The SME lending platform was admitted for inclusion in the FTSE4Good Index Series, particularly for its high score for corporate governance.
Marketplace lender Funding Circle has been included in the FTSE4Good Index, which filters listed firms that its says demonstrate the “highest standards of corporate governance and sustainability”.
ESG (Environmental, Sustainability and Governance) is a huge trend within the world of investing. More and more investors are demanding ‘ethical’ portfolios that screen out, for example, oil companies.
The FTSE4Good Index Series, which is managed by the global index and data provider FTSE Russell, was set up in 2001 to provide investors with a transparent benchmark to measure good ESG practices. The indexes are used by investors to create and assess responsible investment funds and other products.
Funding Circle says it ranked in the top third of all technology businesses in terms of overall ESG standards, scoring especially high in areas of corporate governance.
Samir Desai, co-founder and CEO of Funding Circle, said: “We’re pleased to have been selected for inclusion in the FTSE4Good Index Series. A core part of our mission is to give investors and borrowers a better deal, and doing business responsibly is at the heart of everything we do.”