Philippines trails ASEAN peers on ESG disclosure, Maybank says

Low transparency in emissions and governance puts Philippine corporates at regional disadvantage.

The Philippines lags ASEAN peers on ESG disclosure and governance metrics across materiality reporting, emissions data, and board structure, according to Maybank Research’s MIBG Sustainability Research.

The report finds that the country trails regional benchmarks in several core ESG indicators, alongside weaker disclosure practices, lower external assurance of ESG data, and limited adoption of Scope 3 emissions reporting.

Compared with the 83% rate for materiality matrices in other ASEAN countries, only 62% of Philippine companies do so.

External assurance of ESG data stands at 31%, below the regional level of 40%.

The research also highlights gaps in net-zero and carbon-neutral target setting, as well as limited near- and medium-term emissions reduction targets.

Governance metrics also sit below regional standards, with the share of companies with more than 30% independent directors at 79%, compared with an ASEAN average of 87%.

The report also identifies limited linkage between executive pay and ESG performance.

The Philippines, however, shows relative strength in workforce diversity and the presence of dedicated board sustainability committees.

It also records a reduction in Scope 1 emissions and emissions intensity across parts of the corporate sector.

Sector performance varies, as banks, conglomerates, telecommunications, and utilities show stronger ESG outcomes, with at least half of companies in these groups scoring at or above median levels across assessed parameters.

Banks show stronger reporting standards, whilst conglomerates show broad ESG coverage.

Telecommunications and utilities show progress in environmental and governance indicators.

The report identifies banks, conglomerates with exposure to electric vehicles, real estate and renewables, telecommunications, transport, real estate, and utilities as top picks.

At a macro level, the Philippines has no net-zero target year, as its 2030 emissions reduction target of 75% versus business-as-usual depends on external support.

The government targets a 50% renewable energy share in the generation mix and electric vehicle adoption by 2040.

The Securities and Exchange Commission will introduce IFRS S1 and S2 reporting standards on a staggered basis from FY26. The Philippines accounted for 23.5% of the $100b ASEAN GSS+ bond issuance between 2017 and 2025.