Information for Companies

• Indices
  • FTSE4Good Index Series
    • Values
    • Constituents
    • Index Rules
    • Index Changes
    • Index Reviews
    • Product Specifications
• FTSE Real-Time Vendor Codes
• Data Licences
• FTSE Index Standards
• Student Information

The benefits to companies of being included in the FTSE4Good Index Series, and addressing environmental and social issues include:

Managing risk

Environmental and social issues associated with policy and practices can create financial, legal, operational and reputation risks. Having a system to manage these not only helps protect company profitability but also enables companies to demonstrate their responsibility in a tangible way to investors, legislators, shareholders, their own employees as well as customers and the public.

Reputation

Being a constituent of the FTSE4Good Index Series clearly demonstrates your corporate social/environmental responsibility. Meeting an independent third party's required standards is a powerful demonstration of this. Many of our constituent companies use FTSE4Good inclusion in their corporate reports and investor communications.

Cost savings

Many of our members have commented that by focusing on and reducing their environmental impacts they have been able to save money on electricity bills, resource use and waste removal. A company with good corporate responsibility standards is also better able to attract and retain high quality staff, reducing employee turnover rates and recruitment costs.

Brand marketing

Companies in the FTSE4Good Index Series have the opportunity to be linked with the worldwide activities of FTSE. FTSE Group is a world-leader in the creation and management of indices. With offices in Boston, Frankfurt, Hong Kong, London, Madrid, New York, Paris, San Francisco and Tokyo, FTSE services clients in 77 countries worldwide.

"Licence to Operate"

Companies can only site their premises and operate if they are permitted to by "society". For example, before a company is able to operate in a certain location, it has to gain planning permission. The reputation that a company has can influence the decision to grant or reject planning. Having a corporate responsibility system in place, and being part of a third party scheme can help demonstrate responsible corporate behaviour.

FTSE4Good Inclusion Criteria

The FTSE4Good selection criteria have been designed to reflect a broad consensus on what constitutes good corporate responsibility practice globally. Using a widespread market consultation process, the criteria are regularly revised to ensure that they continue to reflect standards of responsible business practice, and developments in socially responsible investment as they evolve. Since the index series was launched in July 2001, the environmental criteria and human rights criteria have both been strengthened. The FTSE4Good inclusion criteria are designed to be challenging but achievable in order to encourage companies to try to meet them.

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