Pakistan’s sustainability market is moving from voluntary commitments towards substantive corporate and financial requirements. The Securities and Exchange Commission of Pakistan has adopted IFRS S1 and IFRS S2 on a phased basis. The first group of listed companies became subject to the standards for reporting periods beginning on or after 1 July 2025, the second phase began on 1 July 2026, and remaining listed companies and specified public-interest companies will follow from 1 July 2027. Independent assurance requirements begin from each company’s second year of reporting. View the SECP announcement and the adoption order.
The State Bank of Pakistan has also introduced a climate-related financial-risk framework for banks and other regulated financial institutions. Institutions are required to submit Board-approved implementation plans and targets by 30 September 2026, covering governance arrangements, policies and procedures, risk management and stress testing, and institutional capability. View the SBP climate-related financial-risk framework.
These developments create both risk and opportunity. Companies that act too slowly may face regulatory gaps, weak sustainability data, higher transition costs and growing pressure from lenders, investors and international buyers. Those that act early can strengthen governance, protect market access, improve investment readiness and position credible climate and sustainable investments.
Corporate Zone Consulting’s Sustainable Business, Climate Finance and Impact Advisory practice will help businesses, financial institutions, investors and public-sector enterprises respond to this changing environment through three integrated areas of service:
1. Sustainability and climate-risk readiness: Helping organisations understand their regulatory and market exposure, identify material sustainability and climate-related risks and opportunities, establish appropriate governance arrangements, and develop practical implementation and reporting roadmaps. Services may include readiness and gap assessments, governance and policy frameworks, climate-risk registers, sustainability KPIs, data and reporting protocols, implementation plans, and Board and management capacity building.
2. Climate finance and investment readiness: Helping businesses, financial institutions and public-sector enterprises develop credible, commercially grounded climate and sustainable-investment propositions for engagement with banks, investors and development finance institutions. Services may include investment-readiness assessments, climate and development rationales, investment cases, financing strategies, impact frameworks, project-screening and prioritisation tools, and support for structured engagement with prospective financing partners.
3. Impact and portfolio performance: Helping institutions define, measure and manage the economic, environmental and social value of their investments, portfolios and business activities. Services may include impact strategies, investment and impact criteria, theories of change, scorecards, KPIs, portfolio monitoring systems, outcome verification, independent performance reviews and management or Board-level reporting.
The practice will be led and supported by our pool of key experts, who have years of experience in sustainable and climate finance, investment and impact frameworks, portfolio performance, institutional strengthening and evaluation.
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