Page 49 - CMA Journal (Nov-Dec 2025)

Focus Section

Government bodies and monitoring agencies also lack The ultimate purpose should
adequate professional resources and the commitment to be the achievement of ESG
follow up on achieving SDGs. There is a critical need for goals and the development of
allocation of resources and budgets for training and a sustainable, socially, and
development of sustainability professionals and ESG environmentally responsible
compliance auditors. organization. ESG adoption
should not be viewed as a
Role of Digital Transformation & AI
mere compliance exercise; it is
a strategic necessity for
Digital transformation can play a vital role in effectively
Pakistan’s economic resilience
implementing ESG initiatives in the corporate sector for
and reputation. Effective
sustainable development and economic progress. Cloud
corporate governance is the
computing, artificial intelligence (AI), and Big Data are
backbone of successful ESG
key tools for monitoring and reporting ESG-related
integration. A successful
actions and outcomes. AI can be used to detect and
transition to sustainable
measure carbon emissions, as well as track energy
business practices will define
consumption and conservation for sustainable business
Pakistan’s competitiveness in
operations.
global markets.
The Way Forward
Policy Recommendations by IPRI
In light of the above challenges, and to accelerate the
move toward a sustainable corporate sector, organizations The Islamabad Policy Research Institute (IPRI) conducts
should prioritize the following steps for ESG adoption: research, analysis, and evaluation of strategic and
emerging critical issues and conducts regional and
• Assessment of current status and strategy develop- international events covering Pakistan’s national interests
ment for the future. and policies. The institute has forwarded key policy
recommendations for synchronizing the ESG framework
• Identification of global benchmarks for voluntary within Pakistan's operational ecosystem, summarized as
compliance. follows:
• Assurance of meeting regulatory and reporting • A unified ESG policy and implementation framework
requirements, wherever applicable. supported by legal enactments.
• Stakeholder engagement through regular commu- • Conversion of traditional high carbon-emitting
nication covering investors, customers, employees, processes to renewable energy use.
communities, and relevant regulatory bodies.
• Professional skills development programs focused
• Risk management covering impacts on client reputa- on ESG initiatives.
tion, operations, and financial performance.
• Introduction of regulatory reporting requirements
• Training and education (top-down) on ESG princi- with clear directions and timelines.
ples and practices.
• Use of global benchmarks when introducing KPIs in
• Capacity building within the organization. relevant business and corporate sectors.
• Key performance indicators (KPIs) and frameworks • Use of technology and smart business solutions
for monitoring gaps and progress. (including AI and Big Data) in implementing,
monitoring, and reporting ESG initiatives by the
• Integration with business strategy, making ESG goals
an integral part of long-term corporate objectives. corporate sector.
• Adoption of technology solutions to support ESG About the Author: Mr. Masoud Ali Khan, FCMA, is an
data collection, analysis, and reporting. accomplished C-level executive with a successful track record in
strategic business planning, financial management, business and
• Industry-specific expertise to stay updated on ESG financial due diligence, operations, investments, risk management,
trends and best practices. and ESG functions for large organizations in Pakistan, Saudi Arabia,
and the UAE (Dubai), covering the MENA region. He is the Founder
• Continuous improvement loop to ensure ongoing and CEO of MAK Synergies (Pvt.) Ltd.
ESG progress.

ICMA’s Chartered Management Accountant, Nov-Dec 2025 47