FTSE Russell has launched two indices that measure companies based on the strength of their gender equality at the board level and wider social impact.
FTSE Russell has launched the FTSE All-Share Women on Boards Leadership Index and its Russell 1000 Women on Boards Leadership Index, according to a statement.
These indices are the first two in a series that aims to provide investors with exposure to companies that demonstrate leadership in diversity.
“This is achieved by adopting a factor-based approach, tilting stocks to overweight or underweight depending on their gender diversity at board level and social impact score,” the statement said.
The constituent weightings of the FTSE All-Share Women on Boards Leadership Index are adjusted according to the ratio of female board members against the total number of board members, while the Russell 1000 Women on Boards Leadership Index is based on the ‘Social Pillar’ score calculated by the FTSE Russell ESG ratings model.
FTSE Russell developed the series in response to growing investors’ demand for ESG considerations to be integrated into passive investments, according to the statement.
FTSE Russell chief executive Mark Makepeace said the series demonstrated the global benchmark provider’s commitment to promoting “strong stewardship practices and market standards”.
“The initial indexes are based on the FTSE UK All-Share and Russell 1000, incorporating a universe of almost 900 companies and can be used by market participants to increase their exposure towards companies demonstrating leadership in this space,” Mr Makepeace said.
“By using a factor-based methodology, we can adopt a positive approach highlighting leadership, promoting awareness and improving inclusive environments at all levels.”
A boutique fund manager has slashed its employees’ pay after assessing its operation amid the COVID-19 pandemic, with its chief’s salary...
Almost two-thirds of consumers have said that the COVID-19 crisis has already directly impacted their financial position, according to a new...
Global trade has fallen more than 4 per cent this quarter and is set to extend that loss as the coronavirus ravages supply chains. ...