SECP publishes position paper on ESG Regulatory Roadmap

ISLAMABAD - In order to encourage environmental, social and governance (ESG) practices and introduce a framework to facilitate sustainable investment, Securities and Exchange Commission of Pakistan (SECP) has published a position paper on ESG Regulatory Roadmap. SECP considers sustainability as a priority in its regulatory agenda. Through Listed Companies (Code of Corporate Governance) Regulations, 2019, based on comply or explain approach, board of directors are required to have ESG policy in place and disclose implementation of ESG initiatives. ESG considerations are gaining traction as investors and companies are seeking long term value and alignment with sustainability and climate-related objectives. SECP recognizes the importance of consolidated, inclusive and concentrated efforts towards sustainable ecosystem. The proposed ESG roadmap is the first step in gaining understanding, setting momentum in achieving key milestones and way forward through an inclusive approach to embrace ESG best practices for sustainable capital markets. It is expected that this roadmap will provide impetus for active engagement with all stakeholders and bring more clarity on long-term objectives and priorities under ESG regulatory regime. The position paper is open for public comments.

 

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