The Securities and Exchange Commission (SEC) of the Philippines will implement mandatory sustainability reporting for listed companies by 2026, adopting a phased approach to facilitate the transition. The SEC plans a market readiness study to identify barriers and ensure compliance with International Financial Reporting Standards (IFRS). Current regulations allow companies to report using a “comply or explain” method until 2024. The SEC aims to strengthen environmental, social, and governance (ESG) reporting to enhance investor confidence and align with regional trends, as the Philippines lags behind neighboring countries in establishing mandatory guidelines.