SEC proposes PSE takeover of green equity labeling
The Philippine Stock Exchange (PSE) may soon take over green equity certification under a regulatory proposal to make approvals easier for listed companies.
The Securities and Exchange Commission (SEC) said Tuesday it plans to transfer the authority to evaluate applications and grant green equity labels to the PSE, giving the bourse a bigger role in overseeing companies with environmentally sustainable business activities.
Under the proposed amendments to the Philippine Green Equity Guidelines issued for public comment on 8 October, the PSE would assume functions currently handled by the SEC’s Markets and Securities Regulation Department.
The proposed transfer is intended to reduce regulatory duplication, speed up the evaluation process, and consolidate green equity certification with the exchange’s existing monitoring responsibilities.
The SEC said the move would also align the Philippines with international practices, particularly the World Federation of Exchanges’ Green Equity Principles, which recognize the role of stock exchanges in administering green classifications.
Similar systems are already in place through Nasdaq’s Green Equity Designation and the London Stock Exchange’s Green Economy Mark.
The proposed rules would also allow the PSE to establish a formal accreditation system for external reviewers tasked with assessing listed companies’ compliance with green equity standards.
The exchange would likewise be responsible for monitoring these external review providers.
Meanwhile, the SEC is proposing to extend the transition period for compliance with sustainability classification requirements until 31 December, from the original September 23 deadline.
The extension would give listed companies more time to align with the Philippine Sustainable Finance Taxonomy Guidelines or the ASEAN Taxonomy for Sustainable Finance.
During the transition period, administrative penalties and sanctions would not apply, although applicants would still be required to disclose how their covered green activities substantially contribute to at least one environmental objective under either framework.
Full compliance with the applicable taxonomy requirements would become mandatory beginning fiscal year 2027 for the initial issuance, retention, or renewal of the Philippine Green Equity Label.
The proposed amendments would revise SEC Memorandum Circular No. 13, Series of 2025, which established Southeast Asia’s first green equity guidelines.
The SEC is accepting public comments on the proposed revisions until 19 October.