KARACHI: Special Secretary for Climate Change and Coastal Development, Government of Sindh Ayhan Mustafa Bhutto has advised Pakistani businesses and banks to improve their capability for Environmental, Social, and Governance (ESG) reporting to gain more business, a statement said on Tuesday.
Speaking at a workshop titled ‘Navigating ESG Reporting: Aligning with IFRS S1 & S2 Standards’, Bhutto underlined that Pakistani institutions are missing out on financial possibilities now being used by foreign companies.
Under the aegis of the Indus Consortium, the event brought together banking and financial industry players to explore the integration of ESG frameworks, most notably the recently published IFRS S1 and S2 guidelines developed by the International Sustainability Standards Board (ISSB).
Bhutto underlined the growing need to match ESG practices with international norms to guarantee sustainable economic development and reduce financial risks connected to climate change. Sindh, especially sensitive to climate change’s effects, noted that it needs excellent public and private sector cooperation to create climate resilience.
“The transition to sustainability should not be seen simply as a regulatory obligation but as a strategic economic imperative,” he added, stressing that using IFRS S1 and S2 will increase openness and draw investment matched with climate goals.
Joint Director of the Securities Exchange Commission of Pakistan (SECP) Zohra Sarwar Khan underlined in her presentation the important role the ESG reporting plays in improving corporate responsibility and drawing sustainable investment to Pakistan.
According to her, the SECP is aggressively advocating for further alignment of corporate sustainability reporting with international frameworks as part of its larger initiatives to promote openness, climate resilience, and responsible investment across the nation's financial markets.
She noted that ESG reporting has become necessary for companies worldwide. Investors, authorities and other stakeholders are increasingly demanding transparency on sustainable practices and their financial consequences.
The International Financial Reporting Standards (IFRS) Foundation developed IFRS S1 and S2, which offer a worldwide benchmark for sustainability and climate-related disclosures.Hussain Jarwar, CEO of Indus Consortium, said that “financing is not neutral; either it has positive impacts or it produces harmful impacts to the environment and community”. He said that banks should adhere to and improve the disclosures of the environmental and social frameworks to ensure sustainability.
