FTSE4Good Index Series

AAA

DEFINITION of 'FTSE4Good Index Series'

Market capitalization weighted indexes maintained by the FTSE group to measure the performance of companies that meet globally recognized corporate responsibility standards. The FTSE4Good Index Series is designed to provide exposure to companies that are managing their social and environmental risks, while also helping ethical investors avoid companies that aren't.

INVESTOPEDIA EXPLAINS 'FTSE4Good Index Series'

To be included in the FTSE4Good Indexes companies must: support human rights, have good relationships with the various stakeholders, be making progress to become environmentally sustainable, ensure good labor standards not only for their own company but for companies that supply them as well, and fight bribery and corruption.

The following companies are excluded automatically: tobacco companies, manufacturers of nuclear weapon systems, manufacturers of whole weapons systems, companies involved in producing electricity from nuclear power, and businesses involved in the mining or processing of uranium.

RELATED TERMS
  1. Footsie

    A slang term for the Financial Times Actuaries 100 index (FTSE ...
  2. Ethical Investing

    Using one's ethical principles as the main filter for securities ...
  3. Index

    A statistical measure of change in an economy or a securities ...
  4. Capitalization-Weighted Index

    A type of market index whose individual components are weighted ...
  5. FTSE

    A company that specializes in index calculation. Although not ...
  6. Green collar

    A worker who is employed in an industry in the environmental ...
RELATED FAQS
  1. What is socially responsible investing?

    In the financial world, where profit and return are often the priorities of the average investor, the vehicles we use to ... Read Full Answer >>
Related Articles
  1. Investing Basics

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  2. Mutual Funds & ETFs

    Socially (Ir)responsible Mutual Funds

    Not concerned about being an ethical investor? Maybe "sinful stocks" have a place in your portfolio.
  3. Mutual Funds & ETFs

    Socially Responsible Mutual Funds

    It is possible to avoid unethical investments and still profit from mutual funds. Find out how!
  4. Trading Strategies

    How Social Impact Investing Works

    Social impact investing is changing the way investors and the government effect change, delivering quantifiable results and financial returns.
  5. Investing

    What are Business Ethics?

    Business ethics is the system of laws and guidelines by which business professionals and corporations operate in a fair, legal and moral fashion. It’s a broad topic, covering everything from ...
  6. Fundamental Analysis

    Ethical Investing Tutorial

    Learn everything there is to know about ethical investing.
  7. Investing Basics

    The Ethics Of Investing

    The proper application of ethics to the world of investments is a highly subjective topic.
  8. Fundamental Analysis

    The Green Marketing Machine

    Don't let corporations greenwash their dirty laundry. Learn how to spot a phony.
  9. Home & Auto

    5 Investment Risks Created By Global Warming

    Climate-change deniers and believers alike would be wise to prepare for the worst.
  10. Insurance

    Green Investors Get Heard

    Find out how to make your portfolio and the companies in it greener.

You May Also Like

Hot Definitions
  1. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  2. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  3. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  4. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  5. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  6. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
Trading Center