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Frequently Asked Questions 1. What is the definition of a good investment? What is 3iG’s role in the world of investing? 2. Surely the faiths are already investing in ethical ways? 3. But there are already ethical investment bodies. What does 3iG add? 4. Does a faith group lose control of its portfolio in working with 3iG? 5. But surely different faiths don't think about things in the same way? 11. What further services might 3iG offer in the future? 12. What have people said about 3iG? 13. Who should partner with 3iG? 14. What should I do if I would like to know more or I am interested in my organization joining 3iG? 1. What is the definition of a good investment? What is 3iG’s role in the world of investing? In the business world it tends to be a financial investment that makes a good profit. In the religious world it tends to be an investment of time or donations that help make the world a better place for individuals and communities. 3iG (The International Interfaith Investment Group) is an initiative by the world's faiths to work together to invest their financial assets, land assets, educational and media networks in ways that bring in high returns, both financially and socially, in line with the values of each faith. It is about earning money from money, and putting religious teachings into practice at the same time. 2. Surely the faiths are already investing in ethical ways? It is true that many religious investors have strict rules about what they do not invest in – companies dealing in arms, tobacco, alcohol, gambling, and cruelty to animals or pornography do not usually appear on religious portfolios. But pro-active investment – with the positive intention of using funds to make the world a brighter place – is still a relatively new concept in the world of religious investing. Some religious fund managers – particularly in the United States – have been investing in this area for some years. They are willing to share that expertise because they recognize that alone they are small; together they could be a powerful force for good. 3. But there are already ethical investment bodies. What does 3iG add? There are already several national ethical investment bodies – which mainly involve Christian or Jewish investors. Indeed the Interfaith Center for Corporate Responsibility (ICCR) in the United States is an important model for 3iG and has been running successfully with 275 faith group members for more than 30 years. But 3iG is the first large-scale international interfaith ethical investment group. Financial capital is increasingly mobile across borders: socially responsible investment needs to be international as well. 4. Does a faith group lose control of its portfolio in working with 3iG? On the contrary, it means that religions have even more control of their portfolios. Because they have access to more information, and to a huge network of people thinking in similar ways. In 3iG religious investors only share as much about their investments as they are prepared to. 3iG is not necessarily about changing investment portfolios. It also sometimes asks faith groups to use the rights associated with shared ownership to voice concerns directly with company directors and senior management. 5. But surely different faiths don't think about things in the same way? This is the strength of 3iG. It is not an interfaith body but a group which works with all faiths and networks between them when appropriate. It does not require or even desire any kind of consensus beyond the simple Mission Statement. Instead its investors operate in 'cluster groups' of shared interests. 3iG's founding members are Buddhist, Christian, Druze, Jewish, Hindu, Muslim, Sikh and Zoroastrian. The group has emerged since 2001 from work undertaken by the faiths assisted by the Alliance of Religions and Conservation (ARC) in association with the Interfaith Center for Corporate Responsibility (ICCR) and secular bodies ranging from major banks to investment advisory groups. Only faith organizations can be full members. They can elect a Governing Board, which is the main decision-making body of 3iG and is made up only of full members. 3iG seeks a wide and varied participation from faith groups committed to the principle of faith-based and socially responsible investments. 3iG’s membership structure encourages as many groups as possible to be part of 3iG and commit to the principle of faith-based and socially responsible investments for their own funds and the funds of their grassroots members. 3iG aims to be inclusive to religious groups, welcoming various local faith organizations, (dioceses of individual congregations or faith-based institutions such as colleges or madrassahs). 3iG is open to membership from groups such as religious charitable foundations, which resonate with the goals of 3iG. There is an other way to participate in 3iG: Associate Membership: There is no membership fee. Members engage by showing transparency and progress in the field of faith-consistent investment, opening doors to potential new 3iGmembers, and providing support to 3iG, either in the form of donations, project funding or via in-kind support. 9. Isn't all this talk about money and financial returns rather against the underlying philosophy of religions? In some countries religious organizations are among the biggest employers. They need to pay not only for salaries but also for the upkeep of thousands of historic buildings, the maintenance of land and forests, the building and management of vast suburbs of social housing, and the running of schools and colleges. To do this they need income, and for many religions a financial portfolio is the main way of earning that. In the words of a fund manager for a religious pension fund: 'I have a duty to the faith to be ethical: but I also have a duty to the pensioners to make sure they are looked after in their old age.' 3iG takes very seriously the concept of responsibilities of the faith's financial trustees to steward money effectively. 3iG acts like a clearing house for information and networking about best practice in socially responsible investing (SRI). As a member of 3iG you have access to an extraordinarily wide range of expertise from all over the world. The information comes from the faiths themselves, from secular partners, and from other groups who are exploring these issues. You will in the future have access to an increasingly useful database of fund-managers, together with their recent record in the area of SRI. There are a few national databases with this information in countries like the US, but nothing like this on a global basis. If you tend to hold your assets in grouped funds, such as open-ended investment companies or unit trusts, then you will be able to find funds that will meet your social objectives as well as financial objectives. You will also be able to use your proxy vote on key issues. One of the ultimate goals of 3iG is its dealing with 'businesses' that have huge congregations. One of the aspects of joining 3iG is encouraging what has been called the 'cascade effect'. Over time, 3iG member faiths will pass on information, teachings and guidance to their followings on the broad theme of ethical investment in line with the faith's own position. So in churches, temples, mosques, synagogues and other places of worship the faithful will be encouraged to look at their own personal investments, and assess whether they are making the best possible returns. The potential impact can be huge: a major church in the US with an estimated 5 million members with average investment savings of $50,000 would create an ethical investment potential of $250 billion. Such investment potential could mean that companies around the world would not be able to afford to be unethical because that would no longer make business sense. 11. What further services might 3iG offer in the future? 3iG is a new organization, gathering members and expertise. In the future it is hoped that it will provide: • FCI Educational Services/Fund managers training 12. What have people said about 3iG? 'Religious institutions must examine their use of land and buildings and – yes – investments, to insure that they do not harm the environment or the human family but rather improve our natural surroundings and the conditions of our lives. And we must seek ways to go about this that go beyond pronouncements, speeches and books, as important as these can be.' Ecumenical Patriarch of Constantinople 'The active engagement of the faiths in investing
in a better, sustainable future could be
one of the most
important
social
and spiritual movements
of this century.' '3iG will affirm much-needed friendships and understandings across cultures. It is only too easy to see how much more necessary this work and its success becomes every year – indeed every month – that passes.' Prince El Hassan Bin Talal of Jordan 13. Who should partner with 3iG? There are numerous groups who would experience a mutually supportive partnership with 3iG – pension funds, foundations and large private foundations which struggle with similar issues: what long term investments are the most sustainable? Foundations and large religious groups are often motivated in their investing by a common goal of improving the world but are challenged by the investments required to generate the income needed to affect that change. At 3iG, such groups will find 'kindred spirits' in investing and will be supported and challenged by working together. 14. What should I do if I would like to know more or I am interested in my organization joining 3iG? For further information on the work of 3iG, please e-mail one of the central team members in Europe at info@3ignet.org
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