BSE launches Carbon Indexing Project

Posted on November 19, 2011 by

The Bombay Stock Exchange (BSE) has launched the first ever ‘Carbon Indexing Project’ in collaboration with the UK government recently. This project will use data from the recently released ‘Carbon Disclosure Project (CDP) Report 2011 – India 200’ to rate BSE-listed companies on the basis of their carbon emissions and compare it to their performance on the stock exchange. Similar measures is also being envisaged for the Standard and Poor indexing.

This project will build expertise in analysing risks and opportunities associated with climate change and laws and regulations related to carbon. The project will also create a database that would enable investors to compare the environmental and fiscal performance of companies. The linkage of carbon and sustainability performance of the companies to their fiscal performance needs to be clearly established to create a businesss case for sustainability. This project will create the requisite database for achieving thi  purpose.

Barker was said as quoting “A carbon index will highlight opportunities to companies on improving both their financial and environmental performance. Investors today are keen to understand the carbon risks of their investments. That will be key in driving interest in this Index. There is an increasing risk of being dependent on fossil fuels.”

Posted in: Carbon Markets