FTSE4Good
Decisions on whether a company qualifies for inclusion in the FTSE4Good indices are based upon EIRIS research.
The FTSE4Good Index Series has been designed to measure the performance of companies that meet globally recognised corporate responsibility standards, and to facilitate investment in those companies.
Selection criteria
To qualify for inclusion in the FTSE4Good Index Series, companies must be in one of the following starting universes; the FTSE All-Share Index (UK), or FTSE Developed Index (Global). For inclusion, eligible companies must meet criteria requirements in five areas:
- Working towards environmental sustainability
- Developing positive relationships with stakeholders
- Upholding and supporting universal human rights
- Ensuring good supply chain labour standards
- Countering bribery
Excluded companies
Companies that have been identified as having business interests in the following industries are excluded from the FTSE4Good Index Series:
- Tobacco producers
- Companies manufacturing either whole, strategic parts, or platforms for nuclear weapon systems
- Companies manufacturing whole weapons systems
- Owners or operators of nuclear power stations
A company may fail to qualify for inclusion in the FTSE4Good indices because relevant information is not made available, rather than because their actions show a lack of corporate responsibility. An important objective of FTSE4Good is to encourage companies to publish more information relating to their assessment for entry into the index. For this reason, overriding importance has been placed on the transparency and objectivity of the criteria used in selecting constituents for the index.
The final decision on whether a company is included or excluded from the FTSE4Good indices is made by the FTSE4Good committee.
For your company to maximise its chances of inclusion, please contact us.
