The Johannesburg Stock Exchange (JSE) and UK–based responsible investment research specialists EIRIS today announced the appointment of local research partner the University of Stellenbosch Business School (USB) to conduct the company analysis for the 2010 JSE Socially Responsible Investment (SRI) Index.
Launched in 2004, the JSE SRI Index is a broad-based triple bottom line and governance index which has become a widely accepted gauge for good corporate citizenship for companies. The index employs a broad range of listing criteria which reflect global SRI standards while accommodating issues peculiar to South Africa such as Black Economic Empowerment and HIV/AIDS.
The 2010 SRI Index review process, which commences within the next couple of weeks, will be undertaken by EIRIS in conjunction with the business school’s Unit for Corporate Governance in Africa headed by Daniel Malan. “The involvement of a local partner is a significant step forward in the building of capacity in South Africa around ESG knowledge and research,” says Corli le Roux, Head of the SRI Index at the JSE.
As part of the process of transferring knowledge and building capacity, the Unit will handle the research of a large percentage of companies this year, while the remainder will be handled by EIRIS. “The intention is that in due course the Unit will be responsible for the bulk of the research. The JSE continues its relationship with EIRIS, which remains responsible for the oversight of the entire research process and the final quality assurance of the analysis. As far as companies are concerned, the process will remain unchanged,” adds Le Roux.
"We have been looking for opportunities to build a local partnership as the index has become more established. Around the world we find that our local partnerships deliver better local knowledge and provide valuable research insights,” said Peter Webster, Executive Director of EIRIS. “We are very pleased to be able to contribute to skills development in South Africa regarding this increasingly important aspect of the investment process. The Unit for Corporate Governance in Africa at the USB has an established track record in the field of corporate governance and as investors around the world widen their governance concerns to include social and environmental issues we look forward to working together to address that demand in South Africa,” he continued.
"We are looking forward to working with EIRIS, an acknowledged global expert in responsible investment. We also anticipate synergies to develop between different research processes, which can only benefit South African companies," says Malan. The Unit for Corporate Governance has conducted related research on behalf of the Public Investment Corporation.