September 29, 2025 · On September 23, 2025, the Securities and Exchange Commission (SEC) filed official guidelines on acquiring a Green Equity Label. The guidelines detail how eligible Philippine companies can apply, including requirements for “green” revenue streams and investments, as well as restrictions on the use of fossil fuels.
The big picture
The SEC has stated that the Philippines is the first country in the Southeast Asian region to have an official set of Green Equity Guidelines. Memorandum Circular No. 13, series of 2025, specifies the eligibility requirements and the documents that need to be submitted for assessment.
The objective of these Guidelines is to “enhance the visibility and attractiveness of companies that actively engage in green activities,” SEC said in the memo, as well as “to direct capital flow” toward enterprises that champion environmental stewardship.
Only companies publicly listed on the Philippine Stock Exchange (PSE) or preparing to go public are eligible to apply.
According to the SEC, they must meet all four criteria to qualify:
- At least 50 percent of the company’s revenues must be derived from Green Activities.
- Green Activities refer to activities that are classified as “Green” under the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) and the ASEAN Taxonomy for Sustainable Finance (ATSF).
- Likewise, at least 50 percent of the company’s investments must be directed toward Green Activities.
- The company’s revenues derived from fossil fuels must be less than 5 percent.
- The company’s activities must meet the eligibility criteria of the SFTG or ATSF.
To formally apply, the company shall submit a letter to the SEC stating its intention to label its shares as Green Equity, and submit an assessment report from a qualified independent and external reviewer (with the contract confirming their appointment to prepare the assessment report, and their methodology), latest audited financial statements, and other relevant documents that demonstrate compliance to the Guidelines.
The third-party assessment reports must also be available to the general public through a website.
The Commission will have 45 days to review the application. If approved, the company will be required to submit an annual assessment report, which shall also be readily available and accessible to the public online.
The Securities and Exchange Commission is calling the Guidelines “game-changing” for highlighting capital funds as a valuable resource towards achieving the Sustainable Development Goals outlined by the United Nations.
“The issuance of the SEC Green Equity Guidelines is a game-changing initiative that will help develop the capital market not only by boosting liquidity but also by supporting our climate goals,” SEC Chair Francis Lim said in a statement. “This also positions the country as an emerging destination for foreign investors seeking credible, transparent, and meaningful green investments.”
So what?
Since the Guidelines were released in September 2025, the label has been granted to two companies.
Maynilad received the label on October 1 ahead of its November public listing, while Alternergy is the first publicly listed company to hold the label officially.
According to SEC, Maynilad’s approval was based “on the assessment report of an external reviewer submitted to the Commission, Maynilad derived 100 percent of its revenues from activities that are considered green under S&P Global Ratings’ Shades of Green.”
The S&P Global Ratings’ Shades of Green is an assessment tool that measures the financial instruments used by private companies, but it does not actually verify emissions reductions, audit corporate conduct, or guarantee net-positive environmental impact.
What now?
The Green Equity Label is relatively new, and it remains to be seen what kinds of companies can avail and to what extent their green activities will be scrutinized.
At the moment of writing, the third-party assessment reports, which should be publicly available, could not be accessed by our team. Neither Alternergy nor Maynilad has responded to the team’s request for access.
This story will be updated with copies of the report once available.
Go deeper:
SEC MC No. 13, series of 2025, SEC Guidelines on Philippine Green Equity
Philippine Sustainability Finance Taxonomy Guidelines (SFTG)
ASEAN Taxonomy for Sustainable Finance (ATSF)
17 Sustainable Development Goals by the United Nations (SDG)
SEC Press Release: SEC Launches First Green Equity Guidelines in Southeast Asia
S&P Global Ratings’ Shades of Green
Letter of Confirmation- Alternergy’s Qualification for the Philippine Green Equity Label
2025-11-03 Media Release – SEC Approves Alter Green Equity Label
