Source: BusinessGreen

Jewellery retailer Tiffany & Co will next week join 20 new companies in FTSE’s flagship ethical indices, FTSE4Good, while the Dr Pepper and Snapple Group will be among seven firms receiving the boot.

The FTSE4Good Policy Committee last week conducted its half year review, deciding that 21 new businesses now meet the strict environmental social governance (ESG) criteria to join the ethical indices.

FTSE hailed US-based Tiffany as “a leader in developing approaches and standards in responsible jewellery sourcing”. The USA contributed 11 new additions to the index, with three from Australia, two from Japan, one from Switzerland and one from Canada.

Three UK companies will join the ranking – construction firms Galliford Try and Taylor Wimpey, as well as food producer Tate & Lyle.

Meanwhile, seven companies have been deleted from the index, four of which failed to meet the FTSE4Good environmental management criteria. They include Dr Pepper Snapple, which produces a range of drinks in North America, and delivery company Nippon Express.

UK-based car retailer Pendragon and insurance giant Ageas will also be deleted from the list for failing to meet environmental criteria.

The FTSE Group also announced today that it will more than double the number of companies required to meet supply chain labour standards criteria.

Supply chain labour standards criteria previously applied to the 164 FTSE companies producing clothing, accessories, footwear, toys and food products.

However, from the end of this month, the criteria will be extended to apply to producers of consumer and office electronics, such as televisions, computers, music systems, mobiles, printers and photocopiers; home products such as furniture, towels and bed linen; and other consumer products such as jewellery and watches.

“Since we launched FTSE4Good over a decade ago our focus has always been the continual evolution of standards and encouraging improvements in company environmental, social and governance practices,” said Mark Makepeace, FTSE chief executive.

“At this review we continue this process by raising the hurdle on supply chain labour standards.”