THE Philippines will pilot a new sustainability self-assessment tool designed to help micro, small and medium enterprises (MSMEs) transition to circular business practices, as the East Asia Business Council (EABC) steps up efforts to make regional trade more inclusive and environmentally sustainable.
The Circular Business Check, supported by the European Union’s Switch-Asia Program, will be rolled out in the Philippines, Indonesia and Thailand ahead of a wider regional launch during the EABC Forum in September 2026.
The tool enables MSMEs to assess their sustainability performance and identify areas for improvement in environmental, social and governance (ESG) practices.
The initiative forms part of the East Asia Circularity Agenda, a regional program that also includes the development of the East Asia Circularity Roadmap 2030, a Green Business Diagnostics Toolkit, and training programs on circular economy, resource efficiency, waste-to-value solutions and ESG compliance.
“The circular economy provides a practical framework for MSMEs to demonstrate commitment and action on environmental, social, and governance performance,” EABC chairman Jay Yuvallos said, noting that many smaller businesses recognize the importance of sustainability but lack practical tools to translate commitments into measurable action.
Circular Business Check
The Circular Business Check was introduced following the signing of a strategic cooperation charter between the EABC, the Asean Circular Economy Business Alliance (Aceba), and Araiba Sdn. Bhd. to promote responsible business practices across East Asia.
The agreement was signed by Yuvallos, Aceba president Thomas Thomas and Araiba chairman Dr. Muhammad Firdaus Abdullah, with EABC co-chair Tetsuya Matsuoka of Japan and Aceba co-convenor Dr. Rene van Berkel serving as witnesses.
The circular economy initiative was among the key outcomes of the 66th EABC Meeting held on May 25 at the Tokyo International Forum under the 2026 Philippine-Japan co-chairmanship.
The meeting gathered business leaders from Asean Plus Three economies to discuss ways to strengthen regional value chains, improve the use of the Regional Comprehensive Economic Partnership (RCEP), expand digital trade, promote sustainability and enhance MSME resilience.
Participants also reviewed plans for the East Asia Circularity Roadmap 2030 and discussed the 2026 Business Outlook Survey, which will gauge private sector views on RCEP utilization, supply chain resilience, digital trade, cross-border payments and circular economy readiness across the region.
RCEP recommendations
Separately, EABC presented recommendations to policymakers during the RBAC-RCEP Joint Committee Dialogue in Manila on June 1, urging governments to improve businesses’ use of the RCEP trade pact by addressing non-tariff barriers, developing an artificial intelligence-powered RCEP information chatbot and institutionalizing regular dialogue between business leaders and trade ministers.
According to the council, several proposals received support from member economies, including Indonesia, Japan, New Zealand and the Philippines, reflecting growing private sector participation in shaping regional economic cooperation.
EABC said the initiatives aim to ensure that regional trade agreements and sustainability programs translate into tangible opportunities for MSMEs, enabling smaller businesses to participate more effectively in East Asia’s increasingly integrated economy. / KOC