FTSE 100 - 2024
Introducing Root's FTSE 100 Series
Author
Freddie Stretch
22 Oct 2024
At Root, we are dedicated to supporting investor stewardship teams and corporate sustainability researchers with detailed, data-driven insights. Our mission is to inform the research and engagement activities of these teams by providing enriched intelligence on the ESG (Environmental, Social, and Governance) strategies of 1,000s of companies. Using custom-built frameworks that sit atop advanced language models (LLMs), we extract, structure, and analyse data on corporate disclosures, offering comprehensive views on reporting gaps, climate strategy, and opportunities for improvement.
New FTSE 100 Market Analysis Series!
In a recent analysis, we filtered our data extraction framework to the FTSE 100, with a focus on corporate disclosures in four critical areas:
Greenhouse Gas (GHG) Disclosures: Understanding emissions reduction strategies and progress toward targets.
Nature Disclosures: Highlighting how companies are addressing biodiversity and ecosystem impacts.
Climate Governance & Risk: Exploring how firms disclose on governance frameworks, as well as physical and transition risks under the EU taxonomy.
Reporting Alignment: Examining which sustainability standards and frameworks (such as CDP, CSRD, and TCFD) are being used by FTSE 100 companies.
Over the next months we will be releasing a series of market insights from this analysis, with a dive deep into this dataset focussed on the FTSE 100, revealing key insights on how well these companies are performing against CSRD requirements, which businesses are leading on biodiversity disclosures, and the standards that are shaping the corporate sustainability landscape. We’ll also touch on emerging trends, such as third-party assurance on sustainability data, double materiality assessments and the progress companies are making on their GHG targets.
One of the key strengths of our approach is its alignment with leading disclosure frameworks like the Transition Pathway Initiative (TPI) and the Corporate Sustainability Reporting Directive (CSRD). This enables stakeholders to integrate our findings seamlessly into stewardship activities, helping investors engage more effectively with companies, and assess both the quality and completeness of their sustainability reporting.
Our upcoming series will not only examine environmental disclosures but we will also look to cover key Social & Governance (S&G) discloses being made by the FTSE 100 and where gaps still lie, offering a holistic view of corporate ESG performance.
Piloting New Offerings
Looking ahead, we will be providing access to customers of this type of information on 1,000s of global companies, and piloting access to this data to customers, so get in touch to find out more. Beyond this we have created a bunch of new intelligence frameworks to support Stewardship teams such as our new resolution intelligence tool and further analysis on voting behaviour of institutional investors.
Stay tuned as we uncover the stories behind the data and highlight where companies are excelling—and where they need to do more!
Disclaimer: This content is generated using Generative AI and Large Language Models (LLMs), which may introduce inaccuracies. Our FTSE 100 series analysis focuses solely on the annual reports of these companies. It is important to note that some companies may publish additional information on their ESG disclosures and strategies in other reports not covered in this analysis. Therefore, this analysis should not be considered a comprehensive or definitive source of information.