IOR’s 2025 Sustainability Report highlights ethical investing, ESG integration, €51 million profit, staff development and sustainability.
Newsroom (28/07/2026 Gaudium Press ) The Institute for the Works of Religion (IOR) has released its 2025 Sustainability Report, outlining its continued commitment to sustainable finance, ethical investment practices and long-term value creation guided by the Church’s Social Doctrine.
According to a press release issued by the Institute, the report details the IOR’s efforts to promote a financial system that places the human person at its center, safeguards human dignity and contributes to the common good. It also documents progress made during the year in integrating environmental, social and governance (ESG) considerations across its operations.
As the only institution authorized to conduct professional financial activities within Vatican City State, the IOR serves more than 12,000 clients connected to the Catholic Church or working in its service across more than 110 countries. The Institute operates through an investment model developed over time that combines active portfolio management with close attention to clients’ investment objectives and risk profiles.
A central feature of the 2025 report is the use of a “double materiality” assessment, consistent with the approach adopted in the previous edition. The methodology is inspired by the principles of the European Corporate Sustainability Reporting Directive (CSRD) and references the Global Reporting Initiative (GRI) Standards, one of the leading international frameworks for sustainability reporting.
This framework is reflected in the Institute’s investment policy, which seeks both to preserve and grow client assets and to ensure that investments remain aligned with Catholic ethical principles. As a result, the IOR excludes financial instruments linked to companies involved in activities considered harmful to human life, society, the environment or standards of good governance.
The report indicates that all Asset Management products remained fully compliant with Catholic ethical principles throughout 2025 while delivering positive gross returns. Financially, the Institute reported a significant increase in value creation, generating €67.6 million in economic value during the year, compared with €50 million in 2024. Net profit reached €51 million.
The distribution of this value reflects the Institute’s stated mission and stakeholder focus. Thirty-six percent of the value created was allocated to the Holy Father, while 23% went to employees and 14% to suppliers. The remaining share was retained to strengthen the Institute’s capital base, supporting its long-term stability and sustainability.
Beyond its direct financial performance, the management of entrusted assets generated approximately €142.5 million in value, further supporting the IOR’s mission in service of the universal Church.
The Sustainability Report also emphasizes investment in human capital. During 2025, employees completed more than 2,700 hours of technical and specialist training. This included over 300 hours dedicated to compliance, risk management and audit functions, as well as religious formation programs.
The Institute expanded its efforts to promote responsible financial practices among clients as well. Its structured financial education program continued throughout the year, reaching approximately 300 clients and encouraging a financial culture rooted in Catholic ethical principles and social responsibility.
Environmental stewardship remains another key pillar of the Institute’s sustainability strategy. According to the report, the IOR continued to reduce its environmental footprint through energy-efficiency measures, the use of renewable energy sources and initiatives aimed at lowering the consumption of raw materials.
The Institute also accelerated its digital transformation efforts. Ongoing development of the IORPortal online banking service, combined with the complete digitalization of archived documents, contributed to significant reductions in paper use and resource consumption.
As a result of these measures, paper purchases fell by 37% during the year. The report further notes that all waste generated by the Institute was directed to recovery processes, reinforcing its commitment to responsible resource management.
With the publication of the 2025 Sustainability Report, the IOR presents a model that seeks to combine financial performance with ethical responsibility. By integrating ESG principles, investing in personnel development, pursuing environmental improvements and maintaining investment practices aligned with Catholic teaching, the Institute says it remains focused on creating sustainable long-term value while serving the broader mission of the Church and the common good.
- Raju Hasmukh with files from Vatican News
