GLOBAL - Failure to meet criteria relating to issues such as climate change has resulted in 15 companies being deleted from the FTSE4Good Index.
David Harris, manager for responsible investment at FTSE, said the index inclusion criteria changed over time, which demanded continued improvement in corporate responsibility practices in order to gain or maintain inclusion.
Last year, FTSE4Good policy committee announced new criteria relating to climate change, and companies had a year to implement the first stage. Harris said it was now looking at criteria relating to health and safety.
He said: "Corporate responsibility is continually evolving and there is increasing expectation on companies to be improving on both their environmental and social performance."
Harris added a number of pension funds used the index in their investing, including PGGM, which manages the assets of Pensioenfonds Zorg en Welzijn.
He said: "PGGM runs significant assets against the FTSE4Good, so they will making changes to reflect this review."
Harris said the first deadline on climate change had just passed, but there would be more in September and in March, at which time the companies in the index would be expected to meet further requirements.
The companies that were removed were Burlington Northern Santa Fe Corporation, Level 3 Communications, The Swatch Group, Western Union for failing to meet environmental criteria; and Asahi Glass and Toshiba TEC for not meeting human rights criteria.
In addition, Tokyo Corporation was removed for not meeting supply chain labour standards criteria; and Celesio, Hitachi Metals, Kabayashi Pharmaceutical, Tokuyama Corporation for failing to meet countering bribery criteria.
Asahi Glass, Cairn Energy, Eastman Energy, HedielbergCement, Hitachi Metals, Lanxess and Tokuyama Corporation did not meet climate change criteria.
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