Vatican City: The Institute for the Works of Religion (IOR), commonly known as the Vatican Bank, has released its first-ever Sustainability Report, signaling a significant strengthening of its commitment to transparency, ethical governance, and sustainable finance. Alongside this landmark publication, the IOR also issued its inaugural disclosure aligned with Pillar III of the Basel III framework an international standard requiring financial institutions to report on capital adequacy and risk management.
Together, these publications demonstrate the Vatican Bank’s determination to meet the highest global benchmarks in financial reporting, offering detailed insights into risk exposure, governance systems, and the institution’s ethical foundations.
The Sustainability Report outlines the IOR’s efforts to build an economic model rooted in Catholic social teaching. Central to the document is a “double materiality” matrix developed with guidance from the EU Corporate Sustainability Reporting Directive (CSRD) which identifies the institution’s most significant environmental, social, and governance priorities. These topics were assessed and reported using the Global Reporting Initiative (GRI) standards.
The IOR emphasized that its mission is guided by responsible investment, institutional integrity, environmental awareness, and support for social development each integral to the Church’s broader vision of ethical stewardship.
Throughout 2024, the Vatican Bank continued to apply strict moral guidelines to its financial activities, excluding investment in any sector deemed harmful to human dignity, societal wellbeing, or the environment. The institution confirmed that every product within its managed portfolio met its ethical-Catholic criteria, reflecting a disciplined adherence to its foundational principles.
Financially, the IOR reported a net income of €31 million for the year, generating a total economic value of €50 million. This was distributed among the Pope (27%), employees (30%), suppliers (18%), while the remainder was reinvested to ensure future stability. In managing client assets, the institution generated an additional €157 million in value reinforcing its dual mission of safeguarding entrusted funds and supporting the global Church.
The IOR highlighted its efforts to enhance financial education among Church institutions. In 2024, it organized six dedicated training sessions for more than 200 clients primarily religious congregations who responded with strong approval. Internally, staff development remains a priority: employees completed 1,060 hours of ethical and religious formation and 1,570 hours of training on areas such as compliance, finance, anti-money laundering, cybersecurity, and sustainability.
The Vatican Bank continues to reinforce its safeguards against corruption, money laundering, and terrorist financing in line with international norms. These improvements have attracted consistently positive assessments from Moneyval, the Council of Europe’s financial monitoring body.
The institution also maintains compliance with global tax regulations, including FATCA and the Vatican–Italy tax agreement. On the cybersecurity front, IOR adopted a comprehensive Information Security Policy based on ISO 31000, 27001, and 27005 standards. This framework outlines strict measures to protect digital infrastructure, safeguard confidential data, and ensure continuous service in the event of disruptions.
As part of its commitment to environmental stewardship, the IOR is advancing digitalisation and eco-efficiency. In 2024, the bank reduced its paper consumption by 20% through document dematerialization and relied on renewable energy for 98.9% of its needs.
These achievements, the report notes, demonstrate the Vatican Bank’s intention to promote sustainable finance rooted in Catholic ethics while contributing meaningfully to the care of creation.
The release of the Sustainability Report marks a watershed moment for the IOR as it positions itself among leading global institutions that integrate transparency, responsible governance, and moral principles at the heart of their financial operations.