Karachi, In a significant move to boost environmental, social, and governance (ESG) reporting standards, the Pakistan Stock Exchange (PSX) has entered into a collaborative agreement with the London Stock Exchange Group (LSEG). This partnership aims to develop advanced ESG data tools for Pakistani companies, enhancing their global visibility and compliance with international standards.

According to Pakistan Stock Exchange Limited, this collaboration will facilitate the creation of a comprehensive ESG scoring system and lay the groundwork for an upcoming ESG Index. The initiative is part of PSX's broader strategy to integrate sustainable and responsible business practices into its operations and among its listed companies. This effort includes the formation of an ESG Taskforce and planned training sessions to educate local companies about ESG reporting.

Mr. Farrukh H. Khan, MD and CEO of PSX, expressed his enthusiasm about the partnership, highlighting it as a crucial step towards aligning PSX's operations with global ESG standards and enhancing the international profile of Pakistani companies. He also noted the mutual benefits anticipated from this collaboration, including increased ESG visibility for Pakistani firms.

Mr. Nadim Najjar, Managing Director for Central and Eastern Europe, Middle East and Africa at LSEG, remarked on the joint endeavor's potential to foster a sustainable and responsible business environment in Pakistan.

Additionally, Dr. Shamshad Akhtar, Chairperson of PSX, and Mr. Akif Saeed, Chairman of SECP, also praised the initiative during their keynote addresses. They underscored the importance of leveraging LSEG’s expertise to advance sustainability and responsible investment practices within PSX's operations and among its clients.

The initiative is complemented by SECP's upcoming ESG Disclosure Guidelines and the launch of the ESG Sustain portal, set to further strengthen the sustainability framework within Pakistan’s capital markets.