Qudsia Bano

In a move to align Pakistan’s corporate practices with global sustainability standards, the Securities and Exchange Commission of Pakistan (SECP), in collaboration with the International Finance Corporation (IFC), has initiated the country’s first real-time ESG (Environmental, Social, and Governance) impact tracking system for listed companies. This marks a major milestone in Pakistan’s journey toward responsible and transparent corporate governance.

The project, titled "ESG Pakistan," is a three-year initiative aimed at embedding ESG principles across the business sector. The ESG Sustain Portal, already launched by SECP, will be used as a central data platform to monitor and assess the environmental and social impact of companies operating in Pakistan’s capital markets. According to industry professionals, this development is a much-needed step to help Pakistani companies attract responsible investment and improve international competitiveness.

Ahsan Ali, a senior ESG analyst at Blink Capital Management Limited, noted that global investors were increasingly screening companies based on their sustainability practices. “Real-time ESG tracking will enhance investor confidence and make Pakistani businesses more credible on the international stage,” he said. Ali added that this shift can improve operational efficiency.

“By tracking ESG performance in real time, companies can identify risks earlier and reduce costs linked to environmental fines, poor labour practices, or governance failures,” he explained. Dr Nadia Rafique, a senior consultant at Accounting Quotient Private Limited, pointed out that beyond investment, the SECP had already developed several frameworks over the past few years, including ESG Disclosure Guidelines and a comprehensive ESG Regulatory Roadmap.

However, this project goes a step further by using technology to turn ESG into a measurable and actionable metric for companies, he added. At the launch workshop held in Islamabad, SECP Chairperson Akif Saeed emphasised that the global push towards sustainable finance is irreversible, especially for climate-vulnerable countries like Pakistan.

The event was attended by professionals from capital market institutions, corporations, and sustainability-focused bodies. IFC Country Manager for Pakistan and Afghanistan Zeeshan Sheikh said the initiative would build ESG awareness and implementation capacity within industries. “IFC’s support includes conducting sector-specific workshops, creating localised guidance materials, and analysing data collected through the ESG Sustain Portal to assess the impact of ESG practices.”

With this initiative, Pakistan is positioning itself to catch up with regional economies already advancing in ESG transparency and sustainable business models. Experts believe that if implemented effectively, real-time ESG tracking could help local firms meet the expectations of international markets, reduce long-term operational risks, and support the country’s wider climate and development goals.

Credit: INP-WealthPk