Jesus Ma. Lava III and Mariam Hazel Pugoy-wee l July 17, 2026 l BusinessWorld
Philippine business leaders are entering a new phase of business resilience and sustainability, with companies moving beyond foundational environmental, social and governance (ESG) programs and facing pressure to embed sustainability into risk, strategy, governance, data systems, and core operations.
According to the Philippines 2026 C-Suite State of Corporate Sustainability Report by Deloitte Philippines and the Financial Executives Institute of the Philippines (FINEX), sustainability issues are already affecting compa-nies, with climate-related disruptions emerging as the most widespread concern.
Nearly half of the respondents expect climate change to have a high impact on their operations over the next two years, with more than 80% of the total respondents saying that their organizations were already dealing with operational disruptions from climate-related disasters or weather events, and 70% citing that they were mindful of scarcity or the rising cost of resources, as well as the cost of climate change mitigation.
More than climate change’s effect in their operations, Philippine companies are also leveraging sustainability actions to reinforce long-term resilience, prioritizing initiatives with clear business returns. Seventy-two percent of executives said their organizations had increased energy efficiency, while 75% were either already purchasing renewable energy sources or expecting to do so within the next year. This suggests that climate change is now per-ceived by executives as a near-term operational reality.
These data from the country’s biggest leaders are a testament that investment momentum has not reversed even amid economic uncertainties. None of the respondents reported on reducing sustainability investments over the past year and 92% said their investments either remained steady or increased slightly. The strongest external force for these investments is still regulators, with 29% of respondents identifying regulatory pressure as their main driver to signif-icantly increase climate action.
THE BARRIERS TO BROADER SUSTAINABILITY IMPLEMENTATION
Persistent execution gaps, however, were also highlighted in the report. The biggest barriers to broader sustainability implementation are operational: difficulty in measuring actual impact, lack of data, lim-ited internal capacity, and fragmented reporting requirements. For corporate reporting, the top challenge is the readiness of internal systems and processes to collect and report accurate data, followed by lack of clarity and uniformity across reporting requirements.
These gaps are becoming more urgent following the Philippines’ adoption of PFRS S1 and S2, which marks a shift away from standalone sustainability reporting toward disclosures that integrate sustainability con-siderations into strategy, operations, risk management, and financial reporting. By 2028, publicly listed companies with market capitalization exceeding P50 billion are expected to fully adopt the new standards.
Against this backdrop, barriers to effective sustainability reporting underscore the imperative to focus on institutionalizing sustainability through clear governance structures, regular materiality and risk assessments, stronger data collection practices, and integration of sustainability responsibilities across other business functions.
And while the foundations of sustainability has already been built by Philippine companies, the next challenge is to exercise integration: making sustainability a functional part of how companies manage risk, allocate capital, build resilience, and create long-term value.
***The views expressed herein are their own and do not necessarily reflect the opinion of their office as well as FINEX. For comments, email jlavalll@deloitte.com or mpugoy@deloitte.com. Photo is from Pinterest.