Ethical Energy Index (EEI)


‘Global Warming’ and ‘Climate Change’ are real threats before international community and therefore emissions of Green House Gases (GHGs) from any economic activity need to be monitored and perceived as ‘RISK’.


We have tried to offer ‘Carbon footprinting’ services to many Indian companies but we have found most of them quite reluctant.

We strongly believe that emission reduction objective has fundamental requirement of developing the culture of systematic emission data monitoring for companies.

We looked at various alternatives to achieve this and found that; as per existing  Company Law requirements under Companies (Disclosure of the particulars in the Report of the Board of Directors) Rules,1988; Indian companies, in 21 identified sectors,  are required to report considerable details of their energy consumption as part of the Directors’ Report included in the Annual Report. We decided to use this published information as the basis of our exercise to estimate GHG emissions of the companies.

Thus, in our analysis, estimate of the GHG emissions of various companies, is based on published annual report data, arising out of their energy use.

The emissions value used for EEI estimation, do not include process emissions (generally reported under Scope-1 emissions) for some industries like cement, sodaash or urea (could be negative due to CO2 used in process) etc. and emissions under Scope-3 of GHG Protocol.

All other Scope-1 & 2 emissions are related to energy use and hence included in our calculations. Generally, emissions from energy use account for more than 75% of total emissions and, accordingly, we believe emission estimates made are truly representative.


This UNIQUE index is developed by us to arrive at quantified estimate of the “CARBON RISK” that company faces if it is exposed to the emission reduction obligations.

This index is on the scale of 0-100.

100 represents highest 'Carbon Risk' and 0 represents the least 'Carbon Risk'.

EEI and methodology for its estimation is proprietary development of our company and users of our services are provided access to this information for their own use only and use of EEI in any othermanner for developing any other indicators or for commercial purpose is not permitted without prior  'ROYALTY' related agreement with our company.


Energy consumption data are used as per the details given in the Directors' Report.

GHG emission factors are used as per the GHG Protocol guidelines.

We have evolved a proprietary simulation model on this basis to arrive at estimates of EEI.


We have identified five major parameters which can be objectively compared and evaluated to arrive at ‘Carbon risk’ of the company.  These are as follows:

  1. Total GHG emissions (T CO2)
  2. Emission intensity of fuel mix used (T CO2/TOE)
  3. Emission intensity of power mix used (T CO2/MWH)
  4. Share of renewable in total power consumed (%)
  5. Emission intensity of EBIDTA (kgs CO2/’000 INR)

These parameters, their weightage and value limits for risk measure etc. are determined based on our inhouse understanding and experience with respect to emissions from different types of industries. These are specifically explained in our ‘Carbon risk assessment reports’ available to our online service subscribers.

In our opinion, EEI provides a unique and quantified measure of 'Carbon Risk' and this index can be used by various stake holders to assess the 'Carbon Risk' of the company.

We strongly believe that EEI can be used on various Stock Exchange Platforms to evolve suitable indices which can give realtime analysis of 'Carbon Risk' of a group of companies for which such EEIs are estimated by us.

We are open, AND IN FACT VERY KEEN, to collaborate  with various Stock Exchanges for evolving suitable mechanisms to arrive at a 'Carbon Risk' indicator using our EEI.