The Securities and Exchange Commission (SEC) wants to transfer authority over the Philippine Green Equity Label to the PSE, shifting responsibility for evaluating applications and granting the designation to the market operator.
The label is intended to help investors distinguish companies with qualifying environmentally sustainable business activities from those making broader claims about their green credentials.
PSE takes the lead
Under the proposal released for public comment on Oct. 8, the PSE would also oversee independent reviewers responsible for checking whether companies meet the requirements, including establishing a formal accreditation system.
The shift would bring the Philippines closer to practices at major international exchanges, including Nasdaq and the London Stock Exchange, while reducing overlapping regulatory functions.
More time to comply
The SEC is also proposing to extend the transition period for companies to meet Philippine or ASEAN sustainable finance standards until the end of 2026, instead of the original Sept. 23 deadline.
Companies would be exempt from administrative penalties during the transition but must still explain how their qualifying activities contribute to environmental objectives, with full compliance becoming mandatory starting fiscal year 2027 to obtain or retain the label.
The SEC is accepting public comments on the proposed changes until Oct. 19, 2026, before finalizing the revised framework.
—Edited by Miguel R. Camus
