On Friday 21 November 2014, Provident Financial received notification that it was to continue to be a constituent of the FTSE4Good Index series. This was confirmed by the FTSE4Good Advisory Committee at its September 2014 review. As a result of this review, Provident Financial achieved an overall environmental, social and governance (ESG) rating score of 99, just one point away from the maximum possible score.
In addition, the company was notified that it continues to be represented on three corporate responsibility (CR) indices that are maintained by Euronext Vigeo. This followed a review undertaken by Vigeo of Provident Financial’s policies, processes and performance in the areas of business behaviour, human resources, the environment, corporate governance, customer and supplier relations, human rights, and community involvement.
As a result of the review, Provident Financial continues to be included within the Vigeo World 120 index (the 120 most advanced sustainability performing companies in the European, North American and Asia Pacific regions), the Vigeo Europe 120 index (which includes the 120 most advanced sustainability performing European companies) and the Vigeo United Kingdom 20 index (which includes the 20 most advanced UK companies based on their sustainability performance).
The information that is held on these indices will be used by institutional investors, and pension fund and asset managers as a reference guide for incorporating ESG factors into investment decision-making and stewardship.
Rob Lawson, Corporate Responsibility Manager at Provident Financial, commented:
“Provident Financial’s continued membership of these indices is a source of great pride for the company and its employees. The consistently high scores we have achieved on them are an acknowledgment our commitment to operate our business in a responsible and sustainable manner”.
About the FTSE4Good Index Series
The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong ESG practices. The transparent management and clearly-defined ESG criteria used in the FTSE4Good mean that the indices are a suitable tool for market participants when creating or assessing responsible investment products. FTSE4Good indices can be used in four main ways: Financial products - as tools in the creation of index-tracking investments, financial instruments or fund products focused on responsible investment; research - to identify environmentally and socially responsible companies; reference - as a transparent and evolving global ESG standard against which companies can assess their progress and achievement; and benchmarking - as a benchmark index to track the performance of responsible investment portfolios.
About Euronext Vigeo indices
The Euronext Vigeo indices are composed of the highest-ranking listed companies as evaluated by the Vigeo agency in terms of their performance in corporate responsibility. Euronext is the primary exchange in the Euro zone with over 1,300 issuers worth €2.6 trillion in market capitalization and operates regulated and transparent equity and derivatives markets. Vigeo is a leading European expert in the assessment of companies and organisations with regard to their practices and performance on ESG issues.