Since the publication of the Church of Sweden (Svenska kyrkan) guidelines on faith-consistent investing at Zug, Switzerland, in 2017, we’ve taken a special interest in the efforts and activities of the Church as they align their investments with their faith values. (The Zug Guidelines encouraged faith communities to use their resources to drive positive environmental and social change).
As a pioneering member of the global faith-based investing movement, the Church of Sweden has consistently demonstrated leadership in ethical stewardship, sustainability, and social justice.
The Church and the forest
It is because of this, that we were particularly interested in its recent efforts to redefine the Church’s forestry management practices, detailed in the recently published report Kyrkan och skogen:Ansvar, handling och hopp (translated as The Church and the Forest: Responsibility, Action, and Hope). The report offers valuable insights for other faith-consistent investors with investments in forestry, or who manage forestry as part of their land asset portfolio.
Forestry investments in Europe represent a significant and growing sector, driven by the increasing demand for sustainable timber, carbon sequestration, and biodiversity conservation. The European forestry market, for example, is projected to reach a volume of approximately USD 155.8 billion by 2029, with an expected compound annual growth rate of 2.64% from 2024 to 2029.
The report followed a recent inquiry into the management of the Church's SEK 43 billion in forest and land assets which resulted in proposals to integrate ecological, social, spiritual, and economic sustainability into its operations. This revenue was historically set aside for the livelihood of local clergy.
Care for creation
The primary objective of the Church of Sweden's inquiry was to reassess how the Church aligns its duty to care for creation with the need to generate revenue for its mission. The inquiry aimed to establish a new equilibrium in asset management, giving greater emphasis to climate considerations, biodiversity, and the relationship with the Sámi people and reindeer husbandry, all within a holistic framework.
The proposals present a new balance that, in addition to ensuring the long-term financial stability of the Church, considers various interests, including the perspective of children.
The inquiry found that the Church’s current forestry practices, though economically focused, were insufficiently aligned with climate and biodiversity goals. The overreliance on revenue generation often conflicted with ecological and spiritual sustainability.
Several management recommendations were made for enhancing the potential of this land asset to combat climate change and improve biodiversity. The Church also recognised the need to respect indigenous rights by adapting forestry practices to support reindeer husbandry and protect sacred Sámi lands. This includes fostering co-management with local indigenous communities and excluding certain sacred sites from forestry activities.
Proposed new framework
The proposed framework for the Church includes new objectives for forest management which seek to balance values, biodiversity, climate benefits, and economic returns by categorising forest land according to objectives of the purpose of that land (eg, carbon sequestration, economic return, husbandry).
To accommodate local parishes who experience financial losses as a result, the inquiry recommends a sustainability fee and targeted grants to compensate for reduced income during the transition to sustainable practices. Also recommended is improved public reporting by the Church, to build trust.
Alignment with FCI principles
The Church of Sweden’s approach resonates well with faith-consistent investing principles. By addressing the ecological, spiritual, and social dimensions of sustainability and recognising its responsibility as a major landowner, the Church sets an example of aligning assets with faith values.
The Church’s collaboration with Sámi communities highlights the importance of respecting cultural and spiritual traditions in resource management – an important consideration for faith-based investors engaging with global projects. Finally, the shift from short-term revenue focus to long-term ecological and economic resilience mirrors the principles of patient capital in faith-consistent investing.
The Church of Sweden’s forestry management strategy also demonstrates how faith-based organisations can lead the way in addressing global challenges by aligning portfolios with values of stewardship and care for creation and by advocating for sustainable practices in industries reliant on natural resources.
If this resonates with you and your faith-based organisation, contact us directly to find out how we can support your organisation to become more faith-aligned in your investment portfolio at info@faithinvest.org.