SECP issues ESG guidelines

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, a statement said on Friday.

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.