Client Name

HUBCO

Faculty Advisor

Dr. Sana Tauseef,Associate Professor and Director QEC, Department of Finance

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

Our project aligns with the Investment Decision Making Thought Leadership area as it evaluates how environmental, social, and governance (ESG) performance impacts capital-market behavior, particularly investor perception, disclosure credibility, and access to sustainable finance. Through a detailed gap analysis and benchmarking exercise against six regional and global utility peers (e.g., ENGIE, Tata Power, K-Electric), we quantified HUBCO'S ESG disclosure shortfalls and proposed a strategic roadmap aligned with SECP, GRI, and IFRS S1/S2 frameworks. For instance, we analyzed how HUBCO's lack of Scope 1-3 GHG emissions data, minimal board independence (33%), and absence of ESG-linked executive compensation could elevate its weighted average cost of capital (WACC) once mandatory assurance becomes effective in FY2026. We proposed governance reforms-such as linking 25% of executive bonuses to ESG KPIs and establishing a Board ESG Committee-to improve investor confidence and reduce financing costs.

Furthermore, the project designed a science-based transition plan including a 40% renewable energy target by 2030 and full sustainability report assurance by 2027. These proposals support evidence-based decision-making in investment contexts and provide a replicable ESG KPI framework that other listed companies in Pakistan can adopt. Thus, the project contributes directly to IBA-SBS's mission of advancing scholarly and practitioner insights in investment efficiency and capital-market development.

Aligned SDGs

GOAL 13: Climate Action

Aligned SDGs Justification

A key feature of the strategy is HUBCO's alignment with science-based emissions reduction targets (SBTi 1.5°C pathway) and a net-zero roadmap through 2050. By addressing Scope 1-3 emissions and establishing measurable GHG baselines, the strategy supports both local regulatory compliance and global climate commitments.

NDA

No

Abstract

This report serves as a comprehensive ESG roadmap for HUBCO that satisfies SECP's new ESG disclosure guidelines. Three inter-linked objectives frames this work: (1) establish a baseline that benchmarks HUBCO against 6 regional & global peers; (2) conduct a gap analysis measuring HUBCO's current practices against SECP, GRI, IFRS S1 & S2 requirements; (3) design a phased strategy through 2040 that embeds science-based targets, tighter governance and a coal-to-clean energy transition. The research followed a five-phase design: (1) document review and content analysis of HUBCO’s public reports; (2) a literature review to establish theory and benchmarks; (3) semi-structured interviews with senior management for qualitative insights; (4) comparative benchmarking against local and international peers; and (5) creation of final strategy.

The findings revealed HUBCO is currently in minimum-compliance territory, disclosing no Scope 1–3 greenhouse-gas, gender pay-gap data and lost-time injury frequency rate, maintains board independence at only one-third and derives less than 3% of installed capacity from renewable sources. Each shortfall is classified as high severity because it carries reputational risks once SECP assurance becomes mandatory in 2026. To close these gaps the roadmap recommends immediate disclosure upgrades, formation of a board-level ESG committee and linkage of 25% of executive variable compensation to an ESG scorecard. Operationally it proposes retiring 15% of inefficient coal capacity by 2027 and building renewables to 40% by 2032. Implementation of this strategy is expected to open access to sustainability-linked finance and enhance the company’s social license in host communities

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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