Green Index for Companies Launched by BSE

by Kathy Jones on  February 24, 2012 at 9:36 PM General Health News   - G J E 4
A new sectoral index called BSE-GREENEX has been launched by the Bombay Stock Exchange (BSE) to measure the performance of companies in terms of carbon emissions and promote green investments.
 Green Index for Companies Launched by BSE
Green Index for Companies Launched by BSE

The index includes top 20 companies based on green house gas numbers, free float market capitalization and turnover.

"It is based upon purely quantitative and objective performance signals to assess carbon performance," BSE said in a statement.

"In keeping with BSE's efforts to create fund friendly indices, it is the 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," it added.

The index 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 or policy shifts.

"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," said Minister of Corporate Affairs M. Veerappa Moily after inaugurating the index.

According to Madhu Kannan, managing director and chief executive officer of BSE, 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," said Kannan.

Source: IANS

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
User Avatar
* Your comment can be maximum of 2500 characters
Notify me when reply is posted I agree to the terms and conditions

You May Also Like

View All