SEC launches first Green Equity Guidelines in Southeast Asia

​The Securities and Exchange Commission (SEC) continues to advance sustainable finance in the Region with the launch of the first Green Equity Guidelines in Southeast Asia.

The Commission on September 23 issued SEC Memorandum Circular No. 13, Series of 2025, outlining the Guidelines on Philippine Green Equity. This forms part of a series of Sustainable Finance Frameworks issued by the SEC to expand the capital markets in sustainable growth and development, complementing the PHP1.02 trillion Sustainable Finance fixed-income market.

“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,” SEC Chairperson Francis Lim said.

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

Green equity criteria

Companies intending to carry the Philippine Green Equity Level must be listed on the Philippine Stock Exchange (PSE) or preparing to go public, with more than fifty percent (50%) of their revenues and investments (sum of capital expenditure and operating expenditure) earned from or directed toward Green Activities. Such activities must meet the eligibility criteria of the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) or the ASEAN Taxonomy for Sustainable Finance (ATSF). Companies’ revenues derived from fossil fuels must also be limited to less than five percent (5%).

Details or information on meeting the criteria must be contained in an external review assessment report submitted to the SEC and made publicly available. Philippine Green Equity Label holders are also subject to an annual assessment by the PSE to ensure compliance with the criteria.

Adequate Reliefs

Recognizing market readiness and the need for a proper transition in adopting Sustainable Finance Taxonomy principles, the SEC provides for adequate reliefs for companies that are on their paths towards full alignment with the SFTG or ATSF. In any case, applicants are expected to demonstrate that the Green Activities covered by the Revenue and Investments criteria make a substantial contribution to at least one Environmental Objective under the SFTG or ATSF, and attest that the covered activities are not known to cause harm or to be in non-compliance with the Minimum Social Safeguards at the time of application.