The Institute for the Works of Religion (IOR), better known as the “Vatican Bank,” is completing its transformation. In February 2026, the institution took a historic step by launching its own ethical stock market indices.
Prudence does not preclude performance, especially when it comes to papal finances.
On February 10, in collaboration with the financial analysis giant Morningstar, the IOR unveiled two new benchmark indices: the Morningstar IOR Eurozone Catholic Principles and the Morningstar IOR US Catholic Principles.
The goal?
To provide a compass for Catholic investors worldwide to invest their capital in strict accordance with the Church’s social doctrine.
Vatican Coffers Under Scrutiny
Gone are the days when Vatican funds could, through the complex interplay of portfolios, become indirectly linked to controversial industries.
The new framework imposes absolutely rigorous Catholic filters.
Thus, the following are systematically excluded from these indices: any company linked to abortion or embryonic stem cell research; pornography, child labor, and arms industries; not to mention polluting companies that do not comply with the criteria of the encyclical Laudato si': Pope Francis has been instrumental in this.
As Giovanni Boscia, Chief Financial Officer of the IOR, emphasized, the idea is not simply to exclude "evil," but to actively promote companies that generate a positive social impact.
Leo XIV in Search of Transparency
This financial evolution bears the mark of Pope Leo XIV. Elected in May 2025, Robert Francis Prevost - the first pontiff of American origin with strong Peruvian ties - has made financial transparency his priority.
Known for his pragmatic approach, the Pope understood that to convey a credible message of social justice, the Vatican had to be beyond reproach in managing its own funds.
Under his leadership, the IOR (Institute for Religious Works) is no longer merely an internal bank, but aims to become a model for global finance.
By partnering with Morningstar, the Holy See hopes to gain technical credibility in international markets.
Leo XIV seems intent on demonstrating that ethics are not an obstacle to profitability, but a guarantee of sustainability in an increasingly volatile economic world.
A Message to Global Markets
The message sent to the financial centers of New York, London, and Paris is clear: the Vatican is no longer content with simply praying for the poor; it is using the lever of capitalism to influence economic structures.
By directing billions of euros toward ethical investments, the Holy See hopes to create a ripple effect.
Admittedly, some financial purists might scoff at the idea of the Church acting as a broker. But given the rate at which ESG (Environmental, Social, and Governance) funds are growing, the IOR's initiative appears as a visionary anticipation.
In 2026, while money may be odorless, a portfolio must have one: the strong leather of a conscience enlightened by the principles of faith.