FTSE4Good Index Series Key Assessment

Introduction The FTSE4Good Index Series

The FTSE4Good Index Series evaluates the sustainability performance of companies based on environmental, social, and governance (ESG) criteria. 

While the specific assessment criteria used in the FTSE4Good index may vary over time, here are some key areas and indicators that are typically considered:

Chriteria The FTSE4Good Index Series

1. Environmental Criteria

   - Climate change: This criterion assesses companies' efforts to mitigate and adapt to climate change, including carbon emissions, renewable energy use, and climate-related policies and strategies.

   - Resource use: This criterion evaluates companies' resource efficiency, such as energy and water consumption, waste management, and recycling practices.

   - Pollution control: This criterion assesses companies' efforts to minimize pollution, including air and water pollution prevention measures, hazardous substance management, and environmental impact assessments.

2. Social Criteria

   - Human rights: This criterion evaluates companies' commitment to human rights, including labor rights, fair employment practices, and the protection of indigenous peoples' rights.

   - Labor standards: This criterion assesses companies' adherence to internationally recognized labor standards, such as fair wages, working hours, and workplace health and safety.

   - Supply chain labor standards: This criterion examines companies' efforts to ensure ethical practices throughout their supply chains, including supplier assessments and monitoring mechanisms.

3. Governance Criteria

   - Corporate governance: This criterion assesses companies' governance structures, transparency, and accountability, including board composition, executive remuneration, and anti-corruption measures.

   - Risk management: This criterion evaluates companies' risk assessment and management practices, including the identification and management of ESG-related risks.

   - Tax transparency: This criterion assesses companies' disclosure and transparency regarding tax policies and practices.

The FTSE4Good Index Series uses a transparent and rules-based methodology to evaluate companies' ESG performance. 

Companies must meet minimum ESG performance standards to be included in the index. The specific indicators and weightings used in the assessment are determined by FTSE Russell, the organization behind the index.