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Today, consumers are asked to reduce their carbon footprint by flying less, eating less red meat, carpooling, and recycling, putting most of the responsibility on individuals to respect the environment’s fragile state and solve climate change. At Domini Impact Investments, founded in 1990, we have always recognized that this is a shared responsibility and the significant role companies, investors, and governments, along with individuals, play in helping protect the environment and mitigate climate change. Domini also believes that making an impact involves addressing corporate behavior by encouraging companies to uphold and strengthen their environmental policies and commitments. Thirty years later, the Domini Impact Equity Fund, launched in 1991 as one of the first socially responsible mutual funds, has become a trendsetter. With five mutual funds and $2.1bn assets under management as of 1/31/2024, Domini continues to be a standard-setter in using equity and fixed-income investments to help drive positive environmental and social outcomes.
Our approach to responsible investments goes beyond conventional investment strategies, aiming to empower investors as drivers for environmental and social change. Adhering to stringent impact investment standards, Domini avoids investments that diverge from our sustainability goals, ensuring our approach aligns seamlessly with socially responsible values. As of 2022, the Domini Impact Equity Fund continues to be a testament to our dedication to responsible investing, showcasing a 64% reduction in carbon intensity compared to the S&P 500. Quite remarkably, 43% of our holdings have committed to science-based emissions reduction targets, demonstrating measurable impact and progress towards a sustainable future.
Domini's commitment is not just words on paper; it's reflected in our investment standards, which are applied across all of our investments. We avoid those misaligned with our vision for a sustainable future, steering clear of military weapons, firearms, nuclear power, fossil fuels, coal, tobacco, alcohol, and gambling. This approach allows Domini to identify investment opportunities and risks often overlooked by conventional methods.
We actively engage with companies to address environmental and social risks, advocating for positive outcomes. Domini ensures that the voices of its shareholders are effectively heard through direct dialogues, advocacy, shareholder proposals, and principled proxy voting, not only addressing global issues but also narrowing in on local issues. For example, in our engagement initiatives during 2023, we engaged with insurance company, Chubb, to encourage them to cease issuing insurance for oil drills. Our successful advocacy work led the company to discontinue issuing such insurance. These efforts helped protect the Arctic land, its wildlife, and its community by ensuring that local Indigenous People were granted rights to free, prior, and informed consent. Seeking to provide shareholders with long-term competitive returns consistent with the promotion of universal human dignity and ecological sustainability, Domini actively engages with companies, understanding that companies' responsibilities are catalysts to the well-being of the planet and its people. As such, Domini actively communicates and shares with companies on a variety of environmental and social issues and topics, turning our investments into an often long-term exchange that fosters sustainability and innovation. Initiatives with Deere & Co, Procter & Gamble, and Fannie Mae showcase Domini's dedication to addressing environmental and social risks. Deere & Co. now leads the climate transition, Procter & Gamble refined its emissions reduction strategies, and Fannie Mae embraces climate risk modeling for more resilient and equitable solutions.
Our deep history in shareholder activism has allowed investors to seek more from their investments. Domini believes in creating a ripple effect where responsible business practices and sustainable innovations become integral to consumer choices. In pursuing sustainable investments, Domini stands as a beacon of change, actively participating in helping shape a greener future. Domini's commitment to creating measurable impact, investor and consumer empowerment, as well as successful engagements with corporations underscores our dedication to advancing a sustainable and environmentally friendly marketplace and fostering a better planet.
Disclosure
Nomination Title: Harnessing the Power of Financial Services to Better the Planet
