Domini Social Investments believes in reporting to you, our Funds’ shareholders, on our efforts to address many of the most serious social and environmental challenges of our time. As part of our responsibilities as an investor and fiduciary, we are constantly examining a wide range of these issues. At times, some rise to a greater level of urgency than others, both because of the need for action and because we believe current action can produce fruitful results.

Among the many issues we will address in 2010 are four where we believe we may be able to make a particular difference at this time. We will be stressing these issues in the coming year and reporting to you on our actions and accomplishments and on improvements we see in these areas.

• Toxins in Consumer Products
• Climate Change
• Corporate Social Responsibility Disclosure
• Social Returns of Community Development Financial Institutions

Meanwhile we continue to work on a wide range of other issues including human rights, labor standards, and peace and security. For more information on these ongoing commitments, see on our website our Global Investment Standards, Social Impact Updates, and Proxy Voting Guidelines, and details on our actual proxy votes.

Toxins in Consumer Products

Recent scandals stemming from contamination of consumer products around the world — pesticides and other toxic chemicals in our foods, contaminants in infant formula, toxic chemicals in electronic products, asbestos in the workplace and consumer products — have made this a time to raise awareness on this crucial issue. We will:

• Communicate with companies on pesticides and other toxic chemicals in food products and report on progress in their elimination
• Join with campaigns to reduce toxic chemicals in electronic products and report on their progress
• Report on the emerging issues of asbestos in the workplace and consumer products in Asia
• Post background on this topic and tips for what you can do

Climate Change

Climate change is an issue that will be with us for many years to come, but the time for action is now. We will join with the concerted efforts of many other organizations to bring pressure on corporations and governments to address this issue before irreversible climate change occurs. We will:

• Publish position papers on issues such as nuclear power, oil sands, carbon capture and storage, and sustainable palm oil.
• Encourage corporations to disclose their carbon footprint, particularly through our work with the Carbon Disclosure Project, and report on progress toward this goal
• Promote sustainable forestry by forestry and consumer product companies and report on progress toward this end.
• Post background on this topic and tips for what you can do

Disclosure of Corporate Sustainability Data

The movement toward mandatory corporate social and environmental disclosure is growing worldwide. This data is crucial to all members of society, not just investors, so that we can know how companies impact their employees, customers, suppliers, the environment, and the communities in which they operate. We believe we have reached a tipping point on the road to mandatory CSR reporting. For this reason, we will:

• Advocate an increase in mandated and voluntary social and environmental reporting through a variety of means and report on progress toward this goal
• Communicate with companies and stock exchanges to urge better disclosure of environmental and social data, and report on progress toward this goal
• Collaborate with the Social Investment Forum and others to encourage greater social and environmental disclosure and report on progress toward this goal
• Post background pieces on this topic and tips for what you can do

Social Returns of Community Development Financial Institutions

Today’s financial crises have made us all too aware of the limitations of the current financial services industry and its ability to serve those most in need. Community Development Financial Institutions (CDFIs), by contrast, make it their mission to provide much needed services to low-income neighborhoods and the unbanked. However, their broad societal benefits too often go undocumented and unrecognized. To help raise awareness of the contributions of CDFIs, we will:

• Publish a background paper on how the societal benefits of CDFIs are being measured and reported
• Work with CDFIs to improve their measurement and reporting on the societal benefits of their operations, and report on progress toward this goal
• Report on the Domini Social Bond Fund’s Impact Gradient and on some of the higher-scoring investments that are part of the Fund
• Post background pieces on this topic and tips for what you can do