FTSE Sets Tough New Targets For SRI Series

Global index provider FTSE Group today announces the first criteria revision to FTSE4Good, since the standard-setting socially responsible investment (SRI) index series was launched last year. Beginning in September 2002, all companies will need to meet new and more comprehensive environmental standards to qualify for the indices. The changes mean that all companies, not just those with the greatest potential to affect the environment, must meet more rigorous requirements in order to be eligible for inclusion.

At its meeting in March, the independent FTSE4Good Advisory Committee agreed to adopt new definitions describing a business' impact on the environment. Companies will be placed in one of three categories: high, medium or low, depending on their overall environmental impact. In order to be included in the FTSE4Good index series, the higher a company's impact category, the higher the environmental standards it must meet.

The categories are defined using an environmental methodology developed by the Ethical Investment Research Service (EIRIS) and each category has graded eligibility requirements. These changes will require businesses to disclose additional information on their environmental policies and procedures. Companies will be categorised at the FTSE4Good review in September 2002 and will then need to meet the phased implementation schedule shown below.

Mark Makepeace, Chief Executive, FTSE Group said, "By introducing more stringent environmental criteria, the FTSE4Good series will continue to encourage more companies to meet and disclose corporate social responsibility (CSR) initiatives." Craig MacKenzie, Deputy Chairman, FTSE4Good Advisory Committee said, "The new criteria is designed to be challenging but still achievable, and should prompt companies to become more transparent on environmental issues."

More information about the changes can be accessed at www.FTSE4Good.com