The Philippine Securities and Exchange Commission (SEC) has formally adopted the Philippine Financial Reporting Standards (PFRS) on Sustainability Disclosures, establishing mandatory sustainability and climate reporting requirements for large and listed companies in alignment with international IFRS standards.

Under the new framework, sustainability disclosures will be based on PFRS S1 (general sustainability-related financial information) and PFRS S2 (climate-related disclosures), which correspond to the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2 standards. Reporting obligations will be introduced on a tiered timeline: the largest publicly listed companies (market cap over ₱50 billion) must start reporting in 2027 for fiscal year 2026, followed by mid-cap listed firms in 2028, and all other listed companies and large non-listed firms (annual revenues > ₱15 billion) in 2029.

To support the transition, the SEC has instituted transitional reliefs, including deferrals on Scope 3 emissions reporting for two years and phased disclosure requirements for climate risks and opportunities across tiers. Additionally, companies will be required to implement limited assurance on Scope 1 and Scope 2 greenhouse gas emissions by an independent assurance practitioner two years after commencing reporting.

SEC Chairperson Francis Lim highlighted that the adoption of PFRS sustainability standards reinforces the Commission’s commitment to high-quality, comparable, and globally aligned sustainability reporting in the Philippines.