Change is now sweeping through the Securities and Exchange Commission (SEC), its winds shifting from being harbingers of devastating storms to a force for reform. The commission ignited hope in climate-stricken communities by announcing mandatory sustainability reporting for publicly listed companies by 2026.
Simultaneously, this directive sent ripples through the nation’s burgeoning finance technology sector.
Public pressure, especially from communities like Salcedo in Eastern Samar, which was ravaged by Super Typhoon Yolanda (Haiyan), one of the strongest typhoons to ever hit the Philippines, directly prompted the regulatory agency’s latest decision. And with this move, the SEC has taken a significant step towards corporate accountability.
Residents of Salcedo at the SEC office in Makati (IMAGE CREDIT: © Jilson Tiu / Greenpeace)
For the residents of Salcedo, who hand-delivered a compelling letter to the SEC’s Makati City headquarters, this victory is more than just policy; it’s a lifeline.
“Bilang magulang at kinatawan ng komunidad namin, masaya ako sa desisyon ng SEC. Pinatutunayan nito na ang pagkakaroon ng tapang kumilos para manawagan ay maaaring magdulot ng mabuting resulta,” said community leader Lorena Ivy Ogania of Salcedo. “Gusto kong tumigil na ang hirap na nararanasan namin dahil sa krisis sa klima, para hindi na maranasan ng aking anak ang mga suliraning kinakaharap natin taon-taon. Sana mapanindigan ng SEC at ng gobyerno ang kanilang tungkulin, at panagutin ang mga kompanyang nagpapalala sa krisis sa klima.”
Her words, echoing the collective sentiment of countless Filipinos, underscored the urgency of addressing the climate crisis, a crisis that’s amplified by the very corporations now facing mandatory scrutiny.
SEC move not merely a symbolic gesture
The SEC’s move is not merely a symbolic gesture. It signals a fundamental shift in how the Philippines views corporate responsibility, particularly within its rapidly evolving financial landscape.
The nation’s burgeoning finance technology sector, a cornerstone of its economic growth, is now tasked with integrating sustainability into its core operations. This integration is no longer a peripheral concern; it’s a mandatory requirement.
The “comply or explain” policy currently in place serves as a transitional phase, allowing companies to gradually adapt to the new reporting standards. However, the clock is ticking.
By 2026, transparency will be non-negotiable. This mandate forces fintech firms to not only assess their environmental footprint but also to develop innovative solutions that promote sustainable practices.
This development holds profound implications for the future of finance technology in the Philippines. As the sector embraces sustainability, it’s poised to become a global leader in responsible innovation. The integration of environmental, social, and governance (ESG) factors into financial products and services will become paramount.
Fintech companies that can demonstrate a commitment to sustainability will gain a competitive edge, attracting investors and customers who prioritize ethical and environmentally conscious practices.
The mandatory reporting also forces fintech companies to acknowledge the climate-related risks that can impact their bottom line. For example, a fintech company that provides loans to farmers may now be forced to consider the impact of increasing storm severity on those farmers.
SEC decision long delayed, but still a welcome move
The aftermath of Typhoon Yolanda (IMAGE CREDIT: © Focolare Movement)
Greenpeace campaigner Virginia Benosa-Llorin, who accompanied the Salcedo representatives, emphasized that this is just the beginning. “The SEC’s move… is long delayed but is nevertheless a welcome move. But it should only be a first step towards a more stringent regulatory regime for corporate climate accountability.”
Llorin also highlighted the necessity of coupling this regulation with the Climate Accountability Bill (CLIMA Bill), creating a robust framework for corporate transition and accountability.
The SEC’s decision is a testament to the power of collective action. It demonstrates that even the most formidable institutions can be held accountable when communities unite and demand change.
As the Philippines navigates the challenges of climate change, the integration of sustainability into its finance technology sector will be crucial in building a resilient and equitable future.
The path forward is clear: transparency, accountability, and a commitment to a sustainable future are no longer optional — they are mandatory.