Regulatory Alerts2025-12-23
SEC MC No. 16, Series of 2025: Adoption of PFRS on Sustainability Disclosures
The Securities and Exchange Commission of the Philippines mandates that publicly listed companies and large non-listed entities adopt Philippine Financial Reporting Standards S1 and S2 for sustainability reporting. The regulation implements a tiered adoption timeline starting in fiscal year 2026 based on market capitalization and revenue thresholds, while requiring mandatory limited assurance for Scope 1 and 2 greenhouse gas emissions two years after initial implementation. Additionally, the circular establishes transition reliefs, exemption conditions for subsidiaries, and penalties for non-compliance to align local disclosures with international standards.
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