The FTSE4Good Index Series is designed to measure the performance of companies demonstrating specific Environmental, Social and Governance (ESG) practices.
Transparent management and clearly defined ESG criteria make FTSE4Good indices suitable tools to be used by a wide variety of market participants when creating or assessing sustainable investment products. FTSE4Good indices can be used in four main ways:
- Financial products - as tools in the creation of index-tracking investments, financial instruments or fund products focused on sustainable investment.
- Research - to identify companies with specific environmental and social practices.
- Reference - as a transparent and evolving global ESG standard against that companies can assess their progress and achievement.
- Benchmarking - as a benchmark index to track the performance of sustainable investment portfolios.
FTSE4Good Emerging Indices
The FTSE4Good Index Series is a series of benchmark and tradable indices for ESG (Environmental, Social and Governance) investors, which was launched in 2001. The FTSE4Good criteria is applied to the FTSE Emerging Indices, which covers over 20 emerging countries, and was launched in 2016.
FTSE4Good ASEAN 5 Index
The FTSE4Good ASEAN 5 Index constituents are selected and screened in accordance with transparent and defined Environmental, Social and Governance (ESG) criteria. The index has been designed to identify companies with recognised corporate responsibility practices, listed on the leading ASEAN financial markets: Bursa Malaysia, Indonesia Stock Exchange (IDX), The Philippine Exchange, Singapore Exchange (SGX), and The Stock Exchange of Thailand.
FTSE4Good IBEX Index
FTSE Group has partnered with Bolsas y Mercados Españoles (BME) to create the FTSE4Good IBEX Index. Constituents comprise companies in the BME's IBEX 35 Index and the FTSE Spain All Cap Index that meet the FTSE4Good Index Series eligibility criteria. An overview of the FTSE4Good IBEX Index inclusion criteria is provided below.
FTSE4Good Bursa Malaysia Index
The FTSE4Good Bursa Malaysia Index constituents are selected from the constituents of the FTSE Bursa Malaysia EMAS Index, screened in accordance with the transparent and defined Environmental, Social and Governance (ESG) criteria. The index has been designed to identify Malaysian companies with recognised corporate responsibility practices, expanding the range of the benchmarks of the FTSE Bursa Malaysia Index Series for the Malaysian Markets.
FTSE4Good TIP Taiwan ESG Index
FTSE Russell has partnered with Taiwan Index Plus (TIP) Corporation on the FTSE4Good TIP Taiwan ESG Index. Taiwan Index Plus Corporation is a subsidiary of the Taiwan Stock Exchange (TWSE). The index is designed to measure the performance of companies on the Taiwan Stock Exchange that meet the globally recognised ESG inclusion standards used by the FTSE4Good Index Series.
FTSE4Good Developed Minimum Variance Index
FTSE4Good Developed Minimum Variance Index. FTSE's Developed Minimum Variance indices aim to achieve reduced index volatility based on historical return information. The series is designed to reflect market participants' desire for an index that offers potential improvements to the risk reward ratio, whilst maintaining full allocation to the relevant equity market.
FTSE4Good Bursa Malaysia Index Series Overview
FTSE4Good Index Series 20 year anniversary report
FTSE4Good Index Series Overview
FTSE4Good Index Series 15 Year Anniversary Report
FTSE4Good Breast Milk Substitutes (BMS) Criteria and Additional Information
Find out the sustainability metrics of an index
Why FTSE4Good Indices?
The benchmark that set the ESG standards
Twenty years ago, a new kind of equity index was introduced amidst considerable public skepticism. The FTSE4Good index series, launched in 2001, used transparent metrics of environmental, social and governance (ESG) performance to select its constituents, incentivizing companies to improve their sustainability practices.
Some regarded the approach of the new index as a fad. At the time, many investment professionals still considered ESG issues as irrelevant, and at worst as detrimental to returns.
Two decades later the capital markets and investment approaches have changed beyond recognition. Financial institutions around the world now incorporate sustainability into their philosophy and processes as a matter of course.
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