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13 December, 2004

Good practice in corporate responsibility generally requires companies to address both their direct and indirect, social, environmental and ethical impacts. A key indirect impact for companies with operations that have complex supply chains is the welfare and working conditions experienced by the suppliers' workers. Global investors and other stakeholders are also increasingly concerned about the potential risks posed to a company by the activities within its supply chain.

On 25th November 2004 FTSE announced the details of the new supply chain labour standards criteria for the FTSE4Good Index Series. This was another milestone in the ongoing evolution of the leading SRI index series. The criteria were announced at an event held at The Atrium, 4 Millbank, London where keynote speeches were given by Nigel Griffiths MP, Parliamentary Under-Secretary of State for Construction, Small Business and Enterprise and by Lord Brett of Lydd, Director ILO. The statement of support from Nigel Griffiths can be found here. The criteria are applied in phases and will affect the September 2005 index review. The development of the criteria has been overseen and approved by the independent FTSE4Good Policy Committee, and is based on feedback from an industry-wide consulatation exercise, conducted early in 2004.

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