SEC says sustainability key in assessing listed firms

The Securities and Exchange Commission (SEC) said Thursday that sustainability is becoming a key factor in assessing publicly listed companies as climate risks continue to weigh on financial markets.

Speaking at the Nestlé-led forum “The Pivot: The Road to a net zero future,” held in Mandaluyong City, SEC chief Rogelio Quevedo said sustainability should be treated as “a capital markets issue,” citing financial risks from climate-related impacts, whether physical or tied to the transition.

He said companies’ environmental practices — including sourcing inputs and managing waste — affect financial performance and investor demand.

“This is why the Commission has been advancing sustainability reporting requirements for publicly listed companies,” he said. “Disclosure is how markets process information, and for markets to function well, that information has to be complete and material.”

Best practices

Executives and stakeholders from food, beverage and retail firms discussed net-zero strategies during the forum.

For Nestlé Philippines CEO Mauricio Alarcon, sustainability is tied to the company’s long-term growth, citing its reliance on natural resources and calling for joint action across sectors. Nestlé senior vice president Jose Uy III said the company is integrating environmental, social and governance practices into operations, including the use of 100% renewable electricity in offices and efforts to reduce plastic waste.

Meanwhile, Jollibee Foods Corp. (JFC) works with smallholder farmers through its Farmer Entrepreneurship Program, which links them directly to JFC subsidiaries as vegetable suppliers, provided they meet quality and safety standards.

“We treat our farmers with the same level as every other supplier within the Jollibee Group. To achieve this, and to elevate our partner farmers to meet high standards of institutional markets,” said JFC sustainability director Elise Veloso.

Gap noted

Quevedo said there remains a gap between sustainability targets and implementation, as some companies continue to face challenges in finding partners to meet their goals. He added that the Commission will continue refining its environmental, social and governance disclosure framework and aligning it with international standards.

“Our goal is a framework that is rigorous enough to be meaningful and practical enough to be workable,” Quevedo said.