SECP’s Sustainable Finance Advisory Group Focuses on ESG Practices

ISLAMABAD: The Sustainable Finance Advisory Group for Capital Markets, operating under the Securities and Exchange Commission of Pakistan (SECP), recently convened to discuss methods for reinforcing Environmental, Social, and Governance (ESG) disclosure procedures and increasing collaboration to bring more companies onto the SECP’s ESG Sustain Portal.

The SECP hosted the initial gathering of the Sustainable Finance Advisory Group for Capital Markets on Tuesday.

The Advisory Group explored ways to strengthen ESG disclosures, boost cooperation to enlist entities on the SECP’s ESG Sustain Portal, and promote initiatives for capacity building, aiding businesses in conforming their reporting to global sustainability benchmarks. Members also voiced backing for the upcoming Women EquiSmart Policy, designed to incorporate gender-focused changes throughout SECP-overseen sectors.

Mussarat Jabeen, Executive Director of the SECP, led the session, which saw participation from Group members like Farrukh H. Sabzwari, the CEO of the Pakistan Stock Exchange, Saifullah, President of the Institute of Chartered Accountants of Pakistan, Assad Hameed Khan, Head of ACCA Pakistan, Shauzab Ali, representing the Asian Development Bank (ADB), Naz Khan, representing the International Finance Corporation (IFC), Fareeha Ummar, representing UN Women, and Nazish Shekha, representing the Pakistan Business Council.

The Convener detailed the Advisory Group’s objectives and anticipated outcomes, emphasizing the significance of establishing explicit and attainable goals.

The members confirmed their institutions’ dedication to sustainability reforms, recognized their ongoing collaboration with the SECP over the past three years, and lauded the establishment of a consolidated Advisory Forum as a well-timed action to propel the agenda forward.

Furthermore, members highlighted the necessity of sustained teamwork and accelerated capacity enhancement to expedite the implementation of international sustainability reporting standards, with their gradual introduction planned to start in July 2025.

Moving forward, the Group stressed the importance of addressing the fundamental causes of current deficits, setting specific KPIs to assess the group’s advancement, and guaranteeing consistent engagement with all relevant stakeholders.

Additionally, the Group pledged to enable proactive partnerships to support the Women EquiSmart Policy action plan, which seeks to integrate gender-aware reforms across the SECP’s regulated domains.

The Advisory Group will act as a key platform for continual conversation, gathering quarterly to assess progress and jointly create solutions to foster sustainable business practices in Pakistan.