FTSE4Good Index Investing for a Better Future

Investing in the FTSE4Good Index is a great way to make a positive impact on the world, while also growing your wealth. The index is designed to identify companies that meet rigorous environmental, social, and governance (ESG) standards.

The FTSE4Good Index was launched in 2001, and it's now one of the most widely used ESG indices globally, with over $1 trillion in assets under management. This is a testament to the growing demand for sustainable investing.

By investing in the FTSE4Good Index, you're supporting companies that prioritize the environment, social responsibility, and good governance. This can include things like reducing carbon emissions, promoting diversity and inclusion, and ensuring strong corporate governance practices.

The index is widely used by investors, asset managers, and pension funds, and it's also a benchmark for ESG investing.

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The FTSE4Good Index Series uses a score-based methodology to determine the overall quality of a company's management of ESG issues. This methodology breaks down a total score and rates a company on three pillars and 14 themes using over 300 indicators.

Each company receives a score and an exposure assessment based on their management of each pillar, which are environmental, social, and governance issues. Companies are considered for constituent selection if they have an ESG rating above a certain threshold.

The three pillars are further broken down into themes, with companies receiving a score and an exposure assessment based on their management of each theme. The Series uses over 300 indicators to help assign scores to each pillar and theme.

Here are the 14 themes, grouped by pillar:

Social themes:

Governance themes:

Companies operating in developed markets must have an ESG rating of 3.3 or higher to be considered for constituent selection, while those in emerging markets must have a rating of 2.9 or higher. Developed market companies are removed if their rating falls below 2.9, and emerging market companies are removed if their rating drops under 2.4.

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To stay up-to-date on the latest changes, I recommend checking the FTSE4Good Index announcements regularly. This will ensure you have the most current information on index changes.

The FTSE4Good Indices are designed to promote good governance and environmental and social responsibility.

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Stay up-to-date on the latest index change notices and announcements, which are essential for investors and companies alike. The FTSE4Good Indices are a great place to start.

You can find the latest index change notices and announcements on the FTSE4Good website. They offer a range of indices, including the FTSE4Good Index Series Rules, which are available in PDF format.

The FTSE4Good Index Series Rules come in four different versions, each tailored to a specific market: FTSE4Good IBEX Index Rules, FTSE4Good Bursa Malaysia Index Rules, FTSE4Good TIP Taiwan ESG Index Ground Rules, and FTSE4Good Index Series Rules. Each version is also available in PDF format.

The FTSE4Good Index Series uses a score-based methodology to determine the overall quality of a company's management of ESG issues. This methodology breaks down a total score and rating a company on three pillars and 14 themes using over 300 indicators.

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The FCC Group has made a notable achievement by being included in the prestigious FTSE4Good Index. This index highlights companies that demonstrate sound environmental, social, and corporate governance practices.

FCC's inclusion in the FTSE4Good Index is a testament to the trust its stakeholders have placed in the Group's socially responsible commitment. This commitment is evident in the Group's integration of environmental, social, and good corporate governance indicators into their business performance.

The Group's Board of Directors approved the CSR policy in 2016, which aimed to reinforce their commitment to sustainable performance. This policy was a significant step towards promoting responsible business practices.

In 2017, the Board approved the Fourth Master Plan in Corporate Responsibility, which is valid until 2020. This plan outlines the Group's strategy for promoting corporate responsibility and sustainability.

The Board also gave the green light to a new Code of Ethics and Conduct in 2018. This new code is designed to promote a culture of ethics and integrity within the Group.

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The FTSE4Good Index Series is a collection of socially responsible indexes administered by the Financial Times Stock Exchange-Russell Group (FTSE).

These indexes include companies that score highly in measures of corporate social responsibility (CSR) and follow strict environmental, social, and corporate governance criteria.

The series includes individual stock indexes tailored for specific geographic regions, such as the United States, Australia, Japan, and Latin America.

The indexes can be used for various purposes, including financial products, research, reference, and benchmarking.

Investors can use the indexes to select individual stocks, such as by choosing from the top holdings of the U.S.-based index, which as of April 2023 included companies like Apple Inc. and Microsoft Corporation.

Here are some of the key uses of the FTSE4Good Index Series:

Johnson Controls has been recognized by the FTSE4Good Index Series for 2024, marking the 19th year the company has been included on the prestigious index.

The FTSE4Good Index Series is a series of benchmark and tradable indices for ESG (Environmental, Social and Governance) investors, launched in 2001 by FTSE Russell. It measures the performance of companies demonstrating strong ESG practices.

Johnson Controls has achieved an average score of 4.1 out of 5, significantly higher than its industry's average score of 2.5, across the categories of environment, social, and governance.

The company's inclusion on the FTSE4Good Index Series is based on FTSE Russell's ESG Ratings and data model, which includes over 7,200 securities in 47 developed and emerging markets.

Johnson Controls has been independently assessed according to FTSE Russell's ESG Ratings and data model, which includes over 300 indicator assessments that are applied to each company's unique environmental, social, and governance risk exposures.

Here are some of the other recognitions Johnson Controls has received:

The ASEAN 5 is a group of five Southeast Asian countries that are part of the ASEAN economic community. These countries are Malaysia, Indonesia, the Philippines, Singapore, and Thailand.

The FTSE4Good ASEAN 5 Index has been designed to identify companies with recognised corporate responsibility practices listed on the leading ASEAN financial markets.

The ASEAN 5 countries have a combined population of over 600 million people, making them a significant market for businesses.

The index constituents are selected and screened in accordance with transparent and defined Environmental, Social and Governance (ESG) criteria.

The FTSE4Good IBEX Index is a partnership between FTSE Group and Bolsas y Mercados Españoles (BME).

Constituents of the FTSE4Good IBEX Index are companies in the BME's IBEX 35 Index and the FTSE Spain All Cap Index.

These companies must meet the FTSE4Good Index Series eligibility criteria, which are outlined in the overview provided for the FTSE4Good IBEX Index.

The FTSE4Good IBEX Index is a specific index that combines companies from the IBEX 35 and FTSE Spain All Cap Index.

Bursa Malaysia is home to the FTSE4Good Bursa Malaysia Index, which selects constituents from the FTSE Bursa Malaysia EMAS Index based on transparent Environmental, Social and Governance (ESG) criteria.

This index aims to identify Malaysian companies with recognized corporate responsibility practices, expanding the range of benchmarks for the Malaysian Markets.

The FTSE4Good Bursa Malaysia Index constituents are carefully screened to meet the set ESG criteria, ensuring a more sustainable and responsible investment option.

The index is designed to promote corporate responsibility and sustainability in the Malaysian markets, providing investors with a more informed decision-making process.

By incorporating ESG factors, the index offers a unique perspective on investing in Malaysian companies that prioritize social and environmental responsibility.

Explore further: Social Investing

The FTSE4Good Index Series is a collection of socially responsible stock indexes administered by the Financial Times Stock Exchange-Russell Group (FTSE). It highlights companies that score highly in measures of corporate social responsibility (CSR).

The series encompasses several SRI indexes, each with its own geographic focus, such as the United States, Australia, Japan, and Latin America. This allows investors to choose the region they're interested in.

To be included in the FTSE4Good Index Series, companies must score highly in measures of environmental, social, and governance (ESG) practices. This requires strong policies in areas such as respect for human rights, internal labor relations, and workplace safety.

Companies are evaluated based on their efforts to reduce the production of fossil fuels and evolve their business into more environmentally friendly operations. Oil and gas companies are not dismissed out-of-hand; instead, they're evaluated based on their progress.

The FTSE4Good Index Series uses a score-based methodology to determine the overall quality of a company's management of ESG issues. This includes over 300 indicator assessments applied to each company's unique environmental, social, and governance risk exposures.

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Here are some of the key takeaways about the FTSE4Good Index Series:

You can get into the FTSE4Good by investing in funds that mirror its performance, which can be found at various brokerages.

To be listed on the FTSE4Good index, a company must meet certain criteria.

Investors can choose from a variety of funds that track the FTSE4Good indices.

A company's inclusion in the FTSE4Good index requires meeting specific criteria.

The FTSE4Good Index Series uses a score-based methodology to determine the overall quality of a company's management of ESG issues. Companies are rated on environmental, social, and governance issues, with a total score and rating based on three pillars and 14 themes.

Each theme contains 10 to 35 indicators, with an average of 125 indicators applied per company. This comprehensive approach helps assign scores to each pillar and theme, ensuring only companies demonstrating strong ESG management are included in the index.

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The FTSE4Good TIP Taiwan ESG Index is a great example of a responsible investment tool. It's designed to measure the performance of companies on the Taiwan Stock Exchange that meet globally recognised ESG inclusion standards used by the FTSE4Good Index Series.

The index is a collaboration between FTSE Russell and Taiwan Index Plus Corporation, a subsidiary of the Taiwan Stock Exchange. This partnership brings together expertise in ESG investing and index creation.

Taiwan Index Plus Corporation is a key player in the development of the index, leveraging their knowledge of the Taiwan market and ESG best practices.

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The FTSE4Good index series has been a game-changer in the world of ESG, launching in 2001 with a transparent approach to selecting constituents based on environmental, social, and governance (ESG) performance.

The series was initially met with skepticism, with some regarding its approach as a fad. However, two decades later, the capital markets and investment approaches have changed beyond recognition, with financial institutions around the world incorporating sustainability into their philosophy and processes as a matter of course.

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The FTSE4Good index series has been a catalyst for companies to improve their sustainability practices, using globally recognised ESG inclusion standards. This shift in focus has had a significant impact on the way companies operate.

The FTSE4Good TIP Taiwan ESG Index is a prime example of this, measuring the performance of companies on the Taiwan Stock Exchange that meet the ESG inclusion standards used by the FTSE4Good Index Series.

The FTSE4Good Index Series offers a range of indexes that cater to different regions and investment strategies. These indexes are designed to highlight companies that score highly in measures of corporate social responsibility (CSR).

The FTSE4Good Index Series has several stock indexes that are included as a FTSE4Good product. The FTSE4Good Emerging Indexes, for instance, covers over 20 emerging countries and was launched in 2016.

The indexes are applied to various regions, including emerging countries, ASEAN financial markets, and the Spanish stock market. For example, the FTSE4Good ASEAN 5 Index constituents are selected and screened in accordance with transparent and defined ESG criteria.

The FTSE4Good Index Series also offers a Developed Minimum Variance Index, which seeks to achieve reduced index volatility based on historical return information. This is designed to reflect market participants' desire for an index that offers potential improvements to the risk-reward ratio.

The indexes are created in partnership with other organizations, such as Bolsas y Mercados Españoles (BME) and Taiwan Index Plus (TIP) Corporation. The FTSE4Good IBEX Index, for instance, is created in partnership with BME.

Here are some examples of FTSE4Good Indexes: