Article originally posted here by Christianity Today

by Christianity Today

JESSICA FRALIN

In a quiet office in San Antonio, Texas, a gong rings out. Staff members flood from their offices to clap and cheer, congratulating a client on his daughter’s graduation from college.

At PAX Financial Group, this mid-afternoon ceremony isn’t unusual. Companies define success in many ways, but PAX is dedicated to measuring hope. Because PAX, a financial planning firm, serves people, not investment portfolios, they praise what is praiseworthy in their clients’ lives, and each milestone is documented in the company’s system and observed by the ringing of the gong.

Today, the gong sounded for a father seeing a child graduate from college. Tomorrow, it could ring out to celebrate a business owner retiring well 50 years after launching. Last week, it marked one client paying off her mortgage and another client’s decision to donate six figures to worthy causes.

In an industry laser-focused on wealth accumulation, PAX is dedicated to celebrating every step of the stewardship journey. They recognize that more than leaving a legacy, clients are desperate to live one, finding ways to rejoice in today as well as prepare for tomorrow.

Like PAX, many financial institutions across the nation are turning notions of greed and gain upside down. Gospel-centered leaders of wealth-management companies are changing the financial climate and the public’s perception of it as they focus on building their clients’ lives, not just their profit margins.

Living a legacy

“Inheritance is what you leave to someone, but legacy is what you leave in someone,” says Darryl Lyons, co-founder and CEO of PAX. “Living a legacy is much more rewarding, and much more fun, than just accumulating money to leave behind.”

A commitment to generosity is revolutionizing the financial planning industry. According to cofounder Joseph Schuetze, inspiring generosity rather than simply pushing toward endless wealth accumulation allows companies to ensure that each client’s legacy when they’re gone—and their life now—will be richer. Schuetze credits C12, an organization that compels and equips Christian CEOs and business leaders to achieve excellence with eternal impact, as being a consistent driver behind these choices. He says, “C12 isn’t afraid to offer tough accountability and push you to live with high integrity.”

“It’s antithetical to this industry to convince clients to give more money away,” Schuetze explains. “We’re actually cutting into our own fees. But we are staking our claim to the ideals of the kingdom of God, not the ideals of the world of finance.” PAX goes beyond simply encouraging clients to give to charitable organizations by prompting them to actively engage with those organizations. As a result, clients see their generosity making a difference in the community. They get to live their legacies.

This is an excerpt from Faithful Investing.

by Mark A. Regier, Praxis Mutual Funds® and Everence® Financial

As we consider how investing can help shape the world around us, in a way that is pleasing to God and responsible to those around us, we’re challenged to reflect on both the “vertical” and “horizontal” natures of our faith.

The vertical dimension concerns our direct relationship with God – our desire to reflect God’s values in our worship, our thoughts, our prayers and our deeds. The horizontal aspect reflects our relationship with the individuals and communities around us, including our relationship to Creation itself.

We see this clearly in Christ’s response to a question about the greatest commandment, recorded in the Gospels of Matthew and Mark, clearly describes these two aspects of faith.

“The most important one,” answered Jesus,” is this: ‘Hear, O Israel: The Lord our God, the Lord is one. Love the Lord your God with all your heart and with all your soul and with all your mind and with all your strength.’ The second is this: ‘Love your neighbor as yourself.’ There is no commandment greater than these.” (Mark 12:29-31, NIV)

Historically, faithfulness on the vertical axis of our relationship to God has been measured through the purity of our choices, actions and thoughts – often called “holiness.” In the field of investing, holiness has often taken the form of avoidance. Religious organizations and individuals have long sought to reflect their faithfulness to God’s values by the investments they’ve rejected.

And as our world—both socially and economically—has grown more complex, however, this approach to faithfulness has become an increasing challenge. As we address modern slavery found in conflict minerals inside every cellphone and laptop, or the sweatshops hidden behind our favorite clothing brands, or the racism and sexism that can lurk within even the most respected corporations, being pure is difficult.

In addition, this vertical emphasis focuses on our own reflection of God’s purity, potentially overlooking the horizontal call to love our neighbor and other aspects of God’s Creation.

How, then, should we respond to the horizontal, reflecting the gift of life and grace from God? What is our response—through our investments–to repeated calls throughout Scripture to care for the widow and orphan, protect the weak, and minister to the poor?

Just what is required?

This question (and answer) by an Old Testament prophet in Micah is fundamental to our fullest understanding of Christian discipleship. People of faith are called to “do justice, and to love kindness and to walk humbly with your God.” (Micah 6:8, NRSV) Micah tells us that our actions and choices here on earth do matter—and we believe our investments do too.

This surprising message follows a series of questions about which offerings and sacrifices are required to bring restoration to the sinning, straying children of Israel. The questions betray a misunderstanding of God’s larger purpose, focusing on pursuing the correct ritual for the situation instead of striving for justice and kindness as they interact with others.

Many Christians have taken this call seriously – looking to their faith as a guide for their charitable giving, support for missions, choice of vocation, and the ways they relate to their families and local communities. Far fewer, however, have explored how this call to justice, kindness and a humble walk with God impacts their investment portfolio.

A lesson from the Good Samaritan

If God’s values and concerns are the objective of our investing witness, how do we measure and manage the impact our investments are having?

Authentic Christian faith requires engagement in the world, with all of its contradictions and nuances. What better example of a person trying to live faithfully in a heated political and religious setting than the Samaritan in Jesus’ familiar parable?

This parable was offered in response to a question posed to Jesus, asking, “And who is my neighbor?” It again focuses on the horizontal axis (“others”) of our relationship with God. And it is a question that remains as important today as it was then.

Found in Luke 10:25-37, this story – in its simplest form – has been baked into American culture. Many, regardless of religious background, will recognize the story of the virtuous man who helped a person in need while others passed by.

In short, the Samaritan, from an ethnic group scorned by the culture of Jesus’ audience, stopped to help a man wounded by robbers while a priest and a Levite passed him by. These holy men presumably continued on their way because touching the wounded man would have made them unclean, according to the religious rules of the day.

When Jesus flipped a question back to the questioner, asking, “Which of these three … was a neighbor to the man who fell into the hands of the robbers?” the answer was obvious: “The one who showed him mercy.” (Luke 10:36-37, NRSV)

Jesus emphasized the horizontal relationship between fellow travelers despite their different ethnicities and beliefs, and by doing so, admonished the characters who placed a higher value on their narrow understanding of what was expected of them.

We could replace any of these characters with modern stand-ins and get a similar reflective opportunity. The call, then, is to self-sacrificial action on behalf of the disadvantaged or vulnerable – a message repeated frequently throughout the New Testament. It would seem credible that a similar approach could be applied to at least a part of a mission-oriented portfolio.

With more than 2,350 references in the Bible to money and resource-related issues and it seems clear that the writers and the early church understood the power and importance of the financial aspects of our lives. And while the financial tools of our society differ greatly from those of the first century, many of the challenges remain the same.

Used by permission. Faithful Investing©2019 Church Publishing Incorporated, New York, NY 10016.

by FDI Team

While our annual conference looked a little different this year, we were blessed to have guests from around the world share their insight and encouragement with faith driven investors at every stage of life. We were challenged and empowered to think deeper about a range of investment-related topics ranging from heart posture to stewardship to measuring returns. Here are some of our top lessons and challenges from this year’s conference:

Casey Crawford FDI 2020 @caseycrawford @movementmtg @movementbank

“How is it that you would call me to steward these incredible resources that you’re entrusting to us?”

Derrick Morgan @dmorg91

“If we are good shepherds of the capital…we can make significant change.”

Craig Deall @deallo1

“We are called to be stewards of our families, of our farms, of every part of our lives.”

Chip Ingram @chipingram

“How might God use you to change a whole new paradigm so that as you build businesses, you realize this is an opportunity to give generously and invest in kingdom impact?”

Finny Kuruvilla FDI 2020 @finnykuruvilla

“By willfully becoming an owner of a company or an owner of a business, which is what investing is, you are sanctioning and benefitting from the company’s activities and practices.”

Andy Crouch FDI 2020 @ahc @praxislabs

“Redemptive investing prioritizes people over money, or deals, or transactions [and] takes responsibility for the nonfinancial outcomes of investments.”

Andy Mills FDE/FDI 2020

“When we’re deeply abiding in Christ, we have the ability to stand up, to address things going on in the world, to have an impact on the world, to be Christians who are salt and light, the way we are called to be.”

Brian Fikkert, FDI/FDE 2020

“The good life with when we use our bodies, our souls, our relationships…to fulfill our callings as priests and kings.”

Bob Doll @BobDollNuveen

“We all know academically that God owns it all. But do we behave that way?”

Aimee Minnich @aimeeminnich

“The only meaningful risk we can take is to disobey His commands or ignore His invitations.”

Jessica Kim FDE/FDI 2020

“We are missing out on a lot of amazing opportunities to build incredible, redemptive ventures because of this posturing in the beginning.”

Pete Ochs FDE/FDI 2020

“Is your purpose for being in business to maximize financial value or to be a catalyst for flourishing?”

Ron Blue FDE/FDI 2020

“We have an opportunity to speak to the wealthiest culture that has ever existed and say, ‘God’s Word works under all circumstances, for everybody, for all time.’”

Andy Crouch @ahc @praxislabs

“Look for something that is deeper, more based on the orientation of the heart, and ultimately might be more transformative than any legalistic system will be.”

Jay Hein @sagaamore04 @sagamoreInst

“We can be highly strategic, and we can experience much joy, bringing God glory by repairing our neighborhoods by smart investments.”

Chip Ingram @chipingram

“I’m going to give generously…but I want to be a part of marketplace ministries with faith-based entrepreneurs that have a kingdom mindset.”

Greg Lernihan @Lerni32

“We look through a different lens and we serve a different financial adviser.”

Jon Erwin

“Invest in people that you believe in and stories that you believe in, and ultimately voices that you want to see developed.”

Mark Sears @marksears

“Even more dangerous than sirens and temptations in the water is simply the natural current that pulls almost every business toward the worldly destination of maximizing the bottom line and shareholder value.”

Jay Hein @sagamore04 @sagamoreInst

“We have a duty of citizenship. We are called by God to various vocations to pursue ministries…we’re also called to place.”

Article originally hosted and shared with permission by The Christian Economic Forum, a global network of leaders who join together to collaborate and introduce strategic ideas for the spread of God’s economic principles and the goodness of Jesus Christ. This article was from a collection of White Papers compiled for attendees of the CEF’s Global Event.

by Matthew Raines

When former UN Secretary General Kofi Annan stepped to the stage in January 2004 to share a call to action for the global investment community to address the growing environmental, societal, and governance concerns that were interwoven into the capital markets, he began the first ripple in a wave that would grow the following year with the seminal 2005 paper, “Who Cares, Wins.” This led to the historic coming together of the heads of leading institutions from 16 countries to launch the Principles for Responsible Investment in 2006. From that point forward, the tidal wave that became ESG investing has become pervasive in all aspects of the international capital markets and continues to grow at an unprecedented rate. As momentum grows and curiosity is peaked, the question is asked: Just what is ESG investing? At the simplest of levels, ESG investing is defined as “Environmental, Social, and Governance” (ESG), and the criteria are a set of standards for a company’s operations that socially-conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

Environmental criteria may include a company’s energy use, waste, pollution, natural resource conservation, and treatment of animals. The criteria can also be used in evaluating any environmental risks a company might face and how the company is managing those risks.

Social criteria look at the company’s business relationships. This includes all relationships and qualities regarding employees, vendors, suppliers, and customers.

Governance criteria pertain to areas where investors may want to know that a company uses accurate and transparent accounting methods and that stockholders are given an opportunity to vote on important issues. They may also want assurances that companies avoid conflicts of interest in their choice of board members and any illegal practices and that they adhere to the proper use of political contributions, executive compensation, and internal controls.

While there are many offshoots to the traditional ESG ecosystem (Socially Responsible Investing, Biblically Responsible Investing, Impact Investing, Sustainable Investing, and more), we will stick to the terminology and broad application of ESG investing for the remainder of the paper.

Over the next two decades, estimates hold that nearly $30 trillion USD in wealth will transfer from the Baby Boomers, the generation of the population born between 1944 and 1964, into 2 the hands of younger generations. Many columnists, journalists, and financial experts have coined this “the great wealth transfer.” As capital flows from one hand to another, the expectation can be set that the way in which that capital is allocated will also shift over time with the transfer of wealth. Why does this matter? With the first sustainable mutual fund launched back in the 1970s, ESG investing is by no means a fresh or new idea, but the larger identifying factor is found in the chart below:

When a character in Ernest Hemingway’s The Sun Also Rises is asked how he went bankrupt, he replies, “Gradually…then suddenly.” The same can be said of how ESG investing came to be what it is today—gradually…then suddenly.

As the millennial generation has come to develop in the form of career-establishing adults, the capital that they have invested, coupled with the “great wealth transfer” noted above, has driven much of the momentum that has been seen in this movement. 76% of millennials think climate change poses a serious threat to society, based on a survey by The Harris Poll, with one-third of millennials investing exclusively in investments that take ESG factors into account. Based on the potential $30 trillion wealth transfer projected over the coming two decades, one could conservatively estimate a nearly $10-$15 trillion inflow into the ESG space. This could push Global ESG assets to nearly $50 trillion by 2025, representing more than a third of the $140.5 trillion in projected total assets under management.

With the millennial generation pushing towards this initiative, it has led a larger group of investors and the capital market ecosystem to join in the conversation. A recent survey conducted by U.S.-based investment management firm, Nuveen, noted that 89% of clients surveyed said that it is “absolutely essential for companies to actively manage against the risk of pollution, spills, and other disasters.” While much of the ESG conversations focus on climate change and the “E” component, investors are becoming more alert to the “G” role, with 91% of clients in the same Nuveen survey stating that companies need to enact more policies to make them more accountable to shareholder concerns.

Groups such as the Business Roundtable in the United States have shifted to a stakeholder value model, whereas individual companies have also stated goals in the space, including Microsoft (MSFT) announcing it would become 100% carbon-negative by 2030, remove its historical carbon emissions by 2050, and launch a $1 billion climate innovation fund.

Starbucks’ (SBUX) “new sustainability commitment” is to become resource positive in terms of carbon emissions, eliminating waste, and water usage. “By embracing a longer-term economic, equitable, and planetary value proposition for our company,” writes CEO Kevin Johnson, “we will create greater value for all stakeholders.”

As Christians, we recognize that the Gospel affects everything and that the Gospel changes everything. When we look at ESG investing, we must do so through the lens of the Gospel. As mentioned in earlier paragraphs, ESG investing has been a movement that can be distinguished by more than just morals but as one that has been observed by real dollars flowing into investments. It is a reminder as stated in Matthew 6:21: “For where your treasure is, there your heart will be also.”

The marketplace will inevitably become more mature, and with that maturity comes an opportunity for Christians to enter the public square and be a voice for the direction that this industry can take. As stated in Proverbs 1:20: “Wisdom cries aloud in the street, in the markets she raises her voice.”

How does a Christian approach ESG investing? How do we find ways to be a representative of Christ as we pursue these investments? We must first remember that in all we do, we must show our love for God by seeking His glory. As the Westminster Shorter Catechism says, “Man’s chief end is to glorify God and enjoy him forever.” Glorifying God through our investments highlights our view that the Father invites us to share in His kingdom. The Christian worldview privileges stewardship, and stewardship does look for growth, stewardship does give a privilege to investment, and stewardship does value savings and thrift. It does prioritize productivity and growth and flourishing.

The Christian is called to be salt of the earth and light of the world (Matthew 5:13-16). As salt acts to prevent decay in food, so should believers act to restrain evil on this earth—which includes doing so with our investable capital. As light illuminates a dark place, so believers should bear witness to the truth. God’s Word is the truth, and it is a public truth which is true for everyone. Christians can utilize their investments within the ESG space as an evangelical tool—one that highlights the goodness of God’s creation, our desire to worship Him in deed, and our ability to demonstrate our trust and faith in Him by way of our investment allocations. As 1 Timothy 6:17-19 states: “As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of riches, but on God, who richly provides us with everything to enjoy. They are to do good, to be rich in good works, to be generous and ready to share, thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life.”

The movement within the ESG space seems to be accelerating with the onset of COVID-19, and the greater focus on societal good and solving for injustices is poised to expand further. Christians must meet the demand for ESG with distinguished and disciplined views based on scripture. A sharper understanding is emerging as to which ESG approaches are financially, or performance, relevant and which are more focused on social objectives. Though we did not explore in any detail in this paper the topic of ratings and scoring, screening criteria, or the development of industry norms (such as the UN Sustainability Goals), these are items to investigate and understand further as you step into this space.

As we evaluate and determine various aspects of ESG investing and recognize that the secular world will continue to push and look to define this space, I am reminded of a short quote from John Bunyan’s Pilgrims Progress, “I focused on the fact that what God says is indeed best. It does not matter if all the men in the world are against it.”

by Matt Glass

We have seen the problems of our economic system and the seemingly insurmountable effects of debt and deflation that could lead to a crash (and soon). Now, let’s flip the coin and think about not the way things are but the way things are supposed to be.

This is something the Father has laid heavy on my heart in recent years. He did this through three simple questions. Let me ask you these three questions as we start to consider together what Eternal Economics should look like.
1. When we get to heaven, will you have to work for food and shelter in order to provide or survive?
2. When we get to heaven, will there be a physical currency that you will have to exchange for goods and services?
3. What would it look like for Heaven’s economy to be established on the earth today?

Now, please don’t expect me to pull out some earth-shattering theology from the Scriptures to provide evidence that answers the first two questions. But as I have meditated on these questions and on God’s Word, I have developed opinions and beliefs that match what I find in Scripture. They also match what I hear whenever I raise these two questions to others. In fact, I have yet to have someone answer yes to either of the first two questions.

A fundamental belief we gather from knowing the Father and from reading the Scriptures is that we will have abundance and not lack in heaven. People will not be providing for themselves by the sweat of their brow anymore. We relish that thought of financial freedom and of an economic model that isn’t built around accumulating a currency or even resources. Will there be gold and luxurious resources in heaven? Of course, more than we could imagine! “And the twelve gates were twelve pearls, each of the gates made of a single pearl, and the street of the city was pure gold, like transparent glass.” (Revelation 21:21)

But what is the purpose of those resources? Will they be required for basic needs? Or will they be a luxury on top of all of our needs already being provided by the Father and the heavenly system he has created? I believe it will be a luxury because all of our needs will be provided for. The dialogue I have had with many indicates that this isn’t a challenging concept to accept or believe. Most people have never thought about details until I probe, but after some questions, it is clear that they inherently believe that Heaven’s system will be provisional instead of transactional. While the first two questions incite the same answers from most people, the third question is where things diverge. Think about the question for yourself for a moment. In light of your answers to the first two questions, how would it look if Heaven’s economy were to be established on earth today? It doesn’t take long to realize that what we believe Heaven’s system will be like (as answered by the first two questions) violates everything we know and believe about how economies are supposed to function in our world, mainly in the West but worldwide. Many authoritative bodies have spent great effort teaching us (through engineered consent) to label economic ideas as Democratic or Republican, conservative or liberal, fascist or communist. As a result, our minds try to affix the proper label to any new economic idea we hear. But the new lens of these three questions has led me to consider economic ideas in a new way. And I soon realized that it is foolish for us to try to understand the economic system built by the Most High through the lenses of a system built by man.

In the Bible, we find a story in which Joshua, the leader of Israel, is on top of a mountain strategizing the nation’s next battle. A man with a drawn sword appears. Most scholars believe this was the Lord himself. Joshua asks the Lord, “Who are you for? Us or them”? He wanted to know which side the Lord was going to take. The Lord answers, “No, but I am the commander of the army of the LORD. Now have I come.”(Joshua 5:14) Even though it was abundantly clear that the Israelites were the people of the Lord, the Lord made it a point for Joshua to understand that he doesn’t come to take sides, He comes to take over. He is the King of a Kingdom that is supreme over all other kingdoms. So when he comes, he doesn’t come to fix our economy, He comes to replace it. So we must ask ourselves the question of whether we want him to come—of whether we want his Kingdom to come on earth as it is in heaven, even when it comes to economics. As we consider our own hearts, we must realize that his Kingdom may not be well received by many who are accustomed to, or even benefiting from, our current economic system. This shouldn’t be a surprise. “His ways are not our ways, His thoughts are not our thoughts.”32 “Instead, God chose things the world considers foolish in order to shame those who think they are wise. And he chose things that are powerless to shame those who are powerful.”

To gain insight into what the Kingdom’s Economy actually looks like, we have to accept that the Father’s ways could be and more than likely are completely different than ours. I encourage you to have an open, unbiased mind as we explore what the Kingdom of Heaven established on earth could look like economically.

Photo by Marta Bibi on Unsplash