BSE launches first-ever live carbon index

The BSE-Greenex is the 25th dynamic index hosted on the exchange.

Written by Agencies | Mumbai | Published:February 22, 2012 4:39 pm

The country’s premier stock exchange BSE Ltd today launched ‘BSE Greenex’,the first environmental friendly equity index,which will enable investors take more informed decisions in the green theme of India.

Corporate Affairs Minister Veerappa Moily inaugurated the new initiative by striking the gong at the BSE here today.

BSE in association with gTrade (supported by GIZ promoted by 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 and turnover. These companies include Tata Steel,SBI,L&T,ICICI Bank,Tata Motors,Sun Pharmaceuticals,NTPC,Dr Reddy’s Labs,HDFC,Bharat Heavy Electricals,GAIL,Hindustan Unilever,Cipla,Sterlite Industries,Tata Power,Ambuja Cements,Lupin,DLF,Glaxosmithkline and Reliance Infrastructure.

“The companies and investors in developing countries like India,need to recognise 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. I hope the BSE-Greenex lists companies that are able to marry financial performance and carbon efficiency. I feel that this Index’s objectivity will be its strength and the differentiator,” Moily said.

It will also help the Government to gauge policy implementation and acceptance with regard to energy usage and efficiency measures,he said. BSE launches first ever live carbon index BSE-Greenex

The country’s premier stock exchange BSE Ltd today launched ‘BSE-Greenex’,the first environmental friendly equity index,which will enable investors take more informed decisions in the green theme of India.

Corporate Affairs Minister Veerappa Moily inaugurated the new initiative by striking the gong at the BSE here today.

BSE in association with gTrade (supported by GIZ promoted by 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 and turnover. These companies include Tata Steel,SBI,L&T,ICICI Bank,Tata Motors,Sun Pharmaceuticals,NTPC,Dr Reddy’s Labs,HDFC,Bharat Heavy Electricals,GAIL,Hindustan Unilever,Cipla,Sterlite Industries,Tata Power,Ambuja Cements,Lupin,DLF,Glaxosmithkline and Reliance Infrastructure.

“The companies and investors in developing countries like India,need to recognise 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. I hope the BSE-Greenex lists companies that are able to marry financial performance and carbon efficiency. I feel that this Index’s objectivity will be its strength and the differentiator,” Moily said.

It will also help the Government to gauge policy implementation and acceptance with regard to energy usage and efficiency measures,he said. “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,its 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. BSE will continue to contribute in full measure towards the Ministry of Corporate Affairs efforts of green and sustainable development in India Inc,” BSE Managing director and CEO Madhu Kannan said.

The BSE-Greenex is the 25th dynamic index hosted on the exchange,is also a first of its kind benchmark index,which assess the carbon performance of stocks based on purely quantitative performance based criteria.

Over the years sizeable funds and finances will increasingly find their way into green businesses. The creation of this index will enable such investment flows,BSE deputy chief executive director,Ashishkumar Chauhan said.

It is the first environmental friendly equity index to be publicly disseminated on a real-time basis,providing a new tool for use by ‘green’ retail and institutional investors to track the performance of India’s largest and most liquid,efficient stocks. The index can be licensed for the development of green financial products including mutual funds,ETFs and structured products,the BSE said.

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