New Report Shows Impact Of FTSE4Good Index Criteria On Corporate Responsibility Practice

FTSE Group (FTSE) today publishes a report entitled ‘FTSE4Good Index Series 2004-2005, The Impact of New Criteria and Future Direction”. The report details evidence of changes in companies’ corporate responsibility (CR) practices and the role of the FTSE4Good engagement programme.

Some of the key findings in the report include:

1. Since the index was launched the overall number of constituents has risen from just over 700 in 2001 to more than 900 in March 2005. This increase has happened even though FTSE has enhanced and developed the criteria, under the guidance of the FTSE4Good Policy Committee, making them more difficult to achieve.

2. When FTSE introduced new environmental criteria in 2002, over 450 companies did not meet these criteria. By March 2005:

• Almost 200 of these companies met the requirements
• Over 80 have been deleted for not meeting the requirements by their deadlines
• About 100 are working towards meeting the new criteria and have agreed strict deadlines with FTSE for meeting them

3. After a consultation with investors, companies and NGO’s, FTSE updated the human rights criteria in 2003. The criteria had to be met by companies that were identified as high risk such companies involved in the global resource economic sector (oil, gas and mining) and companies that have significant operations in countries with weak human rights frameworks.

• 58 companies have adopted the proposed approach and met the new human rights criteria
• 20 have been deleted from the FTSE4Good index

To download a copy of the report click here