Global index provider FTSE Russell today announced the launch of the FTSE4Good ASEAN 5 Index, an ESG index developed in collaboration with the Association of Southeast Asian Nations (ASEAN) Exchanges.
The newly introduced benchmark consists of companies listed on the five ASEAN exchanges from both developed and emerging markets including Singapore, Indonesia, Malaysia, the Philippines and Thailand, all of which have successfully met the standards required for FTSE4Good inclusion.
The FTSE ESG Ratings will provide objective ESG exposure and performance data based on clear and easy to apply methodologies. It works by companies being assessed on over 300 indicators encompassing environmental, social and governance factors in order to achieve an overall cumulative score, and will allow investors to understand a company’s ESG practices according to multiple aspects.
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Today’s announcement illustrates FTSE Russell’s important role in the development of sophisticated ESG benchmarking tools. Since it first launched the FTSE4Good Index Series in 2001, there has been a significant increase in the number of institutional investors that have chosen to integrate ESG considerations into their portfolios.
Deputy CEO of FTSE Russell, Donald Keith, commented: “ASEAN markets are attracting significant investor interest and the new product provides an important tool for portfolio construction and benchmarking. Institutional investors around the world are increasing their focus on integrating environmental social and governance data into investment approaches.”
FTSE Russell and ASEAN’s new collaboration builds on the existing relationship calculating the FTSE ASEAN Index Series, which is comprised of companies listed on the seven exchanges that make up the ASEAN partnership.