Lopez Holdings

Sustainability Report

Sustainable development has been defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” (Our Common Future, 1987) Corporate social responsibility (CSR) is now integrated into this discipline which calls for the convergence of economic development, social equity and environmental protection.

As a publicly listed holding company that provides management services in Finance and Accounting, Public Relations, Human Resources and Legal Services, the office operations of Lopez Holdings Corporation (LPZ) are governed by Environmental, Health and Safety (ESH) standards, with officers and staff members doing multiple tasks. 

Profile of Lopez Holdings (parent only) workers

Training and Development

Lopez Holdings is committed to continuous learning. It has an established process for identifying the learning and development needs of employees at every level. It provides resources for necessary and appropriate learning solutions, consistent with corporate goals. The corporate learning and development plan is reviewed and updated on an annual basis. The plan includes leadership, behavioral and technical skills trainings.

The company aims to have each employee undergo at least three training man-days per year. Employees underwent learning sessions with an average of 4.7 training man-hours in 2017, 2.76 training man-days in 2016, and 3.56 training man-days in 2015.

Employee Wellness and Safety

Lopez Holdings treats employees as partners in the success of the company. Their health and well-being are of prime importance in sustaining productivity and company growth. Health benefits, including a generous hospitalization plan, constitute a significant component of the company’s employment package. Regular employees undergo annual medical examinations and flu vaccinations, as well as seminars on physical, emotional, financial and spiritual wellness. The company also enrolled them in an emergency assistance program provided by a third party. It co-sponsored a Walk-the-Talk activity and encouraged a sustainable lifestyle for employees.

The rate of absences on account of sickness has been almost nil in 2017, 2016 and 2015.

Employee safety is also important to the company. The company ensures that employees are regularly trained in maintaining safety in the workplace and in preparing for and dealing with emergencies. They undergo building exit drills at least once a year. An ESH committee leads the enforcement of emergency protocols and provides regular ESH updates. To-date, the company has had no incidents of injuries in the workplace.

Employee Welfare

It is the policy of the company to look after the general welfare of its employees. The company provides a wide range of benefits to meet employee needs, including life insurance; health care and other medical benefits that extend to immediate family members; vacation and sick leave entitlement; rest and recreation programs; and financial assistance in the form of loan facilities. The company completed its Employee Stock Purchase Plan and Employee Stock Option Plan in 2016.

Corporate Sustainability

LPZ derives income from dividends declared by investees FPH and ABS-CBN, which are both on well on their way on the path of sustainability. LPZ supports such efforts to the extent afforded by its resources. 

FPH (consolidated)

Amounts in Php Millions

Reference: GRI 201-1 Direct Economic Value Generated and Distributed
ABS-CBN (consolidated)

Reference: GRI 201-1 Direct Economic Value Generated and Distributed

Energy and water consumption are tracked as part of the company’s environmental stewardship, with the objective of efficiently using resources and minimizing waste.

Lopez Holdings

Reference: GRI 302-1 Energy consumption within the organization

Adapting for Sustainability

The investees of Lopez Holdings endeavor to do business in a holistic manner to balance social, environmental and economic interests toward a sustainable future.

The first company that led the sustainability path in the Lopez Group belongs to the power sector of First Philippine Holdings Corporation (FPH), namely Energy Development Corporation (EDC), the renewable energy subsidiary of FGEN. EDC had been faithfully reporting its sustainability practices through its groundbreaking integrated annual and sustainability first published in 2010. It was the first report by a Philippine company to be validated by Amsterdam-based Global Reporting Initiative (GRI), which has a widely used and comprehensive sustainability reporting framework covering economic, environmental, social and governance performance.

Since then, EDC has led the way, not just for the Lopez Group, but also for other Philippine energy companies, in sustainability practices. Its annual performance reports have consistently shown increasing positive environmental impact, while at the same time working to minimize environmental risks. Its stewardship of its assets is focused on watershed management, which includes social forestry, biodiversity protection and monitoring, forest protection, and ecosystem evaluation.

As evidence of its continuing leadership in sustainable investments, EDC from August 2016 to the first quarter of 2018 or three straight years since the inception of the initiative became the first and only Filipino company in the Carbon Clean 200 list of publicly traded companies. The Carbon Clean 200 counts the world’s 200 largest public companies ranked by clean energy revenues and are said to be “leading the way with solutions for the transition to a clean energy future.” The ranking was launched in 2016 by the non-profit group, As You Sow of Oakland, California and media and research group Corporate Knights of Toronto, Canada. Companies need to have market capitalization above $1 billion and earned 10% of revenue from green energy to qualify for the Carbon Clean 200.

EDC is the first company in Philippines to achieve a carbon-neutral status, or one that absorbs more carbon dioxide than it emits to the environment. In 2017, EDC generated 8,531.5 gigawatt hours that helped the Philippines avoid 7.5 million tons of carbon dioxide. Its installed capacity of 1,458 megawatts from geothermal, wind, solar, and hydro power sources accounts for 21% of the total installed renewable energy in the country.

FGEN, the mother company of EDC, is on its third year of sustainability reporting. FGEN’s sustainability path is focused on providing the country with much-needed energy that comes from local low-carbon sources. More than its energy operations, the organization not only safeguards biodiversity and environmental systems, but also ensures that its presence spurs development on the local level. For 2017, First Gen’s sustainability focus is how its sustainable energy solutions and innovations are contributing to the SDGs.

FPH followed the initiatives of its sustainability leaders-subsidiaries (FGEN and EDC) and embarked on a sustainability path two years ago. In its maiden year in 2016, FPH issued its corporate sustainability policy highlighting its goal of contributing to the Filipino’s future through responsible growth and investment and its aspiration for a low carbon future. The conglomerate systematically installed the sustainability philosophy across its subsidiaries as follows:

• Selection of 28 material sustainability indicators to comprise its specific disclosures

• Advocacy for climate change action through climate pillars (carbon foot printing to monitor and manage emissions; water management to reduce impact to water scarcity; energy management to produce and consume energy efficiently; supply chain management to extend positive sustainability impact to contractors; and waste management to minimize waste and prevent pollution)

• Aligning its business objectives with the 17 SDGs;

• Capacity building of the subsidiaries on focal areas

FPH issued its maiden consolidated Sustainability Report for transparency, which was reviewed against GRI standards by an external review committee composed of experts on environment and climate change policy, society and economics organized by the Center for Social Responsibility of the University of Asia and the Pacific. Eight FPH subsidiaries and FPH parent participated in the 2016 consolidated sustainability report. 

For the above process in installing its sustainability program, FPH won the maiden Bell Sustainability Award of PSE in November 2016.

In 2017, FPH deepened its sustainable path through:

• Employee embedding program known as Step Up

• Setting protocols for its sustainable actions

• Setting of carbon reduction targets for more definite climate contributions

• Supported the installation of the Total Carbon Column Observing Network (TCCON) for Asia Pacific that are assessed with other 23 global stations for an accurate measure of the world carbon

• Second Sustainability Report for 2017

FPH is currently 66% carbon neutral. In addition to the 12 million trees planted by EDC for the past two decades, FPH added 164,622 trees in 2017. The total cost of environmental and social initiatives and the details are found in the tables below. 

P55.2 MILLION ENVIRONMENTAL CONTRIBUTIONS

P185.9 MILLION SOCIAL CONTRIBUTIONS

ABS-CBN moved forward in its sustainability reporting initiative in 2017, with the training of its sustainability champion and agreement on pilot areas. Since 2016, ABS-CBN had been reporting metrics on economic contribution and environmental stewardship, in addition to employee development and engagement and corporate social responsibility reports that have been already been available in prior years. 

Foundations

In 2017, Lopez Holdings Corporation invested P2.9 million in sustaining the operations of Lopez Group Foundation, Inc. (LGFI) and its member foundations, particularly in the areas of arts and culture through Eugenio Lopez Foundation, Inc. which administers the Lopez Museum and Library; disaster relief and rehabilitation through ABS-CBN Lingkod Kapamilya Foundation, Inc. (ALKFI); and education through Knowledge Channel Foundation, Inc. (KCFI), Ang Misyon, Inc., and Phil-Assistance Foundation, Inc. (PAAFI). These causes are consistent with its vision to improve the lives of Filipinos, and represent strategic investments in society and the environment.

Lopez Group Foundation, Inc. (LGFI)

In 2017, LGFI welcomed the entry of Sikat Solar Foundation and Mount Apo Foundation to the Lopez CSR Council. A total of 17 Lopez Group companies, foundations and councils were represented in its annual general assembly for updates on the CSR programs and projects of LCC members. To respond to the needs of its members, LGFI conducted two toolkit sessions: one of fundraising and another on the sustainable development goals (SDGs). The session on SDGs gave participants from 19 companies and foundations an overview of the 17 goals, 169 targets and 232 indicators that address global development concerns. The SDGs envision freedom from poverty, hunger, illiteracy, sickness, and security threats as a way to achieve a sustainable, peaceful, and prosperous world by year 2030.

LGFI and member foundation Ang Misyon, Inc., in partnership with Global Peace Foundation, University of Asia and the Pacific, and the Philippine Educational Theater Association, held a two-day training for 45 scholars of the Orchestra of the Filipino Youth. Participants, aged 11 to 24 years old, were selected from various Ang Misyon satellites, including Metro Manila, Cebu, Batangas, Talim Island in Laguna, and Rizal. Ang Misyon aims to improve the lives of musically talented, underprivileged youth through classical music education and performance. 

LGFI is certified by the Philippine Council for NGO Certification (PCNC) and is an auxiliary social welfare and development organization registered with the Department of Social Welfare and Development (DSWD).

Eugenio Lopez Foundation, Inc. / Lopez Museum and Library (LML)

LML began 2017 with Plotting Points, a three-day nationwide summit presented through a grant by the National Commission on Arts and Culture (NCCA). With delegates and speakers from different regions of the Philippines, the summit brought together museum practitioners to create an opportunity to renew networks and collaboration among colleagues. 

In celebration of the National Heritage Month, LML presented Occupy Escolta: Reviving the Queen of the Street, a panel discussion on projects for the preservation of the once-glorious Escolta Street, not only to safeguard the period buildings and structures, but also to resuscitate the involvement of the community in promoting the value of keeping historical spaces intact. 

In conjunction with Pauses of Possibility, the first exhibition of 2017, LML invited Alliance Française and Chef Claude Tayag for L’exposition d’art en France, a talk that reintroduced the works of lesser known Filipino artist, Macario Vitalis and the Philippine Artist Residency Program (PARP). The residency is one of the many efforts of different cultural diplomatic arms in the country to provide platforms for artists to go abroad, interact with other artists, create and present their works. 

A series of lectures in partnership with the Ateneo de Manila’s Department of History, Off the Pages highlighted select segments in the rich collection of the Lopez Library. Four lectures were presented: Rizal the Blockbuster Star; Translation, Transmission, and Paleography; InHABIT; and Of Memory and Forgetting, with the goal of inspiring more students, enthusiasts, scholars and researchers to activate the possibilities of this Filipiniana special collection. 

For its final exhibition run at the Benpres Building, LML set up two shows for the last half of 2017: The Given Order curated by Ricky Francisco, and What do I say to a Giant curated by Thea Garing. 

The Given Order approached the Catholic religion from visual explorations that tackled different tangents of faith. To augment this exhibition, LML partnered with the UP Vargas Museum for Vargas Conversations: Roberto Roldan and Fr. Jason Dy. Dr. Patrick Flores, curator of Vargas Museum moderated the presentations and the conversation of the guest artists of the two institutions about their art practices. 

In celebration of the centennial of Nick Joaquin, LML set up What do I say to a Giant. The library exhibition tackled the life, career and works of a prominent figure in Philippine history and National Artist for Literature, Nick Joaquin as his alter-ego — Quijano de Manila. 

Contributing one of the largest loans from a single collection, LML successfully brought ten paintings by Juan Luna to be part of the National Gallery of Singapore’s (NGS) exhibition, Between Worlds: Raden Saleh and Juan Luna. The Luna component of the exhibition, curated by Lisa Chikiamco, featured works of the Filipino painter loaned from various private and public collections both in the Philippines and abroad, in addition to those in the NGS’ permanent collection. LML’s collections management department and conservation center worked in close collaboration with representatives from the NGS for the preparation of the artworks.

ABS-CBN Lingkod Kapamilya Foundation, Inc. (ALKFI)

Since 1989, ALKFI has been at the forefront of development programs that uniquely affect strategic sectors in the Philippines – each one with distinct goals and considerable impact. A duly registered non-stock, non-profit organization, ALKFI addresses the plight of the disadvantaged while also ensuring that donations are properly allotted and utilized. 

ALKFI partnered with the National Nutrition Council to produce a situational documentary, Rikipedia, to promote the importance of the first 1,000 days of a child. The show, consisting of 25 episodes, aims to educate parents on proper nutrition for their growing families.

BANTAY BATA 163

Bantay Bata celebrated 20 years of service to the Filipino child in 2017. The program reported the following as work done for the year:

BANTAY KALIKASAN

Launched in 1998, Bantay Kalikasan (BK), ALKFI’s environment advocacy arm, has propelled massive changes towards the protection and sustainability of the country’s natural environment. 

ALKFI-BK, together with First Gen Corporation (FGEN) and other sponsors, staged the second Verde Island Passage Swim Junkie Challenge in Punta Malabrigo, Lobo, Batangas. The event is a means to protect the ecosystem of Verde Island Passage, known as the “center of the center of the world’s marine biodiversity”. 

BK continued to receive donations of used lead acid batteries and used industrial oil from partners that wish to preserve the environment through proper waste disposal.

OPERATION SAGIP

Through the outpouring of support from donors, Operation Sagip (formerly known as Sagip Kapamilya) provided immediate relief assistance to 55,664 families or 278,320 survivors of calamities and disasters in 2017. This includes more than 24,000 families served with relief goods in the Marawi crisis.

More than 100,000 elementary students received schoolbags and school supplies through “Gusto Kong Mag-Aral” project. In addition to rescue and relief operations, ALKFI-Operation Sagip and donors follow through with schoolbags and school supplies to ensure children in disaster-hit areas can continue their studies with the sufficient supplies.

Knowledge Channel Foundation, Inc. (KCFI) 

KCFI shared its programs and projects with educators, students and delegates from different countries at the 2017 Global Peace Convention, a gathering of global leaders from different sectors to share best practices and develop collaborative strategies in education, health, environmental sustainability, community-driven development and conflict resolution.

Since 1999, KCFI has been bringing learning to more than 7,000 public schools on-air through the Knowledge Channel, online through www.knowledgechannel.org and YouTube: knowledgechannelorg, and offline through the Knowledge Channel On-Demand packages and the Knowledge Channel Portable Media Library. On air, Knowledge Channel is available on ABS-CBN TV Plus, SKY Cable and SKY Direct. 

In 2017, close to 500 schools around the country were provided with access to Knowledge Channel's multimedia learning resources of videos, games and session guides for K-to-12. More than 400 schools were also trained on 21st century teaching strategies via its Learning Effective through Enhanced and Evidence-Based Pedagogies (LEEP) program. Among these are 85 schools which had been survivors of recent calamities. Over 250 teachers and principals of said schools were also provided with LEEP with Psychological First Aid (LEEP-PFA). This was done in partnership with ALKFI's Operation Sagip. 

KCFI, the Department of Science and Technology-National Capital Region and Philippine Foundation for Science and Technology signed a memorandum of agreement (MoA) to develop a series of short videos on science experiments. KCFI also collaborated with Insular Foundation for the development of two new episodes of Estudyantipid, which orients and educates students on wise savings and investment behaviors. 

Phil-Asia Assistance Foundation, Inc. (PAAFI)

PAAFI assists elementary, high school and college students in Metro Manila public schools by providing a monthly allowance to help with transportation, uniforms and projects. In addition, it conducts regular social worker visits, medical and dental missions for scholars, cultural exposure and values education in partnership with local parishes.

In 2017, incentives to well-performing scholars brought them to Manila Ocean Park and the National Museum and Planetarium. The PAAFI Medical and Dental Mission was done in partnership with ALKFI, which provided doctors and dentists, medicines, soup kitchen, mobile classroom, art workshop and eyeglasses for the parents of the scholars.  A hundred parents received livelihood training, with Live for Others Movement president Lito Gualdajara teaching them how to culture mushrooms.

PAAFI was also able to provide portable libraries to each of its partner parishes.

Since 1987, PAAFI has given 15,147 grants, with 1,178 scholars enrolled for schoolyear 2017-2018. It is certified by the PCNC and registered with the DSWD. 

Oscar M. Lopez Climate Change Adaptation and Disaster Risk Management Foundation (OML Center)

The OML Center generates and supports practical, evidence-based solutions to the threats posed by climate change. It provides business and policy sectors with the knowledge needed to make climate-informed decisions. It provides grants to researchers who use science and technology to build resilient communities, organizes and sponsors events that promote climate science research for environmental protection, and publishes analyses on the state of the Philippine climate and recommendations to mitigate climate-related risks.

First Philippine Holdings Corporation (FPH) provided the seed fund to establish OML Center in 2012. EDC provided space and equipment for its initial office setup. It continues to receive funding, operations, and in-kind contributions from the Lopez Group, in particular from FPH, FGEN, EDC, LGFI and KCFI.

It is accredited by the Department of Science and Technology as a science foundation and by the PCNC as a donee institution.