PSX partners with London Stock Exchange Group

Both firms will work to develop standardised ESG data tools for PSX-listed companies

ISLAMABAD:

In a landmark development, the Pakistan Stock Exchange (PSX) has signed a collaborative understanding with LSEG (London Stock Exchange Group) on Environment, Social, and Governance (ESG). Under this mutual understanding, both companies will work to develop a suite of standardised ESG data tools for PSX-listed companies to report their ESG data, according to a PSX press statement.

This understanding benefits PSX and listed companies by providing ESG scoring and enhancing the visibility of Pakistani companies on international ESG radars. Additionally, it lays the groundwork for an ESG Index planned by PSX in the future, aligning with PSX’s vision on ESG and marking a significant step in the Exchange’s ESG journey.

Through this collaboration, PSX will encourage listed companies to adopt ESG reporting in line with global standards. Furthermore, it supports the ESG Taskforce established by PSX to bolster the adoption of ESG standards. PSX also plans to hold training sessions with LSEG to raise awareness and build capacity for listed companies on ESG reporting.

Speaking on the signing of the mutual understanding with LSEG, MD & CEO PSX, Farrukh H Khan said that the understanding provides a comprehensive suite of services for listed companies in the ESG domain.

He noted that the collaboration aligns with PSX’s vision to elevate the ESG journey for listed companies. On the occasion, Managing Director, Central and Eastern Europe, Middle East, and Africa, LSEG, Nadim Najjar, highlighted this collaboration as a significant stride in advancing ESG reporting and practices. “Our goal is to support companies in Pakistan to foster a more sustainable and responsible business environment,” Najjar added.

Chairperson PSX, Dr Shamshad Akhtar, underscored learning from LSEG’s experience to promote sustainability and responsible investment. She urged PSX to encourage listed companies to prioritise sustainable development through ESG by focusing on reducing carbon emissions, promoting social goals, and supporting good governance.

Chairman Securities and Exchange Commission of Pakistan (SECP), Akif Saeed, highlighted the positive integration of sustainability into capital market frameworks, anticipating enhanced global ESG scoring accessibility. SECP’s forthcoming ESG Disclosure Guidelines and the ESG Sustain portal launch this year will reinforce sustainability measures and collaboration for a resilient market.

Published in The Express Tribune, April 23^rd, 2024.

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