The Johannesburg Stock Exchange, as a leader in emerging markets, recognises the importance of integrating the long-term perspective into financial markets to reduce socio-economic and physical risks and to contribute to enhanced financial stability and a low carbon economy. We undertake to:
• Guide our markets on the importance of incorporating ESG into investment considerations
• Provide the tools and services that facilitate responsible investing and the re-orientation of capital flows to more sustainable development
• Use our central role as connector to facilitate engagement and advocacy in relation to sustainability
• Ourselves behave in a manner that explicitly considers sustainability across our value chain as an exchange and as a central player in the South African economy
Regulator, influencer, advocate
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:
- high regulatory standards,
- products such as the SRI Index and
- thought leadership, advocacy and engagement
The JSE has long been a champion in this regard,and is recognised and highly regarded as such locally and globally.
- It was the first emerging market as well as the first stock exchange globally to introduce a sustainability index measuring companies on indicators related to environmental, social and governance, or ‘ESG’ practices.
- It is a signatory to the United Nations-backed Principles for Responsible Investment (a global investor initiative which encourages consideration of environment, society and governance (ESG) in investment decisions), and a founding partner of the Sustainable Stock Exchanges Initiative.
- The JSE’s listing requirements around the King Code on Corporate Governance have been significantly influential and following King III it is the first stock exchange globally to incorporate the move towards integrated reporting, as a consequence of King Code on Corporate Governance into its listing rules, guided by the ‘apply or explain’ principle.
- The JSE is also active in serving on a number of panels and committees related to responsible investment, sustainability and integrated reporting.
See more on how the JSE approaches sustainability here.
The JSE Ltd journey
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:
- Operations and Technology
- Products and Services
- Stakeholder relationships
See how the JSE manages their corporate footprint here.