SEC Mandatory Sustainability Reporting
SEC Mandatory Sustainability Reporting: philippine stock exchange-listed companies must file mandatory ifrs s1/s2-aligned sustainability and climate reports, including scope 1 and 2 emissions, from fiscal year 2025.
What it is
SEC Mandatory Sustainability Reporting is the Philippine Securities and Exchange Commission's framework requiring listed companies to disclose environmental, social, and governance information. Established under SEC Memorandum Circular 4-2019, it began as a voluntary comply-or-explain regime and transitions to mandatory reporting from fiscal year 2025.
The updated framework is aligned with the IFRS Sustainability Disclosure Standards (IFRS S1 and S2) and TCFD, requiring companies to report climate-related risks and sustainability data alongside their financial disclosures.
Who must comply
The regime applies to all companies listed on the Philippine Stock Exchange, roughly 270 issuers, regardless of size, industry, or ownership structure. Previously these companies could comply or explain non-compliance; from fiscal year 2025 reporting becomes mandatory.
What you must disclose
Companies must disclose environmental, climate-risk (TCFD-aligned), social, and governance data aligned with IFRS S1 and S2. Scope 1 and Scope 2 greenhouse gas emissions are required, and Scope 3 emissions are encouraged where significant. Disclosures cover governance, strategy, risk management, and metrics and targets.
Timeline
The Philippine SEC introduced sustainability reporting under Memorandum Circular 4-2019, running a voluntary comply-or-explain phase from 2019 through 2023.
2024 served as a transition year with updated guidance aligning the framework to IFRS S1 and S2. Mandatory reporting begins for fiscal year 2025, with the first mandatory reports filed in 2026. Quality reviews and exploration of verification requirements are anticipated in the 2028-2030 period.