The Bombay Stock Exchange has launched an environmentally-friendly equity index that will enable investors take more informed decisions in the green theme of India.

Corporate Affairs Minister Veerappa Moily inaugurated the new initiative by striking the gong on the BSE here Wednesday.

The BSE, in association with gTrade (supported by GIZ promoted by Germany, Observer Research Foundation and IIM, Ahmedabad), has constructed the BSE-Greenex to promote green investing with emphasis on financial performance and long-term viability of companies. It is based upon purely quantitative and objective performance signals to assess carbon performance.

The index includes top 20 companies based on greenhouse gas numbers, free float market capitalization and revenue. It includes Tata Steel, SBI, L&T, ICICI Bank, Tata Motors, Sun Pharmaceuticals, NTPC, Dr. Reddy’s Labs, HDFC, Bharat Heavy Electricals, GAIL, Hindustan Unilever, Cipla, Sterlite Industries, Tata Power, Ambuja Cements, Lupin, DLF, Glaxosmithkline and Reliance Infrastructure.

“The companies and investors in developing countries like India need to recognize the value created by corporations through the efficient and sensible use of energy. The Ministry of Corporate Affairs has been very active in this regard. I hope the BSE-Greenex lists companies that are able to marry financial performance and carbon efficiency. I feel that this index’s objectivity will be its strength and the differentiator,” Moily said.