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Will Oulton Deputy Chief Executive, FTSE Group BSR, November 2002
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FTSE4Good objectives 1.Set a minimum standard for CSR that most stakeholders and investors will accept – standard is challenging but achievable and gets higher over time 2.An index providing a performance measurement tool for socially responsible investors 3.Raising funds for to support UNICEF programs globally
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FTSE4Good contribution to CSR Provides a transparent global standard for identifying socially responsible companies Highly visible due to the public profile and reputation of FTSE Providing companies with clear guidance about best practice on corporate social responsibility Expands the debate about social and environmental responsibility in the financial mainstream Momentum
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FTSE4Good Relative Performance A solid long term investment
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FTSE4Good – making a difference Achieving change Since launch, over 150 companies have made the effort to meet the criteria and gain entry 33% UK 36% European 18% Japanese 12% US
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Issues Survey fatigue Quality of research Small amount of invested assets No accepted standard for csr eg DJ SAM – BAT Subjectivity and bias of sampling Sector leaders are ok but what about the rest?
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CSR Challenges Transparency Company disclosure The “black box” answer Mid and small cap company inertia Lack of verifiable performance data
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On the bright side….. Low costs to transition portfolio’s to an sri benchmark More liquid investment products are planned SRI as an investment style will get a higher profile in the near/medium term There is an increasingly positive regulatory environment
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And why do FTSE do this….. Examples of funding: Rural water supply and environmental sanitation program for poor communes in Vietnam Water borehole program in Zambia Community school development in the DR Raised $ 1 million so far
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