Criteria

The Criteria are determined by the JSE in consultation with the 2009 Advisory Committee, an independent panel of experts from across the spectrum, which includes investment managers, listed companies, sustainability experts, academics and civil society.

The Criteria that the Index has been using since the 2007 review, were developed in conjunction with EIRIS and FTSE4Good, with advisory services being provided by KPMG Sustainability Services.

Companies are assessed against Criteria across the triple bottom line (environment, society and economy) as well as governance (forming the foundation of the triple bottom line pillars). Within each area of measurement, companies are assessed based on policy, management / performance and reporting.

The criteria retains the triple bottom line philosophy, but the indicators are structured along ESG lines (Environment, Society, and Governance), in keeping with the framework promoted by the UN Principles for Responsible Investment.

Within the Environmental criteria, companies are classified as high, medium or low impact based on their activities. The Society and Governance criteria follow a thematic approach to reflect global standards while accommodating issues peculiar to South Africa such as Black Economic Empowerment (BEE) and HIV/AIDS. They also incorporate economic factors and related sustainability concerns reflective of the emerging market.

In order to make it onto the Index, companies have to meet the minimum core and desirable indicators as set out in the Criteria.

In keeping with the Index’s developmental approach, more detailed criteria will be introduced in due course for areas such as climate change, bribery and corruption, human rights and supply chain management.

Download the Criteria documents: