In a significant move towards promoting environmental, social, and governance (ESG) practices, the Pakistan Stock Exchange (PSX) has signed a Memorandum of Understanding (MoU) with the London Stock Exchange Group (LSEG).
This collaboration focuses on developing standardized ESG data tools for PSX-listed companies. These tools will not only streamline ESG reporting but also enhance the visibility of Pakistani companies on international ESG radars. This paves the way for a future ESG Index on the PSX.
“This MoU signifies a major step in PSX’s commitment to ESG integration,”
said Farrukh H. Khan, MD & CEO PSX. “We are confident this collaboration will be a win-win for all stakeholders, improving the global profile of Pakistan and its listed companies.”
The collaboration extends beyond tool development. PSX, in collaboration with LSEG, plans to conduct training sessions for listed companies to raise awareness and build capacity for effective ESG reporting.
Nadim Najjar, Managing Director, Central and Eastern Europe, Middle East and Africa for LSEG, echoed the sentiment, highlighting the collaborative effort to “advance ESG reporting and practices” within Pakistan.
Dr. Shamshad Akhtar, Chairperson PSX, emphasized the importance of leveraging LSEG’s experience to promote sustainable business practices in Pakistan. She highlighted the need to prioritize curbing carbon emissions and fostering social responsibility through ESG implementation.
Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan (SECP), commended the PSX-LSEG collaboration. He anticipates this partnership will improve access to global ESG scoring and further strengthen Pakistan’s capital market framework through the integration of sustainability principles. The upcoming launch of SECP’s ESG Disclosure Guidelines and ESG Sustain portal this year underscore their commitment to a resilient and sustainable market.
This MoU signifies a significant step forward for Pakistan’s capital market, promoting responsible business practices and attracting environmentally and socially conscious investors.
