PSX is partnered with the London Stock Exchange Group

PSX is partnered with the London Stock Exchange Group

In a significant development, the Pakistan Stock Exchange (PSX) has signed a memorandum of understanding with LSEG (London Stock Exchange Group) on Environmental, Social and Governance (ESG). Under this mutual understanding, the two companies will work to develop a set of standard ESG data tools for PSX-listed companies to report their ESG data, according to a PSX press release.

This understanding benefits PSX and listed companies by providing ESG scoring and increasing the visibility of Pakistani companies on the international ESG radar. In addition, it lays the foundation for the ESG Index planned by PSX in the future, in line with PSX’s vision on ESG and marks an important step in the ESG Exchange’s journey.

Through this collaboration, PSX will encourage listed companies to adopt ESG reporting in line with global standards. Furthermore, it supports the ESG Task Force established by PSX to strengthen the use 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 MoU with LSEG, MD & CEO of PSX, Farrukh H Khan said that the MoU provides a comprehensive range of services for listed companies in the ESG domain.

He stated that the collaboration is in line with PSX’s vision to improve the ESG journey of listed companies. On that occasion, the Managing Director, Central and Eastern Europe, Middle East and Africa, LSEG, Nadim Najjar, emphasized this collaboration as an important step in advancing ESG reporting and practice. “Our aim is to support companies in Pakistan to foster a more sustainable and responsible business environment,” added Najjar.

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

The Chairman of the Securities and Exchange Commission of Pakistan (SECP), Akif Saeed, emphasized the positive integration of sustainability into the capital market framework, anticipating improved accessibility of global ESG scoring. The SECP’s upcoming ESG Disclosure Guidelines and the launch of the ESG Sustain portal this year will strengthen sustainability and collaborative measures for a resilient market.