The most renowned and Asia’s oldest stock exchange Bombay Stock Exchange (BSE) is all set to launch a new index on Wednesday (February 22, 2012) named ‘BSE GREENEX’, which showcases the measurements & performances of companies measured in terms of carbon emissions.

What is ‘BSE GREENEX’?

The new index ‘BSE GREENEX’ is completely developed by BSE in collaboration with India’s one of the best B-School IIM-A (Indian Institute of Management, Ahmadabad), BSE GREENEX will track the companies ideology on environment and counts the carbon foot print left by each company and will allow the investors to make decisions on the companies in energy intensive sectors amid others.

The project coordinator at IIM-A Mr. Amit Garg while talking to the media says “A model has been created in collaboration with BSE, where BSE-100 companies were evaluated on the basis of green house emissions in the last four financial years from 2007-08 till 2010-11.”

All the participating companies will be tested with different combinations of carbon emission intensity, market capitalization, and turnover and almost all the top ranking companies from the sectors like steel, power and cement will be included in the new index ‘BSE-GREENEX’ and at the beginning the list will have less than 30 companies.

As if now, Bombay Stock Exchange has 13 sectoral indices which tracks the key sectors like banking, metal, oil&gas, power, real estate, automobiles, healthcare, and many more. Apart from these 13 sectoral indices BSE also have market capitalization based indices like BSE Mid cap, BSE Small cap, BSE 100, BSE 200 and BSE 500.

BSE GREENEX will be the second theme based index, the earlier one is setup at Shariah index, which also tracks the companies which have minimum carbon footprint.