Is your organization prepared for the evolving climate reporting requirements in the Philippines?
The Philippines has reached a decisive turning point. With the introduction of the Securities and Exchange Commission (SEC) Memorandum Circular 16 – 2025, large non-listed and listed companies are now mandated to align their sustainability reporting with Philippine Financial Reporting Standards (PFRS) S1 and S2.
This survey report—a landmark collaboration between Willis, a WTW business, the Institute of Corporate Directors (ICD) Philippines, and the Global Reporting Initiative (GRI)—helps companies assess their readiness to manage the impacts of climate change and develop practical strategies to promote long-term financial stability and business continuity in a rapidly changing environment.
Why climate disclosure matters in the Philippines now
As climate change accelerates, the Philippine corporate landscape is entering a new normal. Beyond the increasing intensity of typhoons and rising sea levels that threaten physical operations, shifting regulatory policies are fundamentally redefining “business as usual.”
Under the new SEC mandates, climate risk management has evolved from a peripheral Environmental, Social, and Governance (ESG) concern into a core strategic necessity for market competitiveness. In this volatile environment, transparency is your strongest asset. Effective climate disclosure allows Philippine organizations to:
- Secure Capital: Meet the rigorous ESG criteria of global institutional investors to unlock access to green financing.
- Ensure Compliance: Stay ahead of evolving SEC mandates and maintain seamless alignment with PFRS S1 and S2 standards.
- Build Resilience: Transform climate risk assessment data into actionable insights that protect physical assets, stabilize supply chains, and ensure long-term financial health.
Key insights: The Philippine Readiness Gap
Our survey reveals a corporate landscape in transition. While Philippine business leaders increasingly recognize climate change as a strategic threat, a significant gap remains between high-level awareness and operational execution:
The management gap
Although climate change is now on the boardroom agenda, over half (55%) of organizations do not yet feel their governance bodies are fully equipped to oversee and manage climate-related risks.
Incomplete risk frameworks
While integration of climate-related risks into Enterprise Risk Management (ERM) is rising, it remains inconsistent. A staggering 90% of organisations focus on physical risks like typhoons, yet only 33% are prepared for the liability risks arising from increased regulatory and legal scrutiny.
The quantification hurdle
Only 33% of organizations have quantified the financial impact of climate change on their business.
The path ahead: Moving from awareness to accountability
With SEC Memorandum Circular 16 – 2025 now in effect, the luxury of "qualitative" reporting has passed. To remain competitive, Philippine organizations must move beyond simply identifying risks toward actively quantifying their financial implications.
The path forward requires a unified approach:
- Integrating climate risk assessments into formal risk management frameworks.
- Upgrading board-level expertise to meet new legal accountabilities.
- Leveraging science-based modeling to protect both physical assets and long-term capital.
Climate resilience is no longer just about surviving the next storm—it is about thriving in a low-carbon, transparent global economy.
Don't wait for the next reporting cycle. Access the insights you need to transform your climate disclosure from a regulatory requirement into a competitive advantage.
Download your copy of the Managing Climate-Related Risks Survey Report
Related content
This report was co-authored with the Global Reporting Initiative and Institute of Corporate Directors
Global Reporting Initiative
Institute of Corporate Directors
