Pulp and paper producer Sappi has been included in the FTSE/JSE Responsible Investment Top 30 Index.
The company has also been confirmed as a constituent of the FTSE4Good Index Series, which is designed to measure the performance of companies demonstrating strong environmental, social and governance (ESG) practices.
The FTSE4Good indices are used by a variety of market participants to create and assess responsible investment funds and other products.
Additionally, Sappi has been classified as “prime” by ESG research expert ISS-oekom.
Sappi investor relations and sustainability group head Graeme Wild said that, with growing evidence of investors incorporating ESG issues into their investment decision-making, these achievements are highly positive for Sappi.
FTSE Russell, the global index provider, in 2015, launched the FTSE/JSE Responsible Investment Series, developed as a result of the expanded partnership between FTSE Russell and JSE.
FTSE Russell and JSE have seen a significant increase in the number of institutional investors wanting to integrate ESG considerations into their investments. As a result, the businesses are collaborating to develop a suite of tools for the market to aide ESG integration.
The index series initially comprised FTSE/JSE Responsible Investment Benchmark and a Top 30 Index, containing the top 30 companies as ranked by the FTSE ESG ratings.
The FTSE ESG ratings, which act as a basis for the new index series’ methodology, provide objective ESG exposure and performance data that is based on clear and easy to apply methodologies.
They encompass an overall rating that breaks down into underlying pillar and thematic scores that are built on more detailed indicator assessments. This allows investors to understand a company’s ESG practices in multiple dimensions.