By Meagan Tenety
Manager, Sustainable Investment Stewardship
Since the end of September, Wespath1 has published a report and white paper on sustainable investing that together total nearly 100 pages. Don’t worry, this isn’t a quiz. (But we could mail you some Wespath swag if you read them both.)
Instead, this is our attempt to explain Wespath’s sustainable investing approach in a more engaging and accessible format without glossing over the complexities.2 Proponents of sustainable investing often fall into the trap of making it too dense, or overly simplistic and missing crucial context. Hopefully our own version of “MythBusters” will strike the right balance.
Myth 1: Sustainable investing is synonymous with concessionary returns.
Wespath’s take: We believe the exact opposite. As Wespath CEO Andy Hendren wrote in our new Sustainable Investment Report, “We believe that sustainable investing is not just compatible with strong financial performance—it can enhance value.”
Wespath’s core focus is on investment excellence. We are in the business of seeking market-rate and market-beating returns, not financial trade-offs. Wespath’s commitment to sustainable investing helps us seek these competitive returns in the ways outlined in this blog post.
Wespath detail: While Wespath’s Social Values Choice Equity Fund – I Series and Social Values Choice Bond Fund – I Series exclude fossil fuel companies and certain investments associated with conflict-affected areas, they are held to the same standards as all our funds. For instance, the Social Values Choice Bond Fund – I Series has the same benchmark as our Fixed Income Fund – I Series, the Bloomberg U.S. Aggregate Index.
Performance3 4
Net-of-Fees (as of September 30, 2025)
| Annualized Returns | |||||
| YTD | One Year | Three Years | Five Years | ||
| Social Vaues Choice Bond Fund Composite | 6.99% | 4.23% | 6.03% | 0.48% | |
| Fixed Income Fund - I Series | 7.05% | 4.22% | 6.81% | 1.05% | |
| Bloomberg U.S. Aggregate Index5 | 6.13% | 2.88% | 4.92% | -0.45% | |
Myth 2: Impact is easy to measure.
Wespath’s take: Impact investing means strengthening local and global communities while also seeking market rates of return. Measuring impact is difficult and requires deep understanding of the issues and context. Be wary of any investor claiming widespread impact without receipts.
Wespath helped create or preserve over 54,000 units of affordable housing in the United States through its Positive Social Purpose (PSP) Lending Program. The PSP Lending Program has also provided or helped facilitate microfinance loans to individuals in developing regions around the globe who have little or no access to traditional financial services. Since its inception 35 years ago, the PSP Lending Program also has a gross-of-fees annualized return of 6.3%6 as of December 31, 2024—exceeding its benchmark’s annualized return of 5.5%.7
Wespath detail: Most PSP Lending Program properties are supported under the Low-Income Housing Tax Credit (LIHTC) program, and families living in a LIHTC property save on average more than $7,800 a year in rent. The PSP Lending Program is currently invested in nearly 16,300 affordable housing units, helping families across the country save $127.1 million annually in rent costs.
Myth 3: There are simple solutions to complex problems.
Wespath’s take: We live in an increasingly complex world—shaped by climate change, rising conflict, migration pressures and growing inequality. And these issues present differently across asset classes. We believe that to move the needle on these critical, complex issues we must employ multiple strategies.
For example, our goal is to reduce the greenhouse gas emissions of the companies we invest in—and thus make real-world change. (Our goal is not to create the cleanest, purist portfolio.) And we’re achieving that goal. Compared to 2018, Wespath funds had a 48% reduction in emissions intensity by 2024, exceeding our goal of 35%. We achieved the goal not by divesting or corporate engagement alone, but by using all available tools, including engagement with our asset managers and investments in climate solutions strategies.
Wespath detail: The Social Values Choice Equity Fund – I Series has a 41% lower emissions intensity than the benchmark by virtue of being fossil fuel free.8 We are proud to offer funds to investors who seek heightened environmental screens, but our work doesn’t stop there. Wespath engaged with several companies held in the Social Values Choice Equity Fund – I Series on climate, human rights and supply chain concerns, including Facebook parent company Meta, JPMorgan Chase, Cisco, Entergy, Cummins, Southern Company and Stryker.
Myth 4: Everyone does sustainable investing.
Wespath take: Not all approaches to sustainable investing are the same—or created equal. Faith-based investors in the 18th century were some of the pioneers of sustainable investing, and Wespath is proud to carry on that tradition of leadership to this day.
Wespath leads international sustainable investment initiatives representing trillions in assets under management and has contributed to, or co-authored, seven globally distributed sustainable investment publications since 2023. In addition, Wespath’s new Sustainable Investment Report has details on the more than 120 engagements we conducted in 2023 and 2024 with companies, asset managers and policy makers on issues related to climate change, human rights and governance.
Wespath detail: After sustained engagement from Wespath and other investors, Chevron announced in 2024 it would join the United Nations program to measure, report and reduce methane emissions. Wespath also contributed to engagements that successfully urged ExxonMobil and ConocoPhillips to join the program. Chevron, ExxonMobil and ConocoPhillips are the three largest U.S. oil and gas producers.
1Throughout this blog, Wespath and its subsidiaries are referred to collectively as “Wespath.”
2Wespath implements the sustainable investment strategies for investment funds made available through its subsidiaries Wespath Institutional Investments LLC (“WII”) and UMC Benefit Board Inc. (“UMCBB”). WII is the investment adviser for the I Series funds.
3The performance shown is for the stated time period only and computed in U.S. Dollars (USD). Historical returns are not indicative of future performance. Investment performance is presented net-of-fees—that is, with the deduction of external investment management fees, custody fees, and administrative and overhead expenses. The investments of the fund and composite may vary substantially from those in the applicable benchmark. The benchmarks are based on broad-based securities market indices, which are unmanaged, cannot be invested in and are not subject to fees and expenses typically associated with investment funds. This chart was produced using data from sources believed to be accurate.
4The composite performance presented reflects the historical performance record of: (i) the Social Values Choice Bond Fund – P Series before January 1, 2019; and (ii) after January 1, 2019, both the Social Values Choice Bond Fund – P Series and the Social Values Choice Bond Fund – I Series (asset-weighted). WII is the investment adviser for the I Series funds and UMCBB is the investment adviser for the P Series funds. The Social Values Choice Bond Fund – P Series and Social Values Choice Bond Fund – I Series have substantially similar investment objectives and investment strategies and are referred to collectively as “the Composite.” The P Series funds are not available to Institutional Investors other than in exceptional circumstances agreed to by UMCBB, the investment adviser for the P Series funds .
5The Fixed Income Fund – I Series Benchmark and the Social Vaues Choice Bond Fund Composite Benchmark is the Bloomberg U.S. Aggregate Index, effective July 1, 2025. The index measures the performance of the investment grade, USD-denominated, fixed-rate taxable bond market. From January 1, 2019, through June 30, 2025, for the Fixed Income Fund – I Series Benchmark and for the Social Vaues Choice Bond Fund Composite Benchmark, the benchmark was the Bloomberg U.S. Universal Index (excluding mortgage-backed securities).
6Historical returns are not indicative of future performance. The PSP Lending Program performance is gross-of-fees. Inclusion of these fees would result in lower performance. PSP Lending Program strategies are not available for direct investment but rather are held within applicable P Series or I Series funds. Performance reflects that of the PSP Lending Program composite employed by: (a) WII through the I Series funds available as of January 1, 2019; and (b) UMCBB through the P Series funds prior to January 1, 2019. After January 1, 2019 the composite includes the PSP Lending Program employed in both the applicable P Series funds and I Series funds (asset-weighted). For more information about the P Series and I Series funds, including their historical net-of-fees performance, please see the Investment Funds Description – P Series and Investment Funds Description – I Series, respectively.
7The benchmark is the Bloomberg U.S. Agency CMBS Index, +150 basis points, as of January 1, 2018. From January 1, 2016, to December 31, 2017, the benchmark was 50% Bloomberg U.S. Aggregate – Long (A) Index and 50% Bloomberg U.S. Universal ex-MBS Index. From January 1, 2007, to December 31, 2015, the benchmark was 60% Bloomberg U.S. Universal ex-MBS Index, 25% Bloomberg U.S. Long Credit A Index and 15% Bloomberg Credit 1 – 5 Years Index. From January 1, 1992, to December 31, 2006, the benchmark was the Lehman Agency Non-Callable Index. Prior to January 1, 1992, the benchmark was the U.S. Consumer Price Index, +200 basis points.
8Carbon emission data as of January 2, 2025. The carbon footprint is calculated in FactSet using the approved methodology provided by the Net-Zero Asset Owner Alliance in its Target Setting Protocol. FactSet provides market data on fund securities, while emissions data is provided by Institutional Shareholder Services (ISS). ISS data is input directly into FactSet and programmed formulas are used to determine carbon emission data. Emissions data relies on pubic reporting and ISS’ estimations, may differ from emissions data from other sources, and is subject to change.
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