Value of share trading in 2008: US$400.8 billion
Number of listed companies: 406
Web address: www.jse.co.za
The JSE’s Socially Responsible Investment (SRI) Index was established in May 2004 at a time when globally, sustainability imperatives were coming to the fore as serious issues for corporates. South Africa’s history had prompted many companies to address aspects of sustainability already, particularly social factors, under the banner of corporate social responsibility (CSR). The JSE’s challenge was to apply a more integrated approach to the way companies were identifying and managing these risks. The JSE also hoped that the index’s influence on company behaviour would ultimately impact positively on society through pro-poor initiatives.
Wanting to recognize companies with existing sustainability practices and to encourage those who may have neglected these responsibilities, the JSE sought to leverage its unique position within the financial sector by launching a benchmark index. The index would crystallize debate around sustainability and provide incentives for companies to incorporate its criteria into their everyday business activities. It would also provide investors with a tool to assess and value company performance with regard to CSR and sustainability.
The launch of the SRI index was a pioneering initiative: it was the first index of its kind owned by an exchange, and the first in an emerging market. As such, it reflected developmental and transformational issues typical of an emerging market. Unusually, its formation was inspired in part by the corporate sector.
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