SEC adopts new rules on sustainability reporting
The Securities and Exchange Commission (SEC) has issued new sustainability reporting guidelines aligned with international standards, expanding the scope of companies required to submit sustainability disclosures.
In a statement on Monday, the SEC said it adopted the Philippine Financial Reporting Standards (PFRS) on Sustainability Disclosures through Memorandum Circular No. 16, Series of 2025, issued on Dec. 22.
The rules apply to publicly listed companies and large nonlisted entities.
The new rules, which will be implemented in phases starting fiscal year 2026, are expected to standardize how Philippine firms report sustainability- and climate-related risks and opportunities to investors and regulators.
The new framework adopts PFRS S1, which covers general requirements for sustainability-related financial disclosures, and PFRS S2, which focuses on climate-related disclosures.
These standards are aligned with those issued by the International Sustainability Standards Board and already adopted by other Asean markets, including Singapore, Thailand, Malaysia and Indonesia.
SEC Chair Francis Lim said the move underscores the regulator’s commitment to high-quality, comparable and globally aligned sustainability reporting.
“By elevating the standards of sustainability reporting in the Philippines, we hope to enable more companies and stakeholders to better understand the financial impacts of sustainability-related risks and opportunities, supporting long-term value creation and improved capital allocation decisions,” Lim added.
