The FTSE4Good Index Series is a family of equity indices created by FTSE Russell, part of London Stock Exchange Group, to measure the performance of companies that demonstrate strong environmental, social, and governance (ESG) practices. Launched in 2001, the series applies transparent, rules-based criteria and independent research to identify issuers with robust management of material sustainability risks and opportunities.
Constituent selection draws on FTSE Russell’s ESG Ratings and ongoing due diligence, with criteria spanning environmental management and climate strategy, resource use and pollution, human and labor rights, supply chain standards, corporate governance, ethics, and anti-corruption. Membership is reviewed on a regular schedule, and companies may be added or removed as their practices evolve. The indices are used by asset owners, asset managers, and other stakeholders for benchmarking, portfolio construction, and the creation of index-linked products. In the chemical sector and other heavy industries, FTSE4Good is widely referenced as an external yardstick for ESG performance.