Saturday, May 17, 2025

 PEZA launches sustainability reporting tool, sets pilot run

The Philippine Economic Zone Authority (PEZA) has unveiled a sustainability reporting initiative for companies located in economic zones to further strengthen efforts to incorporate sustainability into ecozone business operations as the country adapts to Industry 4.0 and global trends toward transparency and accountability.

The Sustainability Reporting Guidelines for Exporters (SURGE) was officially introduced on May 13, 2025, the outcome of a memorandum of understanding signed in 2022 by PEZA and the Global Reporting Initiative (GRI).

PEZA accounts for a significant portion of the country’s foreign direct investments and about 60 percent of annual exports of goods and services. The GRI is an international organization that helps businesses report on their sustainability performance.

Through its GRI Standards, the GRI provides a widely used framework for organizations to understand and communicate their impacts on the environment, economy, and social issues.

The voluntary adoption of the GRI standards by PEZA locators supports the Philippines’ broader commitments to the United Nations’ Sustainable Development Goals; United Nations Development Programme; environmental, social, and governance metrics; and equity, inclusivity, and diversity frameworks, said PEZA.

“In line with our government’s commitment of embracing a green economy, SuRGE reinforces PEZA’s broader initiatives towards creating a smarter and sustainable business environment for investors and our people,” said PEZA Director-General Tereso Panga at the launching ceremony.

“More than a compliance mechanism, SuRGE has evolved into a practical, forward-thinking guide for exporters to communicate their sustainability impacts, challenges, and progress. It is a roadmap for transformation—one that enables businesses to achieve sustainable growth while upholding social responsibility, environmental stewardship, and ethical excellence,” he added.

The SuRGE framework was created together with academic and industry partners and in consultation with registered business enterprises (RBEs) and key institutions, with support from the Swiss Embassy and the Swiss Confederation’s State Secretariat for Economic Affairs.

Anidelle Alguso, PEZA’s OIC deputy director general for policy and planning, said SuRGE will be rolled out in phases, with the pilot implementation taking place between 2025 and 2026.

About 20 to 50 RBEs in the manufacturing sector, primarily among PEZA’s top exporters to the United States and European Union, will participate in the initial phase.

Alguso said this pilot stage will “test the feasibility, usability, and relevance of the SuRGE tool and the ‘comply or explain’ reporting approach,” where RBEs may voluntarily submit their sustainability reports or provide reasons for non-submission. These justifications will be analyzed to enhance policy and develop support mechanisms such as targeted training programs.

Complementing the rollout is a capacity-building workshop, where RBEs will undergo training on sustainability fundamentals and reporting.

From 2026 to 2027, the program will be scaled up and be recalibrated as necessary, and training will expand to include more RBEs and possibly other sectors beyond manufacturing.

Priority industries for compliance and training during the SuRGE implementation are those with large environmental and social footprints, such as the textiles, food processing, and mining sectors.

“As exporters comply, their suppliers must also meet standards—creating a ripple effect across the value chain,” said Alguso.

Also to be given early-stage support are SMEs with potential to expand or export sustainably, the official said.

The rollout of the SuRGE framework marks a major step in embedding sustainability into economic zone operations through structured reporting and capacity-building.

“With shifting global market demands, sustainability and adaptability are no longer optional—they are critical for long-term resilience and success,” Panga stressed.

“To future-proof our industries and remain globally competitive, we embrace green technologies, reduce our ecological footprint, and ensure full alignment with our national climate goals as we further strengthen our goal of a more inclusive and sustainable Philippines.”

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