South Africa: the Code for Responsible Investing in South Africa

Following consultation on a draft version last year, the Institute of Directors has published its Code for Responsible Investing in South Africa: see here (pdf). The Code complements the King Code and provides guidance, based on five principles, on how institutional investor should conduct investment activities and exercise rights in order to promote sound governance. A regard for sustainability issues is a prominent feature of the Code. Principle one, for example, provides that the institutional investor "should incorporate sustainability considerations, including ESG, into its investment analysis and investment activities as part of the delivery of superior risk-adjusted returns to the ultimate beneficiaries".