DOF Advocates Sustainability in Corporate Governance

Finance Secretary Ralph G. Recto underscored the critical role of sustainability in corporate governance to drive inclusive growth during the 25th Organization for Economic Cooperation and Development (OECD)-Asia Roundtable held on Dec. 11, 2024.

Delivering his message through Chief of Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco, Recto emphasized that sound corporate governance is the backbone of thriving investment climates and robust capital markets.

“For we believe that a strong corporate governance framework is the very foundation upon which a thriving investment climate and well-functioning capital markets are built,” he said.

Recto stressed that well-structured governance ensures capital markets fuel the economy and enables every Filipino to be a shareholder in the nation’s growth.

The OECD-Asia Roundtable, hosted by the Securities and Exchange Commission (SEC), serves as a premier platform for policy dialogue on corporate governance, finance, and sustainability. This year’s two-day forum brought together representatives from 18 countries to discuss the latest developments in these fields.

In his remarks, Recto highlighted the need for corporate governance to adapt to the evolving demands of technology, legal frameworks, and global economic trends.

He lauded the OECD’s recent update to the G20/OECD Principles of Corporate Governance, which integrates sustainability as a core principle, reflecting the growing significance of Environmental, Social, and Governance (ESG) factors in shaping business strategies.

“The Philippines strongly believes that ESG must be at the heart of every business operation,” Recto said. “Sustainability goes beyond accountability and safeguarding the integrity of financial markets—it is about future-proofing economies and enhancing global competitiveness.”

Recto further stressed that sustainability should no longer be treated as an afterthought but as a guiding principle in policy implementation and project execution.

At the forum, Recto also unveiled the OECD Capital Market Review of the Philippines, the first of its kind conducted by the OECD.

The review, a culmination of extensive consultations and regulatory assessments, highlights the increasing prominence of the Philippine economy on the global stage. It offers strategic recommendations to reform the country’s financial systems and accelerate the growth of its capital markets.

The OECD report reinforces the Philippines’ potential as a global player while advocating for sustainability and inclusivity in its financial ecosystem.

“This underscores the growing importance of Environmental, Social, and Governance [ESG] factors in shaping present and future business models,” Recto noted.

The forum and the launch of the market review signify the Philippines’ commitment to embedding sustainability in corporate governance and aligning with global standards to ensure its capital markets remain competitive and resilient.

The event sets the stage for reforms that can transform the Philippine financial landscape, making it a key driver of inclusive and sustainable growth in Asia and beyond.