This report shows public data only. Is this your organisation? If so, login here to view your full report.

JSE Limited

Service Provider Reporting Framework 2017

You are in Strategy and Governance » Responsible investment policy

Responsible investment policy

SG 01. Responsible investment policy

01.1. Describe how your organisation’s philosophy incorporates environmental, social and governance factors, and the link to your business offerings.

          The JSE understands that a sustainable business is one that operates with a long-term perspective and the recognition that it both impacts and is impacted by the context within which the business operates (including the stakeholder, environmental, political, legal, and economic context). The business is operated according to a philosophy that tries to balance the interests of all stakeholders, particularly in relation to the following three pressures:
• optimising shareholder value;
• reinvesting internally in people and technology; and
• driving down cost to clients.
As far as possible, the JSE business is operated and positioned in a manner that not only provides thought leadership impacting or influencing stakeholders, but also sets an example in achieving excellence. The JSE actively promotes sustainable, transparent business and responsible investment across a range of areas including the following:
- as a global thought leader in the field of governance and sustainability and the related standards and disclosure;
- evolving and expanding its responsible investment product offering;
- ensuring operational excellence through considering the ESG risks, impacts and opportunities of the JSE's activities and disclosures. Recent progress has earned the JSE inclusion in the FTSE/JSE Responsible Investment
benchmark index as well as the FTSE/JSE Responsible Investment Top 30 Index in December 2016.
        

01.2. Indicate whether you have policies that formalise the incorporation of your beliefs in your business offerings.

01.3. Indicate the components/types  of your policy

Policy components/types
          Organisational strategy
        
          Sustainability strategy
        

01.4. Indicate how these are put into practice internally across the organisation.

          Monitoring of progress against strategic objectives through corporate scorecard and reporting at executive and Board level
        

01.5. Additional information [OPTIONAL]


SG 02. Publically available policies

02.1. Indicate which of your policy documents or statements (if any) are publicly available. Provide the URL and an attachment of the document.

Policy or document name

Attachment (optional)


Attachment (optional)


Attachment (optional)


          Overview of organisational strategy and corporate scorecard performance is set out annually in our Integrated Annual Report
        

Attachment (optional)


02.2. Additional information. [OPTIONAL]

Not all policy documents are currently available in the public domain, we limit public disclosure to policies that are deemed critical for stakeholders to have access to, and with particular reference to the disclosure requirements of the FTSE Russell ESG Ratings which we are subject to.

A number of policies are currently undergoing review.


SG 03. Norms used to develop policies

03.1. Indicate what standards you have used to develop your organisation’s policies. Tick all that apply.

          King Code on Corporate Governance for South Africa
        
          National legislation including the Constitution of South Africa; Companies Act; Labour Relations, Employment Equity and Broad-Based Black Economic Empowerment legislation; Financial Sector transformation codes
        

SG 04. Policy offerings to clients

04.1. Indicate whether you offer any of the following policies to clients.

Off the shelf
Tailored
Asset class-specific RI guidelines
Sector-specific RI guidelines
Screening/exclusions policy
Engagement policy
(Proxy) voting policy
RI guidelines set out within the Investment Policy Statement (IPS)
RI guidelines set out in a freestanding RI policy
Multi-year RI implementation project plan
Conflict of interest management policy
Stockbroker allocation policy
Securities lending policy
Other, please specify (1)
Other, please specify (2)
Other, please specify (3)
None of the above

SG 05. ESG/RI in business offerings

05.1. Describe how you include ESG/RI factors as an integral part of your business offerings.

Business area

Other, specify (1)

          Responsible Investment product offering
        

How you include ESG/RI factors

Sustainability function forms part of Capital Markets division which also includes:

-  key client management

- primary market activities

- group strategy

This helps to ensure integrated interaction and research enabling ESG input to be provided to client relationship management, focused product development and support of organisational strategy

05.2. Describe the resources that your organisation allocates to ESG/RI offerings where these form only a supplementary ESG/RI service.

Business area

Research and Data Provision

Describe the resources allocated to ESG/RI offerings

One full time sustainability resource, supported by various staff members throughout various other divisions within Capital Markets and other JSE divisions as may be required, including Corporate Affairs; Governance, Risk and Compliance; Information Services


SG 06. Outsourcing of services (Private)


SG 06.2. Outsourcing of services (Private)


SG 07. Providing training/education

07.1. Indicate whether you provide training/educational services on ESG/RI. Tick all that apply.

07.2. Describe the main components of your training/educational services on ESG/RI and any variations depending on the group you provide training/education to.

Various training offerings are in place. Topics currently include director induction and training, listing requirements training, governance, specifically the King Code, integrated reporting and ethics.

          Training for listed companies
        

07.2. Describe the main components of your training/educational services on ESG/RI and any variations depending on the group you provide training/education to.

Various training offerings are in place. Topics currently include investor relations training, governance, specifically the King Code, integrated reporting and ethics.


SG 08. Level of involvement in collaborative organizations and/or initiatives

08.1. Select the collaborative organisation and/or initiatives of which your organisation is a member, or in which it participated during the reporting year and the role you played.

Collaborative Organisation/Initiative

Provide a brief commentary on the level of your organisation’s involvement in the initiative [OPTIONAL]

          
        
          Sustainable Stock Exchanges Initiative
        

Provide a brief commentary on the level of your organisation’s involvement in the initiative [OPTIONAL]

          
        
          World Federation of Exchanges' Sustainability Working Group
        

Provide a brief commentary on the level of your organisation’s involvement in the initiative [OPTIONAL]

          Head of Sustainability currently chairs this group
        
          Integrated Reporting Committee of South Africa
King Committee
        

Provide a brief commentary on the level of your organisation’s involvement in the initiative [OPTIONAL]

          
        
          Committee for the Code for Responsible Investment In South Africa
        

Provide a brief commentary on the level of your organisation’s involvement in the initiative [OPTIONAL]

          
        

08.2. Additional information. [OPTIONAL]


SG 09. Applying, advancing and promoting the PRI principles

09.1. Describe how your organisation applies, advances and promotes the PRI Principles.

Please refer to previous questions regarding business activities as well as SSE fact sheet and Communication to Stakeholders at http://www.sseinitiative.org/fact-sheet/jse/

09.2. Highlight whether there are any ways that your organisation would like to engage further with the PRI. [OPTIONAL]


SG 10. Actions taken to promote responsible investment

10.1. Indicate which of the following actions your organisation has taken to promote responsible investments, independently of collaborative initiatives.

          Offering responsible investment products
Regulating and encouraging greater ESG transparency
        

10.2. Additional information. [OPTIONAL]


SG 11. Long term trends

11.1. Indicate which of the following long-term trends are addressed in your product outputs.

11.2. Explain how this long term trend affects your product outputs.

Product and service offerings need to take account of the particular context of South Africa and the need to enable broader economic participation

11.2. Explain how this long term trend affects your product outputs.

Certain listed sectors and asset classes such as commodities may be directly affected by climate change, having a range of potential impacts on the marekt including price volatility.

The needs to address climate change through mitigation and adaptation creates opportunity for new products / markets

11.2. Explain how this long term trend affects your product outputs.

Certain listed sectors and asset classes may be directly affected by resource scarcity

11.2. Explain how this long term trend affects your product outputs.

Capital markets are highly dependent on technology and must remain rapidly responsive to and even take the lead technological advancements

          Socio-economic transformation
        

11.2. Explain how this long term trend affects your product outputs.

Product and service offerings need to take account of the particular context of South Africa and the need to enable broader economic participation


SG 12. Business certifications/accreditations (Private)


SG 13. Interaction with asset owners

13.1. Indicate whether you interact with asset owner clients.

13.2. Indicate the typical frequency and type of interactions with your asset owner clients.

Type of interaction

Frequency

Frequency

Frequency

Frequency

          Market communication sessions (general or topic-specific_
        

Frequency

          ESG Investor Briefing
        

Frequency

13.3. Tick boxes across level of employment of investor contact (C-level, PM etc.) and subject areas typically addressed with the contact(s).

Level of employment

Subject area(s)

          Capital market issues generally, national economy, JSE services
        

Subject area(s)

          Capital market issues generally, national economy, JSE services, FTSE ESG Ratings performance
        

Subject area(s)

          Investor relations
        

Subject area(s)

          Responsible Investment product offering
        
          JSE Advisory Committees
        

Subject area(s)

          Trading, Clearing & Settlement, Product development, Asset class-specific committees
        

SG 14. Aligning approach with investor goals

14.1. Describe how you align your organisation’s philosophy on and approach to ESG/RI with investor goals.

          Services and products are developed and evolved with client needs in mind as far as possible. Customised offerings aim to meet particular needs or goals.
        

14.2. Additional information. [OPTIONAL]


SG 15. ESG recommendations not aligned with investor goals

15.1. Describe what steps you take, if any, when your ESG recommendations are not in line with investor goals.

          Customised offerings can be explored where broad market offerings don't align with specific investor's goals. Services and products are intended to ensure market stability and investor protection, however aim to be flexible and adaptable to client needs as well.
        

15.2. Additional information. [OPTIONAL]


SG 16. Seeking feedback from clients

16.1. Indicate whether you seek feedback from clients on your RI/ESG services and product offerings

16.2. Describe how you use this feedback on your RI/ESG services and product offerings.

Feedback is used to continue to evolve existing offerings and to explore new offerings.


SG 17. Managing conflicts of interest

17.1. Indicate whether your organisation has a policy for managing potential conflicts of interest.

17.2. Describe how you manage potential conflicts of interest.

Strict policies are in place around disclosure and management of conflicts

17.3. Describe how you ensure that company employees do not derive any personal gain from the use of information collected during your work process.

Strict employment policies apply with serious consequences for contraventions (including potential criminal action in the case of e.g. insider trading or market manipulation).

Issuer Regulation functionality is physically and practically isolated and ring-fenced from commercial and other business functionality.


Top