Philippines SEC Sustainability Reporting Guidelines

What is the SEC of the Philippines?

The Securities and Exchange Commission (SEC) of the Philippines is the government regulator responsible for supervising and regulating the country’s capital markets and corporate reporting framework. Among its functions is the development and enforcement of sustainability reporting guide for corporations, particularly publicly listed companies, to improve transparency on environmental, social, and governance (ESG) matters and align company disclosures with investor and stakeholder expectations.

The SEC institutionalized sustainability reporting for Philippine-listed firms through Memorandum Circular No. 4, Series of 2019, also called the Sustainability Reporting Guidelines for Publicly-Listed Companies.

What are the SEC sustainability reporting guidelines?

The SEC sustainability reporting guide is a set of regulatory instructions that require covered companies to prepare and file sustainability reports that disclose non-financial performance across economic, environmental, social, and governance categories.

The original guidelines issued in 2019 follow a “comply or explain” approach, allowing organisations to disclose available data and explain gaps. Currently, the SEC is revising these guidelines to adopt a more structured and standardised reporting format, including a sustainability narrative and a formal reporting template (SuRe Form) that considers global frameworks such as the IFRS S1 and IFRS S2.

Who needs to comply with the SEC sustainability reporting guidelines?

Compliance is currently required for publicly listed companies (PLCs) in the Philippines. PLCs must submit sustainability reports attached to their annual report as mandated by the sustainability reporting guidelines.

Under the draft revised guidelines, this scope may expand in the coming years to include large non-listed entities (LNLs) covered under Section 17.2 of the Securities Regulation Code, with sustainability reporting tied to audited financial statements.

What are the SEC sustainability reporting requirements?

Companies covered by the SEC sustainability reporting guidelines are required to prepare and submit sustainability disclosures that complement their annual financial reporting.

Non-financial disclosures across ESG areas

Companies must report information relating to economic, environmental, social, and governance factors that are relevant to their operations, strategy, and stakeholders.

Materiality-based reporting

Disclosures should focus on sustainability issues that are material to the company’s business, risks, and long-term performance.

Narrative explanations and quantitative data

Sustainability reports should include qualitative discussion of policies, risks, and initiatives, supported by quantitative metrics where available to improve clarity and comparability.

Use of recognised reporting frameworks

Companies are encouraged and expected to align their disclosures with globally recognized sustainability standards to ensure consistency and credibility.

Structured reporting through prescribed templates

Under the revised guidelines, companies will be required to submit structured sustainability information using the SuRe Form, alongside narrative disclosures.

“Comply or explain” approach during transition periods

Where certain data points are unavailable, companies may explain the reasons for non-disclosure, particularly during phased implementation periods.

What is the scope of SEC sustainability reporting?

The scope of sustainability reporting under SEC’s guidelines covers:

Economic performance, value creation, and governance disclosures
Environmental impacts and risks, including resource use and climate-related considerations
Social factors, such as labour practices, community engagement, and stakeholder relations
Risk assessments and opportunities, especially relating to sustainability and climate change
Standardised metrics under sections detailed in the SuRe Form

The guidelines are designed to ensure that sustainability disclosures go beyond narrative description and incorporate comparable metrics, enabling consistent evaluation of corporate sustainability performance.

Why are the SEC regulations important?

The SEC sustainability reporting regulations are important because they improve market transparency, protect investors, strengthen corporate risk management, and align Philippine disclosures with international sustainability standards.

Strengthening transparency and investor confidence

The SEC sustainability reporting regulations require companies to disclose material ESG information alongside financial performance. This enables investors to better assess long-term risks, resilience, and value creation beyond traditional financial metrics, improving decision-making and market confidence.

Aligning Philippines capital markets with global standards

By progressively aligning local sustainability disclosures with internationally recognized frameworks such as the IFRS sustainability disclosure standards, the SEC helps ensure that Philippine companies remain comparable with peers in other markets. This alignment supports cross-border investment and reduces reporting friction for companies with international stakeholders.

Improving corporate risk management and accountability

Mandatory sustainability reporting encourages companies to systematically identify, assess, and manage sustainability-related risks and opportunities, including climate-related and social risks. The reporting process promotes internal accountability, better governance oversight, and more disciplined tracking of non-financial performance.

Supporting national development and sustainability goals

The SEC regulations reinforce the role of the private sector in supporting broader national objectives, including climate resilience, inclusive growth, and responsible business conduct. Consistent sustainability disclosures help regulators and policymakers monitor progress toward national and international commitments, such as the UN’s Sustainable Development Goals.

What is the SEC sustainability reporting template (SuRe Form)?

The Sustainability Report Form (SuRe Form) is the structured template that companies will be required to submit through the SEC’s Electronic Filing and Submission Tool (eFAST) under the revised guidelines. It consists of three major sections:

Sustainability and Climate-related Opportunities and Risk Exposures
Cross-Industry Standard Metrics (CISM)
Industry-Specific Metrics (ISM)

What is the implementation timeline for SEC sustainability reporting?

2019 – Introduction of Sustainability Reporting Guidelines

- - The SEC issued Memorandum Circular No. 4, Series of 2019, requiring PLCs to submit sustainability reports on a comply-or-explain basis alongside their annual reports.

2023-2024 – Draft Revisions and Exposure Drafts

- - In October 2023, the SEC released Draft Revised Sustainability Reporting Guidelines. This included the SuRe Form, with the revisions aiming to align ESG reporting with IFRS S1 and S2, as well as other global standards.

2024-2025 – Phased Roll-Out of New Templates

- - The SEC has indicated that compliance with the revised guidelines and SuRe Form may apply to reporting data covering Financial Year 2024, with submission due in 2025. For reports covering earlier years, companies continue under the 2019 guidelines.

2026 and beyond – Expanded Scope and Formats

- Under draft proposals, mandatory adoption of PFRS S1 and S2 for sustainability reporting is expected from Financial Year 2026, with phased compliance and reporting start dates being based on company size and type.

How Presgo Supports SEC Sustainability Reporting

Presgo supports organizations in meeting the Philippine SEC’s ESG reporting requirements by providing a structured, end-to-end platform aligned with the Sustainability Reporting Guidelines and the SuRe Form. The platform helps companies collect data, assess materiality, prepare disclosures, and generate reports in a consistent and auditable manner.

Data Hub

Centralizes ESG data collection across departments such as finance, operations, HR, and compliance. This is particularly useful for SEC reporting, which requires companies to disclose quantitative and qualitative sustainability information across multiple ESG areas. Built-in data validation and audit trails support internal review and regulatory scrutiny.

Disclosure Hub

Supports the drafting and management of sustainability narratives aligned with regulatory requirements. ESG teams can map disclosures to SEC guideline sections and the SuRe Form structure, helping ensure consistency across reporting cycles while reducing manual interpretation of regulatory text.

Carbon Calculator

Facilitates the calculation and tracking of greenhouse gas emissions, supporting environmental disclosures required under the SEC sustainability guidelines. While climate disclosures are currently phased in, accurate emissions accounting positions companies for deeper climate reporting expectations over time.

Materiality Assessment

Enables structured identification and prioritization of material sustainability topics through stakeholder input and scoring workflows. This module directly supports compliance with the SuRe Form’s materiality disclosures.