Mumbai: The Bombay Stock Exchange launched India's first carbon efficient index on Wednesday, aiming to provide a benchmark for socially aware investors.
The 20-share BSE-GREENEX includes some of India's leading companies such as Tata Motors, Tata Steel, ICICI Bank, Larsen & Toubro, Housing Development Finance Company, Reliance Infrastructure, Dr Reddy's Laboratories and DLF.
"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 Ashishkumar Chauhan, BSE's deputy chief executive officer.
"There are many socially aware investors willing to pay a premium to invest in green companies in the hope of getting better returns," he added.
The index can be used to develop green financial products including mutual funds, exchange-traded funds and structured products, the BSE said.
Bureau Report
First Published: Wednesday, February 22, 2012, 15:11