Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Empowering Sustainable Communities2019 SUSTAINABILITY REPORT
About this ReportThis is the fourth sustainability report for Metro Pacific Investments Corporation (“MPIC”, “the Company” or “the Parent Company”) containing information about our environmental, social and governance (“ESG” or “Sustainability”) impacts for the year ending December 2019.
This report should be read in conjunction with our SEC Form 17A and our 2019 Information Statement. In line with our commitment to transparency and accountability, we have prepared this report in accordance with the Global Reporting Initiative (“GRI”) Standards: Core Option. DNV GL has provided an independent assurance statement for our sustainability / non-financial disclosures.
Contents
HIGHLIGHTS FOR 2019Recognition of leadership in Sustainability ReportingIn 2019, we received several awards for our previous sustainability reports:• The Asset ESG Gold Award for Excellence in Environmental, Social and Governance • Philippine Quill Awards for the 2017 Digital Sustainability Report• Sustainable Business Award – Special Recognition for Stakeholder Engagement and Materiality
We welcome feedback on this report and any matter concerning the sustainability performance of our business. Please contact us at:
Metro Pacific Investments Corporation Investor Relations 10/F MGO Building, Legaspi corner Dela Rosa Streets, Makati City, 0721, Philippines +63 2 8888 0888 [email protected]
The 2018 Sustainability Report was published on 27 May 2019 and is also available for download from the corporate website.
1 About this Report 2 Leadership Message 8 Company Profile / Key Metrics / Mission, Vision and Values 9 Core Assets – Simplified Ownership Structure 10 Contributions to Nation-Building 14 Part One : Governance 15 Value Creation 19 Responsibility for ESG 21 Economic Performance 24 Investment Selection and Portfolio Management 26 MPIC and the Sustainable Development Goals 29 Part Two : Sustainability Impacts 30 Boundary of ESG Performance 31 Operational Efficiency 49 Service Excellence 60 Engaged Employees and Safe Workplaces 75 Social Responsibility 90 Part Three : ESG Reporting Methodology 91 ESG Reporting Methodology 94 Annex 95 ESG Data Summary 99 Integrated Management System Certifications 102 GRI Content Index 106 Independent Assurance Statement
1
Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexAbout this Report
Leadership Message
DAVID J. NICOLExecutive Vice President and Chief Financial Officer
JOSE MA. K. LIMPresident and Chief Executive Officer
MANUEL V. PANGILINANChairman of the Board of Directors
TO OUR FELLOW STAKEHOLDERS,
We are living in an era of marked progress yet rising uncertainty.Although considerable progress has been made in attaining the targets outlined in the United Nations 2019 Sustainable Development Goals (“SDG”) Report1, enormous challenges remain. The report reveals that on current trends our region may not only fail to achieve any of the UN’s seventeen SDGs by 2030, we are also at risk of regression on several important development indicators, including clean water and sanitation (SDG 6), and decent work and economic growth (SDG 8).
Some areas of concern cited in the report include the need to: fortify energy efficiency —along with increasing energy access and affordability— as a means to reduce greenhouse gas emissions (SDG 7); intensify electrification efforts to reach those who are displaced or living in remote, hard-to-reach communities (SDG 7 and 11); develop resilient infrastructure to promote inclusive and sustainable industrialization (SDG 9); improve access to water and sanitation services with higher water use efficiency and increased wastewater treatment (SDG 6); develop convenient public transport as a catalyst for economic growth and social inclusion (SDG 11); and additionally, to strengthen health care for all (SDG 3). Progress in these basic services are essential for a community to be sustainable.
2
About this Report Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexLeadership Message
EMPOWERING SUSTAINABLE COMMUNITIES – AT THE HEART OF MPIC’S BUSINESSESWe at Metro Pacific Investments Corporation (“MPIC” or “the Company”) desire to be a driver for sustainable development. Our operating companies make a difference to the lives of millions of Filipinos every day – powering commerce and households, delivering clean and safe water, connecting people and places, and making world-class standards of healthcare available to all. Our continued investments in operating efficiency and service excellence reflect our commitment to empowering our communities toward becoming sustainable.
On our fourth year of reporting, we wish to give emphasis to the two main areas which we consider as challenges to the sustainability of our Company: governance, with regards to reliance on a stable regulatory environment; and climate change.
GOVERNANCE: RELIANCE ON A STABLE REGULATORY ENVIRONMENTIn evaluating our investment prospects, MPIC seeks to add value for customers and communities by improving the quality of infrastructure assets, enhancing the efficiency with which they are run, extending their coverage to more people and working closely with regulators to achieve shared goals.
With life cycles of 20 years or more, our infrastructure projects are by their very nature long-term. This means that our investments are intended to survive many political and economic cycles, and in managing our assets we expect to experience various regulatory and funding challenges from time to time.
For our business to be sustainable, we need to be able to apply a certain degree of reliance on the regulatory environment we operate in. Our franchise and concession agreements provide
for fair and transparent price increases in order to recover the significant capital costs required for the development and maintenance of high-quality infrastructure. However, just as the physical infrastructure in which we invest is underdeveloped, so, occasionally, are the political and economic institutions that support them. In our water, toll roads and light rail businesses, for example, regulators have in the past been reluctant to approve various tariff adjustments. We have worked our way through some of these issues with the current administration and have been pleased with the partial implementation of tariffs, thus far. But recent events following our continued expansion in our overall service coverage and attempted constructive engagement on residual tariff issues have, however, placed these operating companies at the forefront of government and public scrutiny once more.
Maynilad Water Services, Inc.’s (“Maynilad”) concession agreement, is being reviewed by the Government, which has advised us to expect the revised contract with inputs from Asian Development Bank. As of this writing, we await further clarity but for now have assumed the following at Maynilad: no new debt shall be drawn; no tariff increases shall be implemented in the near term; and capital expenditure will be focused in completing existing projects. Consequently, we also assume that Maynilad will be unable to pay dividends in the foreseeable future and MPIC will need to recast its capital expenditure program.
In these circumstances, questions have been raised regarding investment in Philippine-regulated infrastructure and the sources of capital to support this. There are no quick or easy answers to these questions but the current model of a listed infrastructure business with a wide pool of dedicated Philippine and foreign shareholders putting their faith in these long-term contracts needs serious review. We remain cooperative with Government and believe that a mutually beneficial outcome can be achieved that will allow us to continue serving the public together as partners.
Leadership Message
3
About this Report Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexLeadership Message
Leadership MessageCLIMATE CHANGEGlobally, it is no surprise to note that the most urgent area for action is climate change. The UN 2019 SDG Report1 stresses that the compounded effects of climate change will be catastrophic and irreversible: increasing ocean acidification, coastal erosion, extreme weather conditions, the frequency and severity of natural disasters, continuing land degradation, loss of vital species and the collapse of ecosystems. Risk areas that are most relevant to our Company include rising greenhouse gas emissions and exacerbating disaster risk.
RISING GREENHOUSE GAS EMISSIONS (“GHG”)Highlighted in an article from the Forbes Magazine2, globally, there has been a 20% drop in newly commissioned coal power capacity since 2017, a 24% drop in pre-construction activity and a 39% fall in new construction starts. Since 2015, the number of newly-completed coal power plants fell 53% while the number of new construction starts plunged 84%. According to a report3 from the Global Energy Monitor, Greenpeace India and the Sierra Club published in March 2019, this is the reason why for the third straight year in a row, in 2018, the number of coal-fired power plants under development across the world fell sharply.
This situation does not apply in the Philippines however, where energy security remains a major threat. Data from the Department of Energy showed that coal power provides the single-biggest source of electricity for the country at 52%. Oil-based and coal power sources are expected to continue to dominate the supply mix to cater to baseload requirements. As a result, even in the DOE’s “Clean Energy Scenario” in its Philippine Energy Plan4 from 2017 to 2040, total coal supply is expected to rise by 5% annually, giving rise to increasing GHG emissions in the country. Building and operating coal-fired plants is still seen as the most cost-effective way to address the Philippines’ growing energy needs.
TOTAL PRIMARY ENERGY SUPPLY BY FUEL TYPE – BUSINESS AS USUAL VS CLEAN ENERGY SCENARIO4
Under the Electric Power Industry Reform Act of 2001, a distribution utility like Manila Electric Company (“MERALCO”) has the obligation to supply electricity in the least cost manner to its captive market, subject to the collection of retail rate duly approved by the Energy Regulatory Commission. Operating under this mandate, in 2019, MERALCO commissioned its 500 megawatt (“MW”) San Buenaventura Power Limited Co. (“SBPL”) Supercritical Coal-Fired Power Plant in Mauban, Quezon. Although SBPL is the first in the Philippines to use high efficiency, low emission technology and the most advanced operating coal-fired power plant in the
1 The Sustainable Development Goals Report 2019. United Nations.2 Report: New Coal Power Projects Are In Decline Across The World. McCarthy, Niall, Forbes Magazine. March 20193 Boom and Bust 2019 Tracking the Global Coal Plant Pipeline. Global Energy Monitor, Greenpeace Environmental Trust, and Sierra Club. March 2019.4 Philippine Energy Plan: Energy Demand and Supply Outlook 2017-2040, Department of Energy.
4
About this Report Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexLeadership Message
Leadership Messagecountry, it was still the primary reason why aggregate carbon emissions from MPIC’s portfolio companies increased faster than system-wide revenues year-over-year.
100% Aggregate 2019 2018 % Change
Aggregate Carbon Emissions 7,978,356 6,878,000 16.0%
System-wide Revenues in P millions 424,490 405,699 4.6%
Carbon Intensity 18.80 16.95 10.9%
We are mindful of this and have begun intensifying our efforts to reverse this trend through various renewable energy initiatives across the MPIC group. At the MPIC Parent Company, we are exploring opportunities to convert waste into energy. This includes the Surallah and Polomok waste-to-energy biogas plants that we are in the process of developing for Dole Philippines. We are also awaiting Notice of Award to build the Quezon City Solid Waste Management Facility that could convert up to 3,000 metric tons a day of municipal waste into electricity.
In 2019, MGEN Renewable Energy, Inc. (“MGreen”) was established to serve as MERALCO’s subsidiary for its renewable energy (“RE”) investments. MGreen intends to be a key player in this expanding sector and is determined to develop 1,000 MW of RE projects over the next five to seven years. The focus will be on the development of a portfolio of utility scale solar, wind and hydro power projects to supply Luzon grid and electricity consumers while maintaining competitive tariffs. MERALCO has initially earmarked equity funding of P424 million for approximately 210 MW of solar projects to be undertaken by MGreen with various partners. MGreen also recently began construction of its first project, a P4.3 billion
50 MW Solar Power Plant in San Miguel, Bulacan under PowerSource First Bulacan Solar, Inc. which is targeted to be completed by the end of 2020.
Global Business Power Corporation (“GBP”), our power generation arm in the Visayas, will also be investing in renewable energy projects that would complement its existing portfolio. As part of its commitment to deliver sustainable energy solutions to its customers, it is looking at a 500 MW pumped storage hydro power plant and an 80 MW solar power plant, among others. GBP has a total gross capacity of 854 MW, mostly utilizing a clean coal combustion platform called Circulating Fluidized Bed (“CFB”) Boiler Technology to minimize emissions.
The GBP Institute for Energy (“GIE”) – a state-of-the-art learning facility established by GBP to promote energy efficiency through technical education and better understanding of clean coal technology – produces part of its own power requirements through the 240 solar panels installed on the building which can produce up to 66 kilowatts of electricity. Maynilad has also integrated solar panels for on-site renewable energy in its Safety Center while North Luzon Expressway has rolled-out solar power systems on major toll plazas; streetlights, emergency callboxes and some CCTVs. Further transition to the use of solar panels is being considered across the MPIC group’s facilities as a means to offset some of the portfolio’s carbon footprint.
EXACERBATING DISASTER RISK The UN SDG 2019 Report1 also states that from 1998 to 2017, climate-related disasters around the world accounted for 77% of the nearly US $3 trillion in direct economic losses from disasters. Undoubtably, increasing disaster risk is of significant concern to our portfolio companies because the services we provide are deemed essential to the daily lives of our customers. Throughout our business, we adopt a precautionary approach to implementing cost-effective measures to manage and mitigate environmental and disaster risks in
5
About this Report Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexLeadership Message
Leadership Messageaccordance with our long-term business objectives. Subject to the cost considerations reflected in relevant concession and franchise agreements, our operating companies have business interruption and environmental risk insurance in place to mitigate the risks of destruction to life and property. We are also continuously reviewing and enhancing our business continuity processes, disaster recovery programs and crisis management capabilities.
Notable initiatives include MERALCO’s disaster resiliency programs that are aimed to strengthen or relocate facilities such as sub-stations, sub-transmission and distribution lines – those which are most susceptible to damage during heavy storms, typhoons and earthquakes. They have also reinforced their Alert and State of Emergency Procedures to ensure prompt restoration of services in disaster-affected areas. This was evident in 2019 with the immediate power restoration for customers affected by sustained interruptions caused by Typhoon “Tisoy” (“Kanmuri”). MERALCO also assisted other power distributors in the aftermath of Tisoy as well as the Taal volcano eruption at the start of 2020.
Through the GBP GIE, plant operators have the opportunity to use a specialized CFB simulator to study and practice different responses to real life operational situations including emergencies that require critical decision-making to harness their technical expertise and preparedness during operational and maintenance contingencies.
Maynilad was recently recognized by the Department of Health’s Metro Manila Center for Health and Development for its Water Safety Plan (“WSP”). The Maynilad WSP details programs and procedures that will ensure the safety of water supplied to customers, and corrective actions in case of water contamination. It outlines processes for hazard analysis, risks assessment and various control measures to contain and mitigate water contamination brought by disasters such as landslides, and security threats such as terrorist sabotage, among others. Our water company received the recognition after undergoing
an intensive system audit by the WSP Review Committee composed of members from the DOH, Metropolitan Waterworks and Sewerage System-Regulatory Office, National Water Resources Board, and members of the academe and water industry. Maynilad is a pioneer in the development of WSPs in the country, with its WSP being adopted by the World Health Organization as a model for over 30 countries in the Western Pacific Region, and by the DOH as a reference for over 120 local water districts in the Philippines. Lauded by Australian Agency for International Development and the World Bank as one of the most comprehensive WSPs in the world, Maynilad’s WSP was previously honored by the World Health Organization and the International Water Association as an excellent case study in providing safe drinking water by a water service provider to its customers.
RESPONDING TO THE GLOBAL CALL FOR ACTION Across the MPIC group, we recognize that there is much that can still be done to respond to the global call for action. We are pleased to share with you some of our efforts to mitigate the impacts of climate change; enhance water security; and reduce waste.
In October 2019, we opened the first 10.7 kilometers (“km”) of the Cavite Laguna Expressway (“CALAX”) utilizing Automatic License Plate Recognition (“ALPR”) technology. ALPR is being used as a tool to capture vehicle plate numbers as they enter the expressway. Upon exit, the entry points are verified and the amount to be collected is determined. The use of this technology also allows for the implementation of a barrierless single-lane entry (free flow) toll collection system. Not only does this reduce queuing times in toll plazas, it also lessens the use of paper tickets. It is estimated that free flow entries can cater to 1,000 vehicle entries per hour versus only 300 – 400 vehicle entries for those with barriers. Upon full implementation across the entire 45 km length of the CALAX, approximately 15,330 kilograms (“kg”) of carbon dioxide emissions and over 1,000 kg of solid waste can be avoided each year.
6
About this Report Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexLeadership Message
Leadership MessageMaynilad continues to invest heavily in its non-revenue water reduction program which has resulted in the recovery of approximately 979 million liters per day of water since 2008 through leak repairs and pipe replacement. This recovered volume is enough to fill up roughly 390 olympic-size pools every day, and supply about 1.7 million households with potable water. This additional supply has gone a long way in supporting our drive to expand services to previously unserved areas.
In the Philippines, we are concerned about the rising effects of population growth on overuse of our natural resources. Solid waste, in particular single-use plastics (“SUP”), is an intractable problem for many local communities; choking up our nation’s stunning coastlines and life-giving waterways among other harmful impacts. In response to increasing public concern as well as new regulations, a progressive ban on consumption of SUP was introduced in our facilities and operations. MERALCO is leading the way with eradication of SUP, including straws, food utensils, beverage bottles, grocery bags and other containers. Several operating companies, such as NLEX Corp., Light Rail Manila Corporation and some hospitals have also eliminated SUP from their canteens. We are working closely with employees, suppliers and customers to strike the right balance between making a meaningful difference on reducing plastic pollution without compromising the quality of our services.
FUTURE-PROOFING OUR BUSINESSESAt MPIC, our vision for sustainable business growth is focused on creating value for all stakeholders, including employees, shareholders, supply chains, civil society, and the planet by identifying and addressing Environmental, Social and Governance (“ESG”) challenges. Our Board has the fundamental responsibility to ensure that the Company is future-proofed
against ESG risks by providing oversight on planning and strategizing of short and long-term goals. We are continually talking with and learning from our stakeholders so that we are well positioned to anticipate and react to economic, social, environmental, and regulatory changes as they arise.
OUR CONTINUING COMMITMENT TO TRANSPARENCYWe invite you to learn more about MPIC’s management approaches to ESG in this report. We disclose key performance indicators that help us quantify and evaluate our impacts in these areas because leadership comes from managing what we measure. As you read on, we hope that you will be inspired to join us in taking the urgent need for sustainable solutions to heart, and partner with us to play a significant role in empowering sustainable communities.
Thank you for your continued support.
MANUEL V. PANGILINANChairman
of the Board of Directors
JOSE MA. K. LIM President and
Chief Executive Officer
DAVID J. NICOLExecutive Vice President
and Chief Financial Officer
1 The Sustainable Development Goals Report 2019. United Nations.2 Report: New Coal Power Projects Are In Decline Across The World. McCarthy, Niall, Forbes Magazine. March 20193 Boom and Bust 2019 Tracking the Global Coal Plant Pipeline. Global Energy Monitor, Greenpeace Environmental Trust, and Sierra Club. March 2019.4 Philippine Energy Plan: Energy Demand and Supply Outlook 2017-2040, Department of Energy.
7
About this Report Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexLeadership Message
Company Profile Key Metrics Mission, Vision and ValuesMPIC is a Philippine-based, publicly listed investment management and holding company registered with the Philippine Securities Exchange Commission (“SEC”). We are a leading infrastructure holding company with a diverse set of assets held through our operating companies. Through acquisitions and strategic partnerships, we seek to create value by upgrading infrastructure, improving operational efficiency, increasing customer coverage and working closely with regulators and other partners in government.
Location of headquarters: Makati, Philippines
Location of operations: Predominantly in the Philippines; (some subsidiaries have operations in Thailand, Indonesia and Vietnam but these have been excluded from this report due to lack of operational control)
Date of incorporation: 20 March 2006
Ownership and legal form: Publicly listed company with common shares of stock listed in and traded through the Philippine Stock Exchange
Metro Pacific Holdings, Inc. (“MPHI”), a Philippine corporation, owns 41.9% of total issued common shares in MPIC. As sole holder of the voting Class A Preferred Shares, MPHI’s combined voting interest is estimated at 55.0%. MPHI’s stockholders are Enterprise Investment Holdings, Inc. (“EIH”) (60.0%), Intalink B.V. (26.7%) and First Pacific International Limited (13.3%). First Pacific Company Limited, a company incorporated in Bermuda and listed in Hong Kong, holds 40.0% equity interest in EIH.
Core businesses: Investment management with investments in power distribution and generation, toll road operations, water treatment and distribution, healthcare operations, light rail, logistics and other services
OUR MISSIONWe are the leading Philippine infrastructure investment firm. We manage, transform and grow our companies while continuously seeking investment opportunities to create long-term value for our shareholders.
OUR VISIONWe have a stellar portfolio of infrastructure assets, each being the dominant player in its field. We are admired globally for excellence in investing in and transforming infrastructure. We attract, retain and develop world-class talent.
Through our companies and Foundation, we significantly contribute to the economic development of the Philippines and thereby uplift the quality of life of every Filipino.
OUR VALUESTeamwork and EmpowermentWe recognize the diverse strength and abilities within the team. We enable and inspire people to achieve superior results.
Integrity and TransparencyWe adhere to the highest ethical and corporate governance standards.
EntrepreneurshipWe innovate, take risks, act quickly and decisively, and are customer focused.
Financial Discipline and AccountabilityWe employ rigorous financial analysis to arrive at sound business decisions.We are results driven and meet our commitments.
Number of employees: Parent Company: 56MPIC Group: +27,000 (through subsidiaries and associates managed by MPIC)
System wide net sales: P424.5 billion (including revenues of associates, the largest of which is MERALCO)
Total capitalization: P109.9 billionas of 31 December 2019
MPIC Parent Company gearing ratio: 61.3%
8
About this Report Leadership Message Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexMission, Vision and ValuesKey MetricsCompany Profile
For more information about… • MPIC’s associates and subsidiaries: Notes 10 and 39 of the Audited Consolidated Financial Statements and schedule V of MPIC’s 2019 Annual Report. Available on the PSE edge website or
our own corporate website
Core Assets - Simplified Ownership Structure
45.5% 62.4%
Power
99.9%
Philippine Tollroads75.1% to 100%
Regional Investments(Thailand, Vietnam, Indonesia)
29.5% to 76%Toll Roads
52.8% 100%
Water
20%
55%
100%
Healthcare
Light Rail
Logistics
Others
9
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexCore Assets
P5
P6
P7
P8
P3P4
P1Central Luzon
T2
T3
T4
T1
P2
H4
H5
Mindanao
W4
W5
W7
W6
H9W2
H15
H17
H7 H11
W8H2
H3H6
H19
H8
H18
H16
W3H1
W1
Greater Manila
R1
Luzon
H13
H14H10
H12
H20
H21
Contributions to Nation-BuildingThis map identifies the locations of our major assets and operations in the Philippines, providing an overview of the markets we serve. Please note that not all the facilities in this map are included in the boundary of this report. Please refer to Part THREE: Report Scope and Topic Boundaries for more information.
2019 Key Performance Indicators
3,851 GWhGBP energy sales
46,871 GWhMERALCO energy sales
30 millionMERALCO estimated population served
POWER
TOLL ROADS
283,296NLEX average daily vehicles
70,551SCTEX average daily vehicles
181,656CAVITEX average daily vehicles
535 MCMVolume of water billed
727 MCMVolume of water supplied
9.7 millionEstimated population served
WATER
3,235Total beds available
3.7 millionNumber of out-patients
201,131Number of in-patients
HEALTHCARE
446,943Average daily ridership
178,417Total passenger trips
161,346,440 Total number of riders
LIGHT RAIL
Greater Manila
Visayas
Central Luzon
T5
10
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexContributions to Nation Building
Manila Electric Company (“MERALCO”) is the largest electricity distribution company in the Philippines with a franchise area of 9,685 square kilometers (“km2”) encompassing 37 cities and 74 municipalities, including Metro Manila, all of the provinces of Rizal, Cavite and Bulacan, and parts of the provinces of Pampanga, Batangas, Laguna and Quezon. In September 2019, MERALCO’s San Buenaventura super critical coal-fired power plant started operations.
Cebu Energy Development Corporation (246 MW)
Panay Energy Development Corporation (“PEDC”) PEDC 1 & 2 (164 MW) PEDC 3 (150 MW)
Toledo Power Co. (“TPC”)TPC Sangi (60 MW) TPC 1A (82 MW) TPC Carmen (40 MW)
Panay Power Corporation (“PPC”) PPC 1 & 2 (92 MW) PPC 3 (7.5 MW) PPC 4 (5 MW)
GBH Power Resources Inc. (7.5 MW)
Sarangani Energy Corporation Phase I and II (237 MW) – owned through Alsons Thermal Energy Corporation
Global Business Power Corporation (“GBP”) is a leading energy company in the Visayas and Mindoro Island. Its power generation portfolio consists of 11 operational power plants with 854 MW aggregate capacity.
Metro Pacific Tollways Corporation (“MPTC”) operates and maintains 223 km of expressway across major domestic toll road systems with a further 62 km under development in the Philippines.
It also has toll road investments in Thailand, Vietnam and Indonesia.
TOLL ROADS
POWER
T1 North Luzon Expressway (104 km)
T3 Cavite Expressway (“CAVITEX”) (14 km)
T5 Cavite Laguna Expressway (“CALAX”) (first 11 km)
T4 CAVITEX C5 Link Expressway (first 2 km)
T2 Subic-Clark-Tarlac Expressway (“SCTEX”) (94 km)
P1 MERALCO Franchise Area P2 San Buenaventura Power Limited 500 Megawatts (“MW”) gross
P3
P4
P5
P6
P7
P8
Luzon
Visayas
Central Luzon
Mindanao
P5
P6
P7
P8
P3P4
P1Central Luzon
T2
T3
T4
T1
P2
T5
11
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexContributions to Nation Building
Maynilad Water Services Inc. (“Maynilad”) is the clean water and wastewater services provider for the West Zone of Greater Metro Manila. Its concession area covers 540 square km encompassing 17 cities and municipalities.
WATERMetro Pacific Hospital Holdings Inc. (“MPHHI”) is the largest hospital operator in the Philippines with a portfolio of 16 hospitals nationwide. It also operates a network of primary care clinics and cancer centers among other investments in allied healthcare services.
HEALTHCARE
H1 Asian Hospital & Medical Center
Manila Doctors HospitalH8
Makati Medical CenterH3
H6 Our Lady of Lourdes Hospital
H2 Cardinal Santos Medical Center
H5 Sacred Heart Hospital
Central Luzon Doctors Hospital (“CLDH”)H4
Los Baños Doctors Hospital & Medical CenterH15
Manuel J. Santos HospitalH16
De Los Santos Medical CenterH7
Davao Doctors HospitalH10
Marikina Valley Medical CenterH9
Dr. Jesus C. Delgado Memorial HospitalH11
Riverside Medical Center (“RMCI”)H13
St. Elizabeth Hospital (“SEHI”)H12
West Metro Medical CenterH14
Light Rail Manila Corporation (“LRMC”) has a 35-year concession to operate and maintain the 20.7 km LRT-1 in Metro Manila with 20 stations.
Construction is ongoing for an additional 11.7 km which will add eight new stations.
R1 LRT-1
LIGHT RAIL
Putatan Treatment Plant 1 & 2W3
W1 Maynilad Concession Area
W2 La Mesa Treatment Plant 1 & 2
W7 Eco-System Technologies
Metro Iloilo Bulk WaterW4
W5 Cagayan de Oro Bulk Water
W6 Laguna Full Concession
Metro Pac Water Investments Corporation (“MPW”) focuses on water projects outside of Metro Manila. It also has investments in water projects in Vietnam.
Greater Manila
Cancer Centers
Metro Radlinks NetworkH13 Metro RMCI
H14 West Metro
H20 Lipa Medix
H21 Calamba
Primary Care Center
H19 Keralty Metlive
H17 Megaclinic
H18 Tophealth H12 Metro SEHI
Metro CLDH H4
H4
H5
Mindanao
W4
W5
W7
W6
H9W2
H15
H17
H7
W8H2
H3H6
H19
H8
H18
H16
W3H1
W1
Greater Manila
R1
Luzon
Visayas
H13
H14H10
H12
H20
H21
H11
12
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexContributions to Nation Building
HIGHLIGHTS FOR 2019MERALCO’s MGEN Renewable Energy, Inc. (“MGreen”) begins construction of 50 MW Solar Power PlantConstruction started on PowerSource First Bulacan Solar, Inc. a 50 MW Solar Power Plant in San Miguel, Bulacan. This project is 40%-owned by MGreen and is expected to be completed in 2020 at a total project cost of P4.25 billion.
HIGHLIGHTS FOR 2019Accolades for MPTC as a leader in its fieldMPTC has been named “2019 Project Sponsor of the Year” by Hong Kong-based “The Asset Magazine” in the transport sector, institutional awards category. ASEAN country category awards were handed out to the following MPTC-sponsored deals: • “PPP Deal of the Year” – Cavite Laguna Expressway • “Transport Deal of the Year” – Cebu Cordova Link Expressway • “Transport Deal of the Year-Highly Commended”- Cavite
Expressway
MPTC also received the “2019 ASEAN Business Award for Priority Integration Sector: Infrastructure” in the Large Tier category. Other major domestic projects recently completed by MPTC include:• NLEX Harbour Link Segment 10 (opened in February 2019)• CAVITEX C5 Link Expressway (first 2.2 km subsection opened in
July 2019)• CAVITEX R-1 Enhancement projects• CALAX (first 10.7 km opened in October 2019)
“With all this investment, we are hoping to raise the level of convenience and satisfaction of motorists traveling our expressways.” —J. Luigi L. Bautista, President and General Manager of NLEX Corp.
HIGHLIGHTS FOR 2019LRMC breaks ground on LRT-1 ExtensionLRMC started construction of the 11.7 km LRT-1 Cavite Extension which will link Pasay and the rest of Metro Manila to Cavite and dramatically shorten travel time. Phase 1, involving five stations from Pasay City to Parañaque City, is expected to be completed in 2023. The full extension will add a total of eight stations to LRT-1 and cut travel time between Baclaran and Bacoor from one hour and ten minutes to 25 minutes.
In anticipation of even greater foot traffic through EDSA Station in future years, in 2019, LRMC also embarked on a P15 million project to develop a bigger concourse with additional space for passenger queuing.
13
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexContributions to Nation Building
Part OneGovernance
Value Creation
Responsibility for ESG
Investment Selectionand Portfolio Management
Economic Performance
MPIC and the Sustainable Development Goals
14
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology AnnexPart One: Governance
At the core of MPIC’s Sustainability Framework is our Mission to create long-term value for our stakeholders through six Core Drivers of our business that reflect the main roles, responsibilities and activities of the Parent Company:
1. Investment Selection and Portfolio Management
2. Strategy Management and Leadership Selection
3. Risk Management
4. Good Governance and Ethical Business Practices
5. Employee Welfare
6. Social Responsibility
Value Creation
Optimized Infrastructure Development
Resource Efficiency
Clean Operations
Business Continuity
Community Engagement
Educational Support
Greening Initiatives
Disaster Relief and Response
Increasing Access to Service
Customer Experience
Commensurate Services
Service Continuity
Employee Relations and Diversity
Health and Safety
Competency and Skills Development
Equal Opportunities
In accordance with our Sustainability Framework, we monitor and evaluate our operating companies’ performance with respect to four pillars of sustainability:
1. Operational Efficiency
2. Service Excellence
3. Engaged Employees and Safe Workplaces
4. Social Responsibility
The content of Part Two: Sustainability Impacts of this report aligns with these four pillars.
15
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Value Creation
Influences
Employees
Investors
Partners
Creditors
Operating Companies
Employees
Investors
Environment and Communities
Creditors
Regulators
Serv
ices
Capi
tal a
nd L
eade
rshi
p
Customers/Public
Stakeholders of MPIC and Our Operating Companies
STAKEHOLDER ENGAGEMENT
At MPIC, we consider the distinct interests of all stakeholders when making decisions about our business and its future.
These stakeholders were identified and selected as the Company assessed which groups are most impacted by the topics that are material to us.
The Parent Company engages directly with stakeholders through a variety of channels to enable them to make well-informed assessments and decisions about our business.
Frequent dialogue and information exchange by our operating companies with their respective stakeholder groups is also integral to our Sustainability Framework.
16
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Value CreationMETHODS AND OUTCOMES OF STAKEHOLDER ENGAGEMENT DIRECT STAKEHOLDERS
Employees • Annual performance appraisals • Bi-annual employee satisfaction surveys • Year-round training and development programs • Year-round health and wellness programs
• E-mail blasts and bulletins • Annual team building activity• Social media
• Working conditions• Safe and secure workplace • Career advancement opportunities • Work-life balance • Transparent, honest and professional leadership
Partners • Regular board committee meetings • Quarterly board meetings
• Individual meetings, as necessary • Conference calls and e-mail correspondences
• Cash flow and profit performance • Representation in regular board committees and board meetings • Updates on regulatory resolution• Business outlook
Investors and Creditors
• Individual meetings • Quarterly financial and operational briefings• Annual General Stockholder Meeting • Corporate disclosures• Corporate website • Investor conferences and roadshows
• Site visits• Conference calls and e-mail correspondences • Annual participation in Global sustainability
indices, including Dow Jones Sustainability Index and Carbon Disclosure Project
• Updates on regulatory resolution• Capital allocation• Overall cash flow and funding strategy • Financial and operational performance• Business outlook• Share price performance
Government and Regulators
• Industry-wide regulatory briefings • One-on-one discussions during project bidding processes
• Participation in public consultations, as necessary • Submission of comments and related inputs on new rules and regulations
• Compliance with laws and regulations• Disclosures and standards of reporting
Operating Companies
• Regular board meetings • Regular management committee meetings • Annual budget meetings
• Conference calls and e-mail correspondences• Training sessions
• Alignment with expectations of Parent Company • Funding support for new projects and acquisitions • Disclosures on material transactions
Key topics and concernsMethods of engagement
17
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Value CreationSTAKEHOLDERS OF OUR OPERATING COMPANIES
• Websites• Customer satisfaction surveys• Awareness campaigns
• Corporate disclosures• Social media
• Service excellence• Value for money
Local Communities
• Corporate social responsibility programs• Awareness campaigns• Corporate disclosures
• Websites• Social media
• Environmental impact assessments
• Safe operations
• Operational efficiency• Social responsibility
Key topics and concernsMethods of engagement
Customers and the Public
HIGHLIGHTS FOR 2019MPIC raises P35.3 billion from KKR’s investment in MPHHIIn December 2019, global investment firm KKR and an affiliate of GIC, Singapore’s sovereign wealth fund completed its investments in MPHHI. These were made through a series of transactions in common shares in MPHHI and in mandatorily exchangeable bonds issued by MPIC. Proceeds from the sale of shares in MPHHI will be used to support Metro Pacific Hospitals’ potential investments in additional hospitals and new healthcare businesses. The capital will also be used to grow MPIC’s existing subsidiaries, associates, and joint ventures.
HIGHLIGHTS FOR 2019MPTC forges new partnership for international cooperationIn May 2019, MPTC signed a memorandum of understanding on technical cooperation and exchange of information with Japan Expressway International Co. Ltd., Central Nippon Expressway Co. Ltd and Metropolitan Expressway Co. Ltd. The agreement covers asset management and repair of at-grade and elevated road and bridge sections, tunnel design and construction and the use of best practices to monitor the structural performance of expressway assets and facilities, including technical audits to address all kinds of conditions and requirements.
“The Philippine healthcare industry is poised for tremendous growth given the increasing demand for hospitals, clinics, and facilities that provide premium medical services. With this new investment, coupled with the expertise that KKR and GIC bring to Metro Pacific Hospitals, we will be in an even stronger position to meet patients’ needs and capture new opportunities through organic expansion, acquisitions and investments, and the adoption of new technologies.” - Augusto P. Palisoc Jr., President & CEO of Metro Pacific Hospitals
For more information about… • Identified material topics for this report: please refer to Part Three: ESG Reporting Methodology• Engagement with local communities: please refer to Part Two: Social Responsibility
18
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Robust corporate governance is essential for long-term value creation in our business.
The Board of Directors regularly reviews the Company’s performance with respect to the six Core Drivers of our Sustainability Framework. The Parent Company facilitates information sharing and harmonization of relevant policies across the MPIC group; and is also responsible for reporting on ESG performance at group-level.
For more information about…Corporate Governance, please refer to our corporate website
BOARD OF DIRECTORSMPIC’s highest governance body is the Board of Directors led by the Chairman. The Board is composed of 15 Directors–three Executive Directors and 12 Non-Executive Directors, (three of whom are Independent). It meets on average eight times a year to oversee management of the Company and ensure implementation of a robust governance framework.
In 2019, the composition of the Board included one female, and all members were over 50 years of age. In accordance with MPIC Guidelines on Search, Screening and Selection of Directors, the Board is composed of individuals with a wide spectrum of skills, experience and expertise, including leaders from each of our major operating companies. Newly appointed members receive a comprehensive orientation program, and all members participate in ongoing professional development training.
In accordance with the Revised Manual of Corporate Governance that requires each Director to participate in at least four hours of continuing education per year, the Parent Company organizes an Annual Corporate Governance Enhancement Session (“ACGES”) accredited by the Philippine Securities and Exchange Commission. In 2019, the ACGES was attended by 21 people including 13 members of the MPIC Board and eight personnel from the Parent Company senior management team. The program included presentations by external experts on 5G Techonology Strategy and Governance and Cyber Security.
Responsibility for ESGENTERPRISE RISK MANAGEMENT At MPIC, Enterprise Risk Management (“ERM”) is closely linked with our corporate objectives to protect and grow our business in an ethical manner.
Our ERM framework conforms to internationally recognized standard ISO 31000:2018 Risk Management. in accordance with which, our ERM Policy outlines the Company’s ERM objectives and these are assessed annually by the Risk Management Committee of the MPIC Board. The Parent Company conducts periodic performance reviews to evaluate the status of ERM objectives for each department and principal operating companies on a semi-annual basis.
STRATEGY MANAGEMENT AND LEADERSHIP SELECTION Responsibility for execution of ESG strategy reside with our operating companies’ respective leadership teams.
Each major operating company has formed a Sustainability Working Team that is responsible for assessing sustainability issues that are relevant to their business; formulating sustainability strategies through appropriate organizational structures; and monitoring and reporting on ESG performance.
19
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Responsibility for ESGBUSINESS ETHICSAcross the MPIC Group, every leader is expected to demonstrate full commitment in upholding our corporate values.
MPIC’s Corporate Code of Conduct stipulates that all employees and officers of the Company should uphold high standards of business ethics, including specific provisions on compliance, competition and fair dealing, confidentiality of information and proper use of property, conflicts of interest and corporate opportunities, disclosure, risk management and relationships with shareholders and investors. As stipulated in the conditions of their employment or appointment, all directors, officers, and employees of MPIC commit to complying with both the letter and spirit of the Code.
MPIC respects all applicable laws and regulations on the environment, employment (including laws prohibiting child or forced labor), health and safety, product responsibility (such as advertising and labeling), bribery, privacy, and non-discrimination.
POLICIES AND PROCEDURESOur Whistle Blowing Policy encourages Parent Company employees to notify our Company corporate governance team about any actual or potential improprieties. Our commitment to anti-corruption extends to ensuring compliance with all applicable laws and regulations on anti-corruption, anti-bribery and money laundering in accordance with our Conflict of Interest Policy, Insider Trading Policy, Policy on Gifts, Entertainments and Sponsored Travel and Related Party Transaction Policy. In 2019, there was no occurrence of non-compliance with the policies and procedures of the Parent Company.
The Company’s corruption policies and procedures have been communicated to all members of the Board and employees of the Parent Company. Our operating companies also provide ethics training to their employees.
HIGHLIGHTS FOR 2019Statement on environmental and socio-economic complianceIn 2019, there were no significant fines or non-monetary sanctions applied to the Parent Company for non-compliance with laws and regulations. Furthermore, there were no cases brought against the Parent Company through dispute resolution mechanisms.
20
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Economic Performance
Consolidated Financial Highlights
In P Millions 2019 2018 % Change
MPIC share
Power 11,571 10,823 7%
Toll Roads 5,236 4,423 18%
Water 3,569 3,794 -6%
Hospitals 867 771 12%
Light Rail 319 394 -19%
Others (671) (642) 5%
Share of operating income 20,891 19,563 7%
Head office expenses (1,164) (1,133) 3%
Interest expense (4,125) (3,370) 22%
Core income 15,602 15,060 4%
Non-core income (expense) 8,254 (930) -988%
Reported income 23,586 14,130 69%
In Centavos
Diluted earnings per share on core income 49.44 47.71 4%
Total dividend per share 11.05 11.05 0%
One of the key metrics we use to evaluate our financial performance is Core Income. This is the net income attributable to owners of the Company excluding one-off gains and losses which we believe reflects the true and fair value of our underlying earnings.
MPIC’s Core Income of P15.6 billion in 2019 reflects a decade and more of sustained capital investment to enable meaningful volume increases in all our major businesses. Our high-quality management and thousands of dedicated front-line employees work hard to deliver world-class service levels and improve operating efficiencies. During the year, Parent Company expenses, which include operating costs and wages and benefits amounted to P1.2 billion and interest expense amounted to P4.1 billion.
Core Income
up 4%P15.6BN
Fully Diluted Core Income per share
up 4%49.4CENTAVOS
MPIC Group-wide CAPEX
up 45%P72.0BN
(excluding acquisitions and investments)
System-wide Revenues
up 5%P424.5BN
(including associates, the largest of which is MERALCO)
HIGHLIGHTS FOR 2019
21
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Growth In Consolidated Core Income*
In P Billions
*Core income is measured as net income attributable to owners of the Company excluding the effects of foreign exchange and derivative gains or losses and non-recurring items (“NRI”), net of tax effect of aforementioned. NRI represent gains or losses that, through occurrence or size, are not considered usual operating items.
Earnings Contribution of the Operating Companies
POWER TOLL ROADS WATER HEALTHCARE AND OTHERS
2019 Key Drivers
Core Income growth from MERALCO
Traffic growth and tariff adjustments at
Metro Pacific Tollways
Strong patient numbers at Metro Pacific Hospitals
2018 20192014 201620122009 201720132010 201520112008
15.615.1
14.1
12.1
8.5
7.26.6
5.1
3.9
2.0
0.3
10.3
Economic Performance
55%55% 52%
25% 23% 22%
17% 19% 21%
3% 3% 5%
P19.6 billion2018
P17.8 billion2017
P20.9 billion2019
22
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
PowerMERALCO’s Core Income rose 6% to P23.8 billion driven by a 6% increase in energy sales; lower borrowing costs on lower debt; and higher investment returns. Energy sales rose across all of MERALCO’s customer classes. Residential sector growth accelerated due to warmer weather and new customer connections. Commercial sector sales grew on continued expansion of business-to-consumer services, while growth in the industrial sector was broadly based.
Toll RoadsMPTC recorded Core Income of P5.3 billion in 2019, an 18% increase from P4.5 billion a year earlier, as a result of higher traffic on domestic roads and tariff adjustments in NLEX, SCTEX and CAVITEX, offset by lower traffic on our regional roads and higher borrowing costs. Overall, MPTC’s system-wide vehicle entries, including both our domestic and regional road networks, averaged 947,708 a day in 2019 versus 913,101 in 2018.
MERALCO
Core IncomeP23.8BN
Core EBITDAP38.0BN
GBP
Core IncomeP2.7BN
Core EBITDAP9.9BN
GBP recorded an 11% growth in Core Income of P2.7 billion in 2019 from P2.5 billion in 2018. Core Income remains positive with higher margins on increased Wholesale Electricity Spot Market (“WESM”) prices and additional ancillary service agreements despite flat sales volume. Contribution from 50%-owned Alsons Thermal Energy Corporation rose to P417 million due to the earnings from ATEC’s expansion plant which started commercial operations in October 2019. ATEC’s second 118.5 MW expansion plant currently supplies electricity to an additional 4 million people in Mindanao.
MPTC
Core IncomeP5.3BN
Core EBITDAP13.3BN
Average daily vehicle entries for all three of our domestic tollways system rose 13% to over 535,503 compared with approximately 474,529 in 2018. Average daily vehicle entries for the toll investments outside the Philippines declined 6% to 412,205 in 2019 compared with 438,572 in 2018. Lower traffic volumes on DMT (Bangkok) and PT Nusantara (Indonesia) were due to construction and road integration within their concession areas.
WaterMaynilad’s Core Income for 2019 remained flat at P7.7 billion. While revenues rose 9% to P24.0 billion from P22.0 billion in 2018 as a result of the combined effect of increases in tariff (basic and inflation-linked) and the number of water connections, Maynilad’s Core Income remained flat as a result of higher amortization and depreciation expenses as a consequence of Maynilad’s heavy investments in Non-Revenue Water Reduction Program and continuing facilities upgrades.
Maynilad
Core IncomeP7.7BN
Core EBITDAP16.3BN
Economic Performance
23
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
HealthcareMPHHI reported a 12% rise in aggregate revenues in 2019 on an 11% increase in outpatient visits to 3,686,721 and 4% growth in inpatient admissions to 201,131. Core income rose 14% to P2.7 billion.
LRMC
Core IncomeP0.65BN
Core EBITDAP0.74BN
MPHHI
Core IncomeP2.7BN
Core EBITDAP6.5BN
Light RailOur Light Rail business contributed P319 million pesos to Core Income, a 19% decline from 2018. This was due to slightly lower average ridership for the period; and higher repairs and maintenance costs.
LRMC served an average daily ridership of 446,943 in 2019 peaking at 596,500 riders.
Our business model is driven by constant reinvestment to maintain high levels of service and lay the groundwork for future growth.
In 2019, capital expenditure by MPIC’s operating companies amounted to P72.0 billion, the majority of which was undertaken to enhance their operations and expand their services. This figure includes expenditure on contractors, materials, equipment and auxiliary services that stimulate the local economy.
CAPITAL INVESTMENTS IN 2019
P20.2BNMERALCOAddressing critical loading of existing facilities and supporting growing demand and customer connections
P26.2BNMPTCExpansions to existing roads and new road projects
P0.7BNGBPMaintenance and upgrading of power plants
P12.4BNMAYNILADReducing non-revenue water by fixing leaks and repairing pipes; upgrading and constructing reservoirs and pumping stations; laying primary pipelines; and developing wastewater facilities to improve public health
P8.4BNLRMCRehabilitating, upgrading and extending LRT-1 system and facilities; constructing line extension to Cavite
Economic Performance Investment Selection and Portfolio Management
P4.0BNMPHHIUpgrading equipment and facilities in its hospitals and clinics to expand capacity and improve patient care
24
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
HIGHLIGHTS FOR 2019Maynilad investments boost service provisionDuring 2019, Maynilad invested P12.4 billion to enhance and expand its water and wastewater services, while generating an estimated 34,000 short-term jobs. Among its recently completed sewage treatment plants are those in Pasay and Parañaque, bringing the total combined sewage treatment capacity of its 22 wastewater facilities to 664,000 cubic meters of wastewater per day.
For the formula on job creation, please refer to our Methodology.
HIGHLIGHTS FOR 2019LRMC capital investment 2019• New wayfinding signage introduced in several LRT-1 stations to give a fresher look
on par with the international standards• 120 compressors ordered to rectify problems with air-conditioning units on first
generation light rail vehicles • New signalling system implemented to ensure trains arrive regularly and on-time
with reduced headway of 2.5 minutes (expected to be completed by end 2020)• Electrical, mechanical and architectural works underway on rehabilitation of the
Rectifier Substation to facilitate a brand-new electricity supply for LRT-1
HIGHLIGHTS FOR 2019LRMC investment sustains service improvementsSince taking over the operations and maintenance concession for the country’s first and oldest railway, LRT-1, in September 2015, LRMC has invested P8.7 billion to rehabilitate, upgrade and improve its system and facilities. From 478 trips per day in 2016, LRMC has reached 520 trips, serving around 500,000 passengers daily.
Investment Selection and Portfolio Management
25
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
The deadline for achieving the UN Sustainable Development Goals (“SDGs”) in 2030 is rapidly approaching. Businesses such as ours have a vital role to play in speeding up progress over the decade to come.
The SDGs are a collection of 17 goals set in 2015 by the United Nations General Assembly, designed to be a blueprint to achieve a better and more sustainable future for all. In its Philippine Development Plan (“PDP”) 2017-2022, the government adopted a whole-of-government and whole-of-society approach to SDG implementation. 2030 numerical targets were identified, which set the required pace of progress for achieving the SDGs. These targets are reflected in the Results Matrices, a companion document of the PDP.
By helping to improve and expand the delivery of essential services in the power, transport, water, and healthcare sectors, MPIC’s investments make an important contribution to achieving the Philippines 2030 development targets. Several of the SDGs align closely with the pillars of our Sustainable Development Framework: Operational Efficiency, Service Excellence, Engaged and Safe Workforce and Social Responsibility.
MPIC and the Sustainable Development Goals
26
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
MPIC and the Sustainable Development Goals
POWERWater recyclinginitiatives
DDH Mangrove Planting in Davao
Jaro River project
WATERWater and sanitation servicescoveragerate;
“Pag-asa sa Patubig”partnership
HEALTHCARE LIGHT RAIL
Ginhawash
Other CSR“Lingkod Eskwela”;“Daloy Duong”
POWER MERALCO electrification programs for outlying islands through microgrid systems leveraging solar and battery energy storage
MGreen also begins construction of 50MW Solar Power Plant in Bulacan
TOLL ROADSSolar panels on major toll plazas, CCTV’s callboxes, and roadway lighting
ONE MERALCOCommunity electrification
POWER, TOLL ROADS, WATER, HEALTHCARE, LIGHT RAILResponsible waste management; progressive ban on single use plastics; For GBP, Soil - coal ash pond (with lining), recycle and reused as cement ingredient, Water - water treatment facilities, cooled water discharge, Air - Continuous Emission Monitoring System, Circulating Fluidized Bed boiler technology
POWERMERALCO launched a fleet of electric jeepneys travelling between cities of Makati and Mandaluyong. Each e-jeepney can carry up to 40 passengers and can run up to 100km. GBP undertakes IMS certifications for ISO 14001:2015 (Environmental Management Systems) for all its power plants
LIGHT RAIL Led replacement;LRMC plans to install in its tracks regenerative technology that stores power generated by the LRVs (this is a pioneer in Philippine railway)
MPIF
“Puno ng Pag-ibig”
ONE MERALCOEmergency preparedness and disaster response projects include:relief operations, powerrestoration and communityrehabilitation
Other CSRLRMC: “Adopt-an-Estero” program, NLEX and CAVITEX: coastal clean up; committed to the
MPIF
Shore It Up!
POWERGBP Malubog reforestation project; Lambunao reforestation project, mangrove reforestation projects; and periodic monitoring of flora, fauna and farmland productivity
ONE MERALCOTree planting program
BUSINESS-AS-USUAL
COMMUNITY INVESTMENT PROGRAM
OPERATIONAL EFFICIENCY
protection of the surroundings of Candaba, including its marine life
Maynilad “Green Badge” Upcycling retired uniforms for disaster relief
OTHER CSR
LRMC “Tactile Tiles”Recycling PET bottles into decoration for new stations
27
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Rural electrification program
Maynilad Kapwa and Sining Ipo
Maynilad Kapwa and Sining Ipo
School electrification program
GBP scholarship program; Maynilad Brigada Eskwela
MPIC and the Sustainable Development Goals
POWER POWERGBP shows its commitment to its adopted local communities through the conduct of health, scholarships and social development program
HEALTHCARE
POWER POWER
MPIF
Meralco-bayad center’s “Sapat Dapat” financial literacy program
HEALTHCAREAsian Hospital Charities Inc. provides free breast examination, deep brain stimulation surgery and medical assistance program for indigent household
MPIF
MPIF calamity and other social developments
ONE MERALCO Other CSR
Provide best-in-class in-patient and out- patient services and senior wellness program
ONE MERALCOThrough the Grassroots Partnerships Program, One MERALCO Foundation is able to nurture strong partnerships with local government and barangays. The program provides appropriate support for certain local community needs such as health, sanitation, environmental protection, sports and education.
Other CSR
GBP uses Circulating Fluidized Bed Technology for coal combustion to achieve lower emission of pollutants
TOLL ROADSExpansion of national road network
LIGHT RAILLRT-1 expansion project
ONE MERALCO
Grassroots partnerships
Other CSRGinhawa gardening
Other CSR
GBP social development program
Disaster recovery plans; business continuity plans
TOLL ROADS
Disaster relief operations
POWER, TOLL ROADS, WATER, HEALTHCARE, LIGHT RAILTraining and development programs; subsidized tuition and scholarships for employees and dependents; fellowship grant for qualified doctors
Mano Amiga; support for Brigada Eskwela
ONE MERALCO Other CSR
POWER, TOLL ROADS, WATER, HEALTHCARE, LIGHT RAILEmployment; occupational health and safety; compliance with the Labor Code; replace with Quality Management System
OTHER CSR
Maynilad “Kapwa”Partnering with the women of STM-Tondo to provide them with livelihood support
BUSINESS-AS-USUAL BUSINESS-AS-USUAL
COMMUNITY INVESTMENT PROGRAM COMMUNITY INVESTMENT PROGRAM
SERVICE EXCELLENCE ENGAGED EMPLOYEES
Maynilad “Sining Ipo” Providing livelihood support for indigenous craftsmen in Ipo Watershed
28
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Value Creation Responsibility for ESG Economic Performance MPIC and the Sustainable Development GoalsInvestment Selection and Portfolio Management
Part TwoSustainability ImpactsThe content of this chapter aligns with the four pillars of our Sustainability Framework.
Operational Efficiency
Service Excellence
Social Responsibility
Engaged Employees and Safe Workplaces
29
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Three: ESG Reporting Methodology AnnexPart Two: Sustainability Impacts
BOUNDARY OF ESG PERFORMANCEThe following operating companies are included in the boundary of ESG performance for this report:
• Manila Electric Company (“MERALCO”) including:• MERALCO PowerGen Corporation• Clark Electric Distribution
Corporation• Shin Clark Power Holdings Inc.• MERALCO Industrial Engineering
Services Corporation• MERALCO Energy, Inc.
POWER
• Maynilad Water Services, Inc. (“Maynilad”)WATER
Featured Toll Roads: • NLEX Corporation – the entity holding concession rights to construct, operate
and maintain the North Luzon Expressway (“NLEX”) and Subic–Clark–Tarlac Expressway (“SCTEX”)
• CAVITEX Infrastructure Corporation – the entity holding concession rights for Cavite Expressway (“CAVITEX”)
TOLL ROADS
Featured Hospitals:• Asian Hospital, Inc. – the entity
operating and managing Asian Hospital and Medical Center (“AHMC”)
• Colinas Verdes Hospital Managers Corporation – the entity operating and managing Cardinal Santos Medical Center (“CSMC”)
• Davao Doctors Hospital (Clinica Hilario), Inc. – the entity operating and managing Davao Doctors Hospital (“DDH”)
• Medical Doctors, Inc. – the entity operating and managing Makati Medical Center (“MMC”)
HEALTHCARE
• Light Rail Manila Corporation (“LRMC”) – the entity holding concession rights to operate and maintain the Light Rail Transit 1 (“LRT-1”) and construct the LRT-1 South Extension
LIGHT RAIL
For 2019, MERALCO expanded the boundary of its ESG performance to include some of its subsidiaries. This explains why there are significant increases in the key performance indicators for MERALCO for 2019. A full description of the reporting boundary can be found in Part THREE: ESG Methodology
• Corporate Information Solutions Inc.
• MSpectrum, Inc.• MRAIL, Inc.• eSakay, Inc.• Comstech Integration
Alliance, Inc.• Global Business Power
Corporation (“GBP”)
30
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Efficient management of resources is an essential element of our strategy to create value from our investments by conserving inputs to production and minimizing waste.
This chapter provides information about our impacts on the environment, including energy and water use as well as production and disposal of waste.
Operational Efficiency
For more information about …• Identified Material Topics: please refer to the ESG Reporting Methodology • Consolidated summary of KPIs: please refer to the ESG Data Summary
31
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyENTERPRISE RISK MANAGEMENT - ENVIRONMENT MPIC’s investments are vulnerable to a range of environmental risks from earthquakes and volcanic eruptions, to tropical storms, landslides and extensive flooding. In 2019, the Philippines was named by the Global Peace Index as the most susceptible country in the world to hazards from climate change. The study from this Australian-based think tank found that 47% of our population is highly exposed to climate hazards, including drought.
For more information, please view the 2019 Global Peace Index visionofhumanity.org
Management ApproachBy investing in the highest standards of infrastructure that our country can afford, such as reliable, clean and efficient coal-fired power generation, robust systems for water treatment, world-class expressways and enhanced light rail services, we expect that our portfolio of high-quality investments will continue to serve our business and our stakeholders productively for many years to come.
Some examples of environmental risks incorporated into our risk register include climate change risk, catastrophic risk, air quality and carbon emissions risk, waste and environmental pollution risk, scarcity of natural resources risk and business continuity planning risk. These risks are discussed periodically by the leadership teams of our operating companies at their respective Board and Board Committee meetings.
Throughout our business, we adopt a precautionary approach to implementing cost-effective measures to manage and mitigate environmental risks in accordance with our long-term business objectives. Subject to the cost considerations reflected in relevant concession and franchise agreements, our operating companies have business interruption and environmental risk insurance in place to mitigate the risks of destruction to life and property. We are also continuously reviewing and enhancing our business continuity processes, disaster recovery programs and crisis management capabilities.
HIGHLIGHTS FOR 2019Maynilad’s Water Safety Plan (“WSP”)This plan details programs and procedures for ensuring the safety of water supplied to customers, and corrective actions in case of water contamination. It includes hazard analyses, risk assessments, and control measures for containing or removing water contamination brought by disasters such as landslides, and security threats such as terrorist sabotage, among others. The plan is subject to intensive audit by the WSP Review Committee, which is composed of the Department of Health, Metropolitan Waterworks and Sewerage System-Regulatory Office, and National Water Resources Board, among others.
“Having a Water Safety Plan is important to ensure that risks along the water supply chain are properly addressed, especially during calamity episodes.” - Randolph T. Estrellado, Maynilad Chief Operating Officer
32
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyEnvironmental Management SystemsOur operating companies implement Environmental Management Systems (“EMS”) that exceed local requirements and are certified to international standards. Leadership teams are incentivized to continuously improve operational efficiency in order to achieve cost savings. From a compliance point of view, our operations are regularly reviewed with reference to a master list of Environment-Related Regulations to ensure that all permits are valid, and any specific conditions are fully implemented.
Part of our approach to environmental management involves upholding high standards in our supply chain. In our power business, for example, we recognize that coal mining poses particular risks to the environment. These risks must be mitigated by ensuring that suppliers implement proper management systems and comply fully with environmental regulations. GBP conducts due diligence as part of its accreditation process in accordance with its Supplier Code of Conduct, such as requiring its suppliers to submit proof of identity and demonstrate compliance with environmental regulations, among other measures. The company also does its own trade checking through customer references from the supplier.
In our toll roads and light rail businesses, suppliers have to undergo an accreditation process complying with Environmental standards (including Safety and Health standards) before being considered for bidding. LRMC undertakes additional assessments through site visits to evaluate safety and compliance.
For the Company’s Supplier Code of Conduct, please refer to our website For a full list of relevant EMS certifications, please refer to our Annex.
Maynilad “Plant for Life” Program since 2007
HIGHLIGHTS FOR 2019MPIC institutes Environmental and Social Impact Assessment PolicyIn 2019, MPIC instituted a policy that ensures that environmental and social impact assessments are done during due diligence exercises for potential acquisitions. This assessment is designed to identify risks and potential adverse consequences of proposed transactions to the environment and the surrounding communities as a whole.
HIGHLIGHTS FOR 2019Watershed Management
800,000 trees
341hectares
Watershed management is essential for helping to prevent erosion and flooding in order to protect water quality. In 2019, Maynilad planted 34,000 trees and mangroves over 34 hectares as part of its annual “Plant for Life” Program to help reforest the Ipo Watershed and other critical watersheds such as Malabon and Muntinlupa, as well as restore mangroves in Laguna Lake and the coastal areas of Manila Bay. During the year, it also adopted 30 hectares in Mt. Balagbag, Rizal, which is one of the most heavily deforested areas of the Ipo Watershed.
33
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyENERGY AND EMISSIONSOur operating companies consume energy in various forms, which contributes to Greenhouse Gas (“GHG”) emissions measured in metric kilotons of CO2 equivalent (“ktCO2e”) and other air pollutants such as nitrogen oxides (“NOx”) and sulphur oxides (“SOx”).
Management ApproachOur approach to investment and management in the power sector focuses on developing, operating and maintaining socially and environmentally compatible energy sources and infrastructure. Under the Electric Power Industry Reform Act of 2001, a distribution utility like MERALCO has the obligation to supply electricity in the least cost manner to its captive market subject to the collection of the retail rate duly approved by the Energy Regulatory Commission. Operating under this mandate, in 2019 MERALCO commissioned its 500 MW (gross)
Energy Consumption (TJ)
182,552GHG Emissions (ktCO2e)
Scope 1938
Scope 21,972
Energy Sales (TJ)
182,149
MERALCO
San Buenaventura Power Limited Co. (“SBPL”) Super-critical coal-fired Power Plant in Mauban, Quezon. Although SBPL is the first in the Philippines to use high efficiency, low emission technology and the most advanced operating coal-fired power plant in the country, it was still the primary reason why aggregate carbon emissions from MPIC’s portfolio companies increased year over year. We are mindful of this and have begun intensifying our efforts to reverse this trend through various renewable energy initiatives across the MPIC group. We are exploring opportunities to convert waste into energy. Two good examples are the Surallah and Polomok waste-to-energy biogas plants that we are in the process of developing for Dole Philippines. We are also awaiting Notice of Award to build the Quezon City Solid Waste Management Facility that could convert up to 3,000 metric tons a day of municipal waste into electricity.
Overview of Our Major Energyand Emissions Impacts
Energy Consumption (TJ)
3% increase from 201846,467GHG Emissions (ktCO2e)
Scope 14,872
Scope 28.6
Energy Sales (TJ)
13,862
GBP
GBP energy sales: Net generation (gross generated electricity less houseload consumption)
34
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyKEY PERFORMANCE INDICATORS TJ Terajoules; ktCO2e Metric kilotons of CO2 equivalent
GBP2
201920182017
13,750 13,875 13,862
GBP
201920182017
46,754 45,199 46,467
MERALCO1 Scope 2
201920182017
1,605
1,909 1,972
GBP Scope 2
201920182017
4.84
7.538.6
MERALCO1
201920182017
9,133 9,429
182,149MERALCO1
201920182017
9,460 9,761
182,552MERALCO1 Scope 1
201920182017
32.5 20.7
938
GBP Scope 1
201920182017
4,654 4,775 4,872
Energy Sales (TJ) Energy Consumption (TJ) GHG Emissions (ktCO2e)
1 For 2019, MERALCO expanded the boundary of its ESG performance to include some of its subsidiaries. This explains why there are significant increases in the key performance indicators for MERALCO for 2019. 2 GBP energy sales: Net generation (gross generated electricity less houseload consumption)
35
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational Efficiency
HIGHLIGHTS FOR 2019MERALCO MGen forges a new path for renewable energyMERALCO believes renewable energy will play a significant role in the Philippine energy mix going forward. Through its recently incorporated subsidiary MGreen, its goal is to develop 1,000 MW of renewable energy projects over the next five to seven years. The focus is on development of a portfolio of utility scale solar, wind and hydro power projects to supply Luzon grid and electricity consumers while maintaining competitive tariffs.
In September, MGen secured equity funding of P424 million for various solar projects with combined capacity of 210 MW and total cost of P10 billion.
OTHER OPERATING COMPANIES
2017 2018 2019NLEX/SCTEX
201920182017
4.40
3.90
3.40
7.01
3.30
3.49
CAVITEX
201920182017
0.71
0.460.42
1.361.22
1.00
MAYNILAD
201920182017
4.704.133.95
92.2693.5789.54
AHI
201920182017
0.020.090.07
11.4112.84
11.31
GHG Emissions (ktCO2e) Scope 1 Scope 2Energy Consumption (TJ)
NLEX/ SCTEX
CSMCCAVITEX MMCMaynilad DDHAHI LRMC
95.6881.3167.67
201920182017
16.5712.5411.77
530.59529.19492.82
58.6666.0868.47
37.47 34.56 36.39
86.11 86.07 86.47
29.30 29.19
182.68 183.04 191.33
36
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational Efficiency
CSMC
201920182017
7.366.74
6.08
0.020.040.02
MMC
201920182017
0.030.070.04
16.9216.8214.37
DDH
201920182017
0.050.005
5.875.76LRMC
201920182017
0.250.201.56
35.4735.67
29.49
GHG Emissions (ktCO2e) Scope 1 Scope 2
Energy consumption of NLEX and CAVITEX increased significantly by 18% and 32%, respectively, due to the expansion projects for both toll roads. NLEX completed the 5.8 km Harbour Link Segment 10 in February 2019 and is currently constructing the 2.6 km Harbour Link Radial Road 10 and the Phase 2 of its Land Widening program, both of which are expected to be completed by 2020. CAVITEX, on the other hand, completed the first 2.2 km subsection of CAVITEX C5 Link Expressway (Segment 3A-1) on July 2019. The remaining 5.5 km of the CAVITEX C5 Link Expressway and an additional 1.2 km CAVITEX Segment 4 will be completed by 2022.
For additional details on our toll road development pipeline, please refer to our quarterly briefing presentations
OTHER OPERATING COMPANIESHIGHLIGHTS FOR 2019MPTC Invests in renewable energy solutionsTo reduce its consumption of grid purchased electricity, MPTC has adopted solar-powered technology for closed-circuit television (“CCTV”) cameras, emergency call boxes and roadway lighting. In 2019, NLEX went a step further by starting to install solar panels at several of its toll plazas, including Meycauayan Southbound (the location of its solar power pilot project) as well as Balintawak Barrier, Bocaue Barrier, Mexico, Angeles, San Fernando Southbound, and Karuhatan Interchange. In total, the new solar installations are expected to produce over 430 kilowatt hours of renewable energy per year.
37
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyMERALCOIn accordance with its franchise obligation and corporate mission to provide the best value in energy products and services, MERALCO manages the supply of electricity for distribution to its customers from a range of power sources including independent power producers, retail electricity suppliers and the WESM.
Through major investments in substation and distribution infrastructure as well as targeted implementation of system loss management and anti-electricity pilferage programs, MERALCO has achieved a steady reduction in system loss over many years. We estimate that the difference between actual system loss and the regulatory cap of 7.25% has saved MERALCO’s customers in excess of P5.2 billion since 2008. This is the equivalent of 0.11 centavos per kWh and 4,924 ktCO
2e of
avoided GHG emissions.
40%Natural gas
plants
32%Coal-fired plants
1%Liquid fuels
(including bio-fuels)
<1%Solar
27%Multi-fuel
(coal, hydro, biomass, geothermal)
2019 MERALCO’s Energy Mix (sources of consolidated distributed electricity)
2019 MERALCO System Loss
Improvement by 2.3% compared to 2018
5.54%
customer savingsP5.2BN
Reduced system loss leads to lower electricity bills for consumers and lessened carbon footprint
To ensure compliance with relevant standards and regulations, MERALCO monitors the concentration of Persistent Organic Compounds in the air emissions from its electricity transmission and distribution facilities.
GBPGBP has a long-term goal to be the nation’s foremost provider of sustainable energy solutions utilizing diversified sources and innovative technologies. It is looking into renewable energy sources such as pumped storage hydro and solar, among others, to complement its existing capacity.
GBP presently owns and operates 11 power generation facilities with a total combined gross capacity of 854 MW. Its large generation facilities, namely CEDC, PEDC 1, 2, 3 and TPC1A utilize technologically advanced circulating fluidized bed boiler technology to optimize fuel efficiency and minimize environmental impact. Furthermore, it has systems in place to optimize use of resources and ensure regulatory compliance by making use of an automated performance scorecard to monitor actual resource consumption against its target operational parameters. In managing emissions, GBP conducts periodic ambient tests, smoke stack sampling and uses real-time Continuous Emissions Monitoring System that is validated by a third-party provider via Relative Accuracy Test Audit, in accordance with international standards. GBP also undertakes carbon sink programs such as the Lambunao and Malubog reforestation projects to lessen its environmental impact and as part of its legacy to its neighboring communities.
HIGHLIGHTS FOR 2019GBP awarded for excellence in sustainabilityGBP won the Corporate Excellence Award at the 2019 Asia Pacific Entrepreneurship Awards (“APEA”). The Award is given to companies with exemplary audit results in people management, value creation, business growth, continuous improvement, corporate social responsibility, and operation excellence. Organized by Enterprise Asia, the APEA seeks to give recognition to outstanding business leaders and companies which democratize entrepreneurship, institutionalize sustainability, and empower innovation.
38
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyWATER AND EFFLUENTS
Management ApproachWe recognize MPIC Group’s operations and facilities impact the availability of water in communities experiencing high water stress. We are focused on utilizing the country’s water resources in a sustainable way to meet the needs of our customers today without undermining the ability of future generations to meet their needs too.
ML megaliters
Water Withdrawn (ML)
down by 1%908,208Non-Revenue Water (“NRW”) at DMA Level
25%
Water Supplied to District Metered Area (“DMA”) Level (ML)
down by 3%727,284
Maynilad Other Operating Companies: Water Withdrawn (ML)
HIGHLIGHTS FOR 2019Maynilad Service InterruptionsChanging rainfall pattern at the Angat and Ipo watersheds has caused raw water levels to decline below normal levels. As a result, in 2019, Maynilad was forced to implement necessary measures to mitigate the impact of reduced raw water allocation,
including daily rotational water service interruptions for its customers, reactivation of deep wells, installation of modular treatment plants, and development of mobile water tankers and stationary water tanks.
We thank affected customers for their patience and understanding during this challenging time. Rotational water service interruptions are expected to continue as part Maynilad’s ongoing supply management efforts.
MERALCO 132,260
GBP1,367
Featured Hospitals
961
Featured Toll Roads
139
LRMC65
134,970
Overview of Our Major Water and Effluents
39
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyKEY PERFORMANCE INDICATORSML megaliters
201920182017
Water Withdrawn (ML)
727,284750,841755,379
908,208920,848922,133
MAYNILAD: Water Withdrawn and Supplied to DMA Level (ML)
Water Supplied (ML)
132,260
OTHER OPERATING COMPANIESWater withdrawn (ML)
MAYNILADMaynilad operates a system of raw water withdrawal and treatment, potable water distribution, and wastewater and sanitation services in the National Capital Region’s West Zone. It works closely with its regulators, customers and local communities to promote responsible water management, including conservation of the nation’s important water resources and protection of public health.
2019 Source of Raw Water
Maynilad has a comprehensive NRW Reduction Program in place to reduce the volume of “lost” water due to faulty or leaking pipes in its distribution network, theft, illegal connections and non-payment of water bills. Since 2008, it has recovered 979 MLD through pipe replacement, active leakage control, network diagnostics, meter replacements, and District Meter Area management. This amount is enough to fill up 390 Olympic-size pools per day or supply about 1.7 million households.
10%Laguna de Bay90%
Angat Dam <1%Deep Well
201920182017
201920182017
201920182017
201920182017
201920182017
439473
1,344
1,3671,375
139129
74
961826
766
657980
MERALCO1
GBP
Featured Toll Roads
Featured Hospitals
LRMC
1 For 2019, MERALCO expanded the boundary of its ESG performance to include some of its subsidiaries. This explains why there are significant increases in the key performance indicators for MERALCO for 2019.
40
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational Efficiency Maynilad’s sewerage services include conveyance, treatment, and discharge of wastewater from connected customers. It also provides sanitation services, or desludging of septic tanks, to customers in its concession area who are not yet connected in the sewerage system. The septage is dewatered, processed into biosolids, treated and safely disposed of by contractors at specialized composting facilities
“Our P25 billion capital investment in NRW over the past 12 years enabled us to recover a water volume that is equivalent to constructing a new dam.” - Randolph T. Estrellado, Maynilad Chief Operating Officer
of pipes checked for leaks
leaks repaired
recovered water from repairs of leaks
NRW measured at the DMA level
Total NRW, including water loss from all
primary pipes
6,024 km
28,683
85 MLD
25.3%
38.2%
2019 NRW Program
People offered with sewerage services
Population reached by sanitation services
Coverage of sanitation services in the Concession Area
Coverage of sewerage services in the concession area
Target coverage by 2037(subject to regulatory approval of capital expenditure and tariffs)
2.1 million
3.9 million 40.7%
21.2%
100%
Sewerage Services
Sanitation Services
Maynilad’s wastewater treatment system guarantees that the pollution content of all water discharged at 13 locations within its service area complies with regulatory standards.
Maynilad: Wastewater TreatmentUnit 2019 2018 2017
Total wastewater treated and discharged1 ML 74,500 63,998 59,490Volume of septage desludged ML 233 137 200
Pollution Load AbatementBiological oxygen demand metric tons 2,845 2,540 2,093Chemical oxygen demand metric tons 5,250 3,633 3,210Total suspended solids metric tons 3,467 1,850 1,241Oil and grease metric tons 365 221 52
1100% of Maynilad’s water discharge is categorized as ‘Other’ water i.e. >1,000 mg/L total dissolved solids.
Wastewater discharge by location (ML)2019 2018 2017
Manila Bay 42,669 41,647 41,111 Delain Creek 9,834 - -Dario Creek 5,159 5,628 6,125 Malabon Creek 4,653 - -Pasong Diablo River 2,920 2,744 2,670 Talayan Creek 3,508 4,511 2,636 San Juan River 2,166 2,456 2,306 San Franciso River 1,419 1,697 1,760 Mairbolo Creek 1,184 1,311 1,340 Culiat Creek 653 777 729 Maypajo Creek 266 707 705 Estero De Santibanez 69 87 108 Maricaban Creek - 2,433 - TOTAL 74,500 63,998 59,490
41
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational Efficiency
For more information about… Maynilad sustainability reports, please refer to the Maynilad corporate website
HIGHLIGHTS FOR 2019Program of Investments in Wastewater ManagementIn 2019, P31.2 billion—around 60% of Maynilad’s capital expenditure commitment—was allocated for wastewater management projects to comply with the new and more stringent effluent standards and maintain network reliability. These projects include construction of a new sewage treatment plant (“STP”) in Central Manila, installation of 30 km of sewer lines in Las Piñas City, upgrade of existing STPs to include nutrient-removal processes, lot acquisitions for new STPs and pump stations, installation of new sewer service connections, and maintenance of the existing sewer network.
In September 2019, Maynilad received a copy of a Supreme Court decision that the water concessionaires and MWSS are jointly and severally liable for violating Section 8 of the Clean Water Act. In October 2019, Maynilad filed a Motion for Reconsideration of the decision to the Supreme Court. Before Maynilad was re-privatized in 2007, there were only two operating STPs, sewerage coverage in the West Zone was only 7% of the then 6.1 million water-served population. Maynilad has since built several new STPs, and, as of December 2019, has expanded its sewerage coverage to 21.2% of the now 9.7 million water-served population.
Under MPIC’s ownership, approximately 3.2 million people have been connected to clean safe drinking water, bringing the total served to 9.7 million people and 3,137 kilometers of new pipes have been laid. NRW at the DMA level has been reduced to 25.3% as at end of December 2019 from 68% 13 years ago, saving almost 1 billion liters of water every day, or enough water to provide the needs of a large city.
GBPGBP’s operations consume significant quantities of water for cooling and other processes. Its coal-fired power plants withdraw seawater, and its diesel-fired plants withdraw freshwater from local groundwater sources. The amount and quality of water both withdrawn and discharged are subject to strict regulation.
Discharge Location Type 2019Luray Creek Seawater 265.8Iloilo Strait Seawater 262.4Sigpit River Freshwater 4.7Mabilo River Freshwater 0.8Unidos River Freshwater 0.6Brgy. Papandayan Canal Freshwater 0.1TOTAL 534.3
Wastewater discharge by location for Process Water (ML)
42
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyWASTE
Management ApproachGuided by Environmental Management Systems conforming to local requirements and international standards, we implement waste management and waste reduction initiatives from the design phase of new infrastructure developments to operations and service delivery. Our operating companies disclose information about the production and disposal of waste to the
Operating Companies: Waste By Type and Disposal Method (Tonnes)Department of Environment and Natural Resources (“DENR”) in compliance with relevant approvals and regulations.
Across the wide range of business activities we are involved in, the amount and type of waste produced varies greatly, as does its potential for reuse and recycling. Where applicable, our operating companies have appointed DENR-accredited service companies to collect and dispose of all hazardous waste materials.
Hazardous Waste
Overview of Our Major Waste
MERALCO1,187.20
GBP227.96
NLEX/SCTEX1.18
CAVITEX0.19
Maynilad56.80
CSMS144.67
DDH59.89
AHI253.70
MMC339.38
LRMC61.27
43
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Hazardous Waste (Tonnes)
Operational Efficiency
MERALCO1
201920182017
GBP CAVITEXNLEX/SCTEX
AHI CSMC DDH LRMCMMC
Maynilad
201920182017 201920182017201920182017
201920182017 201920182017 20192018 201920182017201920182017
201920182017
0.19
1.18 56.84
0.7241.49
0.88
0.07
28.17
1,187.20
654.65
1.58
227.96
407.10378.98
Insignificant
222.40253.70
209.00144.67145.58
157.41293.37
239.74
339.38 59.89
22.03
61.27
105.72
288.00
KEY PERFORMANCE INDICATORS
2017
1 For 2019, MERALCO expanded the boundary of its ESG performance to include some of its subsidiaries. This explains why there are significant increases in the key performance indicators for MERALCO for 2019.
44
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational Efficiency
MERALCO
20192018
AHI
20192018
CSMC
20192018
DDH
20192018
MMC
20192018
LRMC
20192018
GBP
20192018
NLEX/SCTEX
20192018
CAVITEX
20192018
Maynilad
20192018
Residual Reuse Stored Onsite Other
327.78
249.05
8.86
0.01
859.42
4.65 144.67 59.89 339.38
52.41
227.96
407.101.16 0.19 56.84
636.33
4.14
145.58
22.03
293.37
105.65
0.07
0.7241.49
18.32
218.26
Hazardous Waste By Disposal Method (Tonnes) KEY PERFORMANCE INDICATORS
45
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational Efficiency
MERALCO
20192018
AHI
20192018
CSMC
20192018
DDH
20192018
MMC
20192018
LRMC
20192018
GBP
20192018
NLEX/SCTEX
20192018
CAVITEX
20192018
Maynilad
20192018
89.43
162.49
292.47 717.61
40,734
5.00
59.027.73
329.00
23.22
79.71
115.32
137,306 1.00
17.6
332.1 4,324.0 76.481.1
4,152.5 477.20
71.5
80.5
711.48156.1
121,201
712.155.0
Residual Reuse Stored Onsite OtherNon-Hazardous Waste By Disposal Method (Tonnes) KEY PERFORMANCE INDICATORS
46
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyMERALCOIn 2019, MERALCO recycled 813 metric tons of used oil and 0.85 metric tons of used lead acid batteries, both of which are categorized as hazardous waste. The used batteries were donated to the ‘Balik Baterya Program’ organized by Ramcar, Inc. in partnership with Philippine Business for Social Progress and Philippine Recyclers Incorporated. This initiative produces new automotive and industrial batteries, with all proceeds from the sale of the new batteries going to various environmental, educational and health projects.
GBPBulk of GBP’s non-hazardous waste is in the form of fly ash as a by-product of power generation in its coal-fired power plants. It tracks all generated wastes and ensures proper handling from temporary internal storage up to disposal.
In 2019, an increase of 881% to 40,733.7 metric tons of ash were sold to third-parties as an input for cement production and an increase of 13% to over 137,230.4 metric tons of ash were disposed of
in purpose-built ponds. In Iloilo, where GBP owns and manages the ash pond that is located within its site boundary, a Toxicity Characteristic Leaching Procedure has been implemented and regular groundwater quality monitoring takes place to ensure compliance with the plant’s Environmental Compliance Certificate. In Toledo, the ash is stored only temporarily in the ash pond before being permanently disposed of by an accredited third-party.
GBP also produces hazardous waste such as waste oil, used batteries, electronic waste, medical waste, acid waste, alkali waste and resinous materials. These are handled exclusively by DENR-accredited service providers. In 2019, GBP disposed of 228 metric tons of waste and used oil.
TOLL ROADSNLEX’s non-hazardous wastes are generally office wastes, including food wastes, paper, and plastic. NLEX made conscious effort to reduce office wastes through programs such as reduction of food wastes and single-use plastics.
47
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Operational EfficiencyWATERMaynilad practices waste segregation at source and achieves an impressive rate of non-hazardous waste reuse and recycling by collecting recyclable materials from its facilities at least once a month for sale to third-parties or donation to charity. Established systems and protocols are in place governing the handling and disposal of hazardous waste. Only trained personnel are allowed to handle hazardous waste and DENR-accredited third parties have been appointed to carry out proper transport, treatment, and disposal.
FEATURED HOSPITALSEach of our featured hospitals monitors the collection and disposal of waste for compliance purposes. Onsite thermal treatment is typically used for sharps and certain other types of infectious waste. This process uses high temperatures and steam to deeply penetrate all materials and kill any microorganisms. Offsite incineration of pathological and pharmaceutical waste is required in accordance with regulations. This kind of waste disposal is performed by accredited third party service providers in controlled facilities to ensure complete combustion and to minimize negative effects on the environment.
HIGHLIGHTS FOR 2019#AYOKONGPLASTIK MOVEMENT @DDHIn 2019, DDH joined forces with World Wide Fund for Nature (“WWF”) Philippines – Davao Chapter to introduce a progressive ban on single use plastics inside its premises. Starting in November, plastic straws, cups and cutlery were removed from the hospital’s cafeterias and food concessionaires. Each month additional items have been added to the list of prohibited plastics, including styrofoam containers in December and PET water bottles in January.
The ban applies to employees, doctors and outsourced personnel; all of whom are encouraged to bring their own food and water containers and reusable utensils from home.
At first, there was resistance and negative reactions from the patients, clients, doctors and even from the employees which is to be expected. However, with consistency and with the help of the Security Team as the gatekeeper, patients, clients, doctors and employees are now used to it and they fully understand the objective of DDH in undertaking this advocacy.
Stakeholders support this advocacy, they fully understand and appreciate the effort for the sustainability of waste management system to improve patients and employee’s safety and reduce environmental and human health impacts.
HIGHLIGHTS FOR 2019LRMC’s Annual Clean Up of the Estero de Tripa de Gallina (“ETG”)LRMC’s Annual Estero Clean-up was conducted in 2019 with 650 volunteers representing LRMC, Pasay, Manila, and Makati Local Government Units as well as various Government agencies, including the Department of Transportation and DENR. Three truckloads of waste were removed. This important annual CSR activity supports DENR’s “Adopt-an-Estero” Program along a 3 km stretch of ETG (expanded from 0.5 km initially), in close vicinity to LRT-1
48
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
At MPIC, we expect our operating companies to set the highest standard for service provision across a full range of essential services.
This chapter provides information about the elements of our Sustainability Framework relating to Increasing Access to Services, Customer Experience, Commensurate Services and Service Continuity.
Service Excellence
For more information about…• Identified Material Topics: please refer to the ESG Reporting Methodology• Consolidated summary of KPIs: please refer to the ESG Data Summary
49
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Service ExcellenceQUALITY MANAGEMENT
Management ApproachAt MPIC, service excellence is achieved by integrated quality management systems and sustained investment to improve our services while strengthening our ability to meet and exceed expected service standards.
Our operating companies ascribe to Quality Management System (“QMS”) certifications that standardize their technical processes and provide assurance for our customers and other stakeholders. For the full list of relevant certifications please refer to our Annex.
Maynilad
1,453,979
MERALCO
6,882,784
Customer Count
SCTEX
70,551CAVITEX
181,656
NLEX
283,296
Average daily vehicle entries
In-patient
201,131
Patient Count*
Out-patient
3,686,721
LRMC
446,943Average daily ridership
*Aggregate number; including hospitals not within the boundary of this report
Overview of Our Quality Management
50
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
201920182017
MERALCO Maynilad
201920182017 201920182017
KEY PERFORMANCE INDICATORS
6,882,784 1,453,979
Customer Count
NLEX SCTEX CAVITEX
201920182017 201920182017 201920182017
70,551 181,656
Featured Toll Roads: Average Daily Vehicle Entries
HOSPITALS: In-Patient Count*
201920182017
Out-Patient Count*
201920182017
LRMC: Average Daily Ridership
6,614,8146,326,691
1,407,5031,358,758
283,296265,530237,046 62,684
54,566 146,315139,208
201,131193,824173,939
3,686,7213,323,104
3,085,638446,943458,021435,199
Service Excellence
*Patient counts are aggregate of all hospitals under MPHHI
51
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Service ExcellenceCOMMENSURATE SERVICES
Management ApproachFor the model of public-private infrastructure provision to be sustainable, all parties should ideally adhere to the contracted terms of relevant concession and franchise agreements. We are however mindful of the regulatory risks that are inherent in our businesses and coordinate closely with regulatory agencies to address issues in an amicable manner.
Reliability
HIGHLIGHTS FOR 2019LRMC receives Innovation AwardIn May 2019, LRMC received the First Gold Stevie Award for its Automated Train Operations Management System (“ATOMS”) at the sixth annual Asia-Pacific Stevie® Awards in February 2019 - the only awards program to recognize innovation in business throughout the entire Asia-Pacific region. ATOMS is a strategic traffic management tool developed internally by LRMC employees to help ensure that a train arrives at every station every three minutes.
System Average Interruption Frequency Index (Times)
1.77
Number of train failure incidents (in minutes)
Frequency of train failure incidents
16.6 8.6
MERALCO
Average train cycle time (in minutes)
2019
Average train waiting time during peak hours (in minutes)
Average train waiting time during non-peak hours (in minutes)
100.3
85.8%
85.1%
201918.5%
18.5%
3.3 4.3LRMC
Customer Average Interruption Duration Index (In minutes)
Total average interruption duration (In minutes)
106.48 188.36
GBP
Overview of Our Consumerate Services
Equivalent Availability Factor(Average)
Equivalent Forced Outage Rate(Average)
52
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Service Excellence
System Average Interruption Frequency Index (Times)
Customer Average Interruption Duration Index (In minutes)
201920182017 201920182017
KEY PERFORMANCE INDICATORS RELIABILITY
1.77106.48
1.801.88 109.1897.79
MERALCO
LRMC
201920182017
Average train cycle time (in minutes)
100.399.7102.5
201920182017
3.33.53.4
201920182017
4.33.9
4.3
201920182017 201920182017
Average train waiting time during peak hours (in minutes)
Average train waiting time during non-peak hours (in minutes)
16.616.614.0
Number of train failure incidents (in minutes)
8.6
11.3
Frequency of train failure incidents
Equivalent Availability Factor (in %)
PEDC 1&2 PEDC 3 PPC 1&2 PPC 3 PPC 4 GPRI CEDC TPC 1 TPC1ATPC
Carmen2019 91.8 91.3 90.1 69.2 98.5 95.7 92.4 52.2 91.8 81.12018 90.0 88.8 95.4 47.0* 94.1 77.5 95.2 79.2 93.1 90
Equivalent Forced Outage Rate (in %)
PEDC 1&2 PEDC 3 PPC 1&2 PPC 3 PPC 4 GPRI CEDC TPC 1 TPC1ATPC
Carmen2019 1.4 1.1 3.2 79.6 7.8 1.8 1.1 43.2 3.1 42.5*2018 2.2 1.0 0.5 98.3 36.1 23.4 1.1 15.6 1.3 5.8
GBP
5.7
*Underwent extended preventive maintenance schedule
53
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Service ExcellenceCUSTOMER EXPERIENCEWe constantly monitor and respond to our customers’ feedback in order to achieve continuous improvement in service delivery.
TOLL ROADSNLEX received more complaints in 2019 due to several systems issue with the electronic toll collection system. Technical improvements were put in place during 2019 that NLEX hopes will reduce the incidence of system issues in 2020.
WATERMaynilad experienced less service-related complaints in 2019 due to its proactive announcements of rotational water shortage. In 2018, Maynilad had water availability issues due to emergency maintenance of the Putatan Water Treatment Plant and high turbidity of raw water coming from the Ipo Dam. These 2018 events were unplanned leading to unannounced water interruptions.
Customer Satisfaction
Residential8.47
Local Government Units8.11
Number of complaints
16,535Number of complaints
787
Corporate8.28
Resolution rate99%
General Services8.40
National Government Offices8.30
Businesses8.43
MERALCO (Out of 10.00)
NLEX / SCTEX CAVITEX
Service-related complaints
45,891Billing-related complaints
44,459Application requests
38,161MAYNILAD
FEATURED HOSPITALSAt MMC, its Patient Relations Department continues to process all patient feedback, whether medical or non-medical. Feedback is shared with the concerned units for their appropriate action, both corrective and preventive. Patients are assured that their feedback is acknowledged and given due attention. Moreover, the Patient Experience Program was launched last year to augment the hospital’s efforts in proactively improving our patient’s satisfaction to a level that would exceed their expectations thereby ensuring a positive patient experience. The first three areas prioritized were Emergency Department, Radiology Services and In-patient Dietary Services. Focus group discussions with the department leaders are conducted with the aim of decreasing negative patient feedback and improving patient experience. Patient visits are routinely done to offer assistance and get feedback on patient experience. This proactive approach has resulted in more patients expressing delight and reporting high-levels of service satisfaction.
Overview of Our Customer Experience
54
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Service Excellence
MERALCO (Out of 10.00) NLEX / SCTEX CAVITEXResidential General
ServicesLocal Government Units
National Government Offices
OverallBusinesses Corporate
201920182017 201920182017 201920182017201920182017 201920182017 201920182017 201920182017
8.478.40 8.118.23 8.43 8.388.42
8.098.47 8.438.238.15 8.288.248.49 8.308.418.56 8.378.258.39
Number of complaints
Number of complaints
16,535
787
14,136
1,3948,824
2,416
201920182017 201920182017
Resolution rate
99%100%100%
201920182017
Resolution rate
100%100%100%
201920182017
Overall percentage “Delighted” patientsAHI DDH
*DDH was only added to the scope of this report beginning 2018.
91%81%89%
73%
93%
201920182017 201920182017
CSMC
93%94%93%
201920182017
MMC
96%91%97%
201920182017
MayniladService-related complaints
Billing-related complaints
Application requests
Installation requests
201920182017 201920182017201920182017 201920182017
45,891 44,45938,161
60,894
42,919
41,23154,185
56,652 42,081
25,06428,785
30,121
Number Survey Scores (Out of 5)
3.423.583.43 3.51 3.97 3.953.593.99 3.98
3.433.83 3.87
KEY PERFORMANCE INDICATORS CUSTOMER SATISFACTION
55
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
HIGHLIGHTS FOR 2019CAVITEX introduces EasyDriveMPTC has introduced the latest Radio Frequency Identification (“RFID”) technology to ease travel through major toll roads in Northern and Southern Luzon. EasyDrive (powered by EasyTrip) is the country’s first RFID sticker tag used for toll payment instead of cash. Attached to a vehicle’s windshield or headlamp, it can be used at EasyDrive dedicated or mix toll lanes on CAVITEX, NLEX and SCTEX. To leverage the value of this new technology for the community at large, MPTC has signed a memorandum of agreement with the Metro Manila Development Authority (“MMDA”) to provide RFID sicker tags for 100 emergency vehicles. The partnership is expected to speed up emergency response vehicles’ entry and exit to our toll roads.
HIGHLIGHTS FOR 2019MakatiMed bags 3 awards in Infection Prevention and ControlThe Infection Prevention and Control Program of Makati Medical Center earned recognition from the Philippine Hospital Association (“PHA”) as it recently won three awards in the Hospital Best Practices in Infection Prevention and Control Awards Year VI at the organization’s 70th Annual National Convention held last November 21, 2019 at Manila Hotel.
The competition, which aims to encourage hospitals to maintain the highest standards in the prevention and control of healthcare-related infections, recognized MakatiMed as the Overall Winner out of 19 participating hospitals for Level 3 for its extraordinary application of science-based methods for decision making in everyday Infection Control Problems in a third-level hospital setting. Most notably, the timely detection and management of a Burkholderia cenocepacia bacteremia outbreak in 2018, led to the DOH-FDA to prohibit the sale of a specific batch of contaminated Nicardipine vials.
MakatiMed also received the Best in Healthcare Waste Management Award for Level 3 hospitals based on its laudable efforts on innovation and technology for advanced methods and procedures in healthcare waste management. Exclusive environmental rounds were done regularly by the IPC in clinical areas extending to concessionaires to measure compliance with existing policies and programs. A database for hazardous materials was maintained to monitor adequate and appropriate storage and disposal. MMC was able to set a new benchmark for a third-level health facility through outstanding performance in governance, surveillance and evaluation.
56
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Service Excellence
HIGHLIGHTS FOR 2019AHI recognized as a leading hospitalIn 2019, Healthcare Asia Magazine awarded AHI the “Hospital of the Year – Philippines” and also recognized its performance in several categories including, ICT Initiative of the Year, Service Delivery Innovation Initiative of the Year, and Patient Care Initiative of the Year. Under a separate scheme, AHI became one of only five hospitals from the Philippines to receive a Hospital Management Asia (“HMA”) Award for Innovation in Hospital Management Excellence. This was AHI’s third time to receive a prestigious HMA award in just two years, demonstrating its firm commitment to excellence in patient care.
MMCGold Status for stroke practice from the World Stroke Organization ANGELS Award
DDHIndustrial Peace Award: 2019 Outstanding Labor Management Committee
Excellence Award: 2019 Hospital Management Awards
CSMCIn 2019, CSMC has gained three international recognitions from Asian Hospital Management Awards and Accreditation Canada International. The hospital has acquired the GOLD AWARD from ACCREDITATION CANADA INTERNATIONAL in December 2019, which raised the standards of patient safety in the institution.
CSMC was given an Excellence Award for PROJECT ERRAND (ELECTRONIC REAL-TIME ROUNDS ACTIVITY FOR NURSING DIVISION), a technology innovated by its Nursing Services to collect real-time feedback from in-patient customers and generate reports through its Dashboard to guide the hospital administrators and managers for decision making.
Gold Award was also given by AHMA to CSMC recognizing the training and development contributions of its PHILIPPINE CENTER FOR ADVANCED SURGERY MINIMALLY INVASIVE SURGERY TRAINING CENTER, educating nurses and doctors across the country with high standards of minimally invasive surgery.
CUSTOMER SAFETY
Management ApproachDisruption to the quality and continuity of services delivered by our operating companies can have significant impacts on the safety and well-being of customers and the public at large. We recognize our responsibility to uphold regulations and voluntary codes concerning health and safety impacts of our services. In addition to implementing integrated management systems that promote and protect customer safety, we invest in appropriate technologies and foster a strong safety culture among our employees and contractors.
In 2019, the Company was not aware of any non-compliance with regulations and/or voluntary codes concerning the health and safety of services provided by our operating companies.
POWERMERALCO maintains its record of strict compliance with relevant industry standards by striving to mitigate all safety risks from its operations for customers and the public. These risks may arise from power supply interruptions affecting critical community facilities, accidents involving power distribution infrastructure located near neighboring communities, and unsafe use of electricity. MERALCO’s corporate website features safety tips for home safety–including what to do in the event of a typhoon, earthquake or fire – and construction safety.
57
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Service ExcellenceTOLL ROADSSafety and security protocols in our toll road operations revolve around the Traffic Control Room of each road system where traffic management and safety personnel are on duty 24 hours a day, seven days a week to respond to disturbances or emergency situations within an expected response time of 20 minutes. All toll roads are equipped with CCTV monitoring systems and patrol crews who are empowered to direct road users and clear debris in order to ensure the smooth flow of traffic. The patrol crews are deputized by the LTO to implement and enforce traffic laws and regulations. In the event of an accident, emergency medical protocols are in place to coordinate first-aid and paramedic care from our Emergency Medical Service teams and a network of medical aid specialists with extraction and air transport capability.
During busy seasons, such as Holy Week, All Saints Day, All Souls Day, and Christmas, MPTC implements a special program known as “Safe Trip Mo Sagot Ko” (“SMSK”) to enhance traffic management and toll collection services. Additional patrol and incident response teams are on standby in strategic areas to assist motorists. MPTC and its partners also set up SMSK Motorist Camps at designated locations along the expressways providing free calls, Wi-Fi, drinking water, basic mechanic services and first aid treatment.
WATERFor Maynilad, changing rainfall patterns and political failure to allow for new water sources to be developed have led to rotational water service
NLEX AND SCTEX CAVITEX
2019 2018 2017 2019 2018 2017
Customers fined for over-speeding 11,608 20,113 10,786 218 286 929
Emergencies resolved 65,187 55,550 41,627 55 330 472
Patrol assistance average response time (in minutes)
12.2 12.4 12.5 4.0 9.7 11.2
Medical service average response time (in minutes)
15.3 15.7 15.1 9.3 8.75 9.1
Traffic incident accident response time (in minutes)
12.8 12.7 13.0 9.8 18.5 9.3
*Incidence of over-speeding declined significantly due to the installation of automated speed trackers along the stretch of our toll roads. Having the motorists see the visible trackers discourages them to drive beyond the acceptable speed limit.
interruption. Maynilad is intensifying efforts to mitigate the effects of the reduced water allocation from Angat. These efforts include optimization of its two treatment facilities in Muntinlupa that now produce 300 MLD per day of water drawn from Laguna Lake, reactivation of several deep wells, continued reduction of water losses through sustained pipe replacement and repair activities, cloud-seeding operations, and deployment of modular water treatment plants that will draw water from small rivers in Cavite. All these are expected to enable Maynilad to get additional water supply for distribution and help to ease the current deficit.
HIGHLIGHTS FOR 2019Toll Roads emerge unscathed from the Luzon earthquakeIn April 2019, a 6.1 magnitude earthquake hit several northern Luzon provinces. Even though post-earthquake assessments conducted by structural experts showed that NLEX and SCTEX did not incur major damage, some superficial cracks appeared in several portions in SCTEX Porac and Floridablanca requiring minor repairs.
58
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Service ExcellenceOverall improvement in Customer Safety metrics in CAVITEX was driven by strict implementation of Anti-Over Speeding and Anti-Overloading programs. This helped improve monitoring of the toll road, thereby reducing incidents and avoidable emergencies. Patrol readiness improved due to better allocation of resources resulting in fewer accidents.
WATERAs a water distribution company, Maynilad has implemented its Water Safety plan with the main objective of protecting the drinking public from pathogenic bacteria such as E-coli, thermotolerant and chronic chemical contamination. Maynilad mitigates this risk by performing both quality assurance and quality control checks to ensure that the water distributed to customers is compliant with the Philippine National Standard for Drinking Water 2017. At the plant level, the process control laboratories of its La Mesa and Putatan plants conduct quality assurance at every stage of the treatment process. Likewise, at the water distribution level, Maynilad’s Central Laboratory performs quality control activities through daily testing of the water quality of water samples collected from the customers’ taps at a ratio of 1 sample per 10,000 population. The locations of these sampling stations include: Valenzuela, Malabon, Caloocan, Navotas, Cavite, Quezon City, Manila, Pasay, Paranaque, Las Pinas, and Muntinlupa.
Maynilad complies with the pronouncement made by the Department of Health (“DOH”) on ensuring water quality distributed by water concessionaires to drinking standards. In October 2018, the DOH awarded Maynilad with a plaque of appreciation for being an active member of the Metro Manila Drinking Water Quality Monitoring Committee (“MMDWQMC”) and ensuring the provision of an adequate and potable water supply in the National Capital Region. The MMDWQMC is composed of representatives from the DOH, various Local Government Units in the metropolis, the MWSS Regulatory Office, and the two concessionaires.
LIGHT RAILOperation of LRT-1 involves significant safety and security risks that were previously exacerbated by inadequate maintenance resulting in poor condition of the system prior to MPIC’s investment. To mitigate these risks, LRMC has established a Safety Management System, appointed a strong senior management team with extensive light rail operating experience and is implementing a combination of engineering and administrative controls to enhance operations and maintenance of the LRT-1 line.
In February 2019, LRMC signed a Memorandum of Agreement to strengthen safety and security measures in all 20 stations of LRT-1. The partnership will bring more police visibility in LRT-1 trains and stations.
HIGHLIGHTS FOR 2019LRMC 2019 Customer Service enhancements
Public Information Displays on all 3rd Gen trainsetsProviding public information and safety reminders
Free public Wi-Fi 30 minutes per user in all 20 stations of LRT-1
Maynilad drinking fountainsFree drinking water in all 20 stations of LRT-1
59
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
We value our people by fostering a safe and engaging work environment. In doing so we prioritize our deeply held corporate values of TEAMWORK AND EMPOWERMENT, INTEGRITY AND TRANSPARENCY and ENTREPRENEURSHIP.
This chapter addresses social impacts linked to the people who work with us, including Employee Relations and Diversity, Competency and Skills Development and Occupational Health and Safety.
Engaged Employees and Safe Workplaces
For more information about …• Identified Material Topics: please refer to the ESG Reporting Methodology • Consolidated summary of KPIs: please refer to the ESG Data Summary
60
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
EMPLOYMENT PROFILE
Management ApproachAs part of our commitment to good governance, the Company’s Board, acting through its Audit Committee, oversees compliance of the Company’s policies and practices with relevant laws and regulations concerning employment and employee welfare, including the Labor Code of the Philippines and the National Health Insurance Act.
Attracting and retaining the right talent is essential for growth of our business. The Company provides competitive compensation and benefits packages, including an incentive plan linked to profitability and share price performance, allowances, paid leaves, life and accident insurance, and a retirement plan. All employees receive regular and constructive feedback on their performance. We conduct an employee satisfaction survey every two years to receive feedback and implement improvements.
Engaged Employees and Safe Workplaces
Overview of Our Employment ProfileMPIC Parent Company
Female35
Male21
63%
MERALCO
MaleFemale
NLEX/SCTEX
Male722
Female742
GBP
Male764
Female190
CAVITEX
Male93
Female75
MAYNILAD
Male1,653
Female565
AHI
Male590
Female1,209
DDH
Male377
Female795
CSMC
Male319
Female731
MMC
Male1,029
Female2,184
LRMC
Male932
Female466
5,6012,600
61
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
MPIC Parent Company
AHI1
MERALCO
CSMC MMC1DDH
GBP MAYNILADNLEX/SCTEX CAVITEX
Engaged Employees and Safe WorkplacesKey Performance Indicators Employment by Gender
2019
2019 2019 20192019
2019 2019 20192019 20192018
2018 2018 2018
2018 2018 20182018 20182017
2017 2017 20172017 2018
2017 2017 20172017 2017
LRMC
201920182017
35
212221
3431
Male Female
2,600
5,601
1,159
4,443
1,118
4,421
190
764
177
770
175
783 742
722
75
565
1,65393
652
46562
1,642
48
666
724
735
54 614
1,863
76
1,209 731 2,184
466
795
377590
979
6831,899
463487
929
6671,801
462
732
361490 319349365 1,029
896834
932 938 992
The increase in hiring activity for CSMC in 2019 is attributed to the 26.8% increase in separations from last year. Hiring nurses has been a challenge, to augment this, CSMC has opened a position for Clinical Patient Assistant to assist nurses in the operations.
1 2019 data includes residents/fellows
62
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe Workplaces
Females in Management - 2019% of Senior
Managers% of Middle
Managers% of All
employeesMPIC Parent Company 50% 67% 63%MERALCO 22% 37% 32%GBP 35% 34% 20%Featured Toll Roads 32% 37% 48%Maynilad 33% 33% 25%Featured Hospitals 61% 68% 68%LRMC 32% 27% 33%
NEW HIRES AND EMPLOYEE TURNOVER 2019
Number of New Hires
Rate of New Hires
Number of Employee Turnover
Rate of Employee Turnover
MPIC Parent Company 6 11% 6 11%MERALCO 3,560 43% 2,238 27%GBP 54 6% 49 5%Featured Toll Roads 392 24% 174 17%Maynilad 131 6% 84 4%Featured Hospitals 2,123 29% 1,721 24%LRMC 94 7% 97 7%
2017
Number of New
HiresRate of
New Hires
Number of Employee Turnover
Rate of Employee Turnover
MPIC Parent Company 8 15% 3 6%MERALCO 383 7% 413 7%GBP 52 5% 56 6%Featured Toll Roads 607 46% Data not available as of
2017 SRMaynilad 266 12% 73 3%Featured Hospitals* 1,319 26% 1,215 24%LRMC 174 12% 60 4%
*DDH was added as a featured hospital in 2018
2018Number of New Hires
Rate of New Hires
Number of Employee Turnover
Rate of Employee Turnover
MPIC Parent Company 8 14% 5 9%MERALCO 315 6% 252 4%GBP 34 4% 41 4%Featured Toll Roads 404 29% 242 17%Maynilad 114 5% 83 4%Featured Hospitals 1,731 27% 1,468 23%LRMC 46 3% 63 4%
HIGHLIGHTS FOR 20192019 Best companies to work for in AsiaMPIC was awarded Bronze in the 2019 HR Excellence awards for the Best in Employee Retention category. MPIC acknowledges that employees are its biggest investment. MPIC expresses commitment to the advancement and well-being of its employees. Their value is considered more than how much they cost. MPIC strives to ensure that employees receive fair compensation and are given equal opportunities for advancement that will enable them to take care of their families.
GBP was named one of the best companies to work for in the region by HR ASIA Magazine. This awards program handpicks world class corporations with high levels of employee engagement, excellent workplace cultures and high levels of job satisfaction. GBP was the only company among 23 winners that operates in the power generation industry.
During the year, AHI also received a prestigious award from ASIA BEST EMPLOYER BRAND recognizing its outstanding performance in Talent Management, Talent Development, and Talent Innovation.
FEMALES IN MANAGEMENT The value we place on gender equality is reflected in the composition of our leadership teams.
NEW HIRES AND EMPLOYEE TURNOVER 2018
NEW HIRES AND EMPLOYEE TURNOVER 2017
63
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe WorkplacesEmbracing Diversity and Promoting Equal Opportunities To cope with the diverse challenges of our business, we recognize the value of making our organization more resilient by cultivating diversity of experience and expertise in our leadership teams. We do not tolerate harassment or unlawful discrimination of any kind, including breaches of relevant employment laws such as the Magna Carta for Women, Anti-Age Discrimination Law and the Paternity Leave Act. In accordance with our Code of Conduct, we provide orientations on equal opportunities and non-discrimination to assist our employees to understand their rights and obligations.
Constructive Relationships with Organized Labor MPIC respects and upholds the Philippine Labor Code, which is the key national legislation on industrial relations, dispute settlement and social dialogue that guarantees the rights of workers to organize unions for collective bargaining.
At MERALCO, two unions represent the interests of rank and file employees and supervisory employees, respectively. The management team adopts a
HIGHLIGHTS FOR 2019 Training to protect the rights of gender minorities in LRMCIn 2019, LRMC partnered with the Commission on Human Rights to develop a series of gender sensitivity trainings for its security personnel. The training covers proper and respectful handling of commuters who identify as as any gender, including LGBTQ, so that everyone may enjoy a safe and comfortable ride.
proactive and collaborative approach to maintaining open communication and meaningful engagement, including monthly coordination meetings and quarterly briefings, regular corporate events and other activities.
At Maynilad, management maintains continuous dialogue with two union groups, one for rank and file employees and another for supervisors. Negotiations occur twice a year for both unions.
At LRMC, collective bargaining has resulted in the introduction of several kinds of benefits for all of its employees (both members and non-members), including a birthday leave program and two days of bereavement leave following the loss of a loved one. LRMC is committed to evaluating the benefits every three years and will undertake a benchmarking exercise in 2020 to evaluate it.
There were no collective bargaining agreements in place for employees at GBP, the Featured Toll Roads or AHI. The collective bargaining rate is a percentage of the total number of employees.
Rate of Participation in CBAs53%
MERALCO72%
Maynilad45%
CSMC
65% DDH
45% MMC
19% LRMC
64
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe WorkplacesRespecting the Rights of Other Workers In 2019, 10,107 people were employed on ‘temporary’ contracts within the scope of this report. Our operating companies engage contractors (who are not directly employed by our organization) to provide important services. Each company has its own policies and procedures in place to ensure that all workers’ rights are upheld in their respective workplaces.
MERALCO commits to adopt global best labor practices. Its ESH Committee enforces a safety performance campaign held every start of the year to refresh everyone about the safe work rules within company premises. Likewise, all employees and workers must comply accordingly to OSH Law parameters.
GBP follows stringent regulatory standards. Suppliers and service providers are expected to comply with ESH policies and programs during project delivery and implementation in the company’s sites.
In our featured hospitals, doctors, including residents and fellows, are sometimes engaged as consultants rather than employees. Reflecting the fundamental importance of consultants to our healthcare services, they benefit from training opportunities and staff engagement and wellbeing initiatives in a similar way to regular employees.
At LRMC, all potential vendors must complete an accreditation process involving thorough review of legal documentation and on-site inspections to ensure compliance on health, safety, environment and quality (“HSEQ”). Oversight for contractors’ performance is undertaken by a cross-functional team.
HIGHLIGHTS FOR 2019Celebrating our very own Tollway Industry’s Women of AchievementIn 2019, women executives at MPTC were recognized by the Toll Regulatory Board (“TRB”) for their leadership excellence and outstanding contributions to the tollway industry. The Tollway Industry’s Women of Achievement Award is part of the TRB’s annual Gender Advocacy Program.
65
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe WorkplacesTRAINING AND DEVELOPMENTWe must ensure that our workforce has the necessary breadth and depth of skills and experience to achieve our business goals in a sustainable way. Our employee training and development programs are continuously evolving to meet the needs of our growing business. We invest time and resources to get the best out of our people and give them opportunities to make progress in their careers.
Average Training Hours
Overview of Our Training and Development
18
MPIC Parent
Company
GBP MayniladMERALCO Featured Toll Roads
Featured Hospitals
LRMC
3440
20
39
12
34
66
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe WorkplacesKey Performance Indicators Average Training Hours
MERALCO Featured Toll Roads LRMCGBP Featured HospitalsMaynilad
2019 2019 20192019 201920192018 2018 20182018 201820182017 2017 20172017 20172017
33
27
34
20
12
40
39
7
34
MPIC Parent Company
201920182017
NO
T RE
PORT
ED
NO
T RE
PORT
ED
185871
65
46
31
19
6
2424
At GBP, the 16% decrease in training hours is mainly due to the increase in informal training sessions. These informal training sessions include coaching and mentoring in the workplace, and toolbox sessions.
67
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe Workplaces
HIGHLIGHTS FOR 2019GBP saves on Non-Destructive Testing GBP has introduced training to enhance its employees’ skills for examining materials, such as Ultrasonic Flaw and Thickness Testings and Surface Method Testing. These essential services, which were previously contracted out, are progressively being undertaken by GBP’s own employees after they acquire relevant certifications, giving rise to considerable cost savings exceeding P4.5M per site each year. In addition to equipping employees with the right skills and qualifications, GBP’s Maintenance Services Department has gone one step further with the purchase of specialized testing equipment for monitoring, detecting and predicting early signs of equipment failure using ultrasonic frequencies. In the future, GBP plans to share this expertise and generate additional income by providing testing services to third parties.
HIGHLIGHTS FOR 2019CSMC’s junior staff achieve success with Project AppleCSMC has introduced a tailored development program for nursing underboards—technicians or aides who may perform various supporting roles in the hospital—to pursue their dreams of becoming nursing professionals. The program provides financial and organizational support to help participants prepare for the Nursing Licensure Exam. During 2019, 14 candidates successfully passed the exam and received promotions to join the hospital’s team of Caring Cardinal Nurses.
Technical Training Our new hires receive training to develop their technical competence and skills. Tailored ongoing professional development programs foster a culture of learning and continual improvement among our workforce.
MERALCO’s goal is to produce the best engineers in the country. MERALCO’s technical training courses include Cadet Engineering, New Engineers Development and Lineman Development as well as several advanced courses such as Master of Engineering in Electrical Engineering and Immersion Program for Emerging Technical Experts (Electrical Engineers).
GBP is committed to developing its workforce with the necessary skills and competencies to fulfill its expansion plans. It has invested P300 million to establish the GBP Institute for Energy (“GIE”), which serves as its learning and development hub.
NLEX delivered over 45 training courses to enhance its employees’ technical competencies ranging from applied construction management to traffic administration and security practices.
NLEX acknowledges the need for providing frequent technical training to its employees to improve their competence and capabilities. In 2019, NLEX provided 46 technical training sessions including applied construction management, traffic administration, road safety, project management, and network routing and switching.
68
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe WorkplacesMaynilad’s Wastewater Management Division delivers a monthly learning program known as “Technical Talk” to keep employees up-to-date on best practices and innovations in wastewater treatment and management.
Close to one third of LRMC’s employees participated in Customer Service training. Other basic training programs focused on safety, including Safety Communication to address proper reporting procedures and Basic Train Intervention for first responders to enhance emergency preparedness.
Nearly three quarters of employees at MMC attended Basic & Advance Life Support Programs to ensure every patient encountering cardiac or respiratory arrest within the hospital will be attended to immediately, resulting in a higher chance of recovery.
LeadershipOur leadership training programs are designed to ensure the long-term success of our business by supporting talented individuals to thrive in positions of leadership.
In 2019, GBP’s Leadership Programs were attended by 14% of employees, including its Supervisory, Management and Executive Development Programs.
NLEX runs the Ateneo Leadership Management Development Program and De La Salle Management Development Program to help bring on the next generation of leadership.
The Tatak Maynilad Leader (Essentials of Leadership and Management) Program is for high-performing individuals who are being groomed for broader management responsibilities.
CSMC’s Supervisory School Program is targeted at mid-level leaders with emphasis on enhancing operational efficiency and patient safety. More than half of employees completing this program have been promoted to leadership roles.
Training As part of our operating companies’ commitment to integrated management systems, they must ensure their employees receive extensive training to understand what’s required and successfully implement organizational transformation.
GBP’s Training on ISO 9001:2015 Quality Management System is designed to provide its IMS Committee members, internal auditors and other employees with the latest information to enable them to apply any changes or updates in the standards to their areas of work.
Maynilad’s International Trade Center Supply Chain Management Certification Program is a practical training pack designed to make effective international purchasing and supply chain management a key driver for business competitiveness and long-term success.
For more information about…• Ethics training: please refer to Business Ethics • Safety training: please refer to Occupational Health & Safety
69
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe WorkplacesOCCUPATIONAL HEALTH AND SAFETY At MPIC, health and safety at work involves both the prevention of harm and the promotion of health and wellbeing for all workers. Given the diversity of their services and operations, MPIC’s operating companies ensure that there is a Hazard Identification, Risk Assessment and Determining Control in place to address risks and impacts. Each of our operating companies faces a unique set of health and safety risks for their workers, ranging from slips, trips and falls, to exposure to dangerous chemicals, moving objects and heavy equipment, as well as specific risks associated with performing underwater or medical procedures.
SAFETY TRAININGIn accordance with relevant regulations and agreements, our operating companies report on their Occupational Health and Safety (“OHS”) policies and performance to the Department of Labor and Employment (“DOLE”) Bureau of Working Conditions.
Specific work-related health and safety risks faced by employees and contractors of each of our principal operating companies are discussed in the risk factors section of MPIC 2019 SEC Form 17-A.
In 2019, GBP’s Safety Training Programs were attended by over 60% of employees, including 8-hour Mandatory OSH Training, 40-hour Fundamentals of Industrial Hygiene Training, and Occupational First-Aid Training with Basic Life Support.
GBP ensures its Hazard Identification, Risk Assessment and Determining Controls (HIRADC) process is in place. The control measures set to counteract the risks identified with hazards are further evaluated through a Plan-Do-Check-Act (PDCA) Cycle. For the Incident-Accident Investigation and Reporting Procedure, the employee reports directly with the fastest
means to the immediate head/supervisor. The immediate head/supervisor will conduct initial investigation and accomplish the supervisor’s incident report within 24-hours after having been notified. Lastly, the Safety Officer, together with the concerned immediate head/supervisor and the Environment, Safety and Health (ESH) Committee shall lead the final investigation of the incident. The final investigation report shall be finalized within five working days after the date of investigation. If necessary, a Clinic Report shall also be accomplished by the resident nurse and/or doctor.
At the power plant sites, toolbox talks take place at the beginning and end of every shift beginning and end of a shift, and a proper turnover is conducted every end of shift. Immediate Heads/Supervisors brief subordinates, including contractors for the activities and control measures to mitigate hazards on a per shift basis. As an added initiative of the company, GBP provides each employee with a “Go bag” (Survival Kit) which includes hard hat, first aid kit, flashlight, whistle, candle and other identified essential items.
MERALCO implements an identification, communication and engineering strategy to assess risks and eliminate hazards. In the event of any health and safety threat, each facility and operating center have designated safety officers and emergency health services to mitigate the situation. A daily safety huddle is practiced in the operational sites. This 5 to 15-minute huddle checks the mental and emotional condition of line men, daily check of PPE, discussion of safety issues and near miss, safety reminders and a moment of prayer. Likewise, a Hazard Hunter App and Incident Reporting tool were created to promote hazard identification efficiency.
NLEX, CAVITEX, and Maynilad created health and safety committees who meet monthly to discuss occupational health and safety concerns of the workers. Each department has at least one representative in the committee. Employees are encouraged to discuss
70
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
any safety related concerns with the representative to be raised during the monthly huddle. The planned action to address these concerns are then discussed with management for consideration.
For the healthcare group, preventive hazard measures are established such as job hazard analysis, environment of care inspection and routine rounds and safety officer’s regular inspection. Consequently, to protect our high risk workers, such as radiation workers, these workers are rotated to other floors or assigned to do administrative tasks to reduce the amount of radiation absorbed by the body. In this manner, we maintain the health and wellness of our workers.
CSMC is committed to upholding a safe and secure working environment. Its Workplace Safety Training comprises a three-part program focused on Prevention of Workplace Violence, Patient and Workplace Safety and its Code of Ethical Conduct.
DDH has introduced a Work-life Balance Training Program attended by 100% of employees to help reduce absenteeism, and increase productivity.
Similar to the toll roads and Maynilad businesses, LRMC also established a committee to discuss the health and safety issues of its employees. On top of this, LRMC’s RIA app allows all employees, as well as customers, to report hazards or risks identified in its business
areas. These risks are then studied by a committee who determines the root cause and level of urgency. For highly critical concerns, these are to be addressed within 24 hours.
Specific work-related health and safety risks faced by employees and contractors of each of our principal operating companies are discussed in the risk factors section of MPIC 2019 SEC Form 17-A.
In 2019, a driver fell asleep while driving along NLEX, which caused the driver to accidentally hit an NLEX patrol officer. The accident fatally injured the NLEX employee. Due to this incident, NLEX improved the visibility of its employee’s attire and equipment with better reflectors. Also, NLEX installed additional rumble strips to further avoid accidents. Multiple refresher sessions were held to remind the patrol officers of the safety protocols of the company.
Since work life balance of employees is important to the organization, well-being initiatives have been conducted through out the year. The programs conducted are wellness talk / wellness fair launch, sports related activities, family day and free interpretation of Annual Physical Examination results amongst others. Maynilad and LRMC also require employees who are exposed to certain risks (e.g., auditory and/or visual) are required to undergo additional tests during their physical examination.
Engaged Employees and Safe Workplaces
71
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe Workplaces
Employee Occupational Health & SafetyMERALCO GBP NLEX/SCTEX CAVITEX MAYNILAD AHI CSMC DDH MMC LRMC
Parent Company
Workers covered by OHSAS management system
Employees Number 8,201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56
Other workers Number Not Reported 1,302 139 94 333 237 Not Reported 16 1,072 48 -
Employees covered by OHSAS management system Percent 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Other workers covered by OHSAS management system Percent Not Reported 100% 100% 100% 100% 100% Not Reported 100% 100% 100% 0%
Total fatal cases from work accidents Number - - 1 - - - - -
Total occupational injuries Number 74 8 5 - - 2 11 23 532* 4 -
Total lost working days due to injuries Number 209 - 12 - - 8 - - 44 -
Total no. of occupational diseases Number Recalibration - - - 14 - - 10 - -
No. hours of health & safety training provided to Employees Number 58,768 238 3,384 124 36,649 96 348 77 13,996 3,348 -
Safe Man-Hours Hours 12,466,548 2,326,247 4,090,272 781,540 4,417,519 2,811,392 2,217,600 1,987,200 6,785,856 2,030,361 117,376
Number of safety drills Number 324 78 2 2 57 319 3 12 4 9 5
Hours worked Hours 12,466,548 2,326,247 4,103,424 781,540 4,417,519 2,811,392 2,217,600 1,987,200 6,785,856 3,189,229 117,376
Key Performance Indicators Dash denotes zero
*Includes needle stick injuries
72
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe WorkplacesOccupational Health and Safety Management SystemsOur operating companies have occupational health and safety management systems (“OHSMS”) in place that conform to local regulatory requirements and internationally recognized standards. These systems help us to continuously improve our OHS performance by developing and communicating appropriate OHS policies. MPIC’s operating companies ensure that there is a Hazard Identification, Risk Assessment and Determining Control in place to address risks and impacts to the employees.
A full list of relevant certifications received by our operating companies is available in our Annex.
Internationally Recognized Standards Adopted
ISO 45001:2018MERALCO, NLEX
OHSAS 18001:2007GBP’s Power Plants, Maynilad
Joint Commission International AccreditationAHI, MMC
Accreditation Canada International Gold StandardDDH, CSMC
HIGHLIGHTS FOR 2019LRMC introduces new safety appIn 2019, LRMC introduced a Recognition Information Action (“RIA”) safety mobile application for its employees to report hazards or potential danger they see in their workplaces, including all LRT-1 stations. The app is available for download on Google Play Store and App Store.
ISO 9001:2015LRMC, CSMC
73
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Engaged Employees and Safe WorkplacesOccupational Health and Safety Management Systems Features
Key features of OHSMS HighlightsEstablish an OHSMSDevelop an OHS PolicyAnalyze OHS Hazards and Select Controls GBP’s power plants implement Hazard Zoning and Personal Protective Equipment
mapping. All activities are governed by a Permit-To-Work System.
Establish Responsibility and Accountability MERALCO’s Networks Operational Safety Council ensures that work tasks involving significant hazards are properly assessed and addressed.
LRMC’s management by walking around’ safety intervention program ensures senior managers will develop a sound understanding of OHS issues and concerns.
Ensure Competence and Provide Training GBP has an Annual Training Plan which includes ESH-related trainings. All new hires at LRMC complete a comprehensive online HSE induction program.
Establish OHS Communication and Participation Employees participate in formal joint management–worker health and safety committees. At GBP, all contractors receive on-site safety orientation training.
Control OHS Documents LRMC has implemented Assai document control and management software for its OHS records in line with industry best-practice.
Promotion of worker health Employees and workers have access to non-occupational medical and healthcare services through the national Social Security System, the national health insurance program—PhilHealth—as well as other supplementary medical benefits.
LRMC provides Annual Physical Exams for all employees.
Maynilad monitors employees who are at higher risk for exposure to chemical and physical hazards. Employees and their dependents enjoy access to emergency, out-patient and in-patient medical services as well as annual vaccination and oral health programs.
Our hospitals implement a Drug-free workplace enforced by random HIV and drug testing. In addition to annual medical examinations, we provide vaccinations for our health workers.
Establish an OHS Emergency Management Process Under GBP’s Emergency Prevention and Response system, fire detection and suppression systems are regularly inspected, tested and maintained. Emergency response procedures have been established and are the subject of regular training and drills.
MERALCO’s Business Continuity Management team is responsible for strategy and governance of company-wide business continuity plans with the objective of enhancing safety and organizational resilience.
Investigate Incidents and Take Remedial Action Under GBP’s Behavioral-Based Safety program, a Safety Observation System monitors safety incidents and hazards reported by employees and other workers to ensure appropriate corrective actions and preventive measures are put in place.
74
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
This chapter provides information on the elements of our Sustainability Framework relating to Community Engagement, Educational Support, Greening Initiatives and Disaster Relief and Response.
Social Responsibility
For more information about …Identified Material Topics: please refer to the ESG Reporting MethodologyConsolidated summary of KPIs: please refer to the ESG Data Summary
75
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social Responsibility HIGHLIGHTS FOR 2019New NLEX project a “Game Changer” for the local economyIn September 2019, NLEX Corp broke ground on its P1.6 billion expansion of Subic Expressway, which is expected to provide a significant boost to the local economy by increasing the tourism potential of Subic and attracting more investment to Central Luzon. The project, which is expected to be completed by 2022, will expand the current one-lane SFEx to a two-lane configuration for each side, and build two bridges in Jadjad and Argonaut as well as a new 8.2 km tunnel parallel to the existing one.
In the design and implementation of this project, NLEX Corp. has adopted several additional measures to benefit the local community. For example, by committing to plant 100 new seedlings for every tree cut down during construction, and by upgrading the entire thoroughfare with expressway-standard LED lights to enhance public safety.
ENTERPRISE RISK MANAGEMENT - SOCIAL RISKSMPIC’s core business is to invest in services such as power, transport, water, and healthcare that are essential for sustainable development of local communities. Despite our best efforts, specific groups can be negatively impacted by our activities and some may not benefit as fully as others due to poverty or other constraints. As responsible corporate citizens, we recognize there is always more we can do to listen and respond to the needs of our stakeholders in local communities.
POWERUnder its Energizing Partnerships Program, MERALCO works with local government units in the Province of Rizal to improve access to safe and affordable electricity. Throughout its franchise area, MERALCO assists low-income households to satisfy the financial and documentary requirements for service applications. MERALCO also supports its customers to make small-scale investments in renewable power (up to 100 kW capacity) while ensuring the safety, stability and sustainability of the grid. Through its Net-Metering program, any excess electricity that is not consumed by the customer will be compensated via credits on their monthly bill.
TOLL ROADSMPTC’s ambitious road-building projects bring many social and economic benefits to local communities but invariably cause inconvenience during the construction phase. Residents who occupy sites where new roads will be built may wish to protect their rights to stay and resist resettlement. Consequently, right-of-way acquisition (“ROWA”) has become a big stumbling block for many national infrastructure projects.
To mitigate these risks, NLEX Corp has a dedicated Right-of-Way Task Force responsible for liaising with all stakeholders in accordance with the “Lina Law” (RA 7279/ Urban Development and Housing Act of 1992), including informal settlers, landowners, Local Government Units and
the National Housing Authority. Face to face dialogues with affected families often help them to appreciate the benefits of road construction even if it involves resettlement, such as better housing and new employment opportunities. NLEX Corp gives priority to local residents when hiring construction workers for its projects.
CAVITEX also has a dedicated ROW team who liaises and coordinates with government agencies, local governments, formal and informal settlers for the resolution of ROW concerns and to facilitate acquisition of ROW. In addition, there is a Central ROW, the members of which are the ROW teams of NLEX/SCTEX and CAVITEX, where common or collective ROW issues and concerns are discussed and resolved, including the determination of strategies and actions moving forward.
“As good corporate citizens, we have to take into consideration the plight of those who have to give way to progress.” Rodrigo E. Franco, MPTC President and Chief Executive Officer
76
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social Responsibility
WATERMaynilad’s Pro-poor Water Service Delivery Schemes benefit over 400,000 indigent households in its concession area, including Lifeline customers and low-income and elderly households. In addition to offering flexible, long-term payment schemes for water service applications, it helps to organize residents of poor urban areas into cooperatives that can oversee the provision of affordable drinking water for their communities. Through a social enterprise model advocacy, Cavite business area and Muntinlupa-Las Pinas business area have successfully addressed the water woes of informal settler families who otherwise would be
For more information…Please refer to Maynilad’s Partnerships for Water Resource Rehabilitation: Operational Efficiency Environmental Risk Management
Lifeline accounts Low-income households served
Households receivingsenior citizen discounts
~340,000 ~240,000 2,180
water vendors to procure overpriced and frequently contaminated water.Extension of Maynilad’s Concession Agreement to 2037 has paved the way for increased investment in water infrastructure that benefits poorer communities as well as more affluent areas. Expanding the area of the sewerage network causes particular inconvenience for motorists and local communities because sewerage pipes must be laid very deep into the ground. To minimize the negative impacts of this kind of work, Maynilad uses trenchless technology that helps speed up implementation.
Maynilad supports Project “Kubeta Ko”In early 2020, Maynilad signed a memorandum of agreement with the DENR, the city government of Manila, and the MWSS to participate in the “Kubeta Ko” project. This joint effort to provide safe and appropriate sanitation services for the urban poor will provide toilet facilities for informal
settler families as part of the Government’s initiative to rehabilitate Manila Bay. Under the project, 400 portable toilet units will be donated by the Bill and Melinda Gates Foundation and Maynilad will be responsible for collecting and treating the sewage.
unable to access Maynilad’s services due to legal, financial and technical reasons.
Maynilad’s Pag-asa sa Patubig Partnership (“P3”) has helped to connect over 700 underprivileged families from informal settler communities to its distribution system in Barangay Talon Tres, Las Pinas City (Molave Extension Riverside Neighborhood Association Inc.) and in Barangay Habay 1 Bacoor City (‘Bahayang Nagkakaisang’ Association, Inc.) Before assisting these P3 beneficiary communities, the residents relied on
HIGHLIGHTS FOR 2019
HIGHLIGHTS FOR 2019
Study on community-based sanitation and SWM programIn 2019, Maynilad partnered with France-based NGO Eau et Vie and Water and Life Philippines to implement a feasibility study aimed at overcoming the challenges of septage collection from informal settler communities, and combining sanitation with a solid waste collection scheme in the West Zone. The study ran from December 2018 to December 2019 in the P3 coastal community of Pugad Ibon.
PPP
77
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityLIGHT RAILLRMC is working closely with DOTr and Light Rail Transit Authority to implement the LRT-1 Extension Project smoothly and efficiently under the government’s “Build Build Build” scheme. To mitigate impacts on local communities, an above-ground launcher construction methodology has been deployed that allows for faster execution of
For more information about…• Expansion of EDSA station, please
refer to Contributions to our Nation-building.
• Customer Service enhancements, please refer to Service Excellence.
LRMC helps to green Manila In support of the local government’s initiative to create 1,600 hectares of green space in central Manila, LRMC has transformed two concrete pillars beneath the LRT-1 line running between Central Station and Manila City Hall into green vertical gardens. The composition of plants, including bird’s nest fern, manaog ka irog, and philodendron heartleaf, has been carefully selected to help fight air pollution.
the project and reduces negative effects on ground-level traffic by transporting viaducts above-ground rather than street-level.
HIGHLIGHTS FOR 2019
HIGHLIGHTS FOR 2019
LRMC reduces noise pollutionLRMC is working hard to reduce noise pollution from its network. Since 2017, local communities living and working in the vicinity of the LRT-1 line between Tayuman and Blumentritt stations will have noticed a big improvement following the installation of new parapets and noise barriers. LRMC’s monitoring activities confirm that between February 2017 and September 2019, the average level of daytime noise decreased 13% from 79.20 dB to 66.98 dB at street level.
“We share the vision of Mayor Isko to create a more vibrant, green, and improved City of Manila.” Juan Alfonso, LRMC President and Chief Executive Officer
78
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityCOMMUNITY INVESTMENT Our businesses contribute to sustainable development in three pillars of our framework (Operational Efficiency, Service Excellence and Engaged and Safe Workforces) during the course of day-to-day operations, but as responsible corporate citizens we must go further. To supplement our contributions to nation building through our normal business practices, we implement community programs that are designed to reach the most vulnerable people and help tackle some of the most intransigent development problems facing our communities.
Our community investment programs focus on poverty alleviation, educational support, environmental protection, and disaster response and relief.
CORPORATE SOCIAL RESPONSIBILITY
Metro Pacific Investments FoundationMetro Pacific Investments Foundation (“MPIF”) is a constituent of the Corporate Social Responsibility Council of the Manuel V. Pangilinan (“MVP”) group of companies, known as “Tulong Kapatid”. Its community investment strategy is focused on
community-based initiatives for poverty alleviation, education and environmental conservation.
79
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityMPIF KEY PROGRAMS
12,171 volunteers participated in a nationwide coastal and underwater clean-up in Cordova, Cebu, Alaminos City, Pangasinan, Mabini, Batangas, Puerto Galera, Oriental Mindoro and Surigao Del Norte
800 volunteers helped to plant 300 mangrove seedlings in Alaminos
9 Marine Protection, Inspection and Conservation Guardians received open water scuba training
18 MPIC volunteers hosted a summer program for the students
2019 HighlightsContinues to provide scholarship for 23 scholars and teachers’ professional development at the Mano Amiga Academy, Parañaque City
2019 Highlights• 99% reduction in mangrove cutting and 95%
reduction in illegal fishing (Del Carmen)• Support for startup of new tourism-related
enterprises (Del Carmen)• Capacity building for 36 Marine Guardians and
Marine Eco-Guides (Puerto Galera, Misamis Oriental, Del Carmen and Alaminos)
• Certified seven new dive scholars from MPIC, One MERALCO Foundation and the Rotary Club of Makati – Lumina
• Conducted an underwater clean-up, mobilizing the largest number of volunteer divers SIU has to date
Mano AmigaMANO AMIGA is a non-profit organization established in 2008 that has developed into a highly impactful social development program with support from MPIF.
Aim• To provide quality education for children from low-income
families
Key Activities• Annual 1 million scholarship grant for students at the Mano
Amiga Academy• Annual 500,000 teacher training and benefits support
Shore It Up!Our Shore It Up environmental program was established in 2007.
Aim• Working with local government units to promote
eco-tourism and environmental sustainability through programs that help conserve and protect valuable coastal and marine ecosystems.
Key activities• Marine Protection, Inspection, and Conservation
(MPIC) Guardians program and the annual Shore It Up! Weekend to focus on environmental rescue, restoration, and revival
• Mangrove Eco-guides and Mangrove Propagation/Protection and Information Centers in Alaminos, Pangasinan and Del Carmen, Siargao to focus on developing knowledge about mangroves’ and their benefits
• Health It Up! Medical mission directed towards coastal community partners with limited access to quality healthcare
• Capacity building for partner organizations
80
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social Responsibility
Brgy. San Antonio Fire Outreach ProgramMPIF, through Alagang Kapatid Foundation, Inc., provided relief support to the fire victims in Barangay San Antonio, Quezon City.
From Makati to Marawi MPIF contributed to the development of a rural health centre by creating a play and learning corner for the children in the local community. The Foundation donated playmats, educational posters and toys, and books.
Relief operations in Itbayat, BatanesMPIF, in partnership with other “Tulong Kapatid” Foundations, contributed to the relief operations for the victims of the July 2019 earthquake. The Foundation donated 30 Tulip tabletop water filters, as well as an Automated External Defibrillator unit to the local government.
CALAMITY AND OTHER SOCIAL DEVELOPMENTSMPIF contributed to several relief operations throughout 2019
Another triumph for rural electrification with renewable energyIn July 2019, MERALCO inaugurated the first phase of its power microgrid at Cagbalete Island in Quezon Province. The microgrid’s hybrid generating plant features a 60 kW solar PV system, 150 kWh battery energy storage, and two units of 30 kW diesel generators. It will provide uninterrupted power 24/7 for local residents of the island.
HIGHLIGHTS FOR 2019
81
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityONE MERALCO FOUNDATIONOne MERALCO Foundation (“OMF”)—formerly known as MERALCO Millennium Foundation—is the social development arm of MERALCO. It is a donor institution accredited by the Philippine Council of NGO Certification and a registered social welfare and development agency under the DENR. In partnership with other businesses and government agencies, MERALCO’s employees volunteer their time through OMF to deliver sustainable energy solutions and other support for off-grid communities.
Social Development Program
Youth Development Program
School Electrification ProgramBrings electricity and technology to off-grid public schools located in remote island and mountain communities both within and beyond MERALCO’s franchise area
Energy Education Program Seeks to develop teachers’ skills and provide tools for teaching energy concepts in partnership with the Coalition for Better Education
Household Electrification Program Provides affordable and safe electric service in organized depressed communities
20 schools
4,055 students
146 teachers
118 communities
8,266 low-income households
33,282 students
79 schools
21,557 families
1,173 youths
82
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityGBPGBP works closely with local communities to help improve provision of basic health, education and other social development services.
CAVITEXCAVITEX has several programs working with local partners on environmental protection.
Coastal Clean Up and International Coastal Clean UpPromote safe, clean and green eco-tourist tollways
Program cost: P170,000
Coastal Clean Up and International Coastal Clean UpReducing impacts of air pollution and improving expressway aesthetics
Program cost: P60,000
Social Development ProgramImproves the quality of life in adopted barangays. Program cost: P4.2 million
Scholarship ProgramSupport for poor students demonstrating academic excellence in the adopted barangaysProgram cost: P8.1 million
PLDT Bougainvillea and Lantana Planting ActivityGreening Cavitex Aguinaldo Boulevard in Parañaque City
Program cost: P120,000
14 projects (Aklan, Cebu and Iloilo)
20,610 families
15 College students
428 Elementary
385 High School
Adopt-a-Health CenterSupport for health centers in adopted barangaysProgram cost: P5.7 million
29 adopted health centers (Aklan -3, Cebu - 5, Iloilo - 20, Mindoro - 1)
83
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityMAYNILADIn order to address broader social development issues concerning access to clean water, sanitation and hygiene, Maynilad works closely with schools and other key customers in its franchise area to ensure proper provision of drinking fountains, bidets and signage advocating good hygiene practices. It also works closely with vulnerable communities to help them establish sustainable sources of income.
Lingkod EskwelaDonation and installation of drink-wash areas in 50 schoolsProgram cost: P8 million
Brigada EaskwelaRefurbishment of classrooms and upgrading of water and sanitation facilities in schools Program cost: P450,000
GinhawashReinforcement of healthy behavior through installation of 500 bidets and 200 drinking fountains Program cost: P450,000
Daloy Dunong Promoting good hygiene, waste management and water conservation practicesProgram cost: P1.2 million
KapwaPartnering with the women of STM-Tondo to provide them with livelihood support25 membersProgram cost: P340,000
150,000 “Water Warrior” ambassadors
540 schools
12 high schools
20 LRT centers
4 hospitals
5 health centers
84
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social Responsibility
Green BadgeUpcycling retired Maynilad uniforms for donation during disaster relief operationsProgram cost: P1.6 million
Ginhawa GardeningUrban gardening campaignProgram cost:P304,000
Maynilad expands Ginhawa Gardening campaignIn 2019, ten public schools participated in Ginhawa Gardening: Maynilad’s urban gardening campaign, including five schools in Caloocan City (North) and five schools in Las Pinas City (South). This is only the second year that the campaign has been implemented outside of Paranaque City. In addition to installing vertical gardens with drip irrigation systems at the schools, Maynilad conducted “green lifestyle” workshops for the students with the aim of reinforcing positive messages about good nutrition, good hygiene and environmental protection.
The urban garden campaign started in 2016 in support of the Paranaque City local government’s home food security program. As a testament to the campaign’s enduring success, 29 vegetable gardens that Maynilad helped establish over four years ago are still going strong.
Sining Ipo Harnessing the power of art to provide livelihood support for indigenous craftsmen in Ipo WatershedProgram cost:P709,000
HIGHLIGHTS FOR 2019
10 schools
30 beneficiaries
85
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityLRMCLRMC is finding creative ways to clean up the environment while engaging local communities.
Tactile TilesRecycling PET bottles into decoration for new stationsProgram cost: P600,000
Bikeways ProjectConstructed bikeracks at LRT Libertad station and 900m of bikeways promoting clean means of transportationProgram cost: P800,000
Cleanest Barangay CompetitionEncouraging local communities to clean up their neighborhoodsProgram cost: P500,000
3,300 households
86
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityFEATURED HOSPITALSOur hospitals offer subsidized patient programs and conduct medical missions to extend healthcare services to marginalized patients with financial constraints.
AHIMedical Assistance for
Charity In PatientsProgram cost: P183,000
DDHMedical Mission at Sitio
MarahanProgram cost: P152,000
DDHRIBBON OF HOPE Run for
Cancer Awareness Program cost: P9,900
MMCSubsidized surgery for
thyroid patientsProgram cost: P35,000
AHISwing Fore
Charity - Golf-For-CauseProgram cost: P810,000
Subsidized Patient Programs 184 participants
8 volunteers
CSMCWorld Day of the Sick
Medical Mission at Tondo, Manila
Program cost: P149,000
350 beneficiaries
CSMCFree Medical Services at MVP
Cares Medical MissionProgram cost: P221,000
100 beneficiaries
DDHBlood Donation Campaign
Program cost: P224,000
2,242 donors
CSMCFree Medical Services at San
Felipe Parish ClinicProgram cost: P1 million
1,500 beneficiaries
DDHFree Clinic - Co Su Gian
(Home for the Aged)Program cost: P7,000
63 beneficiaries
AHICommunity Outreach -
“Harana para kay Lolo at Lola” (Muntinlupa)
Program cost: P103,000
103 elderly beneficiaries
MMCMedical Missions
Program cost: P327,000
15,000 beneficiaries
478 beneficiaries
CSMCMedical Assistance for Charity Out Patients
Program cost: P8.0 million
12,400 beneficiaries
CSMCMedical Assistance for
Charity In PatientsProgram cost: P17.8 million
901 beneficiaries
9 beneficiaries
61 beneficiaries
87
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Fundraising for CharityMedical Missions and Community Outreach
Social ResponsibilityBRIGADA ESKWELASeveral of our operating companies support the Department of Education’s annual maintenance week known as “Brigada Eskwela” to help public schools prepare for the opening of the new school year.
GBPProgram cost: P525,000
CSMCWellness Activity for Pinaglabanan Elementary School TeachersProgram cost: P151,000
MayniladProgram cost: P450,000
DDHBolton Elementary School Community
*DDH did not incur program cost for 2019. The “Brigada Eskwela” activity will be conducted on or before June 2020.
23 adopted schools
170 schools
88
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Social ResponsibilityGROUP-WIDE SUPPORT FOR DISASTER RELIEFThe Philippines is a country prone to frequent and devastating natural disasters. In addition to bolstering the resilience of our own infrastructure and services to the effects of earthquakes, volcanic eruptions and extreme weather events, we see it as our duty to support the government and other non-governmental organizations to deliver emergency relief to affected communities in the immediate aftermath of these events. The contributions of our operating companies to emergency relief efforts reflects the range of resources and skills that we have at our disposal.
7,729 618 MERALCO GBP Total Beneficiaries Total Household-Beneficiaries
DDHAssistance to victims of the Mindanao Quake in Matanao, Brgy. Asinan, Davao del Sur.Program cost: 240,000
CSMC“Sama-Sama Sa Pagbangon” Earthquake Mission Program cost: 227,000
MMCMindanao Mercy Mission in Kidapawan City Program cost: 11,000
FAMILIES BENEFITTING FROM DISASTER RESPONSE
Maynilad mobilizes aid for evacuees in Batangas and CaviteIn response to the displacement of thousands of families in Cavite and Batangas following the recent Taal Volcano eruption in January 2020, Maynilad has mobilized its volunteers to install 10 static water tanks at evacuation sites and deliver bottled water and other relief goods for evacuees.
HIGHLIGHTS FOR 2019
(families in Aklan and Mindoro)
CAVITEXRelief OperationsProgram cost: 52,000
6 doctors
2,500 beneficiaries
180 beneficiaries
150 beneficiaries
89
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility
Part ThreeESG Reporting Methodology
ESG Reporting Methodology
90
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts AnnexPart Three: ESG Reporting Methodology
REPORT SCOPE AND TOPIC BOUNDARIESIn 2019, MERALCO has expanded the boundary of reporting on its operations. There have been no other significant changes to the scope of this report compared with 2018. The following table summarizes our shareholding of corporate entities that are within and outside the boundary of this report.
Within Boundary Outside BoundaryPower 46% Manila Electric Company
and Subsidiaries46% MERALCO PowerGen Corporation30% Clark Electric Distribution Corporation27% Shin Clark Power Holdings Inc.45% MERALCO Industrial Engineering Services Corporation46% MERALCO Energy, Inc.46% Corporate Information Solutions Inc.46% MSpectrum, Inc.46% MRAIL, Inc.46% eSakay, Inc.27% Comstech Integration Alliance, Inc.
Manila Electric Company Subsidiaries 46% Vantage Energy Solutions and Management Inc.23% Pure Meridian Hydropower Corporation46% Lighthouse Overseas Insurance Limited 22% Mpioneer Insurance Inc. 17% Bauang Private Power Corporation16% Aclara Meters Philippines Inc. 14% Rockwell Business Center11% Indra Philippines Inc.
62% Global Business Power Corp. and subsidiaries 28% Alsons Thermal Energy Corporation100% MetPower Venture Partners Holdings Inc.100% Metropac Clean Energy Holdings Corporation
Toll Roads Featured toll roads operating under Metro Pacific Tollways Corporation 75% NLEX Corporation (North Luzon Expressway and Subic-Clark Tarlac Expressway)100% CAVITEX Infrastructure Corporation (Cavite Expressway)
Other Toll Road Operating companiesPhilippines (Under Development) 100% MPCALA Holdings Inc. 100% Cebu Cordova Link Expressway Corporation 66% Easytrip Services CorporationRegional Investments* 29% Don Muang Tollways (Thailand) 45% CII Bridges & Roads (Vietnam) 76% PT Nusantara (Indonesia)
Water 53% Maynilad Water Services, Inc. 53% Philippine Hydro, Inc. 53% Amayi Water Solutions Inc. 100% MetroPac Water Investments Corporation
ESG Reporting MethodologyThis report has been prepared in accordance with the Global Reporting Initiative’s GRI Standards: Core Option. Some additional explanations and supporting notes are provided in this section.
IDENTIFIED MATERIAL TOPICSFor the purposes of this report, ‘materiality’ refers to significant economic, environmental and social impacts of our business that have substantive influence on the assessments and decisions of MPIC’s stakeholders.
For more information about… • Defining Report Content:
2017 Sustainability Report (page 23) and 2016 Sustainability Report (pages 20 - 21)
• Identified Material Topics: please refer to the GRI Content Index
91
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts AnnexPart Three: ESG Reporting Methodology
Scope and boundary of reportingThis table summarizes the reporting boundaries within our organization:
MPTC holds a significant stake in three major infrastructure companies in the ASEAN Region that are outside the scope of this report because the focus of our ESG strategy is on nation-building in the Philippines. As the size and significance of our investments outside the Philippines continues to grow, we will consider extending the scope of our Sustainability Report to include these operations in future.
Parent Company MERALCO GBP
Featured Toll Roads Maynilad
Featured Hospitals LRMC
GRI 201 Economic PerformanceGRI 203 Indirect Economic ImpactsGRI 205 Anti-corruptionGRI 419 Socioeconomic ComplianceGRI 307 Environmental ComplianceGRI 302 EnergyGRI 303 Water and EffluentsGRI 305 EmissionsGRI 306 Effluents and WasteGRI 416 Customer Health and SafetyGRI 401 EmploymentGRI 403 Occupational Health and SafetyGRI 404 Training and EducationGRI 405 Diversity and Equal OpportunityGRI 413 Local Communities
Within Boundary Outside BoundaryHealthcare Featured hospitals operating under Metro Pacific
Hospital Holdings, Inc.Other Hospitals / Healthcare Facilities
17% Asian Hospital and Medical Center 20% Colinas Verdes Hospital Managers Corporation (Cardinal Santos Medical Center) 10% Davao Doctors Hospital (Clinica Hilario Inc.) 7% Medical Doctors, Inc. (Makati Medical Center)
4% Manila Doctors Hospital 10% Central Luzon Doctors 10% Sacred Heart Hospital 12% De Los Santos Medical Center 13% Delgado Memorial Hospital 16% Riverside Medical Center 16% St. Elizabeth Hospital 19% Marikina Valley Medical Center 20% Our Lady of Lourdes Hospital 13% West Metro Medical Center 15% Manuel J. Santos Hospital 10% Los Baños Doctors Hospital and Medical Center Primary Care Centers 8% The Megaclinic Inc. 8% Tophealth Medical Clinics Inc. 10% Keralty Manila Inc. Laboratory 8% Medi Linx Laboratory Cancer Centers Metro Radlinks Network • 18% Metro RMCI • 10% Lipa Medix • 20% West Metro • 4% Calamba 10% Metro CLDH 16% Metro SEHI
Light Rail 55% Light Rail Manila CorporationLogistics 100% MetroPac Logistics Company, Inc.Other Services
20% AF Payments 25% Indra Philippines Inc. 100% Metro Vantage Properties, Inc.
ESG Reporting Methodology
92
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts AnnexPart Three: ESG Reporting Methodology
EmissionsGHG Emissions have been calculated in accordance with the GHG Protocol developed by World Resources Institute and World Business Council on Sustainable Development and expressed in carbon dioxide equivalents (“CO
2e”). Direct emissions for GRI reporting are the same as Scope 1
emissions under the Greenhouse Gas Protocol and indirect emissions for GRI reporting are the same as Scope 2 emissions under the Greenhouse Gas Protocol. For MERALCO, Scope 2 GHG emissions include emissions associated with system loss.
ESG Reporting MethodologyBasis of ReportingAll KPIs have been reported on a 100% basis, which means they have not been adjusted to reflect MPIC’s shareholdings in the operating companies.
EnergyDirect energy consumption has been reported in Terajoules (i.e. ‘000 Gigajoules) and calculated by multiplying the mass of fuel by corresponding calorific values. Indirect energy has been reported in Terajoules (i.e. ‘000 Gigajoules), with each gigawatt hour (“GWh”) of purchased electricity representing 3.6 Terajoules.
Heating values applied in 2019
Fuel (GJ/ tonne) SourcesDiesel 43.38 IEA Energy Statistics ManualGasoline 44.75 2004Diesel* 44.93 GBP (Certificate of Quality)Heavy Fuel Oil* 42.90 GBP (Certificate of Quality)Special Fuel Oil* Range: 40.20-41.11 GBP (Certificate of Sampling anf Analysis of Supplier SourcesCoal* Range: 16.3-18.6 GBP (Certificate of Sampling and Analysis of Suppliers Source)
*Consumed in GBP Powerplants
GHG emission factors applied in 2019
Emission factors for fuels (tCO2e/liter)
Emission factors for electricity
(kgCO2e/kWh) SourceScope 1: Diesel 0.002685659 DENRScope 1: Gasoline 0.002280113 DENRScope 1: Heavy Fuel Oil (GBP only) 0.002948981 DENRScope 1: Special Fuel Oil (GBP only) 0.002685659 DENRScope 2: Purchased electricity – National Grid 0.7122 2015-2017
National Grid Emission Factor from DOE
WasteThe waste data reported by our operating companies has either been collected directly through internal monitoring systems or provided by accredited third-parties employed to collect and dispose of waste on their behalf.
Employment, Training and Education, Diversity and Equal OpportunityAdopting the GRI Standards definition, a permanent employment contract is a contract with an Employee for an indeterminate period. At MPIC, regular contract staff and staff under probation are considered ‘permanent.’ In contrast, a temporary employment contract is of limited duration, and terminated by a specific event such as the end of a project or work phase. At MPIC, contractual staff and project-based staff are considered ‘temporary.’
When compiling the information specified in Disclosures 401-1, 404-1 and 405-1, data from Disclosure 102-8 has been used consistently to identify the total number of employees by headcount at the end of the reporting period. For GRI 404-1, average training hours reflects total training hours (for each category of employee) divided by the total headcount (for each category of employee) as of 31 December 2019.
Job Creation FormulaMaynilad computed the number of jobs created as the quotient of 20% of the capital expenditure for the program (rule of thumb in assuming the proportion of labor cost) divided by the minimum wage for each employee assuming a six month construction phase.
93
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts AnnexPart Three: ESG Reporting Methodology
ANNEX
ESG Data Summary
GRI Index
Integrated Management System Certifications
Independent Assurance Statement
94
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
Power Featured Toll Roads Water Featured Hospitals Light Rail Parent Company
Energy Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC1 LRMC MPIC
Total Energy Consumption within the organisation Terajoule 182,552.3 46,467.1 95.7 16.6 530.6 58.7 37.5 29.3 86.1 182.7 0.6 a. Non-renewable fuels consumed TJ 179.4 46,423.0 60.2 9.7 64.2 1.0 0.3 0.7 0.4 3.4 0.2 b. Renewables consumed TJ - 0.6 0.0 - - - - - 0.2 - - c. Electricity purchased for consumption TJ 223.6 43.5 35.4 6.9 466.4 57.7 37.2 28.6 85.5 179.3 0.4
d. Self-generated electricity which is not consumed TJ - 13,862.4 - - - - - - - - - e. Electricity sold TJ -182,149.2 13,862.4 - - - - - - - - -
Total Scope 1 & Scope 2 GHG Emissions ktCO2e 2,910.1 4,880.4 11.4 2.1 97.0 11.4 7.4 5.9 16.9 35.7 0.1 GHG Emission - Scope 1 ktCO2e 937.7 4,871.7 4.4 0.7 4.7 0.0 0.0 0.0 0.0 0.2 0.0 GHG Emission - Scope 2 ktCO2e 1,972.3 8.6 7.0 1.4 92.3 11.4 7.4 5.9 16.9 35.5 0.1
Water Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPIC3
Total water withdrawn by type Megaliter 132,259.8 1,367.0 85.6 53.6 908,208.1 175.4 242.0 171.6 372.2 64.8 NR a. Freshwater ML 472.8 375.2 85.6 53.6 908,208.1 175.4 242.0 171.6 372.2 64.0 NR
b. ‘Other’ water (>1,000 mg/L total dissloved solids) ML 131,787 991.9 - - - - - - - 0.8 NR Total water withdrawn by source ML 132,259.8 1,367.0 85.6 53.6 908,208.1 175.4 242.0 171.6 372.2 64.8 NR
a. Surface water ML - 72.0 - - 907,907.8 - - - - - NR b. Groundwater ML - 296.2 60.7 - 300.3 - - 13.4 - - NR c. Seawater ML 131,787.0 991.9 - - - - - - - - NR d. Produced water ML - - - - - - - - - 0.8 NR e. Third-party (including municipal supply) ML 472.8 7.0 24.9 53.6 - 175.4 242.0 158.2 372.2 64.0 NR
Waste Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC2 LRMC MPIC3
Total hazardous waste tonnes 1,187.2 228.0 1.2 0.2 56.8 253.7 144.7 59.9 339.4 61.3 0.0 a. Reused and Recycled tonnes 859.4 - - - - 4.7 - - - 8.9 -
b. Residual, including incinerated and landfilled tonnes 327.8 - - - - 249.1 - - 339.4 - - c. Stored Onsite tonnes - 228.0 0.0 - - - - - - - - d. Other tonnes - - 1.2 0.2 56.8 - 144.7 59.9 - 52.4 0.0 e. Not specified tonnes - - - - - - - - - -
ESG Data Summary
1: Reported Energy data only includes hospital operations in Tower 1 & 2 2: Building tenant’s residual wastes (restaurants, etc.) are inclusive of the data3: The Parent Company does not have access to data on water withdrawal and waste because these services are under the management control of the owner of the building.
Dash denotes zero NR means not reported
95
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
Power Featured Toll Roads Water Featured Hospitals Light Rail Parent Company
Total non-hazardous waste tonnes 117.2 178,039.2 477.2 6.0 59.0 329.0 185.7 292.5 797.3 115.3 NR a. Reused and Recycled tonnes 27.73 40,733.7 - 5.0 - - 23.2 - 79.7 115.3 NR
b. Residual (including incinerated, landfilled, stored on-site and other) tonnes 89.4 - 477.2 - 59.0 329.0 162.5 292.5 717.6 - NR c. Other tonnes - - - 1.0 - - - - - - NR d. Stored Onsite tonnes - 137,305.5 - - - - - - - - NR
Employee Breakdown Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPICTotal Employees Number 8.201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 Employees by type Number 8.201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56
a. Regular Number 7,865 924 1,271 107 2,169 1,475 789 989 2,874 1,355 53 b. Probationary Number 336 30 193 61 49 324 261 183 339 43 3
Employees by gender Number 8,201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 a. Female Number 2,600 190 742 75 565 1,209 731 795 2,184 466 35 b. Male Number 5,601 764 722 93 1,653 590 319 377 1,029 932 21
Employees by age Number 8,201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 a. Under 16 Number - - - - - - - - - - - b. 16 - 29 years Number 2,698 151 642 74 552 980 400 556 1,710 256 16 c. 30 to 50 years Number 4,125 617 785 81 1,203 759 580 575 1,376 901 29 d. Over 50 years Number 1,345 186 37 13 463 60 70 41 127 241 11
Employees by grade Number 8,201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 a. Senior managers Number 755 26 20 6 69 13 11 7 23 19 14 b. Middle managers Number 836 47 75 24 378 66 37 56 208 60 18 c. Supervisors Number - 423 126 24 397 228 68 47 450 289 9 d. Rank & File Number 6,577 458 1,243 114 1,374 1,313 934 1,062 2,180 1,030 15 e. Others (Residents and Fellows) Number 179 NR Not Applicable 352
Regular Employee Participation in Collective Bargaining Agreements % 53% 0% 0% 0% 72% 0% 45% 65% 45% 19% 0%
ESG Data SummaryDash denotes zero NR means not reported
Some of MERALCO’s subsidiaries were not able to classify their data by position and age
Some of MERALCO’s subsidiaries were not able to classify their data by position and age
96
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
Power Featured Toll Roads Water Featured Hospitals Light Rail Parent Company
Employee New Hires Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPICTotal New Hires of Regular Employees Number 3,560 54 259 133 131 639 425 374 685 94 6 Number of New Hires by gender 3,560 54 259 133 131 639 425 374 685 94 6
a. Female Number 952 18 143 51 41 472 307 203 516 32 5 b. Male Number 2,608 36 116 82 90 167 118 171 169 62 1
Number of New Hires by age 3,560 54 259 133 131 639 425 374 685 94 6 a. Below 30 years Number 2,121 28 235 86 98 525 228 249 499 55 3 b. 30 to 50 years Number 1,274 24 23 47 33 112 194 124 185 35 3 c. Over 50 years Number 165 2 1 - - 2 3 1 1 4 -
Total Rate of New Hires % 43% 6% 18% 79% 6% 36% 40% 32% 21% 7% 11%Rate of New Hires by gender
a. Female % 37% 9% 19% 68% 7% 39% 42% 26% 24% 7% 14%b. Male % 47% 5% 16% 88% 5% 28% 37% 45% 16% 7% 5%
Rate of New Hires by agea. Below 30 years % 79% 19% 37% 116% 18% 54% 57% 45% 29% 21% 19%b. 30 to 50 years % 31% 4% 3% 59% 3% 15% 33% 22% 13% 4% 10%c. Over 50 years % 12% 1% 3% - - 3% 4% 2% 1% 2% 0%
Employee Turnover Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPICTotal Regular Employee Turnover NumberTurnover by gender 2,238 49 143 31 84 417 416 281 607 97 6
a. Female Number 627 7 89 19 26 302 266 191 441 66 3 b. Male Number 1,611 42 54 12 58 115 150 90 166 31 3
Turnover by age 2,238 49 143 31 84 417 416 281 607 97 6 a. Below 30 years Number 1,273 9 100 21 37 270 224 166 410 24 3 b. 30 to 50 years Number 716 17 42 9 47 140 187 108 185 54 3 c. Over 50 years Number 249 23 1 1 - 7 5 7 12 19 -
Total Regular Employee Rate of Turnover % 27% 5% 10% 18% 4% 23% 40% 24% 19% 7% 11%Rate of Turnover by gender
a. Female % 24% 4% 12% 25% 5% 25% 36% 24% 20% 14% 9%b. Male % 29% 5% 7% 13% 4% 19% 47% 24% 16% 3% 14%
Rate of Turnover by agea. Below 30 years % 47% 6% 16% 28% 7% 28% 56% 30% 24% 9% 19%b. 30 to 50 years % 17% 3% 5% 11% 4% 18% 32% 19% 13% 6% 10%c. Over 50 years % 19% 12% 3% 13% - 12% 7% 17% 9% 8% 0%
ESG Data SummaryDash denotes zero NR means not reported
97
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
Power Featured Toll Roads Water Featured Hospitals Light Rail Parent Company
Employee Training Unit MERALCO1 GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPICOverall Hours of Training/Employee 34 20 13 5 40 84 29 36 23 34 18Average Hours of Training by gender
a. Female Hours 22 21 8 7 42 84 28 31 22 35 19 b. Male Hours 39 20 18 4 40 83 31 47 23 34 18
Average Hours of Training by gradea. Senior managers Hours 35 27 25 5 60 59 25 21 6 93 9 b. Middle managers Hours 31 41 73 7 69 144 32 50 16 173 18 c. Supervisors Hours 25 26 7 51 101 21 87 52 48 40 d. Rank & File Hours 33 13 8 4 28 78 29 33 21 21 15
Employee Occupational Health & Safety Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPICWorkers covered by OHSAS management systemEmployees % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Other workers % 0% 100% 100% 100% 100% 100% 0% 100% 100% 100% 0%Total fatal cases from work accidents Number - - 1 - - - - - - - - Total occupational injuries Number 74 8 5 - - 2 11 23 532 4 - Total lost working days due to injuries Number 209 - 12 - - 8 - - - 44 - Total no. of occupational diseases Number Recalibration - - - 14 - - - 10 - -
No. hours of health & safety training provided to Employees Hours 58,768 238 3,384 124 36,649 96 348 77 13,996 3,348 - Safe Man-Hours Hours 12,466,548 2,326,246 4,090,272 781,540 4,417,519 2,811,392 2,217,600 1,987,200 6,785,856 2,030,361 117,376Number of safety drills Hours 324 78 2 2 57 319 3 12 4 9 5 Hours worked 12,466,548 2,326,247 4,103,424 781,540 4,417,519 2,811,392 2,217,600 1,987,200 6,785,856 3,189,229 117,376
Service Coverage MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPICCustomers served in the year 6,882,784 32 134,580,980 61,555,353 1,453,979 271,163 328,155 57,878 1,128,365 161,346,440 - Customers served each day 6,882,784 32 368,715 168,645 1,453,979 743 899 159 3,091 442,045 -
ESG Data SummaryDash denotes zero NR means not reported
1:Overall hours of training/employees are not fully accounted for in the Average hours of training by grade because some of MERALCO’s subsidiaries were not able to classify their data by position or grade.
98
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
ENVIRONMENTAL MANAGEMENT SYSTEMSCertified Entities Certification Standard and Scope ValidityMERALCO
• MIESCOR Engineering, Procurement & Construction• MIESCOR Logistics Department
ISO 14001:2015 Valid until October 2021
MERALCO• Manila Sector• Pasig Sector• Rizal Sector• Plaridel Sector• San Pablo Sector• Santa Rosa Sector• Dasmariñas Sector• Operating Center• Parañaque Sector
ISO 14001:2015 Valid until October 2022
GBP subsidiaries • Cebu Energy Development Corporation • Panay Energy Development Corporation • Toledo Power Co. • Panay Power Corporation • GBH Power Resources Inc.
ISO 14001:2015 Environmental Management System• Power Generation
Valid until April 2020
NLEX Corp. ISO 14001:2015 Environmental Management System• Design, development, construction, operations and maintenance of toll roads
Valid until November 2021
Maynilad ISO 14001:2015 Environmental Management System• Company-wide certification for the provision of water and wastewater services
Valid until July 2021
MMC Environmental Management Bureau - DENREnvironmental Compliance Certificate - Hazardous Waste Generator IDWaste Water Discharge Permit
One time, no validityValid until May 2020
LRMC (LRT-1) ISO 14001:2015 Environmental Management System Valid until August 2020
Integrated Management System Certifications
99
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
QUALITY MANAGEMENT SYSTEMSCertified Entities Certification Standard and Scope ValidityMERALCO
• MIESCOR Engineering, Procurement & Construction • MIESCOR Logistics Department• MRAIL
ISO 9001:2015 Quality Management System• Supply Chain Management, Procurement, Materials Management, Strategic Sourcing and Vendor
Management, Supply Chain & Logistics Process & Standards
Valid until March 2021
GBP ISO 9001:2015 Quality Management System• Provision of policy direction and support services to the GBP-owned power plants
Valid until April 2020
GBP subsidiaries • Cebu Energy Development Corporation • Panay Energy Development Corporation • Toledo Power Co. • Panay Power Corporation • GBH Power Resources Inc.
ISO 9001:2015 Quality Management System• Power generation
Valid until April 2020
NLEX Corp. ISO 9001:2015 Quality Management System• Design, development, construction, operations and maintenance of toll roads
Valid until November 2021
Maynilad ISO 9001:2015 Quality Management System• Company-wide certification for the provision of water and wastewater services
Valid until July 2021
AHI Joint Commission International, Gold Seal of Approval* 1st accreditation December 2013; 2nd accreditation September
2016; 3rd accreditation September 2019 to September
2022CSMC ISO 9001:2015 Quality Management System
• Provision of health care services (Inpatient and Outpatient Services)Valid until July 2021
DDH Accreditation Canada International (“ACI”) Gold Standard* valid until July 2020MMC Joint Commission International (“JCI”), Gold Seal of Approval* Valid until November 2020LRMC
• TUV RheinlandISO 9001:2015 Quality Management System
• Operations and maintenance of LRT-1Valid until August 2020
* ACI is a Canada-based independent non-governmental organization that operates globally as an affiliate of Health Standards Organization (HSO). JCI is a US-based accreditation body that monitors the quality of medical services in more than 90 countries.
Integrated Management System Certifications
100
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEMSCertified Entities Certification Standard and Scope ValidityMERALCO
• MIESCOR Engineering, Procurement & Construction (“EPC”)
• MIESCOR Logistics Department
ISO 45001:2018 Valid until March 2022
MERALCO• Manila Sector• Pasig Sector• Rizal Sector• Plaridel Sector• San Pablo Sector• Santa Rosa Sector• Dasmariñas Sector• Operating Center• Parañaque Sector
ISO 45001:2018 Valid until June 2022
GBP subsidiaries • Cebu Energy Development Corporation • Panay Energy Development Corporation • Toledo Power Co. • Panay Power Corporation • GBH Power Resources Inc
OHSAS 18001:2007 • Power generation
Valid until April 2020
NLEX Corp. ISO 45001:2018 OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEMDQS Certification Phil. - ISO 45001:2018
• Design, development, construction, operations, & maintenance of toll roads
Valid until November 2021
Maynilad OHSAS 18001:2007 Occupational Health and Safety Management Systems • Company-wide certification for the provision of water and wastewater
services for employees • other workers are covered by the occupational health systems of the
respective contractors
Valid until March 2021
*Lifetime – refresher course is recommended by DOLE every 3 years
Integrated Management System Certifications
Additional Information• CAVITEX plans to adopt an
Integrated Management System Certification (ISO 9001, ISO 14001 and ISO 45001) ready for Certification in the first quarter of 2021.
• Aside from ISO 14001, ISO 9001and OHSAS 18001, Maynilad is certified to the following additional standards: ISO 50001 Energy Management System, ISO 20000-1 Information Technology Service Management System, ISO 14064 Greenhouse Gas Emissions, ISO 17025 Testing and Calibration Laboratories and BCMS 22301 Business Continuity.
101
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
GRI 102: GENERAL DISCLOSURES 2016
GRI Indicator Description References and RemarksOrganizational Profile
102-1 Name of the organization Profile of MPIC102-2 Activities, brands, products, and
servicesProfile of MPIC
102-3 Location of headquarters Profile of MPIC102-4 Location of operations Profile of MPIC102-5 Ownership and legal form Profile of MPIC102-6 Markets served Profile of MPIC102-7 Scale of the organization Profile of MPIC102-8 Information on employees and
other workersProfile of MPICEngaged Workforce and Safe WorkplacesPerformance Data Summary Table
102-9 Supply chain Enterprise Risk Management The supply chain for MPIC’s major operating companies consists primarily of contractors and materials suppliers for design, construction and maintenance of infrastructure projects.
102-10 Significant changes to the organization and its supply chain
There were none.
102-11 Precautionary Principle or approach
Operational Efficiency – Enterprise Risk Management (Environment)
102-12 External initiatives Annex: Integrated Management System Certifications
102-13 Memberships of associations Not applicable for MPIC Head Office. The major operating companies have memberships in their respective industries’ associations.
Strategy and Analysis
102-14 Statement from the most senior decision-maker of the organization
Leadership Message
Ethics and Integrity 102-16 Values, principles, standards and norms of behavior
Profile of MPIC
Governance 102-18 Governance structure Responsibility for ESGAnnual Report 2019 – Board of Directors (p. )
GRI Indicator Description References and RemarksStakeholder Engagement
102-40 List of stakeholder groups Value Creation102-41 Collective bargaining agreements Engaged Workforce and Safe Workplaces102-42 Identifying and selecting
stakeholdersValue Creation2016 Sustainability Report (p. 16 - 19)
102-43 Approach to stakeholder engagement
Value Creation2016 Sustainability Report (p. 16 - 19)
102-44 Key topics and concerns raised Value Creation2016 Sustainability Report (p. 16 - 19)
Reporting practice 102-45 Entities included in the consolidated financial statements
Notes 10 and 39 of MPIC’s 2019 Audited Financial Statement Schedule V of MPIC’s 2019 SEC Form 17-A (http://edge.pse.com.ph)
102-46 Defining report content and topic Boundaries.
ESG Reporting Methodology2017 Sustainability Report (p. 23); 2016 Sustainability Report (p. 20- 21)
102-47 List of material topics ESG Reporting Methodology102-48 Restatements of information ESG Reporting Methodology
Restatements have been made with regard to the following:GBP - energy sales and consumptionMaynilad - water supplied and emissions
102-49 Changes in reporting ESG Reporting Methodology102-50 Reporting period About this Report102-51 Date of most recent report About this Report102-52 Reporting cycle About this Report102-53 Contact point for questions
regarding the reportAbout this Report
102-54 Claims of reporting in accordance with GRI Standards
About this Report
102-56 External assurance About this ReportAssurance Statement
GRI Content Index
102
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
GRI 103: MANAGEMENT APPROACH 2016 & MATERIAL TOPICS (ECONOMIC)
GRI Indicator Description References and remarks
GRI 201: Economic Performance 2016
103-1 Explanation of the material topic and its Boundary
ESG Reporting Methodology
103-2 The management approach and its components
Leadership MessageInvestment Selection and Portfolio Management103-3 Evaluation of the management
approach201-1 Direct economic value generated
and distributedLeadership Message
GRI 203:Indirect Economic Impacts 2016
103-1 Explanation of the material topic and its Boundary
ESG Reporting Methodology
103-2 The management approach and its components
Profile of MPICLeadership MessageInvestment Selection and Portfolio Management
103-3 Evaluation of the management approach
203-1 Infrastructure investments and services supported
GRI 205:Anti-corruption 2016
103-1 Explanation of the material topic and its Boundary
Business Ethics
103-2 The management approach and its components
Business Ethics
103-3 Evaluation of the management approach
205-2 Communication and training on anti-corruption policies and procedures
Business Ethics
GRI 103: MANAGEMENT APPROACH 2016 & MATERIAL TOPICS (ENVIRONMENTAL)
GRI Indicator Description References and remarks
GRI 302:Energy 2016
103-1 Explanation of the material topic and its Boundary
Operational Efficiency: Energy & EmissionsESG Reporting Methodology
103-2 The management approach and its components
Responsibility for ESG Enterprise Risk Management - EnvironmentOperational Efficiency: Energy & EmissionsAnnex: Integrated Management System Certifications
103-3 Evaluation of the management approach
302-1 Energy consumption within the organization
Operational Efficiency: Energy & EmissionsESG Data Summary Table
GRI 303:Water & Effluents 2018
103-1 Explanation of the material topic and its Boundary
Operational Efficiency: WaterESG Reporting Methodology
103-2 The management approach and its components
Responsibility for ESG Enterprise Risk Management - EnvironmentOperational Efficiency: WaterAnnex: Integrated Management System Certifications
103-3 Evaluation of the management approach
303-1 Interactions with water as a shared resource
Operational Efficiency: Water
303-2 Management of water discharge-related impacts
Operational Efficiency: Water
303-3 Water withdrawal Operational Efficiency: WaterESG Data Summary Table
GRI 305:Emissions 2016
103-1 Explanation of the material topic and its Boundary
Operational Efficiency: Energy & EmissionsESG Reporting Methodology
103-2 The management approach and its components
Responsibility for ESG Enterprise Risk Management - EnvironmentOperational Efficiency: Energy & EmissionsAnnex: Integrated Management System Certifications
103-3 Evaluation of the management approach
305-1 Direct (Scope 1) GHG emissions Operational Efficiency: Energy & Emissions ESG Data Summary Table
305-2 Indirect (Scope 2) GHG emissions Operational Efficiency: Energy & Emissions ESG Data Summary Table
GRI Content Index
103
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
GRI Indicator Description References and remarks
GRI 306:Effluents and Waste 2016
103-1 Explanation of the material topic and its Boundary
Operational Efficiency: WasteESG Reporting Methodology
103-2 The management approach and its components
Responsibility for ESG Enterprise Risk Management - EnvironmentOperational Efficiency: WasteAnnex: Integrated Management System Certifications
103-3 Evaluation of the management approach
306-2 Waste by type and disposal method
Operational Efficiency: WasteESG Data Summary Table
GRI 307:Environmental Compliance 2016
103-1 Explanation of the material topic and its Boundary
Responsibility for ESG ESG Reporting Methodology
103-2 The management approach and its components
Responsibility for ESG Enterprise Risk Management – EnvironmentAnnex: Integrated Management System Certifications
103-3 Evaluation of the management approach
307-1 Non-compliance with environmental laws and regulations
Responsibility for ESG
GRI 103: MANAGEMENT APPROACH 2016 & MATERIAL TOPICS (SOCIAL)
GRI Indicator Description References and remarks
GRI 401:Employment 2016
103-1 Explanation of the material topic and its Boundary
Engaged Workforce and Safe Workplaces: Employment ProfileESG Reporting Methodology
103-2 The management approach and its components
Engaged Workforce and Safe Workplaces: Employment Profile
103-3 Evaluation of the management approach
401-1 New employee hires and employee turnover
Engaged Workforce and Safe Workplaces: Employment ProfileESG Data Summary Table
GRI Indicator Description References and remarks
GRI 403:Occupational Health and Safety 2018
103-1 Explanation of the material topic and its Boundary
Engaged Workforce and Safe Workplaces: OHSESG Reporting Methodology
103-2 The management approach and its components
Engaged Workforce and Safe Workplaces: OHS
103-3 Evaluation of the management approach
403-1 Occupational health & safety management system
Engaged Workforce and Safe Workplaces: OHSAnnex: Integrated Management System Certifications403-2 Hazard identification, risk
assessment, and incident investigation
403-3 Occupational health services403-4 Worker participation,
consultation, and communication on occupational health and safety
403-5 Worker training on occupational health and safety
403-6 Promotion of worker health 403-7 Prevention and mitigation of
occupational health and safety impacts directly linked by business relationships
403-8 Workers covered by an occupational health & safety management system
GRI 404:Training and Education 2016
103-1 Explanation of the material topic and its Boundary
Engaged Workforce and Safe Workplaces: Traning & DevelopmentESG Reporting Methodology
103-2 The management approach and its components
Engaged Workforce and Safe Workplaces: Training & Development
103-3 Evaluation of the management approach
404-1 Average hours of training per year per employee
Engaged Workforce and Safe Workplaces: Traning & Development ESG Data Summary Table
GRI Content Index
104
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
GRI Indicator Description References and remarks
GRI 405:Diversity and Equal Opportunity 2016
103-1 Explanation of the material topic and its Boundary
Engaged Workforce and Safe Workplaces: Employment ProfileESG Reporting Methodology
103-2 The management approach and its components
Engaged Workforce and Safe Workplaces: Employment Profile
103-3 Evaluation of the management approach
405-1 Diversity of governance bodies and employees
Board of DirectorsEngaged Workforce and Safe Workplaces: Employment ProfileESG Data Summary Table
GRI Indicator Description References and remarks
GRI 413:
Local Communities 2016
103-1 Explanation of the material topic and its Boundary
Social Responsibility: Community Engagement
ESG Reporting Methodology103-2 The management approach and
its componentsSocial Responsibility: Community Engagement
103-3 Evaluation of the management approach
413-1 Operations with local community engagement, impact assessments, and development programs
Social Responsibility: Community Engagement
GRI 416:
Customer Health and Safety 2016
103-1 Explanation of the material topic and its Boundary
Service Exellence: Service Continuity
ESG Reporting Methodology103-2 The management approach and
its componentsService Excellence: Introduction
Service Excellence: Service Continuity
Annex: Integrated Management System Certifications
103-3 Evaluation of the management approach
416-1 Assessment of the health and safety impacts of product and service categories
Service Excellence: Service Continuity
GRI Indicator Description References and remarks
GRI 419:
Socioeconomic Compliance 2016
103-1 Explanation of the material topic and its Boundary
Responsibility for ESG
ESG Reporting Methodology103-2 The management approach and
its componentsResponsibility for ESG
Annex: Integrated Management System Certifications103-3 Evaluation of the management
approach419-1 Non-compliance with laws and
regulations in the social and economic area
Responsibility for ESG
GRI Content Index
105
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
Introduction Metro Pacific Investment Corporation (“MPIC”, Securities and Exchange Commission (SEC) Identification Number: CS200604494) commissioned DNV GL Business Assurance Philippines Branch (“DNV GL”), part of the DNV GL Group to undertake independent assurance of sustainability/non-financial disclosures in MPIC’s 2019 Sustainability Report (‘the Report’) for the year ending 31st December 2019.
This assurance engagement was planned and carried out using AccountAbility’s AA1000 Assurance Standard 2008 (“AA1000AS”) and DNV GL’s assurance methodology VeriSustainTM1 (Version 5.0) which is based on our professional experience, international assurance best practice including the International Standard on Assurance Engagement 3000 (“ISAE3000”) Revised2 and the Global Reporting Initiative’s (“GRI”) Principles for Defining Report Content and Quality.
Scope and Boundary of Assurance The scope of assurance included a review of sustainability disclosures and performance data from MPIC and its operating companies including Manila Electric Company (“MERALCO”), Global Business Power Corporation (“GBP”), Maynilad Water Services, Inc. (“Maynilad”), featured toll roads of Metro Pacific Tollways Corporation (“MPTC”), featured hospitals of Metro Pacific Hospital Holdings, Inc. (“MPHHI”) and Light Rail Manila Corporation (“LRMC”).
The boundary of the Report for identified material topics and topic-specific disclosures is set out in the sections:”About This 1 The VeriSustain protocol is available on request from www.dnvgl.com.
2 Assurance Engagements other than Audits or Reviews of Historical Financial Information
Independent Assurance StatementReport”, ‘Materiality’ and ‘Environment Social and Governance
(‘ESG’) Reporting Methodology’. We evaluated the Report for adherence to the reporting principles for defining the sustainability report content as set forth in the GRI’s Sustainability Reporting Standards (‘GRI Standards’) along with AA1000AS. We understand that the reported financial data and information are based on MPIC’s Annual Report3 and financial statements which are subject to a separate independent audit process. The review of financial data taken from the audited financial statements is not within the scope of our work.
Responsibilities of MPIC and of the Assurance ProviderThe Board of MPIC has sole responsibility for the integrity of the Report and this responsibility includes designing, implementing and maintaining internal controls over collection, analysis, aggregation and preparation of data, fair presentation of the information, and ensuring that data is free from material misstatement and maintaining the integrity of their website under digital domain. DNV GL expressly disclaims any liability or co-responsibility for any decision a person or an entity may make based on this Assurance Statement.
In performing our assurance work, DNV GL’s responsibility is solely towards the Management of MPIC in accordance with terms of reference agreed, however this assurance statement represents our independent opinion and is intended to enlighten MPIC’s stakeholders. DNV GL’s responsibility is to form an independent conclusion. In doing so, we carried out the sampling procedures required for the evidence for Type 2, Moderate level of assurance based on AA1000AS i.e. DNV GL
3 Available on http://edge.pse.com.ph/
is responsible for planning and performing the engagement to obtain assurance about whether the selected information is free from material misstatement and meets the disclosure requirements.
Basis of our OpinionA multi-disciplinary team of sustainability and assurance specialists performed the work at MPIC’s headquarters in Makati City and its business units in the Philippines, during March 2020 to test the accuracy and reliability of qualitative and quantitative disclosures including the reported data and the robustness of the data aggregation process including related management approach for identified material topics.
As part of the verification, we planned and performed our work based on DNV GL’s Risk Based Approach to obtain the evidence that we considered necessary to provide a basis for our assurance opinion. Within the framework of our assessment, we performed the following procedures and other activities:
• conducted interviews with data owners from MPIC and its subsidiaries to understand the key processes and controls for reporting business units’ performance data;
• assessed the robustness of the underlying data and information flow and controls;
• performed data analysis using a risk-based approach and materiality;
• challenged the sustainability-related disclosures, statements and claims;
• performed limited testing on a sampling basis of the selected information at MPIC’s Headquarters and
operating companies’ headquarters and to check that the selected environmental and social data had been properly measured, gathered, recorded, collated and reported; and,
• Reviewed the qualitative and quantitative disclosures at headquarters and visited sample sites of operating companies including Metro Pacific Tollways Corporation’s - NLEX Head Office and Traffic Control Center (MPTC) in Caloocan City; Cebu Energy Development Corporation and Toledo Power Company (GBP) in Toledo City, Cebu; Makati Medical Center (a subsidiary of MPHHI) in Makati; and Maynilad Head Office and La Mesa Treatment Plants 1 and 2 (Maynilad) in Quezon City.
We also performed the following activities to assess the adherence to reporting principles:
• interviewed the senior managers and representatives responsible for sustainability management and made enquiries to determine their understanding of process of stakeholder engagement and materiality assessment; and,
• reviewed the current sustainability issues that could affect MPIC and could be of interest to stakeholders of MPIC.
ConclusionBased on the verification undertaken, nothing has come to our attention that causes us to believe that the reported disclosures i.e. sustainability performance data and information disclosed in the Report does not give a fair representation of MPIC’s related sustainability performance. Without affecting our assurance opinion, we also provide the following observations:
106
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
AA1000 Accountability Standard (2008)InclusivityThe participation of stakeholders in developing and achieving an
accountable and strategic response to Sustainability
Nothing has come to our attention to suggest that the Report does not meet the requirements related to the Principle of Inclusivity. Report has articulated the process adopted by MPIC and the operating companies engage on a regular basis with the identified stakeholders through various channels to identify emerging sustainability concerns and expectations. The Report has articulated the concerns of key stakeholders and identified stakeholder concerns are responded to within the Report through explanations of the value delivered to the stakeholders.
MaterialityThe process of determining the issues that is most relevant to an
organization and its stakeholders
Nothing has come to our attention to suggest that the Report does not meet the requirements related to the Principle of Materiality.The Report describes the process adopted by MPIC for materiality assessment and identifying material issues. The process considered inputs from operating companies including concerns of key stakeholders and impacts of material issues on key stakeholders at group level and business environment for the reporting period. As part of
assurance, we have reviewed the claims related to materiality with MPIC team to revalidate that there is no change in the list of Material topics compared to last year. It is suggested that MPIC may consider review of its materiality and includes issues material in its supply chain.
ResponsivenessThe extent to which an organization responds to stakeholder
issues
Nothing has come to our attention to suggest that the Report does not meet the requirements related to the Principle of Responsiveness.The Report fairly brings out MPIC’s strategies and management approaches related to identified key material topics including key policies, management systems and governance mechanisms based on reporting requirements of GRI Standards 2016. Reporting entities have established both formal and informal processes to report disclosures based on GRI Standards’ Reporting Principles and the requirements stated in GRI Standards. However, it would be good to further strengthen the disclosures related to Supply Chain.
Specific Evaluation of the Information on Sustainability PerformanceWe consider both the methodology and processes adopted by MPIC for gathering qualitative and quantitative information on its sustainability performance to be appropriate and the performance data included in the Report was found to be
Independent Assurance Statementidentifiable and traceable; the personnel responsible could demonstrate the origin and interpretation of the data and its reliability. Nothing has come to our attention to suggest that the Report does not present a faithful description of the reported sustainability disclosures for the reporting period.
ReliabilityThe accuracy and comparability of information presented
in the report, as well as the quality of underlying data
management systems
Nothing has come to our attention to suggest that the Report does not meet the requirements related to the Principle of Reliability.The Report has disclosed MPIC’s sustainability performance related to material topics using selected GRI Topic Specific Standards. The majority of data and information verified at the Head Office and sampled sites were found to be accurate. Some of the data inaccuracies identified during the verification process were found to be attributable to transcription, interpretation and aggregation errors. These identified errors were communicated through a formal report and responses from MPIC were reviewed including corrections that were made to the reported data and information.
Additional Principles as per DNV GL VeriSustainCompletenessHow much of all the information that has been identified as
material to the organisation and its stakeholders is reported.
Nothing has come to our attention to suggest that the Report does not meet the requirements related to the Principle of Completeness.The Report has fairly brought out the disclosures as per the requirements of selected GRI Topic Specific Standards i.e. strategy, management approach, monitoring systems and sustainability performance indicators considering the boundary of its reporting covering MPIC’s operations in the Philippines.
NeutralityThe extent to which a report provides a balanced account of an
organization’s performance, delivered in a neutral tone.
Nothing has come to our attention to suggest that the Report does not meet the requirements related to the Principle of Neutrality.The Report discloses sustainability performance for the identified material topics in a fairly neutral tone, in terms of content and presentation, and has also considered the sustainability context and external environment while presenting its sustainability performance for the reporting period.
LimitationsOur assurance relies on the premise that the data and information provided by MPIC to us as part of our review procedures have been provided in good faith and free from misstatements. Because of the selected nature (sampling) and other inherent limitation of both procedures and
107
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
Independent Assurance Statementsystems of internal control, there remains the unavoidable risk that errors or irregularities, possibly significant, may not have been detected. The engagement excludes the sustainability management, performance and reporting practices of MPIC’s suppliers, contractors and any third-parties mentioned in the Report. The company’s position statement, statements about the management approach, and case studies and examples are excluded from the scope of our work. We did not interview external stakeholders as part of this assurance engagement.
The reported disclosures related to economic performance are based on financial disclosures and data, which were cross-checked with internal documents and the audited consolidated financial statements.
As per our agreed scope of engagement, limited depth of evidence gathering including inquiry and analytical procedures and limited sampling were applied as per DNV GL’s VeriSustain. The data for Environmental and Social performance were verified with random samples and the aggregated data at the head office level are used for the verification.
Statement of Competence and Independence DNV GL applies its own management standards and compliance policies for quality control, in accordance with ISO IEC 17021:2015 - Conformity Assessment Requirements for bodies providing audit and certification of management systems, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
We have complied with the DNV GL Code of Conduct4 during the assurance engagement and maintain independence where required by relevant ethical requirements. This engagement work was carried out by an independent team of sustainability assurance professionals. DNV GL was not involved in the preparation of any statements or data included in the Report except for this Assurance Statement. DNV GL maintains complete impartiality toward stakeholders interviewed during the assurance process. DNV GL did not provide any services to MPIC and its subsidiaries in the scope of assurance during 2019 that could compromise the independence or impartiality of our work.
4 The DNV GL Code of Conduct is available from DNV GL website (www.dnvgl.com)
For and on behalf of DNV GL AS 23rd March 2020, Philippines
Vadakepatth Nandkumar Lead Verifier,Head - Sustainability Operations, DNV GL – Business Assurance India Private Limited.
Heng Chwin MakOperations Manager – South East Asia DNV GL Technology Centre. Singapore 118227
Prasun KunduAssurance Reviewer,DNV GL – Business Assurance India Private Limited.
-----------------------------------------------------------------------------------------------------------------------------------DNV GL Business Assurance AS Philippines Branch is part of DNV GL – Business Assurance, a global provider of certification, verification,
assessment and training services, helping customers to build sustainable business performance. www.dnvgl.com
108
About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex
ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement
Metro Pacific Investments Corporation 10/F MGO Building, Legaspi corner Dela Rosa Streets,
Makati City, 0721, Philippines +63 2 8888 0888
www.mpic.com.ph