Connect with us

Hi, what are you looking for?


SEC’s ESG policies seen to face challenges as firms limit reports

THE Securities and Exchange Commission (SEC) may face challenges in implementing environmental, social, and governance (ESG) policies as companies tend to highlight only positive aspects of sustainability reports, said Sustainable Fitch.

“The plan could face implementation challenges, as the SEC acknowledged that most companies tend to only make public the positive aspects of their sustainability reports,” said Sustainable Fitch, a specialist ESG unit of the Fitch Solutions group.

According to Sustainable Fitch, the Philippines is still unable to set clear details on its ESG and decarbonization strategies, which could hinder the country’s progress compared with other Southeast Asian countries.

“The country’s recently elected government has yet to set out clear details on its ESG and de-carbonization strategies. The lack of policy direction could hinder the Philippines’ ESG progress relative to neighboring peers,” the unit said.

It added that like Thailand and Indonesia, the country’s government and regulators could face the challenge of ensuring “that the transition is just for the whole of society.”

“A large swathe of people in the Philippines live in poverty and depend on brown-industry jobs to survive, with effective strategies being critical to helping these groups keep up with transition efforts,” it said.

Meanwhile, the SEC has recently confirmed that it is set to adopt a “blue” bond framework that aims to protect water-based natural resources, as the commission continues to move for wider adoption of sustainability standards.

According to SEC Commissioner Kelvin Lester K. Lee, the framework is yet to be approved by the commission but sets its initial release in the second quarter of this year.

Additionally, the securities regulator is set to implement the Association of Southeast Asian Nations (ASEAN) Sustainable and Responsible Fund Standards.

The SEC has disseminated the draft of its proposed framework last week, as it seeks to align with ASEAN member states in creating and promoting sustainable and responsible investment funds in the region.

According to Sustainable Fitch, the commission aims to mandate sustainability reporting for 2023, which requires reports from companies as well as small enterprises.

“Smaller businesses will receive support in their reporting requirements with the focus remaining on larger industries that have greater environmental or social impacts,” it said.

The commission has also previously set guidelines for the issuance of green bonds, which has allowed companies to raise funds for ESG-related projects, which is also aligned with ASEAN green bond standards.

Aside from the SEC, the Bangko Sentral ng Pilipinas (BSP) has also introduced policies in promoting ESG standards in corporate strategies and disclosures.

Under the sustainable central banking agenda, the BSP initiated vulnerability assessments for environmental risks in the economy and seeks to implement sustainability principles in banking and finance policies.

“The country also revised up its target to cut greenhouse gas emissions by 75% by 2030, up from a target of 70%,” said Sustainable Fitch. — Adrian H. Halili

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



VISUAL communications company Canva released on Thursday a suite of new features based on artificial intelligence (AI) to help both budding creatives and professional...


Finding your aesthetic and keeping in style, that’s the mark of this generation where self-expression is deeply being valued. More than their outfit, they...


PHILIPPINE COAST GUARD/HANDOUT VIA REUTERS MANILA – Maritime issues between the Philippines and China play an important part in relations between the countries, senior...


US Treasury Secretary Janet Yellen — REUTERS/GARY CAMERON US Treasury Secretary Janet Yellen sought to reassure jittery investors that American bank deposits were safe and promised policymakers had more...


SINGAPORE – Singaporean chip designer Eu Gene Goh is an electric-vehicle evangelist with two Teslas in the garage. But the car-tech enthusiast is also not ready to give...


STOCK PHOTO Image by Pexels from Pixabay BRUSSELS – European Union country leaders agreed on Thursday to fast-track reforms to the bloc’s electricity market meant to tame severe price spikes such...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.