2022 Communication on Progress

Aboitiz Equity Ventures Inc.

Published date

May 30, 2022

No. of questions

61

Supplemental files

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    We provide details of our sustainability initiatives and board performance report in the 2021 Annual Sustainability Report.

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    We are sharing herewith the 2021 Annual Sustainability Report - https://aboitizcom-uploads.s3.ap-southeast-1.amazonaws.com/public/2021+Annual+and+Sustainability+Report.pdf

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    6.1. During the assessment of risk, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    7.1. During the due diligence process, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Due diligence process on this topic is done depending on the criticality of the tiering of suppliers. Assessments are done according tiers. Critical non-tier 1 suppliers: This refers to suppliers that are considered critical (see definition above), and provide their products and services to the supplier at the next level in the chain (tier-2 suppliers and higher) Tier 1 suppliers: This refers to suppliers that directly supply goods, materials or services (including intellectual property (IP) / patents) to the company. Tier 2 and lower: They provide their products and services to the supplier at the next level in the chain.

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    We have the Whistleblowing policy - AEV and AboitizPower are evaluating the adoption of a new whistleblowing portal to encourage team members, team leaders, and third parties to report the suspected or actual violation of the Codes and company policies. Internal rules and procedures were also further developed to assist and guide in the handling, investigation, and resolution of reports or complaints received, whether via the whistleblowing platform or through any other channel.

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    Optional comment
    To support the implementation of the Revised Manuals and the Codes, AEV and AboitizPower both have a Whistleblowing Policy. Through their respective policies, allegations of violations of the Revised Manuals, Codes, and other related policies or of other illegal conduct can be reported through an internal whistleblowing portal in the Aboitiz website (https://aboitiz.com/contact-us/whistleblowing-hotline/), or a dedicated email address (whistleblowing.system@aboitiz.com). The Group is likewise set to roll out a new externally-managed whistleblowing portal that has multiple language capabilities for website intake. It also has a toll-free hotline to encourage team members, team leaders, and third parties to report suspected or an actual violation of the Revised Manuals, the Codes, company policies, and other illegal conducts. Matters reported through the whistleblowing platform are discussed by the ESCG Committee and, if necessary, by the entire Board of Directors. Whistleblowers have the option to address complaints to any of the following persons: A. The team member’s supervisor or business partner’s contact person in the company B. AEV Legal Team C. The Compliance Office of the relevant Business Unit D. The company’s Internal Audit Head E. Chief Legal and Compliance Officer Once the complaints are submitted through the whistleblowing portal or are received by any of the above-mentioned personnel and officers, the complaint will undergo the Aboitiz Group’s investigation standard operating procedure and escalation process. The Group acknowledges that a key component of an effective whistleblowing policy is the whistleblower’s protection from retaliation. As such, each of AEV and AboitizPower’s Whistleblowing Policy ensures the complete anonymity of the whistleblower and that any person raising serious concern in good faith will be protected from reprisals or retaliation. We are in the process of providing the policy translation in the local languages of our regional/southeast Asian operations.

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    9

    Male (%)

    78

    Female (%)

    22

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    11

    Above 50 years old (%)

    92

    From minority or vulnerable groups (%)

    56

    Executive (%)

    11

    Independent (%)

    33
    Optional comment
    The list is found in our 2021 Annual Sustainability Report and 2021 - Definitive Information Statement. We have 9 in the AEV board composition: - [ ] JOANNE G. DE ASIS (Independent Director) - [ ] ROMEO L. BERNARDO (Lead Independent Director) - [ ] MANUEL R. SALAK III (Independent Director) - [ ] SABIN M. ABOITIZ (President and Chief Executive Officer - Executive Director) - [ ] JUSTO A. ORTIZ (Non-Executive Director) - [ ] ANA MARIA A. DELGADO (Non-Executive Director) - [ ] ERRAMON I. ABOITIZ (Non-Executive Director) - [ ] MIKEL A. ABOITIZ (Vice Chairman of the Board - - [ ] Non-Executive Director) - [ ] ENRIQUE M. ABOITIZ (Chairman – Board of Directors - Non-Executive Director).

    13. Do you produce sustainability reporting according to:

    Optional comment
    Link to our ASR https://aboitizcom-uploads.s3.ap-southeast-1.amazonaws.com/public/2021+Annual+and+Sustainability+Report.pdf

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    Financial Report third party assurance

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    In the Company’s first year of participation, AEV assessed its alignment with the UNGC’s 10 business principles. The Company is committed to continuously improving its policies, business processes, and initiatives putting at the forefront its commitment to have an environmentally sound business strategy and relevant processes, and uphold human rights by continuously conducting human rights assessments in the different value chain processes of the company, create a safe, engaged and inclusive labor environment for the AEV’s team members, and operate with high ethical standards of corporate governance and citizenship.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    We have a code of conduct and a list of policies found in our aboitiz.com on our HR related policies.

    Forced labour

    We have a code of conduct and a list of policies found in our aboitiz.com and is stipulated in the HR policies on Rules on Working Hours.

    Child labour

    We have a code of conduct and a list of policies found in our aboitiz.com

    Non-discrimination in respect of employment and occupation

    We have a code of conduct and a list of policies found in our aboitiz.com

    Occupational safety and health

    We have a code of conduct and a list of policies found in our aboitiz.com

    Working conditions (wages, working hours)

    We have a code of conduct and a list of policies found in our aboitiz.com
    Optional comment
    We have the Employee Health and Safety policy, where you can also check the data relating to the Health, Safety, and Welfare of Employees are provided in the Integrated Annual Report and Definitive Information Statement.

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    23
    Optional comment
    On the parent company level, AEV had a total of 229 employees as of February 28, 2022, composed of executives, managers, supervisors, and rank and file employees. There are no existing collective bargaining agreements (CBA) covering any of AEV’s employees. You can also view the full report of the CBAs in the 2021 AEV Definitive Statement on pages 56-57 or refer to this link - https://s3-ap-southeast-1.amazonaws.com/aboitizcom-uploads/wp-content/uploads/2022/01/29155037/AEV-SEC-Form-2021-20-IS-Definitive-Information-Statement-03.28.2022-Full-Reportv2.pdf

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    33

    Non-executive board

    11
    Optional comment
    The senior leadership positions include the chief executive officers of AEV and its subsidiaries, as well as senior executive leaders under the holding company. We have 2 women directors at the board level: Ms. Joanne De Asis (female independent director) and Ms. Ana Delgado serves as director, and holds a position as the Exec VP/Chief Cust Exp & Digital Channel Officer, Union Bank of Philippines.

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    Optional comment
    We are committed to promoting a shareholder mindset through a competitive and sustainable total rewards program that strongly links individual and organizational performance. A total rewards market benchmarking study was completed in 2019 to ensure that the Group’s compensation and benefits program remains competitive. We comply with all the legal requirements and implement them consistently across the Group regardless of age and gender.

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    0
    Optional comment
    We annually report the Total Recordable Injury Rate (TRIR) - Employees. You may refer to our 2021 Annual Sustainability report on pages 150-151.

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0
    Optional comment
    We annually report the Total Recordable Injury Rate (TRIR) - Employees. You may refer to our 2021 Annual Sustainability report on pages 150-151.

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    The company has no reported incident in 2021.

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    There's no recorded incident during the reporting cycle.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    We are committed to making Aboitiz a truly sustainable enterprise that we can entrust to future generations. We can do well by doing good, and always making the right long-term decisions that balance the interests of people, planet, and profit. AboitizPower’s 10-year energy transition strategy will help us achieve our portfolio mix to 50:50 Cleanergy and Thermal capacities by 2030, and will contribute to addressing our country’s energy trilemma of energy security, energy equity, and environmental sustainability. With the inclusion of Climate Risks and engagement with MSCI for the Climate Value at Risk, prompted us to widen our data coverage to include most of the company’s assets, including international footprint, thus having a more accurate and sound GHG emission computation for accounting and reporting. AEV is the first Philippine Signatory to the Task Force on Climate Financial Disclosure, and we are committed to align our disclosures to its framework as it would provide the company better information and preparedness to the impacts of climate-related scenarios in the business. You may also refer to th Group's Aboitiz Sustainability policy found in our Sustainability microsite - https://sustainability.aboitiz.com/sustainability-at-aboitiz/

    Water

    We are committed to making Aboitiz a truly sustainable enterprise that we can entrust to future generations. We can do well by doing good, and always making the right long-term decisions that balance the interests of people, planet, and profit.

    Oceans

    We align our key performance indicators with the United Nations Sustainable Development Goals (SDGs). These highlights our contributions to poverty reduction, education, climate change, responsible consumption, disaster preparedness, technological innovation, and institutional partnership to achieve these shared targets. You may also refer to the Group's Aboitiz Sustainability policy found in our Sustainability microsite - https://sustainability.aboitiz.com/sustainability-at-aboitiz/

    Forests / Biodiversity / Land Use

    We are committed to making Aboitiz a truly sustainable enterprise that we can entrust to future generations. We can do well by doing good, and always making the right long-term decisions that balance the interests of people, planet, and profit. We also align our key performance indicators with the United Nations Sustainable Development Goals (SDGs). These highlights our contributions to poverty reduction, education, climate change, responsible consumption, disaster preparedness, technological innovation, and institutional partnership to achieve these shared targets. You may also refer to the Group's Aboitiz Sustainability policy found in our Sustainability microsite - https://sustainability.aboitiz.com/sustainability-at-aboitiz/

    Air Pollution

    We are committed to making Aboitiz a truly sustainable enterprise that we can entrust to future generations. We can do well by doing good, and always making the right long-term decisions that balance the interests of people, planet, and profit. We also align our key performance indicators with the United Nations Sustainable Development Goals (SDGs). These highlights our contributions to poverty reduction, education, climate change, responsible consumption, disaster preparedness, technological innovation, and institutional partnership to achieve these shared targets. You may also refer to the Group's Aboitiz Sustainability policy found in our Sustainability microsite - https://sustainability.aboitiz.com/sustainability-at-aboitiz/

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    We are committed to making Aboitiz a truly sustainable enterprise that we can entrust to future generations. We can do well by doing good, and always making the right long-term decisions that balance the interests of people, planet, and profit. In the Aboitiz Group, we believe in taking serious action towards creating a sustainable future. By aligning with the UN Sustainable Development Goals, we implement and strengthen our sustainability programs that aim to minimize and address the impact of climate change on the environment and society. Our unified waste management framework called Wealth Out of Waste (WOW) is designed to increase efficiency, engagement, and even revenue. In support of RA 9003 (Solid Waste Management Act) and RA 6969 (Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990), our SBUs identify waste management plans, develop policies, and implement and audit processes for the management of hazardous solid waste and effluent. Through WOW, we are able to identify gaps and consolidate our existing waste management efforts into a single direction that maximizes positive impact both internally and externally. You may also refer to the Group's Aboitiz Sustainability policy found in our Sustainability microsite - https://sustainability.aboitiz.com/sustainability-at-aboitiz/

    Energy & Resource Use

    We are committed to making Aboitiz a truly sustainable enterprise that we can entrust to future generations. We can do well by doing good, and always making the right long-term decisions that balance the interests of people, planet, and profit. In the Aboitiz Group, we believe in taking serious action towards creating a sustainable future. By aligning with the UN Sustainable Development Goals, we implement and strengthen our sustainability programs that aim to minimize and address the impact of climate change on the environment and society. Our Race to Reduce (R2R) program that we implement in our SBUs addresses our concerns on biodiversity, resource efficiency, and waste management. Energy fuels our capacity to deliver our services and products to the market. However, we recognize challenges such as climate change and the finite nature of resources. To achieve transformation, we need to rethink our processes and continuously find ways to be more efficient in our energy consumption and increase our use of renewable energy. You may also refer to the Group's 2021 Annual Sustainability Report pages 160-163 - https://aboitizcom-uploads.s3.ap-southeast-1.amazonaws.com/public/2021+Annual+and+Sustainability+Report.pdf

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    AEV and its Subsidiaries, Associates, and Joint Ventures are subject to extensive, evolving and increasingly stringent safety, health and environmental laws and regulations. These standard laws and regulations that govern AEV’s business operations include the Philippine Clean Air Act (RA No. 8749), Ecological Solid Waste Management Act (RA No. 9003), Clean Water Act (RA No. 9275), Toxic Substances and Hazardous and Nuclear Wastes Control Act (RA No. 6969), and Philippine Environmental Impact Statement System (Presidential Decree No. 1586), address, among other things, air emissions, wastewater discharges, the generation, handling, storage, transportation, treatment and disposal of toxic and hazardous chemicals, materials and waste, workplace conditions, and employee exposure to hazardous substances. Power plant operations are considered environmentally critical projects for which an Environmental Impact Study and an Environmental Compliance Certificate are mandatory. AEV has incurred, and is expected to continuously incur, operating costs to comply with these laws and regulations. However, these costs cannot be segregated or itemized as these are embedded in, and are part and parcel of, each SBU’s overall system in compliance with both industry standards and regulatory requirements. Each SBU has appointed and designated a Pollution Control Officer to closely monitor compliance with the requirements of these regulations. AboitizPower and its Subsidiaries have allocated budgets for environmental expenditures covering costs for waste disposal, remediation, pollution control, environmental initiatives and programs. All facilities are in compliance with regulatory requirements, thus noting zero spending for remediation costs. In 2021, AboitizPower and its Subsidiaries did not incur any major sanctions for violation of environmental standards and law. AboitizPower continues to be cognizant of new opportunities to comply with regulatory requirements and improvement of systems to promote safety and prevent adverse impacts to the environment or affected ecosystems. Compliance with environmental laws increases a company’s operational costs, though in most cases the costs are only a small fraction of a firm’s total costs. For financial institutions like UnionBank, relevant environmental laws and regulations require the appointment of Pollution Control Officers, Managing Heads, installation of pollution control equipment, and incorporation of sustainable practices in the Bank’s operational processes. Compliance with these requirements has minimal effect on the Bank’s operational cost and productivity. Environmental laws influence the Bank’s concept in designing its offices to ensure compliance as provided by relevant regulatory agencies. Compliance with the environmental laws has benefitted the organization in terms of illnesses averted through the reduction of airborne particulates, hazardous waste disposal, and water potability. There were no reported incidents of non-compliance with environmental laws and regulations. In addition, UnionBank has entered into partnerships with Plastic Bank and Humble Sustainability to recycle, upcycle, and recover plastic wastes and non-hazardous wastes as part of the Planet pillar and Inclusive Prosperity focus area of the Bank’s sustainability program. Finally, UnionBank is in the process of renewing its partnership with Globe Telecoms to dispose of electronic waste via the One Phone program, where the bank collects old and unused electronic gadgets and equipment so they may be properly handled and avoided being dumped in landfills. The Food Group is working with relevant Environmental regulators with a dedicated Quality, Safety, Health Environment and Process Department for both existing operations and future plans. Compliance to environmental laws is included in key decision points such as investing in new swine farms and new feed mills to include measures and build appropriate facilities that lessen the impact on the environment. Infracapital, Aside from water quality, DENR standards on air quality, hazardous and solid wastes are constantly adhered to as part of the Environmental Impact Assessment System. Through environmental monitoring, assessment and evaluation in line with existing standards and regulations, pollution mitigation is improved. With LIMA Water fully committed to its environmental compliance, more initiatives and innovations are carried out to continuously adapt and further address the vulnerability of the environment due to economic advances.

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    3921842

    Scope 2 Emissions

    Emissions (tCO2e)

    5690231

    Scope 3 Emissions

    We are in the process of reviewing our GHG inventory and accounting process.

    Emissions (tCO2e)

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    8. Has the organization acted to support climate change adaptation and resilience?

    Optional comment
    You may also check our climate-related initiatives as part of our climate strategy.

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    Optional comment
    We are computing for the total energy consumption, but you can refer to our annual report lInk https://aboitizcom-uploads.s3.ap-southeast-1.amazonaws.com/public/2021+Annual+and+Sustainability+Report.pdf

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    4209.473

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water consumed in regions with high or extremely high water stress (%)

    Optional comment
    Our water consumption covers our corporate office and subsidiary facilities. Majority of our water source is from water utility providers and breakdown of sources is unknown.

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    Optional comment
    We are in the process of including water intensity in our disclosures.

    Sector-specific: Air pollution

    17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

    Emissions (tCO2e)

    Unknown

    Not applicable (Please provide additional information)

    NOx

    SOx

    Volatile Organic Compounds (VOC)

    Hazardous air pollutants (HAP)

    Particulate matter (PM10)

    Persistent organic pollutants (POP)

    Other (please specify in text box)

    Sector-specific: Waste

    18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

    Waste Generated (t)

    4344
    Optional comment
    We are reporting waste generation covering the 5 Stratrgic Business Units and the corporate center of the holding company.

    19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

    Hazardous Waste Ratio (%)

    We are reporting hazardous waste not as percentage from generated waste but in absolute numbers in tons. Our hazardous waste reported for FY 2021 is 45,537 tons covering our 5 Strategic Business Units.

    20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

    Single-use plastics (tonnes)

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Our environmental programs are determined based on our key material issues, regulatory requirements of our government, stakeholder concerns and opportunities for collaboration and partnerships towards addressing the sustainable development goals. Any environmental concern for remediation is processed through our whistleblowing policy and processes.

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    We have anti-bribery and corruption guidelines. In 2021, the Company Revised the Code of Ethics and Business Conduct to reflect the Group’s commitment to conduct business in a sustainable manner, prevent bribery and anti-corruption, money laundering, and comply with relevant international trade and data privacy laws. In support of this mandate, AEV adopted new guidelines to combat bribery and corruption in 2021. The guidelines provided measures and protocols to complement existing business processes, monitor compliance or deviations from the Codes, and prohibit bribery and corruption. In addition, the anti-corruption guidelines aim to further strengthen the Company’s internal controls and procedures in pursuing its commitment to provide social and economic development programs to targeted communities and beneficiaries. Refer to this document link - https://s3-ap-southeast-1.amazonaws.com/aboitizcom-uploads/wp-content/uploads/2021/08/05133704/5.1-AEV_Aboitiz-Code-of-Ethics-and-Business-Conduct.pdf
    Optional comment
    You can also find a disclosed report in the 2021AEV Definitive Information statement on page 191. Amended Code of Ethics and Business Conduct to (i) strengthen the Company’s commitment to sustainability principles, and (ii) further elaborate on the Company’s commitment to its stakeholders, particularly on anti-bribery and anti-corruption, trade compliance, and anti-money laundering. Related guidelines on (i) anti-corruption, (ii) gift, meals, and entertainment, and (iii) business partner due diligence were also approved by senior management to operationalize the amendments to the Code. You may refer to this link - Refer to this link - https://s3-ap-southeast-1.amazonaws.com/aboitizcom-uploads/wp-content/uploads/2022/01/29155037/AEV-SEC-Form-2021-20-IS-Definitive-Information-Statement-03.28.2022-Full-Reportv2.pdf

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Optional comment
    The Code of Ethics and Business Conduct (Code) adopted by the Company in 2002 and updated in 2016 sets out how the Executive Management, team leaders and team members can achieve and maintain ethical standards in the Company’s day to day operations and summarizes the Company’s fundamental policies and directives. Since the approval of the Amended Code, Directors, Officers, Team Leaders and Team Members review and affirm their personal commitment to the Code by signing the Personal Commitment Form on an annual basis. Note: Policy on conflict of interest (explain)

    Prevention

    3. Who receives training on anti-corruption and integrity?

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    Optional comment
    Our HR worked closely with our Corporate Governance and Compliance team in the conduct of the training, making sure that all employees are aware and updated, and aligned with our values of Integrity and Responsibility. All employees are required to affirm their commitment to the code of ethics yearly.

    4. Does the company monitor its anti-corruption compliance programme?

    This is done through the whistleblowing portal, and internal audit.
    Optional comment
    In 2021, we amended the Company’s Whistleblowing Policy. The Company is evaluating the adoption of a new whistleblowing portal to encourage team members, team leaders and third parties to report suspected or actual violation of the Code and Company policies. Procedures were also developed to assist and guide in the handling, investigation, and resolution of reports or complaints received, whether via the whistleblowing platform or through any other channels.

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    0
    There are no major deviations from the Revised Manual and other governance-related policies as of the date of this report. There were also no corruption-related incidents reported in 2021.

    Confirmed during the current year, and related to this year

    0
    There are no major deviations from the Revised Manual and other governance-related policies as of the date of this report. There were also no corruption-related incidents reported in 2021.
    Optional comment
    Amended the Company’s Whistleblowing Policy. The Company is evaluating the adoption of a new whistleblowing portal to encourage team members, team leaders and third parties to report suspected or actual violation of the Code and Company policies. Procedures were also developed to assist and guide in the handling, investigation, and resolution of reports or complaints received, whether via the whistleblowing platform or through any other channels. 192 SEC FORM 20 - IS (INFORMATION STATEMENT) There are no major deviations from the Revised Manual and other governance-related policies as of the date of this report. There were also no corruption-related incidents reported in 2021. For a full discussion on the Company’s corporate governance initiatives, please refer to the 2021 Consolidated Annual and Sustainability Report, the 2021 IACGR, which will be available at www.aboitiz.com.

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    Optional comment
    There were no corruption-related incidents reported in 2021. For a full discussion on the Company’s corporate governance initiatives, please refer to the 2021 Consolidated Annual and Sustainability Report, the 2021 IACGR, which will be available at www.aboitiz.com.

    7. Does your company engage in Collective Action against corruption?

    We in the Aboitiz Group commit to a sustainable future and ensure that the organization will continue to thrive in the next 100 years. We have established our participation and commitments to the United Nations Global Compact (UNGC) and the Ten Business Principles. As Conglomerate, we work together against corruption in all its forms, including extortion and bribery. And as committed, we created the Anti-corruption Policy and the Whistleblowing Policy. Part of the commitment of the code of ethics is against bribery and corruption. We are a member of the Good Governance Advocates and Practitioners of the Philippines (GGAPP).

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    The Company is likewise set to roll out a new externally-managed whistleblowing portal that has multiple language capabilities for website intake. It also has a toll-free hotline to encourage team members, team leaders, and third parties to report suspected or an actual violation of the Manual on Corporate Governance, the Code of Ethics, company policies, and other illegal conducts. The Company has a Whistleblowing Policy to support the implementation of the Revised Manual and the Code of Ethics. Through this policy, allegations of violations of the Revised Manual, the Code of Ethics, or of other illegal conduct can be reported through an independent whistleblowing portal. Matters reported through the whistleblowing platform are discussed by the Board ESCG Committee and, if necessary, escalated to the entire Board. In 2021, AEV updated its Code to align with international best practices and promote the Company’s Environmental, Social and Governance efforts. The following policies and guidelines were approved by the Board of Directors: a) Amended Code of Ethics and Business Conduct to (i) strengthen the Company’s commitment to sustainability principles, and (ii) further elaborate on the Company’s commitment to its stakeholders, particularly on anti-bribery and anti-corruption, trade compliance, and anti-money laundering. Related guidelines on (i) anti-corruption, (ii) gift, meals, and entertainment, and (iii) business partner due diligence were also approved by senior management to operationalize the amendments to the Code; b) Amended the Company’s Whistleblowing Policy. The Company is evaluating the adoption of a new whistleblowing portal to encourage team members, team leaders and third parties to report suspected or actual violation of the Code and Company policies. Procedures were also developed to assist and guide in the handling, investigation, and resolution of reports or complaints received, whether via the whistleblowing platform or through any other channels. Pursuant to its commitment to transparency and accountability, AEV’s website, www.aboitiz.com has its own dedicated corporate governance webpage which serves as a resource center and library for its stakeholders. AEV also publishes a consolidated Annual and Sustainability Report and IACGR on its website at www.aboitiz.com.