FTSE Group, the global index provider, reports today on the findings of its FTSE4Good Advisory Committee, which met this week for the regular six monthly review of index constituents. Globally, forty-eight new companies have joined the FTSE4Good Series for the first time, including thirteen UK companies.
The review also applied new, more stringent environmental criteria. 76% of existing constituents in the UK index have improved or are improving environmental disclosure and will remain in the index.
An engagement programme undertaken 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.
Dr Craig McKenzie, Head of Investor Responsibility at Insight Investment said, "FTSE’s engagement programme with FTSE4Good constituents has made a substantial contribution to encouraging greater environmental commitment amongst a large number of companies."
Seven companies worldwide have indicated, via FTSE’s engagement programme, 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).
The Committee also approved an extended implementation timetable for companies that can demonstrate that they have begun, but not yet completed, the additional steps necessary to meet the strengthened environmental criteria. The Committee’s expectation is the majority of UK companies will raise standards to meet new timetable.
Will Oulton, Deputy Chief Executive, FTSE Group said "The success of FTSE’s engagement programme and the efforts made by FTSE4Good companies to meet the new criteria proves that CSR, and inclusion in the FTSE4Good indices, continues to gain importance at boardroom level."