THE PHILIPPINE Stock Exchange (PSE) recently launched a sustainability reporting guidebook for publicly listed companies to enhance environmental, social, and governance (ESG) compliance.
The guidebook, called “ESG 101: A Reporting Guidebook,” was developed by the local market operator with reference to the “2015 Model Guidance on Reporting ESG Information to Investors” by the United Nations Sustainable Stock Exchanges initiative, the PSE said in a notice on its website posted on Jan. 15.
“It is hoped that this guidance document will serve as a sufficient starting point for companies seeking to enhance their sustainability reporting capabilities,” PSE President and Chief Executive Officer Ramon S. Monzon said.
The guidebook contains updated sustainability reporting regulations, data, and best practices deemed relevant to Philippine listed companies.
Mr. Monzon said the guidebook highlights the vital elements of an ESG report to better serve the needs and expectations of investors and internal stakeholders.
“ESG factors are increasingly recognized as important for investors and issuers alike. Therefore, the PSE has developed a guidance document to help issuers who seek to take the next step towards quality sustainability reporting aligned with international best practices, standards, and frameworks,” Mr. Monzon said.
The PSE said the guidebook should be used alongside globally recognized reporting frameworks and standards and should not replace any sustainability-related legislation and rules issued by legislators and regulators.
“The exchange’s contribution to sustainability can come in many forms, not least through facilitating the disclosure of material sustainability information,” PSE Chief Operating Officer and Sustainability Head Roel A. Refran said.
“This reporting guidebook is the PSE Sustainability Unit’s first step to provide market participants with useful guidance towards quality reporting,” he added.
The Securities and Exchange Commission (SEC) recently said that its new sustainability reporting guidelines will be released this year and will be gradually enforced.
Since requiring listed companies to submit sustainability reports in 2019, the SEC said it has recorded a consistently high compliance rate, reaching 96% in 2023. — Revin Mikhael D. Ochave