Sunday, December 2, 2012

BSE launches carbon-based index CARBONEX

The Bombay Stock Exchange (BSE) has launched BSE Carbonex, the first carbon-based thematic index in the country, which takes a strategic view of organizational commitment to climate change mitigation.

This index has been launched with the aim of creating a benchmark, and increasing awareness about the risks posed by climate change.

It will enable investors to track performance of the constituent companies of BSE-100 index regarding their commitment to greenhouse gases emission reduction.

Constituents of BSE Carbonex are over or underweighted compared to the benchmark based on their performance in the assessment process. In every industry, companies that achieve the strongest assessment scores are favoured at the expense of those achieving poor results.

The British High Commission in India through the British Foreign & Commonwealth Office’s Prosperity Fund supported the development phase of  the index. ENDS Carbon, a specialist in environment, social and governance (ESG) ratings and benchmark services provider, has provided its expertise in assessing the companies with data sourced from the carbon disclosure project (CDP), a not-for-profit organisation which holds the largest and most continuous set of climate change data in the world.

The top 10 constituents in BSE Carbonex are ITC Ltd having 7.11 per cent market capitalisation followed by Reliance Industries (6.48 per cent market capitalisation), ICICI Bank (5.54 per cent), HDFC Bank (5.48 per cent), HDFC Ltd (5.30 per cent), Infosys (5.27 per cent), L&T (4.21 per cent), TCS (3.49 per cent), Hindustan Unilever (2.73 per cent) and ONGC (2.68 per cent).

Meanwhile, the carbon credit market worldwide is now reported to be worth about USD 188 billion, one of the only markets that continued to increase during the recent years of worldwide recession.


About BSE

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is Asia’s first Stock Exchange and one of India's leading exchange groups and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder-base which includes two leading global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners.

BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME). BSE also provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments. It operates one of the most respected capital market educational institutes in the country (the BSE Institute Ltd.). BSE also provides depository services through its Central Depository Services Ltd. (CDSL) arm.

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