FTSE4Good leaves coal and oil firms and G4S on ethical investment list despite environmental and labour rights concerns; incl. comments
Author: Jasper Jolly, The Guardian, Published on: 23 December 2019
Note: Business & Human Rights Resource Centre previously asked G4S for a response to allegations of labour abuse in Qatar and UAE, available here.
"FTSE leaves coal and oil firms and G4S on ethical investment list", 22 Dec 2019
The FTSE4Good indices, run by the London Stock Exchange Group’s FTSE Russell subsidiary, are marketed to investors interested in environmental, social and governance (ESG) issues.
[T]he LSE has refused to remove big polluting companies or the security company G4S despite allegations of systematic labour abuses across the world...
A spokeswoman for FTSE Russell declined to comment on the inclusion of new fossil fuel companies. On G4S, the spokeswoman said: “FTSE Russell and the FTSE Russell ESG advisory committee considered G4S against the controversy framework at this review, which assesses both the severity/scale of an incident as well as how effectively the company has responded.
“Based on this assessment it was decided not to suspend G4S at this review. FTSE Russell will continue to closely monitor developments in relation to G4S.”
The London Stock Exchange Group’s head of sustainable business, David Harris, has previously told the Guardian he would not exclude the entire oil and gas sector from FTSE4Good indices, saying divestment from those companies would mean forfeiting the ability to bring shareholder pressure to bear.