The Philippine Stock Exchange releases ESG compliance guide

The Philippine Stock Exchange (PSE) recently launched a sustainability reporting guidebook for publicly listed companies to enhance environmental, social, and governance (ESG) compliance.

The guidebook, called “ESG 101: A Reporting Guidebook,” was developed by the local market operator with reference to the “2015 Model Guidance on Reporting ESG Information to Investors” by the United Nations Sustainable Stock Exchanges initiative, the PSE said in a notice on its website posted on Jan. 15.

“It is hoped that this guidance document will serve as a sufficient starting point for companies seeking to enhance their sustainability reporting capabilities,” PSE President and Chief Executive Officer Ramon S. Monzon said.

The guidebook contains updated sustainability reporting regulations, data, and best practices deemed relevant to Philippine listed companies.

Mr. Monzon said the guidebook highlights the vital elements of an ESG report to better serve the needs and expectations of investors and internal stakeholders.

“ESG factors are increasingly recognized as important for investors and issuers alike. Therefore, the PSE has developed a guidance document to help issuers who seek to take the next step towards quality sustainability reporting aligned with international best practices, standards, and frameworks,” Mr. Monzon said.

The PSE said the guidebook should be used alongside globally recognized reporting frameworks and standards and should not replace any sustainability-related legislation and rules issued by legislators and regulators.

“The exchange’s contribution to sustainability can come in many forms, not least through facilitating the disclosure of material sustainability information,” PSE Chief Operating Officer and Sustainability Head Roel A. Refran said.

“This reporting guidebook is the PSE Sustainability Unit’s first step to provide market participants with useful guidance towards quality reporting,” he added.

The Securities and Exchange Commission (SEC) recently said that its new sustainability reporting guidelines will be released this year and will be gradually enforced.

Since requiring listed companies to submit sustainability reports in 2019, the SEC said it has recorded a consistently high compliance rate, reaching 96% in 2023.

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Source: Business World

Dividends paid out by listed firms hit P402 billion in 2021

Dividends paid out by publicly listed companies reached P402.18 billion last year, up 17.3 percent from the P342.88 billion declared in 2020, according to latest data from the Philippine Stock Exchange (PSE).

Moving forward, PSE president Ramon Monzon said the PSE would introduce a Dividend Yield Index in the first semester to showcase companies that provide high dividends.

“With around 40 percent of publicly listed companies giving out dividends to their common shareholders, we deemed it necessary to showcase companies that provide high dividend income to investors by coming up with a Dividend Yield Index,” he said.

Monzon said the gradual reopening of the local economy allowed companies to generate better income, which resulted in bigger dividends for shareholders.

“We hope that earnings growth among publicly listed companies continues to improve to ensure steady dividend income for stock market investors,” Monzon said.

The dividend payout for 2021 translates to dividend yields of 2.58 percent for 2021 and 2.5 percent in 2020.

This compares to a dividend yield of 1.16 percent in India, 1.29 percent in Japan and 3.37 percent in the United Kingdom, according to data from SIblis Research.

For PSEi companies, the cash dividends paid by 28 of the 30 main index members last year amounted to P157.58 billion, giving common shareholders a 1.72 percent dividend yield.

In 2020, 29 PSEi constituents distributed P157.05 billion in cash dividends, providing a dividend yield of 1.76 percent.

Across the six sectors in the PSE, financials had the largest dividend payout at P187.55 billion.

Among the listed companies that paid dividends were real estate investment trusts (REITs), namely, AREIT Inc., DDMP REIT Inc., Filinvest REIT Corp., RL Commercial REIT Inc., and MREIT Inc.

These REITs have an aggregate cash dividend payout of P5.77 billion, resulting in a 2.16 percent dividend yield, even as three of the five REITs were only listed for an average of four months.

REITs are a new asset class that have allowed investors to participate in property assets just by buying into the companies.

“REITs have become a preferred asset class among investors because of its dividend mandate. With more REITs expected to list this year, including non-property REITs, investors will have a wider selection of companies that can provide passive income,” Monzon said.

According to the PSE, 108 out of 276 listed companies declared dividends last year compared with 105 of 271 the year before.

Source: Philstar