Markets working to support sustainable development

FTSE 4 Good Index Series

Mechanism: 
Social, Environmental and Governance Performance Indicators

The FTSE 4 Good Index Series are a number of multi-criteria performance metrics developed by FTSE 4 Good. The project began with the FTSE 4 Good UK and European indicies, which track companies' performance towards social, environmental, and governance indicators responsibility standards. Now the FTSE 4 Good has expanded its range of indices to  include other regions (e.g. Australia; added in 2008) industries that were previously excluded outright (e.g. infant formulas, 2010; and uranium extraction, 2006). 

 

Market coverage: 

In 2010 the global investment total for companies that met the environmental, social, and governance criteria was $10.1tn, compared to the 2002 figure of $2.6tn. The FTSE 4 good index has expanded from its launch in 2001 to encompass 894 constituents (March 2011). 

Background information: 

The FTSE 4 Good Index Series is run by an independent company jointly owned by The Financial Times and the London Stock Exchange and was created in 1997, London.

Funding source: 

Financial Times and the London Stock Exchange.

Notable information: 

Index and thus rating is compiled using annual reports, information on company websites, questionnaires and liaisons with companies where appropriate, other publicity material and information held by EIRIS. Benchmark indices include all companies in the broad market index that meet the FTSE4Good criteria. Tradable indices cover the largest 50 or 100 companies in the benchmark index.

The management and the evolution of the FTSE4Good Index Series is the responsibility of the FTSE4Good Policy Committee, an independent body of experts from the fields of corporate responsibility, fund management, academia and the business community.  The FTSE 4 Good Index Series has 5 other sister indices FTSE4Good Environmental Leaders Europe 40, FTSE4Good IBEX, The FTSE CDP Carbon Strategy Index Series, FTSE ECPI Italia SRI Index Series, FTSE Environmental Markets Index Series