The FTSE4Good Index Series is a series of

ethical investment Socially responsible investing (SRI), social investment, sustainable socially conscious, "green" or ethical investing, is any investment strategy which seeks to consider both financial return and social/environmental good to bring about socia ...

stock market indices launched in 2001 by the

FTSE Group FTSE International Limited trading as FTSE Russell ( "Footsie") is a British provider of stock market indices and associated data services, wholly owned by the London Stock Exchange (LSE) and operating from premises in Canary Wharf. It operate ...

which reports on the performance of companies which demonstrate "strong Environmental, Social and Governance practices". A number of

stock market indices In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance. Two of the ...

are available, for example covering UK shares, US shares, European markets and Japan, with inclusion based on a range of

corporate social responsibility Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethicall ...

criteria. Research for the indices is supported by the Ethical Investment Research Services (EIRIS). The index excludes companies due to their involvement in tobacco production, nuclear weapons, conventional weapon systems, or coal power industry and rates companies for inclusion based environmental sustainability, relationships with stakeholders, attitudes to human rights, supply chain labour standards and the countering of bribery.Collison, D. J., Cobb, G., Power, D. M. and Stevenson, L. A. (2008), "The financial performance of the FTSE4Good indices". ''Corporate Social Responsibility and Environmental Management'', 15: 14–28. . The index series is published by

FTSE Russell FTSE Russell is a subsidiary of London Stock Exchange Group (LSEG) that produces, maintains, licenses, and markets stock market indices. The division is notable for FTSE 100 Index, Russell 2000 Index, among other indices. The brand and divisio ...

. According to an event study reported in 2007, it was uncertain whether inclusion in or exclusion from the index effectively incentivised the affected companies to change their behaviour in regards to social responsibility. Curran and Moran, who undertook the study, found that the movements in

share price A share price is the price of a single share of a number of saleable equity shares of a company. In layman's terms, the stock price is the highest amount someone is willing to pay for the stock, or the lowest amount that it can be bought for. B ...

s which followed FTSE4Good announcements were not significant in a statistical sense.M. Martin Curran, Dominic Moran (2007)
"Impact of the FTSE4Good Index on firm price: An event study"
''Journal of Environmental Management'', Volume 82, Issue 4, March 2007, pp. 529-53. . As to the financial performance for investors, there is no evidence that a portfolio that is subject to ethical criteria performs significantly differently compared to their unrestricted equivalent.

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External links

FTSE4Good Index Series
FTSE Group stock market indices Ethical investment stock market indices {{Finance-stub

See also

References

External links