FTSE makes SRI index entry tests more stringent
UK- Index provider FTSE Group has revised its SRI indices FTSE4Good and introduced more comprehensive environmental standards that companies have to meet to qualify for inclusion. FTSE says the changes mean that all companies, not just those most likely to affect the environment, will have to meet the more rigorous requirements.
New categories have been designed in conjunction with the Ethical Investment Research Service and businesses will have to disclose additional information on their environmental policies and procedures.
Companies will be reviewed in September and will have targets set for next March and September 2003.
Mark Makepeace, CEO of FTSE Group said: “by introducing more stringent environmental criteria, the FTSE4Good series will continue to encourage more companies to meet and disclose corporate social responsibility initiatives.”
FTSE says that the new criteria are designed to be more challenging but achievable and that they should prompt companies to become more transparent on environmental issues.