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Boston, MA,
July 5, 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 change.
"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 [1] makes photovoltaics that
are built into the roofs of new buildings and the UK's
D1 Oils [2] produces biodiesel from vegetable oil. General
Electric [3], 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 [4] with
computerized energy monitoring systems and Japan's GS
Yuasa Corporation [5] with innovative battery technologies."
[See Appendix One for Source Data, Footnotes 1-5]
Table 1:
Company Highlights
|
Company
|
Product
or Activity
|
|
Johnson
& Johnson
|
Largest
corporate user of renewable energy in the U.S. [6]
|
|
FPL
Group, Inc.
|
Largest
U.S. wind-power portfolio accounting for 43% of
U.S. wind energy [7]
|
|
BT
Group Plc
|
Signed
the world's largest green energy contract in 2005
[8]
|
|
Air
Liquide SA
|
Largest
industrial gas supplier, active in all aspects of
hydrogen fuel cells [9]
|
|
Sharp
Corporation
|
Largest
market share of solar cell market in 2004; expects
25% growth by 2006 [10]
|
|
Syntroleum
Corporation
|
Clean
diesel fuel from natural gas deposits normally flared
off [11]
|
|
Energy
Developments Ltd.
|
Generates
power from landfill gas [12]
|
|
Vestas
Wind Systems A/S
|
World's
largest wind turbine producer [13]
|
|
Iberdrola
SA
|
World's
largest wind energy generator in 2004 [14]
|
|
Toyota
Motor Corporation
|
Holds
64% of hybrid car market; plans to sell 300,000
hybrids by 2006 [15]
|
|
Ormat
Technologies, Inc.
|
Generates
power from geothermal and cogeneration plants [16]
|
|
Xantrex
Technologies, Inc.
|
Products
convert raw electricity from solar plants into high-quality
power [17]
|
|
Contact
Energy
|
Generates
electricity using hydroelectric, steam, and natural
gas [18]
|
|
Hydrogenics
Corporation
|
Develops
hydrogen fuel cell technologies [19]
|
|
Conergy
AG
|
Makes
solar power water pumps, panels and batteries [20]
|
[See Appendix One for
Source Data, Footnotes 6-20]
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 market capitalization.
Table 2:
Constituent Market Capitalization
|
Largest
Companies by Market
Capitalization ($ Millions)
|
|
Smallest
Companies by Market Capitalization
($ Millions) |
|
General
Electric Company
|
387,646
|
|
Japan
Wind Development Co., Ltd
|
190
|
|
BP
Plc
|
222,010
|
|
Xantrex
Technology, Inc.
|
172
|
|
Johnson
& Johnson
|
197,235
|
|
Solon
AG
|
131
|
|
Toyota
Motor Corporation
|
129,028
|
|
D1
Oils Plc
|
129
|
|
United
Parcel Service, Inc.
|
78,275
|
|
Azure
Dynamics Corporation
|
112
|
|
3M
Company
|
59,179
|
|
Sunways
AG
|
87
|
|
United
Technologies Corporation
|
54,335
|
|
Biofuels
Corporation Plc
|
83
|
|
DuPont
Company
|
46,816
|
|
UQM
Technologies, Inc.
|
70
|
|
Honda
Motor Co., Ltd.
|
46,352
|
|
Romag
Holdings Plc
|
69
|
|
Matsushita
Electric Industrial Co., Ltd.
|
37,768
|
|
Beacon
Power Corporation
|
51
|
Equal
Weighting
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.
Table 3:
Sector Representation
| Sector
Diversification |
|
Basic
Materials
|
4%
|
|
Communications
|
1%
|
|
Consumer,
Cyclical
|
12%
|
|
Consumer,
Non-cyclical
|
1%
|
|
Energy
|
13%
|
|
Financial
|
4%
|
|
Industrial
|
30%
|
|
Technology
|
4%
|
|
Utilities
|
31%
|
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.
Table 4:
Geographic Representation
|
Geographic
Breakdown
|
| United
States |
46%
|
| Canada |
8%
|
| Europe |
18%
|
| United
Kingdom |
8%
|
| Japan |
16%
|
| Asia/Oceania |
4%
|
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)
is 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.
###
Glossary
of Terms Used:
Clean
Technology: technology that reduces or avoids creating
energy related emissions of greenhouse gases into the
atmosphere. In other contexts, the term is applied to
technologies that reduce water and hazardous materials
pollution.
Climate
Change: significant, long-term shifts in the underlying
drivers of weather patterns and average global temperature.
Scientists posit that emissions from human activities
could cause radical and inhospitable changes in global
climate over hundreds of years.
Future
Fuels: natural gas, gas-to-liquids, biofuels, hydrogen
for fuel-cells, landfill methane, and other liquid or
gaseous alternatives to coal and petroleum.
Global
Warming: the warming of average temperatures around
the world resulting from the accumulation of heat-trapping
gases in the earth's atmosphere. Such warming has been
linked to more frequent hurricanes and severe drought
as well as permanent changes in climate.
Greenhouse
Gases: a series of gases known to trap the sun's heat
in the earth's atmosphere, the chief among which are carbon
dioxide, methane, nitrous oxide, and certain man-made
fluorocarbons.
Renewable
Energy: energy derived from biomass, geothermal sources,
hydroelectric dams, solar radiation, ocean tides and waves,
and wind.
Appendix
One
KLD Research & Analytics, Inc.
Source Data for Quotes, Company Highlights Table 1
| [1]
Solon AG, Makes photovoltaics that are built into
the roofs of new buildings |
| Source:
|
Solon AG company
website |
| |
|
| [2]
D1 Oils plc., Produces biodiesel from vegetable
oil |
| Source:
|
D1
Oils Plc company website |
| |
|
| [3]
General Electric Company, Efficiency leader invested
heavily in wind and solar |
| Source:
|
Joel
Makeower, May 2005, "'ecomagination':
Inside GE's Power Play", Strategic Thinking
column, GreenBiz.com
General Electric
Company website
GE's
ecomagination website |
| |
|
| [4]
Echelon Corporation, Produces computerized energy
monitoring systems |
| Source:
|
Echelon
Corporation company website |
| |
|
| [5]
GS Yuasa Corporation, Produces innovative battery
technologies |
| Source:
|
GS
Yuasa Corporation company website |
| |
|
| [6]
Johnson & Johnson, Largest corporate user of renewable
energy in the US |
| Source:
|
U.S.
EPA Green Power Partnership website
Johnson
& Johnson company website |
| |
|
| [7]
FPL Group, Inc., Largest US wind-power portfolio
accounting for 43% of US wind energy |
| Source:
|
Sustainable
Energy Institute and Numark Associates, Inc., November
2004, "U.S.
Business Actions To Address Climate Change: Case Studies
of Five Industry Sectors", GreenBiz.com
FPL
Group, Inc. company website |
| |
|
| [8]
BT Group plc., Signed the world's largest green
energy contract in 2005 |
| Source:
|
Dow
Jones International News, October 14, 2004, "BT
To Source Most UK Electricity From Green Energy"
(c) 2004 Dow Jones & Company, Inc.
BT Group Plc company
website |
| |
|
| [9]
Air Liquide SA, Largest industrial gas supplier,
active in all aspects of hydrogen fuel cells |
| Source: |
Hoovers
Air
Liquide company website (enter 'fuel cell' into
website search engine) |
| |
|
| [10]
Sharp Corporation, Largest share of solar cell
market in 2004; expects 25% growth by 2006 |
| Source:
|
Reuters
News, March 30, 2005, "Sharp says to beat 04/05
solar cell sales target", (c) 2005 Reuters Limited
Sharp
Corporation company website |
| |
|
| [11]
Syntroleum Corporation, Clean diesel fuel from
natural gas deposits normally flared off |
| Source:
|
Syntroleum
Corporation company website |
| |
|
| [12]
Energy Developments Ltd., Generates power from
landfill gas |
| Source:
|
Energy
Developments Ltd. company website |
| |
|
| [13]
Vestas Wind Systems A/S, World's largest wind
turbine producer |
| Source:
|
Dow
Jones International News, June 27, 2005, "NEWS
SNAP: Vestas Defends Openness, Outlook", (c)
2005 Dow Jones & Company, Inc.
Financial Post, November 30, 2004, "Gale force
winds of competition: Wind industry booming: But competition
in hardware suppliers gouging profits", (c) 2004
National Post
Vestas Wind Systems
A/S company website |
| |
|
| [14]
Iberdrola SA, World's largest wind energy generator
in 2004 |
| Source:
|
Renewable
Energy Report, May 30, 2005, "At wind industry
giant Gamesa, factions battle over board of directors
membership", Copyright 2005 McGraw-Hill, Inc.
Iberdrola
SA company website |
| |
|
| [15]
Toyota Motor Corporation, Holds 64% of hybrid
car market; plans to sell 300,000 hybrids |
| |
by
2006 |
| Source:
|
AFX
Asia, May 18, 2005, "RPT - Toyota to build hybrid
cars in Kentucky", (c) 2005, AFX Asia.
Toyota
Motor Corporation company website |
| |
|
| [16]
Ormat Technologies, Inc., Generates power from
geothermal and cogeneration plants |
| Source:
|
Ormat
Technologies company website |
| |
|
| [17]
Xantrex Technologies, Inc., Products convert raw
electricity from solar plants into high-quality power
|
| Source:
|
Xantrex
Technologies, Inc., company website |
| |
|
| [18]
Contact Energy, Generates electricity using hydroelectric,
steam, and natural gas |
| Source:
|
Contact
Energy company website |
| |
|
| [19]
Hydrogenics Corporation, Develops hydrogen fuel
cell technologies |
| Source:
|
Hydrogenics
Corporation company website |
| |
|
| [20]
Conergy AG, Makes solar power water pumps, panels,
and batteries |
| Source:
|
Conergy
AG company website |
|
