KLD Powers Seventh Annual Business Ethics 100

KLD Joins the Chicago Climate Exchange (CCX)

KLD Powers Seventh Annual Business Ethics 100

          KLD's independent research and analysis powered the 2006 edition of the prestigious Business Ethics 100 Best Corporate Citizens (BE100). Released on April 27th 2006, the BE100 recognizes US-listed firms that excel at serving a variety of stakeholders with excellence and integrity.

          "The 100 Best Corporate Citizens ranking helps companies determine where the best practices with respect to corporate citizenship are at any given time - and move toward those practices themselves," said co-creator Prof. Sandra Waddock.

          Among CEO's, the BE100 is regarded as the third most influential corporate ranking, behind Fortune magazine's "Most Admired Companies" and "100 Best Companies to Work For," according to a PRWeek/Burson-Marsteller CEO Survey.

          "The closely-watched survey has gained national recognition as an indicator of best practices in the area of corporate social responsibility," according to media reports.

How The Business Ethics 100 Is Rated

          The BE100 ratings framework was originally developed in 1997 by Boston College Professors Sandra Waddock and Samuel Graves, together with Business Ethics magazine editor Marjorie Kelly and KLD Research & Analytics, Inc.

          The ranking relies on KLD's SOCRATES database of over 3000 US-listed companies with bi-weekly research updates. Ratings are based upon KLD's seven ESG issue areas (community, governance, diversity, employees, environment, human rights, and product) and a financial stakeholder category (annualized 3-year shareholder total return).

Impact on Media and Companies

          The 2006 BE100 release led to more than 50 companies approaching KLD for more information on their KLD Socrates profile, mostly on how the ratings are created, what CSR issues KLD covers, and how frequently the index is delivered.

          Media reported on the BE100 launch from KLD's hometown in Massachusetts to as far away as Germany, the UK and Australia. Both mainstream media as well as the active blogger community covered BE100 and company reaction, noting "a move up or down the list from year to year can provide either a carrot or a stick to motivate better corporate behavior".

          The response has been overwhelmingly positive. Most companies issued PR releases, with comments like "high honor", "gratifying " and "welcome recognition ". The competitive corporate spirit shone through. BE100 lead research analyst, Camille Aylmer, reports that a commonly asked question was: "In our peer group, how did we stack up?" Of course, the enthusiasm of the tone was directly related to whether the firm ranking moved up, or slipped down.

          "[The BE100] creates a constructive competitive context", says Prof. Waddock, "a sort of virtuous cycle around managing responsibility."

          To learn more, visit KLD's Business Ethics 100 homepage.

KLD Joins the Chicago Climate Exchange (CCX)
By: Jennifer Dziubeck, Research Analyst

          KLD has joined the Chicago Climate Exchange (CCX) as an associate member. This is another step for KLD to become a greener, more environmentally friendly office. Joining CCX was one of the steps recommended by our employee-run SUSTAIN committee, which was created in June 2005. The committee works to develop and implement sustainable business practices at KLD.

The Chicago Climate Exchange

          CCX is the world's first and North America's only legally binding multi-sectoral, rule-based and integrated greenhouse gas emission registry, reduction and trading system. Associate members are committed to the purchase of Carbon Financial Instruments (CFIs) to offset their greenhouse gas emissions. CCX was initially conceived as the Environmental Products Initiative (EFI) in 2000. Conducted under a grant by the Joyce Foundation and administered by Northwestern University's Kellogg Graduate School of Management, the EFI developed and traded new environmental, financial and commodity markets.

KLD's Audit

          KLD recently completed its first audit of its greenhouse emissions. Results of this audit showed that in 2005 KLD indirectly emitted approximately 250 metric tons of carbon dioxide, primarily through electricity usage and also through business-related travel and employee commuting. As part of its commitment as an associate member of CCX, KLD will purchase Carbon Financial Instruments (CFIs) equal to the amount of its total indirect emissions. By doing so, KLD will offset the company's emissions that would otherwise contribute to global climate change. This purchase, which will be made by the fall of 2006, will make KLD a carbon neutral company.