The State of Sustainability Reporting
in the Philippines

20 September 2023The Makati Business Club (MBC) recently held a CEO briefing last September 18, 2023 to discuss the results of the new study on State of Sustainability Reporting in the Philippines. This study was conducted in partnership with the Center for International Private Enterprise (CIPE) and with technical advisory support from SGV & Co.

The highlight of the event was a dynamic dialogue with MBC’s Executive Director, Francisco Alcuaz, and SGV & Co.’s Managing Partner, Mr. Wilson P. Tan, who shared his invaluable expertise and knowledge on sustainability reporting and its direction in the county. Mr. Tan highlighted the recent release of the International Financial Reporting Standards. These new global standards make the transition for companies easier when adopting climate-related standards and processes due to the ‘climate first’ option. The climate first option allows companies to focus their report on climate-related risks and opportunities in their first year of application.

“Global investors are looking at how Philippine companies compete. They put greater importance on the corporation’s ESG performance when it comes to their investment strategy and decision-making. If these institutional investors are looking at ESG as part of their investment strategy and decision making, how do we compete if we are not up to par with their expectations?” says Wilson Tan on how sustainability reporting is becoming a significant factor in attracting investors to Philippines companies. 

“There is a disconnect between sustainability and long-term value. While 78% of investors believe ESG issues are important, even though in the short-term it might reduce profits, only 55% of finance leaders believe the same. There is a need to bridge this gap.”

The dialogue provided an excellent platform on the new global IFRS and a deeper understanding of the significance of sustainable business practices for the Philippines’ economic growth.

Sustainability reporting is becoming increasingly important for businesses worldwide, and the Philippines is no exception. As a convenor of the business community, MBC reaffirms its longstanding commitment towards business-led sustainability and inclusivity.

MBC extends our gratitude to CIPE and SGV & Co. for their unwavering support and collaboration throughout this study. Together, we aim to drive positive change and create a sustainable future for the Philippines.