The Securities and Exchange Commission of Pakistan (SECP) has introduced updated Environmental, Social, and Governance (ESG) guidelines for publicly traded companies, setting a mandatory implementation deadline of 2029 to align corporate reporting with national climate objectives in a statement issued today.
The move aims to mobilize the corporate sector in support of Pakistan’s national priorities and its latest “Nationally Determined Contribution” (NDC), which details commitments to reduce emissions, promote renewable energy, and enhance climate resilience.
Available on the regulator’s website, these revised guidelines offer a standardized framework for reporting, empowering listed companies to disclose environmental risks and opportunities. This also includes reporting activity-level data in line with the Pakistan Green Taxonomy (PGT) to identify environmentally sustainable economic projects.
To facilitate adoption, the guidelines include practical instructions on using the PGT for reporting, including how to identify relevant activities and assess their alignment with environmental objectives. To provide companies with ample time to prepare, the disclosures will remain voluntary until June 2029, after which they will be implemented as a mandatory requirement in three phases.
Acknowledging the complexities of sustainability reporting, particularly in data collection and assessment, the SECP has committed to ongoing support for businesses. This assistance will include training programs, awareness sessions, and collaborative efforts with various stakeholders.
This initiative is expected to shift Pakistan’s capital market towards providing more reliable and comparable environmental information. Establishing this robust reporting system is hoped to bolster investor confidence and contribute significantly to the country’s sustainable development goals, steering the economy towards a greener and more resilient future.