Volkswagen has been suspended from the London Stock Exchange’s FTSE4Good Index Series after cheating emissions regulations by installing defeat devices in millions of its cars.
The FTSE4Good Index Series is designed to measure the performance of companies with strong environmental, social and governance (ESG) practices.
The FTSE Russell’s independent ESG advisory committee decided to suspend Volkswagen after using FTSE’s “controversy monitor” to assess VW. The controversy monitor considers the significance the controversy, how the company responded and the extent to which it impacts wider industry.
“The company is deemed to have misled government agencies and consumers over vehicle emissions through the application of software designed to circumvent test requirements,” according to a statement by the London Stock Exchange.
Companies suspended from the FTSE4Good Index Series are not eligible for re-inclusion for a minimum of two years.
VW’s suspension is part of the ESG ratings semi-annual review, which saw 40 new companies being added to the FTSE4Good Global Index, while 32 companies are being removed. Anheuser-Busch InBev, BMW, General Mills and Hershey Company are among the new additions; Sherwin-Williams, Time Warner Cable and VeriSign are among the companies being removed.
Photo Credit: VW emissions scandal via SGM / Shutterstock.com
