And now, BSE launches Greenex | business | Hindustan Times
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And now, BSE launches Greenex

business Updated: Feb 22, 2012 20:09 IST
HT Correspondent

The Bombay Stock Exchange (BSE) launched India’s first environmental friendly equity index ‘BSE-Greenex’ on Wednesday, which will help investors to track the performance companies, which are efficient in energy consumption and are environment-friendly.

“BSE-Greenex is designed specifically to promote green investing, with emphasis on financial performance and long-term viability of companies,” said Madhu Kannan, managing director and CEO, BSE.

BSE-Greenex includes top 20 companies based on green-house gas numbers, free float market capitalisation and turnover. Major names in the index are Tata Steel, State Bank of India, L&T, ICICI Bank, Tata Motors, Sun Pharmaceuticals, NTPC, Hindustan Unilever and Cipla.

“Companies and investors in developing countries like India, need to recognise the value created by corporations through the efficient and sensible use of energy,” said M Veerappa Moily, minister of corporate affairs at the launch ceremony.

“The cost of carbon-based energy production is increasing, and if companies become more efficient and reduce energy costs, there is a chance of higher profitability,” said Ashish Kumar Chauhan, deputy chief executive officer, BSE. “There are many socially aware investors willing to pay a premium to invest in green companies in the hope of getting better returns.”

This index will also be helpful to asset managers for creation of various products, to help investors to invest in the green theme of India.

Chauhan said that over the years sizeable funds and finances would increasingly find their way into green businesses and creation of this index will enable such investment flows.