The FTSE4Good Global Index Series has added 13 companies to its list and removed eight, including oil giant BP.
Following its semi-annual review the financial index used by investors worldwide has amended its list of ethical investment companies "based on environmental and social criteria set out in the FTSE4Good Index Rules".
Three UK companies were deleted from the Index, each on environmental grounds. Taylor Wimpey and Morgan Sindall were removed for not meeting FTSE4Good climate change criteria. BP, however was removed due to exceptional circumstance. FTSE4Good said:
"The Committee’s decision to remove BP followed consideration of the company’s response to the Gulf of Mexico oil spill, the environmental and social impact and its history of similar incidents."
A spokesman for BP told Civil Society that the company hopes to meet with FTSE4Good to discuss its decision in the near future, adding:
"Clearly we're disappointed but this won't have any impact on our involvement with social investment which we have been part of for a number of years."
Greenpeace sees the move as a minor victory. Ben Ayliffe, senior climate and energy campaigner at Greenpeace UK, said:
"We’re pleased that FTSE4good have finally recognized that BP’s business strategy, which entails a six degree global temperature rise in addition to increased drilling in areas where any accident can become an ecological disaster, is not, in fact, sustainable. Although by this point we’re not sure how many investors really needed the FTSE to tell them that."
The remaining five companies removed failed to meet the FTSE4Good human and labour rights criteria. They were Japan's Bridgestone Corporation, Kirin Holdings and Kubuta, and the USA's Du Pont de Nemours and United Parcel Service.
Three further UK companies were added to the Index. Real estate companies Grainger and the Unite Group and telecom firm TalkTalk Telecom Group will take their places on the list when the changes become active after the close of the markets on Friday.
New FTSE4Good Index Constituents
No. | Company Name | Country | Sector |
1 | Celesio | Germany | Food and Drug Retailers |
2 | Tenaris S.A. | Italy | Industrial Metals |
3 | Banco Popular Esp | Spain | Banks |
4 | Iberdrola | Spain | Electricity |
5 | Swatch Group AG Reg. | Switzerland | Personal Goods |
6 | Grainger | UK | Real Estate Investment & Services |
7 | TalkTalk TelecomGroup | UK | Fixed Line Communications |
8 | Unite Group | UK | Real Estate Investment & Services |
9 | AOL | USA | Software & Computer Services |
10 | CareFusion Corporation | USA | Health Care Equipment & Services |
11 | Chubb Corp | USA | Nonlife Insurance |
12 | Expeditors Intl Washington | USA | Industrial Transportation |
13 | Intuit | USA | Software& Computer Services |
Removed from FTSE4Good Index
No. | Company Name | Country | Sector | Reason for Removal |
1 | Bridgestone Corporation | Japan | Automobiles& Parts | Human Rights |
2 | Kirin Holdings | Japan | Beverages | Human Rights |
3 | Kubota | Japan | Industrial Engineering | Human Rights |
4 | Morgan Sindall | UK | Construction & Materials | Climate Change |
5 | Taylor Wimpey | UK | Household Goods & Home Construction | Climate Change |
6 | Du Pont de Nemours | USA | Chemicals | Human Rights |
7 | United Parcel Service | USA | Industrial Transportation | Human Rights |
8 | BP | UK | Oil & Gas Producers | Suspension |
