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:
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Companies that are doing a good job of both incorporating CSR
and communicating it
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Companies that are over-communicating their environmental
and social efforts
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Companies that could be communicating their CSR efforts
more effectively
Applications of the LOHAS Index™ include:
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Development of CSR strategies and the optimal role of
sustainability
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How best to incorporate LOHAS-related concepts into products,
services, and corporate activities
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Better understanding what constitutes relevant and effective
corporate communications to consumers, which will influence
corporate communications strategies
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Understand the overall value of consumers’ opinions
on CSR performance
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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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