PSX opens public consultation on PSI, Index aimed at gauging ESG risks, opportunities

KARACHI, (APP - UrduPoint / Pakistan Point News - 6th Jul, 2026) pakistan stock exchange Limited (PSX), Monday, releasing a Concept Paper on the psx Sustainability Index (PSI) on Monday, launched public consultation on a proposed benchmark to assess listed companies embedding environmental, social, and governance risks and opportunities.

The PSI is relevant to listed companies seeking recognition and access to responsible capital, asset managers and institutional investors building ESG-aligned products on a credible benchmark, and investors seeking structured exposure to companies with sustainable business models, a PSX statement issued here said.

“Marking a defining milestone in Pakistan's journey toward mainstream sustainable finance, the PSI is a proposed benchmark designed to identify and measure the performance of listed companies that embed financially relevant and material environmental, social, and governance risks and opportunities in their business models,” it stated.

Chief Executive Officer Pakistan Stock Exchange, Farrukh Sabzwari, in his remarks stressed on the increasing importance of ESG in capital markets with focus on how companies are valued, how capital is allocated, and how long-term risks are priced.

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He termed the PSI as their commitment to giving Pakistan's capital markets a credible, transparent, and internationally comparable tool to identify companies that are not simply performing today but are building the resilience to perform tomorrow.

The PSI is designed as a total-return performance benchmark, applying a rigorous, materiality-adjusted scoring methodology across Environmental, Social, and Governance pillars. Sector-specific factor weights ensure that companies are assessed against the risks and opportunities that are genuinely financially relevant to their business, not a uniform checklist applied indiscriminately across industries.

PSX, considering the broad market consultation as vital to frame an index that reflects the realities of Pakistan's corporate landscape, accommodates the current state of sustainability disclosure, and sets a clear and achievable improvement pathway for companies across all sectors; and invited comments in written from stakeholders up to 17 July 2026. The concept paper and other details are available on the PSX website.