Media Update: United Nations Pakistan, 12 November 2025

ILO

PRESS RELEASE

Pakistan's Enterprises Move Toward Sustainability Through Just Transition

The ILO's Guidelines for a Just Transition help countries and enterprises move toward sustainability responsibly and competitively, ensuring that progress leaves no one behind.

LAHORE (ILO News) - Small and medium-sized enterprises (SMEs) from Pakistan's textile and automotive sectors are stepping up efforts to adopt greener and more sustainable business practices through an initiative led by the International Labour Organization (ILO) and the Employers' Federation of Pakistan (EFP).

The one-day session, "Just Transition and Climate Change: Driving Business Sustainability and Global Market Readiness for SMEs", held at the Luxus Grand Hotel in Lahore, brought together representatives from the textile and automotive sectors, industry associations, and SME owners. The event provided a platform for participants to explore how sustainability, environmental responsibility, and competitiveness can go hand in hand.

Participating enterprises received practical guidance on resource efficiency, cleaner production, and environmental, social and governance (ESG) integration - identifying concrete steps to reduce costs and improve competitiveness.

Through expert-led discussions on Just Transition, Resource Efficient and Cleaner Production (RECP), and Green Compliance, participants learned how aligning with ESG principles can improve operational efficiency and open new market opportunities. The technical session offered practical tools and case studies on how small enterprises can integrate sustainability into business operations and strengthen competitiveness in the face of evolving global requirements such as the EU Green Deal and EU Due Diligence Directives.

Geir Tonstol, Country Director for ILO Pakistan noted that "Enterprises that embed environmental and social responsibility into their business models are not just responding to global pressures - they are securing their future. A just transition means preparing our industries and workers for the opportunities of a green economy, ensuring that progress leaves no one behind. Sustainability is not a cost; it is an investment in long-term competitiveness and resilience for Pakistan's enterprises."

The interactive format encouraged enterprises to identify resource-saving measures, understand international sustainability standards, and develop cost-effective compliance strategies tailored to their realities. Several SMEs also expressed interest in piloting ILO's Just Transition assessment tools to benchmark and enhance their environmental and social performance.

Representing the EFP, Ghulam Mustafa Tabassum reaffirmed the Federation's commitment to helping member organizations adopt sustainable business practices and prepare for global buyer expectations.

The initiative is part of ILO's broader project "Leveraging Market Concentration to Promote Formalization and Just Transition for SMEs and Supply Chains", which works with EFP, Small and Medium Enterprises Development Authority (SMEDA), and sectoral associations to strengthen enterprise competitiveness, improve productivity, and promote decent work. The project aims to build the foundations for greener, more resilient, and inclusive business growth across Pakistan's key industrial sectors.

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