The Securities and Exchange Commission has officially moved the power to grant the Philippine Green Equity Label to the Philippine Stock Exchange, aiming to simplify procedures and bring local practices in line with global standards. Under the new arrangement, the authority to review applications and issue the label shifts from the SEC’s Markets and Securities Regulation Department to the PSE. This change builds on the exchange’s existing oversight duties, cutting down overlapping tasks and making the entire application and evaluation process faster and more straightforward.
This delegation follows the exchange-led approach set out in the World Federation of Exchanges’ Green Equity Principles, which recognizes stock exchanges as key players in managing green classification systems for listed shares. It also mirrors established practices at major international markets, including Nasdaq’s Green Equity Designation and the London Stock Exchange’s Green Economy Mark. The updated framework also gives the PSE responsibility for accrediting external reviewers and overseeing their work in checking whether listed companies meet the green equity criteria.
To help market participants adjust, the SEC is proposing to extend the transition period for full compliance with the Philippine Sustainable Finance Taxonomy Guidelines or the ASEAN Taxonomy for Sustainable Finance until the end of this year. No administrative penalties will be issued during this transition time, though applicants must still show how their green activities contribute clearly to at least one environmental goal under either guideline. Full compliance will become mandatory starting fiscal year 2027 for anyone applying for, keeping, or renewing the Philippine Green Equity Label. The SEC is open to public comments on the proposed rules until October 19.
