FTSE Sets New Environmental Standards for 'Responsible' Companies
Global index provider FTSE Group has announced the first criteria revision since the standard-setting Socially Responsible Investment index series was launched last year. Beginning in September 2002, all companies will need to meet new and more comprehensive environmental measures to qualify for the index series.
Global index provider FTSE Group has announced the first criteria revision since the standard-setting Socially Responsible Investment (SRI) index series was launched last year. Beginning in September 2002, all companies will need to meet new and more comprehensive environmental measures to qualify for the index series. The changes mean that all companies, not just those with the greatest potential to affect the environment, must meet more rigorous requirements in order to be eligible for inclusion.
At its meeting in March, the independent FTSE4Good Advisory Committee agreed to adopt new definitions describing a business’ impact on the environment. Companies will be placed in one of the three categories: high, medium or low, depending on their overall environmental impact.
The categories are defined using an environmental methodology developed by the Ethical Investment Research Service (EIRIS) and each category has graded eligibility requirements. These changes will require businesses to publish additional information on their environmental policies and procedures. Companies will be categorized at the FTSE4Good review in September 2002 and will then need to meet the phased implementation schedule shown below.
Jane Staunton, President, FTSE Americas said, "By introducing more stringent environmental criteria, the FTSE4Good series will continue to encourage more companies to meet and disclose Corporate Social Responsibility (CSR) initiatives."
Craig MacKenzie, Deputy Chairman, FTSE4Good Advisory Committee said, "The new criteria is designed to be challenging but still achievable, and should prompt companies to become more transparent with CSR reporting."
At its meeting in March, the independent FTSE4Good Advisory Committee agreed to adopt new definitions describing a business’ impact on the environment. Companies will be placed in one of the three categories: high, medium or low, depending on their overall environmental impact.
The categories are defined using an environmental methodology developed by the Ethical Investment Research Service (EIRIS) and each category has graded eligibility requirements. These changes will require businesses to publish additional information on their environmental policies and procedures. Companies will be categorized at the FTSE4Good review in September 2002 and will then need to meet the phased implementation schedule shown below.
Jane Staunton, President, FTSE Americas said, "By introducing more stringent environmental criteria, the FTSE4Good series will continue to encourage more companies to meet and disclose Corporate Social Responsibility (CSR) initiatives."
Craig MacKenzie, Deputy Chairman, FTSE4Good Advisory Committee said, "The new criteria is designed to be challenging but still achievable, and should prompt companies to become more transparent with CSR reporting."
