SBFN Member Since:
2013
Member Organisations
Banking Association South Africa (BASA)
South Africa Prudential Authority (operates within the administration of the South African Reserve Bank)
South African National Treasury
Progress Against sub Pillars
Framework Documents
| Country | Policies/ Principles/ Guidelines | Year | Issuer |
|---|---|---|---|
| South Africa | 2022 | South Africa National Treasury | |
| South Africa | 2020 | Johannesburg Stock Exchange (JSE) | |
| South Africa | 2020 | South Africa National Treasury | |
| South Africa | 2019 | Financial Sector Conduct Authority – FSCA | |
| South Africa | 2020 | South African Reserve Bank | |
| South Africa | Primer on Embedding Environmental Scenario Analysis into Routine Financial Decision Making | 2018 | South Africa National Treasury |
| South Africa | 2017 | Johannesburg Securities Exchange (JSE) | |
| South Africa | 2016 | Institute of Directors in Southern Africa – IoDSA | |
| South Africa | 2015 | Banking Association South Africa |
Pillar 1 - ESG Integration - Strategic Alignment
National Framework
P 1.1 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?
Yes
Source Reference Detail
The Technical paper includes several recommendations on sustainable initiatives for the financial sector to undertake. These recommendations are being developed by technical working groups of the Climate Risk Forum. Beside the recommendations there a sector specific recommendations for the broader sustainability area. The Banking Association South Africa Principles for Managing Environmental and Social Risk are a set of voluntary principles for the banking industry
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
page 23 Section 5
P 1.2 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?
Yes
Source Reference Detail
–
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Section 1, 6, 7, 8, 9, 10
Pillar 1 - ESG Integration - Strategic Alignment
Alignment with International Goals & Standards
P 1.3 – Does the Framework make reference to international sustainable development frameworks or goals?
Yes
Source Reference Detail
–
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
–
P 1.4 – Does the Framework make reference to established international ESG risk management standards and principles for FIs??
Yes
Source Reference Detail
The Technical paper includes several recommendations on sustainable initiatives for the financial sector to undertake. These recommendations are being developed by technical working groups of the Climate Risk Forum. Beside the recommendations there a sector specific recommendations for the broader sustainability area. The Banking Association South Africa Principles for Managing Environmental and Social Risk are a set of voluntary principles for the banking industry
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
–
Pillar 1 - ESG Integration - Strategic Alignment
Alignment with national goals & strategies
P 1.5 – Does the Framework make reference to specific national development objectives, plans, policies, goals, or targets?
Yes
Source Reference Detail
–
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Page 6, 8, 16
P 1.6 – Does any cooperation exist between agencies or between the regulator and industry association with respect to policy design and/or implementation related to ESG integration?
Yes
Source Reference Detail
–
Source Reference Document
Principles for managing Environmental and Social risks (BASA, 2015)Sustainable Finance Initiative
Source Reference Description
Sections 3.2. and 3.4
P 1.7 – Does any inter-agency data sharing currently exist related to ESG integration by FIs?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Overall Approach & Strategy
P 1.8 – Does the Framework provide guidance on the role of the regulator or industry association with regard to assessing and managing ESG risk and performance in the financial sector?
Yes
Source Reference Detail
–
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Page 28 Section 5
P 1.9 – Has the regulator or industry association undertaken market assessment to identify systemic ESG risks through analysis of the portfolios of supervised entities/members and published the results?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Technical Guidance
P 1.10 – Does the Framework provide technical guidance or tools to support implementation of ESG risk and performance management by the financial sector?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Supervisory Activities & incentives
P 1.11 – Is the implementation of the Framework regularly monitored and/or information regularly collected from FIs by the regulator and/or industry association?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 1.12 – Does the regulator or industry association provide any financial or non-financial incentives for FIs to manage ESG performance as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 1.13 – Does the regulator or industry association apply any disincentives/penalties for non-compliance by FIs in terms of expectations from the regulator and/or industry association related to ESG risk management as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Tracking & Aggregated Disclosure
P 1.14 – Has the regulator or industry association established a data collection approach and database to track or regularly publish data related to ESG integration by FIs as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 1 - ESG Integration - Expectations of FI Actions
Strategy & Governance
P 1.15 – Does the Framework require/ask the FI’s board of directors (or highest governing body) to approve an ESRM and/or ESG integration strategy, and to supervise its implementation?
Yes
Source Reference Detail
–
Source Reference Document
King IV Code On Corporate Governance (Institute of Directors in Southern Africa – IoDSA, 2016)
Source Reference Description
Principle 3 – 14.d & Principle 8 – 43.e & Principle 10 -78, 98.
Pillar 1 - ESG Integration - Expectations of FI Actions
Organizational Structure & Capacity Building
P 1.16 – Does the Framework require/ask FIs to allocate resources/budget commensurate with portfolio ESG risks and define roles and responsibilities for ESG integration within the organization?
Yes
Source Reference Detail
–
Source Reference Document
King IV Code On Corporate Governance (Institute of Directors in Southern Africa – IoDSA, 2016)
Source Reference Description
Page 39, Principle 8
P 1.17 – Does the Framework require/ask FIs to develop and maintain the ESG expertise and capacity of staff commensurate with portfolio ESG risks through regular training and learning?
Yes
Source Reference Detail
–
Source Reference Document
Principles for managing Environmental and Social risks (BASA, 2015)
Source Reference Description
Section 3.5
P 1.18 – Does the Framework require/ask FIs to create incentives for managers to reduce the ESG risk-level of the portfolio over a specified timeframe?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 1 - ESG Integration - Expectations of FI Actions
Policies & Procedures
P 1.19 – Does the Framework require/ask FIs to develop policies and procedures to identify, classify, measure, monitor, and manage ESG risks and performance throughout the financing cycle at the client level and/or the transaction/project level?
Yes
Source Reference Detail
–
Source Reference Document
King IV Code On Corporate Governance (Institute of Directors in Southern Africa – IoDSA, 2016)
Source Reference Description
Principle 13 – 25 Principle 14 – 29.b
P 1.20 – Does the Framework require/ask FIs to undertake a regular review and monitoring of ESG risk exposure at aggregate portfolio level?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 1.21 – Does the Framework require/ask FIs to establish and maintain an external inquiry/complaints/grievance mechanism for interested and affected stakeholders in relation to ESG practices?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 1 - ESG Integration - Expectations of FI Actions
Tracking, Reporting & Disclosure
P 1.22 – Does the Framework require/ask FIs to report ESG risks and performance to the regulator or industry association?
Yes
Source Reference Detail
The Financial Sector Conduct Authority (FSCA) published Guidance Notice 1 of 2019 (in June 2019) on “Sustainability of investments and assets in the context of a retirement fund’s investment policy statement”, which sets out guidance for pension funds to report to the regulator on compliance with Regulation 28 of the Pension Funds Act. See section 6.1 of Guidance Notice 1 of 2019, which can be downloaded from the following link.
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Section 6.12
P 1.23 – Does the Framework require/ask FIs to report on ESG integration publicly?
Yes
Source Reference Detail
In addition, FSCA Guidance Notice 1 of 2019 encourages retirement funds to adopt sustainable reporting practices in their communications with members – See section 6.2. The JSE Sustainability Segment is more suitable reference for Pillar 3.
Source Reference Document
King IV Code On Corporate Governance (Institute of Directors in Southern Africa – IoDSA, 2016
Source Reference Description
Page 38
P 1.24 – Does the Framework require/ask FIs to track credit risk (e.g. loan defaults) and/or financial returns in relation to ESG risk level?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Strategic Alignment
National Framework
P 2.25 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?
Yes
Source Reference Detail
In addition, the BASA 2015 Principles for Managing E&S Risk mention climate change (section 3.2), and reference the Equator Principles (Section 4.2.4 as part of lending practices and E&S assessment) which now cover elements of climate risk as part of EP IV. This ESG Integration foundation will provide a basis for further development of climate risk management approaches for FIs, as indicated in the Technical Paper, Section 5 on Banking, and in particular Section 5.10 on “Banking Recommendations “. Section 5.10 (Banking Specific Recommendations on climate risk for regulators and FIs, including incorporating climate risk in BASA Principles for Managing E&S Risk; King Code IV for Corporate Governance reference to ESG and climate risk (Foreword, and Principle 3).
Source Reference Document
Principles for managing Environmental and Social risks (BASA, 2015)King IV Code On Corporate Governance (Institute of Directors in Southern Africa – IoDSA, 2016Technical Paper on Financing a Sustainable Economy
Source Reference Description
Section 3.2 Section 4.2.4 Section 5.10(2) Principle 3(3) Page 29 Section 5
P 2.26 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?
Yes
Source Reference Detail
References to climate risk in other parts of the financial sector, for example Section 6.8 Pension Sector Recommendations climate risk elements; Section 10.7.1 and 10.10 Insurance Sector Requirements and climate risk elements. Johannesburg Stock Exchange (JSE) is a member of UNSSE, requires capital market disclosure in alignment with King Code IV, which has elements of climate risk. (Section 9.3, page 39).
Source Reference Document
King IV Code On Corporate Governance (Institute of Directors in Southern Africa – IoDSA, 2016Technical Paper on Financing a Sustainable Economy
Source Reference Description
References to climate risk in other parts of the financial sector, for example Section 6.8 Pension Sector Recommendations climate risk elements; Section 10.7.1 and 10.10 Insurance Sector Requirements and climate risk elements. Johannesburg Stock Exchange (JSE) is a member of UNSSE, requires capital market disclosure in alignment with King Code IV, which has elements of climate risk. (Section 9.3, page 39).
Pillar 2 - Climate Risk Management - Strategic Alignment
Alignment with International Goals & Standards
P 2.27 – Does the Framework make reference to international agreements or frameworks to address climate?
Yes
Source Reference Detail
–
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
–
P 2.28 – Does the Framework recognize or align with established regional or international good practice for climate risk management and disclosure by FIs?
Yes
Source Reference Detail
Reference to TCFD (Page 3) and NGFS (Page 7).
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Page 3, 7
Pillar 2 - Climate Risk Management - Strategic Alignment
Alignment with National Goals & Strategies
P 2.29 – Has the regulator or industry association aligned the Framework with national goals to address climate change in line with the country’s Nationally Determined Contributions (NDCs) to the Paris Agreement?
Yes
Source Reference Detail
–
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Page 10 NDCs
P 2.30 – Does any cooperation exist between agencies, or between government and industry association, with respect to policy design or implementation related to climate risk management?
Yes
Source Reference Detail
Climate Risk Forum chaired by South Africa National Treasury. Working Groups for regulatory-industry collaboration on climate risk
Source Reference Document
Sustainable Finance Initiatve
Source Reference Description
–
P 2.31 – Does any inter-agency data sharing currently exist related to climate risk management by FIs?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Overall Approach & Strategy
P 2.32 – Has the regulator or industry association undertaken research on historical impacts to the economy and financial sector from climate change, and/or future expected impacts resulting from physical and transition climate risks?
Yes
Source Reference Detail
Climate Risk Forum chaired by South Africa National Treasury. Working Groups for regulatory-industry collaboration on climate risk: As part of Climate Risk Forum Climate Scenario Analysis Working Group, the Business Unity South Africa’s (BUSA) Just Transition Task Group (of which BASA is a member), is Researching the costs and impacts of the transition and in 2021 released “Just Transition and Climate Pathways Study – Decarbonising South Africa’s Power System”.
Source Reference Document
Sustainable Finance Initiatve
Source Reference Description
–
P 2.33 -Does the Framework identify key sources of GHG emissions – such as in particular sectors – as priorities in the proactive management of climate risks by the financial sector?
Yes
Source Reference Detail
Reference to electricity sector GHG emissions (Page 10-11). Climate Risk Forum chaired by South Africa National Treasury. Working Groups for regulatory-industry collaboration on climate risk: As part of Climate Risk Forum Climate Scenario Analysis Working Group, the Business Unity South Africa’s (BUSA) Just Transition Task Group (of which BASA is a member), is Researching the costs and impacts of the transition and in 2021 released “Just Transition and Climate Pathways Study – Decarbonising South Africa’s Power System”.
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Page 10 – 11
P 2.34 – Does the Framework incorporate the conservation/restoration of natural carbon sinks (such as oceans, forests, mangroves, grasslands, and soils) as an important part of reducing climate change risks? (e.g., through guidelines, scenario analysis, targets, or incentives for FIs)
Yes
Source Reference Detail
Reference to financial incentives for biodiversity credits, which has co-benefit of maintaining natural carbon sinks (Section 2.7, page 12).
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Page 12 Section 2.7
P 2.35 – Has the regulator or industry association developed an internal strategy to address climate risk, and/or embedded climate risk management into its governance, organizational structures, and budget as part of the Framework?
Yes
Source Reference Detail
Executive summary recommendation (Section 1.5 pages 5-6) represents the framework for a regulatory strategy on climate risk, including recommendations b) through h) related to planned regulatory approaches and strategies on climate risk. SARB Prudential Authority 2020 survey of awareness, understanding, and levels of uptake and implementation of the TCFD among insurers and banks.
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Page 5 – 6 Section 1.5
P 2.36 – Has the regulator or industry association undertaken any activities to expand and deepen analytical understanding of national and/or cross-border physical and transition climate risks, and to raise awareness as to how these risks may transmit to, and impact, the financial sector?
Yes
Source Reference Detail
SARB Prudential Authority 2020 survey of awareness, understanding, and levels of uptake and implementation of the TCFD among insurers and banks.
Climate Risk Forum chaired by South Africa National Treasury. Working Groups for regulatory-industry collaboration on climate risk: As part of Climate Risk Forum Climate Scenario Analysis Working Group, the Business Unity South Africa’s (BUSA) Just Transition Task Group (of which BASA is a member), is Researching the costs and impacts of the transition and in 2021 released “Just Transition and Climate Pathways Study – Decarbonising South Africa’s Power System”.
Source Reference Document
Technical Paper on Financing a Sustainable EconomySustainable Finance Initiatve
Source Reference Description
Page 6 Section 1
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Technical Guidance
P 2.37 – Has the regulator or industry association developed risk assessment approaches, methodologies, or tools to understand and assess the financial sector’s exposure to climate risk as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Supervisory Activities & Incentives
P 2.38 – As part of the Framework, has the regulator clarified supervisory expectations with regard to climate risk management by FIs, including consideration of international good practices?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.39 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.40 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.41 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Tracking & Aggregated Disclosure
P 2.42 – Does the regulator or industry association regularly collect and/or report market-level and/or FI-level data on climate-related financial sector risks as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Strategy & Governance
P 2.43 – Does the Framework require/ask FIs to establish a strategy for climate risk management with responsibility at the board of director level (or highest governing body)?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Organizational Structure & Capacity Building
P 2.44 – Does the Framework require/ask FIs to define the roles and responsibilities and related capacities of the FI’s senior management and operational staff in identifying, assessing, and managing climate-related financial risks and opportunities?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Policies & Procedures
P 2.45 – Does the Framework require/ask FIs to expand existing risk management processes to identify, measure, monitor, and manage/mitigate financial risks from climate change?
Yes
Source Reference Detail
Executive Summary Recommendations for climate risk b), c), e) and f) (Page 6) and related sections of main report; Section 5.10 (Banking Specific Recommendations) on climate risk for regulators and FIs, including incorporating climate risk in BASA Principles for Managing E&S Risk.
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Page 6 Executive Summary
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Tracking, reporting & disclosure
P 2.46 – Does the Framework require/ask FIs to report on their overall approaches to climate risk management in line with international good practices (e.g., TCFD), or establish a timeline by which FIs should begin to align their reporting with such practices?
Yes
Source Reference Detail
Executive Summary Recommendations for climate risk b), c), e) and f) (Page 6) and related sections of main report; Section 5.10 (Banking Specific Recommendations) on climate risk for regulators and FIs, including incorporating climate risk in BASA Principles for Managing E&S Risk. In 2020, the SARB Prudential Authority undertook a survey of awareness, understanding, and levels of uptake and implementation of the TCFD among insurers and banks.
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
Executive Summary Recommendations for climate risk b), c), e) and f) (Page 6) and related sections of main report; Section 5.10 (Banking Specific Recommendations) on climate risk for regulators and FIs, including incorporating climate risk in BASA Principles for Managing E&S Risk. In 2020, the SARB Prudential Authority undertook a survey of awareness, understanding, and levels of uptake and implementation of the TCFD among insurers and banks.
P 2.47 – Does the Framework require/ask FIs to identify, measure, and report on exposure to sectors which are vulnerable to transition risk and physical risk?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.48 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce portfolio greenhouse gas (GHG) emissions on a regular basis?
Yes
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.49 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce exposure to climate change risks at the portfolio level on a regular basis?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Strategic Alignment
National Framework
P 3.50 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy?
Yes
Source Reference Detail
Confirmed
Source Reference Document
Technical Paper on Financing a Sustainable EconomyPrinciples for managing Environmental and Social risks (BASA, 2015)
Source Reference Description
(1) Page 29 Section 5(2) Page 2 – 4 Section 4
P 3.51 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy
Yes
Source Reference Detail
Confirmed
Source Reference Document
Technical Paper on Financing a Sustainable EconomyJSE Debt Listings Requirements for the Green Segment
Source Reference Description
(1) Section 1, 6, 7, 8, 9 10
Pillar 3 - Financing Sustainability - Strategic Alignment
Alignment with International Goals & Standards
P 3.52 – Has the regulator or industry association developed a strategy, regulations, or set of frameworks for stimulating the allocation of capital to sustainable assets, projects, and related sectors in line with global goals, such as the Sustainable Development Goals (SDGs)?
Yes
Source Reference Detail
–
Source Reference Document
Technical Paper on Financing a Sustainable EconomySustainable Finance Initiative
Source Reference Description
–
P 3.53 – Does the Framework recognize and/or align with existing standards, voluntary principles, or market good practices related to sustainable finance instruments?
Yes
Source Reference Detail
–
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Page 49 Section 6.10
Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions
Alignment with national goals & strategies
P 3.54 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 3.55 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?
Yes
Source Reference Detail
–
Source Reference Document
Sustainable Finance Initiatve
Source Reference Description
–
P 3.56 – Does any inter-agency data sharing currently exist related to stimulating and monitoring sustainable finance flows?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Strategic Alignment
Overall Approach & Strategy
P 3.57 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?
Yes
Source Reference Detail
–
Source Reference Document
Technical Paper on Financing a Sustainable Economy
Source Reference Description
–
Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions
Technical Guidance
P 3.58 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?
Yes
Source Reference Detail
–
Source Reference Document
South Africa Green Economy Accord (EDD, 2011)Green Finance Taxonomy
Source Reference Description
Page 6 -7 and form 11
P 3.59 – Does the Framework provide guidelines for extending green, social or sustainability-focused loans (excluding bonds)?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 3.60 – Does the Framework provide guidelines for issuance of green, social or sustainability bonds?
Yes
Source Reference Detail
–
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
–
P 3.61 – Does the Framework require/ask for external party verification to ensure the credibility of sustainability instruments?
Yes
Source Reference Detail
–
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Page 50 Section 6.12
Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -
Supervisory activities & incentives
P 3.62 – Does the regulator or industry association monitor information reported by FIs related to green/social/sustainability investment, lending, and other instruments to prevent greenwashing and social-washing?
Yes
Source Reference Detail
–
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Section 6.13
P 3.63 – Are there any financial or non-financial incentives for FIs to develop and grow green, social, or sustainability finance instruments?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -
Tracking & Aggregated Disclosure
P 3.64 – Does the regulator or industry association collect and/or publish data from FIs or other sources about allocation of capital to green/social/sustainability assets, projects, or sectors?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Expectations of FI Actions
Strategy & Governance
P 3.65 – Does the Framework require/ask FIs to establish a strategy, governance, or high-level targets, including at the Board of Directors level, for capital allocation to sustainable assets, projects, or sectors?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Expectations of FI Actions
Organizational Structure & Capacity Building
P 3.66 – Does the Framework require/ask FIs to define internal staff roles and responsibilities to encourage finance flows to green, social, and/or sustainability-focused investments?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 3.67 – Does the Framework require/ask FIs to develop and maintain internal staff capacity on green, social, or sustainability products through regular training and learning?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Expectations of FI Actions
Policies & Procedures
P 3.68 – Does the Framework require/ask FIs to put in place policies and procedures for defining, issuing, managing proceeds, tracking performance, and reporting on green, social or sustainability-focused products?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 3.69 – Does the Framework require/ask FIs to appoint an independent external reviewer to confirm that the FI’s internal framework meets the requirements of the recognized national framework and regulations, or aligns to international standards?
Yes
Source Reference Detail
Applicant issuers must appoint an independent sustainability advisor confirming to the JSE that the instrument or use of proceeds framework is classified as sustainable pursuant to the sustainability standards.
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Section 6.11
P 3.70 – Does the Framework require/ask that FIs create incentives for managers to increase sustainable loans or investments in the portfolio?
No
Source Reference Detail
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Expectations of FI Actions
Tracking, reporting & disclosure
P 3.71 – Does the Framework require/ask FIs to publish annual updates on the performance and impacts of the sustainability instruments in compliance with relevant national and/or international standards?
Yes
Source Reference Detail
–
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Page 50 Section 6.12
P 3.72 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 3.73 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?
Yes
Source Reference Detail
–
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Page 50 Section 6.12
P 3.74 – Does the Framework require/ask FIs to report to the regulator(s) or industry association(s) on green, social, and/or sustainability bonds or other positive impact investments?
Yes
Source Reference Detail
–
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Page 50 Section 6.12
P 3.75 – Does the Framework require/ask FIs to report publicly on their green, social and sustainability-focused finance activities and positive outcomes or impacts (i.e. not only to the regulator or shareholders)?
Yes
Source Reference Detail
Confirmed
Source Reference Document
JSE Debt Listings Requirements for the Green Segment
Source Reference Description
Page 50 Section 6.12
