The Bombay Stock Exchange (BSE) on Wednesday will launch a new index called 'BSE-GREENEX' measuring the performance of companies in terms of carbon emissions, an official of IIM, which co-developed the model, said.
"A model has been created in collaboration with the BSE, where BSE-100 companies were evaluated on the basis of greenhouse emissions in the last four financial years from 2007-08 till 2010-11," Project Coordinator at IIM-A Amit Garg said.
"The companies were tested in different combinations of carbon emission intensity, market capitalisation, and turnover," he said, adding that the index will have fair representation of firms from virtually all the sectors.
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, Garg said.
"During the dry runs, the BSE-GREENEX has performed better than the Sensex," he said.
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
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