Investors

FTSE4Good getting better

The FTSE4Good six-monthly review published on March 19 saw several new companies, and some losses, from the ethical index. 13 new companies joined the FTSE4Good UK Index, including Burberry, Express Dairies, and Cairn Energy. Meanwhile Statoil, TeliaSonera and Lafarge are new entries on the Europe index, while 3M and ConocoPhillips are new constituents on the US list. The global index features newcomers ebay, France Telecom and Singapore Airlines.

Other FTSE4Good news:

• following the review, companies will now have to meet new, more stringent environmental criteria to remain in the index. Those refusing to take steps to meet the enhanced criteria have been removed. An extended implementation timetable is available to those companies that can demonstrate that they have begun, but not yet completed, the additional steps necessary to meet the new criteria;
• from September this year, companies operating in the global resource sector will have to meet new human rights standards or risk expulsion from the series. Companies with significant involvement in high-risk countries must meet the required standards by March 2004. At this time, the FTSE4Good advisory committee plans to announce an implementation timetable for all companies, regardless of sector or geography, to have a basic human rights policy in place.

Contact Lindsay Davey, FTSE, on 020 7448 1821 (http://www.ftse.com)

Investing in relations

Investor relations professionals have a key role to play in promoting CSR, according to a new report by CSR Europe and INSEAD, published on March 24. Corporate social responsibility and the role of investor relations profiles companies such as Volkswagen and BT, who are proactively engaging potential investors in CSR issues, acting as a catalyst to galvanise interest in the business value of responsibility strategies. The report is a result of CSR Europe's programme on SRI, launched by member companies topromote dialogue and co-operation between companies and investors, and to encourage the development of SRI products. Contact Nicki Bennett, CSR Europe, on 00 32 2 541 1623 (http://www.csreurope.org)

Higgs under fire

The chairmen of HSBC, P&O, Unilever, Pilkington, BT, Liberty and Allied Domecq are criticising the Higgs proposals on boardroom behaviour (see Briefing 68), suggesting they are too prescriptive. The proposal to increase powers for non-executive directors would divide boards and undermine the power of chairmen, according to a poll of FTSE 100 chairmen published by the CBI on March 10. More than eight out of ten (82%) agreed that the chairman's role would be undermined by the proposals in the Higgs review. The extra demands placed on nonexecutives will result in a need to increase from between £1,500 and £3,000, according to a report published by Halliwell Consulting. The research also finds that the recent tightening of corporate governance is deterring individuals from becoming nonexecutives. However the government said on April 14 that it is continuing to back the proposed reforms, and does not plan any substantial changes to recommendations for revisions of the combined code of corporate governance. Contact Richard Dodds, CBI, on 020 7395 8086 (http://www.cbi.org.uk); Marcus Peaker, Halliwell, on 0207 626 3301 (http://www.halliwellconsulting.co.uk)

in brief

The chief executives of Cadbury Schweppes, AWG, Hermes and Old Mutual are backing a new inquiry into the effectiveness of current investment systems. The 21st Century investment will be co-ordinated by think-tank Tomorrow's Company. Contact Mark Goyder, Tomorrow's Company, on 020 7930 5150 (http://www.tomorrowscompany.com)

Shareholders getting active

ExxonMobil faces 23 shareholder resolutions at its annual meeting on May 28, more than twice as many as filed in the previous year. A coalition of shareholder action advocates have filed resolutions on climate change, human rights standards, and corporate governance. Social resolutions include a request to implement a nondiscrimination policy for sexual orientation, to review and implement human rights standards, and to report on the impact of AIDS on operations. 2003 is set to see a record number of resolutions submitted, likely to come to vote across US industry, according to a report published by the Investor Responsibility Research Centre and Interfaith Centre on Corporate Responsibility on February 12. As of February 1, at least 862 shareholder proposals had been filed at publicly traded US companies, compared with just 802 in all of 2002. Among the fastest-growing issue areas for resolutions include concerns about excessive chief executive compensation, global warming, separating the positions of chief executive and chairman, and sexual orientation discrimination policies. Contact Denise Fennell, ExxonMobil, on 01372 222 000 (http://www.exxonmobil.com); Stephanie Kendall, IRRC, on 00 1 703 276 3254 (http://www.irrc.com)