FTSE4Good Index Series - FTSE Russell
Index overviewFTSE4Good Index SeriesPioneering global ESG indexesOverviewInvestors are increasingly incorporatingEnvironmental, Social and Governance(ESG) considerations into core benchmarksand passive investments. FTSE Russell hasbeen at the forefront of innovation in ESGindexing for nearly two decades, since thecreation of the FTSE4Good Index Seriesin 2001, one of the world’s first global ESGindex families.Commitment to qualityThe FTSE4Good Index Series is a market-leading tool forinvestors seeking to invest in companies that demonstrategood sustainability practices. It also supports investors thatwish to encourage positive change in corporate behavior andalign their portfolios with their values.Benefits Deliver impact through engaging with companies ontheir FTSE4Good assessment; therefore encouragingcompanies to improve ESG practicesFeaturesComprehensiveIncludes more than 15 benchmarks, based on the ESGRatings of over 7,200 securities in 47 Developed andEmerging markets.Nearly two decades of data historyThere are almost 20 years of index level returns and overthat time the ESG assessment process and inclusion criteriahas evolved to keep them aligned with industry trends andinvestor needs.Aligned with the UN SustainableDevelopment GoalsSupports alignment with the UN Sustainable DevelopmentGoals (SDGs). All 17 SDGs are reflected in the 14 ESGThemes that companies are assessed on in order to beincluded in the index series.Precise rules and focus on dataMinimizes subjectivity by having clearly defined rules forconstructing the indexes and assessing companies.Transparent methodology Aligns ESG values/objectives regarding controversialbusiness activities by excluding or applying strict criteria oncompanies involved with such activitiesThe index and ratings methodologies are available to users,so they can determine how a company is assessed. The ESGRatings are based on publicly available data. Avoids investing in pure play coal or traditionally excludedsectors such as tobacco and weaponsStrong governance Captures a broad universe of companies that aredemonstrating strong ESG practices Utilizes a globally recognized brand in FTSE4Good ftserussell.comOverseen by an independent external committee comprisingexperts within the investment community, business, NGOs,unions and academia.1
FTSE RussellFTSE4Good Index SeriesAbout FTSE Russell’s ESG RatingsThe FTSE4Good Index Series uses the overall Rating from FTSE Russell’sESG Ratings and data model to select companies for inclusion. The ESG Ratingsinclude over 7,200 securities in 47 Developed and Emerging markets.The ESG Ratings are comprised of an overall Rating, which is used to adjuststock weights in the FTSE4Good Index Series. The overall Rating breaks downinto underlying Pillar and Theme Exposures and Scores. The Pillars and Themesare built on over 300 individual indicator assessments that are applied to eachcompany’s unique ESG risk exposures.ESG RATINGSMeasure of the overall quality of acompany’s management of ESG issuesEnvironmentalScore :Measure of thequality of a company’smanagement ofEnvironmental issuesExposure:Measure of therelevance ofEnvironmentalissues for acompanyBiodiversityClimate ChangePollution and ResourcesSupply ChainWater SecurityScore :Measure of thequality of a company’smanagement of issuesrelated to each ThemeExposure:Measure of therelevance for acompany of eachThemeGovernanceSocialScore :Measure of thequality of a company’smanagement of SocialissuesExposure:Measure of therelevance ofSocial issues for acompanyCustomer ResponsibilityHealth and SafetyHuman Rights and CommunityLabor StandardsSupply ChainScore :Measure of thequality of a company’smanagement of issuesrelated to each Theme1 RatingExposure:Measure of therelevance for acompany of eachThemeScore :Measure of thequality of a company’smanagement ofGovernance issues3 PillarsAnti-corruptionCorporate GovernanceRisk ManagementTax TransparencyScore :Measure of thequality of a company’smanagement of issuesrelated to each ThemeOver 300 indicators in the model with each Theme containing 10 to 35 indicatorsAn average of 125 indicators are applied per companyIndex overviewExposure:Measure of therelevance ofGovernanceissues for acompanyExposure:Measure of therelevance for acompany of eachTheme14 Themes300 Indicators2
FTSE RussellFTSE4Good Index SeriesStep 1Index construction processStarting universeStart with the market capitalization weighted underlying index e.g. FTSE DevelopedIndex, FTSE All-Share Index.Step 1Constituent selectionThe FTSE4Good selection criteria are designed to reflect strong ESG riskmanagement practices. In order to be included in the FTSE4Good Index Seriescompanies must have an overall ESG Rating of 3.3 out of 51. This ensures onlycompanies demonstrating strong management of ESG risks are included.Developed markets Emerging marketsCompanies newly includedin the Index SeriesESG Rating of 3.3or higherESG Rating of 2.9or higherCompanies removed fromthe Index SeriesESG Rating lowerthan 2.9ESG Rating of lowerthan 2.4Step 1Step 2Exclude companies based on controversies andbusiness activitiesCompanies with exposure to “significant controversies” are not eligible for addition to theIndex Series, and in the most extreme cases current index constituents will be deleted.Manufacturers/producers of: Tobacco Weapons systems Controversial weapons (cluster munitions, anti-personnel mines, depleted uranium,chemical/biological weapons and nuclear weapons) Coal (ICB Subsector)Step 1Step 2Step 3Publish and Review IndexThe FTSE4Good Index Series is reviewed semi-annually in June and December.Any company with a Rating that has fallen below the minimum threshold is alloweda 12 month grace period to improve its Rating before the company is removed fromthe index. This incentivizes improvements in corporate practices and reduces the indexturnover should the company improve, therefore meeting the standards needed.1The threshold is lower for Emerging markets to reflect market differences.Index overview3
FTSE RussellFTSE4Good Index SeriesA global family of indexesThe FTSE4Good Index Series is calculated in real-time and is suitable for creating OTCand on-exchange derivative products as well as ETFs. Values are available on all themajor vendor screens.FTSE All-WorldDevelopedFTSE4GoodDevelopedIndexFTSE UKAll-ShareEmergingFTSE4GoodDeveloped100 xFTSE4GoodDevelopedAsia ndexFTSE4GoodUK IndexFTSE4GoodUS IndexFTSE4GoodEurope 50IndexFTSE4GoodAustralia 30IndexFTSEBlossomJapan IndexFTSE4GoodEmergingLatinAmericaIndexFTSE4GoodUK 50 IndexFTSE4GoodIBEX IndexFTSE JSEResponsibleInvestmentIndexFTSE4GoodASEAN5 IndexFTSE4GoodBursaMalaysiaIndexFTSE4GoodTIP TaiwanESG IndexFTSE4GoodBIVA IndexFTSE JSEResponsibleInvestmentTop 30 IndexFTSE4GoodIndonesiaIndexFTSE4GoodUS 100Index20012004FTSE4GoodOne of thefirst globalESG indexfamiliesFTSE4Good USSelect Indexcreated, today usedas a benchmark forthe largest passiveESG mutual fund20152016Launch ofFTSE JSEResponsibleInvestmentIndex SeriesLaunch ofFTSE4Good ASEAN5 Index andFTSE4GoodEmerging IndexLaunch of ESG dataanalytics platformincluding access toall underlying dataIndex overviewIndexes with exchange partners2007FTSE4GoodEnvironmentalLeaders indexesintroduced,highlighting best inclass companies2017Launch of FTSEBlossom JapanIndexLaunch ofFTSE4Good TIPTaiwan ESG Index201220132014ESG Ratings basedon FTSE4GoodmethodologylaunchedFTSE4Good GlobalMinimum VarianceIndex launchedreducing indexvolatilityExpansion of ESGRatings coverageand methodologyand launch ofFTSE4Good BursaMalaysia IndexSeries201820192020Launched theFTSE RussellStewardship,Transition andEngagementProgram for Change(STEP Change)Launch of theFTSE4Good BIVAIndex, FTSE4GoodNorth AmericaIndex andFTSE4GoodDeveloped AsiaPacific IndexEnhanced theFTSE ESG Ratings water criteraLaunch of theFTSE4GoodIndonesia Index4
FTSE RussellFTSE4Good Index SeriesAbout FTSE RussellFTSE Russell is a leading global index provider creating and managing a widerange of indexes, data and analytic solutions to meet client needs acrossasset classes, style and strategies. Covering 98% of the investable market,FTSE Russell indexes offer a true picture of global markets, combined withthe specialist knowledge gained from developing local benchmarks aroundthe world.FTSE Russell index expertise and products are used extensively byinstitutional and retail investors globally. For over 30 years, leading assetowners, asset managers, ETF providers and investment banks have chosenFTSE Russell indexes to benchmark their investment performance and createinvestment funds, ETFs, structured products and index-based derivatives.FTSE Russell indexes also provide clients with tools for asset allocation,investment strategy analysis and risk management.A core set of universal principles guides FTSE Russell index design andmanagement: a transparent rules-based methodology is informed byindependent committees of leading market participants. FTSE Russell isfocused on index innovation and customer partnership applying the highestindustry standards and embracing the IOSCO Principles. FTSE Russell iswholly owned by London Stock Exchange Group.For more information, visit ftserussell.com.To learn more, visit ftserussell.com; email info@ftserussell.com; or call your regionalClient Service Team office:EMEANorth AmericaAsia-Pacific 44 (0) 20 7866 1810 1 877 503 6437Hong Kong 852 2164 3333Tokyo 81 3 4563 6346Sydney 61 (0) 2 8823 3521Index overview5
FTSE4Good Index SeriesFTSE RussellFor more information about our indexes, please visit ftserussell.com. 2020 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes(1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE Global Debt Capital Markets Inc. and FTSEGlobal Debt Capital Markets Limited (together, “FTSE Canada”), (4) MTSNext Limited (“MTSNext”), (5) Mergent, Inc. (“Mergent”),(6) FTSE Fixed Income LLC (“FTSE FI”), (7) The Yield Book Inc (“YB”) and (8) Beyond Ratings S.A.S. (“BR”). All rights reserved.FTSE Russell is a trading name of FTSE, Russell, FTSE Canada, MTSNext, Mergent, FTSE FI, YB and BR. “FTSE ”, “Russell ”,“FTSE Russell ”, “MTS ”, “FTSE4Good ”, “ICB ”, “Mergent ”, “The Yield Book ”, “Beyond Ratings ” and all other trademarksand service marks used herein (whether registered or unregistered) are trademarks and/or service marks owned or licensed bythe applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell,MTSNext, FTSE Canada, Mergent, FTSE FI, YB or BR. FTSE International Limited is authorised and regulated by the FinancialConduct Authority as a benchmark administrator.All information is provided for information purposes only. All information and data contained in this publication is obtained bythe LSE Group, from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical erroras well as other factors, however, such information and data is provided “as is” without warranty of any kind. No member of theLSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty orrepresentation whatsoever, expressly or impliedly, either as to the accuracy, timeliness, completeness, merchantability of anyinformation or of results to be obtained from the use of FTSE Russell products, including but not limited to indexes, data andanalytics, or the fitness or suitability of the FTSE Russell products for any particular purpose to which they might be put. Anyrepresentation of historical data accessible through FTSE Russell products is provided for information purposes only and is not areliable indicator of future performance.No responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees,partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligentor otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing,transmitting, communicating or delivering any such information or data or from use of this document or links to this documentor (b) any direct, indirect, special, consequential or incidental damages whatsoever, even if any member of the LSE Group isadvised in advance of the possibility of such damages, resulting from the use of, or inability to use, such information.No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investmentadvice and nothing contained herein or accessible through FTSE Russell products, including statistical data and industry reports,should be taken as constituting financial or investment advice or a financial promotion.Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Indexreturns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflectback‑tested performance. All performance presented prior to the index inception date is back-tested performance. Back-testedperformance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodologythat was in effect when the index was officially launched. However, back-tested data may reflect the application of the indexmethodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based onrevisions to the underlying economic data used in the calculation of the index.This document may contain forward-looking assessments. These are based upon a number of assumptions concerning futureconditions that ultimately may prove to be inaccurate. Such forward-looking assessments are subject to risks and uncertaintiesand may be affected by various factors that may cause actual results to differ materially. No member of the LSE Group nor theirlicensors assume any duty to and do not undertake to update forward-looking assessments.No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means,electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of theLSE Group. Use and distribution of the LSE Group data requires a licence from FTSE, Russell, FTSE Canada, MTSNext, Mergent,FTSE FI, YB, BR and/or their respective licensors.Index overview6
that time the ESG assessment process and inclusion criteria . has evolved to keep them aligned with industry trends and investor needs. Aligned with the UN Sustainable Development Goals. Supports alignment with the UN Sustainable Development Goals (SDGs). All 17 SDGs are reflected in the 14 ESG . Themes that companies are assessed on in order to be
FTSE Russell An LSEG Business FTSE Global Equity Index Series, v10.9,September 2021 5 of 46 Section 2 Management Responsibilities 2.0 Management Responsibilities 2.1 FTSE International Limited (FTSE) 2.1.1 FTSE is the benchmark administrator of the index series.1 2.1.2 FTSE is responsible for the daily calculatio
FTSE Russell Corporate Actions and Events Guide for Market Capitalisation Weighted Indexes, v5.0, December 2020 3 of 31 FTSE Russell FTSE Russell is a trading name of FTSE International Limited, Frank Russell Company, FTSE Global Debt Capital Markets Limited (and its subsidiaries FTSE Global Debt Capital Markets Inc. and MTSNext Limited),
FTSE Russell An LSEG Business FTSE Blossom Japan Sector Relative Index, v2.5, 2022 年10 月 3 / 24 セクション1 はじめに 1.0 はじめに 1.1 本書は、FTSE Blossom Japan Index �を説明したものです。 本 ルールのコピーはwww.ftserussell.com から入手できます。 1.2 FTSE Blossom Japan Index は、FTSE Japan .
FTSE Russell 17 Index Control and Governance Framework FTSE Russell leads global best practice standards in governance, including those applied to FTSE TMX Canada, with a focus on transparent, robust and rules-driven index construction Index construction, management, and
and 31 July 2015. The average quorum for FTSE 100 companies during the 2015 proxy season has been 70.60%. This is similar to the average 2014 quorum, which amounted to 70.70%, and the average 2013 quorum, which amounted to 71%. Graph 1: Shareholder attendance levels: comparison of FTSE 100 and FTSE 250 between 2011 and 2015. FTSE 100 FTSE 250 0 .
Plan 63 Return of your initial deposit, plus: 4.5% return if the FTSE 100 is higher than 100% of its starting . The globalised business of the companies that comprise the FTSE 100 means that an investment in the FTSE 100 also provides currency diversification. The FTSE 100 is accessible to UK investors as it is quoted in Pounds Sterling.
Client Service Team office: EMEA 44 (0) 20 7866 1810. North America 1 866 551 0617 Asia-Pacific Hong Kong 852 2164 3333 Tokyo 81 3 4563 6346 Sydney 61 (0) 2 8823 3521. About FTSE Russell. FTSE Russell is a leading global index provider creating and managing a wide range of indexes
ESG Ratings of PLCs assessed by FTSE Russell# in accordance with FTSE Russell ESG Ratings Methodology Stock Code Company Name (sorted By Alphabetical) Sector F4GBM Index ESG Grading Band 6599 AEON CO. (M) BHD CONSUMER PRODUCTS & SERVICES ** 5139 AEON CREDIT SERVICE (M) BHD F
