At Riverwater Partners, we understand that faith-based investors are balancing two critical principles of stewardship. There is the financial stewardship required to preserve and grow assets to serve your needs, and there is the social and environmental stewardship required to ensure those returns aren’t earned at the expense of others.
We believe companies can and should deliver on both fronts. Our responsible investing practice is designed to identify businesses that respect their moral obligation to protect the planet and its people while still achieving robust financial goals.
A Framework for Shared Value
Our approach relies on a three-pillar framework: due diligence, engagement, and collaboration. We don’t just look at a balance sheet; we seek to understand how companies responsibly deploy their human, physical, and financial capital.
To align with faith-based values, we employ specific strategies:
1. Avoid Doing Harm
We exclude companies that derive significant revenue from activities that do not make the world better, such as alcohol, tobacco, pornography, for-profit prisons, and coal production.
2. Work for Change
We engage with companies toward responsible business practices. We take a pragmatic approach to energy. Unlike some peers, we invest in nuclear (the safest, cleanest production) and natural gas (a necessary bridge to a carbon-free future). By investing rather than divesting, we keep a “seat at the table.” This allows us to have dialogue with companies like CNX, a natural gas company, toward decarbonizing their operations and capturing methane—which is far more dangerous than CO2—from abandoned coal mines.
3. Promote the Common Good
We view investments through a “system stewardship” lens, ensuring efforts benefit not only our portfolio companies, but society generally.
Measuring What Matters: Human Dignity and Our Common Home
We back our philosophy with hard data. To promote care for our “common home,” we track environmental metrics closely—nearly half of our portfolio companies actively report on greenhouse gas emissions and water metrics, and 48% employ circularity in product design.
Equally important is the care for human dignity. We look for third-party affirmation of fair treatment, noting that 78% of our portfolio companies have a Glassdoor rating greater than 3.5. Furthermore, we look for policies aligned with UN guiding principles on human rights to protect workers in supply chains across the globe.
Direct Impact
Faith-based investors often seek direct impact from their investments, and at Riverwater, we prioritize this too. Two standout examples from our portfolio demonstrate this commitment in action:
Ciena Corporation
Ciena is a networking equipment company whose technology offers the lowest power-per-bit transmission of data across networks. Their impact on the environment has been measurable and significant. Over the last decade, while fiber capacity has increased 35-fold, Ciena’s efficiency has allowed its customers to avoid generating over 5.5 million tons of CO2.
Image: Network Infrastructure
Image: Healthcare Facility
Quest Diagnostics
On the social stewardship front, Quest Diagnostics serves one in three Americans annually, performing nearly 200 million tests to provide crucial diagnostic insights. Beyond this massive scale, Quest is deeply committed to closing gaps in care. Through their “Quest for Health Equity” initiative, they actively work to address disparities in healthcare access, making them a strong contributor to the common good.
Making the World Better Through Responsible Investing
Ultimately, our mission mirrors yours: to make the world a better place by growing wealth through responsible investing. By carefully selecting companies that align with faith-based values while delivering strong financial performance, we help investors fulfill both their fiduciary duties and their moral obligations.
Whether you’re preserving assets for a religious institution, managing an endowment, or seeking personal investments that reflect your values, Riverwater Partners offers a thoughtful approach that honors both stewardship principles.
Ready to align your investments with your values? Riverwater Partners specializes in responsible SMID-cap investing that honors both financial and moral stewardship. Contact our institutional team or visit riverwaterpartners.com for more insights.
This commentary reflects the views of Riverwater Partners as of November 2025 and is subject to change without notice. It is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. References to specific securities are for illustrative purposes only and may not be representative of all client portfolios. Any forward-looking statements or forecasts are based on assumptions that may not come to pass. Past performance is not indicative of future results. Investors should consult their financial adviser before making any investment decisions. Riverwater Partners and its clients may hold positions in the securities discussed, which may create a conflict of interest.
Links to third-party sites are provided for convenience and do not imply endorsement. Riverwater is not responsible for the accuracy or content of external data or sites.
