Submitted by: FTSE Group
Categories: Community Development
Posted: Mar 19, 2003 – 11:00 PM EST
Mar. 19 /CSRwire/ -
The current review also applied new, more stringent environmental criteria. 55% of existing constituents globally have improved or are improving environmental disclosure and will remain in the index.
An engagement program by FTSE Group’s Corporate Social Responsibility (CSR) team to support and assist companies through the transition process has contributed to the great progress made by the majority of constituents to define and disclose environmental policies and management systems.
Elizabeth Elliott McGeveran, Vice President, Governance & Socially Responsible Investment at ISIS Asset Management said, “FTSE4Good indexes have served as a positive catalyst for corporate change and FTSE's engagement program with FTSE4Good constituents has made a substantial contribution to encouraging greater environmental commitment from a larger number of companies."
Seven companies worldwide have indicated, via FTSE’s engagement program, that they will take no steps to meet the enhanced environmental criteria and so will be removed from the index. These companies are Elan Corporation (Ireland), Hafslund (Norway), RoyalBlue Group (UK), Goldshield Group (UK), St. Ives (UK), Tenet Healthcare (US) and Suntrust Banks (US).
Will Oulton, Deputy Chief Executive, FTSE Group said, “The success of FTSE’s engagement program and the efforts made by FTSE4Good companies to meet the new criteria proves that SRI, and inclusion in the FTSE4Good indexes continues to gain importance at the boardroom level.”
Since launch in July 2001, nearly 200 global companies have raised their standards and met the criteria for entry into the indexes. With over 15 financial products and US$1.5 billion linked to the index series, FTSE4Good is growing rapidly and becoming a positive catalyst for corporate change.
A full list of additions and deletions to the FTSE4Good series approved this week can be found at www.ftse.com
Notes to Editors
FTSE Group is a world-leader in the creation and management of indices. With offices in London, Frankfurt, Hong Kong, Madrid, Paris, New York and San Francisco, FTSE Group services clients in 77 countries worldwide. It manages and develops globally recognised indices ranging from the FTSE All-World Index to the FTSE 100, the FTSE4Good indices and the recently launched FTSE Global Style Index Series. The company has collaborative arrangements with the Athens, Cyprus, Euronext, Johannesburg, London, Luxembourg, and Madrid exchanges, as well as with Nikkei of Japan (Nihon Keizai Shimbun, Inc) and Xinhua Financial Network of China.
FTSE indices are used extensively by investors world-wide for investment analysis, performance measurement, asset allocation, portfolio hedging and for creating a wide range of index tracking funds. Independent committees of senior fund managers, derivatives experts, actuaries and other experienced practitioners review all changes to the indices to ensure that they are made objectively and without bias. Real-time FTSE indices are calculated on systems managed by Reuters. Prices and FX rates used are supplied by Reuters.
About FTSE4Good Index Series
FTSE4Good is an innovative series of real-time indices designed to reflect the performance of socially responsible equities. The series, created and managed by global index provider FTSE Group, covers four markets: UK, Europe, US and Global. Four tradable and four benchmark indices make up the FTSE4Good index series. A committee of independent practitioners in socially responsible investment, (SRI) and corporate social responsibility (CSR) review the indices to ensure that they are an accurate reflection of current CSR best practice.
FTSE Group contributes income including licence fees for FTSE4Good to UNICEF, the global children’s charity.
EIRIS is the UK's leading independent provider of research about the social, environmental and ethical performance of companies. The Ethical Investment Research Service (EIRIS), a charity, was set up in 1983 to help churches and charities implement ethical investment policies. EIRIS Services Ltd, the charity's subsidiary, undertakes the research and provision of services to clients, including Ethical Portfolio Manager, EIRIS's ethical investment research software.
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