The Philippines’ Securities and Exchange Commission ( SEC ) has launched the country’s Green Equity Guidelines, a first for the Asean region. 

Published as SEC Memorandum Circular No. 13, the regulator hopes the guidelines will position the Philippines as “an emerging destination” for foreign investors seeking “credible, transparent, and meaningful green investments”.

The new rules, released on September 25, require that companies wishing to carry the Philippine Green Equity label need to derive more than 50% of their revenues and investments from green activities, while also allocating most of their investments towards similar initiatives that meet either the Philippine Sustainable Finance Taxonomy Guidelines or the Asean Taxonomy for Sustainable Finance. 

Additionally, no more than 5% of their revenues can be derived from fossil fuels. Companies that wish to carry the label must also be listed on the Philippine Stock Exchange, and successful label holders will be required to undergo an annual assessment to be conducted by the Philippine Stock Exchange, to ensure continued compliance. 

“The issuance of the SEC Green Equity Guidelines is a game-changing initiative that will help develop the capital market not only by boosting liquidity but also by supporting our climate goals,” says SEC chair Francis Lim.

The guidelines are part of the SEC’s continuing efforts to set clear standards for sustainable finance, while providing an equity-based solution for green investments. The regulator also aims to bolster the attractiveness of the Philippine capital market to global institutional investors who increasingly prioritize environmental credentials.