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NMI's Proprietary Research Tools

The LOHAS Consumer Trends Database

Understanding the LOHAS Market Report

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LOHAS Index

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LOHAS Index

In 2007, NMI introduced the LOHAS Index™—a ground-breaking new sustainability index of companies that combines consumers’ perspective on sustainability with that of financial investment data.

In the end, NMI merged these two perspectives to create a more complete picture on companies’ sustainability efforts, environmental impact, and commitment to ethical consumption. The LOHAS Index™ is the only source for such a comprehensive perspective.

Methodologically, the analysis began by identifying companies that are U.S. based, publicly traded, among the Russell 3000 (indicating they are the largest 3,000 companies in the U.S.), and familiar to consumers. Within NMI’s LOHAS Consumer Trends Database™ (LCTD), 1,000 U.S. adults (representative of the population and matching Census demographics), were surveyed about their perceptions of each company’s sensitivity to the environment, communities, and its employees.

The consumer data for each company was then paired with financial data from KLD, a leader in socially responsible investor analysis. KLD’s PASS (Portfolio Advisor’s Screening Service) provides environmental, social and governance research on corporations and includes analysis of more than 280 data points which are summarized into seven criteria: community, corporate governance, diversity, employee relations, environment, human rights, and product.

After NMI’s final analysis and proprietary modeling, the top 50 companies comprise the LOHAS Index™.

The results of the LOHAS Index™ can be utilized to identify:

  • Companies that are doing a good job of both incorporating CSR and communicating it

  • Companies that are over-communicating their environmental and social efforts

  • Companies that could be communicating their CSR efforts more effectively

Applications of the LOHAS Index™ include:

  • Development of CSR strategies and the optimal role of sustainability

  • How best to incorporate LOHAS-related concepts into products, services, and corporate activities

  • Better understanding what constitutes relevant and effective corporate communications to consumers, which will influence corporate communications strategies

  • Understand the overall value of consumers’ opinions on CSR performance

  • Trending the rankings over time to determine who the consistent leaders are and to monitor a company’s own progress

More information on the LOHAS Index can be found in Section 7 of the 2006 Understanding the LOHAS Market™ reports. Click for more information or contact Gwynne Rogers to learn more.

 

 

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