According to a report by DW, Catholic institutions around the world are rethinking their financial ties to fossil fuels such as oil and gas — not just for moral reasons but also because the clean economy is increasingly the smarter bet for long-term growth.
Following Pope Francis' 2015 Laudato Si', which called for a progressive shift away from polluting fuels, at least 384 Catholic institutions have pledged to divest from dirty energy stocks. One example is Germany's Bank für Kirche und Caritas, which joined a coalition of church-backed divestment efforts in 2017. While not yet fully divested, the bank has steadily shifted its investments away from oil and gas and toward green bonds and companies committed to sustainable practices.
"We feel a strong responsibility — not only toward our customers and ourselves — to contribute to climate protection," said BKC's Tommy Piemonte.
Beyond conscientious concerns, this is also about value. As energy markets shift and environmental risks grow, companies linked with dirty energy and polluting practices are a long-term liability. Economist Claudia Kemfert of Berlin's German Institute for Economic Research noted that greener sectors such as renewable energy, electric vehicles, and green hydrogen now offer more consistent returns than oil and gas. "The financial risks occur more from being involved in fossil fuel investments," Kemfert said.
Catholic institutions such as Pax-Bank are already acting on that insight, tightening thresholds for oil, gas, and coal revenue and tracking pollution across their portfolios. Others are using shareholder engagement to pressure companies for cleaner practices, although critics argue that most oil and gas firms continue expanding their operations and don't seem to be leaning toward changing their ways.
Still, the momentum behind clean investing is clear. Schools, churches, pensions, and even hospitals are making similar shifts — not only because it's ethical but also because it makes financial sense. Individual investors can also take advantage of the profit-making potential of this changing market by investing in clean economy stocks and upgrading to a green 401(k).
With rising global temperatures threatening communities and businesses everywhere, institutions that divest from polluting industries are investing in sustainability as well as economic resilience, profit stability, and a future that is better for everyone.
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