The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. Transparent management and clearly-defined ESG criteria make FTSE4Good indexes suitable tools to be used by a wide variety of market participants when creating or assessing sustainable investment products. FTSE4Good indexes can be used in four main ways:
FTSE4Good Emerging Indexes
The FTSE4Good Index Series is a series of benchmark and tradable indexes for ESG (Environmental, Social and Governance) investors, which was launched in 2001. The FTSE4Good criteria is applied to the FTSE Emerging Indexes, which covers over 20 emerging countries, and was launched in 2016.
FTSE4Good ASEAN 5 Index
The FTSE4Good ASEAN 5 Index constituents are selected and screened in accordance with transparent and defined Environmental, Social and Governance (ESG) criteria. The index has been designed to identify companies with recognised corporate responsibility practices, listed on the leading ASEAN financial markets: Bursa Malaysia, Indonesia Stock Exchange (IDX), The Philippine Exchange, Singapore Exchange (SGX), and The Stock Exchange of Thailand.
FTSE4Good IBEX Index
FTSE Group has partnered with Bolsas y Mercados Españoles (BME) to create the FTSE4Good IBEX Index. Constituents comprise companies in the BME's IBEX 35 Index and the FTSE Spain All Cap Index that meet the FTSE4Good Index Series eligibility criteria. An overview of the FTSE4Good IBEX Index inclusion criteria is provided below.
FTSE4Good Developed Minimum Variance Index
FTSE4Good Developed Minimum Variance Index. FTSE's Developed Minimum Variance indexes aim to achieve reduced index volatility based on historical return information. The series is designed to reflect market participants' desire for an index that offers potential improvements to the risk reward ratio, whilst maintaining full allocation to the relevant equity market. See here for more information.
FTSE4Good Bursa Malaysia Index
The FTSE4Good Bursa Malaysia Index constituents are selected from the constituents of the FTSE Bursa Malaysia EMAS Index, screened in accordance with the transparent and defined Environmental, Social and Governance (ESG) criteria. The index has been designed to identify Malaysian companies with recognised corporate responsibility practices, expanding the range of the benchmarks of the FTSE Bursa Malaysia Index Series for the Malaysian Markets.
FTSE4Good TIP Taiwan ESG Index
FTSE Russell has partnered with Taiwan Index Plus (TIP) Corporation on the FTSE4Good TIP Taiwan ESG Index. Taiwan Index Plus Corporation is a subsidiary of the Taiwan Stock Exchange (TWSE). The index is designed to measure the performance of companies on the Taiwan Stock Exchange that meet the globally recognised ESG inclusion standards used by the FTSE4Good Index Series.
The indexes described above are suitable for benchmarking purposes and can be used as tools in the creation of financial products, such as institutional and retail funds, exchange traded funds (ETFs) and derivatives.