Welcome to the FTSE/JSE Responsible Investment index series
The JSE, 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.
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Responsible Investment (J113)
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The Responsible Investment Index comprises constituents of the Shareholder Weighted All Share Index (J403) which are also companies that have securities included in the FTSE All World Index. This is a market capitalisation weighted index. Constituents of the eligible universe require a FTSE ESG Rating of 2.9 or above.
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 8990 Weighting Methodology SWIX Free Float Market Cap Weighted Ranking Methodology Ranked by ESG score 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 -
Responsible Investment Top 30 (J110)
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The Responsible Investment Top 30 Index comprises the top 30 FTSE ESG rated companies included in the Responsible Investment Index (J113) ranked by FTSE ESG Ratings. This is an equally weighted index.
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 8990 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