Bombay Stock Exchange on wednesday(22nd Feb) had launched a new index called ‘BSE-GREENEX’ which measures the performance of the companies interms of Carbon Emissions.
Key Points about BSE – Greenex
-The top-ranking companies from each sector like power, steel, cement have made it to the new index called BSE-GREENEX
-Greenex has 20 companies from the broader BSE 100 index that meet energy efficiency norms, allowing investors to derive benefit from the related cost savings.
-The Green index, developed by the BSE in collaboration with the premier B-school Indian Institute of Management, Ahmedabad (IIM-A)
-gTrade Carbon Ex Ratings Services Private Limited (gTrade) is a company based in India, which has co-developed the BSE-GREENEX Index in close association with the BSE.
-The company with the biggest weightage in this index is Tata Steel at 6.7 per cent. ICICI Bank, State Bank of India, HDFC, Sun Pharma and BHEL are the other major constituents of the Index
-The index will allow investors to track companies that invest in energy efficient practices
-Investors can invest in a mutual fund that invests in companies that form this Greenex.
-The Greenex will allow asset managers to create products to help investors put their money in green enterprises.