ESG practices in Pakistan’s markets: PSX enters into agreement with LSE

KARACHI: As a step towards enhancing environmental, social, and governance (ESG) practices, the Pakistan Stock Exchange (PSX) has inked a pivotal agreement with the London Stock Exchange (LSE).

The agreement, signed today, underscores a commitment to fostering sustainable development within the financial sector.

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The collaboration aims to facilitate the development of a range of standardised data tools, which will be instrumental in bolstering the reporting mechanisms of PSX-listed companies. This strategic partnership signifies a concerted effort towards promoting transparency and accountability across the board.

“This mutual understanding marks a significant milestone in our journey towards ESG integration,” said PSX Managing Director Farrukh H Khan.

He added, “Through the implementation of these standardised data tools, PSX-listed companies will be empowered to streamline their data reporting processes, thereby enhancing their market competitiveness.”

LSEG Central and Eastern Europe, Middle East and Africa Managing Director Nadim Najjar 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.”

She added, “From the PSX board’s standpoint, we count on our Exchange on drawing extensively from the experience of London Stock Exchange Group (LSEG) 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”.

Furthermore, the cooperation agreement is poised to have far-reaching implications beyond the domestic realm. Pakistani companies stand to gain increased visibility on the international exchange radar, as attractive investment prospects for global investors.

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“This signing underscores our unwavering commitment to driving sustainable development initiatives,” added Khan. “By providing a comprehensive suite of services, we are laying the foundation for a more resilient and responsible financial landscape.”