SEC issues new sustainability reporting guidelines for firms

The Securities and Exchange Commission (SEC) has issued new sustainability reporting guidelines for publicly listed companies and large non-listed entities that are in line with global practices.

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Through the issuance of Memorandum Circular (MC) 16, Series of 2025, the SEC has adopted the Philippine Financial Reporting Standards (PFRS) on sustainability disclosures, setting clear guidelines that will help covered companies prepare and submit sustainability reports in line with international standards.

“The adoption of the PFRS on sustainability disclosures underscores our commitment to high-quality, comparable and globally aligned sustainability reporting,” SEC chairperson Francis Lim said.

“By elevating the standards of sustainability reporting in the Philippines, we hope to enable more companies and stakeholders to better understand the financial impacts of sustainability-related risks and opportunities, supporting long-term value creation and improved capital allocation decisions,” he said.

The SEC said the PFRS on sustainability disclosures is aligned with the international financial reporting standards issued by the International Sustainability Standards Board, which have been adopted by other ASEAN capital markets including Singapore, Thailand, Malaysia and Indonesia.

The new circular repeals SEC MC 4, Series of 2019, which only required publicly listed companies to submit sustainability reports.