ESG Reporting and Assurance Services in the Philippines
Sustainability reporting in the Philippines has changed. What used to be a voluntary, comply-or-explain exercise is becoming a mandatory disclosure obligation, and most companies do not yet have the expertise or systems in place to meet it. The questions landing on finance and compliance teams are suddenly concrete: Does this apply to us? By when? And what happens if we get it wrong?
STLAF helps Philippine companies answer those questions and get ESG-ready. As a combined law and accountancy firm, we interpret the new standards, assess where you stand, and build a practical path to compliance, with the legal grounding to manage the exposure that mandatory disclosure brings. Our ESG service leads with advisory and consulting, and grows with you as your reporting and assurance obligations take effect.
Sustainability reporting is now mandatory in the Philippines
The Securities and Exchange Commission has adopted PFRS S1 and S2 through Memorandum Circular No. 16, Series of 2025 (issued 22 December 2025), moving Philippine sustainability reporting from voluntary to mandatory on a schedule that phases in from fiscal year 2026.
PFRS S1 and S2 are the Philippine adoption of the global sustainability disclosure standards issued by the International Sustainability Standards Board, known internationally as IFRS S1 and S2. PFRS S1 covers general sustainability-related financial disclosures; PFRS S2 covers climate-related risks and opportunities. Together they replace the looser, comply-or-explain approach that companies grew used to under the earlier SEC sustainability reporting guidelines, and they bring sustainability disclosure much closer to the rigor of financial reporting.
For most companies, this is the moment ESG stops being a communications project and becomes a compliance obligation with a deadline.
Do these rules apply to your company, and when?
The mandate phases in by company size under SEC Memorandum Circular No. 16, Series of 2025, with the largest listed companies reporting first and mid-sized and large non-listed companies following through 2028 and 2029.
| Tier | Who it covers | First report |
|---|---|---|
| Tier 1 | PSE-listed companies with market capitalization above PHP 50 billion (as of 31 December 2025) | 2027, covering fiscal year 2026 |
| Tier 2 | PSE-listed companies with market capitalization above PHP 3 billion up to PHP 50 billion | 2028 |
| Tier 3 | Smaller listed companies, plus large non-listed companies with annual revenue above PHP 15 billion | 2029 |
The practical point is simple: even if your reporting year feels far away, the work to be ready, the data systems, the materiality assessment, the governance, takes time to put in place. Companies that wait until their tier is due will be late.
What about exporters and subsidiaries of foreign companies? Companies that sell into or supply European markets can be pulled into ESG disclosure through the EU Corporate Sustainability Reporting Directive and their customers’ value-chain reporting, even when Philippine rules do not yet require it. A large share of a company’s emissions and ESG footprint sits in its value chain rather than its own operations, so multinational customers increasingly ask their Philippine suppliers and subsidiaries for ESG data. If your buyers are in the EU, ESG may already be your concern, regardless of your tier.
How STLAF helps: ESG advisory and consulting
STLAF’s ESG service starts with advisory and consulting, helping you interpret PFRS S1 and S2, run a readiness and materiality assessment, and build a practical roadmap to compliance.
This is where most companies need the most help, and it is the work we do best. We translate the standards into what they actually require of your business, identify the gaps between where you are and where you need to be, and give you a clear, sequenced plan rather than a generic checklist.
ESG readiness and gap assessment. We assess your current position against the disclosures you will be required to make: what data you already capture, what is missing, where your governance and controls need to mature, and what your realistic timeline looks like. You leave with a documented readiness picture and a prioritized list of what to fix first.
Materiality and regulatory interpretation. We help you determine which sustainability and climate matters are material to your business and your investors, and we interpret the requirements of PFRS S1 and S2 alongside related frameworks such as the GRI Standards and, where relevant, the EU CSRD and ESRS. This sits naturally beside our business advisory and consulting work. The goal is disclosure that is accurate, defensible, and useful, not box-ticking.
Sustainability reporting support, scoped to your needs
When you are ready to prepare and file your sustainability report, STLAF scopes the reporting engagement to your tier, your data, and your deadline.
Reporting is detailed work, and it varies widely from one company to the next. Rather than sell a one-size package, we scope the reporting engagement after the readiness assessment, so the effort matches your actual obligation and your data maturity. We help align your disclosures to the required frameworks and prepare a report that stands up to scrutiny from regulators, investors, and, in time, assurance providers.
The law and accountancy advantage
STLAF is both a law firm and an accountancy firm, so the same team that interprets the standard also manages the regulatory and legal exposure that mandatory disclosure creates.
This is what sets us apart from the consultancies and certification bodies that dominate the ESG market. Mandatory disclosure is not only an accounting exercise. A sustainability report is a public, regulator-facing statement, and inaccurate or overstated claims carry real consequences, from regulatory findings to the reputational and legal risk that follows a greenwashing allegation. A pure consultant can help you write the report. They cannot advise you on the liability that report creates. STLAF can do both, under one roof, with our corporate governance and compliance and audit and assurance teams working alongside the ESG engagement.
Getting ready for mandatory assurance. Independent limited assurance over Scope 1 and Scope 2 greenhouse gas emissions becomes mandatory two years after each tier begins reporting, which means the data behind your disclosures will eventually have to withstand outside verification. We help you build the controls, documentation, and data discipline now so that when assurance becomes required, you are ready for it rather than scrambling. As STLAF’s assurance capability develops, we will guide you toward it; today, our focus is making sure your reporting foundation is strong enough to be assured.
Who we work with
STLAF works with Philippine listed companies, large non-listed entities, exporters and subsidiaries of foreign corporations, and growing companies preparing for investment or expansion.
If you are a listed company facing a reporting deadline, a supplier being asked for ESG data by multinational customers, or a growing business that wants investor-grade transparency before your next raise, our ESG service is built for you. We work for the Philippine mid-market that the global firms price out, with the same regulatory depth and far more practical access.
Why choose STLAF for ESG in the Philippines
STLAF pairs Philippine regulatory expertise with combined legal and accounting capability, giving mid-market companies practical, accessible ESG guidance that the global firms put out of reach.
We are based here and we know the Philippine regulatory landscape, from the SEC’s sustainability disclosure rules to the wider compliance environment our clients operate in. We bring law and accountancy together, so you are not stitching advice across separate advisers. And we work the way the mid-market needs: clear, practical, and accessible, demystifying a complex new obligation rather than dressing it up. ESG is no longer optional, and getting ready for it should not be out of reach.
Frequently asked questions
Is sustainability reporting mandatory in the Philippines?
Yes. Under SEC Memorandum Circular No. 16, Series of 2025, the SEC adopted PFRS S1 and S2 and is phasing in mandatory sustainability reporting from fiscal year 2026, replacing the earlier comply-or-explain approach. The timing depends on your company’s tier.
What are PFRS S1 and S2?
They are the Philippine adoption of the global sustainability disclosure standards issued by the International Sustainability Standards Board, known internationally as IFRS S1 and S2. PFRS S1 covers general sustainability disclosures; PFRS S2 covers climate-related disclosures.
Which companies have to comply, and when?
The rules phase in by company size. The largest listed companies (market capitalization above PHP 50 billion) report first in 2027, mid-sized listed companies (PHP 3 billion up to PHP 50 billion) follow in 2028, and smaller listed companies and large non-listed companies (annual revenue above PHP 15 billion) report in 2029. Even companies with a later deadline need lead time to prepare their data and governance.
What is the difference between ESG advisory, reporting, and assurance?
Advisory gets you ready and interprets the rules. Reporting prepares and files the disclosure. Assurance is independent verification of the reported data. STLAF provides advisory and consulting, scopes reporting per engagement, and helps you prepare for the assurance that becomes mandatory.
Do we need ESG reporting if we are not publicly listed?
Possibly. Large non-listed companies with annual revenue above PHP 15 billion are captured in the 2029 phase, and exporters or subsidiaries of foreign companies can be pulled in through customer value-chain reporting and the EU CSRD. A readiness consultation will tell you where you stand.
How much does ESG consulting cost in the Philippines?
It depends on your tier, how ready your data is, and the scope of work. STLAF prices for mid-market accessibility and scopes each engagement after a readiness consultation, so you pay for what your obligation actually requires.
Get ESG-ready
Whether your reporting deadline is near or you simply want to understand where you stand, contact STLAF’s team through the form below and we will route you to the right adviser for a readiness consultation.
STLAF Global is a Philippine legal and accountancy firm. This page is information, not legal or professional advice, and does not create a lawyer-client or engagement relationship.