MANILA, Philippines — To promote more transparent, credible and efficient capital market, the Philippine Stock Exchange (PSE) has come out with a guidance document on sustainability reporting for publicly listed companies.
The PSE has developed the guidance document to help issuers who seek to take the next steps toward quality sustainability reporting aligned with international best practices, standards and frameworks, especially with environmental, social and governance (ESG) factors increasingly recognized as important for investors and issuers alike.
The guidance document titled “ESG 101: A reporting guidebook” was developed by the PSE with reference to the 2015 Model Guidance on Reporting ESG Information to Investors of the United Nations Sustainable Stock Exchanges Initiative.
The PSE said the document has updated sustainability reporting regulations, data and best practices that are relevant to Philippine listed companies.
By coming out with the guidance document, the PSE hopes to provide listed firms seeking to enhance their sustainability reporting capabilities a sufficient starting point.
The PSE said that it should be used alongside globally recognized reporting frameworks and standards.
However, it should not replace any sustainability-related legislation and rules issued by legislators and regulators.
“As a capital market regulator and listed company, the PSE stands at the forefront of standardizing reporting practices among listed companies,” said PSE president and CEO Ramon Monzon, noting that the Philippine market is still mostly at the learning stage of its sustainability journey.
“Recognizing the gaps in reporting standards and practices, the PSE has developed a guidance document to provide a clear and practical starting point for publicly-listed companies seeking to improve the quality and depth of sustainability information disclosed,” Monzon said.
“The goal of the guidance document is not to provide a one-size fits all template but a conceptual guidance that highlights the key elements of an effective ESG report to better serve the needs and expectations of investors and internal stakeholders, among others,” he said.
Monzon said the PSE would continue to collaborate with regulators, listed firms, international organizations and the investing public to create a sustainable and resilient capital market.