ESG Performance Highlights in the Philippines
Introduction
The Institute of Corporate Directors (ICD) is a not-for-profit organization that promotes the adoption of good corporate governance to produce enduring returns and enhanced shareholder value that encourage investment.
Socially conscious investors use the Environmental, Social, and Governance or the ESG framework as moral guidelines to assess potential investments. As such, here are the ESG performance highlight in the Philippines.
Summary
Among the 268 PLCs, the number of reviewed sustainability reports increased from 73 in 2019 to 118 in 2020. In addition, over 90% of PLCs had already submitted sustainability reports to the SEC by October 2021, well ahead of the mandatory deadline in 2023.
From 2019 to 2020, there was a 2% increase in PLCs sustainability reports using the SEC template. 53% of these PLCs included sustainability information in their annual reports, 8% in their integrated report, and 52% published stand-alone sustainability reports. Furthermore, 75% of PLCs linked their report to UN-SDG.
Companies typically use the SDGs and GRI as frameworks and standards for reporting on sustainability, with TCFD coming in third.
Since the COVID-19 pandemic, 90% of investors have given more thought to the ESG performance of corporations when formulating investment plans and making decisions. Based on a company's outstanding ESG, 86% of investors felt it is more likely for them to invest now.
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