By Alexandria Grace C. Magno
THE Securities and Exchange Commission’s (SEC) issuance of Green Equity label guidelines is expected to boost the visibility of environmentally focused companies and attract investors seeking opportunities aligned with environmental, social, and governance (ESG) standards, analysts said.
“The Green Equity label could give more visibility to green companies, especially for ESG investors,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message on Friday.
“Typically, companies with accreditations like this can command a premium valuation, so this could benefit a few listed companies, notably Acen Corp. (ACEN) and SP New Energy Corporation (SPNEC) to name a few,” he added.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the move aligns with the global trend toward ESG standards and encourages businesses to follow sustainable practices, which may increase their value.
“The initiative is consistent with the greater shift to ESG standards. Global regulators encourage investors to patronize businesses, entities, and countries that adhere to ESG standards,” he added.
Under Memorandum Circular No. 13, series of 2025, companies listed or preparing to list on the Philippine Stock Exchange may apply for the Philippine Green Equity label.
To qualify, over half of their revenues and capital and operating expenditures must come from or be directed toward green activities, as defined by the Philippine Sustainable Finance Taxonomy Guidelines or the ASEAN Taxonomy for Sustainable Finance. Revenues from fossil fuel-related operations must remain below 5%.
To ensure transparency, the SEC requires applicants to submit an external review assessment report that will be publicly accessible.
The Philippine Stock Exchange will also conduct annual evaluations of label holders to verify ongoing compliance with the standards.
SEC Chairperson Francisco Ed. Lim said the Green Equity guidelines are a game-changing initiative that will help develop the capital market, boost liquidity, and support the country’s climate goals.
“Since compliance with ESG standards signals good business, more companies and governments around the world commit to reducing carbon footprints and implementing sustainability measures,” Mr. Ricafort said.
The Green Equity label guidelines are part of the SEC’s sustainable finance framework, offering an equity-based option alongside the P1.02-trillion sustainable finance fixed-income market for green investments.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said: “[Having a Green Equity label] may help [attract investors], but I still think more initial public offerings (IPOs), a stable global geopolitical landscape, and better earnings clarity would equally or better attract investors.”
