The Philippines’ Securities and Exchange Commission (SEC) is planning to make sustainability reporting mandatory for all companies that are listed by 2023.
According to Regulation Asia, the SEC previously issued sustainability reporting guidelines for listed businesses by back in 2019. While currently on a comply or explain basis, the SEC noted a compliance rate among the firms of over 90% in each of the last two years.
SEC commissioner Kelvin Lester K. Lee highlighted sustainability reporting is already mandatory in countries such as Singapore, Malaysia, Indonesia and Thailand, with researchers having identified a positive link between good sustainability practices, higher stock prices and profitability.
The SEC noted that it is also looking to introduce sustainability reporting among unlisted companies on a comply or explain basis, with a mandatory approach adopted some time in the future.
Lee stated that the SEC intends to aid listed companies in preparing for mandatory sustainability reporting by making it easier for them to manage, identify and measure their employee, environmental, social and governance risks and opportunities.
With this considered, the SEC mentioned that it is currently looking to introduce a mechanism that would enable listed firms to communicate with stakeholders while also allowing them to better monitor and measure their contribution towards the United Nations Sustainability Development Goals.
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