Several retail firms have made their way into the FTSE4Good Index series of most socially and environmentally responsible entities. Macy’s, Inc. (NYSE:M), Best Buy Co Inc (NYSE:BBY), and Time Warner Cable Inc (NYSE:TWC) are among the leading companies.
Macy’s, Inc. (NYSE:M) is a chain of departmental stores that sells an assortment of fashion products for both men and women. Best Buy Co Inc (NYSE:BBY) sells electronics such as computers, cellphones, video games, and several other tech products. On the other hand, Time Warner Cable Inc (NYSE:TWC) is a cable telecommunications company that operates in many US States.
FTSE rates companies based on different methodologies to make it easier for investors to identify companies whose policies are more sustainable. The rating considers companies practices based on environmental protection and social responsibility.
The three companies, Macy’s, Inc. (NYSE:M), Best Buy Co Inc (NYSE:BBY), and Time Warner Cable Inc (NYSE:TWC), have made a statement in their practices, making them good investor targets. The rating also enhances their reputation amongst consumers.
Retail companies are among the biggest employers and are closer to the consumers than bigger companies that sell their products in bulk. As such, their involvement in applying best environmental, governance, and social practices have more noticeable impact.
“The biggest driver for going green is a return on capital as well as ethics. For department stores, usually score well on criteria like energy consumption and risk management,”,….,”I wouldn’t be surprised if this were down to a bigger push on energy lighting, switching off lights, waste treatment and minimizing use of materials such as paper and plastic, anything which also has a cost focus.”
said Retail analyst at Neev Capital, Rahul Sharma.
FTSE revealed that most of new companies joining the list came from the US and UK with 11 and 5 respectively. Macy’s, Inc. (NYSE:M), Best Buy Co Inc (NYSE:BBY), and Time Warner Cable Inc (NYSE:TWC) are among the 11 new entries from the US whose performance in their individual markets will be keenly monitored by investors.
This article has been written by Victor Ochieng.