SECP initiates consultation on voluntary ESG

ISLAMABAD - The Securities and Exchange Commission of Pakistan (SECP) has issued draft guidelines on ESG dis­closures for consultation as part of its Environmental, Social and Governance (ESG) Regulatory Roadmap issued in June 2022. The guidelines have been prepared to en­courage listed companies to enhance their ESG disclo­sures in a fair and transpar­ent manner on voluntary basis. Since the guidelines are non-mandatory in na­ture, non-listed companies may also seek guidance from the draft guidelines for em­barking on their journey towards adoption of ESG standards. The draft guide­lines cover a wide range of topics under the E, S and G pillars including the recom­mended metrics related to climate change, Green House Gases emissions, energy usage, gender diversity, ex­ecutive compensation, non-discrimination, health and safety, board diversity, in­centivized pay and internal controls etc. Under the draft guidelines, the companies have the liberty to disclose their ESG performance by issuing a separate sustain­ability report, integrating it with the company’s annual report or publishing it online on their website. The SECP is committed to promoting sustainable and respon­sible business practices in Pakistan and issuance of the draft ESG guidelines is a sig­nificant step forward in this direction. By improving ESG disclosures, the SECP aims to improve transparency in company’s operations, pro­mote sustainable business practices to reduce impact on environment and help in­vestors make more informed investment decisions. The draft guidelines are available on SECP’s website. 

ePaper - Nawaiwaqt