FFV® Screening Methodology

San Juan de Gaztelugatxe, Spain

Proprietary Data.
Rigorous Process.

Launched in 2006, the Faith & Family Values (FFV) Scorecard® is a turnkey set of 21 business involvement screens rooted in the Catholic tradition. Our objective is to make Catholic values investing easier and more accessible for all faith-informed market participants.

The FFV Scorecard® draws from Church doctrine, encyclicals, social teaching, and the U.S. Conference of Catholic Bishops’ (USCCB) landmark Socially Responsible Investment Guidelines — first published in 2003 and later updated in 2021.

To reflect the dynamic needs of Catholic investors and incorporate our latest research, we review and update the FFV Scorecard® annually while maintaining its core structure:

Protecting Human Life

In the Catholic tradition, the most fundamental right is life itself. Each distinct soul is considered sacred from conception until natural death. Putting this reality into action, the FFV Scorecard® includes five screens dedicated to protecting human life by tracking company involvement in activities that threaten this most fundamental right.

These screens include:

  • USCCCB 2021 SRI Guidelines, Policy I.1; Catechism of the Catholic Church [CCC], no. 2271

    IWP Capital’s Abortion screen identifies companies, acute care facilities, and surgical centers that provide abortion services or procedures, manufacture abortifacients, or have significant ownership in any such activity that results in the induced termination of a human pregnancy. Acute care facilities include specialized abortion clinics, nonspecialized clinics, hospitals, and physicians’ offices. Significant ownership is defined as holding 10% or more of total company shares. Insurance companies required by law to cover abortion services and companies that offer abortion-related travel allowances to their employees are not included in this screen.

    Subscreens include: (1) abortifacients, (2) abortion providers, and (3) acute care facilities.

  • USCCB 2021 SRI Guidelines, Policy I. 3; CCC, no. 2376-2378

    IWP Capital’s Artificial Reproduction screen examines companies that provide in vitro fertilization services, embryo testing, and/or storage of human reproductive materials. Companies that provide in vitro fertilization include hospitals, fertility clinics, and other settings that perform egg retrieval, fertilization, and embryo, egg, or sperm transfer procedures. Companies involved in embryo testing conduct genetic or any other type of testing on embryos with the end purpose of identifying which embryos will be utilized in assisted reproduction treatment and which embryos will be disposed. Companies offering human reproductive material storage store or bank human embryos, sperm, or eggs for future use or testing. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in another company participating in these activities will also fail this screen.

    Subscreens include: (1) in vitro fertilization, (2) embryonic testing, and (3) human embryonic material storage.

  • USCCCB 2021 SRI Guidelines, Policy I. 1; CCC, no. 2276-2277; 2679

    IWP Capital’s Euthanasia and Physician Assisted Suicide screen tracks companies involved in the production of devices or substances specifically intended for the voluntary, non-voluntary, or involuntary termination of lives of handicapped, sick, or dying persons (CCC, no. 2277). Voluntary euthanasia is when the person who is dying consents to terminating his or her own life. Non-voluntary euthanasia is when consent cannot be given due to incapacitation. Involuntary euthanasia occurs when consent is denied. Specifically intended means produced and/or marketed for the specific purpose of euthanizing a human being or a physician assisted suicide. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in another company participating in these activities will also fail this screen.

    Subscreens include: (1) in vitro fertilization, (2) embryo testing, and (3) human reproductive material storage.

  • USCCB 2021 SRI Guidelines, Policy I.4; CCC, no. 2376-2378

    IWP Capital’s Human Embryonic Stem Cells and Fetal Tissue screen names companies that collect, sell, and/or use cells or cell lines sourced from a human embryo or human fetus. A company with an explicit corporate policy that permits the usage of such cells in research and development, whether the company conducts such research in practice or not, fails this screen. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in another company participating in these activities will also fail this screen. Adult stem cells, stem cells derived from umbilical cords, or enabling technologies are not tracked under this screen. An enabling technology is defined as laboratory equipment or medical supplies used for research purposes.

  • USCCB 2021 SRI Guidelines, Policy I.5

    IWP Capital’s Human Cloning screen identifies companies engaged in scientific research whose purpose is the cloning of human beings.3 Companies with significant ownership, defined as owning 10 percent of the ownership interests, in another company participating in this activity will also fail this screen.

PROMOTING HUMAN DIGNITY

Catholics believe that human dignity results from the image of God that each person bears.

IWP Capital has incorporated the following screens into the FFV Scorecard®:

  • USCCB 2021 SRI Guidelines, Policy II. 1

    IWP Capital’s Private Prisons screen tracks companies that own, manage, or operate private for-prof-it prisons. Private Prisons are defined as correctional facilities not managed by government agencies. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in another company participating in these activities will also fail this screen. IWP Capital developed this screen in response to persistent allegations of human rights abuses, physical and sexual assault, denial of medical care, substandard services, and inexperienced staff plaguing the for-profit prison industry as detailed in a 2016 U.S. Department of Justice Report. Moreover, private prisons earn revenue based on the number of prisoners housed in a facility, thereby rendering each prisoner into a product, a commodity, and offering little regard to their human dignity.

  • USCCB 2021 SRI Guidelines, Policy II. 6; CCC, no. 2354

    IWP Capital’s Adult Entertainment screen identifies companies involved in the production of pornographic materials or have a significant ownership stake in such activities. Significant ownership is de-fined as owning 10% or more of a company’s ownership shares. Pornographic materials include but are not limited to print or digital media that depicts sexually explicit images, content rated NC-17 by FCC or MPA, content rated AO by the ESRB, full nude live performances, burlesque shows, peep shows, strip clubs or gentlemen’s clubs, and/or web-cam solicitation sites. Content that is clearly educational, medical, scientific, or artistic is not included in the screen.

  • USCCB 2021 SRI Guidelines, Policy II. 8; CCC, no. 364, 1907, 2297, 2333, 2393, 2521-2523

    IWP Capital's Sex Reassignment Treatments screen identifies companies, namely hospitals and clinics, that perform sex reassignment surgeries or prescribe hormone therapies specifically marketed for the purpose of altering one’s biological sex. Sex reassignment surgeries under this screen include phalloplasties, metoidioplasties, valvopathies, vaginectomies or other operations to physically change one’s sex (“bottom” surgeries). Companies with significant ownership, defined as owning 10 percent of the ownership interests, in another company participating in these activities will also fail this screen.

  • USCCB 2021 SRI Guidelines, Policy II. 11; CCC, no. 2370, 2399

    IWP Capital’s Contraceptives screen examines companies that manufacture contraceptives or derive more than 10% of their revenues from the sale of contraceptives, namely distributors and retailers. Contraceptives are defined as devices or substances used to prevent conception, including but not limited to oral hormonal pills, diaphragms, intrauterine devices (IUDs), condoms, implantable rods, and “Plan B”. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in another company participating in these activities will also fail this screen.

    Subscreens include: (1) contraceptive production and (2) contraceptive sales > 10% of revenue.

ENHANCING THE COMMON GOOD

If all individuals are sanctified as bearers of God’s Image, it is both the goal and duty of every Catholic to enact Christ’s command to “Love thy neighbor” (Mark 12:31). In choosing to love our neighbors, we will their good by working toward the common good. Coming out of the Second Vatican Council, Gaudium et Spes (“Joy and Hope”) no. 26 defines the common good as “the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment.”

The FFV Scorecard® incorporates six screens aimed at reducing addictive materials, harmful habitual behaviors, and arms production from investor portfolios so that their capital may work to enhance the common good of all. The six screens include:

  • USCCB 2021 SRI Guidelines, Policy III. 1; CCC, no. 2314

    IWP Capital’s Controversial Weapons screen flags companies involved in the manufacturing or distribution of weapons inconsistent with the Catholic Church’s teaching on war. Such weapons include but are not limited to anti-personnel landmines, biological and chemical weapons, cluster munitions, depleted uranium, nuclear weapons, their inputs, and specialized vehicles of delivery. Any company having a significant ownership stake in such activities will likewise be recommended for divestment under the Controversial Weapons screen. Significant ownership is defined as owning 10% or more of the involved company’s ownership shares.

  • USCCB 2021 SRI Guidelines, Policy III. 2; CCC, no. 2263-2264

    IWP Capital’s Civilian Firearms screen flags companies involved in the manufacturing or distribution of civilian firearms and ammunitions, including but not limited to handguns, assault-weapons or semi-automatic rifles, and large capacity magazines. Any company with significant ownership in such activities will likewise be recommended for divestment. Significant ownership is defined as owning 10% or more of the involved company’s ownership shares.

  • USCCB 2021 SRI Guidelines, Policy III.3; CCC, no. 2413

    IWP Capital’s Gambling screen includes the production or operation of online betting, digital terminals, equipment & hardware, table games, bingo, sports betting, lotteries, slots, and any game classified under the Indian Gaming Regulatory act as a Class II or Class III game. Sports betting, with the exception of fantasy sports, is included in the Gambling screen. Sports betting is defined as a game of chance by the U.S. courts, and IWP Capital considers all gaming activities deemed to be games of chance as gambling. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in another company participating in these activities will also fail this screen.

    The screen does not include real estate operations where the only revenue derived from the business is rent nor does it include casino games that are played at no cost or for charitable donation. Social gambling, typically casual mobile apps where no money is staked, are not included.

  • USCCB 2021 SRI Guidelines, Policy III.3; CCC, no. 2290

    IWP Capital’s Tobacco screen covers companies involved in the farming of tobacco plants and production of tobacco products, such as vapor cartridges, cigarettes, cigars, snuff, chew, dip, dried leaves, pipes, and/or pouches. Companies with significant ownership, defined as owning 10% of the ownership interest, in another company participating in these activities will also fail this screen.

    The Tobacco screen does not include companies that produce ancillary components of tobacco products, such as paper, adhesives, ink, printing, and filters.

  • USCCB 2021 SRI Guidelines, Policy III.3; CCC, no. 2290 & 1809

    IWP Capital’s E-Cigarettes screen identifies companies that produce electronic cigarettes or water vapor smoking devices. This includes reusable vapes, single use products, and cartridges. Companies with significant ownership, defined as owning 10% of the ownership interests, in any other company participating in these activities will also fail this screen. E-Cigarettes contain nicotine, one of the most highly addictive and most difficult substances to quit.

  • USCCB 2021 SRI Guidelines, Policy III.3; CCC, no. 2290 & 1809

    IWP Capital’s Cannabis screen tracks companies involved in the cultivation, research, production, or retail of recreational cannabis products. Recreational cannabis is defined as any and all parts of the genus cannabis plant and consequent products derived from it containing a THC content greater than the federal legal limit of 0.3%.

    IWP Capital’s cannabis screen includes raw cannabis, cannabis flowers, cannabis seeds, cannabis growing/farming, cannabis infused edible products, cannabis pills, cannabis oils, cannabis vapors or electronic cigarettes, pre-rolled joints, and cannabis infused beverages. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in any other company participating in these activities will also fail this screen.

    IWP Capital does not include:

    Ancillary products that may be used in cannabis consumption including pipes, bongs, lighters, and rolling papers;

    Agricultural products used in the growing and farming of cannabis, such as hydroponic systems, irrigation, lights, fertilizer, and soil;

    Industrial hemp or CBD products that contain less than o.3% of THC;

    And medical marijuana licensed, produced, and/or regulated for legitimate pharmaceutical applications.

  • USCCB 2021 SRI Guidelines, Policy III. 3-4; CCC, no. 2290-2291

    IWP Capital’s Opioid screen tracks companies that produce opioid pharmaceutical drugs. Opioids include prescription medications used to treat pain such as fentanyl, codeine, methadone, oxycodone, and hydrocodone. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in any other company participating in these activities will also fail this screen.

    IWP Capital developed this screen in response to widespread addiction and the endemic abuse of opioid prescription drug in the United States.

PURSUING
ECONOMIC
JUSTICE

As the Catholic Church pursues the good of all persons, one of its main focuses is the preferential option for the poor. As the pastoral letter Economic Justice for All proclaims, “The needs of the poor take priority over the desires of the rich.”

To that end, the FFV Scorecard® maintains two screens related to economic justice:

  • USCCB 2021 SRI Guidelines, Policy IV. 5; CCC, no. 2409

    IWP Capital’s Predatory Lending screen identifies companies that offer predatory loans. Predatory loans are defined as consumer cash advances, title loans, tax refund advances, settlement advances, pawn loans, payday loans, and home collection loans. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in any other company participating in these activities will also fail this screen. IWP Capital does not include business lending, check cashing, money orders, point of sale lenders, lease-to-own retailers, or pawn shops in the Predatory Lending screen.

  • USCCB 2021 SRI Guidelines, Policy IV. 5

    IWP Capital’s Debt Collection screens cover companies that acquire consumer loans from a third party and service the outstanding debt through collections or asset recovery operations. Loans covered include personal, medical, student, auto, and housing debt. Companies with significant ownership, defined as owning 10 percent of the ownership interests, in any other company participating in these activities will also fail this screen.

SAVING
OUR COMMON
GLOBAL HOME

St. Francis of Assisi reminds us, “Our common home is like a sister with whom we share our life and a beautiful mother who opens her arms to embrace us.”

IWP Capital has developed three screens that we believe capture the spirit of the bishops’ guidelines and remain well suited to investment screening. They include:

  • USCCB 2021 SRI Guidelines, Policy V. 2, CCC, no. 339-341

    IWP Capital’s Coal Mining screen names companies directly involved or having a significant ownership in the extraction of thermal coal. Significant ownership is defined as owning 10 percent or more of the ownership shares of the involved company. Coal is the most carbon-intensive fossil fuels, and the combustion of coal is the largest single source of global warming. UN Secretary General António Guterres has called the phasing out of coal the single most effective way of moving towards achieving the goals of the Paris Agreement.

  • USCCB 2021 SRI Guidelines, Policy V. 4, CCC, no. 339-341

    IWP Capital’s Whaling screen examines company involvement or significant ownership in the commercial hunting, killing, and/or sale of whales, whale meat, blubber, or other related derivatives. Whales are an endangered species that play a critically important role in the marine ecosystem. At the top of the food chain, whales ensure a stable aquatic food supply and protect the overall health of our oceans. In addition, whales naturally capture significant carbon emissions from the atmosphere, thus playing an important role in protecting the environment. IWP Capital developed this screen in an effort to protect the endangered species, preserve biodiversity, and ensure the health of our marine ecosystems and common home at large.

  • USCCB 2021 SRI Guidelines, Policy V. 6, CCC, no. 339-341

    IWP Capital’s Water Privatization screen monitors companies that own or operate privatized water facilities. Pope Francis calls access to safe drinkable water “a basic and universal human right, since it is essential to human survival.” By refraining from investing in this activity, our intent with this screen is to discourage the commercialization, commoditization, and/or exploitation of our planet’s most essential, life-sustaining natural resource.

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