Market participants

    Index providers

    Firms that design the indices that passive funds track, including ESG and climate indices.

    Background

    In India, NSE Indices runs the Nifty100 ESG family and Asia Index, owned by BSE, runs the BSE 100 ESG Index. Global providers include MSCI, S&P Dow Jones Indices (Dow Jones Best-in-Class Indices) and FTSE Russell.

    Scope and powers

    They set the rules for which companies enter ESG indices, such as exclusions, ESG score cut-offs and weight caps, and review them on a fixed schedule.

    Investor relevance

    Index rules decide what passive ESG funds hold. Inclusion or removal can move a stock's demand, and the methodology document is the real description of an ESG index fund.

    Related guides

    Key glossary terms

    Last reviewed: October 2026