FTSE4Good criteria promote incremental progress in corporate social responsibility performance, and climate change is the latest topic covered in newly proposed standards.
Last month FTSE4Good announced the addition of 24 companies and the deletion of nine from its global socially responsible investing (SRI) index series resulting from its semi-annual review. Deletions included Enel for acquiring a nuclear power producer, Hasbro for falling short on supply chain labor standards, and Harley-Davidson and six others for failing to meet environmental criteria.
The FTSE4Good philosophy calls for setting challenging but achievable standards on specific social and environmental issues, then ratcheting those criteria up periodically to inspire incremental improvement in corporate social responsibility (CSR) performance. The fact that FTSE4Good segments its criteria means that a deletion can result for falling short in a specific area, such as human rights, regardless of how well the company performs on other environmental, social, or governance (ESG) issues.
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