Destroying the Environment Cannot Build Your Portfolio
“Caring for ecosystems demands far-sightedness, since no one looking for quick and easy profit is truly interested in their preservation. But the cost of the damage caused by such selfish lack of concern is much greater than the economic benefits to be obtained.” – Laudato si’, no. 36
That Christians ought to care for the environment is nothing new. In the very beginning, God placed Adam in the Garden of Eden to work and take care of it. While many years have passed, man’s duty to be a good steward of creation has not changed. Modern economies and new technological developments can put immense strain on the environment.
From an economic point of view, long-term ecological destruction is simply a bad investment.
Ultimately, what the Church is asking investors to do is avoid investing in companies that permanently harm the environment. This suggests clear cutting the Brazilian rainforest like in the1990s. While there may have been short-term profits, they came at the cost of long-lasting, irreversible damage to the ecosystem. The Church adds a caveat that companies that are working to remediate damage they have caused are legitimate investment options.
Helping to Restore Creation
While we cannot make all things new, we are able to repair some damage. The USCCB guidelines direct investors to avoid investing in companies that have caused specific instances of biodiversity loss and to work to change corporate policies to include protections for the environment. We uphold this directive by undertaking advocacy initiatives to influence corporate leadership. These efforts are already bearing fruit.
Among other things, we’ve managed to get a gold mining company to address issues its operations have caused in Peru and a steel manufacturer to cease purchasing charcoal made from rainforest slash and burn operations. As faithful Catholic investors, we can have a major impact on world affairs and the world itself.