The role of ESG policies in shaping sustainable businesses
Sustainability and ESG once buzzwords, have evolved to being seriously considered by both corporates and policy makers. Many argue what is the difference between the two.
Technically speaking, the scope of sustainability is much broader and ESG can be taken to be a sub-set of sustainability. ESG stands for environment, social and governance, which essentially when combined covers a broad spectrum of areas within which a business operates. Generally, both these terms are concurrently used.
With growing awareness, value chains are inquiring about the ESG practices of their business partners making a strong business case for implementation. Considering the importance, regulators have appropriately acted by introducing regulations and mandatory compliance with respect to sustainability.
One of the key requirements for corporations is having a policy for sustainability and ESG. SECP is the primary regulator of companies in Pakistan. It has implemented numerous changes pertaining to sustainability in the regulatory framework, particularly in the Code of Corporate Governance for Listed Companies, 2019 (the Code), requiring a company’s Board of Directors to establish and maintain an ESG policy.
As per PICG ESG survey carried out in 2023:
On a question “Does your organization have a defined action plan related to the ESG strategy?
This makes a very strong case for........
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