BSP boosts sustainability reporting rules
The Bangko Sentral ng Pilipinas (BSP) is moving to require banks to apply Philippine Financial Reporting Standards (PFRS) in sustainability reporting, in a bid to strengthen market discipline and improve how lenders assess long-term risks and resilience.
Under a draft circular, the central bank proposes amendments to its Manual of Regulations for Banks to mandate the adoption of PFRS S1, which sets general requirements for sustainability-related disclosures, and PFRS S2, which covers climate-related financial reporting.
The Securities and Exchange Commission has already issued its own guidelines adopting the two standards, which are aligned with international rules developed by the International Sustainability Standards Board.
The BSP said the initiative is intended to harmonize regulatory reporting across the financial system, improve the quality and comparability of sustainability data, as well as help stakeholders better evaluate banks’ risks, opportunities and resilience.
“The Bangko Sentral continues to advance its sustainable finance agenda, recognizing the financial system’s critical role in supporting environmental, social, and governance (ESG) objectives,” the BSP said.
The proposed rules will be rolled out in phases, with a tiered implementation schedule for universal and commercial banks based on size and market capitalization.
Adoption will begin in 2027 for tier 1 lenders, defined as publicly listed banks with market capitalization above P50 billion as of end-2025, followed by other institutions in subsequent phases, as the central bank seeks to build capacity and align with global benchmarks.
For privately held thrift, rural, cooperative, digital and Islamic banks, the draft circular sets tailored requirements, retaining existing disclosure items under the Manual of Regulations for Banks with slight modifications.
BSP staff estimates showed that cumulative issuances of green, social, sustainability and sustainability-linked bonds by Philippine banks had reached P664.7 billion in 2025. The amount consisted of P531.5 billion in sustainability bonds, P70.9 billion in green bonds, P56.5 billion in social bonds and P5.9 billion in blue bonds.
These fundraising activities, along with reverse repurchase and interbank borrowings, supported liability diversification, cost management and longer funding tenors, the central bank said.
