Published On: Mon, Oct 12th, 2015

JSE launches new investment index series

JSEJOHANNESBURG, (CAJ News) – THE Johannesburg Stock Exchange (JSE) has launched its new index series reflecting the bourse’s commitment to advancing corporate sustainability practices.

The FTSE/JSE Responsible Investment Index Series, launched in partnership with FTSE Russell, series replaces the JSE’s SRI Index.

The FTSE/JSE Responsible Investment Index Series offers an objective methodology that further promotes the aims of stimulating greater transparency by corporates on environmental, social and governance (ESG) considerations, and enabling investors to integrate these considerations into investment and stewardship.

As part of the evolution of the JSE’s work through the SRI Index, the JSE has adopted the FTSE ESG Ratings methodology.

The companies eligible for the FTSE/JSE Responsible Investment Indices are those that are constituents of the FTSE/JSE Shareholder Weighted All Share Index and are also listed in the FTSE All World Index. Inclusion in the FTSE/JSE Responsible Investment Indices is determined in accordance with the FTSE/JSE Responsible Investment Index Series Ground Rules.

Corli Le Roux, Head of Sustainability at the JSE, said the launch indicated a firm commitment by both the JSE and FTSE Russell to advance responsible investment and built on the JSE’s decade-long experience in helping companies integrate the principles of the triple bottom line and good corporate governance into their business practices.

Since launching the JSE Socially Responsible Investment Index and becoming the first emerging market and first stock exchange to form an SRI Index in 2004, the JSE has continued to assess developments locally and  internationally to ensure that the evolution of its approach to sustainability met the needs of its clients and the dynamics of the sustainability imperative.

Following ongoing reviews of the SRI Index aims and strategy, the exchange decided to pursue an ESG collaboration with the FTSE Group, who already calculates the FTSE/JSE Africa Index Series and who is a world leader in the creation and management of index solutions.

“Collaborating with FTSE Russell on expanding our efforts in sustainability offers a number of synergies and benefits for both organisations and our clients, and was thus a logical opportunity for us to pursue,” said Le Roux.

With the new FTSE/JSE Responsible Investment Index Series, JSE listed companies have the opportunity to be assessed and rated alongside over 3 000 companies from across the globe against best practice ESG practices
and performance metrics.

Founded in 1887, The JSE, which has 472 listings is the largest exchange in the African continent and ranked the 19th in the world by market capitalization.

CAJ News

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