Regulatory Alerts2024-02-23
SEC Memorandum Circular No. 05 Series of 2024: Guidelines on the Philippine Sustainable Finance Taxonomy
The Securities and Exchange Commission, in collaboration with the Bangko Sentral ng Pilipinas and Insurance Commission, issued guidelines to classify economic activities as environmentally or socially sustainable. Regulated entities must apply a four-step assessment process involving exclusion checks, environmental objective selection, and Do No Significant Harm evaluations to determine if financing aligns with the taxonomy. The framework utilizes a traffic-light classification system of Green, Amber, or Red categories to guide investment decisions and mitigate greenwashing risks.
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