Gen Z begins to practice biblically responsible investing

Biblically responsible investing (BRI) is a growing niche among investors, and you can thank Generation Z for that.

At The Economist Investing for Impact Conference in New York City Feb. 13, Assistant Professor of Finance Dwayne Safer participated in a panel titled “Impact for the Next Generation,” which focused on how the investing landscape has changed as Gen Z drives new behaviors.

“My thoughts on the panel were about how Gen Z approaches life more holistically and seeks to drive impact in all areas of their lives, i.e. their jobs, their personal time and the alignment of their investment portfolio with their values, beliefs and desired impact,” said Safer. “Gen Z is a generation that understands that equity ownership confers ethical responsibility.”

Studies show that, compared to preceding generations, a larger percent of Gen Z attends weekly religious services and possesses a faith in God.

The conference’s theme centered on the growth and increasing popularity of the ESG (environmental, social and governance) and SRI (socially responsible investing) movement, which now has reached $12 trillion in investable assets in the U.S. and $31 trillion globally.

“My other main area of discussion was around faith-based investing, which is the fastest growing segment in the larger ESG investing movement,” he said. “Faith-based investing is not so much about screening out the companies that are participating in negative activities as much as it is investing in companies that are promoting human flourishing and positive outcomes for all stakeholders.”

The concept of faith-based and biblically responsible investing can be traced back to John Wesley, the founder of the Methodist movement, in his 18th-century sermon, “The Use of Money.” BRI became more popular recently after an October 2019 Wall Street Journal article on the topic. 

 “BRI is becoming increasingly popular as the overall SRI/ESG space grows,” said Safer, “and faith-driven investors desire to align their investment choices to biblical values in acknowledgement that all of the resources we possess are from God and therefore we should be good stewards of our financial resources.”

— Anna Seip