The CPA’s role in sustainability reporting
- Ken Asadon
- Nov 5, 2025
- 3 min read
IN just a few years, sustainability has moved from a corporate buzzword to a core theme in global financial reporting and governance.
My first real exposure to these concepts was at an Acpapp seminar sometime ago. Even then, the message was clear: CPAs have a crucial role in shaping the country’s sustainability reporting landscape.
The conversation has intensified — judging from the 25th Annual National Convention last month, and the Philippine Institute of Certified Public Accountants (Picpa) seminar recently. Discussions went beyond theory and into practical frameworks and transition strategies that organizations can adopt.
The growing frequency and depth of these sessions point to one undeniable truth: the future of reporting is evolving, and the Philippines must be ready to keep pace.
New guidelines
At the center of this shift are new guidelines issued by the International Sustainability Standards Board (ISSB), particularly IFRS S1 and IFRS S2.
IFRS S1 sets the foundation by creating a comprehensive framework for reporting sustainability-related risks and opportunities that may affect an organization’s financial performance, position and long-term value. It reinforces the idea that sustainability information should be held to the same level of discipline and reliability as traditional financial data.
Meanwhile, IFRS S2 zeroes in on climate-related disclosures. It requires companies to be transparent about how climate risks are governed, assessed and managed, and how these risks could influence strategy and operations. It also calls for detailed reporting on key climate metrics such as greenhouse gas emissions and scenario analysis.
Together, IFRS S1 and S2 integrate sustainability and climate considerations into the core of corporate reporting. They raise the bar for transparency, encourage better risk planning, and equip stakeholders with more meaningful information for long-term decision-making.
The Philippines stands to benefit greatly from the adoption of these standards, not only because they align us with global reporting expectations, but also because the country faces climate realities every single year. We are consistently ranked among the world’s most climate-vulnerable nations, and we see the consequences firsthand.
Typhoons destroy homes and livelihoods, floods paralyze cities, droughts threaten our food supply, and rising sea levels slowly swallow coastal communities. Add to that the threats of earthquakes and volcanic eruptions, and the picture becomes clearer: Our risks are real, and the stakes are high.
In this context, sustainability reporting is not simply a regulatory requirement. For us, it is a matter of long-term survival and shared responsibility. It is about ensuring that institutions — both public and private — prepare, adapt, and act with foresight and accountability.
The question then becomes: How ready is the Philippines for full adoption of IFRS Sustainability Standards? The answer varies.
Large publicly listed companies already have a foundation, thanks to the SEC’s Sustainability Reporting Guidelines, and many multinationals and leading local conglomerates have built sustainability frameworks into their operations.
However, the broader business community, particularly small and medium enterprises (SMEs) and private entities, is still catching up. Building awareness, training talent and upgrading systems will be essential in the coming years.
As accountants and finance professionals, our key role is to develop the expertise to measure, assess and assure sustainability information with the same rigor applied to financial data.
The seminars I’ve attended, from Acpapp to Picpa, reflect the profession’s growing determination to build this capability and move forward with confidence.
Like any major transformation, adopting IFRS S1 and S2 comes with opportunities and challenges. On the positive side, companies that embrace sustainability reporting early will benefit from increased investor trust, better access to capital, improved long-term resilience, and stronger reputation. Sustainability practices also drive efficiency, innovation and long-term value.
On the other hand, we cannot ignore the practical hurdles: compliance costs, the need for specialized talent, data collection complexities, and the reporting burden on smaller organizations. The transition will require investment, but it is for competitiveness and the future.
The theme of this year’s professional discussions, “Gearing Up for the New Era,” captures this moment perfectly. Accountants today are no longer just custodians of financial statements. We are becoming champions of integrated reporting, resilience, and responsible growth.
Sustainability sits at the intersection of finance, governance, environment and social responsibility. Preparing for this new era means enhancing our skills, embracing innovation, and stepping into a more strategic role in nation-building.
Ultimately, sustainability is not just a checklist or compliance task, but a commitment to building a better future. As Filipinos and as professionals, we stand at a turning point. With the adoption of IFRS Sustainability Standards and a proactive mindset, we are not simply adjusting to a new era; we are actively shaping it.
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Ken John B. Asadon, CPA, MBA, CrFA, is the tax partner of Paguio, Dumayas & Associates, CPAs (PrimeGlobal Philippines), an institutional member of the Association of CPAs in Public Practice (Acpapp).
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