The FINANCIAL -- FTSE Russell, the global index provider, has announced it is working with Johannesburg Stock Exchange (“JSE”), Africa’s largest exchange, to develop a new environmental, social and governance (ESG) index series.
The collaboration between FTSE Russell and JSE reflects both businesses long term commitment and track record of innovation in the ESG and sustainability sector. FTSE Russell has been at the forefront of development since launching the FTSE4Good Series in 2001, which is now supported by the FTSE Environmental Market Series, the FTSE ESG Ratings and a dedicated ESG Business Unit. JSE is also seen as a pioneer, creating the Socially Responsible Investment (SRI) Index in 2004, which promotes sustainable and transparent business practices across its markets, according to London Stock Exchange.
During this time FTSE Russell and JSE have seen a significant increase in the number of institutional investors seeking to integrate ESG considerations into their investments. To meet this demand, the range, depth and breadth of techniques to apply ESG factors within the investment process have become more sophisticated and varied. This new partnership reflects an evolution in ESG approaches, and highlights the synergies and benefits that can be gained through working together.
David Harris , Head of ESG, FTSE Russell, said:
“In recent years, we have continued to see growing levels of interest in responsible investment and ESG factors from institutional and retail investors throughout the world. FTSE Russell recognises the importance of building indexes to meet this increased demand, with benchmarks underpinned by innovative design and a focus on transparency. We are delighted to be working closely with our partner Johannesburg Stock Exchange and supporting a market that has been a frontrunner in promoting high quality ESG disclosure and practice.”
Head of the SRI Index and Sustainability at the Johannesburg Stock Exchange, Corli Le Roux said:
“This transition represents the next generation in our evolutionary work to promote ESG disclosure, building on the achievements of the SRI Index and the great strides that South African corporates have made in this regard, and will enable us to respond to the growing need amongst investors seeking to integrate sustainability considerations into their investments.”
FTSE Russell and JSE’s latest collaboration builds on the existing relationship between the two business through the calculation of the FTSE/JSE Africa Index Series.