Content area
Full Text
Moves up the Agenda
Owing to the launch of the third King Report on Corporate Governance in September 2009 and the alignment of JSE Listing Requirements with this report, the past year has seen a major increase in environmental, social and governance (ESG) awareness. The JSE Listing Requirements now call for integrated reporting for financial years starting on or after 1 March 2010. The focus on ESG issues impacting corporate value is bolstered by the release of the draft Code on Responsible Investment for institutional investors in South Africa (CRISA). It is, therefore, no surprise that the increased focus on ESG issues is reflected in the findings of the 2010 SRI Index review, released on 1 December.
Watershed year
A sustainability index informs potential investors about the sustainability policies and practices of listed companies and, in doing so, it encourages such companies to intensify their management of material ESG risks and opportunities. This has also been a watershed year for the JSE SRI Index. Apart from the evolving alignment of the index criteria with King III requirement; building relations with asset managers looking to put funds behd the index, and deepening our relationship with the Government Employees Pension Fund, we have also introduced climate change criteria and raised the best performer threshold. There is now added impetus for companies to follow best practice in ESG and for institutions to invest in SRI Index constituents.
Launched in 2004, the JSE SRI Index acts as a tool for investors to select certified good corporate citizens, and as a benchmark for companies looking to improve corporate responsibility. As a...