According to reports, the carbon footprints’ index that IIM-A has prepared for BSE-listed companies will be called ‘BSE-GREENEX’ and has a punch-line saying ‘Invest in Green India’. The index, which is meant to reveal the amount of carbon emission by the companies, will be launched by BSE on February 22 at BSE’s convention hall in Mumbai.
The idea of introducing the index is to enable investors to mitigate their financial risks connected to future climate change. IIM-A prepared the index for BSE-listed companies by analyzing their annual reports from the last four years. BSE will also launch a guideline for investors which will help them understand the relationship between the amount of carbon footprints that a company releases and the respective short-term and long-term impact on its investment and returns.
The index and the guidelines will be launched by minister of corporate affairs, Veerappa Moily in the presence of managing director and chief executive officer of BSE, Madhu Kannan.
“The guideline will reveal that there is room for control over the carbon emission of the companies,” said IIM-A faculty Amit Garg, who is closely involved in the development of the index.