HAUPPAUGE, N.Y., Feb. 14, 2012 /PRNewswire/ -- Target Rock
Advisors, LLC today released the results of its first proprietary
U.S. utility sustainability rankings and related stock indexes. The
company has identified 15 "high performance" domestic energy
utilities that excel in sustainable operations. The top 5
utilities among the 15 are:
- Sempra Energy (NYSE: SRE)
- Xcel Energy Inc. (NYSE: XEL)
- PG&E Corporation (NYSE: PCG)
- Edison International (NYSE: EIX)
- Avista Corporation (NYSE: AVA)
The 15 US companies comprise the Target Rock High Sustainability
Index. They were selected based on performance scores and rankings
assigned by Target Rock's sustainability scoring system, which
relies primarily on actual operating results. It systematically
addresses the three classic pillars of sustainability: environment,
economy and society, also referred to as the "triple bottom
line".
As a group, the stocks of the utilities in the index
out-performed both utility-specific sector indexes and broader
market indexes, such as the Dow Jones Industrial Average and the
S&P 500, for the ten year period ending December 31, 2011. The results can be viewed at
www.targetrockadvisors.com.
"There is a growing focus on sustainability, both globally and
within the U.S. However, the metrics for effectively assessing
sustainable performance by utilities has been lacking," stated
Richard Rudden, chief executive of
Target Rock.
"Investing in the sustainable utility sector appears to make a
lot of sense," he said, "Many pension funds and aging investor
populations seek less volatile, longer term returns comprised
largely of current income through dividends, but with moderate
upside stock price potential as well."
Assets under management by socially responsible investment funds
could reach $9 trillion in the U.S.
alone by 2015. According to Rudden, investor-owned public
utilities are an under-appreciated asset class and an opportunity
for investors with an appetite for sustainable investments without
sacrificing long term return potential.
Until now, there have been no sector-specific sustainability
indexes focused exclusively on publicly-traded utilities in the
U.S. "This is surprising when you consider how complex and
different the utility segment is from the other industry segments
that are normally included in multi-segment indexes," according to
Kyle Rudden, co-founder and partner
at Target Rock and the chief architect of both the scoring system
and indexes. "There is a tremendous need for a utility index based
on a sophisticated knowledge of the sector. Institutional
investors and asset managers have lacked a system that offers
highly useful sustainability performance information."
In addition to its indexes, Target Rock provides the utility
industry executives, with critical services to assist companies,
both large and small, in meeting their sustainability objectives.
Through Target Rock's benchmarks and indexes, the company can
assist utility clients in identifying areas for performance
improvement and best practices that may lead to improved brand
image, attract coverage by industry analysts and pique investor
interest.
The company has published a family of ten sustainability-related
indexes. Four "flagship" indexes relate to overall sustainability
scores (High, Medium, Low and all 49); three are based on only the
Environmental, Social and Governance ("ESG") dimensions of the
triple bottom line; and one index each ranks the top 15 Economic
performers, top 15 Environmental performers and top 15 Social
performers. A list of all utilities and indexes, as well as
information on their historical stock performance and underlying
sustainability scores and rankings, are available at
www.targetrockadvisors.com.
Target Rock will be releasing additional rankings and indexes in
the coming months. "This is the first generation of our products
and we expect there will be some adjustments to our approach in the
future," said Richard Rudden. "We
are confident that the quality and value of our indexes are the
best currently available to the U.S. utility sector and are
generations beyond the nearest competitor."
About Target Rock Advisors, LLC
Target Rock is dedicated to the rigorous study and
implementation of sustainability policies and practices within the
utility and financial industries. The Company's mission is to
provide data, information, analytical systems and deep
sector-specific technical expertise that identifies areas for
improved performance and helps utility companies achieve their
sustainability objectives with favorable social and economic
outcomes. Through its partners and associates, Target Rock has over
250 years of combined experience in sustainability and executive
leadership, equities and fixed income analysis, financial
management, statistics and econometrics, regulatory policy analysis
and management consulting. More information on Target Rock can be
found at www.targetrockadvisors.com.
SOURCE Target Rock Advisors, LLC