What is the Socially Responsible Investment Index?
The Socially Responsible Investment(SRI) Index measures companies’ policies, performance and reporting in relation to the three pillars of the triple bottom line (environmental, economic and social sustainability), as well as corporate governance practice.
Launched in May 2004, the index arrived as the Second King Report on Corporate Governance urged companies to embrace the triple bottom line as a method of doing business while continuing to make a return for their shareholders.
Although responsible business activity was already bedded down for many SA companies, there was still a need for guidance on what their practices needed to encompass. Investors were also looking for a way to invest in companies that had good practices.
As a means of helping to focus the debate, the JSE 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.
Reviews take place annually during the second half of each year, with results usually announced at the end of November each year.