KLD Social Rankings

Seeking to create helpful information on socially responsible investing (SRI), Peter Kinder, Steve Lydenberg, and Amy Domini created a social index for stocks that meet the specific criteria. KLD (named after the founders Kinder, Lydenberg, and Domini) Social Ratings Data provide a synopsis of corporate social performance across time. They help sustainability-conscious investors decide which firms best reflect their social commitments by evaluating them against industry peers on triple-bottom-line performance. The rankings are based on the scores assigned to each company by the ratings entity on the five critical environmental, social, and governance factors: (1) environment, (2) community and society, (3) employees and supply chain, (4) customers, and (5) governance and ethics. The scores are helpful to stakeholders who practice SRI, and hence, they exclude ...