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Our Standards Don’t Stand Still: 2021 Updates

Excerpted from The Domini 2021 Impact Report

In 2021, we fine tuned our approach to corporate climate change policies and practices, cyberwarfare risk of sovereigns, and company efforts to address systemic racism. We asked our Strategic adviser, Steve Lydenberg, to give us a few highlights regarding these updates:

Raise the Bar: Climate Commitments and Actions
Update: Domini expanded its expectations of climate commitments and actions from companies.

Q: Why?

Steve Lydenberg Partner, Strategic Adviser

The world now faces a decisive moment of opportunity in which it can still mitigate and adapt to the impact of climate change. Corporations play a key role and require thoughtful, robust climate action plans. These plans should incorporate thorough assessments of risks and opportunities across their markets and industries, and recognize the intersection between environmental issues and social justice in the lowcarbon transition. We must deliberately evaluate how the crisis and transition impact our global community and focus on a just transition. The current climate crisis requires a response by all and action with urgency.

Q: How?

Domini has developed a set of standards and expectations for companies, which help guide our research and interaction with the companies we invest in. We go beyond the assessment of greenhouse gas emissions reductions. We look for data that companies are working to lower their climate impact by shifting their capital expenditure to energy efficiency, renewable energy, recycling and circular economy initiatives, business transformation, physical risk mitigation, and a just transition.


Defining New Weapons: Cyberwarfare
Update: Domini developed and adopted cyberwarfare considerations for its sovereign debt analysis.

Q: Why?

There has been a substantial surge in cyberattacks over the past two years, including a series of ransom- ware attacks against governments, companies, and individuals—many of which imposed enormous costs. Furthermore, in our opinion, certain types of cyberwarfare can be viewed as weapons of mass destruction, for example, those that target electric grid and infrastructure systems, power plants, water treatment facilities, hospitals, transportation systems, nuclear power, and weapons facilities.

Q: How?

Some national governments have used major cyberattacks as a part of broader cyberwarfare strategies. They are notable outliers in terms of their track record of attacks, intended targets, and capabilities. We exclude the sovereign debt of countries most extensively involved in cyberwarfare attacks as we recognize these attacks as weapons of mass destruction.


Equality for All: Addressing Systemic Racism
Update: Domini updated its diversity standards and expressly included its concern of systemic racism in its global community theme.

Q: Why?

Issues of racism and discrimination cut across virtually all the topics raised in our standards, from environ-mental justice to board diversity. We believe investors can play an important role in encouraging corporations on these issues. Addressing systemic racism requires deliberate and proactive efforts from all stakeholders. Companies should acknowledge and make concerted efforts to confront adverse impacts on human rights in their operations.

Q: How?

For decades, Domini has considered issues of diversity and inclusion as critical to achieving our goal of universal human dignity. In 2021, we further strengthened our focus by emphasizing the systemic aspects of racism and sexism. We have integrated the assessment of products and services that help mitigate these specific challenges at core business levels. We expect companies not only to prevent discrimination, but to implement best practices by actively mitigating the current challenges of systemic racism and sexism, as well as other forms of inequality, by identifying the existing gaps and opportunities for their products and services.


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.

The Domini Funds are not bank deposits and are not insured. Investing involves risk, including possible loss of principal. The market value of Fund investments will fluctuate. The Domini Impact Equity Fund is subject to certain risks including impact investing, portfolio management, information, market, recent events, and mid- to large-cap companies risks. The Domini International Opportunities Fund is subject to certain risks including foreign investing, geographic focus, country, currency, impact investing, and portfolio management risks. The Domini Sustainable Solutions Fund is subject to certain risks including sustainable investing, portfolio management, information, market, recent events, mid- to large-cap companies and small-cap companies risks. The Domini Impact International Equity Fund is subject to certain risks including foreign investing, emerging markets, geographic focus, country, currency, impact investing, and portfolio management risks. Investing internationally involves special risks, such as currency fluctuations, social and economic instability, differing securities regulations and accounting standards, limited public information, possible changes in taxation, and periods of illiquidity. These risks may be heightened in connection with investments in emerging market countries. The Domini Impact Bond Fund is subject to certain risks including impact investing, portfolio management, style, information, market, recent events, interest rate and credit risks.

The Adviser’s evaluation of environmental and social factors in its investment selections and the timing of the Subadviser’s implementation of the Adviser’s investment selections will affect the Fund’s exposure to certain issuers, industries, sectors, regions, and countries and may impact the relative financial performance of the Fund depending on whether such investments are in or out of favor. The value of your investment may decrease if the Adviser’s or Subadviser’s judgement about Fund investments does not produce the desired results. There is a risk that information used by the Adviser to evaluate environmental and social factors, may not be readily available or complete, which could negatively impact the Adviser’s ability to evaluate such factors and Fund performance.Unless otherwise stated the information in this report is for the 2021 calendar year.

This Impact Report is provided for informational purposes only. Nothing herein is to be considered a recommendation concerning the merits of any noted company, or an offer of sale or a solicitation of an offer to buy shares of any Fund or company referenced herein. Such offering is only made by prospectus, which includes details as to the offering price and other material information. Please read the prospectus carefully before investing.

All studies referenced herein were conducted by independent third parties. They have not been independently verified by Domini and are provided for informational purposes only. The inclusion of these studies herein does not constitute financial advice. We do not attest to the methodologies used.

The Domini Funds are only offered for sale in the United States. The Domini Funds are distributed by DSIL Investment Services LLC (DSILD), Member FINRA. Domini Impact Investments LLC (Domini) is the Funds’ Adviser. Domini Impact International Equity Fund and Domini Impact Bond Fund are subadvised by Wellington Management Company LLP. DSILD and Domini are not affiliated with Wellington Management Company LLP. Domini Impact Equity Fund, Domini International Opportunities Fund and Domini Sustainable Solutions Fund are subadvised by SSGA Funds Management, Inc. DSILD and Domini are not affiliated with SSGA Funds Management, Inc.

Domini Impact Investments®, Domini®, Investing for Good®, and The Way You Invest Matters® are registered service marks of Domini Impact Investments LLC (“Domini”). Domini International Opportunities Fund℠, Domini Sustainable Solutions Fund℠, Domini Impact Equity Fund℠, Way You Invest Matters® are registered service marks of Domini Impact Investments LLC (“Domini”). Domini International Opportunities Fund℠, Domini Sustainable Solutions Fund℠, Domini Impact Equity Fund℠, Domini Impact International Equity Fund℠, Domini Impact Bond FundSM℠ are service marks of Domini. The Domini Impact Investment Standards is copyright © 2006-2022 by Domini Impact Investments LLC. All rights reserved. 2/22


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Domini Impact Investments LLC (Domini) is the Funds’ investment manager. The Funds are subadvised by unaffiliated entities.

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