SEC launches Philippine Green Equity Guidelines

Securities and Exchange Commission (SEC) Headquarters in Makati. INQUIRER.net

MANILA, Philippines — Companies with more sustainability initiatives now have another way of attracting investors after the Securities and Exchange Commission (SEC) launched Southeast Asia’s first Green Equity Guidelines.

This allows more capital flows toward businesses that champion sustainability.

The corporate watchdog on Thursday released SEC Memorandum Circular No. 13 Series of 2025. The memo provides eligibility guidelines for companies wishing to carry the Philippine Green Equity label.

This is intended to “enhance the visibility and attractiveness” of companies that actively engage in green activities, according to the SEC.

Once their application is approved, eligible companies may label their shares as green equity before the offering.

Requirements

Under the guidelines, companies wishing to apply must be listed on the Philippine Stock Exchange (PSE) or are preparing to go public.

More than half of their revenues and investments must be earned or directed toward green activities that meet the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) or the Asean Taxonomy for Sustainable Finance.

The SFTG cites renewable energy power plants as an example of an eligible project. That is, as long as there are no Philippine laws being violated in such a facility’s operations and development.

Companies likewise need to make sure their revenues derived from fossil fuels are limited to less than 5 percent.

READ: SEC, IFC team up to boost ‘green’ financing

‘Game-changing’

“The issuance of the SEC Green Equity Guidelines is a game-changing initiative that will help develop the capital market not only by boosting liquidity but also by supporting our climate goals,” SEC Chair Francis Lim said in a statement.

“This also positions the country as an emerging destination for foreign investors seeking credible, transparent and meaningful green investments,” he added.

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The SEC requires a formal letter of application requesting the Green Equity label, an assessment report from an independent reviewer and latest audited financial statements, among others.

The regulator will have 45 days to evaluate the application once submitted.

A year after being granted the label, companies are required to submit to the PSE a report detailing their compliance with the guidelines, such as the revenue contribution of green activities.