The Philippine Securities and Exchange Commission (SEC) has formally adopted the Philippine Financial Reporting Standards (PFRS) on Sustainability Disclosures, introducing mandatory sustainability and climate-related reporting requirements for large and listed companies in the Philippines.
The new standards are based on the International Sustainability Standards Board (ISSB) framework issued by the IFRS Foundation and mark a major step toward globally aligned sustainability reporting.
What Has Been Introduced
The SEC has adopted two core sustainability disclosure standards:
- PFRS S1 – Sustainability-related Disclosures, covering material sustainability risks and opportunities affecting enterprise value
- PFRS S2 – Climate-related Disclosures, focused on climate governance, strategy, risk management, and emissions
These standards mirror ISSB’s IFRS S1 and IFRS S2, released in June 2023.
Phased Implementation Timeline
The SEC has confirmed a tiered rollout approach:
- 2026
Publicly listed companies with market capitalisation above PHP 50 billion - 2028
Other publicly listed companies with market capitalisation above PHP 3 billion - 2029
All remaining publicly listed companies and large non-listed companies with annual revenue above PHP 15 billion
Assurance Requirements
- Limited assurance on Scope 1 and Scope 2 greenhouse gas emissions
- Applicable two years after an entity begins reporting
Transitional Reliefs
To support implementation, the SEC has introduced transitional provisions:
- Scope 3 emissions disclosures deferred for two years
- Tier 1 and Tier 2 entities may disclose climate-related risks for the first year only
- Tier 3 entities may receive up to two years of additional relief
Why This Matters
The move strengthens the quality, comparability, and consistency of sustainability disclosures in the Philippines and aligns the country with a broader ASEAN shift toward IFRS-based sustainability reporting, alongside Singapore, Malaysia, Thailand, and Indonesia.
How EcoActive Supports Climate Reporting Readiness
EcoActive supports organisations preparing for IFRS-aligned sustainability reporting by providing:
- A centralised platform for sustainability and climate data management
- Structured support for IFRS S1 and IFRS S2–aligned disclosures
- Traceability and validation across climate metrics and emissions data
- Readiness for assurance and audit workflows as reporting becomes mandatory
Call to Action
Prepare for mandatory IFRS-based sustainability reporting in the Philippines.
👉 Discover how EcoActive supports climate and sustainability disclosure readiness. Book a Demo
