Establishing your Carbon Footprint & Strategy in the Philippines

As sustainability regulations tighten, Philippine businesses must proactively measure and manage their carbon footprint to comply with key regulatory bodies:

Securities and Exchange Commission (SEC) – Sustainability and climate disclosures

Bangko Sentral ng Pilipinas (BSP) – Sustainable finance and ESG risk management

Department of Energy (DOE) – Energy efficiency and carbon reduction targets

Department of Environment and Natural Resources (DENR) – Emission control and environmental impact compliance

Sharing our step-by-step playbook to align with these requirements:

1. Define Your Emission Boundaries

Under GHG Protocol and Philippine Greenhouse Gas Inventory Management and Reporting System (PGHGIMRS):

Scope 1: Direct emissions from owned facilities, vehicles, and fuel combustion

Scope 2: Indirect emissions from electricity consumption (Meralco or other utilities)

Scope 3: Supply chain emissions, business travel, and product lifecycle impacts

Compliance Tip: Align reporting with SEC’s Sustainability Reporting Guidelines for Publicly Listed Companies and BSP’s Sustainable Finance Framework for banks and financial institutions.

2. Measure & Audit Your Carbon Footprint

Gather Data: Energy bills, fuel usage, supplier reports, logistics emissions

Use Digital Tools: Carbon accounting platforms to track and report emissions

Engage Third-Party Auditors: Verify emissions under ISO 14064 standards

Compliance Tip: DOE’s Philippine Energy Efficiency and Conservation Act (RA 11285) requires designated enterprises to submit energy consumption reports.

3. Set Carbon Reduction Targets

Align with Philippines' Nationally Determined Contributions (NDCs) under the Paris Agreement.

Comply with BSP’s ESG risk management framework by setting climate transition plans.

Develop energy efficiency projects under DOE’s Energy Efficiency and Conservation Program

4. Implement Sustainability Initiatives

Renewable Energy Transition – Shift to solar, wind, or hydro via DOE-accredited RE suppliers

Green Supply Chain – Source from sustainable and low-carbon suppliers

Carbon Offsetting & Circular Economy – Partner with DENR’s reforestation programs and waste-to-energy initiatives

Green Financing – Leverage BSP’s Sustainable Finance Policy Framework to access low-interest green loans

5. Report & Disclose Sustainability Performance

SEC Sustainability Reporting – Adopt GRI, SASB, or TCFD frameworks

BSP Climate Risk Reporting – Disclose ESG risks under Sustainable Finance Framework

DENR Environmental Compliance – Secure ECC (Environmental Compliance Certificate) for regulated industries

6. Continuously Improve & Adapt

Conduct regular GHG audits and update targets based on evolving regulations

Stay ahead of upcoming SEC mandatory climate disclosures

Innovate with DOE-backed energy efficiency technologies

The Bottom Line:

Establish your baseline carbon footprint and a well-defined strategy isn’t just about compliance, it enhances business resilience, investor confidence, and long-term sustainability. Aligning with SEC, BSP, DOE, and DENR ensures your business remains competitive, compliant, and climate-resilient in the Philippine market.

Ready to take action? Let’s build a low-carbon future for the Philippines!