FTSE4Good has increased the number of companies tracked by its European socially responsible indices by 28 in the first review since its launch in July. Whilst the number of companies included in its Global and US indices remained static, its UK indices also grew significantly. The changes that were announced on 18 September will come into effect 24 September.
The FTSE4Good indices reflect the performance of socially responsible shares in the continental European, US, global and UK markets. They were set up by the FTSE, in association with The Ethical Investment Research Service (EIRIS).
Whilst there are a number of complex criteria for a company to be included in the FTSE4Good, any company with interests in the tobacco, nuclear power or arms industries are automatically excluded.
The first review of the composition of the FTSE4Good indices saw intense lobbying by a number of companies that had been disappointed at being excluded from the original list, including UK retailers Safeway and Tesco.
Whilst Tesco made the revised list, along with other major UK companies such as BOC and Marconi, Safeway did not.
The French oil company TotalFinaElf made the revised European indices where it joins other oil giants such as BP and Shell. Germany’s Commerzbank joined other major players in the European banking sector such as Deutsche Bank in the European indices.
The next FTSE4Good listings review will take place in March 2002