Karachi: Pakistan State Oil (PSO) is accelerating its commitment to Environmental, Social, and Governance (ESG) principles, embedding sustainability at the core of its business strategy. By integrating ESG considerations into its operations, the company is driving responsible growth, balancing economic performance with environmental stewardship and social responsibility.
On October 2, 2025, PSO announced the establishment of a dedicated ESG Department and a comprehensive ESG Policy. This framework aligns with industry leaders, international best practices, Pakistan's Nationally Determined Contributions (NDC 3.0), and the United Nations Sustainable Development Goals (SDGs). A Board-level ESG Committee has been constituted to ensure that sustainability considerations are embedded within the company's strategic decision-making processes.
In its environmental initiatives, PSO has expanded its renewable energy portfolio, achieving a total installed solar capacity of 818kW. This infrastructure is expected to generate approximately 1 million kilowatt-hours (kWh) of clean energy annually, offsetting around 750 metric tons of CO2 emissions. Additionally, a large-scale tree plantation initiative resulted in the planting of 20,000 trees, furthering PSO's commitment to afforestation.
In efforts to promote low-carbon transportation, PSO signed an agreement with HUBCO Green and BYD to establish a comprehensive electric vehicle (EV) charging network across the country. This collaboration aims to promote EV adoption in Pakistan while aligning with PSO's long-term goal of achieving net-zero carbon emissions.
PSO continued to modernize its retail network with the inauguration of six sustainable Vibe stores, designed to minimize carbon impact and enhance resource efficiency. Utilizing recycled and sustainable building materials, zero plaster finish, and eco-friendly refrigeration systems, these stores have significantly reduced operational energy consumption and emissions. The Pakistan Green Building Council (PGBC) awarded two of the newly launched Vibe stores its highest green building rating.
According to information available from the Pakistan Stock Exchange (PSX), PSO's strategic focus on ESG principles reflects a deliberate approach rooted in global best practices. This perspective aims to generate enduring value for its shareholders, customers, and society as a whole.
In terms of sustainable procurement, the digitization of 1 million documents enabled recycling and reduced the company's environmental footprint. PSO's dedication to sustainable practices has also been recognized by the Chartered Institute of Procurement & Supply (CIPS), with the company being honored in the Ethical Procurement and Supply category.
PSO's contributions to the national exchequer for the fiscal year 2024-25 include PKR 191 billion in sales tax, PKR 120 billion in custom duty, PKR 513 billion in petroleum levy, and PKR 42 billion in other duties and taxes, totaling PKR 866 billion. The company remains committed to tax compliance, ensuring all financial obligations are promptly met.
The company's credit ratings, as provided by VIS Credit Rating Company Limited, are A1+ for short-term and AA+ for long-term, maintaining a stable outlook due to prudent financial management policies and effective controls.
PSO's continued focus on ESG initiatives, along with its strategic growth and contributions to the national economy, underscores its commitment to sustainable and responsible business practices in Pakistan.