SECP Publishes ESG Reporting Guide
The Securities and Exchange Commission of Pakistan (SECP) has taken a significant step by releasing preliminary guidelines for Environmental, Social, and Governance (ESG) disclosures.
This move is in alignment with the ESG Regulatory Roadmap introduced in June 2022, underscoring the SECP's commitment to fostering responsible and sustainable business practices.
These guidelines, as announced in a recent statement, are designed to instill a culture of transparency and fairness, urging publicly-listed companies to enhance their ESG disclosures voluntarily.
It's important to note that the SECP's draft guidelines are not compulsory. Still, their introduction serves as an essential resource for non-listed enterprises looking to embark on their journey toward embracing ESG standards.
The breadth of these guidelines encompasses various aspects within the ESG framework, spanning the Environmental (E), Social (S), and Governance (G) pillars.
They outline recommended metrics and criteria for evaluating climate change impact, Greenhouse Gas emissions, energy consumption, gender diversity, executive compensation, non-discrimination policies, health and safety measures, board diversity, incentivised pay structures, and internal controls, among others.
Furthermore, the draft guidelines afford companies a degree of flexibility in how they choose to disclose their ESG performance. This can be accomplished by creating a separate sustainability report, integrating ESG information into the company's annual report, or publishing these details on their official websites.
The introduction of these guidelines represents a vital step in advancing corporate responsibility and sustainability practices across Pakistan's business landscape.
Source: The News