Environmental, Social, and Governance (ESG) Indices

The FTSE / S-Network ESG Best Practices Indices are a suite of indices designed to provide a benchmark of companies exhibiting best corporate social responsibility practices as measured by their superior ratings in the FTSE / S-Network ESG Best Practices Ratings schema.

The ratings rank the constituent companies on Environmental, Social and Governance performance and are powered by “dynamic” S-Net ratings derived from our ESG database.

The indices represent a comprehensive benchmarking system for impact investors. Over 11,000 companies worldwide are rated in over 630 key indicators of ESG performance.

We have developed a fossil-free Australian index in collaboration with Future Super, which was used to create Australia's first fossil-free pension fund. The index is based on the LSEG Australia index.

The FTSE/Future Super Australia fossil free index has a strict exclusion policy for companies directly or indirectly involved in fossil fuels, or which provide finance to the fossil fuel sector.

The FTSE IX Global ESG Equal Weighted Index and the FTSE Global ESG High Dividend Low Volatility Equal Weighted Index are owned and administered by FTSE.

FTSE Global ESG Equal Weighted Index is constructed to track companies from the developed world that are derived from their score in ESG factors specific to their peers in a given sector and region. The index is rebalanced on a quarterly basis.

For each sector and region, a set of 3 most discriminative ESG factors are selected. These factors are the ones where there fewest companies in the sector and region have a RFESG score above 50 / 100. Only companies where all 3 such RFESG factor scores are above 50/100 are retained in the index.

The FTSE IX Global ESG High Dividend Low Volatility Equal Weighted Index further selects companies on the basis of their consensus expected dividends and includes a low volatility enhancement.

The FTSE Global Resource Protection Select Index captures the performance of stocks that tend to reduce the use of materials, energy or water, and to find more eco-efficient solutions by improving supply chain management. The index uses Resource Use Scores under ESG methodology to capture these criteria.

The FTSE Eurozone ESG Select Index captures the performance of stocks of European companies in selected countries that actively invest in and promote environmental, social and governance (ESG) values and principles in the running of their businesses. The index tracks the price return, total return and net total return with a synthetic dividend of 5%. The index is an equal weighted index a constituent cap of 10%.