Take Action Today: Your Guide to Making a Difference Right Now!

Climate change is a big issue for our planet. Simply put, it’s the long-term change in Earth’s temperatures and weather patterns. This change brings many challenges, like rising sea levels, heatwaves, droughts, and floods.

According to a UN report, from 2010 to 2019, weather-related events displaced about 23.1 million people every year. Many of these people are now at a higher risk of poverty. Regions that are especially vulnerable saw 15 times more deaths from natural disasters than safer areas. The year 2024 was the hottest on record, and climate change played a major role in this temperature rise.

Pakistan ranks as the eighth most vulnerable country to climate change. Surprisingly, it contributes only 0.9% to global greenhouse gas emissions. Yet, the country faces severe climate impacts. In 2022, floods led to over 1,700 deaths and left 12,000 injured. The World Bank estimated that the economic losses due to these floods exceeded $40 billion.

In December 2015, countries around the world took action by adopting the Paris Agreement. This was a step toward addressing climate change. Since then, efforts to shift toward renewable energy and sustainable practices have gained momentum. However, experts agree that more work is needed.

The International Sustainability Standards Board (ISSB) was created in 2021 to help global markets by providing a framework for sustainability disclosures. This helps companies communicate their impact on the environment clearly. Recently, at COP 28, nearly 400 organizations pledged support for ISSB’s climate guidelines, showing a commitment to tackling climate change risks.

Modern businesses need to think beyond profits. Companies are now expected to report on their environmental, social, and governance (ESG) efforts. Effective ESG reporting requires measuring carbon footprints, setting emissions reduction targets, and considering climate risks in financial planning. This kind of reporting is crucial for building trust and accountability with stakeholders.

Dr. Shamshad Akhtar, Chairperson of the Pakistan Stock Exchange, noted, “ESG is broader than Corporate Social Responsibility (CSR); it includes integrating environmental and social factors into business operations.” The focus on sustainability has become essential for ensuring a livable future.

In June 2023, the ISSB launched its first standards, IFRS S1 and S2, which require companies to disclose information on sustainability risks and impacts. These standards are meant to create a universal reporting framework for businesses, making it easier for investors to assess sustainability efforts.

In Pakistan, workshops like “Navigating ESG Reporting” are being organized to educate companies about these standards. Mr. Ayhan Mustafa Bhutto from the Sindh government emphasized the importance of aligning local practices with global ESG criteria. He explained that improving ESG capabilities can unlock new business opportunities.

Ms. Zohra Sarwar Khan from the Securities and Exchange Commission of Pakistan highlighted that demand for sustainability disclosures is rising among investors. As companies globally adopt these practices, they enhance their accountability and attract sustainable investments.

Experts agree that ESG considerations are vital. Mr. Rashid Azeem from UBL stated, “ESG standards are becoming the global norm. Transparency on sustainability risk is critical.” He also mentioned that integrating sustainable banking products can drive positive change.

While there is a growing awareness of the need for sustainability reporting, many companies in Pakistan still lag behind. Better understanding and implementation of ESG reporting can not only bolster company reputations but also attract long-term investments to the local market.

Source link

time