India's first carbon-efficient index from BSE
India's Bombay Stock Exchange (BSE) has launched a green index, in conjunction with gTrade Carbon Ex Ratings Services Private Limited (gTrade) based in India.
Noting the increasing opportunities available to business in tackling climate change the BSE said: “Owing to the high levels of risk faced by countries such as India, the immediate need to shift to a low carbon growth path is clear. In turn, low carbon strategies can only be implemented if the emissions landscape across businesses and its effect on sustainable growth are clearly defined and understood.”
The index will include the top 20 companies adjudged to fall within the index's terms of carbon emissions, free-float market capitalization and turnover and selected from the BSE-100 Index. Equal weighting is being given to energy efficiency and profitability - indicating a long-term sustainable strategy, says the BSE.
The BSE hopes mutual funds and exchange traded funds (ETFs) will use the index as a base for accessing green and sustainable companies in India. The Index has been benchmark-tested against old data since 2008 and will rebalanced on a bi-annual basis - end of March and September quarters. The September quarter review will be based on the fresh set of carbon emission numbers and the March quarter review will be based on the existing carbon emission numbers but latest financial data.