The Philippine Securities and Exchange Commission (SEC) has adopted revised rules for the voluntary Philippine Green Equity Label, replacing its 2025 framework following an October consultation. Eligibility thresholds remain unchanged: Companies must derive more than 50% of revenue from green activities and direct more than 50% of investments toward them, based on their latest audited annual financial statements. Investments comprise capital and operating expenditure. Revenue from fossil fuels must remain below 5%.
The revised rules provide a transition of one year from effectivity before requiring full alignment with the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) or the ASEAN Taxonomy for Sustainable Finance (ATSF). During that period, applicants and label holders must disclose how their green activities substantially contribute to at least one environmental objective. They must also state, to their best knowledge and belief, that their activities do not significantly harm environmental objectives or materially breach minimum social safeguards. No administrative sanction may be imposed solely for incomplete taxonomy alignment during the transition. The SEC may extend the transition or permit additional alignment time for labels granted during it.
Authorized exchanges will process applications, grant and monitor labels, and accredit external reviewers under SEC oversight. Their rules must incorporate the ASEAN Capital Markets Forum Code of Conduct for External Review Providers of Sustainable Financing Instruments. Label holders must submit annual assessment reports subject to external review and make them accessible on their websites. Structural or other material changes that could affect eligibility require confirmation of continued alignment from an accredited reviewer. Exchanges may withdraw, suspend or cancel labels following notice and evaluation, and must issue implementing guidelines approved by the SEC.