FTSE Group has tightened up the criteria for its FTSE4Good corporate responsibility index series, toughening the climate change code of conduct companies must meet if they are to remain in the index.
The new benchmarks, which will be phased in over the next two years, are based on a climate change consultation FTSE undertook during 2006 and which received over 100 responses from corporations, fund managers, NGOs and private investors. FTSE estimated that of the 250 companies identified as having the greatest impact on climate change, less than 50 are expected to already meet the new requirements on strategy, system, disclosure and performance.
Mark Kenber, policy director at The Climate Group, welcomed the new criteria, arguing that incorporating sustainable behaviour into business practice is in the long-term interests of stakeholders. Kenber recognised that meeting these requirements will not be easy, but said he was convinced the effort would result in positive economic and environmental impacts.
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