September 14, 2009
Semi-Annual Review of FTSE4Good Index Series Is Completed
by Robert Kropp
Widely-used benchmark for responsible investment adds 33 companies, and deletes 15 for failing to
meet standards of corporate responsibility.
FTSE Group, a global provider of more than
120,000 equity, bond, and alternative asset class indexes, has announced the results of its
semi-annual review of the FTSE4Good index series. The
FTSE4Good indexes use data provided by EIRIS to
provide responsible investors with a tool to identify companies that meet standards of corporate
responsibility (CR), and asset managers with a benchmark for socially responsible investment (SRI).
According to FTSE, "The FTSE4Good Index Series forms the basis for over 70
different funds and investment products."
In its September review, FTSE added 33 companies
to the FTSE4Good index series, and deleted 15. Of the companies added to the series, 10 were from
Japan, 10 were from the United Kingdom, and five were from the US. Nine of the deleted companies
were from Japan, and five were from the US.
Four companies were deleted from the index
series for failing to meet environmental criteria, one for not meeting climate change criteria,
seven for not meeting human and labor rights criteria, three for not meeting countering bribery
criteria, and one for activities in weapons, an excluded sector.
The five US-based
companies added to the index series were Comcast, DST Systems, Humana, Pentair, and Time Warner
Cable. The five US-based companies deleted from the index were Equity Residential Properties Trust,
Hospira, and Limited Brands (for failing to meet environmental criteria); R.R. Donnelley & Sons
(human and labor rights); and Sunoco, for climate change.
Since the launch of the
FTSE4Good index series in 2001, more than 250 companies have been deleted. However, since that time
there have been more additions than deletions, which, according to FTSE, indicates "a growing
adoption of responsible business practices across global industry."
Changes to the
FTSE4Good index series will become effective at the end of the business day on Friday, September