The JSE socially responsible investment index and the state of sustainability reporting in South Africa

The JSE Limited (JSE) in South Africa is the first bourse in an emerging market to develop a sustainability index for its top 160 listed companies. This article provides an overview of the Index methodology and uses the first and second rounds of the Index to assess the state of sustainability reporting among participating companies. It describes general trends related to priority issues in companies' reports, the extent and manner of reporting, and which kinds of companies are emerging as leaders in reporting. More detailed patterns of reporting are considered with respect to the four key categories in the Index: corporate governance, society, economy and environment. The article also considers the role of the Index in terms of the nascent socially responsible investment (SRI) movement in South Africa. It argues that a number of challenges need to be met in order to enhance the impact of the Index and of SRI on corporate behaviour in South Africa and Africa.