Two thirds of JSE-listed companies assessed on behalf of the JSE by global investment research provider EIRIS (with their local partner at the University of Stellenbosch Business School), fulfil the base requirements to become a constituent of the exchange’s Socially Responsible Investment (SRI) Index.
The exchange has released the findings of the 2011 annual SRI Index review (which reviewed 109 companies, including the JSE’s biggest) which aims to encourage integrated risk management among companies and to prompt investors to use responsible investment strategies.
Climate change a significant challenge
The announcement was made in Durban in parallel to the 17th Conference of the Parties on climate change (COP 17). JSE Director of Government and International relations, Geoff Rothschild, commented at the event that “The JSE recognises climate change as being one of the most significant sustainability challenges facing us at this time. There is a need for anyone who considers themselves a responsible global citizen to make the necessary changes towards a more sustainable existence in order to safeguard the future of both our species and the planet.”
The SRI Index comprises listed companies which meet criteria related to their environmental, social and governance (ESG) policies, management practices and reporting. The first of its kind in an emerging market, and a leader worldwide, the index’s intention is two-fold: to encourage companies to operate responsibly and transparently and to prompt institutions to consider ESG factors when evaluating potential investments. Following its inception in 2004, the SRI Index has become a significant benchmark for broad-based environmental, social and governance practice amongst local listed companies.
Companies embracing change
“We remain impressed with how willing companies are to seriously engage on issues. The increasing depth of discussion and extent of company responses supplied affirm that companies now see ESG principles as very much a part of normal business practice, and this is reflected in this year’s SRI Index composition,” says Corli Le Roux, Head of the JSE SRI Index.
In the 2011 SRI Index review –
- 109 companies were assessed, 9 for the first time;
- 83 of those assessed submitted detailed profiles and responses. This response rate is particularly high, both in local and global terms;
- 67.9% of the total assessed companies qualified for the SRI Index, with a resulting Index constituency of 74 companies;
- Three companies are in the Index for the first time;
- 22 companies have been identified as best performers, meeting a higher threshold than in 2010;
- Three of these qualified as best performers for the first time.
With consistent strong performance in relation to social and governance issues, environmental practices remain a hurdle for companies, despite demonstrating improvement in this year’s review. The higher climate change entry threshold for 2011 also proved a challenge.
The mining and banking sector continue to perform well, and this year all companies in the sectors for Construction & Materials, General Financial, Industrial Metals and Life Insurance qualified.
Dovetailing off these results, the JSE commissioned a study into the extent to which leading South African companies are tackling climate change. The research focused on the ‘Top 40’ large cap South African companies listed on the JSE SRI index.
The analysis reveals encouraging signs of progress through improved governance, better strategies and more disclosure on climate change. Overall, 95% of companies analysed demonstrate at least some form of response to climate change. But only 30% of the companies analysed have demonstrated reductions in their operational GHG emissions over the past few years.
Says Le Roux: “The JSE ‘Top 40’ companies have certainly made some progress on climate change to date. However, much more still needs to be done to reduce their own climate change impacts and to better plan for how they will operate in a world that has been altered by climate change.”
Conclusions of the JSE Top 40 Climate Change Report are:
- 73% of JSE Top 40 companies demonstrate a good overall response to climate change;
- 95% of companies published commitments on climate change and have senior staff responsible for the issue;
- 60% of companies have set short-term GHG emissions targets, but only 23% have set long-term targets, leaving considerable room for improvement;
- 95% of companies are disclosing absolute CO2 emissions and 85% are disclosing normalised emissions;
- 30% of companies have reduced CO2 emissions over the last few years;
- 35% of companies have linked performance on climate change to manager’s remuneration;
- Mining and banks sectors – the two largest sectors amongst the JSE Top 40 – demonstrate a high quality response to climate change overall.
Le Roux concludes: “From the JSE’s perspective, the priority for the SRI Index in 2011 has been strengthening investor relationships, particularly with fellow signatories of the PRI (Principles for Responsible Investment). Going forward, our focus will be to expand the availability of analysis on company performance from the SRI Index process, an area which has been highlighted as a need for investors to strengthen their engagement with and investment in companies. Through the evolution of the SRI Index the JSE aims to continue to identify opportunities to encourage transparency and responsibility in relation to ESG concerns.”
The JSE, a central player in the local economy, sees itself as influencer and regulator of listed companies. Its sustainability activities include company regulation (the Listings Requirements include a requirement to apply King III or explain where this has not occurred), investment tools (such as the SRI index and customised products), sustainability advocacy and a growing focus on internal sustainability.
FNB Sets Its Sights On Growing Female Entrepreneurs In South Africa
First National Bank looks to grow women entrepreneurship in South Africa.
FNB has set its sights on growing women owned and led businesses in South Africa, a commitment that has seen the bank enter into partnerships to facilitate mentorship for some of the most promising enterprises.
The bank has a good foundation to build on, as 38% of all new business accounts opened with FNB Business are either led or owned by women, highlighting an already established entrepreneurial momentum.
“We are cognisant of the fact that neither government nor corporate South Africa are going to be the sole sources of job creation. We therefore have an obligation to support and grow entrepreneurship. Partnerships such as the one entered into with International Finance Corporation (IFC) enables us to assist in developing women owned business,” says Michelle Geraghty, Head of Women in Business at FNB Business.
Over the last few years, FNB has, through a partnership with the Vumela Fund, assisted businesses such asSAIL, a leading skills and training institute that offers a range of qualifications to the public sector, and Toni Glass who produce a collection of world class tea, to not only scale effectively, but to bolster each of the business’s offering to market.
“Our approach is to, much like we have done with the likes of Sail and Tony Glass, enable qualifying women owned businesses in their growth curve by offering help that includes transact, lending, investing and insuring solutions. This will include facilitating the registration of the business online via the FNB registrations system which links to CIPC, to Instant accounting and payroll solutions aimed at reducing operating costs for the business. This will also extend to support in the incubation stage of selected businesses through Vumela. We will carry this right through to private equity funding,” explains Geraghty.
Vumela was established as an innovative model that is aimed at filling the gaps in the current SME funding and support landscape. While Vumela is an SME growth fund, it also functions as the bank’s primary Enterprise Development and Supply Development vehicle, able to fulfil both SME funding and growth needs, and corporate ESD requirements, avenues that FNB will be making use of.
FNB also intends on tracking jobs created through these initiatives to ensure a trickledown effect that not only benefits the business owner but also increases the overall number of women participating in business in South Africa.
“The need to grow the number of women in business is one that if done correctly, can address many of the disparities and anguish that women continuously face. Access to fair opportunities to grow their businesses and in turn make a real impact on the South African economy,” concludes Geraghty.
Great Bunch Of Entrepreneurs Make Top 10 In The Workspace/MiWay Competition
The top 10 in The Workspace/MiWay entrepreneur competition have been selected.
After an intense four-month process, the top 10 contenders in The Workspace/MiWay Entrepreneur competition have been notified that they’re through to the next round. These entrepreneurs will pitch their businesses to the judges, who will then whittle down the number of contenders to five, from which the winner will be chosen.
“There has been great excitement over the past four months. As every single new entry came in, we would clap our hands and cheer,” said Mari Schourie, CEO of The Workspace. It was a tough job judging all the entries to reach the top 20 submissions, she said, before having to find the top 10.
“We’ve had really strong entries submitted by people with good business knowledge,” said Schourie. “You can see the willingness to work hard and the great amount of effort they have put into their initiatives.”
Schourie said judges saw “wonderful ideas and fabulous business minds and quality people with big dreams shine through the entries”.
The top 10 are:
- Loyal 1
- Dwyka Mining Services
- Minatlou Trading 251
- Sindis Best for all
- Convergence Three
- Zinde Zinde
- Matla Risk Management
- Artsort Trading
- Iconic Talent Agency
- Nthedikgwadi Transport Services
Schourie said she wished she could tell President Cyril Ramaphosa, who supports the growth of small business as an economic driver, “the ideas and the passion that these business owners have is inspiring and should be focused on more”.
The prize on offer – worth over R350 000 – will help set-up the winning entrepreneur for a period of 12 months, giving them a boost to help build their business.
Morné Stoltz, Head of Business Insurance at MiWay, said the theme that ran throughout the entries was that entrepreneurs wanted to make a difference and contribute to positive change in South Africa. “Many of the submissions focused on technical and developmental fields,” he said.
“Entrepreneurs recognise gaps in the market and see the potential for growth. Getting into the top 10 was not at all easy.”
Stoltz said South Africa had a “great bunch of entrepreneurs” and that standing together to give them a platform to launch was an exciting opportunity. “To grow our economy we need to help with skills development and give whatever assistance we can,” he said.
Part of the finalists’ road to the top includes a skills development programme for the top 10 entrants ahead of their important date to pitch their business plans to the judges.
As Schourie pointed out, it is vital to encourage South African citizens to act on their dreams and passions because “it can be a great success; they just need make that leap”.
Dates to watch:
- 21 June: Top 10 skills development programme
- 3 July: Top 10 pitches
- 6 July: Top 5 announcement
- 20 July: Final five workshops
- 10 August: Final five pitches
- 13 September: Winner announced
Top 22 Start-ups Chosen For Final Selection Days – Startupbootcamp Africa
After receiving 1,004 applications from all over the world, the SBC team in conjunction with the programme’s corporate sponsors have narrowed the applicants down to 22 top-tier tech start-ups that will be invited to the Final Selection Days on July 11th and 12th at PwC’s headquarters in Cape Town.
SBC Africa received 1,004 total applications from 77 countries on 5 continents. The start-ups that applied were exceptionally impressive and have gained more traction in the market than the applicants for the 2017 cohort. The talent in Africa is phenomenal and the corporate sponsors and SBC team dedicated 2 weeks to narrow it down to the Top 22 to be invited to Final Selection Days.
“It’s been an intense process due to the exceptionally high calibre of start-ups applying to the programme from across the continent,” states Philip Kiracofe, co-founder and CEO of Startupbootcamp Africa. “From 1,004 applications we have managed to narrow down to 22 of the most creative teams tackling daunting African problems. One of the key differentiators for start-ups that participate in the SBC Accelerator is the opportunity to secure commercial contracts with our sponsors. In order to make it onto our Top 22, each start-up has been chosen by at least 2 sponsors for potential proof of concept projects. The 2018 cohort is already shaping up to be a milestone moment for Africa.”
Zachariah George, co-founder and Chief Investment Officer of Startupbootcamp Africa added, “The investment community across Africa is taking note of the significant traction and access to market that being an alumni of a global accelerator programme like ours provides. We are excited to further galvanize venture capital funding into tech startups through significant de-risking of business models and customer validation with our corporate partners globally.”
From the 22 teams that have been invited to the SBC Africa Final Selection Days, 10 will be selected to join the 2018 cohort. Over the span of the two Final Selection Days, the startups in attendance will have the opportunity to present their pitches to high-profile corporate sponsors, investors, thought leaders and industry experts and will have the chance to sit down with mentors and sponsors alike. At the end of Day Two, the Top 10 will be announced and will be welcomed to the Cape Town-based Accelerator that kicks off in August. During the 3-month period, they will have the opportunity to scale at an incredible pace and seal pilot and proof of concept deals with the corporate sponsors to the programme.
The SBC Africa Accelerator is anchored and endorsed by heavyweight corporate sponsors RCS, BNP Paribas Personal Finance, Nedbank, Old Mutual and PwC.
“We’ve seen an increase in the quality of start-ups applying to the programme. The awareness of the value of the programme has increased and the success of the first year of the bootcamp speaks for itself. More mature start-ups are also seeing the benefits of participating in Startupbootcamp Africa,” comments Stanley Gabriel, Head of Innovation at Old Mutual.
The Top 22 start-ups invited to the Final Selection Days come from 7 different countries. The numbers are as follows: 8 from Nigeria, 5 from South Africa, 3 from Uganda, 2 from the Ivory Coast, 2 from Kenya, 1 from Ghana and 1 from Ireland.
The names of the start-ups invited to Final Selection Days by country:
- Nigeria: Bankly Technologies, Biyabot, CredPal, FriendsVow, Kudimoney Bank, Medikal HMS, NebulaPay, and ZEEZZ Planet Solutions.
- South Africa: Brandbookalytics Big Data, ifileme, LÜLA, Prospa, and Akiba Digital
- Uganda: CoinPesa Ltd, RoundBob Uganda, and Swipe 2 Pay
- Ivory Coast: Digitech Group, and DISTRICASH
- Kenya: Kakbima, and MPost
- Ghana: Inclusive Financial Technologies
- Ireland: Pago Payments
It has been an incredible 3-month scouting journey for SBC Africa and now that the Top 22 have been announced, the Final Selection Days is the only hurdle left before the Accelerator officially kicks off on 13 August 2018.
There are high expectations for the Top 10 of 2018 and if the quality of the start-ups at this stage is any indication, 2018 is set to be a great success for the African tech and innovation ecosystem.
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