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Tuesday May 21, 2024

PSX issues first ESG guide

By Our Correspondent
April 18, 2024
A trader can be seen at the Pakistan Stock Exchange (PSX) building in Karachi. — PPI/Files
A trader can be seen at the Pakistan Stock Exchange (PSX) building in Karachi. — PPI/Files

KARACHI The Pakistan Stock Exchange (PSX) has issued the first in a series of publications, the PSX Primer on Environmental, Social & Governance (ESG), aimed at guiding listed companies on ESG reporting, a statement said on Wednesday.

The PSX Primer enables listed companies to understand ESG opportunities and risks and educates stakeholders on using ESG data while guiding listed companies in producing a sustainability report. This is in line with the roadmap and guidance framework of the SECP to promote and encourage ESG reporting among listed companies, stated a press release Wednesday.

Speaking at the occasion of the launch of the PSX Primer on ESG, the MD and CEO PSX, Farrukh H. Khan, stated, “Pakistan Stock Exchange has taken a tremendous leap forward in its efforts to materialise its vision on ESG reporting by listed companies. Subsequent to several steps taken by PSX on the ESG front such as the establishment of the ESG Taskforce, among others, PSX has now issued guidelines in the shape of the PSX Primer on ESG for listed companies. This is the first of a series of guidelines which will go a long way to help listed companies understand and report on ESG, as well as comprehend its risks and opportunities, whilst helping investors obtain information on ESG to make informed decisions in the context of their present and future investments.”

Dr Shamshad Akhtar, chairperson PSX, stated, “It is a proud moment for PSX and for myself that after extensive advocacy and deliberations, the exchange has managed to introduce the PSX ESG Primer and Reporting Guidance document. It is the beginning of a new journey in partnership with our industry. I count on our listed companies to embrace and deploy it. ESG Guidance has the potential to foster a culture of responsible and sustainable business practices which support our listed companies’ potential to generate and use ESG data effectively and navigate through the complexity of accounting and estimation of ESG, assessment of ESG risks and opportunities. It will also help harness and exploit the potential of ESG innovation to enhance companies’ domestic and external competitiveness”.

She further stated, “Listed companies will find everything that is out there in terms of the methodology for reporting in this ESG Primer and Reporting Guidance document.”