Goals for Today

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Goals for Today

• Socially Responsible Investing (SRI) Defined
• Calverts Social Screening
• Shareholder Advocacy and Dialogue
• CSR through the SRI Lens

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SRI Defined

• An investment process that considers the
  environmental, social, and governance
  consequences of corporate policies and practices,
  both positive and negative, within the context of
  rigorous financial analysis.
• Bruntland Commission
• Sustainable development is a form of
  development that meets the needs of the present
  generation without compromising the ability of
  future generations to meet their own needs.
• Socially responsible investing takes a longer
  term perspective, recognizing that environmental
  and social benefits and costs are rarely
  expressed on a quarterly cycle.

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Comprehensive Approach to SRI

• Social Analysis Screening
• Evaluating corporate social performance
• Shareholder Advocacy Dialogue
• Urging companies to address key social issues
  through dialogue with
• management, proxy voting, and shareholder
  resolutions
• Social Venture Capital / Community Investing /
• High Social Impact
• Directing investments into communities needing
  capital

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Calverts Investment Approach
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Corporate Responsibility Criteria

• Calvert assesses corporate responsibility
  practices in the following areas
• Product Safety
• Workplace Practices
• Human Rights
• Indigenous Peoples Rights
• Environment
• Community Relations
• Corporate Governance Business Ethics

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The Three Ps

• While these issue areas contain a wide range of
  information, there are some common themes in our
  assessment. Broadly speaking, we look for
  publicly available evidence of the following
• Policies Provide evidence of corporate
  commitment and planning
• Practices Show how the company implements
  policies and manages issues in the real world
• Performance Indicates how well current policies
  and practices work and points to new management
  challenges

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Advocacy

• Dialogue and Corporate Engagements
• Shareholder Advocacy (Resolutions)
• Industry-Wide, US, or Global Efforts

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Calverts Recent Engagements

• Examples of Calverts recent corporate
  engagements and advocacy efforts
• Response to Global Warming
• Building boards that look like America
• Encouraging inclusive equal employment policies
• The Calvert Womens Principles

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Growing Market for Socially Responsible Investing

• A total of 2.29 trillion in assets were
  identified in professionally managed portfolios
  using one or more of the three core SRI
  strategies.
• More than one out of every ten dollars under
  professional management in the U.S. today is
  involved in socially responsible investing.
• Socially and environmentally responsible
  investing has grown at an average annual rate of
  26 percent.
• Source 2005 Social Investment Forum Trends Report

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CSR through the SRI Lens

• Calvert believes that strong social performance
  and financial performance are linked.
• Well-managed CSR supports the business objectives
  of the company, builds relationships with key
  stakeholders, and should reduce business costs
  and maximize the companys effectiveness.
• Our guiding principle is that the best long-term
  investment opportunities are found among
  companies that recognize todays social,
  governance and environmental issues are likely to
  become tomorrows economic problems.

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CSR through the SRI Lens

• Failing to assess a companys social,
  governance, and environmental strategies can
  seriously hurt the bottom line. Companies could
  find themselves faced with a range of frightening
  scenarios
• loss of a sizeable portion of their workforce to
  AIDS
• government fines or litigation because of poor
  environmental performance or product safety
• loss of shareholders and investors because of
  unethical behavior and financial misconduct
• labor unrest due to exploitative workplace
  practices

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Benefits of CSR

• Key benefits to be gained from corporate social
  responsibility include
• Reduce and manage business risks
• Attract and retain employees
• Improve relations with stakeholders
• Enhance corporate reputation and brand with
  consumers and investors

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Benefit in Focus - Investors

• Investors are influenced by a companys
  reputation and corporate citizenship.
• The media is filled with examples of occasions
  where a companys stock plummeted as a result of
  public scandal-- Martha Stewart, Enron, etc.
• Between 1999 and 2004 the percentage of Americans
  who said they could name a company they consider
  to be a good corporate citizen rose 56.
• In a 2004 Corporate Citizenship Study, 80 of
  participants said they would refuse to invest in
  a socially irresponsible company.
• (CORE Corporate Citizenship Study, 2004)

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For Information Please Contact

• Erica Lasdon
• Social Research Analyst
• Calvert Group, Ltd.
• erica.lasdon_at_calvert.com
• [phone]
• For more information on any Calvert fund, please
  contact Calvert at 800.368.2748 for a free
  prospectus. An investor should consider the
  investment objectives, risks, charges, and
  expenses of an investment carefully before
  investing. The prospectus contains this and other
  information. Read it carefully before you invest
  or send money.
• Calvert mutual funds are underwritten and
  distributed by Calvert Distributors, Inc., member
  NASD, a subsidiary of Calvert Group, Ltd. (6148
  March 2006)