Domini Funds Releases their 2021 Impact Report
The Report Highlights a Just Transition, Corporate Emissions, and Access to Affordable Housing
Progress stems from the connections we make — between our money, our values, and an array of social and environmental issues. In 2021, assets in the five Domini Funds reached over $3 billion. For Domini, this growth has gone hand-in-hand with new efforts to understand critical global challenges and look closely at how companies are responding.
The Domini Funds’ new report underscores how the legacy of our impact investment standards, in-house research, and investor community helped to address some of 2021’s most pressing issues—the climate crisis, cyberwarfare threats, and a number of other sustainability priorities.
“Our future holds hope to be greater and greener as investors come together with a mutual care for people, planet and profit,” says CEO Carole Laible. “We use our environmental and social investment standards to help us identify strong, long-term investments. We apply these standards consistently across all of our products as we believe it is how all investing should be done.”
Reducing carbon intensity
The Domini Impact Equity Fund’s portfolio was 61% less carbon intensive than its benchmark in 2021.
- The fund has lowered its carbon intensity vs. the S&P 500 over the past two years. In 2019, it was 55% less carbon intensive than its benchmark.
Enhanced corporate climate analysis
Domini analyzes how companies’ business models are positioned for an environment that limits global temperature rise to 1.5 degrees.
- As a result, the firm strengthened its approach to corporate climate change policies and practices to better assess companies’ climate action targets.
New cybersecurity considerations
- Cyberwarfare can target hospitals, critical infrastructure, and high-risk weapons facilities.
- Domini views it as a potential weapon of mass destruction and has updated its Impact Investment Standards accordingly. The firm excludes from its investment universe the sovereign debt of countries most extensively involved in cyberwarfare.
Advocacy for a just transition
Emissions targets are just one component of an adequate and inclusive climate response.
- Domini encourages companies to design climate transition plans that meet the needs of workers and support the most vulnerable communities.
Helping expand access for all
Providing affordable access to basic services and resources without discrimination helps communities thrive.
- The Domini Funds, particularly the Domini Impact Bond, help channel capital to support the foundational needs of communities—such as healthcare, education, and infrastructure. The fund holds bonds of several issuers that work to improve access to affordable housing, financial services, and other basic services.
Direct dialogue with companies
Investors have a powerful voice. Direct dialogue, collaboration, and partnerships play a crucial role in improving corporate governance and encouraging stronger policies.
- Domini—on its own and in collaboration with other investors—engaged 365 companies (53% U.S.-based, 47% international) on areas such as board diversity (race and gender), vaccine access, workers’ rights, and supply chain transparency.
- Domini joined global institutional investors on the Pandemic Resilience 50 in engagements across real estate, international drug stores and pharmacy chains, technology companies, and transportation, encouraging companies to share board accountability for human capital management and workers’ well-being.
To find out more about these initiatives and highlights, read our full report: www.domini.com/2021Impact
About Domini Impact Investments LLC:
Domini Impact Investments LLC is a women-led SEC registered investment adviser that harnesses the power of finance to help create a better world. With an exclusive focus on impact investing that aims to help create positive outcomes for our planet and its people while seeking competitive financial returns, our continuous innovation and caring, diverse community fuel tomorrow’s prosperity as we endeavor to make “investing for good” the way all investing is done.
Before investing, consider each Fund’s investment objectives, risks, charges and expenses. Contact us at 1.800.225.3863 for a prospectus containing this and other important information. Read it carefully.
The Domini Funds are not bank deposits and are not insured. Investing involves risk, including possible loss of principal. The market value of Fund investments will fluctuate. The Domini Impact Equity Fund is subject to certain risks including impact investing, portfolio management, information, market, recent events, and mid- to large-cap companies’ risks. The Domini International Opportunities Fund is subject to certain risks including foreign investing, geographic focus, country, currency, impact investing, and portfolio management risks. The Domini Sustainable Solutions Fund is subject to certain risks including sustainable investing, portfolio management, information, market, recent events, mid- to large-cap companies and small-cap companies’ risks. The Domini Impact International Equity Fund is subject to certain risks including foreign investing, emerging markets, geographic focus, country, currency, impact investing, and portfolio management risks. Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity. These risks may be heightened in connection with investments in emerging market countries. The Domini Impact Bond Fund is subject to certain risks including impact investing, portfolio management, style, information, market, recent events, interest rate and credit risks.
The Adviser’s evaluation of environmental and social factors in its investment selections and the timing of the Subadviser’s implementation of the Adviser’s investment selections will affect the Fund’s exposure to certain issuers, industries, sectors, regions, and countries and may impact the relative financial performance of the Fund depending on whether such investments are in or out of favor. The value of your investment may decrease if the Adviser’s or Subadviser’s judgement about Fund investments does not produce the desired results. There is a risk that information used by the Adviser to evaluate environmental and social factors, may not be readily available or complete, which could negatively impact the Adviser’s ability to evaluate such factors and Fund performance.
The Standard & Poor’s 500 Index (S&P 500) is a market-capitalization weighted index representing the performance of large-capitalization companies in the U.S. Investors cannot invest directly in the S&P 500. The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by Domini. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P® and S&P 500® are trademarks of S&P; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Domini. Domini product(s) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the index.
The Domini Funds are only offered for sale in the United States. DSIL Investment Services LLC, Distributor, Member FINRA. Domini Impact Investments LLC is the Funds’ Adviser. The Funds are subadvised by unafilliated entities. 3/22