BSE Launches Green Index From Feb. 22

The Bombay Stock Exchange (BSE) has launched a new index named 'BSE-GREENEX' from Wednesday, Feb. 22, 2012. It will measure the performance of companies in terms of carbon emissions

The index, developed by the BSE in collaboration with the premier B-school Indian Institute of Management, Ahmedabad (IIM-A), will enable investors take more informed investment decisions about companies in the energy-intensive sectors, among others.

The top-ranking companies from each sector like power, steel, cement have made it to the new index called BSE-GREENEX currently comprising less than 30 companies.

As part of this joint venture project, IIM-A evaluated the firms on carbon side based on the information put by them in the public domain (annual reports), while the BSE's main role was to detail on financial side of these companies and provide technical back-up for it.

Like the best performing stocks of companies make it to the Sensex-30 and the existing ones have to exit for non-performance, BSE-GREENEX, too, will witness firms coming and going.

The concept is all about screening companies doing good on the carbon side, as the concerns for climate change is growing among the stakeholders.