One year after the publication by the Pontifical Academy of Social Sciences of the text Mensuram Bonam, a text which is non-binding for Catholic investors, but which constitutes guidelines consistent with the faith, I would like to reflect on this text.

As just mentioned, the Mensuram Bonam document, from the Latin “good measure”, taking up the words of Jesus in the Gospel of Luke, does not have the presumption of dictating rules and obliging investors to follow indications in an unambiguous manner; Mensuram Bonam is instead a set of quotes from the Holy Scriptures and the Popes’ invitations and guidelines both for acting responsibly in finance following religious faith and for provoking reflections.

The reflections can start, for example, from the investment selection criteria, starting from the exclusion of all those economic and financial activities that are in contrast with the principles of the social teaching of the Church, such as human rights and the dignity of the human person, from which the principle of the common good derives from, which together with common interests generate solidarity and social justice; the principles of subsidiarity and inclusion of the most vulnerable people derive from the dignity of the person; finally, sensitivity towards the care of our common home and the awareness of an integral ecology arise.

But investments based only on the criterion of exclusion of economic and financial activities in conflict with Catholic principles would be based on reductive evaluations and not generative of something positive. In fact, the Mensuram Bonam document is a text that does not want to limit by excluding but instead wants to lead to the creation of opportunities for human and ecological growth, integration and commitment.
In my opinion, commitment is the spirit that Mensuram Bonam wants to inspire, the commitment to achieving positive results, not to maximize the results of investments but rather to optimize these results. In concrete terms, a screening of the securities in which someone invests is applied after having passed the necessary step of excluding securities in conflict with the faith, and then moves on to searching for the securities and investments not that maximize, that is which simply allow an investor to earn as much as possible seeking maximum profit, but which instead optimize by also generating the growth of people on this earth.
Earth that was entrusted to us not because we exploit it, but because, with a work that respects the dignity of all people, we can achieve improvement in all fields of life.
Therefore in investments, we will not look for the best companies among the virtuous ones, we will not limit ourselves to a screening based on best in class but on best effort. The positive screening achieved will be based precisely on best effort, commitment and involvement with the aim of investing in companies with which someone can have an impact. This positive impact on society, human life and ecology can be achieved first and foremost with dialogue, with a commitment to an approach towards the integrity of the human being and respect.
The best practices must then lead to a search for an improvement of conditions in the perspective of future generations with the dedication for a change by investing in the value of economic activities and counteracting the “sterility” of good theories that clash with bad practices, because investments can bring benefit or harm.

One way in which investments can bring benefits is with the social impact investment strategy or Impact Investing, which generally concerns Private Equity, Venture Capital and green infrastructure.
Impact investing is widely used by institutional Catholic investors because it aims to combat the social inequalities of the populations of the poorest and most disadvantaged areas of the world while still generating a financial return.

Mensuram Bonam raises all these thoughts for investors, not only for Catholic investors but also for those who share the values expressed in this text.
As a Catholic I believe that values are present in everyone’s consciences, as children of God and created in His image, so the choice to express and not repress the values inherent to human beings remains up to the free decision of each investor.

Michele Mifsud
Assistant Econome General of the Congregation of the Mission
Chartered Financial Consultant