• Prashanth Chikatla
• K. KrishnaChaitanya

This study conducts a comparative evaluation of the performance of Bombay Stock Exchange (BSE) sustainability indices (Greenex, Carbonex, BSE 100 ESG) and traditional indices (Sensex, Nifty50, BSE 100) to explore the potential implications for climate finance. Amid increasing global environmental challenges, financial markets have emerged as critical platforms for driving sustainable development. In this context, sustainability indices, which monitor the performance of environmentally and socially responsible companies, have gained significant attention. However, the understanding of how these indices perform compared to traditional indices and their implications for climate finance, remains limited. Using a comprehensive dataset of these indices over a certain period (October 2017 to June 2023), this study applies various financial metrics and statistical analyses to assess their performance. The study provides a theoretical discussion on the potential impacts of these indices on climate finance, despite the absence of direct data on climate finance. The findings of this study have significant implications for climate finance, as they indicate that sustainability indices are not detached from the broader market dynamics represented by traditional indices which is evident from very strong correlations found between them. The significance test for the VAR model shows that the lagged returns of the indices do not have a significant influence on the current returns of the other index. Granger causality test indicates there's no significant evidence to suggest that the past returns of any of the indices have a predictive relationship with the current returns of another index.

BSE sustainability indices, climate finance, sustainability outcomes, VAR model, Granger causality test

"A Comparative Analysis of BSE Sustainability Indices - Implications for Climate Finance and Sustainability Outcomes", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 11, page no.e429-e445, November-2023, Available :http://www.jetir.org/papers/JETIR2311458.pdf

"A Comparative Analysis of BSE Sustainability Indices - Implications for Climate Finance and Sustainability Outcomes", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 11, page no. ppe429-e445, November-2023, Available at : http://www.jetir.org/papers/JETIR2311458.pdf