FTSE Russell makes changes to index series
Global index, analytics and data provider FTSE Russell has added 82 new companies to its FTSE4Good Developed Index, with a further 34 companies being added to the FTSE4Good Emerging Index and eight new Japanese companies entering the FTSE4Good and FTSE Blossom Japan Index.
The changes were announced following the firm’s June 2018 semi-annual review. To be included in the index series, the companies needed to meet specific thresholds in relation to environmental, social and governance (ESG) practices, it said.
Also, the largest number of additions from this review came from the US (31), with the region remaining the largest contributor of companies to the index.
At the same time, eight Japanese and eight Australian firms were added to the index while another 35 companies came from 15 different countries.
The report found that almost 40 per cent of global asset managers surveyed who anticipated applying smart beta strategies in the next 18 months were planning to factor ESG considerations into their approach, with nearly half of them considering ESG factors for investment risk or performance reasons.
FTSE Russell’s head of sustainable investment, David Harris, said: “Since launching the FTSEGood Index Series back in 2001 the world and the investment landscape has changed dramatically and sustainable investing, climate risk, the transition to a low carbon economy and ESG integration into benchmarks are now an important focus for investors, policy makers and companies alike.”
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