The Bangko Sentral ng Pilipinas (BSP) is pushing to adopt sustainability-related financial reporting standards as early as 2027 to harmonize regulatory reporting requirements and improve the quality of sustainability information.
The BSP, in a draft circular, proposes amendments to the sustainability-related disclosure requirements under Section 153 of the Manual of Regulations for Banks (MORB). These amendments seek to adopt general requirements for disclosure of sustainability-related financial information (PFRS 1) and climate-related disclosures (PFRS 2), building on earlier guidelines issued by the Securities and Exchange Commission on Philippine Financial Reporting Standards.
The proposed guidelines introduce a tiered implementation schedule based on market capitalization and size for universal and commercial banks (UKBs) and publicly listed banks.
Tier 1 covers publicly listed banks with market capitalization exceeding P50 billion as of the listing date after or as of December 31, 2025. These banks should implement the standards for the fiscal year beginning on or after January 1, 2026, with the first reporting due in 2027.
Tier 2 includes publicly listed banks with market capitalization of more than P3 billion up to P50 billion, as well as non-listed UKBs with capital exceeding P50 billion. The BSP proposes implementation for the fiscal year beginning on or after Jan. 1, 2027, with the first reporting scheduled in 2028. Tier 3 covers publicly listed banks with market capitalization of P3 billion or less.
