SEC launches green equity guidelines to boost sustainable investments

The Securities and Exchange Commission (SEC) has introduced the first Green Equity Guidelines in Southeast Asia to encourage companies with sustainable projects to attract more investments.

The new SEC Memorandum Circular No. 13 outlines the criteria for companies seeking to use the Philippine Green Equity label.

Companies must be listed on the Philippine Stock Exchange or be in the process of going public to qualify.

At least 50 percent of a company's revenues and investments must be dedicated to green activities compliant with the Philippine Sustainable Finance Taxonomy Guidelines or the Asean Taxonomy for Sustainable Finance.

Furthermore, revenues generated from fossil fuels must not exceed 5 percent.

SEC Chair Francis Lim stated that these guidelines are a 'game-changing initiative' that will enhance the capital market by increasing liquidity and supporting climate objectives.

He also highlighted that this move positions the Philippines as an attractive location for foreign investors looking for reliable and impactful green investment opportunities.