FTSE Group, the global index provider, today publishes a research report, highlighting the strong impact made by the FTSE4Good index series on the development of Corporate Social Responsibility (CSR) disclosure and commitments from companies worldwide. The FTSE4Good Criteria Development and Company Engagement Report details companies responses to the changes to the index entry criteria over the last 18 months. It draws upon the work of FTSEs in-house engagement programme, which was set up to provide support and guidance to companies eligible for inclusion in the FTSE4Good Index Series.
The report shows that FTSEs work on the FTSE4Good series has made a positive impact on the development of CSR practices among listed companies around the world. The key findings are:
· The FTSE4Good criteria have encouraged a marked improvement in the disclosure of human rights and environmental policy and management systems
– Companies around the world have increased their commitment to international standards, such as the UN Global Compact, and the Universal Declaration of Human Rights.
· There has been a positive response from companies worldwide to the FTSE4Good criteria:
– 266 companies have responded to improve their environmental practice,
– 53 companies have made changes to meet new human rights criteria,
– Global resource companies most impacted by Human Rights issues have made significant advances in a number of areas, including policies for indigenous peoples rights, and policies for the use of armed security guards.
· FTSE Groups application of the new criteria is rigorous:
– 62 companies have been removed from the index for not meeting human rights and environmental challenges.
Mark Makepeace, Chief Executive, FTSE Group commented, The FTSE4Good Criteria Development and Company Engagement Report clearly shows that companies worldwide are adopting the FTSE4Good criteria in increasing numbers. FTSE4Good is helping companies to change their behaviour. Increased disclosure and better CSR practice by companies enable investors to assess more accurately corporates social, environmental and ethical business risk. This is of benefit to investors globally. We will continue to work with companies and the investment community to develop the FTSE4Good criteria.