The FTSE Group, jointly owned by The Financial Times and the London Stock Exchange, has developed the ratings by assessing companies according to the risks they face in three areas: environmental management, human and labor rights and supply chain labor standards, corporate governance and countering bribery.  The ratings provide a company score from 1 – 100 in how well companies address these risks.  This rating system makes it possible to spot companies that are exposed to for instance to, human rights risks, corruption risks, but have no policies in place to address those.

Source:  Financial Times