KARACHI: In a landmark development, Pakistan Stock Exchange (PSX) has signed a collaborative understanding with LSEG (London Stock Exchange Group) on Environment, Social and Governance (ESG). Under this mutual understanding, both companies will work to develop a suite of standardised ESG data tools that can be used by PSX listed companies for their ESG data reporting. This understanding benefits PSX and listed companies in that the platform will not only provide ESG scoring but also enhance the visibility of Pakistani companies on the international ESG radars. This arrangement shall also help lay down the groundwork for an ESG Index planned by the PSX in the future.
Aligned with PSX’s vision on ESG, this development is a major link in the chain of steps taken by the Exchange in its ESG journey. Through this collaboration, PSX lays down the groundwork to encourage listed companies in adopting ESG reporting in line with global standards. Moreover, it augments the step taken by PSX in the shape of the ESG Taskforce established along with key stakeholders to bolster the adoption of ESG standards by listed companies. In the near future, PSX also plans to hold training sessions in collaboration with LSEG to create the necessary awareness and build capacity for listed companies on ESG reporting.
Speaking on the signing of the mutual understanding with LSEG, Farrukh H. Khan, MD & CEO PSX, stated, “The signing of the understanding with London Stock Exchange Group makes available a comprehensive suite of services that will be offered by PSX in the ESG domain for listed companies. The collaboration with LSEG is aligned with PSX’s vision to elevate the ESG journey for listed companies to the next level. I congratulate the teams at PSX and LSEG for enabling this collaboration. I am confident this will prove to be a win win situation for all stakeholders involved by improving the presence and profile, both locally and globally, of Pakistan and the companies listed on PSX”.
Nadim Najjar, Managing Director, Central and Eastern Europe, Middle East and Africa, LSEG, added, “This collaboration with Pakistan Stock Exchange marks a significant stride in our joint efforts to advance ESG reporting and practices. Our goal is to support companies in Pakistan to foster a more sustainable and responsible business environment.”
Delivering the keynote address, Dr Shamshad Akhtar, Chairperson PSX, stated, “I am very happy to see that there is an agreement leading to the collaboration between the London Stock Exchange Group & Pakistan Stock Exchange. From the PSX board’s standpoint, we count on our Exchange on drawing extensively from the experience of London Stock Exchange Group and practices of promoting sustainability and responsible investment as it guides its client, particularly listed companies, to embrace and mainstream sustainable development through the instrument of ESG keeping in practice and perspective the need to, as soon as possible, work towards curbing carbon emissions of our industry, trying to promote social objectives and, most importantly, supporting the governance element”.
Akif Saeed, Chairman SECP, as the keynote speaker, congratulated PSX’s collaboration with LSEG, enabling ESG Contribution Tool access for listed firms. He highlighted the positive integration of sustainability into capital market frameworks, anticipating enhanced global ESG scoring accessibility. SECP’s forthcoming ESG Disclosure Guidelines and the ESG Sustain portal launch this year will further reinforce measures to sustainability and collaboration for a resilient market, he added.
Copyright Business Recorder, 2024