Prioritising qualitative environmental, social and governance (ESG) research over big data methodologies offered by third party, Domini believes it's able to identify sources of risk and opportunity that are overlooked by more conventional investment approaches.
At the centre of this is Domini's Impact Investment Standards, a transparent set of standards underscored by the goals of universal human dignity and ecological sustainability.
Domini's ESG team puts this into practice by conducting qualitative research and analysis on each issuer and security in its scope.
It credits this process for its decision to upgrade its investment in BMW, based on its increasing investments in electric vehicles, which subsequent media reports credit for driving sales growth. The investment manager believes this shows how it's able to better avoid certain portfolio risks, such as environmental fines or discrimination lawsuits, and identify more resilient business models and investment opportunities.
"At Domini, our twin goals of ecological sustainability and universal human dignity drive all of the work we do," said Carole Laible, CEO of Domini. "Our exclusive focus on impact investing, which dates back to 1991, is woven into the DNA of our firm and gives us long-term perspective on the greatest sustainability challenges facing our planet and its people."
Being active investors and engaging with companies is another key aspect of Domini's approach and track record. Throughout last year Domini conducted 631 engagements that reached 351 companies, as well as policymakers and other stakeholders, promoting the adoption of science-based targets, racial justice, access to medicine, forest-positive business models, among others.
While back in 2019 it helped to convince Walgreens to publish a report on opioid accountability.
Domini is a women led asset manager that has been championing sustainable and impact investing for 30 years, founded by Amy Domini who believes most asset managers at the time considered fiduciary duty as only extending to financial performance and that ESG considerations led to underperformance.
Now Domini believes it laid much of the groundwork to enable impact investing to increasingly become mainstream and is committed to remaining at the forefront of that movement.