SOCIALLY RESPONSIBLE INVESTMENT (SRI)
In respect of SRI our aim has been increased level of disclosure and we feel we have achieved this from an increasing number of FTSE 350 companies in recent years.
Legal & General Investment Management Ethical Funds
LGIM offers three ethically screened funds – the Ethical Global Equity Index Fund and the Ethical UK Equity Index Fund - are offered to our Corporate Pensions clients. Both Funds predominantly invest in securities which form part of the FTSE4Good indices.
In addition we offer the Legal & General Ethical Trust, a unit trust, that reflects companies whose business conforms to a range of ethical and environmental guidelines from the FTSE 350 index (excluding investment trusts) based on data provided by EIRIS, the Ethical Investment Research Service.
The Index
In July 2001, FTSE International launched the FTSE4Good Index series for socially responsible investment. The series was designed with the support of UNICEF, the United Nations Children’s Fund, and use of data provided by EIRIS, the Ethical Investment Research Service. The FTSE4Good Advisory Committee is responsible for the management of the FTSE4Good selection criteria and for undertaking the review of all FTSE4Good Indices. All of the FTSE licensing revenue goes to UNICEF.
Companies seeking inclusion in the universe are expected to conform to a best practice framework, which cover policies and commitments, management systems and performance and reporting.
The FTSE4Good Global Equity and FTSE4Good UK Equity indices completely excludes companies that are significantly involved in tobacco production, the manufacture of whole weapons systems or strategic parts or services for nuclear weapons and those who operate nuclear power stations or mine/process uranium. When deciding whether to exclude companies outside these sectors, FTSE4Good classifies companies based on their impact on the environment. Criteria for inclusion are more stringent for companies having a high impact on the environment.
