DefinePK

Research Objective

To evaluate the multidimensional poverty index (MPI) of people associated with the transport section of different corporate sectors of Pakistan, along with calculations of ESG scores and carbon emissions of those sectors, and to explore the relationship between MPI, CO2 emissions, and ESG scores.

Methodology

A study was conducted on three corporate sectors in Pakistan: Oil and Gas (O&G), Beverages (Bev), and Waste Management (WM). A sample of 150 households from the transport section of these sectors was selected. MPI was calculated using education, health, and standard of living as dimensions. ESG scores were calculated using MSCI's valuation method. CO2 equivalent emissions were calculated based on fuel consumption and emission factors. Linear regression and Principal Component Analysis (PCA) were used to analyze the relationships between ESG, MPI, and emissions.

Methodology Flowchart

                        graph TD;
    A["Select Corporate Sectors O&G, Bev, WM"] --> B["Sample Households from Transport Section"];
    B --> C["Collect Data via Questionnaires"2021-2023""];
    C --> D["Calculate MPI"];
    C --> E["Calculate ESG Scores"];
    C --> F["Calculate CO2 Emissions"];
    D --> G["Analyze Relationships"];
    E --> G;
    F --> G;
    G --> H["Linear Regression"];
    G --> I["Pearson Correlation"];
    G --> J["PCA"];
    H --> K["Report Findings"];
    I --> K;
    J --> K;                    

Discussion

The study highlights a disconnect between the increasing ESG claims of corporate sectors in Pakistan and their actual environmental impact, as evidenced by the insignificant relationship between ESG scores and emissions. The findings suggest that corporate sectors are increasing their transport activities, leading to higher profits and emissions, while simultaneously claiming improved ESG performance. This trend is associated with escalating poverty in the transport sector, indicating a lack of social input from these corporations. The results contradict theoretical assumptions that increased emissions should correlate with higher ESG scores.

Key Findings

MPI values showed an increasing trend from 2021-2023 across the studied sectors, with the Bev sector having the highest MPI in 2023. Transport emissions (CO2 equ) also showed a gradual increase over the period, with the O&G sector showing a significant jump in 2023. ESG scores exhibited an increasing trend annually, with the WM sector having the highest average ESG scores in 2023. Regression analysis indicated an insignificant relationship between ESG and emissions, while Pearson correlation analysis revealed a strong positive relationship between MPI and emissions, and a negative relationship between ESG and emissions. PCA indicated that MPI explained the highest variation in PC1, followed by emissions.

Conclusion

Corporate sectors in Pakistan have increased their transport activities, leading to higher emissions and profits, alongside claims of improved ESG scores. However, this has coincided with an increase in multidimensional poverty among individuals in the transport sector. The study concludes that there is a discrepancy between reported ESG achievements and actual environmental and social outcomes, with a need for greater social responsibility from the corporate sector.

Fact Check

1. Pakistan's Air Quality Ranking: The text states Pakistan is the second most polluted country after Bangladesh, with an average air quality index (AQI) of 153, which is five times higher than WHO recommendations.
2. Transport Sector's Contribution to Global Energy Demand: The text mentions that the transport sector consumes about 25% of global fossil fuels.
3. CO2 Emissions Increase (1990-2019): The text states that transport carbon dioxide (TCO2) emissions reached 8.25 trillion tons in 2019, an increase of about 80% between 1990 and 2019.

Mind Map