By Charity Aurellano, Partner; Raphael Pangalangan, Special Counsel, Ocampo & Suralvo Law Offices
Published in Asia Business Law Journal, May/June 2023 issue (posted online July 2023).
The Philippines has no single ESG statute. Instead, environmental, social and governance standards appear across many laws and regulations. These include pollution, waste and energy-efficiency laws, the Extended Producer Responsibility Act 2022, labour, privacy and anti-trafficking laws, the Revised Corporation Code, and SEC circulars on corporate governance, sustainability reporting and sustainable investment funds.
The authors then look at foreign supply-chain due diligence laws, such as Germany’s Supply Chain Due Diligence Act and similar rules in France, the Netherlands, the US, the UK and the EU. These laws require companies to check the human rights and environmental record of suppliers throughout their supply chains. Their reach therefore extends to Philippine exporters that sell to those markets.
The practical takeaway is that Philippine suppliers, particularly exporters to Europe and the US, should be ready to demonstrate ESG compliance in order to keep their foreign customers. Companies need to navigate both Philippine and foreign requirements as part of doing business globally.
This article was first published in Asia Business Law Journal, May/June 2023 issue (posted online July 2023).