KLD Research & Analytics, Inc., of Boston, has launched the Global Climate 100 Index, made up of companies that offer near-term solutions to global warming through renewable energy, alternative fuels, clean technology, and efficiency, for investors who seek both returns and global sustainability.
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KLD Launches Global Climate 100 Index
Includes Companies Taking Positive Steps to Reduce Global Warming
Boston, MA, July 11, 2005 -- KLD Research & Analytics, Inc., an independent investment research and index provider, has announced the launch of the KLD Global Climate 100SM Index, the first global index focused on solutions to climate change.
KLD created the Global Climate 100 Index in response to growing demand from institutions and individuals for investment strategies that address global warming.
The Global Climate 100 Index is made up of companies that KLD expects will provide near-term solutions to global warming while offsetting the longer-term impacts of climate change through renewable energy, alternative fuels, clean technology and efficiency. KLD's Global Climate 100 Index is designed for investors seeking specialized strategies to invest in these types of companies.
"The Global Climate 100 includes companies making meaningful contributions
to the commercialization of renewable energies such as solar and wind,
future fuels such as natural gas and hydrogen, and innovations or
applications of new technologies that help to reduce emissions of greenhouse
gases," said Peter D. Kinder, founder and president of KLD Research &
Analytics, Inc. "The Global Climate 100 are companies working on solutions
to climate change. These companies alone won't 'fix' global warming, but the
Index focuses investors' attention on where the possibilities lie."
"Climate change," Kinder continued, "has profound implications for political
and environmental sustainability and for the lives of future generations,
especially in the developing world. The Group of Eight nations (G8) have
underscored the issue's urgency by focusing on global warming and the
environment at their meetings to be held July 6-8 at Gleneagles, Scotland."
According to Thomas Kuh, Managing Director of KLD Indexes, industry momentum
indicates strong demand for the Global Climate 100 Index. This year, the
California Public Employees' Retirement System (CalPERS) and the California
State Teachers' Retirement System (CalSTERS) created their Green Wave
Initiative, committing $1.5 billion to investments in innovative and
responsible environmental companies. The Investor Network on Climate Risk,
a group of pension funds and other institutional investors, launched a
program to raise awareness about the financial risks posed by climate
"Pension funds are concerned about the financial risks associated with
climate change," said Kuh. "As fiduciaries with a long time horizon, they
are looking for new strategies to integrate these factors into their
investments. The Global Climate 100 looks ahead to show investors where the
opportunities to address global warming will come from."
KLD developed the Global Climate 100 Index in partnership with the Global
Energy Network Institute (GENI), a non-profit research and education
organization (www.geni.org). GENI will receive a portion of Index licensing
fees, which will be dedicated to furthering its mission of promoting the
development of electric power networks between nations and continents, with
an emphasis on tapping abundant renewable energy resources.
"The Global Climate 100's promise for bringing major investment to "green"
energy helps our work of creating a prosperous and sustainable future for
all humanity," said GENI President Peter Meisen. "The solutions to energy
security and climate change are found in these leading companies. This
Index offers a powerful vehicle for attracting that investment."
The International Energy Agency projects that $10 trillion dollars will be
invested in energy systems in the next three decades to meet growing global
demand. "Climate change is a global issue, so it is not surprising that
companies around the world are developing technologies, products and
applications to respond to the problem," Kuh added.
Kinder concluded, "Renewable and efficient technologies are presently
growing their market share, and the KLD Global Climate 100 Index will be the
benchmark for investors who seek both returns and global sustainability."
Profile of Global Climate 100 Index
Company Highlights (Table 1)
According to KLD Senior Analyst, Andrew Brengle, "Both small pure-play
companies and large diversifieds are staking their futures on the promise of
renewable energy and alternative fuels."
Brengle continued, "Germany's Solon AG  makes photovoltaics that are
built into the roofs of new buildings and the UK's D1 Oils  produces
biodiesel from vegetable oil. General Electric , already a leader in
energy efficient products, has invested heavily in wind and solar.
Companies building the infrastructure for more efficient energy delivery and
storage include US-based Echelon Corporation  with computerized energy
monitoring systems and Japan's GS Yuasa Corporation  with innovative
battery technologies." [See Appendix One for Source Data, Footnotes 1-5]
Large and Small Capitalization Companies (Table 2) The holdings represent
leading-edge companies, large and small. The diverse nature of these
companies means that the Index includes some small-cap companies in niche
markets as well as some of the world's largest companies in industries that
have the greatest impact on climate change. Table 2 shows the constituent
The KLD Global Climate 100 Index allocates 1% to each of the 100 securities
in the index to assure that large-cap companies do not unduly influence the
performance of the index and to channel capital to small companies committed
to preventing global climate change. This provides higher exposure to
small-cap companies and lower exposure to large-cap companies than a
cap-weighted index. Each quarter, KLD rebalances the Index to bring each
holding back to 1%.
Sector Diversification of the Index (Table 3) Companies in the KLD Global
Climate 100 Index fall into three categories with roughly equal
representation: renewable energy, future fuels, and clean technology and
efficiency. Since it includes companies from a broad range of sectors -
including oil, automotive, utilities, and financial services - the Global
Climate 100 Index is more diversified than benchmarks for the renewable
energy industry or the broader energy sector.
Geographic Representation of the Index (Table 4) Companies in the Global
Climate 100 come from 15 countries, reflecting a broad geographical
distribution. Fifty-four percent of the companies are from North America,
26% from Europe and 20% from the Asia-Pacific region.
About KLD Research & Analytics, Inc.
KLD Research & Analytics, Inc. (www.kld.com) is an independent investment
research and index company. Its products and services enable institutional
money managers and investors to integrate social and environmental factors
into their investment strategies. KLD helps money managers gather assets,
manage risk and control costs. The company is known for the 15-year-old
Domini 400 Social Index, the world's first index to benchmark the
performance of equity portfolios subject to multiple social screens. Today
more than $8 billion is invested in funds based on KLD Indexes.
About Global Energy Network Institute
The Global Energy Network Institute (www.geni.org
a non-profit research and education organization. GENI advocates the
interconnection of electric power networks between nations and continents,
with an emphasis on tapping abundant renewable energy resources - a strategy
intended to reduce global tensions, grow economies and improve health and
living standards worldwide.