FTSE4Good Index Series

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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.

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