The Securities and Exchange Commission (SEC) said it will begin stricter sustainability reporting rules for listed companies as part of its reform efforts.
SEC Chairman Francis E. Lim said the move responds to growing investor demand for clearer and more reliable information on companies’ environmental, social, and governance practices.
Starting in 2026, the SEC will roll out the new rules in phases, beginning with the largest listed firms and expanding to the rest of the market by 2029. The plan includes transition support and assurance requirements to balance strict standards with practical implementation.
Lim said sustainability risks—such as climate issues, governance problems, and social concerns—are now measurable and increasingly influence investment decisions.
The reform will also be part of broader SEC changes, including proposed term limits for independent directors and broker directors at the Philippine Stock Exchange.
The SEC acknowledged that companies are at different stages of readiness. Some firms already provide structured sustainability disclosures, while others are still transitioning from general statements to more detailed, data-driven reports.
Lim also highlighted the role of the media in checking the accuracy of company disclosures, stressing that reports should go beyond simple compliance.
Meanwhile, Roel A. Refran said current rules require mining firms to have sustainability reports certified by an accredited expert, but similar requirements are not yet in place for other sectors.
Non-mining firms are expected to follow standards set by the International Sustainability Standards Board, which was created by the IFRS Foundation to develop global sustainability disclosure guidelines.
Officials warned that misleading sustainability claims—often called “greenwashing”—could harm investors if companies fail to accurately report their risks and opportunities.
