0
Pakistan still hadn’t recovered from the aftermath of the 2022 floods when another devastating spell of floods fell upon us.
Punjab has experienced the biggest flood in its recent history. According to Punjab’s senior minister, “It’s the first time that the three rivers, that is, Sutlej, Chenab and Ravi, have carried such high levels of water.”
This is not the only emergency pertaining to climate in Pakistan. In fact, Pakistan is struggling with a multitude of climate emergencies, including shrinking of forests due to natural or manmade reasons, rising temperatures, glaciers melting faster than anticipated, and last but equally devastating torrential rains causing floods all over the country. Ultimately displacing and affecting the lives of 2 million people.
Due to the intersection of these climate emergencies, the natural landscapes of the country are destabilising. Thus, there are catastrophic landslides, in addition to the flooding. Over 400 people have lost their lives due to these natural disasters.
Not to mention, this instability is set to cause severe socioeconomic consequences. Repeated floods are destroying fertile agricultural land, reducing crop yields, and thus, driving significant economic losses in rural areas. Due to the damage caused by recent floods, vulnerable communities are being displaced. Furthering the unending cycle of poverty.
In the face of an escalating climate emergency, businesses can no longer stay on the sidelines since their activities are one of the main reasons for the growing environmental damage. Corporate social responsibility (CSR) in environmental sustainability has now become a necessity for the businesses. CSR is a business approach where companies take responsibility for their social, environmental, and economic impacts.
Thus, making amends by promoting sustainable and ethical practices and aiming to positively contribute to communities and the environment. Following the rationale that businesses possess the resources, influence, and reach to make a difference by their practices as well as awareness campaigns, both internal and external.
However, despite the resources and huge profit margins, the practices of large-scale businesses are among the leading causes of environmental degradation. Ranging from industrial emissions to overexploitation of natural resources, unchecked corporate activities have surely contributed to accelerating climate change.
Ultimately, this has turned into a climate crisis requiring immediate global attention. If such environmentally harmful practices are kept unchecked, the long-term sustainability of the businesses as well as the environment is put at high risk.
The global shift toward ESG (environmental, social, and governance) standards also reflects a collective demand for accountability and urgent action. Businesses must recognise that investing in sustainable practices goes beyond mere compliance with standards. It is about addressing a crisis that threatens food security, water availability, and the very environment on which their operations depend.
Pakistani businesses often view CSR as charity when the focus should rather be on long-term responsibility tied to climate resilience
Some companies in Pakistan have begun taking steps towards climate-conscious CSR, though progress remains uneven. Engro Fertilisers has invested in water efficiency projects and farmer training programmes to promote climate-resilient agriculture.
Similarly, Lucky Cement has made strides in shifting towards alternative fuels and renewable energy to cut carbon emissions. On the global front, Unilever’s “Sustainable Living Plan” and Tesla’s renewable energy solutions show how large corporations can embed sustainability into core business models. These examples highlight both the potential for Pakistani companies to scale up their climate CSR efforts and go beyond mere symbolic tree-planting campaigns.
Pakistani businesses often view CSR as charity. They tend to do things such as donations during floods or ad hoc relief efforts. While these are useful, the focus should rather be on long-term responsibility tied to climate resilience. To meaningfully contribute, businesses need to integrate climate goals into their CSR policies.
This includes measurable investments in reducing emissions and adopting energy-efficient practices. Such efforts can not only reduce environmental footprints but also lower long-term operational costs for the companies. Companies should also fund public awareness campaigns that shift consumer behaviour towards sustainable choices. Crucially, businesses should also collaborate with government agencies to further the aim of environmental sustainability.
The climate crisis poses an existential threat to Pakistan, but it also offers an opportunity to rethink the role of business in society. CSR should no longer be a peripheral activity. It must be central to how companies operate in a climate-vulnerable nation.
By moving beyond symbolic gestures to concrete actions, Pakistani businesses can protect their own future while contributing to national resilience. The choice is clear: either to adapt through responsible business practices today or to risk irrelevance in a climate-altered tomorrow.
Areej Wasi is an Islamic finance researcher, and Mohammad Ibrahim Abro is a lawyer
Published in Dawn, The Business and Finance Weekly, September 15th, 2025
