The Securities and Exchange Commission on Thursday has revised the sustainability reporting mandate for publicly listed companies to reflect the latest developments in global sustainability frameworks.
It issued a draft memorandum circular seeking public comment on the revised SR guidelines looking to update sustainability reporting rules under SEC Memorandum Circular No. 4, Series of 2019.
“In keeping with the commitment to be at the forefront of promoting good corporate governance, and aligned with international best practices, the SEC considers it imperative to keep SR regulations responsive to latest global developments,” SEC chairman Emilio B. Aquino said.
“The further development of the SR framework in the country contributes to the creation of a green and blue economy, as well as the establishment of sustainable communities,” he said.
Under revised guidelines, listed firms are mandated to submit sustainability reports in two formats—the SR narrative and the sustainability report form.
On the former, listed firms submit a narrative report following the format outlined in MC 4 to be submitted in conjunction with the company’s annual report.
Listed firms are required to submit duly filled up SuRe Forms via the SEC electronic filing and submission tool (eFAST) using templates with three major sections on sustainability and climate-related opportunities and risks exposures, cross-industry standard metrics, and industry-specific metrics.
Separate guidelines for industry-specific metrics which considers the Philippine Standard Industrial Classification will be released later, the SEC said.
The form aims to elevate the quality of sustainability reporting and ensure the consistency of non-financial information submitted by listed firms.
The revised guidelines also consider the latest global advancements in sustainability reporting frameworks, notably the IFRS S1 on General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 on Climate-related Disclosures.
Both are fully aligned with the recommendations of the Task Force on Climate-related Financial Disclosures, the SEC said.
The SEC institutionalized sustainability reporting in 2019 through MC 4, which mandated listed companies to submit sustainability reports on a comply or explain approach.
This allowed listed firms to disclose corporate sustainability data when available and provide explanations for items where there are none.
