As a result of this commitment, FTSE has introduced more challenging environmental and human rights criteria as well as new criteria for the marketing of breast milk substitutes and supply chain labour standards. In addition, FTSE is currently developing criteria on bribery and corruption and for the uranium mining sector. The combination of the tightening standards of the criteria along with FTSE’s company engagement programme has earned the index the support of government ministers, investors and international organisations and established the FTSE4Good Index Series as a key global SRI investment tool.
In order to maintain this momentum and further strengthen the presence of the FTSE4Good Index Series in the market, a group of corporate social responsibility (CSR) and social responsible investment (SRI) practitioners was established which identified three key areas for the direction of the index series over the next five years. The market consultation document that is launched today, contains these for public comment:
- Climate Change and Environmental Performance;
- Stakeholder Corporate Responsibility;
- Governance of Corporate Responsibility.
The FTSE4Good Policy Committee also intends to remove sector exclusions when appropriate criteria can be developed for these sectors. Today’s document also asks for feedback regarding the introduction of criteria for nuclear power, weapons manufacturers and tobacco companies which are three currently excluded sectors from the FTSE4Good Indices.
Mark Makepeace, Chief Executive, FTSE Group said, “FTSE4Good is helping set the agenda for companies and investors who are serious about corporate social responsibility. I hope all market participants will review and respond to this new FTSE4Good criteria roadmap.”
The consultation document and questionnaire is accessible at http://www.ftse.com/ftse4good/MarketconsultationDec04.jsp