FTSE Russell Expands ESG Indices Globally with Launch of FTSE Blossom World Index Series

FTSE Russell Expands ESG Indices Globally with Launch of FTSE Blossom World Index Series

(IN BRIEF) FTSE Russell has unveiled the FTSE Blossom World Index Series, an extension of its successful FTSE Blossom Japan Index. Designed to meet growing investor demand, the new indices offer a global platform to assess companies based on their environmental, social, and governance (ESG) performance. The indices span the US, Europe, and APAC regions, promoting the integration of ESG factors into investment strategies.

(PRESS RELEASE) LONDON, 18-Feb-2025 — /EuropaWire/ — FTSE Russell has introduced the FTSE Blossom World Index Series, a new suite of indices that extends the company’s renowned ESG-focused indices beyond Japan to cover global markets, including the US, Europe, and APAC regions. These indices, designed for investors seeking to assess environmental, social, and governance (ESG) performance, expand upon the FTSE Blossom Japan Index Series, which has seen significant success and adoption since 2017.

The FTSE Blossom World Index Series and the FTSE Blossom World Sector Relative Index Series are designed to highlight companies that demonstrate strong ESG practices. The indices rely on FTSE Russell’s proprietary ESG Data Model, which uses a transparent methodology to evaluate a company’s ESG profile. A limited set of exclusions is applied to ensure the indices maintain integrity and reflect industry standards, while industry and sector weights are designed to align closely with traditional benchmarks such as the Russell 1000 in the US and the FTSE World Index.

The launch is in response to increasing client demand for ESG investment opportunities. By adopting an industry neutrality approach, these indices minimize bias, ensuring that sector weights in the regions of the US, Europe, and APAC mirror those of traditional market capitalisation-weighted indices. This structure allows investors to track ESG performance without significantly deviating from the performance of conventional equity indices.

Building on the success of the FTSE Blossom Japan Index, which has been adopted by Japan’s Government Pension Investment Fund (GPIF) and remains the top performer among all GPIF-mandated sustainable indices, FTSE Russell is now offering a broader range of options. Stephanie Maier, Head of Sustainable at FTSE Russell, commented, “We are excited to expand our ESG-focused indices, bringing the successful model of the FTSE Blossom Japan Index to global markets. These new indices will provide clients with more extensive coverage and help them integrate ESG factors into their investment strategies.”

The FTSE Blossom World Index Series consists of the following individual indices:

• FTSE Blossom Europe Index
• FTSE Blossom Asia Pacific ex Japan Index
• FTSE Blossom US Index
• FTSE Blossom World Composite Index

The FTSE Blossom World Sector Relative Index Series includes:

• FTSE Blossom Europe Sector Relative Index
• FTSE Blossom Asia Pacific ex Japan Sector Relative Index
• FTSE Blossom US Sector Relative Index
• FTSE Blossom World Sector Relative Composite Index

These indices are intended to enable investors to align their portfolios with ESG criteria and adapt to the growing demand for responsible investing across regions and sectors.

About FTSE Russell, an LSEG business

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $15.9 trillion is benchmarked to FTSE Russell indexes. Leading asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit FTSE Russell.

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