FTSE Group, the award-winning global index provider, today confirms the results of the September review of the FTSE4Good global index series. Globally, 36 companies will be added and 12 companies will be removed from the index series. Changes to the index will take place after the close of the markets on the 19th of September, 2008.
Additions and deletions to the index are based on transparent environmental and social criteria that represent global standards of good Corporate Responsibility (CR) practices. Companies entering the index series have demonstrated meeting the full FTSE4Good inclusion requirements, while those deleted no longer meet these standards.
Toyota Motor Corporation has the largest market capitalization of those companies being added to the index series, and will re-enter after having been deleted in 2007. Other large companies entering the indices include Australian-based Westfield Corporation, First Solar and Capital One Financial Corporation from the United States, and Banco Espanol de Credito of Spain.
The largest number of new companies added is from the United Kingdom, followed by Japan and the United States. The majority of companies deleted are from Japan, followed by Sweden and the United Kingdom. The table below shows the breakdown of the number of companies that are joining and leaving the FTSE4Good index by country:
|
Country |
No
of additions |
No
of deletions |
|
Australia |
2 |
1 |
|
France |
- |
1 |
|
Germany |
1 |
- |
|
Greece |
1 |
- |
|
Hong
Kong |
1 |
- |
|
Japan |
8 |
6 |
|
Spain |
1 |
- |
|
Sweden |
- |
2 |
|
UK |
15 |
2 |
|
USA |
7 |
- |
|
TOTAL |
36 |
12 |
The FTSE4Good inclusion criteria are enhanced regularly and demand continued improvement in CR practices in order for companies to gain or maintain inclusion in the index. In February 2007 FTSE introduced enhanced climate change criteria and companies will have until 2009 to meet these standards in full. FTSE’s Responsible Investment Unit engages directly with affected companies and provides support and guidance in understanding the environmental and social criteria.
At this review companies were deleted for failing to meet the environmental management, human and labor rights, countering bribery, and supply chain labour standards criteria. A summary and explanations for additions and deletions can be found online at http://www.ftse.com/Indices/FTSE4Good_Index_Series/Index_Reviews.jsp. Since the FTSE4Good index series launched in 2001 over 600 companies have been added at the semi-annual reviews, while only 235 have been deleted.
