"One God, Many Paths" panel at the UKIFC 2019 London Summit
The "One God, Many Paths" panel was featured as part of UKIFC's 2019 London Summit on Islamic finance, which tackled innterfaith issues in finance, including the Edinburgh Finance Declaration. UKIFC is one of the founding partners of the Edinburgh Finance Declaration.
Taking part were moderator Habib Motani from hosts Clifford Chance with Rev. Fiona Stewart-Darling from the Canary Wharf Multifaith Chaplaincy, Church of Scotland elder and UKIFC board member Graham Burnside, former HSBC executive Dominic Gorton and Martin Palmer from FaithInvest.
The event included contributions from across the faiths on topics such as:
- The overlap between Islamic values, the values of other faiths, and non-faith values
- The Edinburgh Finance Declaration
- The commanalities among the Abrahamic faiths
- The concept of stewardship, and how this does not always resonate with those outside of the Abrahamic tradition
- How culture is needed to create lasting change
Watch the session below:
The Faith in Finance Round Table, organised in partnership with UK Islamic Finance Council and the Church of Scotland
As part of Ethical Finance 2019 summit, on 9th October 2019, UKIFC and Church of Scotland organised a private Faith in Finance round table and dinner at St Andrew’s and St George’s West Church.
The event included contributions from across the faiths on topics such as:
- Interfaith collaboration and the role of faith-based values in modern finance
- Benefits of bringing different perspectives together
- Identifying shared values – the Edinburgh Finance Declaration
- Heritage role of the Church influencing the values of banks and what the current paradigm can take from this history
- Faith groups sharing leading practice:
- Engagement strategies
- Creating a space for religious actors in formal governance models
- Addressing the common global goals – role of faith traditions to address the SDGs
Participants included Lord John Alderdice, David Pitt-Watson, Shayk Ruzwan Mohammed, Prof. Mohamed Iqbal Asaria, Rev. Fiona Stewart-Darling, Datuk Noripah Kamso, Saker Nusseibeh and Peter Greengrass.
Hosted by The Lord Alderdice and St Benet’s Institute, The Edinburgh Finance Declaration (EFD) was presented at a discussion on Faith & Investment.
Monday 24th June 2019
Venue: House of Lords.
Shaykh Ruzwan Mohammad presented on the EFD detailing the approach taken, how the 6 values were identified, the ontological approach taken and the lessons from the process of collaboration in pursuit of shared values towards financial and economic policies. Omar Shaikh highlighted the role for faith groups in informing and contributing to the rise of responsible and ethical finance within the mainstream financial sector.
In recent years there has been increasing anxiety across the globe that the world’s financial system is not working, not only for ordinary people, much less the poor, but that it is not working properly at all. In addition it would not be overstating the case to say that there also moral outrage in many quarters at what is seen as corruption in high places.
In response to the atmosphere of widespread concern about economic and financial issues the Church of Scotland and the Islamic Finance Council UK signed a partnership agreement in March 2016 to co-develop an ethical finance solution open to all of society, regardless of race, religion or ethnic background and based on the shared values between the faith traditions. The first landmark result of this partnership was the publication of The Edinburgh Finance Declaration on 22nd October 2018 - an interfaith shared values framework on ethical finance.
October 2019 will see a further step forward with another major conference in Edinburgh organized by the Global Ethical Finance Initiative (GEFI) but before then St Benet’s Institute is holding this session at Westminster to engage with the issues raised by the Edinburgh Finance Declaration and to contribute to thinking on the issues involved.
UN PRB Insights: UN PRIs Pass the Baton
UN PRIs Pass the Baton
On 26th November 2018 28 banks from 20 countries came together as the founding members of the UN Principles for Responsible Banking (UN PRBs). In this historic move, despite a diversity in culture, beliefs and systems, these financial institutions, representing $17 trillion in total assets, showed a common interest to align business with society’s goals.
The UN PRBs, launched in draft format by UN Environment Finance Initiative (UNEP FI) at its global round table in Paris, offers the first comprehensive framework on the integration of sustainability through every function of a bank. It comes twelve years after the UN Principles for Responsible Investment was launched with 20 signatories representing $2 trillion in 2006, which has now grown to 1750 signatories with $70trillion in AUM. The global banking industry is at least twice that much in size ($134 trillion, 2016, MarketLine). It is very interesting to see this sector dislodge from its inertia and pave the way to far greater positive change than defined in the UN PRIs.
The six principles are presented below alongside the UN PRIs for comparison.
Perhaps the UN PRIs need to be updated to reflect the SDGs now. Currently, it is limited to ESG issues prime to the period when it was launched but which represent a minor area covered by the SDGs. It’s marginally effective if one part of the industry is dancing to a different tune.
Having said that, the responsible investor movement is more mature than the responsible banking movement in a greater sense. It took inspiration from the lives lost in the 2008 financial crisis, the rise of the environmental and socially conscious newer generations with growing affluence and the track record of faith-based investors since as far back as the 1600s.
It is the less mature responsible banking movement that needs a push. The UN PRBs tackle the industry’s consciousness. If implemented well, we could see greater alignment between banks and investors whether the UN PRIs are updated or not. This could unlock significantly more capital towards SDG-linked investment opportunities and the four Ps: people; planet; prosperity; peace.
During their consultation period open until May 2019, we will post insights on the UN PRBs regularly.
Vatican SDG summit
Omar Shaikh was invited to a Vatican summit entitled “Religions and the Sustainable Development Goals” to present the pioneering interfaith work of the EFD.
More details will be added soon.
Religious Investors Event, Toronto
Wednesday 5th December 2018
Graham Burnside showcased the Edinburgh Finance Declaration (EFD) via a video address to a conference with over 100 trustees, fund administrators and treasurers from Canada along with international guests. The event was organised by Peter Chapman of SHARE (Shareholder Association for Research and Education) and hosted at the University of Saint Michael’s College.
“THE EDINBURGH FINANCE DECLARATION” – AN INTERFAITH INITIATIVE ON ETHICAL FINANCE
MEDIA RELEASE
EMBARGO – 0001 (UK) Tuesday 23rdOctober 2018
“THE EDINBURGH FINANCE DECLARATION” – AN INTERFAITH INITIATIVE ON ETHICAL FINANCE
‘The Edinburgh Finance Declaration’ – The Church of Scotland and the Islamic Finance Council UK (UKIFC) will officially unveil an interfaith shared values framework on ethical finance at a reception in Greyfriars Kirk this evening (Tuesday 23rdOctober 2018). The event marks the end of the international Ethical Finance 2018 conference that has convened 300 experts in Edinburgh this week.
The Declaration, thought to be the first of its kind globally, represents the culmination of the first stage of an historic collaboration initiated in February 2016 when the Church and UKIFC signed a partnership agreement to co-develop an ethical finance solution open to all society, regardless of faith or ethnicity, that is built upon the shared values between the two faith traditions.
The shared values framework emerged from efforts led by finance practitioners. This included in-depth interviews, consultation papers and a series of structured round tables held over a two year period. This process engaged over 200 senior stakeholders ranging from banking and finance experts to religious theologians, parliamentarians and academics from across the UK and abroad. Six core shared values emerged that were refined to create the Edinburgh Finance Declaration.
The shared values – which include Stewardship, Love of the Neighbour, Human Flourishing, Sustainability and Purposefulness, Justice and Equity, and Common Good – align contemporary trends in the financial markets such as climate, UN Sustainable Development Goals and impact investing. The Declaration is designed to inform the development of financial products that support an ethical economy. It also provides a values framework that can inform organisational cultures to help rebuild the loss of trust in financial institutions and markets that has arisen since the global financial crisis.
Rev Dr Richard Frazer, Convener of the Church of Scotland’s Church and Society Council said:
“Since the global economic crash in 2008 public trust in financial institutions has been shaken, with seemingly little change as a result. From our Christian and Islamic faith traditions we believe that a different world of finance is possible, one in which ethics and economics go hand in hand. We believe that these shared values provide a solid foundation from which we might arrive at a financial sector that contributes to the flourishing of all.”
Faith organisations are estimated to command assets valued at $7 trillion. That jumps to $13 trillion when charities, endowments and philanthropic entities are included. As a consequence, these bodies are well placed to influence investment decisions and to demand that financial institutions are responsive to the values set out in the Declaration. One obvious starting point would be making a commitment to advancing the common good by adopting the United Nations’ 17 Sustainable Development Goals.
UKIFC Advisory Board member Omar Shaikh outlined the next stage in the journey: “Faith groups have always had an important role in promoting social causes. Moving forward, taking these values coupled with strong business acumen and a solid commercial approach we hope to develop an ethical finance solution that is both commercially sustainable and creates positive societal impact.”
The Declaration, which forms part of the Global Ethical Finance Initiative, is a symbolic development sending a strong and positive message of interfaith collaboration and furthering Scotland’s growing reputation for innovation and ethical finance.
Further Information
Chris Tait
Project Manager, UKIFC
(m) 07931 103573
Helen Silvis
Communications Manager
Church of Scotland
HSilvis@churchofscotland.org.uk
(m) 07817 995887
QUOTES
“A remarkable and admirable document, reflecting very great credit on both the collaborative process and fine draftsmanship that generated it.”
Sir David Alan Walker, Former Chairman Barclays, Morgan Stanley, Spearheaded Walker Report of corporate governance
“This collaboration is an important example of how different communities can not only talk of, but demonstrate shared values. It is also very encouraging to see the role the faith communities can play in inspiring a more inclusive, ethical and responsible financial system.”
Lord Archbishop of Canterbury, The Most Reverend and Right Honourable Justin Welby
“The Christian and Islamic faith traditions share a commitment to economic justice…. By collaborating and “putting our money where our morals are” we have an opportunity to live out our common values and make a tangible change for those most affected by poverty.”
Rt. Rev Dr Angus Morrison, Ex- Moderator of the General Assembly of the Church of Scotland
“This is powerful example that many globally can take from, including us in Nigeria. Well done to the Islamic Finance Council UK and the Church of Scotland for showing their vision, leadership and bravery.”
His Highness Emir Sanusi Former Governor of the Central Bank of Nigeria
“We were delighted and astonished to discover that the Church of Scotland and UKIFC had been working together to produce a theological statement of core values. Bringing faiths together in ethical finance has never been done and this work is very impressive.”
Martin Palmer, Secretary-General, Alliance of Religions and Conservation
About the Global Ethical Finance Initiative
The Global Ethical Finance Initiative (GEFI) is a global movement and co-ordinated programme of ethical finance projects and activities originating from Scotland. GEFI consolidates some of the pioneering ethical finance work being undertaken in Scotland under one brand to create a compelling global proposition.
About the UKIFC
The UKIFC was established in 2005 as a specialist advisory and developmental body focused on promoting and enhancing the global Islamic and ethical finance industry. As a dynamic and forward-thinking not-for-profit organisation the UKIFC’s Advisory Board Members, who provide pro bono support, have defined and evolved the role the organisation plays in making a tangible impact in the global Islamic and ethical finance sectors. Principle service areas are: Advisory, Ethical Finance, Training and Awareness and Thought Leadership.
The UKIFC has been recognised globally for its work in promoting shared values and increasing connectivity between ethical and Islamic finance stakeholders across the UK. For more than 5 years the UKIFC has been leading an award winning debate on ethical finance through a series of events based in Edinburgh.
About the Church of Scotland
The Church of Scotland is Scotland’s national church and is also one of the UK’s largest charities. It serves almost 400,000 members, with more regularly involved in local congregations and our community work. Within the organisation, the Church has around 800 ministers serving in parishes and chaplaincies, supported by professional and administrative staff. The Church has a proud tradition of working to benefit those less well off in society, and campaigns on a range of economic and social welfare issues.
END.
Christians and Muslims forge ahead with pioneering ethical finance plans
A world leading interfaith initiative aimed at creating a practical ethical financial solution will move a step closer on Monday (24th October 2016) at a private round table to be held in the House of Lords in London.
MEDIA RELEASE
Monday 24th October 2016
The Church of Scotland and Islamic Finance Council UK are convening the unique gathering of faith leaders, parliamentarians, and finance practitioners to agree a shared values framework upon which a financial solution, open to all in society, will be developed.
The joint venture, t he culmination of many years of dialogue, was launched earlier this year in response to the systemic failure and non-sustainability of the current financial model that has struggled to recover from the economic, operational and reputational damage caused by the global crisis in 2008/09. By developing a pioneering new model of interfaith engagement the initiative aims to move from dialogue to action by creating a fairer, more socially responsible financial system.
According to the Rev Dr Richard Frazer, convener of the Church of Scotland’s Church & Society Council: “Two of the most important tasks that we face as a society are developing a fairer and more sustainable economy – one which has a passion for equality at its heart – and building stronger relationships across faith communities. This initiative does both and it is hugely exciting to be a part of it.”
The event is the second in a series of three workshops. The first, held in Edinburgh in May 2016, reviewed the theological and philosophical underpinnings of Christianity and Islam in order to identify commonalities. Shared values identified during the discussions included: our role as stewards on a planet with limited natural resources, tackling excess and greed and encouraging moral responsibility.
At the House of Lords workshop on Monday the shared values framework will be reviewed and refined before participants explore the practical obstacles to realising a vision of ethical finance today. Leading asset managers, banks and economists will share their insights on different type of economic model where ethical finance deepens the economy, encourages inclusion and creates positive social impact.
Omar Shaikh of the Islamic Finance Council UK commented: “We are delighted with the positive response received from parliamentarians and practitioners which reinforces the significance of this initiative. Bringing the debate to the heart of London, a leading a global financial centre, sends a strong international message that faith communities can work together for the greater good of society.”
The initiative emerged from an Interfaith Ethical Finance Roundtable, attended by the Archbishop of Canterbury Justin Welby, in 2013 and the Church of England continues to take an active involvement. “The need for a fairer, more ethical banking system has never been more pressing. What emerged clearly in 2013 is that those from faith perspectives have an important contribution to make in creating a shared solution for the industry and the communities that they serve. I look forward to contributing to the development of a solution in the months and years ahead.” Ed Mason, Church of England.
It is expected that the shared values framework, the first of its kind globally, will be announced early next year, informing the development of a viable ethical finance business solution.
For more information contact:
Chris Tait, Islamic Finance Council UK
chris@ukifc.com
(m) 07931103573
Rob Flett, Communications Manager, Church of Scotland
rflett@churchofscotland.org.uk
(m) 07764 335793
About the Islamic Finance Council UK
The UKIFC was established in 2005 as a specialist advisory and developmental body focused on promoting and enhancing the global Islamic and ethical finance industry. As a dynamic and forwardthinking not-for-profit organisation the UKIFC’s Advisory Board Members, who provide pro bono support, have defined and evolved the role the organisation plays in making a tangible impact in the global Islamic and ethical finance sectors. Principle service areas are: Advisory, Ethical Finance, Training and Awareness and Thought Leadership.
The UKIFC has been recognised globally for its work in promoting shared values and increasing connectivity between ethical and Islamic finance stakeholders across the UK. For more than 5 years the UKIFC has been leading an award winning debate on ethical finance through a series of events based in Edinburgh.
About the Church of Scotland
The Church of Scotland is Scotland’s national church and is also one of the UK’s largest charities. It serves almost 400,000 members, with more regularly involved in local congregations and our community work. Within the organisation, the Church has around 800 ministers serving in parishes and chaplaincies, supported by professional and administrative staff. The Church has a proud tradition of working to benefit those less well off in society, and campaigns on a range of economic and social welfare issues.
END.
Christians and Muslims unite to tackle banking crisis
The Church of Scotland and Islamic Finance Council UK have announced a partnership to create ethical financial services.
MEDIA RELEASE
Tuesday 22nd March 2016
The joint venture will draw on how the Christian and Muslim communities have supported ethical finance in the past and examine the practical commercial viability of new models which can tackle inequality and poverty. This pioneering initiative is the first time the Church and Islamic finance have come together to collaborate and will aim to create solutions open to everyone regardless of religious or ethnic background. This initiative has come into being through a shared belief that existing financial institutions have in recent years lost their social conscience. Following the banking crisis of 2008, further ongoing scandals of misselling payment protection and interest rate fixing have raised the question if reforms have worked. We believe this is an exciting opportunity for faith groups to work together on solutions which will benefit the whole of society, regardless of faith or belief.
On announcing the project Rt. Rev Dr Angus Morrison, Moderator of the General Assembly of the Church of Scotland, said: “In 2012 the Church of Scotland’s special commission on the purpose of economic activity identified human flourishing and the protection of the planet for future generations as two of the most critical purposes for financial interaction. Our current system has gone badly wrong, creating massive inequality and the destruction of our shared natural resources by money-making machines overtaking commerce that serves the common good.
“The Christian and Islamic faith traditions share a commitment to economic justice and a call to an equal distribution of the gifts of God. By collaborating and “putting our money where our morals are” we have an opportunity to live out our common values and make a tangible change for those most affected by poverty. Active concern for our communities is an obligation and we look forward to meeting the challenge together.”
The Islamic Finance Council UK (IFC) is inspired by a commitment to developing a fairer, more responsible finance system. It has been recognised globally for its work in promoting shared values and increasing connectivity between ethical and Islamic finance stakeholders across the UK. For more than 5 years the IFC has been leading the debate on ethical finance through a series of events based in Edinburgh.
IFC Advisory Board Member Omar Shaikh said: “In recent years we have developed a strong relationship with the Church of Scotland and this project is a result of that positive engagement and the mutual desire to work collaboratively on a project which brings together the best of our respective faiths. The positive message of faith groups working together presents a beacon of light which we hope can inspire many others across the world.
“Scotland has a proud heritage in ethical finance with the savings bank movement able to trace its origins back to the Rev. Henry Duncan of the Church of Scotland. This model was also used as the blueprint for the early Islamic banking attempts in the 1960s, which makes it particularly poignant that this new initiative in being led in Scotland.”
The project will research, shortlist, test and then establish a viable ethical finance business solution. The consultation and business plan phase is expected to last a year, with the first workshop to take place this May in Edinburgh with theological and financial experts coming to Scotland from as far afield as Nigeria, Malaysia and Bahrain.
Additional Notes
International Islamic Finance
Worth over $2trn, the Islamic finance sector has witnessed tremendous growth over the past decade. Moving forward a key growth strategy for Islamic financial institutions will be their ability to successfully enter and tap the considerably larger ethical finance arena. Along with the commercial opportunity, by focusing on the inherent convergence in ethical values will increase the appeal of Islamic finance in new global markets and allow an avenue to address the aspirational dissatisfaction growing within the industry as witnessed by key stakeholders raising concerns over excessive synthetic imitation of conventional structures.
Africa and Nigeria specifically is well known for its triple heritage. Often referred to as non-interest finance, Nigeria has been taking a lead in developing this sector to promote financial inclusion. Ex-Governor of the Central Bank of Nigeria, HH Emir Sanusi commented, “One immediate success of this initiative is how it is bringing together faith communities on their common values. This is powerful example that many globally can take from, including us in Nigeria. Well done to the Islamic Finance Council UK and the Church of Scotland for showing their vision, leadership and bravery.”
Islamic finance in Malaysia has taken considerable market share and attracted many Chinese Malays and those not of the Islamic faith. Dr Akram Laldin, CEO of Malaysia based Bank Negara body ISRA commented, “Islamic finance is founded on moral and ethical values and these values are shared by different faiths. This joint venture with the Church demonstrates that people from different faiths can work together on the common ground that we share. Together we can strive for the betterment of humanity.”
Scottish communities show leadership
Minister for Europe and International Development, Humza Yousaf, said: “Ethical finance offers a great opportunity to diversify Scotland’s financial services industry, allowing it to grow and prosper. I’m delighted to see the Islamic Finance Council’s hard work in this field acknowledged by the EFICA. The Scottish Government is committed to creating a more socially responsible and fairer economy in Scotland and is building upon our progress to become a worldwide industry leader in the field.”
Since the issuance to the public, in 2013, of its report on the purpose of economic activity the Church of Scotland has promoted a range of new initiatives including the development of the Churches Mutual Credit Union in partnership with other UK churches and support for WEvolution, a pioneering movement developing Self Reliant Groups and social enterprise in Scotland’s poorest communities.
Rev Sally Foster-Fulton, convener of the Church of Scotland’s Church & Society Council said: “In the Church we don’t just want to talk about how we need to do things differently. We want to demonstrate how we can and are. Working with the Islamic Finance Council UK is an important part of that work. Not only are we trying to build a fairer economy together. We are also building vital friendships and relationships across our faiths. That is also really significant in today’s world where these relationships are so often defined by division.”
Scotland’s leading Sunni Muslim theologian, Shaykh Ryzwan commented, “Today marks the beginning of extensive consultation between Muslim faith representatives headed by IFC and its associates and the Church of Scotland on working towards a shared principles framework distilled from the intellectual legacy of the two great faith traditions that will inform the debate on ethical and sustainable models of economy. As the financial crisis of the last decade is being pushed firmly to the back of the collective memory, the systemic non-sustainability of the current financial model further amplifies the need to highlight alternative practice that places human nurturing and the environment at the core of deliberation on what economy should be.
In doing so, it also engages those that question the relevance of religion in the creation of the common good, and provides a new model of Interfaith engagement - moving from dialogue to action. The Scottish context of this initiative, with its unique history in the development of the Enlightenment, in ethical banking as well as its pioneering ecumenical work, serves as the perfect environment in which to embark on this journey.”
UK leading innovation as a global financial hub
Prime Minister David Cameron has stated the UK’s position as a center for Islamic finance. As the first Western government to issue a sovereign sukuk, today’s pioneering development of interfaith collaboration showcases the UK’s ability to innovation and contribute to the global Islamic finance sector.
Lord Sheikh, Patron of the Islamic Finance Council UK and Co-Chair of the All-Party Parliamentary Group on Islamic Finance and Diversity in Financial Markets, said, “The UK has successful positioned itself as the leading Western Hub for Islamic finance with over £20bn in shariah-compliant assets. This pioneering retail focused initiative presents a great opportunity to build not only a robust sustainable business but also demonstrates British communities working together building stronger, interdependent communities.”
For more information contact:
Chris Tait, Islamic Finance Council UK
chris@ukifc.com
(m) 07931103573
Rob Flett, Communications Manager, Church of Scotland
rflett@churchofscotland.org.uk
(m) 07764 335793
About the Islamic Finance Council UK
The Islamic Finance Council UK (IFC) is a specialist advisory and development body established to promote and enhance the global Islamic and ethical finance industry. Operating since 2005, the IFC Executive Board brings together a unique blend of seasoned practitioners who are recognised leaders in the Islamic finance market and have worked for leading global institutions. The Council has successfully pioneered a number of unique developmental and educational programmes.
About the Church of Scotland
The Church of Scotland is Scotland’s national church and is also one of the UK’s largest charities. It serves almost 400,000 members, with more regularly involved in local congregations and our community work. Within the organisation, the Church has around 800 ministers serving in parishes and chaplaincies, supported by professional and administrative staff. The Church has a proud tradition of working to benefit those less well off in society, and campaigns on a range of economic and social welfare issues.
END.