Pakistan Green Taxonomy: SECP unveils updated ESG guidelines

PSMU Desk

Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has announced the issuance of revised Environmental, Social, and Governance (ESG) Disclosure Guidelines for listed companies, reinforcing its commitment to sustainability reporting and supporting Pakistan’s transition to a greener economy.

The updated guidelines, now available on the SECP’s official website, are aligned with Pakistan’s updated Nationally Determined Contributions (NDCs), which outline the country’s goals for emissions reduction, expanded renewable energy adoption, and enhanced climate resilience. By embedding sustainability practices into corporate reporting, the SECP aims to position the private sector as a key player in achieving Pakistan’s climate targets.

The new guidelines introduce a standardized reporting framework that enables listed companies to disclose climate-related risks, opportunities, and performance metrics in line with the Pakistan Green Taxonomy (PGT). This taxonomy defines environmentally sustainable economic activities, helping businesses align their operations with national environmental goals. The updated framework provides a comprehensive approach for companies to identify relevant activities, assess their alignment with environmental objectives, and report essential data in a structured and transparent manner.

In order to support the corporate sector’s adoption of these guidelines, the SECP has outlined a transition period during which ESG disclosures will remain voluntary until June 2029. After this period, companies will be required to comply with the guidelines under a phased implementation plan.

Recognizing the technical complexities associated with ESG reporting, particularly around data collection and compliance with the taxonomy’s screening criteria, the SECP has committed to providing ongoing support through capacity-building programs, awareness campaigns, and stakeholder engagement. These efforts are designed to help companies navigate the intricacies of sustainability reporting and ensure a smooth transition to full compliance.

With the launch of these revised guidelines, Pakistan’s capital market is set to move toward more credible, consistent, and actionable climate-related disclosures. This strengthened reporting framework is expected to enhance investor confidence and support Pakistan’s broader sustainable development agenda, ultimately contributing to the country’s shift toward a greener, more resilient economy.