BSE proposes index for climate change

Leading bourse BSE on Thursday beganthe consultation process for launch of a carbon index, a move that will helpinvestors mitigate their exposure to financial risks associated with the climatechange.

The exchange on Thursday released a concept note on its'Carbon Indexing Project', marking the first-ever attempt to create a CarbonIndex in an emerging economy.

The objective of this initiative is that it will help tobuild up expertise in analysing the risks and opportunities face associatedwith climate change, and with carbon regulation. This will also increase theinformation available to Indian companies and investors about these topics

"The idea is that such an index will be used by investorsto mitigate their exposure to financial risks associated with climatechange," the BSE said in a statement.

The concept note was jointly unveiled by Gregory Barker, theBritish Minister of State for Climate Change and Energy and Sachin Ahir,Maharashtra's Minister of State for Environment.

Speaking at the launch, Barker said, "We all, developedand developing countries have a responsibility for tackling carbon emissions,although coming to the issue from different starting points. But to developthis as an agenda compatible with growth we must understand what business cando."

"A Carbon Index will help to understand how growth canhappen on a lower carbon trajectory and the role that business can play. Theindex will highlight opportunities to companies as to how to improve both theirfinancial and environmental performance," he added.