The Securities and Exchange Commission (SEC) has released new rules to encourage sustainable investments, establishing a “Philippine Green Equity offering” label for companies engaged in environmentally friendly activities.
The guidelines, outlined in Memorandum Circular No. 13, Series of 2025, create a framework for publicly-listed companies that voluntarily align their equity offerings with sustainable finance principles, the SEC said. The initiative also aims to make these companies more visible and attractive to investors.
The move supports the country’s commitment to the United Nations Sustainable Development Goals and the Paris Agreement to reduce global greenhouse gas emissions.
The new “Green Equity” label complements existing sustainable debt instruments, such as green, social, and sustainability bonds. It offers an equity-based alternative for investors focused on environmental outcomes.
To be eligible for the label, a company should meet four key criteria. More than 50 percent of its revenue should come from green activities and over 50 percent of its capital and operating expenditures should support green activities.
Revenue from fossil fuel-related sources should be limited to less than 5 percent. The company’s activities should meet eligibility requirements under either the Philippine Sustainable Finance Taxonomy Guidelines or the ASEAN Taxonomy for Sustainable Finance.
The guidelines are voluntary and do not affect the mandatory listing requirements of the Philippine Stock Exchange. Companies already listed can still apply for the label if they meet all conditions.
The SEC said the initiative aims to direct capital toward businesses and broaden the range of sustainable investment options. It is also expected to accelerate the adoption of sustainable finance taxonomies in corporate strategies and disclosures.
The framework is based on global practices, including the World Federation of Exchanges’ Green Equity Principles, Nasdaq’s Green Equity Designation and the London Stock Exchange’s Green Economy Mark.
