SECP Unveils 'ESG Sustain' Online Dashboard, Paving the Way for Sustainable Governance
The Security and Exchange Commission of Pakistan (SECP) has unveiled 'ESG Sustain,' an online dashboard designed to enhance corporate social responsibility and promote environmental and governance practices. During the 2nd Pakistan Climate Conference, SECP Chairman Akif Saeed emphasized the importance of inclusivity and gender diversity on company boards.
Karobar
In a significant move towards fostering a sustainable business environment and bolstering corporate social responsibility, Akif Saeed, Chairman of the Security and Exchange Commission of Pakistan (SECP), announced the establishment of an innovative online dashboard, 'ESG Sustain.' The announcement came during the 2nd Pakistan Climate Conference, organized by the Overseas Investors Chamber of Commerce and Industry (OICCI).
Pakistan, one of the world's ten most climate-vulnerable nations, has grappled with the devastating impacts of climate change, including catastrophic floods that affected 33 million people and incurred losses of approximately PKR 3.3 trillion. Akif Saeed emphasized the importance of inclusivity for long-term stakeholder value, noting that SECP mandates female representation on company boards. Currently, more than 87% of listed companies have at least one female director, showcasing progress in gender diversity.
The corporate governance regime, according to Akif, necessitates the integration of Environmental, Social, and Governance (ESG) policies at the board level, with disclosure of ESG-based initiatives in annual reports. Recently, SECP issued guidelines for public sector and public listed companies to facilitate the formulation of a Code of Conduct for directors, senior managers, and other employees.
Collaboration with various stakeholders and the recent release of Sustainability Standards 1 (S1) for general disclosure.
The SECP actively engages with the evolving global ESG landscape to provide investors with consistent and comparable information on sustainability risks and opportunities. An ESG position paper was issued in 2022, initiating discussions on ESG considerations. Collaboration with various stakeholders and the recent release of Sustainability Standards 1 (S1) for general disclosure and Sustainability Standards 2 (S2) for climate-related disclosures represent major strides towards standardized and reliable reporting.
Akif Saeed highlighted SECP's partnership with a multilateral organization to create 'ESG Sustain,' an online dashboard that will serve as the national repository for sustainability-related laws, regulations, capacity-building resources, reports, and data spanning all regulated sectors. This centralized platform aims to provide essential information and products related to climate change and sustainability, benefiting local and foreign investors.
SECP has also issued ESG guidelines for voluntary adoption by listed companies, with public consultations ongoing. These guidelines place a significant focus on the Environmental and Social pillars of ESG reporting, allowing companies to report performance using internationally recognized metrics and disclose board and management involvement in managing climate-related risks.
