Major Pakistani Banks Score Low on Climate and Biodiversity Financing Safeguards
A new benchmark report by Fair Finance Pakistan reveals that seven major commercial banks in Pakistan are failing to implement adequate climate and biodiversity safeguards for their financed projects. While these institutions show relatively high policy coverage for their own internal operations (75.4%), there is a significant gap regarding the companies they fund, with only 23.1% of financing activities covered by sustainability policies. The study assessed banks including HBL, Meezan Bank, and Standard Chartered Pakistan, finding that none reached even 42% of the maximum possible score. This lack of oversight poses a risk to Pakistan's national climate agenda (NDC 3.0) and international biodiversity commitments. The findings highlight a critical need for boards to move beyond sustainability statements toward enforceable lending requirements. The report comes as banks face increasing regulatory pressure from the State Bank of Pakistan, which requires board-approved climate-risk implementation plans by September 2026, with full compliance mandated by June 2029.