“If we are not recording and making public the good work that is being done, it makes it more difficult to access that finance.” – People

MARIAM ALI BAIG: What is OICCI’s mandate in the context of climate change?

ANDREW BAILEY: The OICCI was founded over 150 years ago. It was originally known as the Karachi Chamber of Commerce and it is one of the oldest chambers of commerce in Asia. At the moment, we have over 200 members in 14 different segments, representing over 30 countries. In total, the taxes paid by OCCI members contribute more than 33% of the government’s revenue, so it is quite an influential group. The OICCI has also invested over $22 billion since 2013 – higher than the figure for foreign direct investment, so in comparative terms, our members actually have greater confidence in Pakistan as an investment destination. Not only that, but in terms of just CSR, OICCI’s contribution in 2022 was over 12.8 billion rupees, and these contributions have affected over 46 million people in Pakistan. In terms of climate change, our mandate is to raise the profile of OICCI member companies. In 2022, we organised the Pakistan Climate Conference and held the second one the following year. Both were held before COP to make sure that private sector voices from Pakistan would be heard there.

MAB: What are the main issues OICCI addresses in the climate change context?

AB: First and foremost, it is about raising awareness levels for capacity building, not only within our own companies but also in other companies that choose to join us in addressing climate change. After last year’s Pakistan Climate Conference, we were the only private sector organisation asked to join the government at COP28 in Dubai. However, because the fight against climate change cannot be just one event a year, we are now holding deep dive focus workshops to ensure that the right topics are brought to the table at COP. This is where we are trying to find our space in the climate change agenda. It is about taking the post-COP commitments into mainstream business in Pakistan. We have recently partnered with UNDP to see how we can take specific, measurable actions.

MAB: How do these initiatives translate into action on the ground?

AB: One area where OICCI member companies are playing a strong role is in green financing – making finance available for projects in Pakistan. At this stage, it is about how we can raise knowledge levels on these topics. To deliver a successful project, we have to bring a lot of companies up to a certain level, and our workshops play a big role in driving this awareness. It is about building capacity, advocating for the right policies and bringing in the competencies that exist within our membership to the forefront of the discussion.

MAB: What does bringing companies up to a certain level mean?

AB: Our workshops cover topics such as climate governance, leveraging benchmark practices and developing climate governance frameworks inside companies. We also address issues such as carbon markets for sustainable growth, prospects for green financing and subsidising renewable energy. The workshops are about improving knowledge levels to understand what these things mean and how companies can improve their ESG ratings. The other aspect is taking these topics to the government as well as supporting them, especially in terms of the nationally determined contributions (NDCs) Pakistan has committed to. I would say that a lot of the things we are measuring are not being recorded in Pakistan’s NDCs. Particularly on CSR, where our numbers are not included, and there are some pretty hefty numbers. We are talking with UNDP and the government to ensure we have transparency in terms of what our members are doing and how this aligns with the SDGs and the NDCs.

MAB: In terms of knowledge and capacity, how much further does Pakistan have to go to develop optimal levels?

AB: Sustainability is a journey, not a destination. From my own experience, in Africa, when you talk about sustainability, it is about surviving until the end of the week. In Europe, sustainability is looking after your grandchildren’s world. The dimensions are very different. Pakistan is in the very early stages of the journey. Having said this, I have met some incredibly knowledgeable people doing some wonderful things. We want to build on this and highlight the good work that is being done, not only by companies but also by NGOs and individuals. Within our member companies, we have some very knowledgeable people, so it is about bringing them to the fore and helping grow this knowledge throughout Pakistan. The key is implementation, and the UNDP came to the same conclusion – that they need an implementation partner. We are also formalising a partnership with the Sustainable Development Policy Institute (SDPI) to see how we can take forward the work they do on advocacy and implement it.

MAB: Given the economic climate in Pakistan, are companies prepared to make the investments required to comply with the climate change agenda?

AB: The amount of money available globally for climate change goes into the trillions of dollars. The key is how we access it. But yes, it will require a significant outlay, which is why green financing is a key area in our workshops.

MAB: Are private sector companies in Pakistan investing in setting up departments dedicated to climate change issues?

AB: About 10 to 15 years ago, the sustainability portfolio was typically given to Environment Health and Safety (EHS). Then this evolved and was linked to the corporate communication side. Now, most global companies have a dedicated team specifically handling sustainability topics, and these are intertwined with finance and procurement. For example, procurement would need to ensure that they are buying products and services from companies that measure their carbon emissions across the value chain. Sales, for their part, should make customers aware that the products and solutions they are marketing are ESG compliant. I would say that roughly 80% of OICCI members represented on the ESG committee have a standalone division focusing on sustainability. One of the first things I noticed when I arrived here was that climate change is taken seriously by OICCI companies. That is a first step; now the question is: how do we spread this? At the end of the day, it’s not one department’s responsibility; it is everyone’s responsibility. We all need to understand the role we can play in our own private individual capacity as well as within our company.

MAB: How does OICCI interact with the government on climate change?

AB: We support the government on these issues. We recently had a session with the government regarding a White Paper we published on the specific measures where OICCI and the private sector can support the government. I think the government is doing a lot. What I sense from my 18 months of being in Pakistan is that a lot of good work is being done, but it is not necessarily being recorded. I believe that Pakistan’s contribution to its NDCs is probably a lot further ahead than it realises, and the same goes for the government’s commitment to the SDGs. If we are not recording and making public the good work that is being done, it makes it more difficult to access that finance. Our goal is to be seen as the government’s implementation partner when it comes to sustainability. We need to have this combination of the government, the private sector and other stakeholders working together so that matters don’t just remain at the talking points stage.

MAB: Shouldn’t the government be more proactive in setting forth a regulatory framework on climate change?

AB: The SECP recently released their guidelines on ESG disclosure, which is a big step, although it is limited to the listed companies. I think the big space is getting the smaller companies to measure their ESGs.

MAB: In your opinion, what are two big issues that the government and the private sector need to address as a starting point?

AB: Cutting carbon emissions and knowledge capacity building.

Andrew Bailey was in conversation with Mariam Ali Baig.

For feedback: aurora@dawn.com