ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is actively working on development of the Pakistan Green Taxonomy (PGT), which provides a framework for identifying priority sectors and economic activities that contribute meaningfully to environmental objectives.
As part of its efforts to promote responsible business practices, the Securities and Exchange Commission of Pakistan (SECP) has issued draft additions to the Guidelines on ESG Disclosures for Listed Companies for public consultation.
According to the SECP, Pakistan is among the climate-vulnerable countries in the world, facing heightened risks from rising temperatures, floods, droughts, and other climate-induced disasters.
SBP likely to unveil initial ‘green taxonomy policy’ draft by month-end
Addressing these risks and transitioning towards a sustainable future requires collective efforts across all sectors of the economy. In this regard, the Government of Pakistan has committed to its Nationally Determined Contributions (NDCs), making it important for the corporate sector to play an active role in achieving national climate targets and building climate resilience.
Climate action is, therefore, a priority for the government and people of Pakistan. The country’s updated 2021 Nationally Determined Contributions (NDCs) signify a paradigm shift toward an inclusive, innovative, whole-of-economy approach to addressing climate change challenges through targeted adaptation and mitigation actions.
The revised NDCs set forth an unconditional emissions reduction target of 15 percent and a conditional target of 35 percent from baseline by 2030. Additionally, the revised NDCs commit to increasing protected area land coverage from 12 to 15 percent, transitioning the energy mix toward 60 percent renewable and alternative energy, and increasing the number of electric vehicles by 30 percent by 2030.
The government of Pakistan, through its updated Nationally Determined Contributions, has committed to climate action targets. To support this transition, the Ministry of Climate Change and Environmental Coordination recently released the Pakistan Green Taxonomy to facilitate capital flows to sectors important for climate risk mitigation and adaptation.
Building on this foundation, the SECP has prepared draft disclosure requirements to be incorporated into the Guidelines on ESG Disclosures for Listed Companies. These disclosures will be applicable to all listed companies, regardless of whether they are obtaining green financing. A phased approach has been designed under which disclosures will remain voluntary until 2029, after which timelines for mandatory reporting will be introduced.
To ensure the disclosure requirements reflect a holistic view of all market players, the draft additions to the Guidelines on ESG Disclosures for Listed Companies have been uploaded to the SECP’s official website for public consultation. The consultation period will be open until October 22, 2025 (25 days). Feedback may be submitted to esg.repor-ting@secp.gov.pk.
The SECP encourages all stakeholders, including environmental professionals and the public at large, to share their valuable feedback on the draft additions.
This input will enable the SECP to finalize and roll out the additions to the Guidelines on ESG Disclosures, 2023.
Copyright Business Recorder, 2025