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New Study Reveals Levels of Board Oversight of Environment and Social Issues among Russell 3000

Large Companies Lead, But Strategic Focus Lacking

New Study Reveals Levels of Board Oversight of Environment and Social Issues among Russell 3000

Large Companies Lead, But Strategic Focus Lacking

Published 09-29-10

Submitted by Calvert

According to a new survey from Calvert Asset Management Company, Inc. and The Corporate Library, 65 percent of S&P 100 index firms and nearly one-fifth of Russell 1000 index firms have a corporate responsibility-related board committee, compared with only four percent of companies in the Russell 2000 index. Even where board oversight exists, however, companies often appear to view environmental and social issues in philanthropic or marketing terms, rather than as fundamental business risks or competitive advantages.

"Boards are increasingly taking on responsibility to oversee their companies' risks and opportunities," said Annalisa Barrett, Senior Research Associate for The Corporate Library and co-author of the survey. "However, the current study indicates that much remains to be done to encourage more frequent implementation of board-level responsibility for sustainability and to increase the sophistication of boards' oversight where it already exists." The Corporate Library is an independent corporate governance research firm.

"Environmental and social issues must gain even more consistent and conscientious attention as a set of factors, issues and risks that can make or break shareholder value and the fundamental prospects of the enterprise," said Mike Lombardo, Senior Sustainability Analyst and Manager for Calvert Asset Management Company, Inc. and co-author. "We believe that a report examining such oversight is especially timely in a year when major companies have faced performance breakdowns - each with fatal consequences for customers or workers as well as damage to the reputations of these companies - that stronger board oversight as well as more stringent management may have helped to avoid." Calvert is a leader in Sustainable and Responsible Investments.

The survey is the first to assess the prevalence of board oversight of environmental and social affairs in a broad North American universe. It provides several recommendations for further research and investor engagement.

The survey, titled "Board Oversight of Environmental and Social Issues: An Analysis of Current North American Practice," is available as a free download from The Corporate Library's website.

About Calvert Asset Management Company, Inc.
Calvert Investments is an investment management company that offers mutual funds and separate accounts to institutional investors, retirement plans, financial intermediaries, and their clients. By combining rigorous analysis with independent thinking, our disciplined approach to money management goes beyond traditional factors in order to manage risk and to identify investment opportunities with greater long-term potential. We offer more than 40 equity, bond, cash, and asset allocation investment strategies, many of which feature integrated corporate sustainability and responsibility research. Founded in 1976 and based in Bethesda, Maryland, Calvert Investments managed assets of more than $14 billion as of August 30, 2010. Find out more about Sustainable and Responsible Investing (SRI) from Calvert Investments at www.Calvert.com.

About The Corporate Library
Since 1999, The Corporate Library has been the leading independent firm providing corporate governance research, advisory and risk analysis solutions. The Corporate Library rates companies in the Russell 3000, S&P 1500 and TSX60 on a proprietary set of governance risk factors, allowing businesses to evaluate governance as an element of investment and other risk. Informed by this philosophy and armed with its extensive Board Analyst® database and other risk assessment tools, The Corporate Library also offers portfolio risk assessment and environmental, social and governance (ESG) research services. Additionally, The Corporate Library's team of industry-leading corporate governance analysts provide shareholder proposal and engagement advisory services to institutional investors. An April 2010 study of investment applications for The Corporate Library's governance risk ratings showed outperformance of 275 annualized basis points in 2003-2010 for a hypothetical portfolio constructed using governance screens. More information on The Corporate Library and its suite of corporate governance data and analysis products can be found at www.thecorporatelibrary.com.

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Calvert

Calvert

Calvert, a leader in sustainable and responsible investing, headquartered in suburban Washington, D.C., has, since our founding in 1976, set industry standards for asset management excellence - in both the way we select companies for our portfolios and how we serve our clients' interests. Our investment approach emphasizes rigorous fundamental research that goes beyond traditional measures to uncover companies with long-term value. Through proven investment management, attentive customer service, an innovative family of investment products, and strong marketing capabilities, Calvert serves individual and institutional investors nationwide as well as professional financial advisors

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