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Saturday May 18, 2024

PSX, LSEG ink ESG deal

PSX lays down the groundwork to encourage listed companies to adopt ESG reporting in line with global standards

By Our Correspondent
April 23, 2024
A trader can be seen at the Pakistan Stock Exchange (PSX) building in Karachi. — PPI/File
A trader can be seen at the Pakistan Stock Exchange (PSX) building in Karachi. — PPI/File

KARACHI: The Pakistan Stock Exchange (PSX) has inked a mutual understanding with the London Stock Exchange Group (LSEG) to develop a suite of standardised Environment, Social and Governance (ESG) data tools, a statement said on Monday.

The collaboration aims to enhance the visibility of Pakistani companies on international ESG radars by providing ESG scoring. It also lays the groundwork for an ESG Index planned by the PSX in the future.

"Through this collaboration, PSX lays down the groundwork to encourage listed companies to adopt ESG reporting in line with global standards," the statement said. "Moreover, it augments the steps taken by PSX in the shape of the ESG Taskforce established along with key stakeholders to bolster the adoption of ESG standards by listed companies."

The PSX also plans to hold training sessions in collaboration with LSEG to create the necessary awareness and build capacity for listed companies on ESG reporting. Farrukh H. Khan, MD & CEO of PSX, said the signing of the understanding with LSEG makes available a comprehensive suite of services that will be offered by PSX in the ESG domain for listed companies.

"I am confident this will prove to be a win-win situation for all stakeholders involved by improving the presence and profile, both locally and globally, of Pakistan and the companies listed on PSX."

Nadim Najjar, Managing Director, Central and Eastern Europe, Middle East and Africa, LSEG, said the PSX lays down the groundwork to encourage listed companies to adopt ESG reporting in line with global standards through this collaboration."Moreover, it augments the steps taken by PSX in the shape of the ESG Taskforce established along with key stakeholders to bolster the adoption of ESG standards by listed companies."