The Church of Scotland and the Ecumenical Council for Corporate Responsibility have called on churches to invest in a fairer and more sustainable future by embracing ethical and socially responsible models of finance and investment.

The call was issued at a one-day conference at St Georges West Church in Edinburgh organised by the Church and the ECCR, and supported by a number of church groups including Action of Churches Together in Scotland, the Iona Community and the Scottish Catholic International Aid Fund.

In a statement, the Church of Scotland and ECCR warned that “the operation of global finance too often harms the poorest people and the poorest countries”.

Convener of the Church of Scotland’s Church and Society Council, the Rev Ian Galloway, said there was an urgent need for banking and investment that could “lead to more socially just and sustainable outcomes”.

“Communities of faith ought to consider the social and environmental aspects of our financial systems,” he said.

ECCR Coordinator Miles Litvinoff said money could work for good and that churches had an important part to play in the changes needed.

“Socially responsible investment and ethical banking can help raise standards of corporate responsibility not just in the UK but worldwide,” he said.

The conference coincided with the release of a report from the Church Investors Group calling for a narrowing of the gap between the highest and lowest paid workers in the country and expressing concern over the “excessive” pay awarded to some senior corporate executives.

The report, written by theologians Rev Dr Richard Higginson and Professor David Clough, has been sent out to leaders of Church denominations, chairs of FTSE 100 companies, leaders of the main political parties, and the Chair of the FSA.

John Cunningham, Financial secretary of the Roman Catholic Diocese of Plymouth and CIG Chair, stated: “This report will help bring theological insight into an area with which financial regulation alone is not equipped to deal. We hope that it will provide an accessible resource to help companies grapple with a problem threatening to alienate senior executives from the rest of society.”

Bill Seddon, Chief Executive of the Central Finance Board of the Methodist Church, added: “Engagement with companies on pay will be given renewed impetus by this clear exposition of the ethical challenges surrounding pay.

“We will certainly press for simpler and more transparent remuneration policies and discourage those that incentivise high-risk behaviour.”