Page 37 - CMA Journal (May-June 2025)

Focus Section

 Agriculture Sector: Climate change impacts increases production costs and reduces profitability.
crop yields and farming practices. The use of Environmental compliance costs burden businesses
pesticides and fertilizers contributes to in the absence of supportive policies. Lost
environmental degradation. Water-intensive opportunities in green economy sectors limit
irrigation systems present sustainability economic diversification.
challenges. Small farmers often lack the capacity
2. Social Implications - Environmental degradation
and resources to adopt sustainable practices.
affects public health and quality of life. Water scarcity
 Services Sector: The banking sector offers creates social tensions and migration pressures. Air
limited green finance products. The tourism pollution contributes to respiratory diseases and
industry faces increasing environmental premature deaths. Industrial accidents and
sustainability pressures. The information workplace hazards compromise worker safety.
technology sector is experiencing growing Limited access to clean energy hampers rural
energy consumption. Real estate development development. Environmental injustice dispro-
frequently overlooks green building standards. portionately affects marginalized communities.
Youth unemployment restricts human capital
Case Studies development for green jobs. Gender disparities

1. Textile Industry Sustainability Challenges - persist in environmental impact and adaptation
Pakistan’s textile industry employs over 15 million capacity.
people and generates 60% of the country’s export 3. Environmental Degradation - Industrial pollution
earnings. Water consumption in textile processing contaminates water bodies and soil. Air quality in
creates severe environmental pressure. Dyeing and major cities exceeds WHO safety standards.
finishing processes produce toxic wastewater. Deforestation and land degradation reduce
Energy costs account for 25% of production biodiversity. Waste management systems are
expenses. International buyers increasingly demand inadequate for growing urban populations. Carbon
sustainable production practices, but local emissions continue to rise despite international
companies struggle to meet environmental commitments. Natural resource depletion threatens
compliance standards. Investment in clean long-term economic sustainability. Degradation of
technologies requires significant capital ecosystem services impacts agricultural productivity.
expenditure. Worker safety and labor standards are Pakistan’s climate change vulnerability ranking
also under scrutiny from international brands. continues to worsen.
2. Renewable Energy Sector Obstacles - Pakistan has Recommendations
excellent solar and wind energy potential. Although
a policy framework for renewable energy exists, 1. Policy and Regulatory Reforms
implementation remains slow. Grid integration
• Develop a comprehensive national
challenges hinder renewable energy projects.
sustainability framework
Financing mechanisms for distributed renewable
energy are inadequate. Local manufacturing • Strengthen environmental regulatory
capabilities for solar panels and wind turbines are enforcement mechanisms
limited. The skilled workforce required for renewable
• Establish one-stop shops for environmental
energy sector development is scarce. Land
clearances
acquisition procedures for large-scale projects are
complex. Political economy factors continue to favor • Create tax incentives for sustainable business
traditional energy sources. practices

Impact Analysis • Implement mandatory sustainability reporting
for large companies
1. Economic Consequences - Sustainability challenges
reduce Pakistan’s competitiveness in global markets. • Develop green procurement policies for
Environmental degradation increases healthcare government purchases
costs and reduces productivity. Resource scarcity
• Establish environmental courts for faster
raises input costs for businesses. Poor environmental
dispute resolution
performance affects foreign direct investment (FDI)
flows. Climate change impacts threaten agricultural • Harmonize provincial and federal
productivity and food security. Energy inefficiency environmental regulations

ICMA’s Chartered Management Accountant, May-June 2025 35