The imperative to build a long term business model that takes cognisance of the impacts, risks and opportunities in relation to the environmental, social and economic contexts within which an organisation operates, is increasingly becoming part of the licence to operate for companies the world over. At its core a governance issue, sustainability requires particular focus given the planetary boundaries and the need to understand the impacts of any entity on society and the environment.
Investors also progressively recognise that they can no longer ignore these elements when performing fundamental analysis, and evidence is mounting that companies who integrate broader sustainability considerations into their value proposition, clearly position themselves for better performance in the longer term.
At the JSE, sustainability has various facets in that it requires the company to balance considerations of how it runs its own business, JSE Ltd, so as to ensure sustainable value creation for its own stakeholders, while also considering its external circle of control and ability to influence issuers, investors and the intermediaries which facilitate interaction between them.
Contributing to sustainable business practices in the marketplace
Exchanges are critical cogs in the capital markets systems that are conduits for the capital flows that fuel economic growth. As a pivotal player, many of the JSE’s activities to date have been focused outward at influencing corporate and investor behaviour in a positive manner, through:
The JSE has long been a champion in this regard,and is recognised and highly regarded as such locally and globally.
Towards a company that is built to last
The JSE has acknowledged in its organisational strategy the need to build a resilient organisation which is positioned for the future, and has been working internally to integrate sustainability considerations into its business operations and services.
At a high level, the aim is to position the JSE to deliver sustainable value over the long term, through employing our competencies in a sustainable manner to achieve sustainable commercial growth and contribute to a sustainable community – all within the context of sound governance and a sustainable environmental footprint.
The four main areas of focus are: