BSE-GREENEX Carbon Index launched for green sector

Mumbai: India’s first-ever live Carbon Index BSE-GREENEX was launched at the hands of Dr. M Veerappa Moily, Minister of Corporate Affairs, GoI at BSE today.

BSE Ltd. (Formerly Bombay Stock Exchange Ltd.) in association with gTrade (supported by GIZ promoted by Federal Republic of Germany, Observer Research Foundation and IIM Ahmedabad) has constructed BSE-GREENEX – designed specifically to promote green investing, with emphasis on financial performance and long term viability of companies. It is based upon purely quantitative and objective performance signals to assess carbon performance. BSE-GREENEX includes top 20 companies based on Green House Gas Numbers, Free Float Market capitalisation & Turnover.

This is BSE’s third Index which is calculated based on the capping methodology. This Index will be helpful to Asset Managers for creation of various products, to help investors to invest in the green theme of India. BSE-GREENEX is expected to have a feedback effect on companies’ reputation. It will help the Government to gauge policy implementation and acceptance with regard to energy usage and efficiency measures, as the market follows an efficient signalling mechanism which adjusts positively or negatively to any news/policy shifts.

At the launch ceremony at BSE, Moily said, “It is my belief that companies and investors in developing countries like India, need to recognize the value created by corporations through the efficient and sensible use of energy. The Ministry of Corporate Affairs has been very active in this regard.”

Madhu Kannan, MD & CEO, BSE, stated, “India is in a unique position to create a low-carbon green economy. So far India has focused on the fiscal aspect of economic growth. Now, it’s time we think about the environmental aspects of growth also. I am delighted that BSE in keeping with its tradition of innovation is today launching a carbon index – the ‘BSE Greenex’.”