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Domini Impact Investments Releases Report on Systemic Approaches to Managing Macrorisk in Investing
[December 05, 2018]

Domini Impact Investments Releases Report on Systemic Approaches to Managing Macrorisk in Investing

Domini Impact Investments, a leading impact investing firm, has just released a report detailing their development of system level approaches to managing the world's greatest sustainability challenges. Read the full report here.

Investors could benefit from attempting to influence the environmental, social, and financial systems that impact the stability and growth of the market but conceptualize themselves as separate and unable to do so. Given the increasingly complex and interlinked challenges in today's world, Domini saw an urgent need to move past this outdated notion and begin an effort to develop ways to positively influence these systems for the benefit of their shareholders and the planet.

Domini is concerned that current approaches to risk and uncertainty mitigation rarely trace risks to their root causes, thus failing to thoroughly address them. The project sought to better understand the dynamics of several big systemic risk areas, including econmic equality and biodiversity, to develop investor approaches for managing these areas.

The report details the theory and genesis of this project, and the work that Domini carried out to improve system outcomes in eight areas of concern. In each of the issue areas Domini teams analyzed, they found that risk and unsustainable outcomes are driven by the system-level market paradigm. The paradigm's focus on short-term wealth extraction is driving destructive behaviors that undermine investors' long-term financial sustainability by undermining environmental and social systems.

A system-level approach to managing risk and opportunity therefore must encompass a way to reverse this extractive dynamic. Domini sought ways to shift toward a paradigm where wealth creation- additive, healthy outcomes that produce a rising tide of shared investment opportunity- can thrive through management of system-level risks and consideration of long-term rewards.

This shift will occur through the development of social, human and natural capitals in addition to financial capital, a process which can only be completed collectively. Other investors must therefore take up the challenge of confronting macrorisks and opportunities, like those embodied in the SDGs, from a systemic approach.

A webinar for institutional investors and financial professionals on the implications of systemic approaches and the report findings will take place next Tuesday, December 11 at 2 PM EST, and include a panel discussion with Rob Riciglinano of The Omidyar Group, Jon Lukomnik of Sinclair Capital and the Investor Responsibility Research Center Institute (IRRCi), Carole Laible, CEO of Domini, and Steve Lydenberg, Partner for Strategic Vision at Domini, and Founder and CEO of the Investment Integration Project (TIIP).

Domini Impact Investments LLC is a women-led SEC (News - Alert) registered investment adviser specializing exclusively in impact investing. They serve individual and institutional investors who wish to create positive social and environmental outcomes while seeking competitive financial returns. They apply social, environmental, and governance standards to all their investments, believing they help identify opportunities to provide strong financial rewards to their fund shareholders while also helping to create a more just and sustainable economic system. For more information, visit

This is for financial professional and institutional use only and is not approved by Domini Impact Investments LLC or its affiliates for distribution to retail investors.

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