The backlash against ESG (Environmental, Social, and Governance) investing continues, leading some investors to inquire about how the Inspire Impact Score methodology of faith-based investing is the same or different than ESG. While ESG investing has been celebrated by investors with certain worldviews, a biblically informed examination reveals significant concerns that have led to societal harm and compromise deeply held values. In contrast, the Inspire Impact Score offers a biblically responsible approach that aligns with Christian principles, promoting true societal well-being that glorifies God. Here are seven critical ways the Inspire Impact Score differs from ESG and why investors should consider Biblically Responsible Investing.
ESG Supports Abortion: ESG investing often favors companies that support or provide abortion services, aligning with a broader secular agenda that views abortion as a right.
Inspire Impact Score Excludes Abortion: The Inspire Impact Score methodology firmly excludes companies involved in abortion. By doing so, it upholds the sanctity of life and seeks investments that do not profit from or promote practices that are contrary to biblical teachings. For investors who believe in the inherent value of every human life, this distinction is paramount.
ESG Supports CRT: ESG frameworks often endorse Critical Race Theory, which can promote divisive narratives and societal discord.
Inspire Investing Opposes CRT: Inspire Investing opposes CRT, instead encouraging investments in companies that promote unity and equality based on biblical principles. We believe this approach fosters a more harmonious and just society, aligning with the biblical mandate to love and respect all individuals made in the image of God.
ESG Supports DEI: ESG investing typically supports DEI initiatives that may prioritize demographic quotas over merit and qualifications, leading to potential unfairness and resentment.
Inspire Investing Opposes DEI: Inspire Investing opposes DEI practices that undermine true equality. Instead, it supports policies that recognize individual merit and uphold the dignity of every person, promoting a fair and just workplace environment.
ESG Encourages LGBT Activism: ESG criteria often encourage and support LGBT activism, which conflicts with traditional Christian beliefs.
Inspire Impact Score Opposes LGBT Activism: The Inspire Impact Score methodology excludes companies that actively promote LGBT ideology, instead seeking investments that align with biblical teachings on sexuality and marriage. This approach respects the sanctity of biblical values while promoting love and respect for all individuals.
ESG Excludes Weaponry: ESG investing typically excludes companies involved in the weaponry and defense sectors, often without considering the nuanced role these industries play in maintaining peace and security.
Inspire Impact Score Does Not Exclude Weaponry: While Inspire’s exchange traded funds (ETFs) avoid investments in certain types of military weaponry, the Inspire Impact Score recognizes the importance of a balanced approach. While promoting peace, it does not categorically exclude companies in the defense sector, understanding the critical role they play in protecting nations and preserving freedom.
ESG Excludes Oil Industry: ESG frameworks frequently exclude investments in the oil industry, driven by dubious environmental concerns, which can lead to economic instability and higher energy costs.
Inspire Impact Score Does Not Exclude Oil Industry: The Inspire Impact Score does not exclude the oil industry, recognizing its vital role in the global economy and the livelihoods it supports. This balanced perspective ensures that investments contribute to economic stability and responsible stewardship of natural resources.
ESG Antagonistic Toward Religious Freedoms: ESG criteria can often be antagonistic toward religious freedoms in the workplace, pushing policies that marginalize individuals who express their faith.
Inspire Investing Supports Religious Freedom: Inspire Investing actively supports religious freedom in the workplace, promoting environments where individuals can freely express their faith without fear of discrimination or retribution. This commitment to religious liberty ensures that investments align with the core Christian value of respecting and protecting freedom of belief.
In conclusion, while some tout ESG investing as a noble choice, its support for practices that conflict with biblical values and its harm of societal well-being make it an impossible choice for faith-based investors and others with traditional, conservative beliefs. The Inspire Impact Score is committed to biblical principles and offers a clear, ethically sound alternative. We believe that good returns and good values are not mutually exclusive. By choosing Biblically Responsible Investing, investors can align their financial decisions to honor God, promote true societal good, and pursue quality financial returns.
Billions of dollars are flowing out of secular investments and into the Biblically Responsible Investing movement, sending a powerful message to Wall Street and major corporations around the world. The backlash against ESG is adding fuel to that fire.
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Robert Netzly is the CEO of Inspire Investing and frequent contributor on FOX, Bloomberg, New York Times and other major media. Read more from Robert in his #1 bestselling book Biblically Responsible Investing, available at Amazon.com and other major retailers.
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