The Securities and Exchange Commission (SEC) said Thursday it will issue revised Sustainability Reporting (SR) guidelines for publicly-listed companies to reflect the latest developments in the global frameworks.
“In keeping with the commitment to be at the forefront of promoting good corporate governance and aligned with international best practices, the SEC considers it imperative to keep SR regulations responsive to latest global developments,” SEC chairperson Emilio Aquino said.
Under the revised guidelines, publicly listed firms will be mandated to submit sustainability reports in two formats: the SR Narrative and Sustainability Report (SuRe) Form.
The SR Narrative report will be submitted together with the annual report of listed firms.
Listed firms will also be required to submit the duly-answered SuRe Form through the SEC Electronic Filing and Submission Tool (eFAST). Its template comprises three major sections, including Sustainability and Climate-related Opportunities and Risks Exposures (SCORe); Cross-Industry Standard Metrics (CISM); and Industry-Specific Metrics (ISM).
The SuRe Form aims to elevate the quality of sustainability reporting and ensure the consistency of non-financial information submitted by public firms.
“The further development of the SR framework in the country contributes to the creation of a green and blue economy, as well as the establishment of sustainable communities,” said Aquino.
The revised guidelines adopted the latest global advancements in sustainability reporting frameworks, notably the IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) — both of which are fully aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The guidelines also recognize the United Nations Sustainable Development Goals (UN SDGs), Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), International Integrated Reporting Council (IIRC), and the United Nations Conference on Trade and Development (UNCTAD)- International Standards of Accounting and Reporting (ISAR) Guidance on Core Indicators, among other widely-adopted frameworks.
The SEC institutionalized sustainability reporting among corporations in 2019, which mandated listed firms to submit sustainability reports on a “comply or explain” approach. This allowed firms to disclose corporate sustainability data, when available, and provide explanations for items where there are none.
The adoption of SR across covered entities has been very positive, with an average of 96 percent of listed firms submitting reports annually.
