FTSE Russell has launched an index that tracks companies listed in Singapore, Indonesia, Malaysia, Philippines and Thailand that score high on environmental, social and governance (ESG) measures.
The FTSE4Good ASEAN 5 Index was launched in partnership with the Association of Southeast Asian Nations (ASEAN) Exchanges, a grouping representing the seven exchanges in the ASEAN bloc. Of the seven bourses, the index covers five, excluding Vietnam's two exchanges.
FTSE Russell says the index methodology assesses companies based on 300 indicators of their ESG performance, producing a cumulative score. The index provider launched its first FTSE4Good index in 2001.
"ASEAN markets are attracting significant investor interest and the new product provides an important tool for portfolio construction and benchmarking," said Donald Keith, deputy chief executive of FTSE Russell.
Datuk Seri Tajuddin Atan, chief executive of Bursa Malaysia, said the index could herald the beginning of a new Asian asset class based on ESG factors.
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