The Philippines’ Securities and Exchange Commission has introduced new sustainability reporting rules for listed companies and large private firms, bringing the country’s disclosure framework closer to international standards.
Under Memorandum Circular 16, Series of 2025, the regulator has adopted the Philippine Financial Reporting Standards (PFRS) for sustainability disclosures. These standards are aligned with those issued by the International Sustainability Standards Board and already used in several ASEAN markets, including Singapore, Malaysia and Thailand.
SEC chair Francis Lim said the new rules are designed to improve the quality and comparability of sustainability information, helping investors better understand how climate and other sustainability risks affect companies’ financial performance and long-term value.
The updated rules replace earlier guidance that applied mainly to listed firms. Going forward, all publicly listed companies and large non-listed entities must submit sustainability reports that have been reviewed and approved by their boards. Listed companies will file these reports as part of their annual reporting, while large private firms will submit them together with their audited financial statements.
The new standards will be introduced in phases. Large listed companies will be required to start reporting first, followed by mid-sized listed firms, with smaller listed companies and large private entities coming in later. Full adoption will take place between 2027 and 2028, depending on company size.
The rules focus on two core areas:
- PFRS S1, which covers general sustainability-related financial information
- PFRS S2, which focuses specifically on climate-related risks and opportunities
The SEC said it has included transition measures to give companies time to adjust, while encouraging more consistent, decision-useful sustainability reporting for both domestic and international investors.
