Thoughts on People, Planet & Profit

With special thanks to Jurriaan Kamp for giving me the opportunity to share my thoughts through these columns over the years.

Copyright © 2021 by Amy Domini

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except as permitted by U.S. copyright law. For permission requests, contact [email protected].

ORDERING INFORMATION

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Library of Congress Cataloging-in-Publication Data

ISBN: 978-1-7377091-3-8

ISBN: 978-1-7377091-1-4 (e-book)

FOR MIKE, MAGGIE, ENZO, AND

THE LITTLE GIRLS OF TOMORROW

TABLE OF CONTENTS

People

Money makes the world go round

Waking the sleeping giant

Not everything that counts can be counted

Strengthening the weakest link

People, planet, purchasing power

No more business as usual

Making slavery history

The secret’s in the sauce

Of laughter and land mines

Teach your children well

War is hell

The power of the people

Fairness will prevail

Otherness

Blown away

Play your best card

Innocence

The cycle of life

Planet

Simple steps

A planet is a terrible thing to waste

Repaving paradise

Preserve our wonder

Diving into the data

Back to nature

Damned lies and statistics

What is normal?

Saving energy and buying time

Counting carbon

Water, water, everywhere

Ode to the ocean

Harmful chemicals we can do without

Silent spring, again

Live off the land

The corn dilemma

Slowing down fast food

What the wilderness brings

Profit

A (non-) sentimental education

Land ho!

Medicine for economies

What we know can’t hurt us

Asking questions, changing companies

Carrying the torch

Localism takes hold

The slow road to growth

The buck starts here

Credit shouldn’t cost this much

Democratic capitalism

Broken homes

A different kind of home security

Trial by corporation

Get invested in change

Hell no, we won’t invest

The investor’s dilemma

On the corporate frontline

A more socially responsible strategy

What the world needs now

About the author

...it all begins with seeing simple truths..

PREFACE

hirty years ago, I found my passion for investing with purpose – a positive purpose for our future. From that day forward I have dedicated myself to spreading the word: if we are to live on a green planet and if we are to allow every human to thrive, investors must play an active role. The future I envisioned for my grandchildren could not come about without investing in it. And so, it became my mission to convince investors to join me, to guide dollars into the creation of that vision.

Through providing standards for research, supporting academic research, and bringing together networks of advocates for investors who care, I played a role in every stage of this concept and nurtured it until impact investing was a field. Slowly, the numbers have proved me—and moved me. In 2020, according to The Forum for Sustainable and Responsible Investment (US SIF), 33 percent of the $51.4 trillion in total U.S. assets under professional management were invested in sustainable, responsible, and impact investing strategies. Today, many view impact investing as a growing trend. But for me, it will always be a proud tradition.

To celebrate the anniversary of my impact investing journey, I have chosen to share this collection of columns. My hope in writing these is to express in simple terms what the collective action of caring investors could make possible. Written between 2007 and 2016, the collection is sorted into three sections: People, Planet, and Profit. The triple P bottom line is widely acknowledged to be the purpose of responsible investors worldwide.

When I first thought of creating a vehicle that individual investors could use as a means of joining together to define what is right and ethical, such thinking was considered both revolutionary and naive. Investing, it was argued, is innately amoral. Investors do what they do and government or society does what it does, the argument went.

That seemed illogical to me. Any thinking person could see that investors would always push for profit and that profit would be most easily gained by stealing from the commons, from our natural ecosystem, and indeed, from our more vulnerable citizens. Further, any rational person could understand that investors are also people, and that their human nature should desire a verdant planet occupied by peaceful and fulfilled people. Finally, financial investments are massive and coordinated globally. It was only logical that they be utilized to help humankind to achieve its utmost potential.

Of course, if we wanted to, we could focus on what’s discouraging. Over the past thirty years we’ve witnessed environmental destruction, the growth of inconceivable wealth and income gaps, and petty wars fought with horrific weaponry. But despite this distressing backdrop, an ever persistent set of investor voices has channeled their dollars positively and pushed for better, knowing that money talks, even in optimistic ways.

When we launched our first mutual fund, the majority in South Africa had no vote. That came about three years later. Corporate social responsibility reports, chief sustainability officers, research houses dedicated to environmental, social, and governance discovery, stock exchanges mandating the disclosure of the same as a qualification for listing, academic careers in business schools for positively impacting our lives—none of this existed. All of it came into being as the result of our investors, and those like them, joining together to help define what is best for us all, joining together to make it possible.

Domini Impact Investments LLC is a small asset manager amongst financial giants. But we have played a key role in legitimizing and advocating for people who believe that caring investors are essential to achieving ecological sustainability and universal human dignity. I am a fortunate woman. I can look back on the work of the firm I helped to create and truly say that we have made a difference. But it all begins with seeing simple truths. It begins with the collective realization that the secret to making an impact is small. Together, we can each do something—and this, in the end, is everything.

WRITTEN JULY 2007

Money makes the world go round

Many people understand that when you’re buying food, price is not the only consideration. It’s also important to think about the additives and pesticides you’re putting into your body, whether certain kinds of fish are being driven to extinction, and how the people who grow your vegetables are being treated.

People are beginning to ask similar kinds of questions about their investments. By putting their money into the stocks of certain companies, and then pressing those companies to do the right thing, investors are starting to create change. Being a conscious investor is a lot like being a conscious shopper.

Once people realize certain options are open to them, they start down paths that can transform their lives. For instance, one of my local supermarkets specializes in healthy and organic food. I was first attracted to it because of the wide selection of fresh fish, beautifully displayed on crushed ice. Returning frequently to the store, I started paying attention not only to whether the fish looked and smelled good, but whether they were caught in the wild or farm-raised using organic methods. Eventually I started seeking out fish that were caught or raised locally. The choices the store offered actually turned me into a more conscious shopper.

Something similar happened to me years ago when I was working as a stockbroker. The financial industry often assumes that investors care about nothing but making money, but as I got to know my clients I realized there was more to them than that. They cared about a lot of things—the forests and birds, issues of war and peace, their children’s health—in addition to making money. So when I was asked to recommend a company that was on the verge of getting a big military contract, I realized I didn’t want to ask the compassionate people who were my clients to invest in killing machines.

Like many important ideas, this one was pretty simple: The way you invest your money matters. If you’re a doctor or care about health issues, it makes no sense to invest in tobacco companies. If you’re a birdwatcher, it makes no sense to invest in pesticide manufacturers that kill birds. That’s when I really started connecting the dots. It became obvious to me that we should invest our dollars according to the same values that we use to live our lives.

One recent example brings us back to the supermarket. The families of coffee growers were going hungry in many countries because the prices the growers received for their crops in the world market no longer covered their expenses in growing the coffee. After dialogue with Procter & Gamble, one of the companies in which my socially responsible fund invests, the company agreed to begin buying fair trade coffee, which guarantees the growers a minimum price per pound. It’s now one of the major U.S. buyers. Of course, conscious shoppers who seek out fair trade products create the demand for this coffee and play an important role in supporting smallholder coffee growers throughout the world.

As we sometimes say, money makes the world go round. A conscious approach to shopping and investing can profoundly affect the way that it turns.

WRITTEN MARCH 2008

Waking the sleeping giant

In 1929, when the U.S. stock market crashed, less than 10 percent of American families owned stock. Today, despite the increasing gap between rich and poor, roughly 50 percent of American families are stockholders. In Europe, and around the world as well, stock ownership is being democratized. Millions of ordinary people are now in the market. But relatively few of those new stockholders actually own company shares directly. Far more invest through intermediaries. They may invest in mutual funds, or their employers may invest in pension funds on their behalf.

In all these cases, an individual’s money becomes part of a vast pool of assets, made up of mutual funds, pension funds, public endowments, ETFs, or unit trusts. In a similar way, non-profit organizations pool small donations from thousands of individual donors and invest them in charitable trusts, foundation funds, and university endowments.

The institutional investors that regulate these asset pools are giants, controlling assets that range from hundreds of millions to many billions of dollars. Regular people own the assets, but institutions do the investing.

Meanwhile, the financial markets have been changing in other ways—notably by becoming single-mindedly focused on short-term profit. Risk has been redefined as little more than the risk of missing next quarter’s earnings. But in the pursuit of near-term profits, corporations overlook many types of risk that don’t appear on an income statement: risks of corporations exploiting their workers, poisoning the land and water, contributing to climate change, and producing unsafe products.

Many enlightened investors have come to understand these risks, and have elected to invest in