The Securities and Exchange Commission of Pakistan (SECP) is assessing the implementation of the IFRS Sustainability Disclosure Standards in Pakistan.
This initiative includes a public consultation process to determine the appropriate criteria and timelines for adoption.
The Institute of Chartered Accountants of Pakistan has recommended the adoption of IFRS Sustainability Disclosure Standards, comprising IFRS-S1 ‘General Requirements for Disclosure of Sustainability-related Financial Information’ and IFRS-S2 ‘Climate-related Disclosures’.
IFRS-S1 mandates the revelation of data concerning sustainability related risks and opportunities that could impact an entity’s cash flow, financial accessibility or capital costs.
IfRS-S2 details the criteria for pinpointing, quantifying and communicating information pertaining to climate-related risks and opportunities.
The standards are set to be deployed in a phased manner, with the first phase set to commence for annual reporting periods beginning on or after 1 January 2025.
Subsequent phases will be rolled out in January 2026 and 2027.
Companies will be selected based on criteria such as total assets, turnover and employee count.
The SECP has proposed that companies obtain assurance on their sustainability reporting from their auditors, starting from the second year of reporting under the new standards.
This move is a step in SECP’s environmental, social and governance regulatory road map, reported Business Recorder.
The adoption of these standards is aimed at enhancing transparency through standardised sustainability reporting, improving risk management and encouraging the integration of sustainable business practices into corporate strategies.
Furthermore, it aims to facilitate more informed decision-making by stakeholders.
In September, the SECP extended the Companies Regularisation Scheme by one month, now effective until 15 October 2024.
This extension provides companies that have fallen behind on their filings the chance to regularise their status without facing late fees or penalties.
Pakistan’s SECP considers adoption of IFRS Sustainability Disclosure Standards ” was originally created and published by The Accountant, a GlobalData owned brand.
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