Domini Designated ESG ‘Leader’ by Morningstar

Top Ranking Demonstrates Domini’s Commitment to Sustainable Investing

NEW YORK–(BUSINESS WIRE)–Domini Impact Investments LLC (“Domini”), an impact investment adviser specializing exclusively in impact investing, today announced it was one of only eight asset managers to earn a top Morningstar ESG Commitment Level ranking of ‘Leader.’

Morningstar’s ESG Commitment Level is a qualitative measure that provides investors with an understanding of asset managers’ ESG ambitions. Morningstar introduced the ESG Commitment Level for Asset Managers assessment in 2020. Domini was included in its qualitative rating for the first time this year. In total 108 firms across the globe were ranked.

According to Morningstar’s report, almost all firms with the ‘Leader’ label “operate from a shared belief that sustainability goals go hand-in-hand with long-term financial return, and this is reflected at all levels of the organization.”

Morningstar’s ESG Commitment Level assessment helps investors identify the asset managers dedicated to delivering sustainability outcomes. In its report, Morningstar noted that due to the proliferation of ESG funds and concerns about greenwashing, elevated oil prices, and politics, proper due diligence has become critical. It wrote, “More than ever, sustainability-focused investors should be discerning when selecting managers.”

Of the firms labeled ‘Leader,’ Morningstar’s report also noted, “They have been at the cutting edge of developing innovative frameworks to assess ESG risks as well as the impacts, both positive and negative, that companies and investments have on the environment and society at large.”

Morningstar’s evaluation was based on an analysis of three key pillars: philosophy and process, resources, and active ownership.

• The philosophy and process pillar considered factors such as a firm’s history of sustainable investing, the alignment of a firm’s investment philosophy and ESG principles, and the level and consistency of ESG integration across its investment offerings.

• The resource pillar looked for specialized sustainability expertise and useful ESG data since sustainable investing requires adequate capability and knowhow.

• And finally, the active ownership pillar considered the firm’s engagement and proxy-voting policies, its record of support for ESG shareholder resolutions, and its level of disclosure in relation to these activities.

There were three levels below the ranking of ‘Leader,’ where most of the other asset managers fell. Rankings below ‘Leader’ included 21 firms that scored ‘Advanced,’ 48 that had an ESG Commitment Level of ‘Basic,’ and 31 that earned a ‘Low’ ESG Commitment rating. The ranked asset managers were mostly headquartered in the U.S. (45) and the United Kingdom (22).

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.

About Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $264 billion in assets under advisement and management as of June 30, 2023. The Company operates through wholly- or majority-owned subsidiaries in 32 countries.

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. The market value of Fund investments will fluctuate. You may lose money. The Domini Funds are only offered for sale in the United States. View or order a prospectus. Read it carefully. DSIL Investment Services LLC (DSILD) distributor, Member FINRA(opens in a new tab). Domini Impact Investments LLC (Domini) is the Funds’ investment manager. The Funds are subadvised by unaffiliated entities.

The environmental, social, and governance standards applied to the Domini Funds may be changed or modified at any time without notice.

Morningstar ESG Commitment Level – Methodology

To arrive at the Morningstar ESG Commitment Level for a given asset manager, Morningstar analysts evaluate three key pillars: Philosophy & Process, Resources, and Active Ownership. Each pillar is scored and then rolled into the overall ESG Commitment Level by weighting them as follows: Philosophy & Process: 40% Resources: 30% and Active Ownership: 30%.

For more information and to read the full methodology and report visit the Morningstar website. Morningstar periodically releases updated reports, it is not based on a set schedule.

Morningstar ESG Commitment Level – Leader

In this fourth installment of the ESG Commitment Level landscape, 15 firms were new additions to coverage including Domini who earned an inaugural rating of Leader. Out of the 108 asset managers evaluated, 8 earned a Morningstar ESG Commitment Level of Leader. In most cases, these firms have focused on sustainable investing (formerly known as responsible investing) since day one, and this philosophy remains core to their identities today. These firms operate from a shared belief that sustainability goals go hand-in-hand with long-term financial return, and this is reflected at all levels of the organization.

©2023 Morningstar, Inc. All rights reserved. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses, and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete, or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses, or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. To license the research, call +1 312 696-6869.

Contacts

Media Contacts:

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

Michael Claussen I 312-696-6037 I newsroom@morningstar.com