FTSE4Good To launch In July

Companies to be included in the new FTSE4Good index series will be named by FTSE on Tuesday July 10. On the same day Close Fund Management will also launch the FTSE4Good UK Fund, the first of "The Official Funds for the FTSE4Good indices". The FTSE4Good indices will go live on Tuesday July 31. Early indications of the index design were released today, following the Advisory Committee's confirmation of selection criteria and exclusions.

Constituents of the FTSE4Good series will be determined by assessing a company's achievements in the following areas:

working towards environmental sustainability;
developing positive relationships with stakeholders;
upholding and supporting universal human rights.

In line with current socially responsible investment (SRI) practices, FTSE4Good will contain three exclusions at launch. These are:

tobacco producers;
manufacturers of weapon systems;
owners/operators of nuclear power stations.

Using the results of the market consultation exercise conducted in early 2001, and its own specialist knowledge, the FTSE4Good Advisory Committee has concluded that there is widespread international support amongst finance and SRI communities for these exclusions.

While this approach is appropriate for today's market, the Committee has also undertaken to evolve the index criteria in line with broader SRI developments, and the improved availability of reliable and comparable SRI performance data. Each exclusion will be replaced by an individual and substantive set of performance criteria. This process will begin in 2002.

Mark Makepeace, FTSE's Chief Executive said: "FTSE aims to set an achievable framework for corporate social responsibility to which all companies should aspire. I believe FTSE4Good will increase the levels of socially responsible investment and provide a platform for further debate and change."

A comprehensive list of criteria and constituents for the index will be available at http://www.ftse4good.com from 1000 on Tuesday July 10.