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TOOLS & BEST PRACTICES
The Importance of Materiality Testing & DMA in Sustainability Reporting




                                                           Agnes C. de Jesus
                                         SVP for Environment & External Relations
                                                          and Compliance Officer
PRESENTATION OUTLINE
     COMPANY PROFILE
          Nature of Business
          Communicating with Stakeholders
          Path to Sustainability
     THE PROCESS BEHIND THE STORY
          Stakeholder Mapping
          Materiality
          Management Approach
     WRITING THE REPORT
          Storytelling Technique
          Multi-level Communication
ABOUT US
   Origin and history | Nature of business | The path to sustainability
EDC WAS BORN OUT OF THE 1970’S OIL CRISIS PAVING THE
WAY FOR THE COUNTRY’S SHIFT TO RENEWABLE ENERGY




                                                 1970s
                                                 Leyte,




                                                          4
TODAY, EDC IS A VERTICALLY INTEGRATED RENEWABLE ENERGY
COMPANY WITH OPERATIONS LOCATED ACROSS THE COUNTRY

  INTEGRATED STEAMFIELD        LUZON                            STEAMFIELD (EDC) AND
     AND POWER PLANT                        FGHPC (60%)          POWER PLANT (EDC
                                                                    SUBSIDIARY)
                                         120 MW Pantabangan
                                           12.5MW Masiway
           Leyte             Manila
                                                                        Bacman
  125MW Upper Mahiao
   232.5MW Malitbog                                                 110MW Bacman I
  180MW Mahanagdong                                                 20MW Bacman II
   50MW Optimization

                                                                         Leyte
    Northern Negros
                                       VISAYAS                     112.5MW Tongonan I
  49MW Northern Negros
   (Impaired in July 2011)
                                                                    Southern Negros
        Mindanao
                                                                  112.5MW Palinpinon I
    52MW Mindanao I                                                80MW Palinpinon II
    54MW Mindanao II
                                           MINDANAO


                                                              1,130 MW geothermal
                                                                132 MW hydro
                                                                                         5
THEN & NOW, EDC„S RENEWABLE ENERGY PROJECTS SUPPORT
THE ECONOMIC & ENVIRONMENTAL GOALS OF THE PHILIPPINES


          EDC is Purely Renewable
          • 65% of the Philippines’ installed geothermal power capacity
          • 14% of the Philippines’ total power generation



           Substantial Country Contribution
          • Displaced 114M barrels of oil import (P240 B savings)
          • Social projects of P 2 B since 1987
          • Paid P 34.5B taxes and fees to the government since 1983


          Lower Carbon Emissions
          Avoids 5.2 M tons of C/yr of operation to mitigate climate change
          Between 85-92% lower than in grids where EDC operates:
          • Visayas Grid: 0.21 CO2 ton/MWh    vs. EDC Visayas: 0.03 CO2 ton/MWh
          • Mindanao Grid: 0.28 CO2 ton/MWh   vs. EDC Mindanao: 0.02 CO2 ton/MWh
BEING SITE SPECIFIC, GEOTHERMAL & HYDRO PROJECTS ARE LOCATED
IN VERY REMOTE AND FORESTED AREAS – 5 SITES ARE IN 8 KEY
BIODIVERSITY AREAS OF THE COUNTRY




                                                          7
EDC’S VALUE CHAIN LINKS THE 6 VITAL ASPECTS OF THE BUSINESS‟
OPERATION – FROM DEVELOPING THE NATURAL RESOURCE BASE TO
ENGAGING STAKEHOLDER GROUPS




                 Water Table




              Geothermal Reservoir




                                            Magma
EDC PROCESSES FOLLOW THE REGENERATIVE CYCLE OF GEOTHERMAL
RESOURCE THEREBY HARMONIZING TECHNOLOGY, PEOPLE AND NATURE

                                                 Renewable energy technology
                                              Wet steam utilization, zero discharge system,
                                       fluid collection & recycling system, efficient power plants


Comprehensive environmental management
    Waste management, watershed, biodiversity,                                              Stakeholder Engagement
             climate change action                                                         Customers, Investors, Regulatory
                                                                                                       Bodies


Comprehensive Environmental Management Program
                                                        Fluid Collection & Recycling System
        5.2 M tons
       sequestered CO2                                             1,130MW
     84,839 hectares                                              Steamfields
       land protected                                            Power Plants
      7,623 hectares
      reforested in 2011




             Stakeholder Engagement
          Employee development, CSR for 18,000
                      households
EDC HAS EVOLVED INTO A RESPONSIBLE ENERGY COMPANY – FROM THE 1970’S
 WHEN IT STARTED FOCUSING ON ENVIRONMENTAL MONITORING TO THE PRESENT
 WHERE IT ADOPTS THE INTEGRATED SUSTAINABILITY APPROACH

Philippine‟s evolution

  Charity /     Dawning of     Community         Corporate          Integrative
  Donations       NGOs          Relations        Citizenship            CSR




                Environment   Environmental     Environmental       Best-in-class
EDC‟s path       Monitoring    Management        Management       operating systems

                              Watershed Mgt/    Watershed Mgt/    Envi/Watershed/
                              Social Forestry   Social Forestry    Social Forestry
                                  (1983)
                                Community                         CSR/Community
                                                   Expanded
                                 Relations                          Partnerships
                                                    ComRel
                                  (1987)                               (2005)
                                                                   Climate Change
                                                                       Action
                                                                                    10
                                                                       (2009)
AFTER ITS PRIVATIZATION IN 2007, EDC SHIFTED ITS PARADIGM
   TOWARDS A MORE STRATEGIC APPROACH AS IT PREPARES TO
   COMPETE IN THE GLOBAL ENERGY MARKET

EDC was acquired by the Lopez Group through First Gen Corporation in November 2007

 Government Corporation Outlook                  Lopez Company Outlook
Industrial peace                        Industrial peace + Employee lifelong wellness

                                        Company reputation & contribution to the
Contribution to the country
                                        country

                                        • Recover & Re-allocate
• Sunk cost
                                          (Effective resource management)
• Allocate & spend budget
                                        • Strategic (Low input, high impact)


Dole-out                                Sustainable (financial & program sustainability)

                                        Geothermal block & focused on primary
Entire geothermal reservation
                                        partner communities
                                                                                    11
WITH ITS COMPLIANCE TO 250 LAWS/ORDINANCES AND
ADHERENCE TO MAJOR INTERNATIONAL CONVENTIONS,
EDC HAS STRENGTHENED ITS ACCOUNTABILITY MEASURES

CORPORATION          ENERGY LAWS            ENVIRONMENT              HEALTH &
   LAWS                                         LAWS                SAFETY LAWS
                     - POWER
                       REFORM                - POLLUTION           - ENERGY HSE
- SECURITIES
  & EXCHANGE         - RENEWABLE             - FORESTRY            - HEALTH CODE
                       ENERGY
- PHIL. STOCK                                - WATER               - OCCUPATIONAL
  EXCHANGE           - ENERGY                                        SAFETY &
                       BENEFITS                CODE
                                                                     HEALTH
- CORP. GOV .        - GRID CODE
                                                           INTERNATIONAL
         TAX LAWS              SOCIAL LAWS                 CONVENTIONS
                                                             - Atmosphere
       - LOCAL                 - INDIGENOUS                  - Biodiversity
         GOVT.CODE                 PEOPLES
                               -   LGU BENEFITS
                                                             - Chemicals
       - REVENUE               -   AGRARIAN
                                                             - Land
         CODE                      REFORM                    - Culture
                               -   RELOCATION              IFC-WORLD BANK
                               -   LABOR                     - Environmental
                                                               and Social
                                                               Safeguards
Stakeholder communication strategy
Sustainability Management




     is a key word in the corporate
       strategy of the 21st century
Whom & what to communicate?
WHAT USUALLY HAPPENS:

   COMPANIES PROPOSE INITIATIVES TO
   BECOME SUSTAINABLE
WHAT USUALLY HAPPENS:

   THEN THEY SHARE THE INFORMATION
   TO THEIR STAKEHOLDERS
WHEN IN FACT IT SHOULD BE CONDUCTED THE
OTHER WAY AROUND
FIRST, GET TO KNOW WHAT STAKEHOLDERS WANT TO
CHANGE ABOUT YOUR COMPANY PERFORMANCE
BRING THAT CHANGE PROCESS INTO THE CORPORATE
STRATEGY AND CULTURE
WHICH WILL LEAD TO DIFFERENT RESOLUTIONS THAT
CAN BENEFIT BOTH THE COMPANY & ITS STAKEHOLDERS
THEREFORE, INVOLVING THE STAKEHOLDERS IS THE
STARTING POINT
the storY BEHIND THE PROCESS
      Stakeholder Mapping | Materiality Principle | Management Approach
EDC’S INTEGRATED SUSTAINABILITY REPORTING IS A RIGOROUS
PROCESS THAT HEAVILY INVOLVES STAKEHOLDER CONSULTATIONS &
MANAGEMENT STRATEGY


          SUSTAINABILITY REPORTING
                      =
                 STAKEHOLDER ENGAGEMENT
                             +
                STRATEGIC COMMUNICATIONS



         Materiality Principle & Management Approach
THE GLOSSY COPY IS MERELY THE OUTPUT OF AN EXTENSIVE
UNDERLYING EFFORT THAT PRECEDES IT



                     The predominant value lies in the preparation:

                         • The selection of metrics (the use of GRI EUSS for
                           instance)

                         • The analysis of the business impacts and risks
                           (aligning with balanced score card, risk
                           management and business continuity)

                         • The gained insights to understand and improve
                           performance (evaluation & feedback from
                           previous report)
Mount Apo: Precursor of Stakeholder Engagement, 1988-1992
                                                       27
STAKEHOLDERS ARE CONSULTED BEFORE PROJECT CONSTRUCTION

  STAKEHOLDER                     PARTICIPANTS
                6 Senate Committees
LEGISLATURE
                3 House Committees
EXECUTIVE       10 Government Agencies
                Region XI
RDC
                Region XII
                9 LGUs
LGU
                (1 Province, 1 City ,3 Towns, 4 Barangays)
                5 Protestant Sects
RELIGIOUS
                1 Catholic Diocese
ACADEME         14 (Manila-Davao-Cotabato)
NGOs            15 (International-Manila-Davao-Cotabato)
BUSINESS        2 Regions
TOTAL:          67
OUR MOUNT APO PROJECT EXPERIENCE IN 1990 SERVED AS A
CATALYST – IT TAUGHT US ABOUT THE SOCIAL ACCEPTABILITY PROCESS
(GRI DID NOT EXIST YET THEN)


   Being an ancestral domain, consent of the indigenous people (IP) was secured
    in November 1990 and a ritual was performed in April 1992 prior to
    project operation and IPRA of 1997

   That the geothermal project can coexist with the IPs in Mount Apo based on the
    common goal of protecting the forest for the water-based project and ancestral
    domain of the IPs

   That IPs have the right to benefit from the geothermal project (Mount Apo Tribal
     Welfare Trust Fund in 1997 upon operation)
MANY CONSULTATIONS WERE HELD – A TRIBAL RITUAL WAS
EVEN PERFORMED FOR IP CONSENT




   Pamaas Ritual (April 10, 1992)
EDC SIGNED A MOA WITH LGUS, IPS AND NGOS FOR THE
PROTECTION OF MOUNT APO AND BENEFITS TO IPS IN 1993


The Mount Apo Foundation, Inc.
was formed with IPs in the Board
of Trustees
THE RICH EXPERIENCE WE HAD IN THE PRE-SUSTAINABILITY REPORTING YEARS
PROVIDES US WITH A WEALTH OF INSIGHTS ON STAKEHOLDER ENGAGEMENT &
MATERIALITY TESTING, BOTH CRITICAL TO OUR REPORTING PROCESS TODAY




 Multisectoral agreement paved the way for the permission to operate the Mindanao geothermal power projects
 BY 1990 WE NEEDED TO BE STAKEHOLDER-RESPONSIVE EVEN BEFORE WE ADOPTED GRI


                                                                                                        32
WE IDENTIFY OUR STAKEHOLDERS AND REGULARLY UPDATE THE
STAKEHOLDER MAP – THE “KNOWING” PART OF THE PROCESS
      Employee Council (Non-organized
                           employees)
  Expanded Labor-Management Council                                       Social Acceptability Surveys
                                                          Host            24/7 interaction through site CSR units
                   Town Hall meetings
                                           Employees   Communities        Public Consultations
                              Surveys
        Occupational Health and Safety
                          Committees
              Performance discussions

From this universe of stakeholders, we were able to identify 31 priority groups after
      the stakeholder inclusiveness workshop using the GRI EUSS Framework with
                                                                         Direct contact
                                                                                                sales
  Stockholders’ Meeting                                                                         Marketing
  Analyst and Investors’                                                                        roadshows
                            Shareholders                                    Customers
               Briefings                                                                        Customer
        Annual Reports                                                                          satisfaction survey
            Disclosures




         Compliance with requirements                                         Direct contacts
                       Working groups                                         Vendor orientations
 Policy advocacy/government relations                         Business        Accreditation
      Networking industry associations      Public            Partners
                                            Sector           Suppliers/
                                                            Contractors


                                                                                                             33
STAKEHOLDERS ARE IDENTIFIED BASED ON LOCATION, CONDITION ,
    FUNCTION, AND/OR INTERESTS, MAY AFFECT OR BE AFFECTED BY
    COMPANY OPERATIONS

                PRIMARY                                      SECONDARY                                  TERTIARY/PERIODIC
--------------------------------------------   ---------------------------------------------   ---------------------------------------------
Those stakeholders whose activities            Those stakeholders not primary but              Those stakeholders with whom active
may impact on or be impacted on by             have proximal relation/ no direct link          contact is not necessary. Attention
the project operation and thus need            to immediate company operations.                will be determined by mutual need,
continuous nurturing of relationship;          Their activities may however indicate           enhancing of ties with primary/
whose continuous support is                    emerging directions or concerns                 secondary stakeholders for resolution
necessary for the unhampered                   which the company may need to be                of issues.
operation of the company.                      alert on and attend to in a strategic
                                               manner.

INDIVIDUAL HOUSEHOLDS:                          INDIVIDUAL HOUSEHOLDS                          INDIVIDUAL HOUSEHOLDS
1) 1st Layer Community (Host Barangay,          1) 2nd Layer Community                         1) Targeted Community (with special
   Along Access to Project Sites, Primary          (adjoining barangay, host                      interest to the company)
   Impact Areas)                                   municipality/city, secondary impact         ORGANIZED GROUPS
AGENCIES AND ORGANIZATIONS:                        areas)                                      1) Host Province
1) Government Agencies (DENR, DOH, DOLE,        ORGANIZED GROUPS                               2) Non-Government Organization
   PAMB)                                        1) Other Government Agencies not in the        3) Academe
2) Media (local and national)                      Primary List
3) Utilities (Water Districts, Electric                                                        4) Other Industries not in the Primary and
                                                2) Senate and House of Representatives            Secondary List
   Cooperatives)
4) BOT Contractor                                                                              5) Church and other Religious Groups
5) NPC
6) Contractors
                                                                                                                                  34
FOR INSTANCE, WE MAPPED OUT AND PRIORITIZED 44 PRIMARY
PARTNER COMMUNITIES ACROSS FIVE (5) SITES




            LEYTE                    SO. NEGROS                BACON-MANITO
          16 Villages
                             17,680
                             10 Villages                         10 Villages
          (5,011 HH)
                          HOUSEHOLDS
                             (2,537 HH)                          (4,059 HH)




                        MT. APO               NO. NEGROS
                                               2 Villages
                        7 Villages
                                                  (3,118 HH)
                        (2,955 HH)
WE DO A COMPREHENSIVE ASSESSMENT OF OUR IMPACTS ACROSS THE
BUSINESS VALUE CHAIN AS KEY TAKEAWAY FROM OUR MOUNT APO
EXPERIENCE – THIS IS THE “MONITORING” PART OF THE PROCESS


                             Determining key issues and impacts


Part I. EDC Business Footprint Profile                              Part II. Local Issues
                                                                    Part III. National Issues
Business Component                     Level of Impact:             Part IV. Global Issues
  - Raw materials (25%)                Environment
  - Process (15%)                         -Land
                                                                     a. Poverty (overpopulation,
  - Product (10%)                         -Water                     unemployment, access to
  - Waste (25%)                           - Air                      basic social services) or MDG
  - Operational Env’t. (25%)           Community                     b. Climate Change



Specific CSR/sustainability initiatives are prioritized based on 1)Total weighted score; 2) Business
components affecting the environment & people; and 3) Product/customer type
THE ASSESSMENT REVEALS OUR POTENTIAL IMPACTS ON LAND, WATER AND
 COMMUNITY, HENCE EFFORTS TO PRESERVE THE ENVIRONMENT AND HELP
 COMMUNITIES ARE TO BE REFLECTED IN THE REPORT


                            Snapshots of our impact




Earthworks are   Wastes are fully   During well         EDC reinjects        Project sites are
benched to       contained          testing, water      wastewaters          reforested for
correct slope    during drilling    and air samples     back to its origin   recharge of the
and replanted    via lined ponds    are collected to    for renewability     geothermal
                                    profile potential                        reservoir
                                    wastes
STAKEHOLDER CONSULTATIONS ARE CONDUCTED TO LOOK INTO OTHER
CONCERNS AND ISSUES THAT WILL BE ADDED TO THE MATRIX OF
MATERIAL TOPICS – THIS IS THE “ENGAGING” PART OF THE PROCESS
                    Regular and
                      Sustained
                    Engagement

                 Public
               Hearings

Consultation and
    Focus Group
     Discussions

Information                       A comprehensive social engagement
      Drive                       process made possible our
                                  groundbreaking initiatives
                                  Note: EDC‟s technical working group has
                                  completed consultations in the 5
                                  geothermal sites and 1 at the head office –
                                  a total of 300 stakeholders were consulted
                                  for this year‟s round of reporting
WE LISTEN TO THE VOICE OF THE PEOPLE IN OUR COMMUNITIES:
WE CONDUCT SOCIAL SURVEYS, AN INNOVATION TO THE
CONSULTATION PROCESS
         2010 SA: Appreciation for & Willingness to Support
                       EDC and CSR Project
 100%

 90%
                                                    80% = Acceptable Performance
 80%

 70%

 60%
                                                                                             0-54% LOW
 50%
                                                                                             55-89% MEDIUM
                                                                                             56-100% HIGH
 40%

 30%

 20%

 10%

  0%
           BGPF               LGPF               MGPF             NNGPF              SNGPF

        % Appreciation for & Willingness to support EDC     % Appreciation for CSR Project




                                                                                                     40
KNOWING WHAT THE STAKEHOLDERS‟ CONCERNS ARE MAKES US
MORE RESPONSIVE TO THEIR NEEDS

           91%
  100%              82%
   90%                       72%
   80%                                 66%     65%
                                                         61%     58%
   70%
   60%
   50%
   40%
   30%
   20%
   10%
    0%




 EDUCATION (91%) & HEALTH (82%) ARE THE MOST APPRECIATED CSR PROJECTS.
                                                                         41
Material to Stakeholders




                           42
THESE TOPICS WERE IDENTIFIED AS MATERIAL IN THE 2011 REPORT
                                                                                                           •Viability of new projects/business
                                                                                                           expansion
                                                                                                           •Action on climate change
                                                                                                           •Human capital (workforce)
                                                                                                           development
Level of Concern to Stakeholder




                                                                                                           •Partnerships for provision of
                                                                                                           education, livelihood and health
                                                                                                           services
                                                                      •Affordable electricity
                                                                      •Business and employment
                                                                      opportunities for local residents
                                                                      •Local infrastructure
                                                                      development
                                                                      •Enforcing of safety practices for
                                                                      employees and contractors
                                  •Maintaining good water and air
                                  quality
                                  •More job opportunities for women
                                  and the vulnerable
                                  •Livelihood for minority people
                                  •Environmental literacy among
                                  employees and host communities
DENUDED AREAS ARE REFORESTED TO CONTRIBUTE TO
    ECOSYSTEM SERVICES FOR COMMUNITIES AND EDC

                  YR. 1989-2008
    8,000,000
                AREA         : 7,623 HAS.
    7,000,000   NO. of TREES : 7.5M

    6,000,000

    5,000,000                                               Rehab habitat                  Livelihood for
                                                            fragmentation                  forest dwellers
    4,000,000                                               for wildlife corridor
    3,000,000

    2,000,000
                                                 Tree for                           Tree for
    1,000,000                                       Life                              Food
           0




BINHI PROGRAM (2009-present) : 1,000 has. /yr.                     Develop
                                                                                                 Conserving
                                                                                                 genome & for
using indigenous and rare species for:                             ecotourism
                                                                                                 future mother
                                                                   sites
                                                                                                 trees
   - geothermal recharge
                                                     Tree for                           Tree for
   - carbon storage for climate change                Leisure                          the Future

   - restoring local biodiversity                                                                       44
EDC IS STARTING TO MEASURE ITS CARBON FOOT PRINT ACROSS
THE OPERATION AS REFERENCE TO REDUCE EMISSION AND
ENERGY SAVINGS


                                               Energy
                                              Efficiency
                                           efforts in 2009-
                                                 2010
                                             Pipe Insulation

                                           Emissions Testing
                                           In-house
                                           Thermographic
                                           Inspection Services
                                 6.2 GWh
                       5.4 GWh             Electrical Testing
     4.2 GWh 4.8 GWh                       of Rigs

                                           Office savings

                                                       Source: ERDD 2011
AS EDC PROTECTS ITS GEOTHERMAL PROJECTS FROM EXTREME
WEATHER EVENTS, THE MEASURES ALSO COVER THE INTEGRITY
OF COMMUNITIES AND THEIR LIVELIHOOD


                                                                               Ondoy (2009)



    Caloy (2006)
    Frank (2008              Pantabangan (132 MW)                                                 Caloy (2006)
                                                              Bacman Project (130MW)
                                                                                                 MIlenyo (2006)
                                                                                                 Reming (2006)
                                                                                                  Dante (2009)
  Helen (2008)
 Sendong (2011)



                                    Negros Project (192 MW)                     Leyte Project (700MW)


 Canlas Flashfloods (2006)
                                                                                               Caloy (2006)
                                                                                              MIlenyo (2006)
                                                                                               Frank (2008)
                                       Mt. Apo Project (106 MW)




                                                                                                                  4
                                                                                                                  6
SINCE 2005, EDC HAS ORGANIZED 25 BARANGAY EMERGENCY
RESPONSE TEAMS TO ADDRESS DISASTERS




                   The teams have received varying levels of training by EDC’s in-house
                   Emergency Response Team, PNRC, PDRRMC and other partners on
                   the following topics:
                   -Swimming                           25 Teams formed as of 2011:
                   -First aid; basic life support
                   -Rescue (terrain, water, accident)  BGPF: 9 teams @ 10 pax/team
                   -Landslides                         LGPF: 5 teams @15 pax/team
                                                       SNGP: 3 teams @10 pax/team
                   -Fire
                                                       NNGP: 1 team @ 21 pax
                   -Earthquake                         MGPF: 7 teams @ 60 pax/team
Fire Drill         -Epidemics dengue
... WHILE SCHOOL DISASTER TRAININGS WERE STARTED 2011
USING FOREST BIOPHYSICAL FACTORS, THE ALERT SYSTEM WILL
INDICATE VULNERABLE AREAS TO LANDSLIDES AND FLOODS
(BACMAN MODEL)

                LANDSLIDES                      FLOODS
Alignment




            50
STAKEHOLDER-FOCUSED ACTIVITIES PROVIDE GROUNDED INFORMATION TO THE
BOARD AND MANAGEMENT; IN TURN A STRATEGIC DIRECTION INFLUENCES THE
OVERALL SUSTAINABILITY APPROACH – THE “ALIGNING” PART OF THE PROCESS



The DMA captures the spirit
and the intent of the
sustainability reporting
program
IN 2010, EDC STRENGTHENED ITS INTEGRATED SUSTAINABILITY STRATEGY BY
ARTICULATING THROUGH POLICIES AND MANAGEMENT DISCUSSION OF ITS
APPROACH TO SUSTAINABILITY




        “The company‟s long-standing policy is to ensure that the
        company‟s progress is in pace with environmental and
        host communities‟ prosperity. We consider our
        relationship with our stakeholders not only crucial to our
        economic growth but, more importantly, we value their
        insights on how best to responsibly improve on our
        service, efficiency, productivity, and innovation”
EDC’S INTEGRATED SUSTAINABILITY REPORTS HAVE DMAs ON ITS IMPACTS ON
  THE ECONOMY, ENVIRONMENT AND SOCIETY – BOARD PROMULGATED KEY
  POLICY STATEMENTS TO ADDRESS MAJOR IMPACTS
Approach to Sustainable                         Approach to                     Approach to Sustainable Social
Economic Growth                                 Sustainable                     Development
                                                Environmental
                                                Responsibility
Economic Performance                            Materials                       Corporate Governance
Market Presence                                 Energy & Water                  Community
Investment & Procurement Practices              Biodiversity                    Government, Industry & the Market
Indirect Economic Impacts                       Emissions, Effluents & Wastes   Training & Education
Availability, Reliability & System Efficiency   Products & Services             Occupational, Health & Safety
Research and Development                        Compliance                      Labor-Management Relations
                                                Transport                       Diversity & Equal Opportunity
                                                Environmental Expenditures      Indigenous People’s Right
                                                                                Freedom from Forced & Compulsory Labor
                                                                                Customer Health, Safety & Privacy
                                                                                Marketing Communications & Product
                                                                                Labeling Service
Writing the report
      The Power of Storytelling | Multi-communication Platform
A SUSTAINABILITY REPORT ITSELF DOES NOT
INDICATE THAT A COMPANY IS MORE
RESPONSIBLE

WHAT IT DOES PROVIDE IS A CLEARER
UNDERSTANDING AND DISCLOSURE OF ACTIONS
AND MEASURES, AND TIES IT TO VARIOUS
BOTTOM LINES
THE 2011 REPORT DESCRIBES OUR COMMITMENTS TO
OPERATIONAL, ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES, ALL
CORE TO OUR COMPANY‟S HISTORY, CULTURE AND BUSINESS
STRATEGY

                          82    key performance indicators
RESOURCES AND INFORMATION AVAILABLE AT EDC SUSTAINABILITY
WEBPAGE AND ALSO IN SIMPLIFIED VERSION (ENGLISH-TAGALOG)



                      www.energy.com.ph/sustainability
APPROACH :   BALANCED REPORTING, QUALITY DATA,
             COMPREHENSIVE DMA, AND RELEVANCE
             TO STAKEHOLDERS
Statements from top management

Balanced
Reported on accomplishments
Addressed issues and challenges (rarely seen in most reports)

                                “The challenges of changing mindsets &
                                transitioning a company from
                                government ownership to the private
                                sector can never be misjudged”.


                                “Even our ability to drill wells efficiently
                                and effectively, despite considerable
                                advances in the last four years, is an
                                area we must continue to improve
                                and drive towards an even higher
                                bar of excellence”.

                                “…a privatized EDC has to grab the issue by its horns and address it once and
                                for all. Let me assure you, our shareholders, that these major missteps are a
                                thing of the past given the governance that we have today.

                                                                          “Yet another setback was conceding
  “…the underperforming 49MW Northern Negros                              that the rehabilitation of our Bacman
                                                                          plant would not meet the aggressive
  Geothermal Power Plant (NNGP), contributed to                           internal target we set for ourselves to
  driving our income down by 86 percent”.                                 run by year’s end”.
WE HAVE SELECTED AND ADOPTED ENDANGERED SPECIES AS
INDICATORS TO MONITOR THE HEALTH OF OUR FORESTS
  Wildlife Species      IUCN Red      DAO 2004 -15
                                                                          Flying Foxes
                           List
Golden Crowned
Flying fox             Endangered   Endangered
(Bicol/Negros)
Large Flying Fox       Near         Other threatened
(Bicol)                Threatened   species
                                                                        Phil Brown Deer
Philippine Warty Pig                                   Phil Eagle
                       Vulnerable   Vulnerable
(Negros)
Philippine Brown
                       Vulnerable   Vulnerable
Deer (Negros)
Philippine Eagle       Critically   Critically
(No. Cotabato/Leyte)   endangered   endangered
Philippine Eagle Owl
                       Vulnerable   Vulnerable
(Bicol)



                                                       Phil Eagle Owl    Phil Warty Pig
REPORTS, NUMBERS & RATIONAL ARGUMENTS MAY BE
FORGOTTEN, BUT STORIES STAND THE TEST OF TIME


          Romula Regala, EDC‟s first woman community
          leader and Bayaning Pilipino Awardee




       Nelson Tula and his Mount Apo Story
The Federation of Bac-Man Host Communities(FEDBACH) was created to improve
coordination among community organizations for EDC project contracts
     EDC brokered the accreditation of FEDBACH with the Land Bank
     2011: Land Bank approved P10-million loan, allowing FEDBAHC to join in large-
      scale contracts
       FEDBAHC is now a professionally run organization
       2009 Net Income: P4.49 million. 2010 Net Income: P8.43 million
       Today, runs its own welfare programs: livelihoods, scholarship, medical
        mission, etc.
THE SCHOOL FOR EXCELLENCE PROGRAM IS A MULTIPARTITE EFFORT



                          • READING PROGRAM
                          • PERSONAL CONTRIBUTIONS
• ADMIN PERSONNEL
  (Clerk, Utility
  Aide, Watchman)                                    • INFRASTRUCTURE
                                                         (Instructional &
                                                         non-instructional)
                                                     •   TEACHERS TRAINING
                                                     •   SALARY OF TEACHERS
                                                     •   FEEDING OF STUDENTS
• TEACHERS SKILLS                                    •   EXTRA-CURRICULAR
  ENHANCEMENT




• PERSONNEL                                          • PERSONNEL / SALARY
  (Teachers assistants)                                (Teachers G1-6, Principal)
• FEEDING PROGRAM         • TELEVISION & SATELLITE   • TEACHERS TRAINING
  (planning/ cooking/               DISK               (Regular)
  distribution)                                      • PARENT INTERVENTION
                                                       PROGRAM
… AND FULLY FURNISHED CLASS ROOMS AND LABORATORIES

TONGONAN, ORMOC CITY                                TONGONAN, KANANGA




                       KC TV
                                                     Equipment in the speech lab     Students in the classroom
                                Knowledge Channel
 Library                             Sat Disk




                                                     Library reference materials      Students at the Library

  Science Laboratory       Speech Laboratory




   Feeding Center              Faculty Office       Knowledge Channel Sat Disk     Biological models & microscope
EDUCATION PROJECTS HAVE RAISED SCHOLASTIC
            PERFORMANCE LEVELS & INSTRUCTIONAL STANDARDS
450                                                                                    9.0
                                                                           398                      8.5
400                                                                                    8.0
                   372                                           373
350                          349         356        329                                7.0
                                                                                                                                 4.9% decrease in
300
         259                 321         330         338
                                                                 343       347         6.0                                       DROP-OUT
                   300
250                                                                                    5.0                                       RATE
200                                                                                    4.0
           196                                                                                                                   3.3
150
                                              57% increase                             3.0                     3.2      2.9
100                                                                                                                                       2.4
                                                                                       2.0
 50
                                              in                                                    1.4        1.3
                                                                                       1.0                                                                   0.97
  0                                           ENROLMENT                                0.0                              0.3
                                                                                                                                 0.7      0.4
                                                                                                                                                   0.1
                                                                                                                                                   0.0       0.29
        SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010-
                                                                                               SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010-
          05*       06       07       08       09       10       11
                                                                                                 05*       06       07       08       09       10       11
                 Tongonan, Ormoc                  Tongonan, Kananga                                       Tongonan, Ormoc         Tongonan, Kananga


102.0                                                                                  102.0
                                                                                       100.0                    100.0    100.0    100.0    100.0             100
100.0                                                                  99.3      100                                              98.6                99.1
                                                                                  99    98.0
                                                  98.5        98.5      99.4                                             97.0
 98.0                     98.2        98.0                                              96.0                                                          96.3
                                                  97.0        97.0                                                                                            95
                                                                                        94.0
 96.0                     96.1        96.0                                                                      93.0                       93.3
                                                                                        92.0
 94.0                                                                                   90.0     88.8
 92.0          92.0
                                          7.4% increase                                 88.0            88.6                       9% increase in
                                                                                        86.0
 90.0
                                          in                                            84.0
                                                                                                                                   RETENTION
 88.0
                                          ATTENDANC                                     82.0                                       RATE
                                          E
         SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010-                         SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010-
                                                                                                  05*       06       07       08       09       10       11
           05*       06          07          08          09          10        11

                 Tongonan, Ormoc                   Tongonan, Kananga                                      Tongonan, Ormoc         Tongonan, Kananga
THERE WAS A MARKED INCREASE IN NATIONAL ACHIEVEMENT TEST
100                                                                    100.0
                                                                                                                                 92.42     93
 90                                                                     90.0
                                                                                                               82.3     85.5
                                               85.5      83.33   83                                   85.0                        83.7     85.4
                                                                                             83.3
 80                          80.3     80.2                              80.0
                                                                 81                                   74.4     78.8      81.1
 70                                                      79.3           70.0        71.5
                    68.4              66.5     66.7
 60                          60.3                                       60.0
                                                                                    57.4
                                                                        50.0
                                                                                             53.8
 50
 40                                                                     40.0

 30                 32.4                 15% increase                   30.0                                   29% increase
 20                                        in NAT 3                     20.0                                     in NAT 6
 10                                                                     10.0

 0                                                                       0.0
      SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010-           SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010-
        05*       06       07       08       09       10       11                05*       06       07       08       09       10       11
                                                                                       Tongonan, Ormoc             Tongonan, Kananga

                  Many awards & recognitions were garnered by both schools


                                                  85                                                            36


                                  Regional High performer (2005-06);                                         1st
                             Regional/division Awardee for MPS 90.1 & 93.44                Regional/Division/District Awardee for
                                         in Math & Hekasi (Gr6);                                       30% increase
                               Division Awardee for MPS 92% in English                                     (2007)
                                   Grammar, 91% in English Reading,
                                       96% in Science in Grade 3
WE COMPLEMENT COMMUNITY INITIATIVES AND GOVT.
SERVICES TO ADDRESS DEVELOPMENT GAPS– LIVELIHOOD

    EDUCATION: Kananga-EDC Institute of Technology (KEITECH)
                                                Alternative Learning
                                                Education:
                                                   Multi skilled workers
                                                    (5 certifications)
                                                   Values formation
                                                    and discipline
                                                   Employment
                                                    guidance
                                                Results:
                                                   Consistent 100%
                                                    passing rate
                                                   Employment
                                                    assistance desk
                                                    (97%)
“Two graduates we hired from KEITECH are very successful and brought some good feedback both from
our Principal and their co-workers onboard their assigned vessel MV Queen Elizabeth. In fact, they
were nominated as "White Star Service" awardees due to exceptional quality work, discipline and
dedication to their assigned tasks. We have not received such kind of special recognition on any of our
new hires onboard Cunard ships. We are proud of their accomplishments and we thought we have to
share this with you, your students, members of faculty and the officers behind KEITECH.
Congratulations to your Team and for the job well done!”
                                                                                                  69
EDC EDUCATES THE PUBLIC THROUGH ENVIRONMENTAL
PUBLICATIONS AND EVENTS




                                                70
“RAFFLESIA OF THE PHILIPPINES “ IS THE FIRST BOOK TO PRESENT
THE LATEST INFORMATION ON THE LOCAL SPECIES OF THE LARGEST
SINGLE FLOWER ON THE PLANET
THE SUSTAINABILITY OF EDC’S OPERATION WAS AFFIRMED WHEN
IFC SELECTED EDC FOR THE CLIENT LEADERSHIP AWARD IN 2011 BESTING
200 PORTFOLIO COMPANIES AND 80 COUNTRIES

                                        And our sustainability story continues…

                                         UNDP National Steering Committee
                                          on Biodiversity Mainstreaming for
                                          Communities (2010-present)

                                         FC-MIT Sloan Sustainability Case
                                          Study (Jan. 2012)

                                         PBE Advisory Council on its shift to
                                          Sustainability Theme (May 2012)

                                         WB-ADB-JICA-AusAid Study on
                                          Asian Best Practices on
                                          Sustainability (Oct. 2012)

                                         ILO Green Business Asia on
                                          Sustainability (Nov. 2012)
Thank you!


                                                    Agnes C. de Jesus
                        Senior VP for Environment & External Relations and
                                                       Compliance Officer


Materiality & DMA
Tools and Best Practices in Sustainability Reporting

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EDC's DMA: Tools and Strategy in Sustainability Reporting

  • 1. TOOLS & BEST PRACTICES The Importance of Materiality Testing & DMA in Sustainability Reporting Agnes C. de Jesus SVP for Environment & External Relations and Compliance Officer
  • 2. PRESENTATION OUTLINE  COMPANY PROFILE  Nature of Business  Communicating with Stakeholders  Path to Sustainability  THE PROCESS BEHIND THE STORY  Stakeholder Mapping  Materiality  Management Approach  WRITING THE REPORT  Storytelling Technique  Multi-level Communication
  • 3. ABOUT US Origin and history | Nature of business | The path to sustainability
  • 4. EDC WAS BORN OUT OF THE 1970’S OIL CRISIS PAVING THE WAY FOR THE COUNTRY’S SHIFT TO RENEWABLE ENERGY 1970s Leyte, 4
  • 5. TODAY, EDC IS A VERTICALLY INTEGRATED RENEWABLE ENERGY COMPANY WITH OPERATIONS LOCATED ACROSS THE COUNTRY INTEGRATED STEAMFIELD LUZON STEAMFIELD (EDC) AND AND POWER PLANT FGHPC (60%) POWER PLANT (EDC SUBSIDIARY) 120 MW Pantabangan 12.5MW Masiway Leyte Manila Bacman 125MW Upper Mahiao 232.5MW Malitbog 110MW Bacman I 180MW Mahanagdong 20MW Bacman II 50MW Optimization Leyte Northern Negros VISAYAS 112.5MW Tongonan I 49MW Northern Negros (Impaired in July 2011) Southern Negros Mindanao 112.5MW Palinpinon I 52MW Mindanao I 80MW Palinpinon II 54MW Mindanao II MINDANAO 1,130 MW geothermal 132 MW hydro 5
  • 6. THEN & NOW, EDC„S RENEWABLE ENERGY PROJECTS SUPPORT THE ECONOMIC & ENVIRONMENTAL GOALS OF THE PHILIPPINES EDC is Purely Renewable • 65% of the Philippines’ installed geothermal power capacity • 14% of the Philippines’ total power generation Substantial Country Contribution • Displaced 114M barrels of oil import (P240 B savings) • Social projects of P 2 B since 1987 • Paid P 34.5B taxes and fees to the government since 1983 Lower Carbon Emissions Avoids 5.2 M tons of C/yr of operation to mitigate climate change Between 85-92% lower than in grids where EDC operates: • Visayas Grid: 0.21 CO2 ton/MWh vs. EDC Visayas: 0.03 CO2 ton/MWh • Mindanao Grid: 0.28 CO2 ton/MWh vs. EDC Mindanao: 0.02 CO2 ton/MWh
  • 7. BEING SITE SPECIFIC, GEOTHERMAL & HYDRO PROJECTS ARE LOCATED IN VERY REMOTE AND FORESTED AREAS – 5 SITES ARE IN 8 KEY BIODIVERSITY AREAS OF THE COUNTRY 7
  • 8. EDC’S VALUE CHAIN LINKS THE 6 VITAL ASPECTS OF THE BUSINESS‟ OPERATION – FROM DEVELOPING THE NATURAL RESOURCE BASE TO ENGAGING STAKEHOLDER GROUPS Water Table Geothermal Reservoir Magma
  • 9. EDC PROCESSES FOLLOW THE REGENERATIVE CYCLE OF GEOTHERMAL RESOURCE THEREBY HARMONIZING TECHNOLOGY, PEOPLE AND NATURE Renewable energy technology Wet steam utilization, zero discharge system, fluid collection & recycling system, efficient power plants Comprehensive environmental management Waste management, watershed, biodiversity, Stakeholder Engagement climate change action Customers, Investors, Regulatory Bodies Comprehensive Environmental Management Program Fluid Collection & Recycling System 5.2 M tons sequestered CO2 1,130MW 84,839 hectares Steamfields land protected Power Plants 7,623 hectares reforested in 2011 Stakeholder Engagement Employee development, CSR for 18,000 households
  • 10. EDC HAS EVOLVED INTO A RESPONSIBLE ENERGY COMPANY – FROM THE 1970’S WHEN IT STARTED FOCUSING ON ENVIRONMENTAL MONITORING TO THE PRESENT WHERE IT ADOPTS THE INTEGRATED SUSTAINABILITY APPROACH Philippine‟s evolution Charity / Dawning of Community Corporate Integrative Donations NGOs Relations Citizenship CSR Environment Environmental Environmental Best-in-class EDC‟s path Monitoring Management Management operating systems Watershed Mgt/ Watershed Mgt/ Envi/Watershed/ Social Forestry Social Forestry Social Forestry (1983) Community CSR/Community Expanded Relations Partnerships ComRel (1987) (2005) Climate Change Action 10 (2009)
  • 11. AFTER ITS PRIVATIZATION IN 2007, EDC SHIFTED ITS PARADIGM TOWARDS A MORE STRATEGIC APPROACH AS IT PREPARES TO COMPETE IN THE GLOBAL ENERGY MARKET EDC was acquired by the Lopez Group through First Gen Corporation in November 2007 Government Corporation Outlook Lopez Company Outlook Industrial peace Industrial peace + Employee lifelong wellness Company reputation & contribution to the Contribution to the country country • Recover & Re-allocate • Sunk cost (Effective resource management) • Allocate & spend budget • Strategic (Low input, high impact) Dole-out Sustainable (financial & program sustainability) Geothermal block & focused on primary Entire geothermal reservation partner communities 11
  • 12. WITH ITS COMPLIANCE TO 250 LAWS/ORDINANCES AND ADHERENCE TO MAJOR INTERNATIONAL CONVENTIONS, EDC HAS STRENGTHENED ITS ACCOUNTABILITY MEASURES CORPORATION ENERGY LAWS ENVIRONMENT HEALTH & LAWS LAWS SAFETY LAWS - POWER REFORM - POLLUTION - ENERGY HSE - SECURITIES & EXCHANGE - RENEWABLE - FORESTRY - HEALTH CODE ENERGY - PHIL. STOCK - WATER - OCCUPATIONAL EXCHANGE - ENERGY SAFETY & BENEFITS CODE HEALTH - CORP. GOV . - GRID CODE INTERNATIONAL TAX LAWS SOCIAL LAWS CONVENTIONS - Atmosphere - LOCAL - INDIGENOUS - Biodiversity GOVT.CODE PEOPLES - LGU BENEFITS - Chemicals - REVENUE - AGRARIAN - Land CODE REFORM - Culture - RELOCATION IFC-WORLD BANK - LABOR - Environmental and Social Safeguards
  • 14. Sustainability Management is a key word in the corporate strategy of the 21st century
  • 15. Whom & what to communicate?
  • 16. WHAT USUALLY HAPPENS: COMPANIES PROPOSE INITIATIVES TO BECOME SUSTAINABLE
  • 17.
  • 18. WHAT USUALLY HAPPENS: THEN THEY SHARE THE INFORMATION TO THEIR STAKEHOLDERS
  • 19. WHEN IN FACT IT SHOULD BE CONDUCTED THE OTHER WAY AROUND
  • 20. FIRST, GET TO KNOW WHAT STAKEHOLDERS WANT TO CHANGE ABOUT YOUR COMPANY PERFORMANCE
  • 21. BRING THAT CHANGE PROCESS INTO THE CORPORATE STRATEGY AND CULTURE
  • 22. WHICH WILL LEAD TO DIFFERENT RESOLUTIONS THAT CAN BENEFIT BOTH THE COMPANY & ITS STAKEHOLDERS
  • 23. THEREFORE, INVOLVING THE STAKEHOLDERS IS THE STARTING POINT
  • 24. the storY BEHIND THE PROCESS Stakeholder Mapping | Materiality Principle | Management Approach
  • 25. EDC’S INTEGRATED SUSTAINABILITY REPORTING IS A RIGOROUS PROCESS THAT HEAVILY INVOLVES STAKEHOLDER CONSULTATIONS & MANAGEMENT STRATEGY SUSTAINABILITY REPORTING = STAKEHOLDER ENGAGEMENT + STRATEGIC COMMUNICATIONS Materiality Principle & Management Approach
  • 26. THE GLOSSY COPY IS MERELY THE OUTPUT OF AN EXTENSIVE UNDERLYING EFFORT THAT PRECEDES IT The predominant value lies in the preparation: • The selection of metrics (the use of GRI EUSS for instance) • The analysis of the business impacts and risks (aligning with balanced score card, risk management and business continuity) • The gained insights to understand and improve performance (evaluation & feedback from previous report)
  • 27. Mount Apo: Precursor of Stakeholder Engagement, 1988-1992 27
  • 28. STAKEHOLDERS ARE CONSULTED BEFORE PROJECT CONSTRUCTION STAKEHOLDER PARTICIPANTS 6 Senate Committees LEGISLATURE 3 House Committees EXECUTIVE 10 Government Agencies Region XI RDC Region XII 9 LGUs LGU (1 Province, 1 City ,3 Towns, 4 Barangays) 5 Protestant Sects RELIGIOUS 1 Catholic Diocese ACADEME 14 (Manila-Davao-Cotabato) NGOs 15 (International-Manila-Davao-Cotabato) BUSINESS 2 Regions TOTAL: 67
  • 29. OUR MOUNT APO PROJECT EXPERIENCE IN 1990 SERVED AS A CATALYST – IT TAUGHT US ABOUT THE SOCIAL ACCEPTABILITY PROCESS (GRI DID NOT EXIST YET THEN)  Being an ancestral domain, consent of the indigenous people (IP) was secured in November 1990 and a ritual was performed in April 1992 prior to project operation and IPRA of 1997  That the geothermal project can coexist with the IPs in Mount Apo based on the common goal of protecting the forest for the water-based project and ancestral domain of the IPs  That IPs have the right to benefit from the geothermal project (Mount Apo Tribal Welfare Trust Fund in 1997 upon operation)
  • 30. MANY CONSULTATIONS WERE HELD – A TRIBAL RITUAL WAS EVEN PERFORMED FOR IP CONSENT Pamaas Ritual (April 10, 1992)
  • 31. EDC SIGNED A MOA WITH LGUS, IPS AND NGOS FOR THE PROTECTION OF MOUNT APO AND BENEFITS TO IPS IN 1993 The Mount Apo Foundation, Inc. was formed with IPs in the Board of Trustees
  • 32. THE RICH EXPERIENCE WE HAD IN THE PRE-SUSTAINABILITY REPORTING YEARS PROVIDES US WITH A WEALTH OF INSIGHTS ON STAKEHOLDER ENGAGEMENT & MATERIALITY TESTING, BOTH CRITICAL TO OUR REPORTING PROCESS TODAY Multisectoral agreement paved the way for the permission to operate the Mindanao geothermal power projects BY 1990 WE NEEDED TO BE STAKEHOLDER-RESPONSIVE EVEN BEFORE WE ADOPTED GRI 32
  • 33. WE IDENTIFY OUR STAKEHOLDERS AND REGULARLY UPDATE THE STAKEHOLDER MAP – THE “KNOWING” PART OF THE PROCESS Employee Council (Non-organized employees) Expanded Labor-Management Council Social Acceptability Surveys Host 24/7 interaction through site CSR units Town Hall meetings Employees Communities Public Consultations Surveys Occupational Health and Safety Committees Performance discussions From this universe of stakeholders, we were able to identify 31 priority groups after the stakeholder inclusiveness workshop using the GRI EUSS Framework with Direct contact sales Stockholders’ Meeting Marketing Analyst and Investors’ roadshows Shareholders Customers Briefings Customer Annual Reports satisfaction survey Disclosures Compliance with requirements Direct contacts Working groups Vendor orientations Policy advocacy/government relations Business Accreditation Networking industry associations Public Partners Sector Suppliers/ Contractors 33
  • 34. STAKEHOLDERS ARE IDENTIFIED BASED ON LOCATION, CONDITION , FUNCTION, AND/OR INTERESTS, MAY AFFECT OR BE AFFECTED BY COMPANY OPERATIONS PRIMARY SECONDARY TERTIARY/PERIODIC -------------------------------------------- --------------------------------------------- --------------------------------------------- Those stakeholders whose activities Those stakeholders not primary but Those stakeholders with whom active may impact on or be impacted on by have proximal relation/ no direct link contact is not necessary. Attention the project operation and thus need to immediate company operations. will be determined by mutual need, continuous nurturing of relationship; Their activities may however indicate enhancing of ties with primary/ whose continuous support is emerging directions or concerns secondary stakeholders for resolution necessary for the unhampered which the company may need to be of issues. operation of the company. alert on and attend to in a strategic manner. INDIVIDUAL HOUSEHOLDS: INDIVIDUAL HOUSEHOLDS INDIVIDUAL HOUSEHOLDS 1) 1st Layer Community (Host Barangay, 1) 2nd Layer Community 1) Targeted Community (with special Along Access to Project Sites, Primary (adjoining barangay, host interest to the company) Impact Areas) municipality/city, secondary impact ORGANIZED GROUPS AGENCIES AND ORGANIZATIONS: areas) 1) Host Province 1) Government Agencies (DENR, DOH, DOLE, ORGANIZED GROUPS 2) Non-Government Organization PAMB) 1) Other Government Agencies not in the 3) Academe 2) Media (local and national) Primary List 3) Utilities (Water Districts, Electric 4) Other Industries not in the Primary and 2) Senate and House of Representatives Secondary List Cooperatives) 4) BOT Contractor 5) Church and other Religious Groups 5) NPC 6) Contractors 34
  • 35.
  • 36. FOR INSTANCE, WE MAPPED OUT AND PRIORITIZED 44 PRIMARY PARTNER COMMUNITIES ACROSS FIVE (5) SITES LEYTE SO. NEGROS BACON-MANITO 16 Villages 17,680 10 Villages 10 Villages (5,011 HH) HOUSEHOLDS (2,537 HH) (4,059 HH) MT. APO NO. NEGROS 2 Villages 7 Villages (3,118 HH) (2,955 HH)
  • 37. WE DO A COMPREHENSIVE ASSESSMENT OF OUR IMPACTS ACROSS THE BUSINESS VALUE CHAIN AS KEY TAKEAWAY FROM OUR MOUNT APO EXPERIENCE – THIS IS THE “MONITORING” PART OF THE PROCESS Determining key issues and impacts Part I. EDC Business Footprint Profile Part II. Local Issues Part III. National Issues Business Component Level of Impact: Part IV. Global Issues - Raw materials (25%) Environment - Process (15%) -Land a. Poverty (overpopulation, - Product (10%) -Water unemployment, access to - Waste (25%) - Air basic social services) or MDG - Operational Env’t. (25%) Community b. Climate Change Specific CSR/sustainability initiatives are prioritized based on 1)Total weighted score; 2) Business components affecting the environment & people; and 3) Product/customer type
  • 38. THE ASSESSMENT REVEALS OUR POTENTIAL IMPACTS ON LAND, WATER AND COMMUNITY, HENCE EFFORTS TO PRESERVE THE ENVIRONMENT AND HELP COMMUNITIES ARE TO BE REFLECTED IN THE REPORT Snapshots of our impact Earthworks are Wastes are fully During well EDC reinjects Project sites are benched to contained testing, water wastewaters reforested for correct slope during drilling and air samples back to its origin recharge of the and replanted via lined ponds are collected to for renewability geothermal profile potential reservoir wastes
  • 39. STAKEHOLDER CONSULTATIONS ARE CONDUCTED TO LOOK INTO OTHER CONCERNS AND ISSUES THAT WILL BE ADDED TO THE MATRIX OF MATERIAL TOPICS – THIS IS THE “ENGAGING” PART OF THE PROCESS Regular and Sustained Engagement Public Hearings Consultation and Focus Group Discussions Information A comprehensive social engagement Drive process made possible our groundbreaking initiatives Note: EDC‟s technical working group has completed consultations in the 5 geothermal sites and 1 at the head office – a total of 300 stakeholders were consulted for this year‟s round of reporting
  • 40. WE LISTEN TO THE VOICE OF THE PEOPLE IN OUR COMMUNITIES: WE CONDUCT SOCIAL SURVEYS, AN INNOVATION TO THE CONSULTATION PROCESS 2010 SA: Appreciation for & Willingness to Support EDC and CSR Project 100% 90% 80% = Acceptable Performance 80% 70% 60% 0-54% LOW 50% 55-89% MEDIUM 56-100% HIGH 40% 30% 20% 10% 0% BGPF LGPF MGPF NNGPF SNGPF % Appreciation for & Willingness to support EDC % Appreciation for CSR Project 40
  • 41. KNOWING WHAT THE STAKEHOLDERS‟ CONCERNS ARE MAKES US MORE RESPONSIVE TO THEIR NEEDS 91% 100% 82% 90% 72% 80% 66% 65% 61% 58% 70% 60% 50% 40% 30% 20% 10% 0% EDUCATION (91%) & HEALTH (82%) ARE THE MOST APPRECIATED CSR PROJECTS. 41
  • 43. THESE TOPICS WERE IDENTIFIED AS MATERIAL IN THE 2011 REPORT •Viability of new projects/business expansion •Action on climate change •Human capital (workforce) development Level of Concern to Stakeholder •Partnerships for provision of education, livelihood and health services •Affordable electricity •Business and employment opportunities for local residents •Local infrastructure development •Enforcing of safety practices for employees and contractors •Maintaining good water and air quality •More job opportunities for women and the vulnerable •Livelihood for minority people •Environmental literacy among employees and host communities
  • 44. DENUDED AREAS ARE REFORESTED TO CONTRIBUTE TO ECOSYSTEM SERVICES FOR COMMUNITIES AND EDC YR. 1989-2008 8,000,000 AREA : 7,623 HAS. 7,000,000 NO. of TREES : 7.5M 6,000,000 5,000,000 Rehab habitat Livelihood for fragmentation forest dwellers 4,000,000 for wildlife corridor 3,000,000 2,000,000 Tree for Tree for 1,000,000 Life Food 0 BINHI PROGRAM (2009-present) : 1,000 has. /yr. Develop Conserving genome & for using indigenous and rare species for: ecotourism future mother sites trees - geothermal recharge Tree for Tree for - carbon storage for climate change Leisure the Future - restoring local biodiversity 44
  • 45. EDC IS STARTING TO MEASURE ITS CARBON FOOT PRINT ACROSS THE OPERATION AS REFERENCE TO REDUCE EMISSION AND ENERGY SAVINGS Energy Efficiency efforts in 2009- 2010 Pipe Insulation Emissions Testing In-house Thermographic Inspection Services 6.2 GWh 5.4 GWh Electrical Testing 4.2 GWh 4.8 GWh of Rigs Office savings Source: ERDD 2011
  • 46. AS EDC PROTECTS ITS GEOTHERMAL PROJECTS FROM EXTREME WEATHER EVENTS, THE MEASURES ALSO COVER THE INTEGRITY OF COMMUNITIES AND THEIR LIVELIHOOD Ondoy (2009) Caloy (2006) Frank (2008 Pantabangan (132 MW) Caloy (2006) Bacman Project (130MW) MIlenyo (2006) Reming (2006) Dante (2009) Helen (2008) Sendong (2011) Negros Project (192 MW) Leyte Project (700MW) Canlas Flashfloods (2006) Caloy (2006) MIlenyo (2006) Frank (2008) Mt. Apo Project (106 MW) 4 6
  • 47. SINCE 2005, EDC HAS ORGANIZED 25 BARANGAY EMERGENCY RESPONSE TEAMS TO ADDRESS DISASTERS The teams have received varying levels of training by EDC’s in-house Emergency Response Team, PNRC, PDRRMC and other partners on the following topics: -Swimming 25 Teams formed as of 2011: -First aid; basic life support -Rescue (terrain, water, accident) BGPF: 9 teams @ 10 pax/team -Landslides LGPF: 5 teams @15 pax/team SNGP: 3 teams @10 pax/team -Fire NNGP: 1 team @ 21 pax -Earthquake MGPF: 7 teams @ 60 pax/team Fire Drill -Epidemics dengue
  • 48. ... WHILE SCHOOL DISASTER TRAININGS WERE STARTED 2011
  • 49. USING FOREST BIOPHYSICAL FACTORS, THE ALERT SYSTEM WILL INDICATE VULNERABLE AREAS TO LANDSLIDES AND FLOODS (BACMAN MODEL) LANDSLIDES FLOODS
  • 50. Alignment 50
  • 51. STAKEHOLDER-FOCUSED ACTIVITIES PROVIDE GROUNDED INFORMATION TO THE BOARD AND MANAGEMENT; IN TURN A STRATEGIC DIRECTION INFLUENCES THE OVERALL SUSTAINABILITY APPROACH – THE “ALIGNING” PART OF THE PROCESS The DMA captures the spirit and the intent of the sustainability reporting program
  • 52. IN 2010, EDC STRENGTHENED ITS INTEGRATED SUSTAINABILITY STRATEGY BY ARTICULATING THROUGH POLICIES AND MANAGEMENT DISCUSSION OF ITS APPROACH TO SUSTAINABILITY “The company‟s long-standing policy is to ensure that the company‟s progress is in pace with environmental and host communities‟ prosperity. We consider our relationship with our stakeholders not only crucial to our economic growth but, more importantly, we value their insights on how best to responsibly improve on our service, efficiency, productivity, and innovation”
  • 53. EDC’S INTEGRATED SUSTAINABILITY REPORTS HAVE DMAs ON ITS IMPACTS ON THE ECONOMY, ENVIRONMENT AND SOCIETY – BOARD PROMULGATED KEY POLICY STATEMENTS TO ADDRESS MAJOR IMPACTS Approach to Sustainable Approach to Approach to Sustainable Social Economic Growth Sustainable Development Environmental Responsibility Economic Performance Materials Corporate Governance Market Presence Energy & Water Community Investment & Procurement Practices Biodiversity Government, Industry & the Market Indirect Economic Impacts Emissions, Effluents & Wastes Training & Education Availability, Reliability & System Efficiency Products & Services Occupational, Health & Safety Research and Development Compliance Labor-Management Relations Transport Diversity & Equal Opportunity Environmental Expenditures Indigenous People’s Right Freedom from Forced & Compulsory Labor Customer Health, Safety & Privacy Marketing Communications & Product Labeling Service
  • 54.
  • 55. Writing the report The Power of Storytelling | Multi-communication Platform
  • 56. A SUSTAINABILITY REPORT ITSELF DOES NOT INDICATE THAT A COMPANY IS MORE RESPONSIBLE WHAT IT DOES PROVIDE IS A CLEARER UNDERSTANDING AND DISCLOSURE OF ACTIONS AND MEASURES, AND TIES IT TO VARIOUS BOTTOM LINES
  • 57. THE 2011 REPORT DESCRIBES OUR COMMITMENTS TO OPERATIONAL, ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES, ALL CORE TO OUR COMPANY‟S HISTORY, CULTURE AND BUSINESS STRATEGY 82 key performance indicators
  • 58. RESOURCES AND INFORMATION AVAILABLE AT EDC SUSTAINABILITY WEBPAGE AND ALSO IN SIMPLIFIED VERSION (ENGLISH-TAGALOG) www.energy.com.ph/sustainability
  • 59. APPROACH : BALANCED REPORTING, QUALITY DATA, COMPREHENSIVE DMA, AND RELEVANCE TO STAKEHOLDERS
  • 60. Statements from top management Balanced Reported on accomplishments Addressed issues and challenges (rarely seen in most reports) “The challenges of changing mindsets & transitioning a company from government ownership to the private sector can never be misjudged”. “Even our ability to drill wells efficiently and effectively, despite considerable advances in the last four years, is an area we must continue to improve and drive towards an even higher bar of excellence”. “…a privatized EDC has to grab the issue by its horns and address it once and for all. Let me assure you, our shareholders, that these major missteps are a thing of the past given the governance that we have today. “Yet another setback was conceding “…the underperforming 49MW Northern Negros that the rehabilitation of our Bacman plant would not meet the aggressive Geothermal Power Plant (NNGP), contributed to internal target we set for ourselves to driving our income down by 86 percent”. run by year’s end”.
  • 61. WE HAVE SELECTED AND ADOPTED ENDANGERED SPECIES AS INDICATORS TO MONITOR THE HEALTH OF OUR FORESTS Wildlife Species IUCN Red DAO 2004 -15 Flying Foxes List Golden Crowned Flying fox Endangered Endangered (Bicol/Negros) Large Flying Fox Near Other threatened (Bicol) Threatened species Phil Brown Deer Philippine Warty Pig Phil Eagle Vulnerable Vulnerable (Negros) Philippine Brown Vulnerable Vulnerable Deer (Negros) Philippine Eagle Critically Critically (No. Cotabato/Leyte) endangered endangered Philippine Eagle Owl Vulnerable Vulnerable (Bicol) Phil Eagle Owl Phil Warty Pig
  • 62. REPORTS, NUMBERS & RATIONAL ARGUMENTS MAY BE FORGOTTEN, BUT STORIES STAND THE TEST OF TIME Romula Regala, EDC‟s first woman community leader and Bayaning Pilipino Awardee Nelson Tula and his Mount Apo Story
  • 63. The Federation of Bac-Man Host Communities(FEDBACH) was created to improve coordination among community organizations for EDC project contracts  EDC brokered the accreditation of FEDBACH with the Land Bank  2011: Land Bank approved P10-million loan, allowing FEDBAHC to join in large- scale contracts  FEDBAHC is now a professionally run organization  2009 Net Income: P4.49 million. 2010 Net Income: P8.43 million  Today, runs its own welfare programs: livelihoods, scholarship, medical mission, etc.
  • 64. THE SCHOOL FOR EXCELLENCE PROGRAM IS A MULTIPARTITE EFFORT • READING PROGRAM • PERSONAL CONTRIBUTIONS • ADMIN PERSONNEL (Clerk, Utility Aide, Watchman) • INFRASTRUCTURE (Instructional & non-instructional) • TEACHERS TRAINING • SALARY OF TEACHERS • FEEDING OF STUDENTS • TEACHERS SKILLS • EXTRA-CURRICULAR ENHANCEMENT • PERSONNEL • PERSONNEL / SALARY (Teachers assistants) (Teachers G1-6, Principal) • FEEDING PROGRAM • TELEVISION & SATELLITE • TEACHERS TRAINING (planning/ cooking/ DISK (Regular) distribution) • PARENT INTERVENTION PROGRAM
  • 65. … AND FULLY FURNISHED CLASS ROOMS AND LABORATORIES TONGONAN, ORMOC CITY TONGONAN, KANANGA KC TV Equipment in the speech lab Students in the classroom Knowledge Channel Library Sat Disk Library reference materials Students at the Library Science Laboratory Speech Laboratory Feeding Center Faculty Office Knowledge Channel Sat Disk Biological models & microscope
  • 66. EDUCATION PROJECTS HAVE RAISED SCHOLASTIC PERFORMANCE LEVELS & INSTRUCTIONAL STANDARDS 450 9.0 398 8.5 400 8.0 372 373 350 349 356 329 7.0 4.9% decrease in 300 259 321 330 338 343 347 6.0 DROP-OUT 300 250 5.0 RATE 200 4.0 196 3.3 150 57% increase 3.0 3.2 2.9 100 2.4 2.0 50 in 1.4 1.3 1.0 0.97 0 ENROLMENT 0.0 0.3 0.7 0.4 0.1 0.0 0.29 SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010- SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010- 05* 06 07 08 09 10 11 05* 06 07 08 09 10 11 Tongonan, Ormoc Tongonan, Kananga Tongonan, Ormoc Tongonan, Kananga 102.0 102.0 100.0 100.0 100.0 100.0 100.0 100 100.0 99.3 100 98.6 99.1 99 98.0 98.5 98.5 99.4 97.0 98.0 98.2 98.0 96.0 96.3 97.0 97.0 95 94.0 96.0 96.1 96.0 93.0 93.3 92.0 94.0 90.0 88.8 92.0 92.0 7.4% increase 88.0 88.6 9% increase in 86.0 90.0 in 84.0 RETENTION 88.0 ATTENDANC 82.0 RATE E SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010- SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010- 05* 06 07 08 09 10 11 05* 06 07 08 09 10 11 Tongonan, Ormoc Tongonan, Kananga Tongonan, Ormoc Tongonan, Kananga
  • 67. THERE WAS A MARKED INCREASE IN NATIONAL ACHIEVEMENT TEST 100 100.0 92.42 93 90 90.0 82.3 85.5 85.5 83.33 83 85.0 83.7 85.4 83.3 80 80.3 80.2 80.0 81 74.4 78.8 81.1 70 79.3 70.0 71.5 68.4 66.5 66.7 60 60.3 60.0 57.4 50.0 53.8 50 40 40.0 30 32.4 15% increase 30.0 29% increase 20 in NAT 3 20.0 in NAT 6 10 10.0 0 0.0 SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010- SY 2004- SY 2005- SY 2006- SY 2007- SY 2008- SY 2009- SY 2010- 05* 06 07 08 09 10 11 05* 06 07 08 09 10 11 Tongonan, Ormoc Tongonan, Kananga Many awards & recognitions were garnered by both schools 85 36 Regional High performer (2005-06); 1st Regional/division Awardee for MPS 90.1 & 93.44 Regional/Division/District Awardee for in Math & Hekasi (Gr6); 30% increase Division Awardee for MPS 92% in English (2007) Grammar, 91% in English Reading, 96% in Science in Grade 3
  • 68. WE COMPLEMENT COMMUNITY INITIATIVES AND GOVT. SERVICES TO ADDRESS DEVELOPMENT GAPS– LIVELIHOOD EDUCATION: Kananga-EDC Institute of Technology (KEITECH) Alternative Learning Education:  Multi skilled workers (5 certifications)  Values formation and discipline  Employment guidance Results:  Consistent 100% passing rate  Employment assistance desk (97%)
  • 69. “Two graduates we hired from KEITECH are very successful and brought some good feedback both from our Principal and their co-workers onboard their assigned vessel MV Queen Elizabeth. In fact, they were nominated as "White Star Service" awardees due to exceptional quality work, discipline and dedication to their assigned tasks. We have not received such kind of special recognition on any of our new hires onboard Cunard ships. We are proud of their accomplishments and we thought we have to share this with you, your students, members of faculty and the officers behind KEITECH. Congratulations to your Team and for the job well done!” 69
  • 70. EDC EDUCATES THE PUBLIC THROUGH ENVIRONMENTAL PUBLICATIONS AND EVENTS 70
  • 71. “RAFFLESIA OF THE PHILIPPINES “ IS THE FIRST BOOK TO PRESENT THE LATEST INFORMATION ON THE LOCAL SPECIES OF THE LARGEST SINGLE FLOWER ON THE PLANET
  • 72. THE SUSTAINABILITY OF EDC’S OPERATION WAS AFFIRMED WHEN IFC SELECTED EDC FOR THE CLIENT LEADERSHIP AWARD IN 2011 BESTING 200 PORTFOLIO COMPANIES AND 80 COUNTRIES And our sustainability story continues…  UNDP National Steering Committee on Biodiversity Mainstreaming for Communities (2010-present)  FC-MIT Sloan Sustainability Case Study (Jan. 2012)  PBE Advisory Council on its shift to Sustainability Theme (May 2012)  WB-ADB-JICA-AusAid Study on Asian Best Practices on Sustainability (Oct. 2012)  ILO Green Business Asia on Sustainability (Nov. 2012)
  • 73. Thank you! Agnes C. de Jesus Senior VP for Environment & External Relations and Compliance Officer Materiality & DMA Tools and Best Practices in Sustainability Reporting

Hinweis der Redaktion

  1. EDC was created in 1976 as a result of the oil crisis. When the oil exporting countries refused to sell oil to the country which was 95% dependent on oil in the 1970”s, the govt signed a geothermal bilateral aid program with NZ which paved the way for RE in the country
  2. Today, EDC is a vertically integrated RE owning both steamfields and power plants with projects across the major islands of the country. We have a capacity of 1,130 MW of geothermal and 132 MW of hydropower.One MW can light up 20,000 rural homes
  3. In summary, EDC has contributed to the development of the country then and now. EDC is a pure RE power for 36 yrs providing clean power. It has substantial contributions in terms of avoided oil import of 114 M barrels of oil saving $ 5.8B, has provided P 1.6B of social projects to its host communities in 5 projects since 1987 and paid its taxes of P34.5B since 1983. Geothermal also emits lower harmful gases and avoids 5.3M tons of C for every yr of operation compared to coal.
  4. Geothermal being site specific, EDC’s projects are located in forest areas that are often in key biodiversity areas of the country
  5. Being in a fragile forest environment, the protection of the natural resources base is critical for geothermal recharge and other services for other stakeholders in the area. Geothermal comes from water collected by forest which find its way to the geo reservoir 3km below the ground which is heated by magma and harnessed in the plant. Waste water is reinjected back to the reservoir. EDC’s value chain links the 6 aspects of business operation from developing the natural resource to the application of geothermal technology, utilizing expert human capital to engaging stakeholder groups –the suppliers, customers and community partners.
  6. EDC processes follow nature’s cycle . EDC adopts cutting edge technologies to make the plant operation efficient for the optimum use of natural resource base and reinjects its wastewaters. EDC reforested close to 8 thousand hectares and 7.5M trees for future recharge to geothermal. The improved forest cover in turn improve the envtl quality of the site for the communities. The stakeholders are engaged to cooperate and sustain the business operation. Thus, the EDC is harmonizing technology, Thus, the business is able to harmonize technology, people and environment.
  7. With a nature focused business model, EDC has evolved as a truly responsible company. The evolution of EDC’ sustainability program started in 1978 when EDC created the first envt group in the country a yr after the envi law was issued in 1977. By 1981 it undertook EIA of its projects and installed envi mgt measures. In 1983, it took over the management of the forests and gave liveihood to forest dwellers via agro forests or social forestry. In 1987 it hired a Comrel Officer to coordinate with communities. By 2005 we revitalized Comrel and created a CSR Team and by 2009 we started addressing global issue of Climate change due to local effects to EDC assets and its host communities
  8. EDC started its Comrel program in October 1987. When we were privatized in 2007, it shifted into a an integrated and strategic approach. When we were govt we focused on industrial peace but now we are also concerned about employee lifelong wellness. When we were govt we focused on contribution to the country. Now we added company reputation. Before we allocate and expend the budget but now we are keen on effective financial management. If before there were dole out projects, now our focus is on sustainabiity mechanisms. We also have a more focused stakeholderss.
  9. As a GOCC it resolved that as govt it should be the first one to abide the laws. Now as a publicly listed company, it complies with 250 laws and ordinances for CG, energy, envt, health, safety, tax, social laws while adhering to international conventions signed by the country on 5 sectors. Its Board adopted IFC safeguards a year before privatization . As a result of all these regulatory requirements, EDC strengthened its accountability measures.
  10. Sustainability reporting, or in EDC’s case, integrated reporting is viewed as a process rather than an output. EDC's impetus was more of aligning financial performance indicators with other equally important performance areas in environmental and social performance. By aligning them, we gain a clear and focused understabding of how to improve our performance. On the part of the stakeholder, the report increases their understanding of company operations, its management strategy, its prospects and even its risks.
  11. The main question to start the activity is to understand what we want to communicate and to whom. The relevant message is the intersection or common ground on what you want to say and what stakeholders want to hear
  12. What usually happens is companies propose initiatives to be sustainable---savings and efficiency in water use, energy, waste recycilng etc.
  13. When we perceive we are sustainable
  14. Then they report to the stakeholders
  15. When in fact it should be the other way around
  16. FIRST, GET TO KNOW WHAT STAKEHOLDERS WANT TO CHANGE ABOUT YOUR COMPANY PERFORMANCE
  17. Identify the process to bring about the change and bring it to the corporate strategy and embed in the culture
  18. The resolution of the stakeholder expectation can benefit both the company and the stakeholders
  19. Therefore the stakeholders are the starting point
  20. What is the story behind the process of coming out of the report
  21. EDC’s integrated sustainability reporting is a process that heavily involves stakeholder consultations and appropriate communication guided by the materiaiity principles and mgt prescribed approach
  22. The glossy report is just a product of a tedious process undertaken from the employees up to the Management and the Board. For EDC, the value is not in the report or product but in the preparation: a) the selection of the metrics (GRI or EUSS?), b) scrutiny of business impacts and risks (identifying the risks and aligning the risk measures, BC program and the BSC of each employee), c) the resulting insights and subsequent adjustment of the operation and even strategy as needed. We gain a clear and focused understanding of how we can improve our performance
  23. In conclusion,
  24. Involvement of stakeholders to get the answers was learned by EDC early on. In 1990 well before GRI was adopted, our Mt. Apo experience taught us about social acceptability.
  25. By directly talking to the 90 tribal leaders of Mindanao, we developed common ideas that were relevant to both EDC and tribes:
  26. To secure consent from the deities, a ritual was performed
  27. To seal the agreement, contracts were signed
  28. Multisectoral agreement paved the way for the permission to operate the Mindanao geothermal power projects
  29. We first identify our stakeholders and regularly update our stakeholder map. This is the “knowing part of the process”. After an inclusiveness workshop was conducted, from the universe of stakeholders, we identified 31 priority groups. We categorized them into 6 major classes…..Name
  30. Stakeholders are identified based on location, condition, function interests and impacts of the company. There are three clusters-primary, secondary and tertiary. The primary are those who may be directly impacted by our operation and therefore will need continuous nurturing of relationships. Secondary are those which have proximal relation which may have some emerging concerns and tertiary is where engagement is based on mutual need. Cite examples
  31. We have mapped out a reach of 44 primary partner bgys across our 5 project sites
  32. We do an impact assessment of our impacts across the business value chain in terms of our business component vs, the envt components land water people. We also look at how local, national and glpbal issues influence us and how we can help address them
  33. The measures for the identified impacts are then reflected in the project design and in the report. Here are snap shots of the measures
  34. From our lessons from the Mt. Apo Project, we conduct regular stakeholder consultations to look for other concerns and issues that have not been scientifically assessed in the matrix of material topics. This is the engaging part. We conduct info drives, FGD, public hearings and our Com Partner are assigned a number of the 244 associations to sustain engagement
  35. We listen to the stakeholders by conducting every other year a third party social survey, an innovation to the consultation process. We measure how our company, project and people are accepted.
  36. They tell us which modules work and which do not
  37. We assess which are relevant to our stakeholders
  38. These issues are considered material by our stakeholders in 2011. The matrix shows the level of concern on the y axis and the impact of the concern on EDC. Low category are envtl quality,job opportunities and liveihood as these are all taken cared of by EDC. Next in criticality are power rates, employment in EDC, infra and sefety. The most critical to our stakeholders are growth, climate change,work force development and partnerships
  39. The second environmental safeguard to protect the forest and avoid hazards is the reforestation of denuded areas. From 1989-2008, we have planted 7,623 hectares and 7.5M trees.By 2009 we upgraded our reforestation under a BINHI Program. If before we were planting 3oo hectares/yr this time we will plant 1000 has/yr for 10 yrs from 2009-2019. This time onlyIndigenous trees and not only for geothermal recharge but also for storage of carbon to avoid global warming and climate change but also for preserving local biodiversity. The BINHI has4 modules: 1) Tree for life where we plant in between critical forests to close the gap for corridors for wildlife, 2) Tree for Food where we plant agroforests and plantations for thelivelihood of forest dwellers, 3) Tree for the Future where we rescue rare tree species and plant them as future mother trees and 4) Tree for Leisure where good forest areas areConverted to ecotourism sites
  40. Climate change is upon us. In the past 7 years our 5 geo projects were affected by 8 typhoons. Because EDC will need to protect its projects from extreme weather events that cause landslides and floods, EDC extends the sameprotection to its host communities
  41. As another measure, we organized 25 barangay emergency response teams so they can be the first responders while waiting for the disaster councils
  42. We also did the disaster training for the schools (click again)
  43. Using various watershed factors like land, slope, forestt…the vulnerable areas are identified. Here is the sample modelling for Bacman showing the ladnslide prone and flood prone areas
  44. Once we have the data and the measures, there is need for alignment with the organization to ensure execution
  45. Stakeholder focused activities provide on grounded info to the Mgt and Board. These are translated to strategic directions by the BOD. which then dictates the sustainability approach by Mgt. Corp strategic obj are then aligned to the BSC of each staff. EDC’s integrated reporting process becomes more pragmatic, long term and focused on achieving business success on multiple levels. Read.., Corp Sust Excellence Obj are resilient business, excellent processes, exemplary envi performance and strong communitympartnerships
  46. In 2010, EDC strebngthened its integrated sustainability strategy by articulating them through policies and mgt discussions on its approach to sustainability -Read
  47. EDC’S INTEGRATED SUSTAINABILITY REPORTS HAVE HAD DMAs ON ITS IMPACTS ON THE ECONOMY, ENVIRONMENT AND SOCIETY – BOARD PROMULGATED KEY POLICY STATEMENTS TO ADDRESS MAJOR IMPACTS-on approach to eco growth, sustainable envtl responsibility and sustainable social development
  48. These were physically translated to policies
  49. In writing our story, instead of abstract numbers ,we use the storytelling method so that people can relate to them and validate them from real people.
  50. Like traditional forms of financial accounting, a Sustainability Report itself does not indicate that a company is more responsible. Rather, it provides a clearer understanding and disclosure of actions and measures, and ties it to a firm's various bottom lines. Captain Simon Bennett, General Manager of Sustainable Development at Swire Pacific Offshore Operations, has also cautioned against assuming that reporting itself brings direct financial value. Its value, rather, is in its ability to provide a clear picture for continued self-assessment and improvement.
  51. THIS WAS OUR 2011 REPORT. This report describes our commitments to operational, environmental and social responsibilities, which are at the core of our company’s history, culture and business strategy
  52. THIS WAS OUR 2011 REPORT. This report describes our commitments to operational, environmental and social responsibilities, which are at the core of our company’s history, culture and business strategy
  53. Our Approach to report writing—balanced reporting, use of quality data, comprehensive DMA and relevance to the stakeholders.
  54. The statements from Mgt not only report accomplishments but highlight and address issues and challenges. Commitments are made on record and measured the following year. We don’t want investors to need to read in between the lines and do additional research to know there are problems. Examples of candid declarations and resolve are ___
  55.   We also adopt wildlife as an action 
  56. Interestingly, this process of engaging stakeholders has provided an avenue to tell the sustainability story of EDC – from its dramatic creation during the 70s oil crisis to how it successfully paved the way for renewable energy to become a viable power source in the Philippines. By applying the storytelling technique in writing the integrated report, EDC is creating a two-way communication medium with its stakeholders while establishing its pioneering efforts in environmental management and CSR, which were only told in low-key tones before.
  57. We tell the story of the communities’ success like Fedbach from a cashless society ….
  58. And the partnerships for livleihood like Keitech
  59. We advocate and communicate outside the Sustainability report like these