FTSE4Good Adds New Climate Change Criteria
22 February 2007 at 2:08 pm
The global index provider FTSE has launched a new set of criteria to offset climate change for its FTSE4Good Index series which could see many companies facing exclusion.
FTSE4Good is used by investors as a way to identify companies with positive records of CSR practice; and by listed companies as a framework for best practice.
The new climate change criteria is as a milestone in the ongoing evolution of the leading SRI index series, and the FTSE Group says it is supported by industry experts, government and NGOs alike.
Mark Makepeace, Chief Executive of FTSE Group says working with a Committee of SRI and CSR experts, FTSE is committed to keeping the criteria governing the FTSE4Good Index Series in line with CSR best practice.
Makepeace says climate change is an important issue for companies and investors alike, and investors understand these criteria will make an important contribution to helping companies manage their risks.
The criteria will be implemented into the index series on a phased basis over two years, with the first deadline in January 2008.
Just over 250 companies have been identified as having the highest impact on climate change and of these, fewer than 50 are expected to already meet the climate change strategy, system, disclosure and performance requirements.
Makepeace says FTSE’s in-house Responsible Investment Unit will work directly with affected companies to help them understand the criteria, as well as what they have to do to comply, and the timeframes.
FTSE Group undertook a broad public climate change consultation during 2006, with over 100 responses from corporations, fund managers, non-government organisations and private investors.
The criteria have been developed in conjunction with The Climate Group; The Institutional Investors Group on Climate Change; The Carbon Trust; Forum for the Future and the World Wildlife Fund.
All FTSE4Good fund licensing revenues go to UNICEF to help children around the world. Since the launch of the index, 2.5 million USD went to supporting a number of UNICEF’s campaign to help children.
For more information about the FTSE4Good index series, including full details of the new climate criteria and its implementation timetable, go to www.ftse.com/ftse4good