Climate change dominates influential impact investor’s corporate interactions

Actions on climate change topped the agenda for Domini Impact Investments interactions with corporations in 2023, according to the investment adviser’s recently released 2023 annual engagements report. Domini, which offers five impact-focused mutual funds to investors, is a women-led firm that was one of the earliest money managers to focus on sustainability.

“Through constructive interaction — via letters, dialogues, shareholder proposals, and proxy votes — we communicate our expectations to companies, both on our own and in collaboration with other investors, and encourage best practices and innovation,” according to the report.

Domini uses its role as a shareholder to encourage stronger policies and practices that meet the twin goals of its impact investment standards: universal human dignity and ecological sustainability. “Through these efforts, we seek to advance the positive impact of our shareholders’ investments on people and planet,” the company says.

While climate change was overwhelmingly the biggest discussion point in 2023, other issues got plenty of attention as well, the report noted. Here’s a look the number engagements Domini undertook by topic:

• Climate change: 299
• Gender diversity: 90
• Human rights: 81
• Forests and biodiversity: 75
• Workers’ rights: 38
• Access and equity: 25
• Environmental justice: 13
• Racial justice and diversity: 7
• Disclosure and field building: 3

“There are signs of positive change,” said Mary Beth Gallagher, director of engagement at Domini. “Companies are consulting more frequently with rightsholders and experts. Their willingness to meet with groups who have concerns and learn directly from them about what kind of changes they want to see is warranted. This shows an openness and humility that can lead to stronger business practices.”

Amy Domini is founder and chair of Domini Impact Investments. She co-founded KLD Research & Analytics and, in 1990, was instrumental in the launch of the Domini 400 Social Index. She later co-created the Domini Impact Equity Fund.

Carole Laible is the CEO of Domini Impact Investments. She has over 25 years of impact investing experience, having joined Domini in 1997. Laible is responsible for the overall research and mutual funds operations of the firm.

The investment companies mutual funds, which carry no up-front fees and require a minimum $1,500 investment for most accounts, include Domini International Opportunities Fund , Domini Sustainable Solutions Fund , Domini Impact Equity Fund , Domini Impact International Equity Fund and Domini Impact Bond Fund .

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