Rationale & Purpose:
Rationale andamp; Purpose Launch of the BiE in 1996 and the Dow Jones SD Group of Indexes in 1999
BiE – gaps in social issues (main focus was environmental)
DJSGI – gaps in developing country issues
Trend towards the use of market-based tools which make the connection between shareholder value and SD performance
Need for developing country tools that give some certainty with respect to investments
Need for tools that create competitiveness between companies and sectors, andamp; act as catalysts for SD
Need for integrated benchmarking tools to show improvements in SD performance year by year , and look at more than just aspirations
Partners with BCSD:SA:
Partners with BCSD:SA Initially KPMG, BusinessMap Foundation, ABB, and BHPBilliton
Memorandum of Understanding with the Business in the Environment (BiE) to exchange experience, expertise, criteria, software, credibility
Now supported by the FTSE, JSE, Institute of Directors (inc. the King Committee), BCSD Board (Mondi, Eskom, Sasol, Ericsson, and Exel Petroleum) and a range of other institutions. The Prince of Wales Leadership Programme, WBCSD, NBI are also very interested in the idea
Regional BCSDs may collaborate – due to work already done or common issues
Structure & Outputs:
Structure andamp; Outputs Structure initially very simple – need to test the SA market
Non-profit, independent company to implement
Annual cycle of appraisal of participating companies with public reporting of all rankings
Main output - Benchmarking Index for listed and non-listed, small and large companies which can participate from a range of sectors, on an equal basis (no exclusions except for incomplete/non-verified input)
Criteria (social, environmental and economic) to reflect the SA reality
Weightings will be risk-based, and prioritised according to local conditions
Company performance will be publically available (consolidated data only)
Experience-sharing with JSE/FTSE, BiE and others
Secondary outputs – published surveys, trends, web portal, leadership programmes, support services etc.
How far are we?:
How far are we? Business plan in place and media launch of concept
MoUs and partners in place
Primary and detailed research completed
Draft criteria developed
Primary consultation completed (broad), secondary consultation in process – one-on-one meetings, workshops and detailed input from key individuals and stakeholders
Next step – pilot phase launch, establish support base and first round of results
Conclusions:
Conclusions This will set a SA and developing country precedent, alongside the JSE initiative
Needs to be robust and cannot fail in our small market – therefore needs scrutiny from other stakeholders to give credibility and independence
Will form the necessary market link between environmental, social and economic performance
Will create some certainty for outside investors looking for performance information, and provide ongoing direction to companies
Will present a stronger business case for SD, and encourage good corporate citizenship
Will be a necessary tool for implementing the King Code of Corporate Governance in SA