Philippines to begin implementing mandatory sustainability reporting by 2026

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🗞️ Driving the news: The Philippine Securities and Exchange Commission (SEC) has announced that mandatory sustainability reporting for publicly listed companies will begin in 2026
• This year, the SEC will conduct a market readiness study and implement a transitional approach to help firms comply
• The initiative aims to standardize corporate disclosures on environmental, social, and governance (ESG) performance

🔭 The context: Currently, Philippine companies follow a “comply or explain” policy, allowing them to defer ESG disclosures with justification
• The move towards mandatory reporting aligns the country with global trends in corporate sustainability transparency
• The SEC aims to enhance investor confidence and corporate accountability through stricter ESG reporting standards

🌍 Why it matters for the planet: Mandatory reporting will push corporations to be more transparent about their environmental and social impact
• Increased disclosure can lead to better sustainability practices, reducing corporate contributions to climate change and social inequalities
• This regulation supports broader climate accountability efforts in the region

⏭️ What's next: The SEC will assess corporate preparedness through a market study before implementing full enforcement
• Companies will need to adapt their reporting frameworks and align with international ESG standards
• Further regulatory developments may shape the final implementation of the mandate

📈 One stat: As of 2023, over 90% of publicly listed companies in the Philippines have submitted sustainability reports under the SEC’s “comply or explain” framework. However, a 2022 study by PwC Philippines found that only 27% of these companies set measurable carbon reduction targets, highlighting the gap between disclosure and concrete climate action

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