Finance: From compliance to responsibility

In an increasingly interconnected world, responsible business conduct (RBC) — defined by the Organisation for Economic Co-operation and Development (OECD) as contributing to economic, environmental, and social progress while mitigating adverse impacts — has become essential for maintaining a competitive edge. For Pakistani businesses, where regulatory pressure is still evolving, aligning with international standards is crucial. The European Union (EU) leads with frameworks like the OECD Guidelines, UN Global Compact (UNGC), EU Taxonomy, and Sustainable Finance Disclosure Regulation, making compliance vital for market access. This shift extends beyond Europe, with global buyers and development financial institutions like the International Finance Corporation and the Asian Development Bank prioritising RBC adherence in investment decisions.