Philippines Mandates IFRS-Based Sustainability Reporting for Listed and Large Companies

The Philippine Securities and Exchange Commission has adopted the Philippine Financial Reporting Standards (PFRS) on Sustainability Disclosures, based on IFRS S1 and S2, establishing mandatory sustainability and climate reporting requirements for large and listed companies beginning with 2026 fiscal year data. Publicly listed companies with a market capitalisation of P50 billion (US$840 million) or more must start reporting in 2027.

The Commission's tiered rollout requires publicly listed companies with market capitalisation greater than P50 billion (US$840 million) to report from 2027 covering 2026 data, followed by listed companies with market capitalisation above P3 billion in 2028, and all other listed companies plus large non-listed companies with revenues above P15 billion (US$250 million) from 2029 covering 2028 data. Transitional reliefs include a two-year exemption from mandatory Scope 3 emissions disclosure, the ability for Tier 1 and 2 companies to disclose only climate-related risks and opportunities in their first year, and a mandatory limited assurance requirement on Scope 1 and 2 GHG emissions beginning two years after a company starts reporting.

The Philippines' adoption of IFRS-based sustainability standards places it among several ASEAN markets including Singapore, Thailand, Malaysia and Indonesia that are aligning domestic disclosure frameworks with the ISSB's global baseline. This regional alignment has significant commercial implications as companies within ASEAN supply chains face increasing expectations from multinational buyers and international investors to report in a consistent, internationally comparable format. For Indian companies with regional operations or business relationships in the Philippines and ASEAN more broadly, the convergence of sustainability reporting standards across the region creates both compliance expectations and a more uniform basis for comparative performance assessment.

SEC Chairperson Francis Lim said the adoption of PFRS on Sustainability Disclosures underscores the Commission's commitment to high-quality, comparable and globally aligned sustainability reporting. Around 40 jurisdictions globally have already started the process of using ISSB standards. The Philippines' framework includes mandatory limited assurance on Scope 1 and 2 emissions, reflecting a growing global expectation that sustainability data will be subject to the same verification standards as financial information. The tiered implementation schedule provides companies with planning lead time while ensuring the largest market participants begin reporting at the earliest opportunity.

Key figure — P50 billion (US$840 million) market cap threshold for first reporting cohort