IOR’s sustainability report highlights high transparency standards

Vatican News

The Institution for Works of Religion (IOR) has raised its transparency standards by releasing the first edition of its Sustainability Report—prepared with specific reference to environmental, social, and governance (ESG) risks—and its first disclosure equivalent to the Third Pillar (“Pillar III”) of the Basel III framework. Through these two publications, the IOR aligns itself with the highest international reporting principles expected of financial institutions, providing information on its capital adequacy, risk exposures, and the characteristics of its systems for identifying, measuring, and managing risks.

Toward a sustainable economic model

With the Sustainability Report, the IOR outlines its progress toward a sustainable economic model consistent with Catholic ethical principles. Specifically, the institution developed a “double materiality” matrix to identify its most relevant sustainability topics—drawing inspiration from the EU Corporate Sustainability Reporting Directive (CSRD)—and reported on those topics using GRI Standards. The IOR’s mission is pursued through responsible investments aligned with Catholic principles, through integrity in conduct, and through awareness of its responsibilities in protecting the environment and supporting social development.

Full compliance with Catholic ethics

In 2024, the IOR continued to direct its operations toward optimising returns while fully adhering to Catholic ethical guidelines, excluding investments in companies involved in activities considered harmful to human life, the environment, or society. All managed portfolio products were fully compliant with the institution’s ethical-Catholic criteria, reflecting a disciplined investment process consistent with its mission.

With a net income of €31 million, the IOR generated a total economic value of €50 million, allocated among the Pope (27%), employees (30%), and suppliers (18%), with the remaining portion retained to ensure long-term sustainability. Through the management of client assets, the institution also created €157 million in value, strengthening its dual social and financial roles: supporting the Universal Church and preserving the value of entrusted assets.

Financial education and literacy

Support for the Church also includes promoting financial education and literacy. During the year, the IOR organised six training days for more than 200 clients—primarily religious congregations—receiving highly positive feedback. The IOR also invests in staff training to ensure conduct that is consistently correct, ethical, and aligned with institutional values. In 2024, staff received 1,060 hours of training on ethical and religious topics and 1,570 hours on subjects including anti-money laundering, security and operational continuity, finance, sustainability, and compliance.

Positive assessments from Moneyval

Over the years, the institution has strengthened its systems for preventing corruption, money laundering, and terrorist financing, in accordance with Vatican and international standards, and has received positive evaluations from Moneyval. It is also compliant with international tax standards, including FATCA and the tax agreement with Italy. Regarding cybersecurity, the IOR has adopted an Information Security Policy that defines principles, responsibilities, and measures to protect technological assets, sensitive data, and client privacy. This policy draws on ISO 31000, 27001, and 27005, and includes guidelines on operational continuity to support service resilience.

Ecological transition

Finally, the institution is continuing its digitalisation and ecological transition initiatives, aimed at reducing consumption and environmental impact. In 2024, document dematerialisation reduced paper use by 20% compared with the previous year, and 98.9% of the energy consumed came from renewable sources. Taken together, these actions demonstrate the IOR’s commitment to sustainable finance grounded in Catholic ethics and oriented toward the care of Creation.