When Mohibullah, a crane driver from Balochistan, bravely saved a family that was on the verge of drowning in a flash flood, he became the talk of the town. Many people questioned the effectiveness of the local disaster management authority, even as the nation rushed to praise him for his heroism.
Those floods did not occur every decade. In point of fact, in August of each year, the skies unleash their tremendous ferocity, leaving the government to deal with the consequences. In practically no time, the peaceful Indus and its abutting waterways and dams transform into seething deluges, and rich fields transform into overflowed wetlands. When I was working as a consultant for the United Nations Development Program in August 2022, I saw firsthand how these recurring disasters affected Balochistan and Sindh. The unrelenting downpours disrupted every aspect of life, from bustling urban centers to the heartlands of rural Sindh, where people lost their annual crops and were dependent on grants from abroad and donations from within the country.
I frequently refer to “climate injustice,” or the unequal distribution of the negative effects of climate change, when I speak about Pakistan.
Pakistan is one of the countries most affected by climate change, even though it contributes less than one percent to global emissions of greenhouse gases (GHGs). As a result, Pakistan is on the verge of economic collapse each year as governments are forced to channel resources into helping communities affected by climate change. Instead of working to attract climate-focused foreign direct investments aimed at securing a sustainable future, Pakistan begins looking for grants and aid for short-term relief whenever a disaster strikes.
This reliance on global awards is keeping Pakistan from making the drawn out speculations expected to assemble environment flexibility.
Our approach to sustainability and environmental, social, and governance (ESG) needs to be fundamentally rethought in light of these obstacles. Additionally, the private sector must view it as a necessity rather than a luxury. Because the focus has always been on maintaining a specific bottom line, regardless of the cost to society and the environment, business in Pakistan is frequently disconnected from the broader challenges of socio-environmental challenges. Pakistan is one of the 20 largest emitters of greenhouse gases in absolute terms, with carbon dioxide from the energy sector and methane from agriculture taking the lead. Given Pakistan’s commitment to reduce its overall emissions by 50% through nationally determined contributions by 2030, this presents a significant obstacle. Businesses are at the forefront of any disaster’s impact, which frequently manifests itself in supply chain disruptions, increased operational costs as a result of severe weather, and shifts in consumer demand for products and services that are more environmentally friendly.
Profits will not suffer as a result of our strategy being revised. It gives businesses a chance to come up with new ideas and survive in a world that is constantly changing. For instance, the ESG and Global Investor Returns Study conducted by Kroll found that ESG leaders worldwide earned an average annual return of 12.9%, nearly 50% higher than the 8.6% earned by losers. The average annual return of ESG leaders in the United States was 20.3%, which was about 50% higher than the 13.9% return of laggard companies. The private sector’s role will shift from being a part of the problem to being a key part of the solution if the strategy is rethought, or embraced the intersection of ESG and climate change. However, the process of rethinking will remain a distant dream unless green finance is made available to the private sector.
