US SiRi Company Network Partner KLD Research & Analytics, Inc. announced the launch of its KLD Global Sustainability Index (GSI) and Index series. KLDs Global Sustainability Index consists of a broad representation of top ESG performing companies across all sectors in Europe, North America, and Asia Pacific.
The GSI and its North American, European and Asian Pacific sub-indexes are the first to meet institutional demand for a sector-neutral sustainability index. "KLD created the GSI in response to the growing demand from institutional investors for global sustainability investment options," says Thomas Kuh, Managing Director of KLD. "We are pleased that a major investment company signed a GSI fund license prior to launch."
"The GSI differs from other socially responsible investing (SRI) and sustainability indexes in that it is simultaneously broad, sector-neutral and based on rigorous sustainability standards," says Peter D. Kinder, President of KLD.
KLDs ESG ratings framework captures a company’s sustainability performance by analyzing five key categories environment; community and society; employees and supply chain; customers; and governance and ethics. The GSIs rating framework favors corporations that are:
– Strong stewards of the environment,
– Devoted to serving local communities and society overall,
– Committed to high labor standards for their own employees and those in their supply chain,
– Dedicated to producing high quality and safe products, and
– Managing their company in an exemplary and ethical manner.
"KLDs analysis combines an awareness of the overarching impact companies can have on social and environmental conditions with sensitivity to the challenges faced by businesses operating in different sectors of the global economy. KLD therefore rates companies on both how they address the ESG challenges within their industry and how they treat all stakeholders," says Eric Fernald, Managing Director of Research at KLD.
The GSI is the product of KLDs long-standing collaboration with Dutch Sustainability Research (The Netherlands), Centre Info (Switzerland), SIRIS (Australia) and Jantzi Research (Canada) as research partners of SiRi Company Ltd. Hence, the research underlying the index incorporates both a global sustainability perspective and regional company expertise.