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FTSE Group, the award-winning global index provider, today confirms the September results of the semi-annual FTSE4Good index series review. Globally 33 companies will be added while 15 companies will be removed from the leading responsible investment benchmark, now in its eighth year. The index series is designed to track the performance of companies meeting international corporate responsibility (CR) standards. Changes to the indices are effective from close of trading on Friday 18th September 2009.
Since the launch of the index series in 2001 over 250 companies have been deleted for failing to keep pace with the increasing stringency of the FTSE4Good environmental and social criteria. Despite raising the criteria bar most FTSE4Good reviews have seen more additions than deletions, which indicate a growing adoption of responsible business practices across global industry. At this review almost all of the deletions are from Japan and the US, although this is offset by nearly as many companies from these countries entering the index. The chart below illustrates the full number of companies that are joining and leaving the FTSE4Good index series by country:
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15 of the 33 new additions are from the UK and Europe. Companies to be added to the index series include: French and Swedish telecoms firms Alcatel-Lucent and Telisonera, German stock exchange Deutsche Borse, Hong Kong’s Cathay Pacific Airways, UK and U.S media companies Centaur Media and Time Warner Cable, Japan’s Mizuho Financial Group and UK Real Estate Company DTZ Holdings.
The FTSE4Good Index Series forms the basis for over 70 different funds and investment products. In addition it has also become an important tool for international NGOs to determine companies they are prepared to partner, and is used by companies to demonstrate strong CR practices.
The FTSE4Good inclusion criteria are enhanced regularly and demand continued improvement from companies in order for companies to maintain inclusion in the index. FTSE’s Responsible Investment Unit engages directly with affected companies and provides support and guidance in understanding the inclusion criteria, which cover environmental management, climate change, human rights, supply chain labour standards, and countering bribery criteria. New FTSE4Good inclusion criteria for Health and Safety (including HIV/Aids) are currently being developed for introduction in 2010.
A summary and explanations for additions and deletions can be found online at www.ftse.com/Indices/FTSE4Good_Index_Series/Index_Reviews.jsp.
