Page 81 - CMA Journal (Mar-Apr 2026)

ESG, Agility and SDGs: The Role of

Pakistan's Financial Ins tu ons

A typical Pakistani nancial institution (FI) levied with the contribute to efficient
highest rates of taxation in the economy, expected to make p e r f o r m a n c e ,
responsible use of public money, bears international t r a n s l a t i n g i n t o
pressures of transparency while remaining pro table to its ambitious ESG policies
investors and providing growth stimulus to the deprived to achieve SDGs at
strata of the economy. Despite all these intrinsic limitations, both organizational
Environmental, Social and Governance (ESG) initiatives lead and community level.
banks in Pakistan. Such initiatives are typically expected
C o r p o r a t e S D G
from entities with much larger nancial muscle, such as
activities such as ESG
conglomerates, MNEs, FMCGs and industrial mega houses.
need agility, that is, the
Evidently, ESG initiatives ranging from Non-Financial
Advisory Services (NFAS) for marginalized businesses to ability to withstand
and adapt to external
nancing sports, cultural, expo, educational, entrepreneurial
shocks. Be it climate Mobeen Aslam Butt, FCMA
and career counselling events are all hallmarks of nancial
change, geopolitical Financial Analyst in
institutions in Pakistan.
instability or changes
the Financial Sector
Be it a small farmer in the most remote location of the in market tastes, all risk
country or a young student graduated from a large the organizational
university campus in a cosmopolitan city, all are treated business model, structure and culture. These risks present
equitably to uphold the promise of inclusion. This is the unique opportunities within threats and may at times lead to
slogan of all stakeholders in the nancial industry of situations where agility would uphold SDGs.
Pakistan. This includes sponsoring the education of
Despite the above optimistic picture, yet, as with every
employees' children, scholarships and internal
phenomenon, there is another side of the picture which is
competitions. Day care centres for female employees,
not as promising. Theoretically speaking, innovation that
gymnasiums for health and well-being, coupled with free of
curtails outcomes and strategic misalignments can slow
cost training and funded programmes of professional
growth. This would hamper organizational resilience to
quali cations for employees.
absorb shocks and may, God forbid, result in SDG failures.
Whether it is novel ESG or classic CSR initiatives, irrespective In relation to the above, it is heartening to learn from
of nomenclature and jargon, all efforts are aimed at one goal,
experiences and academic research that innovations with
namely sustainability. The sustainability parameters
simultaneous capacity building, development of market
adopted by the UN are the 17 Sustainable Development
niches and organizational ownership of strategic change,
Goals (SDGs), introduced in 2015 as a universal call to action
such as development of green technology, may bring the
to end poverty, protect the planet and ensure that by 2030 all
desired results, namely the achievement of sustainability
people enjoy peace and prosperity.
and its goals, measured by the UN through SDGs for
Agility is a great attribute in any organization, enabling it to standardization across the globe.
not only remain sustainable but also serve as a catalyst for
achieving sustainability parameters in society as a whole.
Why is agility important? Agile corporates, being buoyant About the Author: Mr. Mobeen Aslam Butt is a Fellow Member
and resilient, have the strength and advantage to take risks of ICMA and an Associate Member of the Institute of Bankers
on innovation and strategic changes such as investment in Pakistan (IBP), with over 25 years of professional experience in
green technology, for example in the banking industry, banking, credit and risk analysis. He holds a Master of Commerce
(M. Com) degree from the University of Punjab, where he was
investment in digital initiatives, ntech and arti cial
awarded two gold medals in 2000. He is currently pursuing a PhD in
intelligence. Organizational agility is a multidimensional
Finance and teaches courses in Finance and Taxation.
construct that helps corporates overcome risks and
ICMA’s Chartered Management Accountant, Mar-Apr 2026 79