Aussie FTSE4Good launches: DJ and FTSE RI indices reviews

Dow Jones and FTSE unveil SRI index reviews.

FTSE has launched the FTSE4Good Australia 30 Index of the largest Australian companies exercising sound social responsibility, according to its criteria. The top five companies in the index in order are BHP Billiton, Rio Tinto, Westpac, National Australia Bank and Westfield Group. To be included in the new index, Australian companies must demonstrate they are working towards good environmental management practices, climate change mitigation, countering bribery, upholding human and labour rights and having sound supply chain labour standards. Responsible Investor recently revealed that FTSE was also planning to launch a corporate bond index based upon the companies that make up the FTSE4Good SRI benchmark. Both FTSE and Dow Jones, the two biggest SRI benchmark sellers, have also announced major constituent changes of companies falling in and out of their sustainability benchmarks because of improvements or regressions in their SRI practices. In its 2008 annual review for the Dow Jones Sustainability Indices, which are researched by Zurich-based SAM Indices, the index provider announced that 33 companies would join the Dow Jones SustainabilityWorld Index, with 25 firms deleted, bringing the total number in the index to 320.
The number of companies in the pan-European Dow Jones STOXX Sustainability Index (DJSI STOXX) increased to 162 from 153 after 30 companies were added and 21 deleted. Notable additions included Coca Cola, EADS and Rio Tinto, while Aviva, Renault, Royal Dutch Shell and Vodafone were all excluded. The number of companies in the Dow Jones Sustainability North America Index increased to 125 from 116 with 18 added and 9 deleted. All changes will be made effective with the opening of equity markets on September 22. Link to DJSI exclusions and additions
Twelve companies were removed and 36 added in the bi-annual September review of the FTSE4Good global index series. Companies entering the index include Toyota Motor Corporation in Japan, Westfield Corporation in Australia, First Solar and Capital One Financial Corporation in the US and Banco Espanol de Credito of Spain. Changes to the index took place after the close of markets on September 19. Link to FTSE4Good review.