— Index consists of companies from five member exchanges, measured against FTSE’s ESG Ratings Model
— Demonstrates FTSE Russell’s support for ESG integration into investments at a global and regional level
FTSE Russell, the global index provider, announces the launch of the FTSE4Good ASEAN 5 Index, an ESG index developed in collaboration with the Association of Southeast Asian Nations (ASEAN) Exchanges. The new benchmark consists of companies listed on the five ASEAN exchanges from Developed and Emerging markets: Singapore, Indonesia, Malaysia, Philippines and Thailand. The companies included in the index have been assessed to ensure they meet the standards required for FTSE4Good inclusion.
The FTSE ESG Ratings, which will act as a basis for the new index series methodology, provide objective ESG exposure and performance data that is based on clear and easy to apply methodologies. Companies are assessed on over 300 indicators covering the three pillars of environmental, social and governance to achieve an overall cumulative score. This detailed assessment allows investors to understand a company’s ESG practices in multiple dimensions.
This latest announcement demonstrates FTSE Russell’s leading role in the development of sophisticated ESG benchmarking tools. It has been a pioneer in the space, having first launched the FTSE4Good Index Series in 2001, and has seen a significant increase in the number of institutional investors seeking to integrate ESG considerations into their portfolios. To meet this demand, the range, depth and breadth of techniques to apply ESG factors within the investment process have become more sophisticated and varied. Over the past eighteen months, FTSE Russell has also launched the FTSE/JSE Responsible Investment Benchmark and the FTSE4Good Bursa Malaysia, FTSE Russell continues to collaborate with exchanges around the world, which forms part of London Stock Exchange Group’s continued commitment to an open access model.
Donald Keith, Deputy CEO, FTSE Russell said:
“As index partner to the ASEAN Exchanges we are delighted to add the FTSE4Good ASEAN 5 Index to both the FTSE ASEAN and FTSE4Good Index families. ASEAN markets are attracting significant investor interest and the new product provides an important tool for portfolio construction and benchmarking. Institutional investors around the world are increasing their focus on integrating environmental social and governance data into investment approaches.”
Speaking on behalf of ASEAN Exchanges, Datuk Seri Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said:
“ASEAN Exchanges have been working diligently to create ASEAN centric products and promote ASEAN as an asset class. The introduction of an ASEAN ESG Index is a key development in the effort to showcase quality companies that are benchmarking their environment, social and corporate governance practices against some of the world's best. The FTSE4Good ASEAN 5 is the start of a new ASEAN Asset class based not only performance, but also on a quality of the companies.”
FTSE Russell and ASEAN’s latest collaboration builds on the existing relationship calculating the FTSE ASEAN Index Series, which is comprised of companies listed on the seven exchanges that make up the ASEAN partnership.
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Notes to editors:
About FTSE Russell:
FTSE Russell is a leading global provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. More than $15 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment 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.
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