The Securities and Exchange Commission of Pakistan has issued updated Environmental, Social, and Governance Disclosure Guidelines for listed companies, reinforcing its commitment to strengthening sustainability reporting and supporting Pakistan’s long-term climate transition. The revised guidelines, published on the regulator’s official website, mark an important step in aligning corporate disclosures with national climate objectives and global sustainability practices.
According to the SECP, the updated framework is aligned with Pakistan’s national priorities and the country’s revised Nationally Determined Contributions, which outline targets for emissions reduction, increased use of renewable energy, and enhanced climate resilience. By updating the ESG Disclosure Guidelines, the regulator aims to position the corporate sector as a central contributor to achieving these national climate goals, while improving the quality and consistency of information available to investors and other stakeholders.
A key feature of the revised guidelines is the introduction of a standardized reporting framework that allows listed companies to disclose climate-related risks, opportunities, and activity-level data in line with the Pakistan Green Taxonomy. The taxonomy defines what constitutes environmentally sustainable economic activities in Pakistan and is designed to guide capital toward projects and businesses that support environmental objectives. By linking ESG disclosures directly to the taxonomy, the SECP is seeking to reduce ambiguity in sustainability reporting and improve comparability across firms and sectors.
To support implementation, the guidelines provide practical instructions on applying the Pakistan Green Taxonomy. These include guidance on how companies can identify relevant economic activities, assess their alignment with defined environmental objectives, and report the required information in a structured manner. The SECP has acknowledged that taxonomy-aligned reporting can be technically demanding, particularly in areas such as data collection, assessment against screening criteria, and ongoing compliance.
Recognising these challenges, the regulator has announced a transition period under which ESG disclosures will remain voluntary until June 2029. Following this period, compliance will become mandatory under a phased implementation plan. The extended timeline is intended to give companies sufficient time to build internal capacity, improve data systems, and integrate sustainability considerations into their reporting processes without creating undue disruption.
The SECP has also committed to continuing its engagement with the corporate sector to facilitate adoption of the revised guidelines. Planned support measures include capacity-building programmes, awareness initiatives, and ongoing stakeholder engagement aimed at improving understanding of sustainability reporting requirements and the practical application of the Pakistan Green Taxonomy. The regulator has indicated that these efforts will be critical in ensuring that the transition to mandatory disclosures is both effective and credible.
With the rollout of the updated ESG Disclosure Guidelines, Pakistan’s capital markets are expected to move toward more consistent, reliable, and decision-useful climate-related reporting. Improved disclosure standards are anticipated to strengthen investor confidence by providing clearer insights into how companies are managing climate-related risks and opportunities, as well as how their activities align with national sustainability priorities.
The SECP said the strengthened framework supports Pakistan’s broader sustainable development agenda by encouraging responsible corporate behaviour and facilitating the flow of capital toward environmentally sustainable activities. As climate considerations increasingly shape investment decisions globally, the updated guidelines are expected to play a role in enhancing the resilience and competitiveness of Pakistan’s corporate sector while advancing the country’s transition to a greener and more sustainable economy.
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