CORPORATEA Minimum Set of Exclusions for Sustainable Investment IndicesUpdate and Implementation Timelines
06 February 2023
Following FTSE Russell’s market consultation on the application of a minimum set of exclusions to FTSE
Russell’s sustainable investment (SI) indices, FTSE Russell has considered the responses from market
participants and announces an update to the
Guide_to_the_Construction_and_Maintenance_of_FTSE_Exclusion_Lists.pdf to include a set of minimum
exclusions. These changes to the index methodology reflect the outcome of the consultation and wereapproved by the FTSE Russell Index Governance Board. Implementation will occur according to thetimelines detailed below.
Consultation outcome
FTSE Russell consulted index users on whether a minimum set of exclusions should apply to FTSE
Russell’s standard SI indices and received support for the proposal. FTSE Russell defines exclusions as
business activities which may lead to a company being removed from an index. (Please note theseexclusions do not apply to sovereign bond universes).
The Guide_to_the_Construction_and_Maintenance_of_FTSE_Exclusion_Lists.pdf has been updated toinclude the following minimum exclusions:
Minimum Exclusions Definition
ThresholdProduction ·Companies engaged in the production Greater than 0% ofTobacco
revenuesof tobacco and/or tobacco products
Extraction ·Companies that extract thermal coal Revenues greater
Thermal Coal
than or equal to 50%
Production ·Companies that produce antiControversial
Greater than 0% ofWeapons
revenues
personnel mines, cluster munitions, and/or
biological and chemical weapons
Controversial Conduct Violations of the United Nations Global Compact
All companies
Principles ·The principles are classified into four
deemed noncompliant
categories: Human Rights, Labour, Environment,and Anti-corruption
This minimum set of exclusions references the EU Benchmark Regulation exclusions for EU Climate
Benchmarks and the activities which FTSE Russell’s index users often target for removal/exclusion.
Additional exclusions can be applied above this minimum standard to fulfil additional investment
objectives, mandates, or restrictions.
Scope
There will be no change to the following FTSE Russell SI indices as the minimum set of exclusions isalready reflected in the construction of these indices:
FTSE Fixed Income Global Choice Index Series
FTSE Fixed Income ex Fossil Fuel Enhanced Index Series
FTSE Canada Ex Fossil Fuels Bond Index Series
FTSE Global Choice Index Series
Russell US ESG Index Series
Russell Green America Index Series
FTSE EU Climate Benchmark Index Series
FTSE MPF ESG Low Carbon Select Index Series

CORPORATEFTSE Bursa Malaysia ESG Low Carbon Select Index Series
Implementation timetable
The following standard FTSE SI indices will be aligned to the minimum set of exclusions at the specified
index review:
FTSE SI Index series

FTSE/JSE Responsible Investment Index Series
FTSE Women on Boards Leadership Index Series
FTSE Green Revenues Index Series
FTSE EPRA Nareit Green Index Series
FTSE Divest-Invest Index Series
FTSE ex Fossil Fuels Index Series
FTSE ESG Index Series
FTSE Global Climate Index Series
FTSE TPI Climate Transition Index Series
FTSE Smart Sustainability Index Series
FTSE Global Choice ex Controversies indices
FTSE JPX Net Zero Japan Index Series
FTSE4Good Index Series
FTSE Environmental Markets Index SeriesIndex review when theMinimum Exclusions will beimplemented (2023)
June
JuneJuneSeptember
September
September
September
September
September
September
December
December
December
December

Ground rules for the indices mentioned above will be updated and published to reference the guide toexclusions.

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