The Securities and Exchange Commission has issued new sustainability reporting guidelines expanding requirements for publicly-listed companies and large non-listed firms to align with international standards.
Under Memorandum Circular 16, Series of 2025, the new rules adopt the Philippine Financial Reporting Standards on sustainability.
These standards are aligned with those issued by the International Sustainability Standards Board and used in regional markets including Singapore, Thailand, Malaysia and Indonesia, the SEC said.
It said it would implement a tiered adoption process starting in fiscal year 2026. Tier 1 includes publicly-listed companies with a market capitalization exceeding P50 billion as of Dec. 31, 2025, with reporting due in 2027.
Tier 2 covers listed firms with a market capitalization between P3 billion and P50 billion, starting in 2028.
Tier 3 applies to smaller listed entities, firms with only debt securities listed and non-listed entities with annual revenues exceeding P15 billion, also beginning in 2028.
SEC chairman Francisco Lim said the adoption of the standards underscores a commitment to high-quality, comparable and globally aligned reporting.
Lim said elevating these standards would help stakeholders understand the financial impacts of sustainability-related risks and opportunities.
Covered companies should submit sustainability reports approved by their boards of directors. For those under the Securities Regulation Code, the report serves as an attachment to the annual report, while other large non-listed entities should submit it alongside audited financial statements.
To facilitate the transition, the commission is allowing companies to use existing frameworks for fiscal year 2025 before the mandatory requirements take effect.
