FTSE4Good

The FTSE4Good indices are stock market indices to measure the success of publicly listed companies that meet certain criteria with regards to their Corporate Responsibility practice.

FTSE4Good indices (there are a number of them) behave very much like the FTSE100 index, monitoring and publishing the market capitalization of publicly listed companies, enabling investors to buy and sell shares in these businesses. The only difference with the FTSE4Good indices is that there is a set criteria for inclusion. This criteria is fairly broad, but can be summed-up as follows:

1. A company cannot be included if its business is directly involved in certain sectors (i.e. tobacco, arms & nuclear).
2. A company must meet the FTSE4Good framework of standards that focuses on company policy, and is founded around internationally recognised guidelines in the areas of: environmental impact, stakeholder and social impact, human rights, supply chain standards and anti-bribery
3. How stringent the criteria are also depends on whether the company concerned is considered high or low impact in that area (i.e. if a company is deemed to have a high environmental impact, they must show particularly strong focus on addressing this).

The FTSE4Good initiative operates in conjunction with the Ethical Investment Research Information Service (EIRIS) who judge a company's inclusion in the index according to information from the company website, public documents, the company report and also from direct contact and a questionnaire. Inclusion is reviewed twice annually.

The FTSE4Good Indices are:
FTSE4Good Global; FTSE4Good UK; FTSE4Good US; FTSE4Good Europe and FTSE4Good Japan.

The tradable indices are:
The FTSE4Good Global 100 and The FTSE4Good US 100 (for the biggest 100 companies in the respective indices).

The FTSE4Good UK 50 and the FTSE4Good Europe 50 (for the 50 largest companies in the respective indices)