SECP unveils ESG regulatory guide

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has published a position paper on environmental, social and governance (ESG) regulatory roadmap to encourage ESG practices and introduce a framework to facilitate sustainable investment, a statement said on Monday.

The initiative aims to provide impetus for active engagement with stakeholders and bring more clarity on long-term objectives and priorities under ESG regulatory regime, the regulator said.

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 says it recognizes importance of consolidated, inclusive, and concentrated efforts towards sustainable ecosystem. The proposed ESG roadmap is 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, the regulator said. The position paper is available at SECP website.