Advancing ESG Integration in Stock Market: A Sectoral Study of Sustainability Reporting in Pakistan

Umar Abbasi, Amjad Ali and Marc Audi

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines sustainability reporting practices among firms listed on the Pakistan Stock Exchange, focusing on sectoral differences, reporting patterns, and the interconnection between economic, social, and environmental dimensions. The research analyzes standalone sustainability reports from sixty-two organizations across fifteen sectors between 2016 and 2020, using content analysis aligned with the global reporting initiative standards. The findings indicate that although sustainability reporting has increased in Pakistan, it remains uneven and largely motivated by compliance. Disclosures heavily emphasize economic indicators such as financial performance, with leading firms disclosing at a rate of 94.4 percent, while lagging firms report significantly less on environmental issues such as emissions and energy consumption, and social concerns including labor rights and child labor, ranging between eleven and twenty-three percent. Sectoral analysis reveals that banking, oil and gas, and cement sectors report more frequently, largely due to regulatory obligations and stakeholder scrutiny, while retail and engineering sectors lag behind. The presence of integrated reporting positively correlates with comprehensive performance across the three sustainability dimensions i.e., economic, environmental, and social, but remains limited due to the voluntary nature of frameworks, inadequate resources, and weak enforcement mechanisms. The study highlights the need for mandatory reporting, capacity development programs, and strategic alignment with global frameworks such as the global reporting initiative and the United Nations Sustainable Development Goals. Policy reforms, tailored sector-specific guidelines, and active stakeholder engagement are essential to bridge the divide between symbolic gestures and meaningful sustainability disclosures. This research contributes to the discourse on environmental, social, and governance reporting in emerging markets, offering insights for policymakers, corporate executives, and investors aiming to advance sustainable development in Pakistan.

Keywords: Sustainability Reporting; GRI Standards; ESG Disclosures; Corporate Governance (search for similar items in EconPapers)
JEL-codes: M14 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-min and nep-sea
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/127311/1/MPRA_paper_127311.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:127311

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().