MANILA -Keeping up with global best practices is top of mind for the Securities and Exchange Commission (SEC) as it announced plans to upgrade its sustainability guidelines for publicly traded companies.
The corporate regulator is seeking public comments on the guidelines, which it said would contribute “to the creation of a green and blue economy, as well as the establishment of sustainable communities.”
“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 sustainability reporting regulations responsive to latest global developments,” SEC Chair Emilio Aquino said in the statement.
Under the new guidelines, listed firms will be required to submit sustainability reports in two formats: the sustainability report narrative, and sustainability report (SuRe) form.
The narrative report should be submitted together with the company’s annual report, the SEC said.
The SuRe form, on the other hand, will be submitted through the SEC Electronic Filing and Submission Tool online platform.
Its template comprises three major sections: sustainability and climate-related opportunities and risks exposures; cross-industry standard metrics; and industry-specific metrics (ISM).
Separate guidelines for ISM, which largely considered the existing Philippine Standard Industrial Classification, will be released at a later time, the SEC said.
“The SuRe Form aims to elevate the quality of sustainability reporting and ensure the consistency of nonfinancial information submitted by publicly listed companies,” the SEC added.
READ: SEC to streamline sustainability reporting standards
The guidelines were partly based on the latest global advancements in sustainability reporting frameworks. These include the IFRS S1 (general requirements for disclosure of sustainability-related financial information) and IFRS S2 (climate-related disclosures).
Moreover, the guidelines recognize the United Nations Sustainable Development Goals, Global Reporting Initiative, Sustainability Accounting Standards Board, International Integrated Reporting Council and the UN Conference on Trade and Development International Standards of Accounting and Reporting Guidance on Core Indicators.