SECP issues ESG guidelines aligned with Pakistan Green Taxonomy

December 11, 2025 (MLN):  The Securities and Exchange Commission of Pakistan (SECP) has issued updated ESG Disclosure Guidelines for listed companies, reaffirmed its commitment to strengthening sustainability reporting and supporting Pakistan’s climate transition.

The revised guidelines have been published on the SECP’s official website, said a press release issued.

Aligned with national priorities and Pakistan’s updated Nationally Determined Contributions which outline plans for emissions reduction, expanded renewable energy use, and improved climate resilience, the SECP aims to position the corporate sector as a key driver in achieving the country’s climate goals.

The updated guidelines introduce a standardized reporting framework that enables listed firms to disclose climate-related risks, opportunities, and activity-level data in accordance with the Pakistan Green Taxonomy (PGT), which defines environmentally sustainable economic activities.

To facilitate adoption, the Guidelines also offer practical instructions on applying the PGT, including how to identify relevant activities, determine alignment with environmental objectives, and report the required information.

SECP has set a transition period during which ESG disclosures will remain voluntary until June 2029. After that, companies will be required to comply under a phased implementation plan.

Acknowledging the technical complexity of sustainability and taxonomy-aligned reporting particularly in data collection and compliance with screening criteria, the SECP plans to continue assisting the corporate sector through capacity-building programs, awareness initiatives, and stakeholder engagement.

With the rollout of the revised Guidelines, Pakistan’s capital market is expected to progress toward more credible, consistent, and decision-useful climate reporting.

The strengthened framework is anticipated to bolster investor confidence and support Pakistan’s broader sustainable development agenda, advancing the country’s shift toward a greener, more resilient economy.

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