The Securities and Exchange Commission of Pakistan (SECP) has proposed a sustainable Environmental, Social, and Governance (ESG) roadmap to attract international investors. The ESG is an approach to assessing companies on environmental, social, and governance performance factors. It aims to attract international investors to the country’s capital markets.
The Securities and Exchange Commission of Pakistan (SECP) has proposed a sustainable ESG roadmap for capital markets. The roadmap includes extensive awareness and advocacy sessions to synergize with relevant stakeholders. In addition, in June 2023, the Commission will launch a dedicated ESG dashboard to capture the progress of adapting ESG initiatives.
This will pave the way for ESG-based mutual funds & other financial products and an Index at PSX.
ESG considerations will continue to remain a priority in the corporate sphere. Around $120 billion was directed towards sustainable investments in the year 2021. Different jurisdictions, including the US, UK, EU, Japan, Thailand, and South Korea, are adopting different approaches to address ESG risks, opportunities and disclosures.