FTSE Russell adds emerging market ESG indexes


FTSE Russell has added two emerging market index funds to its ESG series.

The FTSE4Good Emerging Markets Index and FTSE4Good Emerging Latin America Index mean FTSE Russell now has 15 indexes in its ESG series.

FTSE Russell launched FTSE4Good in 2001 catering to three ESG themes.

It has now expanded to 14 themes, which include anti-corruption, biodiversity, climate change, corporate governance, customer responsibility, health and safety, human sights and community, labour standards, pollution and resources, risk management, supply chain (environment and social), tax transparency and water use.

Chief executive Mark Makepeace says there was scepticism around ESG when the FTSE4Good indexes launched 15 years ago.

“Since then, the world and the investment landscape has changed beyond recognition and sustainable investing, climate risk, the transition to a low carbon economy and ESG integration are now a core focus for our clients across asset owners, asset managers, consultants and banks.”

The firm is also launching ESG Ratings, which provides underlying ESG data on 4,100 companies across 300 indicators.

Over 1,500 signatories have signed up to the UN Principles for Responsible Investment representing $60trn in assets under management.