Katrina FranciscoCarlo Kristle DimarucutRajiv KakarThe annual corporate governance training of directors and officers of publicly listed companies (PLCs) associated with the Lopez Group was conducted online on Oct. 28, with speakers from SGV & Co.

SGV partner Katrina Francisco gave updates on the sustainability reporting regulation in the country. The Philippine Sustainability Reporting Standards Council has proposed the adoption of sustainability disclosure standards by fiscal year 2025, while the Securities and Exchange Commission (SEC) is developing the road map for mandatory adoption by fiscal year 2026.

Francisco delved into the climate-related disclosures called IFRS S2, as developed by the International Sustainability Standards Board for the International Financial Reporting Standards (IFRS) Foundation. IFRS S2 requires the disclosure of the financial impact of climate-related risks and opportunities on an entity.

Entities are also required to disclose information about the resilience of their strategy and business model to climate-related changes, developments and uncertainties. It will have to conduct climate-related scenario analysis to assess its climate resilience.

“An entity is not required to disclose the results of its scenario analysis, but its interpretation of those results must be disclosed,” Francisco said.

SGV partner Carlo Kristle Dimarucut discussed trends in business continuity management (BCM) and the shift toward operational resilience which expands the coverage of BCM to include risks of disruption to customers and the economy instead of only to the business.

BCM has been key to survival in the face of health and technological risks, climate-related disasters, economic uncertainties, geopolitical tensions and workforce flux. Meanwhile, developing operational resilience requires leadership commitment, cross-functional collaboration and technological enablement.

Finally, SGV consulting principal Rajiv Kakar walked participants through general guidelines for assessing and governing generative artificial intelligence (GenAI) programs. While AI has associated risks and challenges, the market for it is expected to reach $772 million in 2024 and $3.5 billion by 2030. In terms of economic impact, AI is expected to boost the country’s gross domestic product by 12% by 2030, as well as to potentially automate 50% of tasks in ASEAN’s four largest economies.

Kakar advised participants to seize opportunities for AI applications, mindful of the need to develop a knowledgeable workforce while complying with regulatory and ethical standards.

The continuing education of professional directors and officers of listed companies is required by the SEC. In attendance were delegates from ABS-CBN, ABS-CBN Holdings Corporation, First Gen Corporation, First Philippine Holdings Corporation, Lopez Holdings Corporation and Rockwell Land Corporation. Joining them were directors and officers of Energy Development Corporation, Lopez Inc. and some of its subsidiaries.

Photos by: www.sgv.ph