The Institute for the Works of Religion, commonly known as the Vatican bank, has partnered with Morningstar to launch two new equity indexes aligned with Catholic social and ethical principles.

The collaboration marks a notable intersection between the Vatican and global financial markets. The two benchmarks — Morningstar IOR US Catholic Principles and Morningstar IOR Eurozone Catholic Principles — will each track 50 medium- and large-cap companies deemed consistent with Catholic teachings on life issues, social responsibility and environmental stewardship.

According to Morningstar, the eurozone index includes major listed companies such as ASML Holding, Deutsche Telekom and SAP among its top holdings.

The launch reflects the continued growth of values-based and socially responsible investing. Faith-aligned investment strategies have gained traction globally over the past two decades, with Catholic-focused funds already operating in the United States. Ave Maria Mutual Funds, for example, reported $3.8 billion in assets under management in 2025.

The Vatican bank’s move comes as part of a broader effort to modernise and professionalise its financial operations. The IOR has worked in recent years to rebuild its reputation after decades marked by allegations of corruption, embezzlement and money laundering.

Reforms initiated under the late Pope Francis aimed to strengthen governance, transparency and compliance standards within Vatican financial institutions.

Beyond managing accounts for Catholic institutions and clergy, the Vatican also maintains its own investment portfolio. According to its latest financial statement, the Holy See generated €38.1 million in investment profits in 2024.

By partnering with Morningstar, the Vatican bank is effectively positioning Catholic-aligned screening criteria within mainstream financial infrastructure. Rather than launching an in-house fund, the initiative provides benchmark indexes that could be used by asset managers and institutional investors seeking exposure to equities that meet defined Catholic ethical standards.