THE Securities and Exchange Commission (SEC) is looking at requiring publicly-listed companies with a market cap and large but non-listed firms to submit an annual sustainability report.
The report will be an attachment to the companies’ annual reportorial submissions, the SEC said in a statement on Monday.
It said the public has until Friday, August 15, to review the draft rules and submit their comments to its office.
Under the draft guidelines, the SEC will require listed companies with market capitalization of over P50 billion as of December 31, 2025 to start submitting the report beginning 2027, as part of their 2026 annual reportorial submission.
Publicly-listed companies with a market capitalization of over P3 billion up to P50 billion as of December 31, 2025, or at the date of their subsequent listing, will report beginning in 2028, covering fiscal year on or after January 1, 2027.
Meanwhile, publicly-listed firms with market capitalization of P3 billion or less as of end-2025, or as of the date of its listing beyond the period, and LNLs with annual revenue of over P15 billion as of the preceding fiscal year, will be required to report in 2029, covering the fiscal year beginning on or after January 1, 2028.
The SEC said it is also looking at implementing mandatory third-party evaluation or limited assurance of greenhouse gas (GHG) emissions for companies directly or indirectly producing greenhouse gas in the course of their business, in line with applicable international standards.
“The (sustainability reporting) Guidelines and Roadmap for PLCs and LNLs serve to encourage sustainable business practices and align company disclosures with international standards to attract Environmental, Social, and Governance (ESG)-focused investors in the Philippine capital market,” the SEC draft read.
“The Guidelines support companies in evaluating and managing their nonfinancial performance, including Economic, Environmental, Social and Governance factors, while also monitoring contributions to global and national sustainability agendas such as the UN Sustainable Development Goals and AmBisyon Natin 2040,” it added.
