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10 Jul 2001
Friends of the Earth has given a cautious welcome to the FTSE4Good index which was launched today. However, FOE is concerned about the environmental record of some of the companies on the UK list, and has concerns over the potential impact of the index on ethical investment.
The FTSE4Good index will apply to the mainstream corporate sector, using best practice criteria based on company progress on environmental sustainability, relationships with stakeholders and support for human rights. The index will be initially focused on companies' management rather than their performance.
Simon McRae, Investment Campaigner at Friends of the Earth said:
"The FTSE4Good index is a first step for mainstream fund managers in making the corporate sector more accountable. Management responsibility is important in assessing a company's social responsibility. But it is vital that the index moves quickly beyond management systems to looking at companies' significant ethical, environmental and social impacts. If it does this the index could be a real force for change.”
"We are concerned that some of the companies listed have a controversial track-record on social responsibility. Including companies that deny access to cheap anti-AIDS drugs to developing countries,fund controversial road-building schemes and promote genetically modified food is not the best advert for the index. We are also worried that the index will hit the socially responsible investment sector in this country by encouraging companies to settle for lower standards.”
Contact details:
Friends of the Earth
26-28 Underwood St.
LONDON
N1 7JQ
Tel: 020 7490 1555
Fax: 020 7490 0881
Web: www.foe.co.uk/feedback.html
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