The Philippines SEC has launched the Green Equity Guidelines, aiming to expand the capital markets for sustainable growth.

On September 23, the SEC issued Memorandum Circular (MC) No. 13, Series of 2025, to establish the new rules.

The SEC designed this initiative as part of its broader Sustainable Finance Framework to complement the country’s existing PHP 1.02 trillion sustainable fixed-income market.

SEC Chairperson Francis Lim stated that the new guidelines will help develop the capital market and support the country’s climate goals.

“This also positions the country as an emerging destination for foreign investors seeking credible, transparent, and meaningful green investments,” Lim added.

To qualify for the Philippine Green Equity Label, a company must hold a listing on the Philippine Stock Exchange (PSE). These companies could also be preparing for an initial public offering.

It must also derive more than 50% of its revenues and investments from “Green Activities” that meet the criteria of either the Philippine or ASEAN Sustainable Finance Taxonomy Guidelines.

Additionally, a company’s revenues from fossil fuels must be less than 5%.

Companies seeking the label must submit an external review assessment report to the SEC, which will be made publicly available. Once granted, label holders will be subject to an annual assessment by the PSE to ensure they continue to meet the required criteria.

The SEC has also provided transitional relief for companies that are still on their path towards full alignment with the established sustainable finance principles.

Featured image by Freepik.