KLD Global Climate 100 Index kld.com
The KLD Global Climate 100SM Index (GC 100) is a specialty index designed to promote investment in public companies whose activities demonstrate the greatest potential for mitigating immediate and long-term causes of climate change. KLD, in partnership with the Global Energy Network Institute (GENI), created the Index in response to growing demand from institutions and individuals for investment strategies that address global warming.
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The Global Climate 100 Index includes a mix of 100 global companies that 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.
Constituents are selected from the global universe of companies for their involvement in the following themes: Renewable Energies, Future Fuels, and Clean Technology and Efficiency. In addition to activities in these areas, KLD evaluates each company’s eligibility for the Index based upon its specific climate-related efforts, market influence, geographic distribution, and offsetting negative climate impacts. The leading companies in each category are included on the Index.
The Index seeks companies representing a range of corporate responses to climate change, including a group of large-, mid-, and small-cap companies representing sectors ranging from energy and utilities to industrials and consumer products. As a result, the Index is more broadly diversified than a traditional energy sector index.
The KLD Global Climate 100 Index allocates a 1% weight to each of the 100 constituents to provide higher exposure to small-cap companies and lower exposure to large-cap companies than a cap-weighted index. The weights will vary between quarterly rebalancing, depending on market conditions.
Index Construction
The Global Climate 100 Index includes a mix of 100 global companies that 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.
Constituents are selected from the global universe of companies for their involvement in the following themes: Renewable Energies, Future Fuels, and Clean Technology and Efficiency. In addition to activities in these areas, KLD evaluates each company’s eligibility for the Index based upon its specific climate-related efforts, market influence, geographic distribution, and offsetting negative climate impacts. The leading companies in each category are included on the Index.
The Index seeks companies representing a range of corporate responses to climate change, including a group of large-, mid-, and small-cap companies representing sectors ranging from energy and utilities to industrials and consumer products. As a result, the Index is more broadly diversified than a traditional energy sector index.
The KLD Global Climate 100 Index allocates a 1% weight to each of the 100 constituents to provide higher exposure to small-cap companies and lower exposure to large-cap companies than a cap-weighted index. The weights will vary between quarterly rebalancing, depending on market conditions.
Index Maintenance
KLD continuously monitors constituents on the Index to ensure they meet standards for involvement themes, liquidity and financial viability. KLD may remove companies due to corporate actions resulting in mergers, acquisitions and bankruptcies. KLD may also remove companies at rebalancing if their climate rating falls below an acceptable level. KLD rebalances the Index each quarter to bring each holding back to 1%.
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Fact Sheet kld.com |
