March 23, 2009
Bi-Annual FTSE4Good Index Series Review Completed
by Robert Kropp
Benchmark Index for investors that measures corporate responsibility standards adds 23 and removes
16 constituent companies.
The FTSE Group, a London-based provider of stock
market indices, has released an updated FTSE4Good Index Series that took effect after the close of
markets on March 23, 2009.
The Index defines responsible businesses as those that
work toward environmental sustainability, develop positive relationships with stakeholders, uphold
and support universal human rights, ensure good supply chain labor standards, and counter bribery.
Companies entering the Index Series meet the full FTSE4Good inclusion requirements, while
those deleted no longer meet one or more of the standards. Currently, about 40% of all eligible
companies worldwide meet the FTSE4Good criteria.
Globally, 23 companies have been added
and 16 companies removed from the Index Series. The largest companies added to the index include
Moët Hennessy Louis Vuitton of France, US-based Life Technologies, T&D Holdings of Japan, Danske
Bank of Denmark, and Australia's Qantas Airways.
In addition to Life Technologies, US
companies added to the Index were Ball Corporation and Genworth Financial.
sectors excluded from the FTSE4Good Index Series include tobacco producers, weapons systems
manufacturers, nuclear power utilities, and uranium processors.
While no US-based
companies were deleted from the Index in 2008, five were removed in the March 2009 review. Union
Pacific and Norfolk Southern were removed for failing to meet inclusion requirements for climate
change, which mandate public policy frameworks to address climate risk and reduce greenhouse gas
(GHG) emissions; effective management systems; disclosure of data on GHG emissions; and reduction
of levels of absolute GHG emissions.
The other US companies removed from the Index were
Cincinnati Financial, for environment; NCR, for human and labor rights; and Simon Property Group,
for environment and countering bribery.