Philippines Joins Global Movement With Mandatory Corporate Sustainability Reporting by 2026

Philippines Joins Global Movement With Mandatory Corporate Sustainability Reporting by 2026

By
Chris Wilson

Publish Date:May 12, 2025

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📰 The quick summary: The Philippines will require publicly listed companies to submit mandatory sustainability reports by 2026, aligning the country with global standards and enhancing corporate accountability and transparency on environmental, social, and governance matters.
📈 One key stat: Companies must obtain limited assurance verification by 2028-2030 depending on their size, significantly improving the reliability and credibility of sustainability data for investors and stakeholders.
💬 One key quote: “Greenpeace welcomed the announcement but emphasized that it should be only the first step toward stronger regulations, including the passage of the Climate Accountability Bill (CLIMA Bill).”

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1️⃣ The big picture: The Philippines is implementing a new sustainability reporting law requiring all publicly listed companies to submit mandatory reports on their environmental, social, and governance practices by 2026. The Securities and Exchange Commission (SEC) will roll out these requirements gradually, with large companies complying first in 2026, followed by mid-sized firms in 2027, and small to medium enterprises in 2028. Based on guidelines from the International Sustainability Standards Board, the law aims to bring Filipino corporate disclosures in line with global standards. This initiative places the Philippines among several Southeast Asian nations that have already adopted similar requirements, addressing a growing demand from international investors for transparent ESG information.

2️⃣ Why is this good news: This law creates a standardized framework for measuring and reporting environmental impacts, enabling investors to make more informed decisions about corporate sustainability practices. Businesses embracing these standards gain competitive advantages in attracting socially responsible investment while improving their risk management systems. The digital reporting platform being developed will streamline compliance and provide companies with tools for climate risk assessment and social impact analysis. Climate-impacted communities will benefit from greater corporate accountability for environmental impacts, particularly important in the Philippines, which faces severe climate change challenges. The phased implementation approach gives businesses time to adapt while ensuring the country aligns with international financial market expectations.

3️⃣ What’s next: The SEC will conduct a market readiness study this year to identify potential implementation challenges and determine if temporary exemptions are needed. Companies must prepare for digital reporting through the upcoming SEC SuRe Framework Application platform, which launches in the coming months. Full adoption of the reporting standards, including limited assurance verification, must be completed by all publicly listed companies by 2030.

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Read the full story here: Happy Eco News – Philippine Sustainability Reporting Law to Take Effect by 2026

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