The Future of Sustainability Reporting in the Philippines: What Publicly Listed and Large Unlisted Companies Need to Know About SEC Memo Circular No. 10, Series of 2022

Sustainability reporting in the Philippines has rapidly evolved from a “nice-to-have” into a compliance requirement that no forward-looking company can ignore. With the release of the Securities and Exchange Commission’s (SEC) Memorandum Circular (MC) No. 10, Series of 2022—the Revised Sustainability Reporting Guidelines for Publicly Listed Companies—businesses are once again reminded that sustainability, corporate governance, and ESG reporting are no longer optional. They are integral to both regulatory compliance and long-term competitiveness.

But what exactly does this circular mean for your business? And how can Philippine companies prepare for the future of sustainability reporting in line with global standards like the IFRS Sustainability Standards and the Task Force on Climate-related Financial Disclosures (TCFD)?

Why Sustainability Reporting Matters More Than Ever

For years, sustainability in the Philippines was seen largely through the lens of CSR projects and environmental initiatives. Today, the landscape has shifted: investors, regulators, customers, and even employees are demanding greater transparency on ESG performance.

The SEC’s reporting framework emphasizes how companies must disclose not only their financial performance but also the environmental, social, and governance (ESG) impacts of their operations. This isn’t just about compliance—it’s about maintaining investor confidence and securing long-term growth.

Globally, we’ve seen how ESG factors influence capital allocation. Firms with strong sustainability disclosures often enjoy better access to financing, higher valuations, and enhanced reputation. Philippine companies are now being positioned on that same playing field.

From MC No. 4 (2019) to MC No. 10 (2022): The Evolving Framework

The journey began with SEC MC No. 4, Series of 2019, which first required all publicly listed companies (PLCs) to submit annual sustainability reports using the Sustainability Reporting (SuRe) Form starting 2020 (SEC MC No. 4, 2019).

Building on this, the SEC issued MC No. 10, Series of 2022, which:

Revised the guidelines for PLCs to strengthen reporting practices;
Encouraged large corporations (beyond PLCs) to also adopt sustainability reporting;
Promoted alignment with global frameworks such as the Global Reporting Initiative (GRI), SASB Standards, TCFD Recommendations, and the IFRS Sustainability Standards (SEC MC No. 10, 2022).

This marked a significant shift from simply piloting sustainability reporting toward embedding it into corporate governance as a core requirement.

Challenges Facing Philippine Businesses

Transitioning to robust sustainability reporting is not without challenges. Many companies—especially those new to ESG disclosure—struggle with:

Data collection and consistency across departments and subsidiaries.
Identifying material ESG topics that align with both SEC and global frameworks.
Board and executive engagement, since sustainability is often delegated to compliance teams rather than embedded in corporate strategy.
Balancing short-term costs of reporting against the long-term benefits of transparency and trust.

These pain points highlight why early preparation is critical.

Opportunities Ahead

While MC No. 10 raises the bar, it also opens opportunities for Philippine companies:

Investor confidence: Robust sustainability reporting signals resilience and risk preparedness.
Access to green financing: Banks and investors increasingly tie lending terms to ESG performance.
Competitive advantage: Transparent ESG disclosures set leaders apart in both domestic and global markets.
Future-proofing against regulation: With IFRS S1 and S2 standards now effective globally (since January 2024), early adoption ensures smoother compliance later.

Forward-looking companies that invest in sustainability reporting systems today will be better equipped to seize these opportunities tomorrow.

How Companies Can Prepare

To future-proof compliance and maximize value from sustainability reporting, businesses should:

Strengthen governance structures – Ensure ESG oversight is embedded at the board level, not just within compliance or CSR units.
Invest in data systems – Automate collection and ensure data accuracy across environmental, social, and governance metrics.
Conduct materiality assessments – Identify which ESG topics are most relevant to your stakeholders and business model.
Align with global standards early – Use IFRS and TCFD frameworks as the blueprint, not just the SEC templates.
Engage stakeholders – Sustainability reporting isn’t just for regulators; it’s for investors, customers, and employees too.

Put these steps into action today.

The Road Ahead

The SEC’s MC No. 10, Series of 2022 is more than just another compliance document—it’s a signal that sustainability and corporate governance in the Philippines are entering a new era. ESG reporting is no longer peripheral to business; it is central to long-term strategy and competitiveness.

For Philippine companies, the future of sustainability reporting will be shaped by how quickly and effectively they can align with both local SEC requirements and global ESG standards. Those that act now won’t just stay compliant—they’ll gain a reputation as industry leaders, attractive to investors, partners, and customers alike.

Final Word:
Sustainability reporting in the Philippines is no longer optional. With SEC MC No. 10, s. 2022 building on MC No. 4, s. 2019, businesses must rise to the challenge—or risk being left behind. The companies that embrace transparency, governance, and ESG leadership today will define the market leaders of tomorrow.

Philippine ESG Reporting Is Entering a New Era

With SEC MC No. 10, s. 2022 , setting new requirements and global frameworks like IFRS S1, IFRS S2, and TCFD driving convergence, Philippine companies can no longer treat sustainability reporting as a side task. Those that move early—integrating ESG into strategy, governance, and disclosure—will not just comply, but lead.

Need help making sense of the SEC requirements, aligning your reports with global standards, or preparing your board for investor-grade disclosures?
GCSS, Inc. can support you with end-to-end solutions: from materiality assessments and disclosure mapping to full IFRS- and TCFD-aligned sustainability reporting.

Contact us at sales@gcssinc.com to start your ESG, IFRS, or sustainability reporting journey today or book your discovery call here and talk to our experts today.

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Let’s turn compliance into credibility—and sustainability into long-term business value.