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SEC Memorandum Circular No. 4, Series of 2019 (Sustainability Reporting Guidelines for Publicly-Listed Companies)

  • Published on February 17, 2021
To promote sustainability reporting and make it relevant for Philippine publicly-listed companies (PLCs), SEC resolved to issue the Sustainability Reporting Guidelines for Publicly-Listed Companies. The Guidelines is intended to help PLCs assess and manage non-financial performance across Economic, Environmental and Social aspects of their organization and enable PLCs to measure and monitor their contributions towards achieving universal targets of sustainability, such as the United Nations Sustainable Development Goals, as well as national policies and programs, such as AmBisyon Natin 2040. The Sustainability Report is required to be attached to the PLCs' Annual Report (SEC Form 17-A). For companies who already have sustainability reports in accordance with internationally recognized frameworks and standards, their reports shall already be considered as their compliance with the reporting template. Companies may choose to attach the whole sustainability report to their Annual Report or just include a statement providing a link to said report. Non-attachment of the Sustainability Report to the Annual Report shall be subject to the penalty for Incomplete Annual Report provided under SEC Memorandum Circular No. 6, Series of 2005 (Consolidated Scale of Fines).
Sustainability Reporting is an organization's practice of reporting publicly on its significant economic, environmental and/or social impacts, in accordance with globally accepted standards. It enables an organization to measure and monitor its contributions towards achieving universal targets of sustainability. The growing focus on sustainability has a corresponding increase in demand for companies to provide greater disclosure and transparency not only on financial matters but on non-financial and sustainability issues, as well. Greater attention is now given to how businesses impact the economy, environment and society and the way corporations respond to sustainability challenges. This is where sustainability reporting comes in. The SEC is a firm believer that measurement is the first step that leads to control and eventually, to improvement. With the advent of Sustainability Reporting, PLCs will be driven to measure their economic, environmental and social issues and impacts. When provided with a clear starting point, PLCs will not be left guessing about their baselines for improvement. The Sustainability Reporting is meant to give an impetus to the PLCs to start measuring their impacts, and eventually, start improving in these areas.

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