Top Ranking Demonstrates Domini’s Commitment to Sustainable Investing
New York, NY – Domini Impact Investments LLC (“Domini”), an impact investment adviser specializing exclusively in impact investing, today announced it was one of only eight asset managers to earn a top Morningstar ESG Commitment Level ranking of ‘Leader.’
Morningstar’s ESG Commitment Level is a qualitative measure that provides investors with an understanding of asset managers’ ESG ambitions. Morningstar introduced the ESG Commitment Level for Asset Managers assessment in 2020. Domini was included in its qualitative rating for the first time this year. In total 108 firms across the globe were ranked.
According to Morningstar’s report, almost all firms with the ‘Leader’ label “operate from a shared belief that sustainability goals go hand-in-hand with long-term financial return, and this is reflected at all levels of the organization.”
Morningstar’s ESG Commitment Level assessment helps investors identify the asset managers dedicated to delivering sustainability outcomes. In its report, Morningstar noted that due to the proliferation of ESG funds and concerns about greenwashing, elevated oil prices, and politics, proper due diligence has become critical. It wrote, “More than ever, sustainability-focused investors should be discerning when selecting managers.”
Of the firms labeled ‘Leader,’ Morningstar’s report also noted, “They have been at the cutting edge of developing innovative frameworks to assess ESG risks as well as the impacts, both positive and negative, that companies and investments have on the environment and society at large.”
Morningstar’s evaluation was based on an analysis of three key pillars: philosophy and process, resources, and active ownership.
The philosophy and process pillar considered factors such as a firm’s history of sustainable investing, the alignment of a firm’s investment philosophy and ESG principles, and the level and consistency of ESG integration across its investment offerings.
The resource pillar looked for specialized sustainability expertise and useful ESG data since sustainable investing requires adequate capability and knowhow.
And finally, the active ownership pillar considered the firm’s engagement and proxy-voting policies, its record of support for ESG shareholder resolutions, and its level of disclosure in relation to these activities.
There were three levels below the ranking of ‘Leader,’ where most of the other asset managers fell. Rankings below ‘Leader’ included 21 firms that scored ‘Advanced,’ 48 that had an ESG Commitment Level of ‘Basic,’ and 31 that earned a ‘Low’ ESG Commitment rating. The ranked asset managers were mostly headquartered in the U.S. (45) and the United Kingdom (22).
Media Contact:
Claire Dorey I 212-217-1031 (direct) I cdorey@domini.com
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, we aim to help drive 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.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $264 billion in assets under advisement and management as of June 30, 2023. The Company operates through wholly- or majority-owned subsidiaries in 32 countries.
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