4 March 2008
A New Signatory to the Principles for Responsible Investment
With issues around global warming achieving ever increasing media coverage internationally, investors are having to look at means to incorporate environmental, social and governance (ESG) issues in investment decisions and strategies. One of the initiatives established to facilitate this process is the United Nations ‘Principles for Responsible Investment.’ (PRI)
For this reason, of Corporate Governance Accreditation (Pty) Ltd. (CGA) – SA’s only formal governance certification company – is now the first governance certification company to become a signatory to the United Nations ‘Principles for Responsible Investment.’ Says Jonathan Lewis, MD of CGA, “Becoming a signatory to the PRI is not only a public confirmation, but also an affirmation of our long-standing commitment to the ESG principles enshrined in the PRI. We are excited about becoming part of a group of like-minded investors and related institutions and know that we can add value to the process through our own experience and expertise.”
Signatories to the PRI commit to the integration of ESG issues into investment decisions and policies and undertake to report and promote actions taken by them in this area. Recently Investec Asset Managers were in the news for becoming a signatory to the PRI. The PIC, with some R800 billion under management, actively promotes and encourages adherence to the PRI. .
Says Lewis:
“The principles we have and continue to pursue are completely aligned to those enshrined with the PRI. We have always recognised ESG issues as being integral to a company’s success and sustainability. These same principles are already incorporated in our certification process which saw the first JSE listed companies being certified during the third quarter of 2007”
PRI Investor signatories represent capital in excess of $4 000bn which is not only a significant number, but illustrates the level of commitment on a global scale.
Ultimately, says Lewis, the intention is for CGA to become part of the benchmarking of acceptable standards for corporate governance worldwide.
Wednesday 29 August 2007
Altron and Bytes sets governance benchmark for listed companies in SA
Today, at a function held by Corporate Governance Accreditation of South Africa (CGA) and the Altron Group of companies, the first benchmarking certification results with awards was handed over to Allied Electronics Corporation Ltd (Altron) and Bytes Technology Group Ltd. (Bytes).
“This historic occasion sees the launch of a governance benchmark for listed companies and marks the culmination of the efforts of the board and shareholders of CGA over a seven year period,” said Jonathan Lewis, Managing Director of CGA.
He said the boards of Altron and Bytes need to be congratulated not only for achieving outstanding results for a first-time certification, but also for being innovators and industry leaders in setting the bar for governance standards.
Altron obtained a result of 79% placing them at the top end of the Silver Awards scale whilst Bytes achieved an excellent result of 67% thereby also attaining Silver status. Lewis said that companies that achieve a score of between 50% and 65% receive a Bronze Award, between 65% and 80%, a Silver Award, and a score above 80% receives a Gold Award.
The CGA-led concept has now been fully embraced by the Institute of Directors as well as the potential to build on the CGA certification process in order to develop a governance index.
“It is a world first combination of an internal tool coupled with an external verification process that enables a board and its office bearers to be fully informed of their responsibilities and duties. It also provides a transparent window to all shareholders and is a unique platform for full corporate governance accreditation,” said Lewis.
The process allows organisations to conform to best practice standards at their own pace and then to receive the appropriate recognition and reward for their efforts.
