Maharashtra and UK Environment Ministers Launch Concept Note for BSE Carbon Index
Rt. Hon. Gregory Barker, UK Minister of State for Climate Change & Energy and Hon. Shri. Sachin Ahir, Maharashtra Minister of State for Environment, jointly unveiled a concept note for BSE Carbon Index November 17 at BSE.
The BSE Ltd. Carbon Indexing project is the first ever attempt to create a Carbon Index in an emerging economy. The objective of this initiative is that it will help to build up expertise in analysing the risks and opportunities face associated with climate change, and with carbon regulation. This will also increase the information available to Indian companies and investors about these topics. The idea is that such an index will be used by investors to mitigate their exposure to financial risks associated with climate change.
Speaking at the launch, Rt. Hon Greg Barker, UK Minister of State for Climate Change & Energy, said, “We all, developed and developing countries have a responsibility for tackling carbon emissions, although coming to the issue from different starting points. But to develop this as an agenda compatible with growth we must understand what business can do. A Carbon Index will help to understand how growth can happen on a lower carbon trajectory and the role that business can play. A Carbon Index will highlight opportunities to companies as to how to improve both their financial and environmental performance. Investors today are keen to look below the surface and understand the carbon risks of their investments. That will be key in driving interest in this Index”.
Hon. Shri. Sachin Ahir, Maharashtra Minister of State for Environment added, “Today, more than ever before, it is important to minimise carbon footprint both on an individual and corporate level. Companies will need to respond to public demand on how they are going to deal with their carbon footprint. Many companies want to play an active part in reducing their carbon footprint but need help in tackling the issue. The emphasis of the Carbon Index is the creation of a high level of environmental awareness and knowledge within the participating companies to support the effective use of energy and resources. This will lead to the adoption of new technologies and innovative methods which will introduce cleaner and more efficient processes.”
Speaking on the significance of a Carbon Index, Shri. Madhu Kannan, MD & CEO, BSE Ltd. said, “The choices that Indian businesses make will shape the outlook of the country; if Indian corporate chooses to incorporate environmental sustainability into their business, although immediate costs may be higher in some instances, they will sustain their business economically. I believe this can be done through innovation and creating a virtuous cycle between all fabrics of the society –government, industry, and financing community. From an Exchange perspective, getting industry to put value on some of these elements is very important.”