• Approx. 800 China A Share securities now included in sustainable investment analysis covering climate, screenings and ESG Ratings 
  • Expansion of small cap coverage increases Japan research universe to approx. 1300 securities
  • Sustainable investment analysis now includes over 4300 securities across Asia-Pacific region

FTSE Russell, the global index and data provider, has today announced further expansion of its sustainable investment capabilities in Asia-Pacific. China A Share coverage in FTSE Russell’s ESG Ratings and data model has expanded, with approximately 800 securities now included. This brings coverage across Chinese securities* to 1800. In addition, an increase in the number of rated small caps brings the ESG research universe of Japanese securities to approximately 1300. Across the Asia Pacific region, over 4300 securities** are now included in FTSE Russell’s detailed sustainable investment analysis covering climate, screenings and ESG Ratings. The total coverage of securities globally now stands at 7200, enabling investor stewardship and ESG integration into active and passive strategies globally.
FTSE Russell’s sustainable investment data models provide a broad range of measures that can be used in multiple approaches; from considering climate risks, providing ESG Ratings and supporting investment alignment with the UN’s Sustainable Development Goals. 
China A Shares are the growth drivers of the world’s second-largest economy, covering stocks from financial services providers to technology innovators. Policy and operational developments by China in recent years have also been welcomed by market participants. Announced as part of the 2018 FTSE Equity Country Classification Review, China A Shares have been phased into the FTSE Global Equity Index Series (FTSE GEIS) as a Secondary Emerging market since June 2019, with Phase 1*** of completion set for March 2020. 
Japan continues to be an important market for the Group and FTSE Russell has successfully launched a number of initiatives to meet the increasing demand from Japanese investors to incorporate sustainable investment into their portfolios. This includes the creation of the FTSE Blossom Japan Index, which uses FTSE Russell’s innovative ESG Ratings data model. The index was selected by The Government Pension Investment Fund (GPIF) of Japan as a core ESG benchmark through its flagship fund. 
Jessie Pak, Managing Director, Head of Information Services Asia Pacific, LSEG: “We are delighted to expand our coverage in China and Japan, a mark of FTSE Russell’s ongoing commitment to the Asia-Pacific markets. Market participants across the globe are increasingly looking to incorporate sustainable investment approaches into their investment philosophy and active and passive strategies. Our detailed, structured and transparent ESG Ratings and data model demonstrate a clear standard for market participants and companies to utilise in their ESG stewardship and engagement efforts.”
Earlier this year, FTSE Russell announced that Australian small capitalisation securities would now be included in the FTSE Russell’s ESG research universe, bringing the number of Australian securities covered to approximately 280. 
FTSE Russell’s ESG Ratings are comprised of an overall Rating that breaks down into underlying Pillar and Theme Exposures and Scores. The Pillars and Themes are built on over 300 individual indicator assessments that are applied to each company’s unique circumstances. Eligible companies are each given an ESG Rating ranging from 0 to 5; with 5 being the highest rating. The ESG Ratings support alignment with the UN SDGs, with all 17 SDGs reflected in the 14 Themes under the ESG framework.
Further information can be found online at FTSE Russell’s ESG Ratings data page.
*Chinese share classes include A, B and H, which are all renminbi-denominated shares but traded in different currencies, depending on where they are listed. China companies incorporated and listed outside PRC are generally referred to as ‘Red Chips’, ‘P Chips’, ‘S Chips’ or ‘N Shares.
** All references to securities indicate equity securities. 
*** Phase 1 of China A Shares inclusion is based on 25% of each security’s investability weight, implemented in three tranches. 

Media contacts
Lucie Holloway / Nandeep Roopray  +44 (0)20 7797 1222
Sophie Mou  +852 2164 3267
Tina Wang  +886 2 8979 4868

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.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by the London Stock Exchange Group.

For more information, visit www.ftserussell.com.

© 2018 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 TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.

All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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 the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.