Corporate Environmental Liability and ESG Obligations: A Comparative Analysis of Legal Frameworks in Pakistan and South Asia

Abstract

Today, corporate environmental liability and Environmental, Social and Governance (ESG) obligations have become key features of modern environmental law. This paper compares the legal framework of corporate environmental accountability in Pakistan, India, Bangladesh and Sri Lanka and places the South Asian frameworks in the context of the international legal landscape. This paper critically reviews the regulatory framework, enforcement mechanisms, judicial responses and ESG disclosure regimes in each jurisdiction, based on the Pakistan Environmental Protection Act 1997, the National Environmental Quality Standards, the India Environmental Protection Act 1986, the Bangladesh Environment Conservation Act 1995, the National Environmental Act 1980 of Sri Lanka, and international instruments such as the Paris Agreement 2015 and the UN Guiding Principles on Business and Human Rights. The analysis shows that there is a long-standing disconnect between the intent of legislation and the effectiveness of enforcement, due to institutional fragmentation, weak sanctions and the lack of mandatory ESG disclosure frameworks. The paper ends with a model regulatory framework for South Asia, which suggests harmonised mandatory ESG disclosure, extended corporate liability, independent environmental tribunals and transnational enforcement cooperation as tools to fill this gap.

Keywords: Corporate Environmental Liability, ESG, Pakistan Environmental Law, South Asia, Comparative Environmental Law, Mandatory Disclosure, Polluter Pays Principle, UN Guiding Principles

https://doi.org/10.5281/zenodo.21324267