The Johannesburg Stock Exchange (JSE) and Risk Insights (RI), are collaborating to provide and use AI-powered data and rating tools developed by Risk Insights to advance Environmental, Social, and Governance (ESG) disclosure for JSE-listed companies and asset managers.
The initiative will provide issuers and investors with a better understanding and analysis of their impact on the environment while promoting impact investing, by offering listed companies with comprehensive ESG ratings, disclosure insights, and analytics, equipping them insights into sustainability.
The JSE has introduced and supported a range of products supporting the regulatory and disclosure journey of South African companies. This move to sync sustainability and data insights further demonstrates the exchange’s continued commitment to creating an enabling environment for market participants.
The JSE has also evolved into digital marketplace for data, facilitating the centralisation, standardisation and distribution of diverse data assets through various JSE Marketplace offerings to clients.
“Our commitment to broaden our capital markets through sustainable investment remains top of our agenda. The introduction of this offering to our clients puts data in their hands to fully assess the ESG of their investment decisions. This will allow for a seamless flow ESG data, enabling informed decision-making for investors, analysts, and other stakeholders while increasing access to sustainable capital,” says Mark Randall, director of information services at the JSE.
As the largest ESG Data and ESG Ratings provider in Africa, Risk Insights has been the pioneering force in the field of data science and sustainability on the continent. Risk Insights has been at the forefront of revolutionising the ESG landscape, applying Artificial Intelligence and Machine Learning’s advanced techniques to data and model building.
In 2019 it launched its first machine learning and artificial intelligence ESG rating disclosure platform in Africa, now known as ESG GPSTM. Developed using industry best practices and adapted to market realities, ESG GPS is specifically designed for listed companies in Africa. With this platform, RI has rated all listed companies across nine major African stock exchanges. Innovation is in Risk Insights’ DNA as the company continues its journey with clear commitment and motto of “Built for Africa by Africans” at the heart of everything the company does.
Andrey Bogdanov, CEO of Risk Insights, shares a statement by Jochen Zeitz: “Sustainability is no longer about doing less harm. It’s about doing more good.” He continues, “Collaboration with the Johannesburg Stock Exchange represents our commitment to South Africa and a more sustainable Africa. This solution will enable capital market participants to do more good by making better informed ESG decisions for their companies.”
This collaboration comes at a critical time as global demand for ESG disclosure and climate change is intensifying. The collaboration between JSE and RI seeks to enhance the ESG disclosure landscape for companies across the country and continent, enabling businesses to attract sustainable investment and improve governance and social impact.
“The evolution of data from an internal asset to a traded commodity reflects a broader shift in the way businesses and markets operate. For companies prepared to embrace this new paradigm, the opportunities are vast, not just for immediate revenue generation but for long-term strategic advantage in a rapidly changing economic and sustainability landscape,” concludes Randall.