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Three of the best-known companies in the CSR field will shortly become
eligible to join FTSE4Good, following a review of the index’s policy on
uranium mining.
Anglo American, which has advanced HIV and Aids prevention policies, BHP Billiton, Business in the Community’s Company of the Year in 2005, and Rio Tinto, shortlisted for the 2006 UK Sustainability Reporting Awards, were previously ineligible because of their involvement in uranium mining.
However, it will be possible for them to become constituents of the ethical index family, provided that they meet tough new criteria on, among other things, worker representation on safety committees, detailed reporting on levels of employee exposure to radiation, and environmental and social impact assessments for ‘significant’ new projects.
The criteria are likely to come into effect next month and the three members of the FTSE 100 would then be eligible to join.
Cameco, the worlds’ largest publicly traded uranium company that accounts for 20 per cent of uranium production, would still not be accepted, even if it were to comply, because the Canadian company also has nuclear power interests, and nuclear power companies remain excluded from FTSE4Good. Tobacco companies, and manufacturers of whole weapons systems or of nuclear weapons, are also not admitted, although FTSE is to end all sectoral exclusions in due course.
Anglo American, which has advanced HIV and Aids prevention policies, BHP Billiton, Business in the Community’s Company of the Year in 2005, and Rio Tinto, shortlisted for the 2006 UK Sustainability Reporting Awards, were previously ineligible because of their involvement in uranium mining.
However, it will be possible for them to become constituents of the ethical index family, provided that they meet tough new criteria on, among other things, worker representation on safety committees, detailed reporting on levels of employee exposure to radiation, and environmental and social impact assessments for ‘significant’ new projects.
The criteria are likely to come into effect next month and the three members of the FTSE 100 would then be eligible to join.
Cameco, the worlds’ largest publicly traded uranium company that accounts for 20 per cent of uranium production, would still not be accepted, even if it were to comply, because the Canadian company also has nuclear power interests, and nuclear power companies remain excluded from FTSE4Good. Tobacco companies, and manufacturers of whole weapons systems or of nuclear weapons, are also not admitted, although FTSE is to end all sectoral exclusions in due course.
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