PSE pushes criteria for ‘green equity’ label
The Philippine Stock Exchange (PSE) is seeking market feedback on proposed rules that would allow qualified listed companies to carry a Green Equity Label, as the bourse moves to strengthen transparency around environmentally aligned investments.
Under the draft rules, which are open for comments until Oct. 2, the label may be granted to Philippine-listed companies that can show alignment with environmental objectives through their financials and business activities.
“The Green Equity Label is the designation given to Philippine-listed companies that have proven alignment with environmental objectives, both in their financials and in their business activities,” the PSE said.
The framework implements the Securities and Exchange Commission’s guidelines on Philippine Green Equity issued in 2025.
Qualifications
To qualify, more than 50 percent of a company’s revenues must come from green activities based on its latest audited annual financial statements.
More than 50 percent of its investments, comprising capital expenditure and operating expenditure, must likewise be channeled toward green activities.
Meanwhile, revenues derived from fossil fuels must be kept below 5 percent.
The company’s activities must also meet the eligibility criteria under the Sustainable Finance Taxonomy Guidelines or the Asean Taxonomy for Sustainable Finance.
Companies that seek the label need to submit an assessment report prepared by a PSE-accredited external review provider.
Once complete requirements are received, the PSE would have 45 calendar days to evaluate the application and notify the applicant of its decision.
Companies granted the label would remain subject to continuous monitoring.
They would need to submit an annual assessment report no later than 30 calendar days from the deadline for their audited financial statements, subject to a possible 15-day extension.
Any material changes involving activities in which a company is engaged or invested, as well as other material information relevant to the label, must also be disclosed to the PSE within 10 minutes in accordance with the consolidated listing and disclosure rules.
Cancelation
The PSE may cancel the use of the label after due notice and hearing in cases involving noncompliance, inconsistencies, incomplete disclosures, possible misrepresentation or other matters that could affect the label’s integrity or reputation.
The exchange also plans to maintain an online Green Equity registry that lists companies granted the label and accredited external reviewers.
The proposed rules are still subject to consultation and may change before final approval.
