Only ESG Framework Reporting Not Enough, Build Incentives For Better Consequences: Sherry Rehman
ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 5th Oct, 2026) Senator Sherry Rehman here on Monday called for a transparent and incentive-based Environmental, Social, and Governance (ESG) framework in Pakistan. She stressed that ESG cannot remain a matter of voluntary reporting or corporate image-building and must translate into measurable improvements.
Addressing the launch of the Pakistan ESG Policy Report 2026 as chief guest, Senator Rehman said:
"ESG requires a much broader conversation than one confined to the corporate sector. We have to talk about ESG not in isolation but in terms of climate, political, and legal frameworks."
She emphasized that the country needed to bring together stakeholders who understand the technical, regulatory, and legislative aspects of ESG.
Senator Rehman posed a fundamental question: "No longer is the issue whether Pakistan needs ESG, but what kind of framework we want to build and what consequences will follow?"
Referring to Pakistan's corporate practices, she highlighted a significant gap between awareness of ESG and its actual implementation. An ESG 2023 survey revealed:
- 86% of businesses were aware of ESG risks.
- 81% were conscious of ESG opportunities.
However, only 18% had an ESG-certified director on their boards, and just 11% issued sustainability reports. Even among those reporting, disclosures were often insufficiently detailed.
"With roughly 537 companies listed on the Pakistan Stock Exchange, we still have a wide gap between awareness and implementation," she noted. "Very few companies report their actual carbon footprint, circularity, resource use, or the measurable environmental impact of their operations." This is particularly crucial for export-oriented companies facing regulatory environments like the European Union’s Carbon Border Adjustment Mechanism.
Senator Rehman suggested requiring companies filing sustainability reports to appear before relevant parliamentary committees and justify their ESG disclosures. She advocated for creating a framework that incentivizes accurate reporting, performance improvement, and policy shaping.
She also emphasized the Pakistan Green Taxonomy as a vital structural tool for fostering a shared understanding of sustainable economic activities.