May 26, 2026 · Bangko Sentral ng Pilipinas (BSP) will be adopting more rigid international reporting standards on sustainability for all universal and commercial banks, starting 2027. This was announced through an exploratory note acknowledging how climate change threatens financial stability, urging stakeholders to demand more “reliable and decision-useful information.”
A draft circular from the central bank details plans to implement the Philippine Financial Reporting Standards (PFRS) S1, or the General Requirements for Disclosure of Sustainability-related Financial Information, and S2, or Climate-related Disclosures, in phases and tiers based on size and market capitalization.
“The Bangko Sentral ng Pilipinas (BSP) continues to advance its sustainable finance agenda, recognizing the financial system’s critical role in supporting environmental, social, and governance (ESG) objectives,” BSP stated.
Tier 1 includes publicly listed banks with a market capitalization of over ₱50 billion as of December 31, 2025, or as of the listing date. Banks under this tier must comply with the new reporting standards starting next year.
Tier 2 covers publicly listed banks with a capital of ₱3 billion to ₱50 billion, and non-listed large banks with a capital of ₱50 billion. Reporting for these will begin in 2028.
Remaining publicly listed lenders with capital of under ₱3 billion, non-listed large banks with less than ₱50 billion in capital, and listed banks whose debt securities are only listed on the Philippine Dealing & Exchange Corp., and without listed equity securities on the Philippine Stock Exchange, make up Tier 3. This final phase of reporting will begin in 2029.
Additional implementation phases will be announced for other financial institutions such as non-listed thrift, rural, cooperative, digital, and Islamic banks.
“The amended requirements aim to enhance the quality, consistency, and comparability of sustainability-related information disclosed by banks, strengthen market discipline, and support stakeholders in making well-informed assessments of sustainability-related risks, opportunities, and long-term resilience. Moreover, the amendments promote better integration of sustainability-related risks and opportunities into banks’ corporate governance and risk management framework,” the BSP note furthered.
This move from the central bank is aligned with the Securities and Exchange Commission (SEC)’s memorandum circular in 2025 that requires similar disclosures for publicly listed companies and large non-listed entities. (Read: SEC’s ‘Green Equity’ label: What we know so far)
