Introduction to SRI Index
Welcome to the JSE SRI Index The JSE’s Socially Responsible Investment (SRI) Index was launched in May 2004 in response to the burgeoning debate around sustainability globally and particularly in the South African context.
The SRI Index was a pioneering initiative – the first of its kind in an emerging market, and the first to be launched by an exchange, and has been a driver for increased attention to responsible investment into emerging markets like South Africa.
The Second King Report on Corporate Governance urges companies to embrace the triple bottom line as a method of doing business. At the same time, any attempt to develop triple bottom line practices needs to be balanced with the need for companies to make a return for their shareholders.
Although responsible business activity was already bedded down for many SA companies, owing to the complex nature of the country’s history, and the fact that the country had been a leader internationally in establishing a progressive corporate governance code (the King Code), companies still needed guidance on what their practices needed to encompass and investors were looking for a way to invest in companies that had good practices in relation to the triple bottom line.
As a means of helping to focus the debate, the JSE has developed Criteria to measure the triple bottom line performance of companies in the FTSE/JSE All Share Index, with the aim of compiling an Index comprising those companies that pass the Criteria requirements. The SRI Index further offers an aspirational sustainability benchmark, recognising those listed companies incorporating sustainability principles into their everyday business practices and to serve as a tool for investors to assess companies on a broader base.
The JSE launched the first Socially Responsible Investment (“SRI”) Index in May 2004 recognising the strides listed companies are making in this regard. Reviews take place annually during the second half of each year, with results usually announced at the end of November each year.