FTSE UK ESG Risk-Adjusted Index Series

The FTSE UK ESG Risk-Adjusted Index Series, based on the FTSE UK Index Series, is designed to reflect the performance of UK stocks, whilst improving broad ESG characteristics and maintaining similar risk/return characteristics to the underlying universe.

The Index Series is constructed to adjust for carbon risks and ESG performance using the FTSE Russell Target Exposure methodology. The indices target a 50% reduction in fossil fuel reserve exposure, 50% reduction in operational carbon emissions intensity, and 5% ESG score improvement on the index level at semi-annual rebalances, relative to the underlying FTSE 100 Index, FTSE 250 Index, FTSE 350 Index and FTSE All-Share Index.

The index excludes companies involved with controversial product activities, including controversial weapons; tobacco; thermal coal (extraction and energy generation); oil sands; shale energy & arctic exploration, and companies involved with controversial conduct related to the UN Global Compact Principles.

The indices are constructed with the FTSE Target Exposure Framework, which allows a transparent tilt exposure towards and away from index constituents according to a number of exposure objectives.

The indices can be used as performance benchmarks, or as the basis for index-linked products including index tracking funds, derivatives, and Exchange Traded Funds (ETFs).

The index series comprises of:

• FTSE 100 ESG Risk-Adjusted Index
• FTSE 250 ESG Risk-Adjusted Index
• FTSE 350 ESG Risk-Adjusted Index
• FTSE All-Share ESG Risk-Adjusted Index