The FTSE4Good was launched in July 2001 and is the first index series for socially responsible investors (SRI.) Companies can only be included in the index if they meet the standards set out by FTSE and the Ethical Investment Research Service (EIRiS.) The standards focus on :
- Actively working towards environmental sustainability
- Human rights
- Countering bribery
- Supply chain labour standards
- Working towards climate control
- Developing positive relationships with stakeholders
Since being set up there have been some high profile exclusions. These include Tesco because it failed to publish an environmental report and Nestle because of its marketing strategy in marketing breast milk substitutes.
Other companies excluded are those which are deemed not socially responsible. These are listed on the FTSE4Good pages as:
- Tobacco producers
- Companies involved in any way with the production of nuclear weapons
- Companies manufacturing whole weapons systems
- Owners or operators of nuclear power stations
- Companies involved in the extraction or processing of uranium
More information can be found at FTSE4Good
