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.