Sustainable Product Suite
The JSE plays an important role in facilitating responsible investment and sustainable development by providing a platform for ESG instruments.
Sustainable Finance and Investment
Sustainability Segment
Businesses that focus on ensuring a sustainable future are worth investing in today. Introducing the JSE’s new Sustainability Segment, enabling companies to raise debt for green, social and sustainable initiatives on a trusted, global market place.
The JSE’s Sustainability Segment makes it easier to list and trade sustainability related instruments, and provides a platform for companies and other institutions to raise funds for activities directed at sustainable development as we transition to a sustainable economy. These instruments provide an opportunity to finance investments that provide environmental and social benefits. This segment broadens the investment options available to investors, and allows issuers to increase their participation in impact and sustainability investments.
Green Bonds
Bonds are fixed income investments. Borrowers (usually governments or large corporations) issue bonds in order to gain access to capital, which is used to fund operations, investments or projects.
The bond specifies its maturity date (the date on which bond holders will be repaid the principal of the loan) as well as the interest to be paid (which may be fixed or variable). Once issued, most bonds may be traded. Bonds issued in terms of JSE regulations may be traded on the JSE Debt Market.
Green Bonds are specifically designed to raise money for environmental or climate-related projects.
Social Bonds
Bonds are fixed income investments. Borrowers (usually governments or large corporations) issue bonds in order to gain access to capital, which is used to fund operations, investments or projects.
The bond specifies its maturity date (the date on which bond holders will be repaid the principal of the loan) as well as the interest to be paid (which may be fixed or variable). Once issued, most bonds may be traded. Bonds issued in terms of JSE regulations may be traded on the JSE Debt Market.
Social Bonds are specifically designed to raise money for socially responsible initiatives such as creating employment or building low-cost housing.
Sustainability Bonds
Bonds are fixed income investments. Borrowers (usually governments or large corporations) issue bonds in order to gain access to capital, which is used to fund operations, investments or projects.
The bond specifies its maturity date (the date on which bond holders will be repaid the principal of the loan) as well as the interest to be paid (which may be fixed or variable). Once issued, most bonds may be traded. Bonds issued in terms of JSE regulations may be traded on the JSE Debt Market.
Sustainability Bonds are specifically designed to raise money for environmentally- and socially responsible initiatives. In practice, a Sustainability Bond combines the features of Green- and Social Bonds.
Transition Segment
The Transition Segment is a platform on JSE’s Main Board to list transition debt securities, where issuers can raise funds for climate or just transition-related purposes. A just transition means greening the economy in a way that is as fair and inclusive as possible to everyone concerned, therefore creating decent work opportunities for all.
Transition finance is expected to play a significant role in enabling a just transition. It is particularly relevant to a carbon-intensive economy such as South Africa, as it supports the achievement of our national commitment to the Paris Agreement and the goal of being net zero by 2050.
Sustainability-Linked Bonds
Sustainability-linked bonds are debt securities were borrowers, usually governments or large corporations, issue bonds to fund sustainability-related initiatives. These are fixed-income investments that trade on the JSE’s Interest Rate Market. There are various types of Sustainability-linked bonds.
These sustainability- linked debt securities which are bonds whereby the proceeds from the issuance can ear marked for green or other sustainability purposes.
Like all bonds, sustainability-linked bonds specify the maturity date (the date on which bondholders will be repaid the loan's principal) and the interest to be paid (which may be fixed or variable).
ESG Data Products
In a world where Environmental, Social and Governance factors play an increasingly integral role in investment decision making, we continue to progress our work to promote greater corporate transparency and issuer-investor interaction in the interests of sustainable business and investment practices.
In partnership with FTSE Russell (FTSE), part of the London Stock Exchange Group (LSEG), who have recently bolstered their SI data through the Refinitiv acquisition, we access to a broad range of ESG data and approaches. This coupled with the vast experience of FTSE Russell as an index calculator, we have the opportunity to meet clients’ varied ESG needs and build custom indices based on their own preferences including Best-in-Class; Thematic; ‘Smart Sustainability’, Climate tilts, Carbon exclusions. This in-depth data can be used by Investors to track performance and make more informed investment decisions.
Sustainability Index Futures
As one of the Top 20 largest exchanges in the world by market capitalisation ranked by the World Federation of Exchanges, the JSE provides Issuers with access to deep and liquid capital markets in a regulated and secure marketplace for over 130 years.
The JSE’s capital markets enable innovation, raising capital and shared prosperity. As a leading global exchange, the JSE co-creates and unlocks value through innovative products and services that meet the needs of our clients.
In addition to being the first stock exchange globally to introduce a sustainability index and to incorporate a move toward integrated reporting, the JSE continues to provide sustainable products for investors to trade such as the Sustainability Index Futures