SEC Issues Guidelines on Philippine Green Equity

The Securities and Exchange Commission (SEC) has issued Memorandum Circular No. 13, Series of 2025, introducing the Guidelines on Philippine Green Equity to promote environmentally sustainable investments in the local capital market.

 

The new framework establishes the Philippine Green Equity Label, a designation for publicly listed companies that derive a substantial portion of their revenue and investments from activities aligned with the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) and the ASEAN Taxonomy for Sustainable Finance (ATSF). The initiative supports the country’s commitments under the UN Sustainable Development Goals and the Paris Agreement.

 

To qualify, companies must meet four main criteria: (1) at least 50% of revenue and 50% of investments must come from green activities; (2) fossil fuel revenues must be below 5%; and (3) activities must align with the SFTG or ATSF.

 

Applications for the label require an independent external review to verify compliance, with assessment reports made publicly available. Companies with the label must also submit annual disclosures to the Philippine Stock Exchange (PSE), which will monitor ongoing compliance and maintain a public registry of Green Equity companies.

 

The SEC may suspend or revoke the label for non-compliance or misrepresentation. A one-year transition period allows initial applicants time to align fully with the taxonomy standards.

 

Signed by SEC Chairperson Francisco Ed. Lim, the Guidelines aim to expand the country’s sustainable investment options and strengthen investor confidence in environmentally responsible enterprises.

 

To see the full text of the SEC Guidelines On Philippine Green Equity, you may visit this link: SEC MC No. 13, series of 2025.