Domini 2022 Impact Report Highlights Action on Climate Transition, Forest Protection, and Workers’ Rights

Rhea-AI Summary

The 2022 Impact Report from Domini Impact Investments highlights the company's commitment to addressing environmental and social challenges. Key achievements include a 64% reduction in carbon intensity within their equity fund portfolios compared to benchmarks, with over half of portfolio companies setting science-based emission targets. Domini engaged in 382 dialogues with companies on governance and sustainability, focusing on racial justice and the impacts of the Ukraine invasion on human rights. The firm emphasizes the importance of financial industry leadership in combating climate change, supporting nature preservation, and promoting equitable economic transitions. Their initiatives aim to enhance corporate accountability and protect vulnerable communities.

Positive

• Domini equity funds showed 64% lower carbon intensity than their benchmarks in 2022.
• 53% of portfolio companies committed to science-based emission reduction targets.
• Engaged in 382 dialogues with companies, focusing on sustainability and racial justice.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- 2022’s environmental and social challenges brought about ambitious work and new solutions. The need for climate action intensified, and companies are responding with improved reporting, better jobs, and new decarbonization efforts. Deforestation continues to threaten biodiversity, but the global community is coming together to end nature loss this decade. And while war and persecution persist, governments and companies are stepping in to defend human rights.

Read Domini's 2022 Impact Report (Graphic: Business Wire)

Domini’s new report underscores how our impact investment standards, in-house research, and corporate engagement helped to address some of 2022’s most pressing issues—across the environment, human dignity, racial equity, gender, and more.

“Encouraging companies to deepen their sustainability efforts was a focus of our work in 2022,” said Domini CEO Carole Laible. “We understand finance’s role in helping drive progress. We leveraged it to support the climate transition, safeguard nature, and promote equity.”

Here are some highlights from Domini’s work and impact in 2022:

Reduced carbon intensity

All Domini equity funds continued to be less carbon intensive than their respective benchmarks. We also saw a stronger commitment of companies held in each of the funds to setting science-based targets.

• The Domini Impact Equity Fund’s portfolio was 64% less carbon intensive than its benchmark in 2022. 53% of our portfolio companies have set or committed to set science-based targets to reduce emissions.
• We also worked with banks on net-zero targets, encouraging measurement and goal setting on financed emissions and, when relevant, the phase-out of the most polluting sectors.

Preserving forests and nature

We have a long-term initiative to protect and preserve forests. It’s important that we work towards ending deforestation this decade.

We dialogued directly with several companies—communicating investor expectations around deforestation policy commitments, demonstrating how supply chains can be transformed, and helping ensure respect for human rights where deforestation may impact communities or rightsholders.

• We took part in key conversations at the United Nations’ COP15 conference on biodiversity and Climate Week NYC 2022, helping guide leaders towards a new international biodiversity framework.

Lifting up climate justice

Transitioning to a lower-carbon economy needs to be an equitable, holistic process that doesn’t leave anyone behind.

• Our standards helped us identify and invest in companies that are seeking and listening to input from their workers as part of efforts to make their business operations more sustainable.
• We also identified companies that provide workers with strong labor protections and fair wages—or are retaining or hiring workers from carbon-intensive roles, who bring valuable expertise to the low-carbon transition.

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.

• Our advocacy with companies, regulators, and other decision makers totaled to 382 engagements. Nearly half of these incorporated a racial justice lens, aiming to help create change at the intersection of race and other environmental and social issues.
• Many companies—even those not domiciled in Russia—may be impacted by the Russian invasion of Ukraine through supply chains, workers, and direct operations. We engaged with companies to conduct enhanced human rights due diligence as they evaluate the appropriate way forward.
• We encouraged supermarket chains to join the Milk with Dignity program and the Fair Food Program, which aim to ensure concrete protections for farmers, farmworkers, and other at-risk workers in the supply chain.

Read the report here: https://domini.com/2022impactreport

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.

Before investing, consider each Fund’s investment objectives, risks, charges, and expenses. Contact us at 1.800.582.6757 for a prospectus containing this and other important information. Read it carefully.

An investment in the Domini Funds is not a bank deposit, is not insured, and is subject to certain risks, including loss of principal. An investment in the Domini Impact Equity Fund is subject to certain risks, including impact investing, portfolio management, information, market, mid- to large-cap companies, and small-cap companies risks. An investment in the Domini International Opportunities Fund is subject to certain risks, including foreign investing, geographic focus, country, currency, impact investing, portfolio management, and information risks. An investment in the Domini Sustainable Solutions Fund is subject to certain risks, including sustainable investing, portfolio management, information, market, mid- to large-cap companies, and small-cap companies risks. An investment in the Domini Impact International Equity Fund is subject to certain risks, including foreign investing and emerging markets, geographic focus, country, currency, impact investing, portfolio management, and quantitative investment approach 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. An investment in the Domini Impact Bond Fund is subject to certain risks including impact investing, portfolio management, style, information, market, 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 judgment 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 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 unaffiliated entities. 3/23

View source version on businesswire.com: https://www.businesswire.com/news/home/20230412005238/en/

Claire Dorey | 212-217-1031 (direct) | cdorey@domini.com | domini.com

Source: Domini Impact Investments LLC

FAQ

What were the key highlights from Domini Impact Investments' 2022 Impact Report?

Domini's 2022 Impact Report highlights a 64% reduction in carbon intensity in equity funds compared to benchmarks and more than 50% of portfolio companies committing to science-based emission targets.

How did Domini impact investments address climate change in 2022?

Domini engaged with banks on net-zero targets, encouraged measures to reduce financed emissions, and advocated for corporate commitments to eliminate deforestation.

What actions did Domini take to promote human rights in 2022?

Domini engaged directly with companies affected by the Ukraine conflict to conduct enhanced human rights due diligence and initiated dialogues on racial justice.

What is the stock symbol for Domini Impact Investments?

The stock symbol for Domini Impact Investments is DSEFX.

How does Domini aim to drive sustainability in investments?

Domini employs impact investment standards and corporate engagement strategies to promote sustainability efforts among companies in its portfolio.