Page 47 - CMA Journal (Nov-Dec 2025)

Focus Section
ESG for Sustainable Corporate Growth:

Global Lessons and Pakistan’s Way Forward

With pressing challenges ranging from climate change to 3) Set ESG Goals
extreme weather events, the corporate sector is shifting and Action Plan:
its focus from mere profitability and shareholder value Aggressive ESG
toward environmentally and socially responsible goals should be
business operations. Corporate governance must developed as part
embrace ESG initiatives to address non-financial factors of the overall
on a global scale. strategic business

The concept of ESG has evolved from the early plan, supported
movements of Corporate Social Responsibility (CSR) and by proper action
Responsible Investing, gaining further significance plans for timely
following the UN’s adoption of the Sustainable achievement of
Development Goals (SDGs) in 2015. ESG is built around these goals and
three key pillars: targets by the
concerned Masoud Ali Khan, FCMA
1) Environmental factors - energy use, waste
management, recycling and reuse, carbon functional heads. Founder & CEO of
emissions, natural resource management, and MAK Synergies (Pvt.) Ltd.
4) Implement ESG
overall resource efficiency.
Practices:
2) Social factors - working conditions, diversity and Environmental practices may include reuse, recycling,
inclusion, health, community impact, and the water conservation, transition to renewable energy,
treatment of employees. and adoption of cleaner manufacturing processes.
3) Governance factors - ethics, transparency, and Social initiatives should include a hiring process that
monitoring standards for corporate decision- considers diversity and inclusion. A compliance
making. function should be introduced to ensure adoption of
policies related to ethical business practices and
ESG adoption in the corporate sector - indicates that
board oversight.
companies with strong ESG practices tend to achieve
better financial performance. Therefore, embedding ESG 5) Monitoring Performance: Key performance indica-
goals into business strategy and operations is essential
tors (KPIs) in each of the three core areas of ESG,
for overall efficiency and sustainable success.
including, but not limited to, carbon emissions reduc-
Way Forward for Strategic Business Plans tion (net-zero), employee satisfaction and retention,
and supply chain transparency as it should be
1) Awareness of ESG Principles: Strategic business
introduced to achieve relevant goals.
policies need to incorporate environmental
concerns and the resulting direct impact of business 6) Communication: Communication plays a vital role
operations; these should include issues such as in achieving goals by engaging stakeholders who are
net-zero carbon, conservation of natural resources part of the ESG action plan. It promotes commitment
including water, and reduction or elimination of
and builds goodwill.
chemical dumping. Social issues should focus on
human resources policies and practices, diversity 7) Continuous Improvement Loop: ESG is a
and inclusion, customer relationships, and CSR continuous journey that does not end. A continuous
initiatives. Governance should include four-eyes improvement loop should be built into the strategic
policies, transparency, and compliance. business plan, supported by appropriate budgetary
2) Assess the Current Situation: Business owners and allocations to ensure action rather than mere
shareholders need to evaluate corporate policies and discussion.
actions and their potential impact on sustainable
business operations.

ICMA’s Chartered Management Accountant, Nov-Dec 2025 45