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.
