New criteria open way for nuclear firmsOctober 2010
The FTSE4Good index will no longer automatically exclude nuclear power companies from its socially responsible investment indexes after announcing new criteria for businesses in the industry.
The nuclear power criteria, unveiled with the index’s bi-annual review last month, outline a number of requirements on nuclear safety and waste covering policy, management, disclosure and performance.
Companies must give evidence of a ‘clear and comprehensive public description’ on policy and management systems involving unplanned shutdowns, safety assessments, decommissioning and operational waste if they are to be eligible for inclusion.
FTSE has also set data requirements on which companies must report publicly, including background radiation exposure of employees and local communities; type and volume of operational waste per year; type and tonnes or volume of spent fuel per year; and quantifiable information on safety incidents.
Any company with an incident whose impact is greater than ‘level two’ as deemed by the International Atomic Energy Authority will be ineligible for FTSE4Good for three years.
Nuclear companies had previously been excluded without exception, but after consulting widely on the subject in 2005, FTSE began working on the development of criteria in 2009.
Just one nuclear energy company, the Spanish energy group Iberdrola, has been added against the new requirements as part of the recent review.
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