The Johannesburg Stock Exchange (JSE) has launched a Social Responsibility Index to measure 'triple bottom line` performance of participating companies.
The JSE notes that the second King report on corporate governance urges companies to embrace the 'triple bottom line` as a method of doing business. At the same time, any attempt to develop triple bottom line practices needs to be balanced with the need for companies to make a return for their shareholders.
As a means of helping to focus the debate on triple bottom line practices, the JSE has developed criteria to measure the triple bottom line performance of those companies in the FTSE/JSE All Share Index that choose to participate.
The index is structured along the three 'pillars` of the triple bottom line - environmental, social and economic sustainability. Included in these are diversity, equity and empowerment.
The JSE says in a statement: "A company must address each of these pillars if it is truly to be said to have integrated sustainability into its business practices."
The JSE contracted Sustainability Research and Intelligence to collect all raw data relating to the companies participating in the index, and conduct in-depth research and analysis of each eligible company on their performance in relation to the criteria.
Trading in the index will commence tomorrow.
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