FTSE Russell launch ESG risk adjusted indices

FTSE Russell has launched the FTSE UK ESG Risk-Adjusted Index Series.

The series applies product and conduct exclusions and reduces the carbon emissions and reserves exposure of each index (vs the underlying benchmark) and tilts the weights of the universe towards companies with better ESG characteristics. The new index series includes ESG adjusted variants of the FTSE 100, FTSE 250, FTSE 350 and FTSE All-Share indices.

Index exclusions focus on controversial weapons, thermal coal production, energy generation based on thermal coal, Arctic oil & gas exploration, oil sands and shale energy extraction and production, tobacco production and retail, and controversial conduct.

Arne Staal, CEO of FTSE Russell, says, “We have created the FTSE UK ESG Risk-Adjusted Index Series to further increase the options for clients incorporating ESG and Climate objectives into UK equity portfolios. This launch, while continuing to expand our multi-asset ESG and climate index range, is also our first ESG adjusted version of the FTSE 100, and something our customers have been asking for.”