ESG In Financial Services

Financial players are the engine driving the ESG transition not only for themselves but the whole economy.

ESG is top of the global agenda, especially in the financial services industry. In Pakistan's evolving financial landscape, ESG is becoming increasingly important, particularly in the banking and financial services sector. Financial institutions are key drivers of the ESG transition, not just within their own operations but across the broader economy. 

We are at the beginning of a rapidly accelerating transition that will shape the business and finance landscape, what does this mean for your organization?

- Market opportunity

Trillions of dollars have shifted into ESG-linked financial products and services, creating new opportunities in Pakistan's financial sector. With international ESG investing reaching over $30 trillion in Assets Under Management (AUM), and approximately a third of all global AUM forecast to have ESG mandates by 2025, Pakistani financial institutions need to adapt to attract both local and international ESG-focused capital. Banks and financial institutions that develop sustainable finance capabilities early will be better positioned to capture these opportunities.

- Social responsibility

Pakistan's financial sector, as a crucial enabler of economic growth, has a responsibility to lead the transition towards a sustainable future. Financial institutions can drive positive change through sustainable lending practices, green financing, and supporting businesses in their ESG journey.

- Resilience

Recent global challenges, including the pandemic and climate events affecting Pakistan, have highlighted the need for robust, sustainable business practices. This 'new reality' demands sustainable strategies at the core of organizational operations.

- Regulation

With Pakistan's regulatory landscape evolving to meet global ESG standards, financial institutions must prepare for evolving requirements. Developing comprehensive sustainable finance frameworks will be crucial for future success and compliance.

Our expert multi-disciplinary team bring together a deep understanding of financial services business models coupled with new thinking and innovation around ESG.

Our services include:

• ESG Strategy – developing a robust ESG strategy and target operating model and organisational design.
• Sustainable Finance - understanding the ESG implications on your organisation’s products and services.
• ESG Policy and Procedures – reviewing and designing policy with a focus of expertise on human rights.
• Social propositions around areas such a diversity inclusion and modern slavery
• ESG Regulation and Regulation Driven Transformation – breaking down your requirements and ensuring compliance.
  
• ESG Reporting and Assurance – providing expertise in ESG reporting frameworks and implementation
• ESG Risk Transformation - supporting on climate/integration into risk management frameworks and climate risk stress testing