- The FTSE Blossom World and FTSE Blossom World Sector Relative Index Series include companies that have chosen to demonstrate specific ESG practices
- Driven by client demand, the new indices build on the FTSE Blossom Japan Index Series, expanding the series to the US (Russell 1000), Europe and APAC (ex Japan)
FTSE Russell today announces the launch of the FTSE Blossom World Index Series, to allow investors to evaluate environmental, social and governance (ESG) considerations in their investment strategies globally.
The FTSE Blossom World Index Series1 and FTSE Blossom World Sector Relative Index Series2 are designed to include global companies which have chosen to demonstrate ESG activities in their profiles. This is based on the proprietary FTSE Russell ESG Data Model which uses a transparent methodology to assess a company's ESG exposure and performance, combined with a limited set of baseline exclusions. The indices are constructed so industry or sector weights align with equity markets in the US, Europe and APAC (ex Japan), without deviating significantly from the design and performance of the traditional market capitalisation-weighted benchmark, the Russell 1000 in the US and the FTSE World Index.
The indices minimise industry or sector bias by applying an industry neutrality approach to match the weights of each region’s equity markets to manage tracking error relative to the benchmark.
This launch follows the FTSE Blossom Japan Index Series which has been adopted by the Government Pension Investment Fund ("GPIF") in Japan since 2017 and has been the top performer among all Sustainable Indices mandated by the GPIF according to their latest ESG Report3.
Stephanie Maier, Head of Sustainable at FTSE Russell, comments: “In response to client demand, we are thrilled to be launching these new indices, modeled after the FTSE Blossom Japan Index Series. Building on the success of Blossom in Japan, they offer our clients access to broader index coverage across the US, Europe and APAC, supporting the ability to evaluate and integrate ESG risks and performance into their equity strategies.”
| FTSE Blossom World Index Series | FTSE Blossom World Sector Relative Index Series | |
|---|---|---|
| Underlying Index | FTSE EU, FTSE APAC ex Japan, Russell 1000 Index | |
| Exclusion | Apply minimum set of exclusions | |
| Stock Selection | FTSE ESG Scores ≧3.3 (2.9 for EME) and may exclude ESG Scores <2.9* (2.4 for EME) | Top 50% in each ICB sector and FTSE ESG Scores ≧2.0 |
| Applicable high exposure theme score >=2.0 (>=1 for EME)* Climate Change score of 3 required for primary impact sector, 2 (1 for EME) required in secondary impact sector* |
TPI MQ score >=3.0 required for top 10% GHG emitters of the underlying universe | |
| Industry / Sector Neutrality | Each ICB industry weight is equal to that of each underlying Index | Each ICB sector weight is equal to that of each underlying Index |
| * If lower scores, it will be risk of deletion from the Index. | FTSE Blossom Europe Index, FTSE Blossom Asia Pacific ex Japan Index, FTSE Blossom US Index, FTSE Blossom World Composite Index | FTSE Blossom Europe Sector Relative Index, FTSE Blossom Asia Pacific ex Japan Sector Relative Index, FTSE Blossom US Sector Relative Index, FTSE Blossom World Composite Sector Relative Index |
Background:
1 FTSE Blossom World Index Series includes the following indices:
FTSE Blossom Europe Index
FTSE Blossom Asia Pacific ex Japan Index
FTSE Blossom US Index
FTSE Blossom World Composite Index
2 FTSE Blossom World Sector Relative Index Series includes:
FTSE Blossom Europe Sector Relative Index
FTSE Blossom Asia Pacific ex Japan Sector Relative Index
FTSE Blossom US Sector Relative Index
FTSE Blossom World Sector Relative Composite Index
