ISLAMABAD: The pakistan stock exchange (PSX) has joined the Sustainable Stock Exchanges (SSE) Initiative, a partnership program under the auspices of the UN organised by United Nations Conference on Trade and Development (UNCTAD), the UN Global Compact, United Nations Environment Programme Finance Initiative (UNEP-FI) and the Principles for Responsible Investment (PRI).
According to press statement received here from the exchange, this affiliation of psx with SSE had been effective from June 6, 2022.
The SSE Initiative’s goal is capacity building of stock exchanges and securities market regulators around the world to promote responsible investment in sustainable development and help improve corporate performance on Environmental, Social and Governance (ESG) issues, including the financing of the UN Sustainable Development Goals (SDGs).
The SSE Initiative is an effort to achieve this goal through maintenance of a Sustainable Stock Exchanges Database, ESG Disclosure Guidance Database, and further guidelines on how stock exchanges can embed sustainability within their operations, grow green finance, and advance gender equality, among other activities.
To build the capacity of stock exchanges and securities market regulators to promote responsible investment in sustainable development and corporate.
Speaking at the occasion, MD & CEO PSX, Farrukh H. Khan said this was a significant development for Pakistan and for Pakistan Stock Exchange whereby PSX, the national stock exchange of the country, has become a member of the Sustainable Stock Exchange Initiative.
PSX , as the frontline regulator, is proud to join this prestigious UN initiative, he added.
Under the leadership of PSX Chairperson, Dr. Shamshad Akhtar, PSX, along with other key stakeholders, has formed an ESG Taskforce to lead the development of ESG reporting standards, advocacy, policies and discourse in Pakistan, Khan added.
“Through this affiliation, PSX will be better equipped to champion and lead the ESG narrative for Pakistan’s listed companies and for PSX. While we had already taken the initial steps in this regard, the SSE membership will help to guide the direction to be taken by PSX and the ESG Taskforce in terms of creating ESG reporting standards and procedures,” he said.
This will enable analysts, fund managers and other investors to better assess the performance of listed companies, along with guiding our efforts on constructing the ESG or Sustainability Index for the Pakistan market.
“I would like to acknowledge and thank the UN for leading this extremely important initiative and PSX is proud to be part of this global movement. Pakistan is committed to ESG and PSX looks forward to playing a key role in the development of ESG standards, reporting and dialogue in the country,” he said.
He was of the view that by joining the SSE Initiative, PSX would now be supported in its efforts to effectively take forward the discourse for ESG and encourage listed companies to report on ESG and SDGs.
As such disclosure increases and more data becomes available, this will allow investors to support companies which are striving to meet the global ESG standards, while the Exchange will be able to introduce products like ESG indices to guide companies and investors, Khan said