responsible investing

 

The JSE is the first emerging market and first stock exchange to form ​​a Socially Responsible Investment Index (SRI Index) in 2004, announced on 3 June 2015 that it is partnering with FTSE Russell, the global index provider, in progressing the JSE’s work around promoting corporate sustainability practices over the last decade.

The JSE has adopted the FTSE Russell ESG Ratings process to create the following two indices, launched on 12 October 2015: 

  • The FTSE/JSE Responsible Investment Index (​ J113)  
    • A market-cap weighted index calculated on an end of day basis - benchmark
    • Comprises all eligible companies who achieve the required minimum FTSE Russell ESG rating as set out in the Ground Rules from time to time​​
  • The FTSE/JSE Responsible Investment Top 30 Index ​(J110)  
    • An equally weighted index calculated on a real time basis - tradable
    • Comprises the Top 30 companies ranked by FTSE Russell ESG Rating​​

FTSE Russell ESG methodology summary​

What was the socially responsible investment (SRI) index?


Prior to the SRI Index being terminated in December 2015, and replaced with the FTSE/JSE. Responsible Investment Index Series, it was the original promoter of sustainable and transparent business practices. The SRI index series evolved considerably since it was launched in May 2004, with the arrival of sustainability initiatives internationally and the King code locally. It also saw to foster good corporate citizenship and promote sustainable development. Listed companies in the FTSE/JSE All Share index were reviewed annually against a set of Environmental, social and governance (ESG) concerns, with the last SRI index annual review calculation provided at the end of 2015 for the 2014 review. 

 

Contact us below to enquire about any of our Sustainability Products on offer

Responsible Investment Index

FTSE/JSE Responsible Investment Index (​J113)

About the Index:

  • This is a market-cap weighted index calculated on an end of day basis – benchmark.
  • It comprises all eligible companies who achieve the required minimum FTSE Russell ESG rating as set out in the Ground Rules from time to time​​.
  • It further comprises constituents of the Shareholder Weighted All Share Index, which are also companies that have securities included in the FTSE All World Index.
  • Constituents of the eligible universe require a FTSE ESG rating of 2.9 or above to be incorporated in this product.

 

The Index can be used as a reference benchmark for portfolios that have an ESG-based mandate and can also be used for research and analysis.

 

Key benefits and features:

Adoption of the FTSE ESG Ratings methodology delivers a strong value proposition for both investors and issuers in that qualifying JSE companies can form part of a global universe of over 7,200 securities, as assessed by FTSE. This enables benchmarking against international best practices in ESG reporting, coupled with investment in a domestic index.

 

Contract specifications:

​Name 

​Responsible Investment

​Index Code          

​J113

​Alpha Code

​REIB

​Index Category

​Responsible Investment

​Universe

​SWIX All Share Index (J403) constituents which are also companies that have securities included in the FTSE All World Index.

​Fixed No. of Companies

​No

​Liquidity Screening            

​Yes

​Free Float Screening

Minimum of 5%. 

​Other Screening

Minimum ESG score of 2.9​

Ineligible securities

Pyramid Status, SPAC Status, ICB code 302050

​Weighting Methodology

​SWIX Free Float Market Cap Weighted

​Ranking Methodology

​Ranked by Market Cap

​Capping Methodology

​N/A

​Index Review

​Semi-Annually in June and December

​Buffer Size           

​N/A

​Dissemination

​End of Day

​Live Date              

​2015/10/12

 

FTSE/JSE Responsible Investment Top 30 Index ​(J110)  

 

About the Index:

  • The Index is an equally weighted index calculated on a real time basis – tradable.
  • It comprises the Top 30 companies ranked by FTSE Russell ESG Rating​​

 

The Index can be used as a reference for the top ESG rated companies for portfolios that have an ESG-based mandate and can also be used for research and analysis.

 

Key benefits and features:

The FTSE/JSE Responsible Investment Top 30 Index is a subset of the RI Benchmark Index and consists of only the top 30 highest ESG-rated companies. It is an equally weighted index which allows for the ESG ratings to play a bigger role.

 

Contract specifications:

​Name 

​Responsible Investment Top 30

​Index Code          

​J110

​Alpha Code

​REIN

​Index Category

​Responsible Investment

​Universe

​Responsible Investment Index (J113).

​Fixed No. of Companies

​30

​Liquidity Screening            

​Yes

​Free Float Screening

Minimum of 5%. 

​Other Screening

Minimum ESG score of 2.9​

Ineligible securities

Pyramid Status, SPAC Status, ICB code 302050

​Weighting Methodology

​Equally Weighted

​Ranking Methodology

​Ranked by ESG score then by SWIX market cap where there is a tie in ESG scores

​Capping Methodology

​3.33% quarterly

​Index Review

​Semi-Annually in June and December

​Buffer Size           

​3

​Dissemination

​Real Time

​Live Date              

​2015/10/12

 

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