The FTSE Group (FTSE) has launched the FTSE4Good Australia 30 Index, for use by Australian investors to create index-linked products, including exchange-traded funds and index funds, or as a benchmark for socially responsible investment portfolios.
The FTSE4Good Australia 30 Index is representative of the largest Australian companies exercising sound social responsibility.
The top constituents on the index are BHP Billiton, Rio Tinto, Westpac, National Australia Bank and Westfield, and all constituents are capped at a maximum weight of 10 per cent of the index, to avoid over concentration in any one stock, a statement from FTSE said.
“To be included in the index, companies need to demonstrate they are working towards having good environmental management practices, climate change mitigation, countering bribery, upholding human and labour rights, and having sound supply chain labour standards,” the statement said.
The index will provide investors with a domestic benchmark to highlight those companies leading in the adoption of international standards of corporate social responsibility, FTSE head of responsible investment Will Oulton said.
The FTSE Group works with partners and clients in 77 countries worldwide, and is an independent company jointly owned by The Financial Times and the London Stock Exchange.
