Massmart has once again been recognised as one of the top 10 best performers in the medium environmental impact category of the JSE’s 2012 Socially Responsible Investment (SRI) Index, the results of which were announced on Wednesday (28 November 2012).
The SRI Index comprises of listed companies which meet criteria related to their environmental, socialand governance (ESG) policies, management practices and reporting. The intention of the index is twofold: to encourage companies to operate responsibly and transparently and to prompt institutions to consider ESG factors when evaluating investments. The SRI Index is a key benchmark for broad-based environmental, social and governance practice amongst listed companies.
This year Massmart met all 39 core indicators and 42 out of 49 desirable indicators in social performance. For governance and related sustainability concerns, 32 out of 32 for core indicators and 32 out of 33 for desirable indicators were met. All environmental performance indicators were met.
Massmart has been a constituent of the SRI index since its inception in 2004. Last year saw Massmart achieve full marks in the governance and related sustainability concerns dimension, meeting all 32 core indicators as well as all 33 desirable indicators. It also met 92 out of 98 criteria on the social dimension making it one of the best performers in the medium environmental impact category of the JSE’s 2011 SRI Index. Massmart achieved best performer status in the SRI in 2007 and 2008.
The criteria covered in the index provide a comprehensive framework for monitoring corporate responsibility. In this sense the Massmart Social & Ethics committee reference the draft and final results as a key part of their efforts to track responsible practise at Massmart. The SRI Index has evolved considerably since its inception in 2004. This year, the total number of constituents stands at 76 out of an assessed universe of over 100 companies. The incremental success of participants, especially in the face of increasingly demanding criteria, demonstrates deepened commitment to principles of sustainability and corporate South Africa’s increased comfort with the assessment criteria.
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