Phl pushes major upgrade in sustainability reporting

The Securities and Exchange Commission (SEC) has launched a nationwide effort to overhaul the country’s sustainability reporting framework.

Through its partnership with the United Nations Conference on Trade and Development (UNCTAD), the SEC kicked off the UNCTAD Development Account 16th Tranche Project this month for a more transparent reporting that investors increasingly demand.

SEC Commissioner Javey Paul D. Francisco said markets are now rewarding companies that demonstrate credible sustainability readiness. 

“As markets continue to evolve, there is a growing need for reporting that is reliable, comparable, and decision-useful. 

Investors, regulators, and other stakeholders are looking not only at financial performance, but also at how companies identify and respond to sustainability-related risks and opportunities,” he said.

He added that the SEC has already begun aligning its framework with global standards through the Philippine Sustainability Disclosure Standards under SEC Memorandum Circular No. 16, Series of 2025. 

“We have therefore been moving from policy direction to practical implementation,” he said.

A key element of the initiative is the rollout of UNCTAD’s Accounting Development Tool, which will map out the strengths and weaknesses of the country’s financial and sustainability reporting infrastructure. 

The assessment—conducted through surveys, consultations, and workshops—will guide policy reforms and set clearer expectations for companies on disclosure quality.