Energy Development Corporation, a renewable energy company in the Philippines and operator of the world's largest vertically integrated geothermal project discusses best practice in sustainability reporting at the 2nd National Conference on Sustainability and Reporting held on Nov. 29, 2012 at the University of Asia and the Pacific.
RSA Conference Exhibitor List 2024 - Exhibitors Data
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
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)
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
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
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
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
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.
Geothermal being site specific, EDC’s projects are located in forest areas that are often in key biodiversity areas of the country
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.
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.
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
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.
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.
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.
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
What usually happens is companies propose initiatives to be sustainable---savings and efficiency in water use, energy, waste recycilng etc.
When we perceive we are sustainable
Then they report to the stakeholders
When in fact it should be the other way around
FIRST, GET TO KNOW WHAT STAKEHOLDERS WANT TO CHANGE ABOUT YOUR COMPANY PERFORMANCE
Identify the process to bring about the change and bring it to the corporate strategy and embed in the culture
The resolution of the stakeholder expectation can benefit both the company and the stakeholders
Therefore the stakeholders are the starting point
What is the story behind the process of coming out of the report
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
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
In conclusion,
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.
By directly talking to the 90 tribal leaders of Mindanao, we developed common ideas that were relevant to both EDC and tribes:
To secure consent from the deities, a ritual was performed
To seal the agreement, contracts were signed
Multisectoral agreement paved the way for the permission to operate the Mindanao geothermal power projects
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
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
We have mapped out a reach of 44 primary partner bgys across our 5 project sites
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
The measures for the identified impacts are then reflected in the project design and in the report. Here are snap shots of the measures
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
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.
They tell us which modules work and which do not
We assess which are relevant to our stakeholders
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
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
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
As another measure, we organized 25 barangay emergency response teams so they can be the first responders while waiting for the disaster councils
We also did the disaster training for the schools (click again)
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
Once we have the data and the measures, there is need for alignment with the organization to ensure execution
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
In 2010, EDC strebngthened its integrated sustainability strategy by articulating them through policies and mgt discussions on its approach to sustainability -Read
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
These were physically translated to policies
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.
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.
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
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
Our Approach to report writing—balanced reporting, use of quality data, comprehensive DMA and relevance to the stakeholders.
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 ___
We also adopt wildlife as an action
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.
We tell the story of the communities’ success like Fedbach from a cashless society ….
And the partnerships for livleihood like Keitech
We advocate and communicate outside the Sustainability report like these