Lopez Holdings

  

Annex A: Reporting Template

Contextual Information

Company Details

 

Name of Organization

Lopez Holdings Corporation (PSE: LPZ)

Location of Headquarters

16F North Tower, RBC Sheridan, Sheridan cor. United Sts.,

1550 Highway Hills, Mandaluyong City

Location of Operations

Metro Manila

Report Boundary: Legal entities (e.g., subsidiaries) included in this report

Parent company only

Business Model, including Primary Activities, Brands, Products, and Services

As a publicly listed holding company invested in sustainable enterprises, LPZ provides management services in Finance and Accounting, Human Resources, Legal, and Public Relations.

Reporting Period

2019

Highest Ranking Person responsible for this report

Salvador G. Tirona, president, COO and CFO

Materiality Process

Sustainability is a major consideration in the company’s risk management process, in which all employees participate to identify risks, opportunities and corresponding action plans with guidance from its board of directors. Feedback received from stakeholders serve as inputs for service improvement.

Lopez Holdings identified the following as stakeholders in its mission statement adopted in 2003 and reviewed annually since: shareholders, affiliates, regulators, creditors, employees and communities in which it operates. Although Lopez Holdings parent has been debt-free since mid-2017, creditors remain as stakeholders at the level of investees, as well as represent short-term creditors, most of whom are suppliers of goods and services that help the company achieve current and future objectives. Chosen material indicators reflect the company’s significant economic, environmental, and social impacts or substantively influence the assessments and decisions of stakeholders.

The material indicators of its major investees are reported in their respective sustainability reports, which are available online along with and as part of their annual reports. Refer to https://fphc.com/investor-relations/annual-reports for FPH and https://www.abs-cbn.com/investors/annual-reports for ABS-CBN. Their respective sustainability frameworks are among the inputs to the risk management process of Lopez Holdings that direct the Parent’s sustainability practices.

ECONOMIC

ECONOMIC PERFORMANCE
Direct Economic Value Generated and Distributed
LPZ (parent only)

Amounts in Php Millions

Direct Economic Value Generated

2019

2018

 

Revenues and Other Income

885

1,020

Economic Value Distributed

   

            

Operating Costs

83

91

 

Employee Wages and Benefits

93

86

 

Payments to suppliers, other operating costs

N/A

N/A

 

Payments to Providers of Capital (Debt and Equity)

459

463

 

Payments to Government

59

72

 

Community Investments

3

3

Economic Value Retained

188

305

LPZ, having invested heavily in FPH and ABS-CBN, relies on dividends declared by these investees to cover parent company commitments to stakeholders. Well established values and control systems, participation in the boards of its investees, lifelong learning for officers and staff, and adoption of internationally accepted standards allow LPZ to continuously operate in a dynamic business environment.

It regularly evaluates risks and opportunities associated with its objectives of providing shareholders with dividends, affiliates with any needed support, regulators and government authorities with timely and full compliance, suppliers with payments, employees with wages and benefits, and beneficiary communities with contributions in cash, kind and volunteer time.

Climate-related risks and opportunities

 Climate-related risks and opportunities affect all organizations. Through the Board Risk Oversight Committee (BROC), LPZ recognizes that the greatest impact of climate change is on the power and energy group under FPH. The strategic decision of the FPH Group to use clean fuel and not build any coal-fired power plants (since 2016) is a conscious effort to reduce its carbon footprint and address the challenge. Targets and metrics are discussed in the report of FPH referenced above and presented to the BROC as part of its annual risk review. Committee members provide comments and insights on climate-related and other risks as part of the process.

For the Parent company, climate-related risks and opportunities are covered by its regular risk management process. These are part of environmental hazards and relate to the increased frequency and severity of extreme weather events, which affect employees when they occur. Mitigation measures in the office setting include raising sustainability awareness through talks, emergency response training and provision of go-bags, among others.

PROCUREMENT PRACTICES

Proportion of spending on local suppliers

Disclosure

Quantity

Units

Percentage of procurement budget used for significant locations of operations that is spent on local suppliers

96

%

The objective of the company’s purchasing process is to obtain products and services needed at the best price and quality at the time needed, to support the company’s commitments to stakeholders. Process owners are responsible for the determination and review of requirements related to the provision of service/s including applicable statutory and regulatory requirements.

The company depends largely on suppliers who are located in Metro Manila, where its principal office is located.

ANTI-CORRUPTION

Training on Anti-corruption Policies and Procedures

Disclosure

Quantity

Units

Percentage of employees to whom the organization’s anti-corruption policies and procedures have been communicated to

100

%

Percentage of business partners to whom the organization’s anti-corruption policies and procedures have been communicated to

50

%

Percentage of directors and management that have received anti-corruption training

100

%

Percentage of employees that have received anti-corruption training

100

%

After the company adopted its Anti-Bribery and Corruption Policy in December 2019, it was posted on the website primarily reach investors. The company's vendor accreditation form was also revised in February 2020 to reflect said policy and agreement of vendors to abide by it. Said policy will be subsequently communicated to existing suppliers.

Consistent with the Lopez Value of integrity, the policy aims to ensure that no act of bribery or corruption is committed by the company, its employees, officers, directors and consultants in gift-giving.

Incidents of Corruption

Disclosure

Quantity

Units

Number of incidents in which directors were removed or disciplined for corruption

0

#

Number of incidents in which employees were dismissed or disciplined for corruption

0

#

Number of incidents when contracts with business partner were terminated due to incidents of corruption

0

#

The Anti-Bribery and Corruption Policy is supported by an earlier adopted Whistleblower Policy, revised in October 2019, which lays the mechanism for reporting of complaints or acts and omissions that are contrary to laws, rules, regulations or policies; unreasonable, unjust, unfair, oppressive or discriminatory; or represent undue or improper  exercise of powers and prerogatives.

ENVIRONMENT

RESOURCE MANAGEMENT

Energy consumption within the organization

Disclosure

Quantity

Units

Energy consumption (renewable sources)

Per DU

GJ

Energy consumption (gasoline)

< 1

GJ

Energy consumption (LPG)

0

GJ

Energy consumption (diesel)

< 1

GJ

Energy consumption (electricity)

70,712

kWh

Reduction of energy consumption

Disclosure

Quantity

Units

Energy reduction (gasoline)

N/A

GJ

Energy reduction (LPG)

N/A

GJ

Energy reduction (diesel)

N/A

GJ

Energy reduction (electricity)

-18,083

kWh

The company endeavors to use resources efficiently. All employees are expected to use only what is necessary to deliver on company commitments. Deliberate wastage of company resources is a serious offense under the company’s Code of Conduct. Electricity consumption at the Parent headquarters relies on the sourcing of its distribution utility (DU), Manila Electric Company. Energy consumption increased as the company completed its first full year at its new offices.

Water consumption within the organization

Disclosure

Quantity

Units

Water withdrawal

N/A

Cubic meters

Water consumption

224

Cubic meters

Water recycled and reused

None

Cubic meters

Water consumption at the Parent headquarters relies on the sourcing of its water utility, Manila Water Company, Inc.

Materials used by the organization

Disclosure

Quantity

Units

Materials used by weight or volume

Not Applicable

 

    *renewable

 

kg/liters

    *non-renewable

 

kg/liters

Percentage of recycled input materials used to manufacture the organization’s primary products and services

Not Applicable

%

The Parent provides management services as a publicly listed holding company. It does not use materials for the manufacture of services, other than office supplies, mostly paper for submission of mandatory disclosures.

Ecosystems and biodiversity (whether in upland/watershed or coastal/marine)

Disclosure

Quantity

Units

Operational sites owned, leased, managed in, or adjacent to protected areas and areas of high biodiversity value outside protected areas

Not Applicable

 

Habitats protected or restored

Not Applicable

ha

IUCN Red List species and national conservation list species with habitats in areas affected by operation

Not Applicable

 

The Parent operates in an office setting and is not actively involved in ecosystems and biodiversity, other than through its investees, where employees may participate in a volunteer capacity.

ENVIRONMENTAL IMPACT MANAGEMENT

AIR EMISSIONS – Not Applicable

GHG

Disclosure

Quantity

Units

Direct (Scope 1) GHG Emissions

0

Tonnes CO2e

Energy indirect (Scope 2) GHG Emissions

<1

Tonnes CO2e

Emissions of ozone-depleting substances (ODS)

0

Tonnes

The Parent operates in an office setting with air emissions limited to the daily transportation requirements of 15 employees.

Air pollutants

Disclosure

Quantity

Units

NOx

0

Kg

SOx

0

Kg

Persistent organic pollutants (POPs)

0

Kg

Volatile organic compounds (VOCs)

0

Kg

Hazardous air pollutants (HAPs)

0

Kg

Particulate matter (PM)

0

Kg

The Parent is not involved in any processes that directly generate air pollutants.

SOLID AND HAZARDOUS WASTES – Not Applicable

Solid Waste

Disclosure

Quantity

Units

Total solid waste generated

 

Kg

     Reusable

Zero

Kg

     Recyclable

Zero

Kg

     Composted

Zero

kg

     Incinerated

Zero

kg

     Residuals/Landfilled

All

kg

The Parent operates in an office setting and solid waste generated is limited to office supplies and their packaging used in regulatory compliance.

Hazardous Waste

Disclosure

Quantity

Units

Total weight of hazardous waste generated

0

kg

Total weight of hazardous waste transported

0

kg

The Parent is not involved in any processes that directly generate hazardous waste.

Effluents

Disclosure

Quantity

Units

Total volume of water discharges

Zero

Cubic meters

Percent of wastewater recycled

Zero

%

The Parent is not involved in any processes that directly generate effluents.

ENVIRONMENTAL COMPLIANCE

Non-compliance with Environmental Laws and Regulations

Disclosure

Quantity

Units

Total amount of monetary fines for non-compliance with environmental laws and/or regulations

0

PhP

No. of non-monetary sanctions for non-compliance with environmental laws and/or regulations

0

#

No. of cases resolved through dispute resolution mechanism

0

#

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 LPZ adhere to Occupational Safety and Health standards, as well as to environmental, safety and health (ESH) regulations enforced by the local government unit of Mandaluyong City, where the office is located.

An ESH Committee leads compliance with applicable OSH/ESH standards through policy recommendations, training, and information dissemination. Officers and staff annually review hazards and risks faced by the organization and act to mitigate or eliminate them, whenever possible.

SOCIAL

EMPLOYEE MANAGEMENT

EMPLOYEE HIRING AND BENEFITS 

Employee data

Disclosure

Quantity

Units

Total number of employees

15

#

     a. Number of female employees

10

#

     b. Number of male employees

5

#

Attrition rate

0

Rate

Ratio of lowest paid employee against minimum wage

2.96

Ratio

Employee benefits

List of Benefits

Y/N

% of female employees who availed for the year

% of male employees who availed for the year

SSS

Y

20

0

PhilHealth

Y

40

0

Pag-ibig

Y

10

0

Parental leaves

Y

20

0

Vacation leaves

Y

100

100

Sick leaves

Y

50

20

Medical benefits (aside from Philhealth

Y

100

80

Housing assistance (aside from Pag-ibig)

N

N/A

N/A

Retirement fund (aside from SSS)

Y

0

20

Further education support

Y

0

0

Company stock options

Y

0

0

Telecommuting

Y

60

40

Flexible-working Hours

Y

50

20

Others:

     

Company loan facilities (education, emergency)

Y

30

20

Clothing allowance

Y

100

60

Rice benefit

Y

100

80

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. It co-sponsored a Walk-the-Talk activity and encouraged a sustainable lifestyle for employees.

In 2019, out of 300 sick leave (SL) days (20 days x 15 employees), 7 employees used their SL for a total of 26 days or 8.67% utilization. This compares with 8.50% utilization in 2018.

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.

Employee Training and Development

Disclosure

Quantity

Units

Total training hours provided to employees

538.5

hours

     a. Female employees

476.5

hours

     b. Male employees

62.0

hours

Average training hours provided to employees

41.4

hours/employee

     a. Female employees

47.6

hours/employee

     b. Male employees

20.7

hours/employee

Lopez Holdings is committed to lifelong 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 5.2 training man-days in 2019, 4.4 training man-days in 2018, and 4.7 training man-hours in 2017.

Labor-Management Relations

Disclosure

Quantity

Units

% of employees covered with Collective Bargaining Agreements

Zero

%

Number of consultations conducted with employees concerning employee-related policies

1

#

As partners in the success of the company, Lopez Holdings employees enjoy merit-based compensation and benefits. The company’s performance management system provides for needs-based learning and active feedback on individual and team performance. Its Code of Conduct and Discipline clearly communicates desired behavior consistent with the Lopez Values, as well as lists sanctions for unacceptable behavior.

Diversity and Equal Opportunity

Disclosure

Quantity

Units

% of female workers in the workforce

67

%

% of male workers in the workforce

33

%

Number of employees from indigenous communities and/or vulnerable sector

3

#

Employees from vulnerable sectors comprise 20% of Parent’s workforce. They enjoy mandatory benefits such as additional leave credits for solo parents and an accessible workplace for the disabled.

WORKPLACE CONDITIONS, LABOR STANDARDS, AND HUMAN RIGHTS

Occupational Health and Safety

Disclosure

Quantity

Units

Safe Man-Hours

1,728

Man-hours

No. of work-related injuries

Zero

#

No. of work-related fatalities

Zero

#

No. of work-related ill-health

Zero

#

No. of safety drills

2

#

Employee safety is 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, and in 2019, they participated in two exit drills at the new headquarters in Rockwell Business Center Sheridan. The company’s ESH committee leads the enforcement of emergency protocols and provides regular ESH updates.

Labor Laws and Human Rights

Disclosure

Quantity

Units

No. of legal actions or employee grievances involving forced or child labor

Zero

#

Do you have policies that explicitly disallows violations of labor laws and human rights (e.g., harassment, bullying) in the workplace?

Topic

Y/N

If Yes, cite reference in the company policy

Forced labor

N

 

Child labor

N

 

Human Rights

N

 

The Code of Conduct sanctions offenses against conduct and decorum. Among serious offenses are using disrespectful, profane, contemptuous, obscene and/or abusive language uttered verbally or by written or printed means, or by means of body signs or gestures, in dealing with, or relating to an immediate superior, subordinate employee, co-employee regardless of rank, title, position, customers, visitors and/or any other person doing or transacting business with the company, within company premises; while violating the Anti-Sexual Harassment Act is a grave offense.

SUPPLY CHAIN MANAGEMENT

Do you have a supplier accreditation policy? If yes, please attach the policy or link to the policy:
__________Yes (Attached: uncontrolled copy of Operation Policy, Annex A)_____________________

Do you consider the following sustainability topics when accrediting suppliers?

Topic

Y/N

If Yes, cite reference in the supplier policy

Environmental performance

Y

Operation Policy, Vendor Accreditation Form (Annex B)

Forced labor

Y

Operation Policy, Vendor Accreditation Form (Annex B)

Child labor

Y

Operation Policy, Vendor Accreditation Form (Annex B)

Human rights

Y

Operation Policy, Vendor Accreditation Form (Annex B)

Bribery and corruption

Y

Operation Policy, Vendor Accreditation Form (Annex B)

Lopez Holdings accredits suppliers who agree to its policy on Operation Planning and Control, which lists as part of criteria for the process and acceptance of services the vendor’s agreement to comply with all pertinent laws and standards. These include those that prohibit forced labor, child labor, human rights and environmental violations, bribery and corruption, among others.

RELATIONSHIP WITH COMMUNITY

Significant Impacts on Local Communities

Operations with significant (positive or negative) impacts on local communities (exclude CSR projects; this has to be business operations)

Location

Vulnerable groups (if applicable)

Does the particular operation have impacts on indigenous people (Y/N)?

Collective or individual rights that have been identified that or particular concern for the community

Mitigating measures (if negative) or enhancement measures (if positive)

Not Applicable

         

For operations that are affecting IPs, indicate the total number of Free and Prior Informed Consent (FPIC) undergoing consultations and Certification Preconditions (CPs) secured and still operational and provide a copy or link to the certificates if available: _________

Certificates

Quantity

Units

FPIC process is still ongoing

Zero

#

CP secured

Zero

#

The Parent operates in an office setting with minimal impact on the local community. Its investees with significant impacts on their local communities report on these in their respective reports referenced in the beginning of this report (see under Materiality Process).

CUSTOMER MANAGEMENT

Customer Satisfaction

Disclosure

Score

Did a third party conduct the customer satisfaction study (Y/N)?

Customer satisfaction

4.2 out of 5

N

Lopez Holdings aims to deliver on its commitments to stakeholders satisfactorily. It has provided dividends to shareholders since 2011, continuing services to affiliates, complete compliance with regulators, timely payments to creditors (suppliers), above industry compensation and benefits to employees and meaningful support to communities in which its investees and corporate foundations operate. Its customer satisfaction score relates to the regular survey conducted at its annual stockholders’ meeting (ASM) that rates both the meeting and the annual report distributed at the meeting. In addition to any surveys so conducted, a post-event meeting of relevant parties is conducted specifically to find opportunities for improvement and review the performance of all those involved, employees and suppliers alike.

Health and Safety

Disclosure

Quantity

Units

No. of substantiated complaints on product or service health and safety

Zero

#

No. of complaints addressed

Zero

#

The Parent ensures the health and safety of stakeholders in the conduct of events, including its ASM and social responsibility projects. The employment of reputable third party service providers helps the company address stakeholder issues satisfactorily. Health and safety risks form part of the risk register reviewed prior to and post-event.

Marketing and labelling – Not Applicable

Disclosure

Quantity

Units

No. of substantiated complaints on marketing and labelling

Zero

#

No. of complaints addressed

Zero

#

The Parent is not involved in services that require marketing and labelling.

Customer privacy

Disclosure

Quantity

Units

No. of substantiated complaints on customer privacy

Zero

#

No. of complaints addressed

Zero

#

No. of customers, users and account holders whose information is used for secondary purposes

Zero

#

The Parent controls stakeholder information in compliance with its Data Privacy Policy, downloadable from this page on the company website: https://lopez-holdings.ph/corporate-governance/policies.

Data Security

Disclosure

Quantity

Units

No. of data breaches, including leaks, thefts and losses of data

Zero

#

The Parent employs third party service providers to ensure the security of its data.

Annex A: Operation Policy

Annex B: Vendor Accreditation Form

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CONTACT US

Lopez Holdings Corporation 
16/F North Tower, Rockwell Business Center Sheridan, Sheridan St. corner United St., 1550 Bgy. Highway Hills, Mandaluyong City, Philippines

  • Trunkline: (632) 8878 0000
  • Fax: (632) 8878 0000 ext 2009