandcivilrights,socialandeconomicjustice,religiouspluralism,sharedsocietyandenvironment

ParsisofIndia Socialwelfare:housing,education,healthcare,Parsipopulation,employment

Quakers £33,444,000(end2014) Donotinvestinthearmstrade,promotionofviolenceorproductionofweapons,tobacco,alcohol,gambling,prostitution,pornography,fossilfuelextraction

SalvationArmy-UK

Investments:£136.06m,othershorttermassets:£153.75m

Donotinvestincompanieswhichderiveamaterialamountofrevenuesinalcohol,tobacco,weapons,gambling,adultentertainment,pornographicmagazinesornewspapers

SalvationArmy-USA

$7,708,118,000(Sept2014) Notpermittedtoholdsecuritiesincorporationswhoseprimarybusinessactivityisthemanufacture,distributionormarketingofalcohol,tobacco,pornography,gaming,orgamingfacilities

SamuelBronfmanFoundation

ToinspirearenaissanceofJewishlife:learning,youth,communities

SarvodayaDevelopmentFinance,SriLanka

AssetbaseLKR4.2billion(circa£23m)CapitalLKR1billion(circa£5.6m)

Microcredit,predominantlyruralcommunities,empoweringwomenandemployment.Donotfundprojectsinvolvinggambling,liquor,drugs,weapons,slaughterofanimals,harmtoenvironmentorbusinessthatwouldcreateethnic,religiousorsocialdisharmony

ShoreshCharitableTrust

£6,251,081(Sept2014) BeneficiariesmainlyinUKandIsrael,topromotenormativeJudaism,emphasisonwelfare,socialaction,educationalandculturalprojects

UnionforReformJudaism-TheChaiInvestmentProgram

Annualadvocacyexpenditure2009:US$2.9m

Againsttobacco,pollutersetc.Investinagenciesthathaveasociallyresponsibleagendarangingfromlow-incomehousingprojectstocommunitydevelopmentbanks

UnitedMethodistChurch-USA

Endeavourtoavoidinvestmentsthatappearlikely,directlyorindirectlytosupportracialdiscrimination,violationofhumanrights,sweatshoporforcedlabour,gambling,ortheproductionofnucleararmaments,alcoholicbeveragesortobacco,orcompaniesdealing

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inpornography.

WorldCouncilofChurches

TotalAssets:CHF65.8mNon-currentinvestments:CHF8.2mCurrentAssetInvestments:CHF1.06m(end2013)

Investinareasthatconcernasustainableenvironmentforfuturegenerations.Donotinvestin,amongstotherareas,weapons,nuclearenergy,geneticallymodifiedorganisms,fossilfuels.

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Appendix2.IslamicDevelopmentBank(IDB)ThefollowingistakenfromtheIDBwebsite:

• Ineducation,31operationswereapprovedforanamountof$227.7millionin2014.

! ThelargesteducationprojectwasthesupportforbilingualeducationinsixstatesofNigeriawhichprovidesanopportunityinbilingualeducationforAlmajiri(itinerantQur’anicstudents).

! Underitseducationforemployment(e4e)initiative,YemenisabeneficiaryofUS$4.6mimplementedjointlywiththeIFC,fromtheTransitionFundundertheDeauvillePartnership.

! WiththeGlobalPartnershipforEducation(GPE),theBankispilotingitsTripleWininnovativefinancingmechanismintheeducationsector.

• 17healthsectoroperationswereapprovedforUS$153.8mcoveringvariousaspectsofnational

healthsystem.Growthinhealthsectorfinancingin2014grewimpressivelyby72percentoverthepreviousyear.

• OntheEbolacrisis,theBankapprovedanemergencyassistancegrantofUS$600,000tosupportGuineaandSierraLeoneaswellasaUS$10mgrantthroughtheIslamicSolidarityFundforDevelopment(ISFD)asseedfinancingtoattractphilanthropistsandNGOstocontributeresourcesforEbolaVirusDisease.ItalsoextendedaUS$34mfinancingfacilitytoGuineatostrengthenitshealthsystem,ofwhichUS$6millionwasearmarkedforEbolacontrol.

• 17transportationsectorprojectswereapprovedforUS$1.4billionwiththemajorityofthe

financingbenefitingsixAfricanmembercountries

• 10urbandevelopmentoperationswereapprovedfor$479mbenefitingBahrain,Iran,Côted’Ivoire,Lebanon,Mali,SenegalandNigeria.

• 30agricultureoperationswereapprovedfor$406.4mcomparedto$714mayearearlier.Thelowapprovalswereduetonon-acceptanceoffinancingtermsandconditionsbybeneficiaries;highcountryexposure;and/orhighCumulativeUndisbursedCommitments.

• 63operationswereapprovedundertheTechnicalCooperationProgramforUS$1.5m,ofwhich15wereregionaloperationsbenefiting25membercountries.

• 16projectswereco-financedin14membercountrieswithotherdevelopmentpartners.Ofthese,eightprojectsinsevencountrieswerewiththeCoordinationGroup,whichcollectivelyprovidedaboutUS$1boffinancing,equivalentto50percentofthetotalcostoftheprojects(US$2b),withtheIDBcontributing40percent($800m).

• 381studentsbenefitedfromtheScholarshipProgramforMuslimCommunitiesinnonmembercountries,bringingthebeneficiariesfromtheinceptionoftheprogramin1983to13,170students.

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• 50studentsweregrantedtheMScScholarshipPrograminScienceandTechnologyfortheLeastDevelopedMemberCountries,bringingthecumulativenumberofbeneficiariessince1419H(1998)to560students.

• 100scholarsreceivedtheMeritScholarshipProgramforHighTechnologyformembercountries.

EightoperationsundertheNGOandWomenEmpowermentProgramwereapprovedforatotalUS$450,000forBurkinaFaso,Kuwait,Kyrgyz,Senegal,Uganda,Yemen,andregionalprojectsforArabcountries(NorthAfricaandGulfregions).

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Appendix3.OECDInvestmentProfileAsthejourneybeginstoseeinwhatwaysthefaithinvestmentsgroupscanbecomepartnersininvestinginSDG-relatedactivities,itisimportanttolookatwhatother,secular,groupsaredoingandhowtheycouldprovidemodelsfromwhichthefaithscouldlearnandwhichcouldthenbeemulated.Forexample,OECDhasundertakenconsiderableworkonthepotentialforallinvestorsofSocialImpactInvesting(SII).OECD’sworkonSocialImpactInvestingSocialimpactinvestment(SII)--theprovisionoffinancetoorganisationsaddressingsocialneedswiththeexplicitexpectationofameasurablesocial,aswellasfinancial,return--hasbecomeincreasinglyrelevantintoday’seconomicsettingassocialchallengeshavemountedwithpublicfundsinmanycountriesunderpressure.Newapproachesareneededforaddressingsocialandeconomicchallenges,includingnewmodelsofpublicandprivatepartnershipwhichcanfund,deliverandscaleinnovativesolutionsfromthegroundup.45AwarenessofthepotentialopportunitiesofSIIhasgrownconsiderablyacrossseveralOECDandnon-OECDcountriesincludingintheG8andG20.InthecontextoftheUK’sG8presidency,theUKPrimeMinisterhostedaG8SocialImpactInvestmentForuminLondoninJune2013andlaunchedtheSocialImpactInvestmentTaskforce,whichproducedaseriesofreportsinSeptember2014.AsoneoftheoutcomesoftheForum,theOECDwasaskedtoproduceareportontheSIImarket.SocialImpactInvestment:BuildingtheEvidenceBaseReportwaspublishedFebruary2015:46Ithighlightstheimportanceoffurtherinternationalcollaborationsindevelopingglobalstandardsondefinitions,datacollection,impactmeasurementandevaluationofpolicies.Inafast-evolvingnewarea,experiencesharingbetweenplayersinthemarketisalsovital.InternationalorganisationssuchastheOECDcanplayanimportantroleinfacilitatingthesecollaborationsaswellasconductingfurtheranalysisanddatacollection.ImportanceforOECDandnon-OECDcountriesSIIcanpotentiallyprovidenewinnovativewaystomoreefficientlyandeffectivelyallocatepublicandprivatecapitaltoaddresssocialandeconomicchallengesattheglobal,nationalandlocallevels.Whilethesenewapproacheswillnotreplacethecoreroleofthepublicsectorortheneedforphilanthropy,theycanprovidemodelsforleveragingexistingcapitalusingmarket-basedapproacheswithpotentialtohavegreaterimpact.SIIcanalsocatalyseadditionalcapitalflowsintodevelopingeconomies,criticaltothecurrenthigh-leveldialogueonFinancingforDevelopmentandthedevelopmentofthenewSDGs.Themarketisevolvinginvariouswaysacrosscountries.Thisisinfluencedbythedifferencesinthecountrycontextincludinghistory,socialneedsandvaluesystems.Inaddition,thewaysinwhichsocialandfinancialsystemsarestructuredwilldeterminetheroleandmixofpublicandprivatecapitalandthereforethepotentialroleofSII.Thevariationinthesecontextscanprovideindicationsintermsof45http://www.oecd.org/sti/ind/social-impact-investment.htm46http://www.oecd.org/sti/social-impact-investment-9789264233430-en.htm

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whichSIIapproachesmaybemoreappropriateinsomesectorsthaninothers,andeasiertoimplementinsomecountriesthaninothers.AlongsidethegrowthofSIIthereistheemergingsphereofblendedfinance.AgainOECDhaveworkedonthisandproducedaveryhelpfulprimeronthisnewfield47.Finally,againOECDhasundertakenstudyofinstitutionallong-terminvestors(thoughnotcoveredthefaiths)andproducesanannualreport48.OECDworkonInstitutionalinvestorsandlong-terminvestment49Theincreasinglyshortsupplyoflong-termcapitalsincethe2008financialcrisishasprofoundimplicationsforgrowthandfinancialstability.Launchedin2012,thisprojectaimstofacilitatelong-terminvestmentbyinstitutionalinvestorssuchaspensionfunds,insurancecompanies,andsovereignwealthfunds,addressingbothpotentialregulatoryobstaclesandmarketfailures.Whyislong-terminvestmentimportant?Thedifferentkindsofcapital

• Patientcapitalallowsinvestorstoaccessilliquiditypremiums,lowersturnover,encourageslesspro-cyclicalinvestmentstrategiesandthereforehighernetinvestmentrateofreturnsandgreaterfinancialstability.

• Engagedcapitalencouragesactivevotingpolicies,leadingtobettercorporategovernance.• Productivecapitalsupportsinfrastructuredevelopment,greengrowthinitiatives,SMEfinance,

etc.,leadingtosustainablegrowth.Otherlinks:• PrivatefinancingandgovernmentsupporttopromoteLong-termInvestmentsininfrastructure,

September201450• PoolingofInstitutionalInvestorsCapital-SelectedCaseStudiesinUnlistedEquityInfrastructure,

April201451• TheRoleofBanks,EquityMarketsandInstitutionalInvestorsinLong-TermFinancingforGrowthand

Development,201352• Promotinglonger-terminvestmentbyinstitutionalinvestors:selectedissuesandpolicies,201153

47http://www3.weforum.org/docs/WEF_Blended_Finance_A_Primer_Development_Finance_Philanthropic_Funders_report_2015.pdf.48http://www.oecd.org/daf/fin/private-pensions/institutionalinvestorsandlong-terminvestment.htm49http://www.oecd.org/daf/fin/private-pensions/institutionalinvestorsandlong-terminvestment.htm50http://www.oecd.org/daf/fin/private-pensions/Private-financing-and-government-support-to-promote-LTI-in-

infrastructure.pdf51http://www.oecd.org/daf/fin/private-pensions/OECD-Pooling-Institutional-Investors-Capital-Unlisted-Equity-

Infrastructure.pdf52http://www.oecd.org/daf/fin/private-pensions/G20reportLTFinancingForGrowthRussianPresidency2013.pdf53http://www.oecd.org/daf/fin/private-pensions/48616812.pdf

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Appendix4.BristolCommitmentsandVoicesThisisasmallsampleofthecommitmentsbydifferentfaithstothegoalsoftheSDGs,pledgedattheSeptember2015meetingFaithintheFuture,inBristol,UK.

1.Bahá’íBristolCommitmenta.BristolCommitmentAddressingtheage-oldmaladyofpovertymightwellrequiretheredistributionoffinancialassets,therefinementofsystemsoftaxation,andsimilarmeasures.Corruptionwillultimatelybeeradicatednotsolelybypenalcodesorsophisticatedtrackingsystems,butbytheestablishmentofasocietyinwhichhonestyandtrustworthinessaresociallyexpectedmoralnorms.Andgreatindeedistheresponsibilityofreligiouscommunitiestoputthesepositivevalues–theirvalues–intopractice.Theworld’sgreatreligiousteacherseachsoughttopromotehumanwell-beingandhonourandtoadvancecivilization.b.VoicesNowthatthecommunityofnationshasembracedtheSDGs,manyhavenotedthatacrucialnextchallengewillbebuildingownershipforAgenda2030amongthepeoplesofworld.Thiswillbeamatterofcommunicationandeducation,butalsooneofmotivation,volition,will,andself-discipline.Countlesspeopleinwidelydifferingcontextswillneedtotakethisagendaastheirownandmakechangesintheirthinkingandbehaviour.Anditisherethatfaithandbeliefcanbeofcentralimportance,forreligionreachestotherootsofmotivation,promptingindividualstonotjustagree,buttoariseandact.

2.BuddhistBristolCommitmenta.BristolCommitmentThefollowingcommitmentscomefromtheSriLankanBuddhistcommunityandinparticulartheSarvodayaorganization–SriLanka’slargestBuddhistsocialactionorganization,whichhasaspecificsisterorganizationdesignedtobringinvestmentfinanceintotheirsocialprogramme–seebelow.GOAL1:ENDPOVERTYINALLITSFORMSEVERYWHERESarvodaya’spriorworkrelatedtoSDGs

WayforwardwithSDGsinnext10years

Micro-financeandmicro-creditschemesforpoor

CampaignandadvocacyforaccesstobasicservicesandresourcesforallthroughSarvodaya’sparticipatorydemocracy,goodgovernanceandreconciliationprogram(Deshodaya)

Livelihoodsupportprogramsformarginalized

Dealingwithlandissuesofconflictaffectedandthird/forthgenerationsoffarmingcommunitiesinMahaweliregion–DeshodayaandSarvodayaLegalServicesMovement(SDFC-sarvodayalegal.org)

Economicassetrestorationforconflictaffected

Introduceappropriatenewtechnologiesinagriculture/smallandmediumindustries-SarvodayaInstituteofHigherLearning(SIHL)

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Economicempowermentofcommunity-basedorganisations

*Provisionofentrepreneurshipskills–SarvodayaEconomicEnterpriseDevelopmentServices(SEEDS-seeds.lk)andfinancialservices–DeshodayaDevelopmentFinanceCompany(DDFC-ddfc.lk)--Trainingfarmercommunitiesforclimaticshocksanddisasterresilience-SIHL--Advocacyforbetterpovertyalleviationstrategiesandmodels;beyondthewelfareStatemodels

b.VoicesBuddhisteconomicspromotesaspiritualapproachbyexaminingthefunctioningofthehumanmindasitsfirstprinciple.Theaimistocreateaninnerprocessthatenablesthepositivetransformationofignorance,greedandviolence–theverybasisofthecurrenteconomicmodel–intowisdom,contentmentandpeace.Theintentionistorevealwhatisharmfulandbeneficialinallhumanactivities,includingproductionandconsumption,andthussupportpeopleinmakingethicalchoices.Itstrivestowardsamiddlewayofbalancingeconomicdevelopmentandhumanvalues.Whenweunderstandwhatcreatesdesireandcravingandwhatleadstocontentment,werealisethatmerewealthcanneversatisfyus.Webecomeawareoftheimportanceofleadingasimplebutdignifiedlife.

TheBuddhisttreeordinationritualremindspeopleofthevalueofrespectforalllifeforms,includingplants,andtheneedtopreserveoursacredplanet.

Source:ParichartSuwanbubbha

Buddhisteconomicschallengesthevisionof“homoeconomicus”thatisthebasisofthecurrentcapitalisteconomicmodel:theassumptionthathumansarepurelyrationalandegoisticandwillalwaysattempttomaximisetheirprofitwithoutpangsofconscience.FromaBuddhistperspective,attributessuchasaltruismandcompassionarequalitiesofthemindthatareinnatebutneedtobediscoveredandcultivated.

3.ChurchofEnglandBristolCommitmenta.BristolCommitmentTheCofE’sChurchCommissionershavemadeamajorcommitmenttomonitorandreviewitsinvestmentsinlinewithitsrecentlyrevisedclimatechangepolicy.Changeshavealreadybeenmadetoitsportfolios,forexamplewithdrawingfromfinancecompanieswhichchargeexorbitantratesforloans;withdrawingfromcarbonfuelcompanies,whilstitalsomaintainsanactiveengagementstrategyusingstakeholderresolutionstoholdcompaniestoaccountandimprovetransparency.Forexample,divesting£9millionofhighcarbonfossilfuelsectorsharesin2015onadoptionofclimatechangepolicy–companiesinvolvedderivedmorethan10percentofrevenuesfromextractionofthermalcoalorproductionofoilfromoilsands.Togetherwithlike-mindedinvestorstheCommissionerscaninfluencethewayfossilfuelcompaniesconductthemselves.Furthermoretheycansupplyequitycapitaltocompaniesspecialisinginthetransitiontoalowcarboneconomy.Headlinesontheportfolioandengagementare:

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• £9mofhighcarbonfossilfuelsectorsharesdivestedin2015onadoptionofclimatechangepolicy-companiesinvolvedderivedmorethan10percentofrevenuesfromextractionofthermalcoalorproductionofoilfromoilsands

• £301.5minlowcarboninvestmentsatend2015–sustainablycertifiedforestry,greenofficebuildings,specialistenvironmentalmarketsfund

• Additional£323matend2015inasustainabilitythemedequitiesmandatewithGenerationInvestmentManagementco-foundedbyAlGore

• 32MWofwindonUKforestestate&planningpermissionreceivedforanew5MWsolarfarmonUKruralestate

• Shareholderresolutionsco-filedatAngloAmerican,GlencoreandRioTintofor2016AGMsrequiringenhancedclimatechangerelatedstrategyreporting,buildingonsuccessofBP&Shellresolutionsin2015.

• Theyco-filedtheirfirsteverUSshareholderresolution–aresolutionaskingExxonMobiltoreportannuallyonhowitsportfoliostresstestsina2degreesscenario.Noclimatechangeproposalhaseverreceivedmorethan35percentvotingforatExxon.Theyhopetobreachthisandsendastrongsignalonshareholders’desireforfullerreportingonclimatechangerelatedstrategyandrisk.

• Inthe2016AssetOwnerDisclosureProjectwewereratedAAAandinthetop2percentoffundsgloballyforourmanagementofclimaterisk.

Theneedtoco-operatewithothershasaspecialrelevancetotheCommissionersastheirsizeandreservesallowthemopportunitiesforpartnershipsthatmaynotbeavailabletoothers.ThisyeartheCommissionershaveadoptedanupdatedpolicyonclimatechangedrawnupbytheEthicalInvestmentAdvisoryGroup.Asaresulttheyhaveadivestmentpolicytargetedonspecificsegmentsofthefossilfuelindustryandcompaniesthatderivemorethan10percentoftheirrevenuesfromtheextractionofoilsandsorthermalcoalresultinginthesaleofsharesin13oilandminingcompanies.TheCommissionersareengagingwithseniormanagementandaskquestionsatAnnualGeneralMeetingsThisstepbystepbystepactionwillbeincreased.TheCommissionershavemadesignificantlowcarboninvestmentsincludingalargeforestryportfolio,greenofficebuildings,aninvestmentinaUSanaerobicdigestionfund,andenvironmentalinvestmentfundswhichcombinedsignificantlyexceedthevalueofinvestmentsinfossilfuelextraction.Ithasalso,withothers,madeamajorinvestmenttobuyandreviveanationalbanktoberunonethicalformat.Inadditionitsmulti-assetstrategiesandprivatecreditportfolioinvestswithmanagersoperatingallovertheworldwhosupplyfinancetocompaniesinsituationsthataretoocomplextobeofintereststothebanks.AmongstpossiblefutureinvestmentswouldbeacommitmenttofundingandnurturingawiderangeofcompaniesspecialisinginthedevelopingofcleanenergyinlinewiththeproposalsoftheApolloProgramme.54ThisfulfilsmanyoftheissuesinSDGGoal9–regardingresilientinfrastructure,promotinginclusiveandsustainableindustrializationandfosteringinnovation.

54http://cep.lse.ac.uk/pubs/download/special/Global_Apollo_Programme_Report.pdf

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b.VoicesChristiansshouldalsoaddresstheroleofentrepreneursinsocieties.Corporatesocialresponsibilityandcompliancemanagementoughttobemorethanwindow-dressing.Asocialmarketeconomyneedsentrepreneurswiththeabilitytomakeethicaljudgments.Whatshouldbedoneinconflictsofinterests?Whatdoesdecentworkmean?Thus,itisnecessarytoincludeethicalquestionsinallfieldsofeducation,especiallyineconomicandbusinessstudies.AsthePontificalCouncilofJusticeandPeacestatedin2012inVocationoftheBusinessLeader:AReflection:“Respectforhumandignityandthecommongoodarefoundationalprincipleswhichshouldinformthewayweorganisethelabourandcapitalemployed,andtheprocessesofinnovation,inamarketsystem.Thedeepandabidingpurposeofindividualbusinessesandcommercialsystemsistoaddressrealhumanneeds.”

4.IslamicBristolCommitment

(PleasealsoseeIslamicDevelopmentBank,AppendixTwo)

a.BristolCommitmentThisCommitmentcomesfromtheSupremeCouncilofKenyanMuslims(SUPKEM)StrategicObjective

VerifiableIndicatorsofAchievement

KeyActivities

KeyOutputs

1.0InitiatethreeprogrammesaimedatsustainablyimprovingtheeconomicwellbeingofdistincttargetgroupsamongtheMuslimCommunity

*Programmeconceptsincludingobjectivebaselinedata,soundrationalefortargetgroundidentification,plannedinterventionmethodologyandestimatedbudgetplusitsfunding*Enhancecapacityandskillsineconomicmanagementamongidentifiedtargetgroups.*IncreaseinnumberofMuslimtargetgroupsengagedintradeandotherincomesources*Accessibilitytocollateralforimprovingeconomicprojectsbyidentifiedtargetgroups*Improvementinhouseholdlevellivelihoodgenerationprofilesforidentifiedtargetgroups*AttainmentofpermanentpropertydeedsamongtargetgroupsinMuslimurbanandruralresidences.

*Developandimplementadvocacyprogramandsensitization/capacitybuildingtoolsoneconomicengagement*ImplementeconomicEmpowermentPrograminidentifiedtargetgroupswithpotentialforcatalyzingselfsustainingimpactontheentireMuslimCommunity*AdvocateforMuslimsettlementareaslandrightstoincludecapacitybuilding*FacilitatetheconsultationlogisticsfortheattainmentofTitleDeedsforMuslimurbanandruralresidences(inMajengo,KiberaMeru,Nyeri,Mwea,Kakamega,KenduBay,LamuandMalindi

*EconomicEmpowermentProgram*Incomegenerationevidencefromtargetgroup*AdvocacyProgramandtools*TitleDeedsattainedSecuritiesobtainedtoproperties*Livelihoodrelatedactivityrecordsamongtargetgroups

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b.VoicesToday’smonetary,financialandeconomicsystemsarebasedonthemistakennotionthatincreasedconsumptionandeconomicgrowthresultinrealhumanprosperityandmentalandphysicalwell-being.Thedesireforgoodsleadstoexcessiveconsumption,whichfuelsproductionand,inturn,rapidlydepletesresources.Tosupportthequestforeconomicgrowth,unjustandunstableglobalfinancialandmonetarysystemshavebeencreatedandmaintained.Itisclearthateconomicgrowthforitsownsake,whichdoesnotputhumanbeingsatitscentre,inevitablyleadstoprosperityforsomeandextremepovertyformany.Islamicteachingsshowclearlythathumanwell-beingdoesnotdependonmaterialwealthalone.Atthesametime,Islamencouragesthelegitimatepursuitofwealthandtheenjoymentofthebountiescreatedforhumanfulfilment,inrecognitionthatwealthisonlyonedeterminantofwellbeing.IndividualsaremerelytrusteesofthewealthbestowedonthembyAllah.Islamconsiderswealthasthelifebloodofthecommunitywhichmustbeinconstantcirculation;itspossessionthereforeexcludestherighttohoardit.Thisimpliesthatwealthmustbeinvestedtoimprovepeople’swell-being.Islamacceptsunequaldistributionofwealth,butitdoesnotallowtheexistenceofwidedisparitiesandthereforegivesthoseinextremepovertyaclearrightoverthewealthofanyonewhosewealthexceedssubsistencelevel.TheHolyQur’an(51:19)says:“Andintheirwealthwasgiventherightoftheneedyanddeprived.”Tonarrowthegapbetweentherichandthepoorandensurejustandequitabledistributionofeconomicresources,Islamprovidesasuiteofpositiveandprohibitivemeasures.Theseincludezakat–obligatoryalms-giving–andsadaqat–voluntarycharity,lawsofinheritanceandbequest,monetaryatonements,andcompulsorycontributionsintheformoftaxes.Prohibitivemeasuresincludetheabolitionofinterest,prohibitionofacquisitionofwealththroughillegalandunfairmeans,andtheprohibitionofhoardingofwealth.

JewishBristolCommitmenta.BristolCommitmentJewishgroupsinvestinginandadvocatingforrenewableformsofenergyOnewayofaddressingourownresponsibilityforclimatechangebythetimeofthe2022shmitayearwouldbeforhouseholds,congregations,denominations,andfederationstoinvestinspendingthathelpshealourplanet.TheShalomCenterandthesignatoriestoits“RabbinicLetterontheClimateCrisis”havecalledontheJewishcommunityto:purchasewind-borneorsolar-bornratherthancoal-firedelectricitytolightourhomes,synagogues,andcommunitycentres;encourageFederationstooffergrantsandloanstoallowJewishorganizationstosolarizebuildings;shiftourbankaccountsfrombanksthatinvestindeadlycarbon-burningtocommunitybanksandcreditunionsthatinvestinlocalneighborhoods,especiallythoseofpoorandminoritycommunities;moveendowmentfundsfromsupportingcarbontosupportingrenewables;insistingthatourtaxmoneynolongerbeusedtosubsidizefossilfuelbutinsteadtosubsidizetheswiftdeploymentofrenewableenergy;andmobilizingtoconvinceourlegislatorstoinstitutealegislativesolutiontotheclimatecrisis.(SDGGoals7,8,13)b.VoicesTheTorahcommandsthatJewscarefortheirfellowhumanbeings:“Youshallloveyourneighbourasyourself:IamtheLord”(Leviticus19:18).Jewsarethusinstructedtogivegenerouslytosupportfellowhumanswhoareexperiencingpoverty–withoutconsideringthesepersons’background.

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InhislandmarkcodeofJewishlaw,theFourPillars,thefourteenthcenturyEuropeanRabbiJacobbenAshertaught:

“Itisapositivecommandmenttogivecharityaccordingtoyourcapacity.Andyoumustbeverycarefulregardingthiscommandment,moresothanwithanyother

positivecommandment,foritispossibletowindupsheddingblood[byneglectingit],sinceapoorpersonmaydieifyoudonotgivehim[whatheorsheneeds]rightaway[...].Youshouldnotthink,‘HowcanIpossiblyreducemywealthbygivingtothe

poor?’Rather,youshouldunderstandthatthewealthisnotyours,butratheratrustthatyoumustusetocarryoutthewilloftheOnewhohasentrustedittoyou.AnditisthewillofthatProviderofthattrustthatyoudistributeapartofittothepoor.Indeed[thatwhichyoudistribute]isthebestpartofyourwealth,asitsays,‘Your

charitywillproceedbeforeyou’”(Isaiah58:8;Tur,YorehDe’ah§247).

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Appendix5.FurthernotesonZakat Zakat,theobligatoryMuslimtaxof2.5percentofone’swealthperyearforcharitablepurposes,isoneofthefivepillarsofIslam.Thefivepillarsarethecoreteachings,beliefsandcommitmentsthateachMuslimmustagreetoandundertake.TheyincludemakingthedeclarationoffaiththatthereisnogodbutGodandthatMuhammadishisprophet;goingonpilgrimagetoMakkah–theHajj;prayingfivetimesadayandfastingduringthemonthofRamadan.FromitsveryinceptionintheearliestdaysofIslam,ithasbeenexplicitlyintendedtoreduceinequalityandtoprovidenotjustcharitableaidbuttofundentrepreneurship,enablingpeopleandcommunitiestostandontheirowntwofeet.Itiswidelyusedinmodern,andespeciallypost-Colonial.Muslimcountriestofunddomesticdevelopmentandpoverty-reductionefforts.InsuchcasesitistreatedasaformofincometaxorwealthtaxbythenationalGovernmentandthisisseenbymanyMuslimstobeaperversionoftheoriginallocalnatureoftheroleofzakat.Thefollowingisfromthe2015GlobalHumanitarianAssistancereportAnActofFaith:HumanitarianfinancingandZakat55.Itillustratesthepossiblesizeandsignificanceofzakat.

ThereisnoreliabledatacurrentlyavailabletoshowpreciselyhowmuchZakatispaidbyMuslimsaroundtheworld,orhowitisspentglobally.YetdatawehavecollectedforIndonesia,Malaysia,Qatar,SaudiArabiaandYemen,whichmakeup17percentoftheworld’sestimatedMuslimpopulation,indicatesthatinthesecountriesaloneatleastUS$5.7billioniscurrentlycollectedinZakateachyear.WeestimatethattheglobalvolumeofZakatcollectedeachyearthroughformalmechanismsis,attheveryleast,inthetensofbillionsofdollars.IfwealsoconsiderZakatcurrentlythoughttobepaidthroughinformalmechanisms,thentheactualamountavailableislikelytobemuchhigher,andcouldpotentiallybeinthehundredsofbillionsofdollars.Bywayofcomparison,internationalhumanitarianassistancefromgovernmentandprivatedonorsin2013totalledUS$22billionwhileofficialdevelopmentassistance(ODA)frommembercountriesoftheOrganisationforEconomicCooperationandDevelopment(OECD)’sDevelopmentAssistanceCommittee(DAC)wasUS$134.8billioninthesameyear.

Ourresearchalsoshowsthatbetween23percentand57percentofZakatcurrentlycollectedisusedforhumanitarianassistance,dependingonthecontextinwhichitisraisedandused.

55http://www.globalhumanitarianassistance.org/report/humanitarian-financing-and-zakat