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Philippines in the Global ESG Landscape: How Local Regulations Align with IFRS and International Standards

Explore how the Philippines ESG landscape aligns with IFRS and global standards. Learn what SEC regulations mean for corporate governance and sustainability reporting.

Updated September 2025

The Philippines ESG landscape is evolving rapidly. What began as voluntary sustainability reporting under SEC Memorandum Circular No. 4, s. 2019 has grown into more formalized requirements under SEC MC No. 10, s. 2022. 

These local rules are now converging with international frameworks—most notably the IFRS Sustainability Disclosure Standards (IFRS S1 and S2) and the Task Force on Climate-related Financial Disclosures (TCFD).

For Philippine businesses, this alignment signals a new era: ESG disclosures are no longer about compliance alone but about meeting the expectations of global investors, regulators, and stakeholders.

Stay ahead of both local and global ESG requirements. 

The Local ESG Reporting Landscape

The Securities and Exchange Commission (SEC) of the Philippines has laid the groundwork for ESG transparency:

  • MC No. 4, s. 2019 – Introduced the first Sustainability Reporting Guidelines for Publicly Listed Companies
  • MC No. 10, s. 2022 – Enhanced the framework, requiring more comprehensive disclosures and encouraging large unlisted companies to begin ESG reporting

These circulars emphasize corporate governance, board accountability, and stakeholder engagement—cornerstones that also feature prominently in global standards.

Not sure how SEC rules affect your business?

GCSS, Inc. helps companies navigate Philippine ESG regulations

The Global Push: IFRS and TCFD

Globally, the adoption of IFRS S1 (General Sustainability Disclosures) and IFRS S2 (Climate-related Disclosures) is reshaping corporate transparency. Both standards build directly on the TCFD framework, requiring companies to disclose:

  • Governance – Board oversight of sustainability and climate-related risks
  • Strategy – How ESG and climate risks impact long-term business planning
  • Risk Management – Processes to identify and manage ESG-related risks
  • Metrics & Targets – KPIs that measure progress on emissions, net zero, and other sustainability goals

For companies in the Philippines, aligning with IFRS and TCFD not only ensures compliance but also builds credibility with international investors who compare disclosures across markets.

Comparing Local and Global Standards

The direction is clear: Philippine ESG regulations are designed to align with IFRS and TCFD standards, ensuring local companies can compete globally.

Want to benchmark your ESG disclosures against IFRS and SEC guidelines? 

 Talk to GCSS, Inc. today

Why This Matters for Philippine Companies

The alignment between Philippine ESG rules and international standards offers both challenges and opportunities:

  • Investor access – Global investors demand IFRS-aligned reports before deploying capital
  • Regulatory readiness – Early adoption means fewer headaches as rules tighten
  • Competitive advantage – Companies that integrate ESG into corporate governance will stand out in the ASEAN region and beyond

How to Move Forward

  1. Audit your current ESG reports against SEC MC 10-2022 and IFRS S1/S2
  2. Train your board and executives on corporate governance responsibilities in ESG
  3. Upgrade data systems for consistent, investor-grade reporting
  4. Engage sustainability consultants to ensure compliance while highlighting opportunities like green financing and net zero transitions

Ready to align your ESG reporting with both Philippine and international standards? 

 Book a call with GCSS, Inc. today

Conclusion: The Philippines in the Global ESG Landscape

The Philippines is not lagging—it’s converging. With SEC circulars already echoing IFRS and TCFD, companies that lead now will be seen as credible, resilient, and investment-ready on the global stage.

ESG is not just about compliance—it’s about positioning Philippine businesses for long-term growth and global relevance.

Reach out at sales@gcssinc.com to begin your IFRS- and TCFD-aligned ESG journey. Book your discovery call here and talk to our experts today. 

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Future-proof your reporting today—and lead confidently in the global ESG arena of 2025.

Talk to GCSS, Inc. today