Documente Academic
Documente Profesional
Documente Cultură
102-3
THE CONTENTS
102-45
What does it mean to make
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an empowered choice?
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REPORT
102-53
For First Gen Corporation (First Gen), it means making the hard
decisions in the short term to realize better outcomes in the
04
102-54
long term. We believe that we are always one choice away from
a better world, one decision away from creating an alternate
President's Message
future for the next generation.
07
The cover of our 2018 Sustainability Report projects the REPORTING FRAMEWORK GRI Standards
alternate future we can create for the next generation if we APPROACH TO GRI In accordance ‘Comprehensive’
2018 Sustainability Performance Highlights
make an empowered choice now. It underscores that the REPORTING PERIOD January 1 to December 31, 2018
continued dependence of certain industries on coal-fired power REPORTING CYCLE Annual
plants not only poses exorbitant costs to businesses, it also
negatively affects the health and well-being of communities An Empowered Choice is the fourth Sustainability Report 08 About First Gen
and the environment. of First Gen Corporation (“First Gen,” “the Company”). This report
has been prepared in accordance with the GRI Standards:
As such, the cover provides readers a stark contrast between
a world dependent on coal and a world that has made the
Comprehensive option and the Electric Utilities Sector
Disclosures. This framework is consistent with the Sustainability 12 First Gen's Energy Value Chain
empowered choice to shift to clean and renewable energy. Reporting Guidelines for Publicly Listed Companies approved
More than a cautionary tale, the cover is an invitation—it invites by the Securities and Exchange Commission (SEC). As a
readers to not just make the hard decisions and the empowered
choices, but to also realize a better, more sustainable future for
responsible energy provider, First Gen has been reporting on its
environmental, social, and governance practices on a yearly basis. 14 First Gen’s Sustainability Principles, Strategy and Roadmap
the next generation.
Disclosures in this report include data from the Company’s four
natural gas power plants in the First Gen Clean Energy Complex
(FGCEC) in Batangas City and the mini-hydroelectric power 16 Stakeholder Engagement & Materiality
plant in Manolo Fortich, Bukidnon, as well as the First Gen Head
Office located in Rockwell Business Center Tower 3, Ortigas
Avenue, Pasig City, Philippines. The remainder of First Gen’s
portfolio, composed of renewable energy power plants under 18 Corporate Governance
subsidiary Energy Development Corporation (EDC) and the First
Gen Hydro Power Corporation (FGHPC), are discussed in EDC’s
Performance Report.
20 Economic Performance
Data enclosed in this report have been assured for accuracy
and completeness by First Gen’s Sustainability Technical
Working Group (STWG), overseen by First Philippine Holdings
Corporation (FPH) and First Gen’s Senior Vice President and 26 Environmental Performance
Chief Risk Officer Renato A. Castillo, and FPH Chief Sustainability
Officer Agnes C. de Jesus. The over-all approval of the report is
done by our Sustainability Champion and President, Mr. Francis
Giles B. Puno. 38 Social Performance
RENATO A. CASTILLO
58
Senior Vice President and Chief Risk Officer
First Gen Corporation GRI Content Index
TRUNKLINE: (632) 449-6400
EMAIL: racastillo@firstgen.com.ph
An Empowered Choice First Gen 2018 Sustainability Report
102-14
TRANSITION TOWARD A COAL-FREE FUTURE
We have hope that we can still The first difficult decision we need to make is to However, there is a glimmer of hope amidst the blur
gradually phase out coal, the dominant source of of dirty fuel. Thailand, for example, currently runs
reform our industry, convert carbon emissions. While countries which signed the
Powering Past Coal Alliance such as Finland, France,
on 70 percent natural gas. The locals act as a “social
fence”—and organize protests whenever there is
peers and customers alike to Sweden and Chile are already phasing out coal and
setting clear timelines, Southeast Asia is accelerating
a coal-fired power plant being announced in their
community. In the Philippines, while more coal plants
make the shift to responsible coal demand at over five percent per year through
2023, according to the International Energy Agency
are being built, some areas are proudly coal-free,
such as Ilocos Norte, Negros Occidental, Dumaguete
in its Coal 2018 report. Our region is considered in Negros Oriental, and San Juan in La Union. A Pulse
low carbon energy “the last frontier of coal,” as policies have yet to be
enforced for a more enabling environment for clean
Asia survey released in August showed that nine
in ten Filipinos preferred an increase in sources of
and renewable energy. af fordable and green energy.
PRESIDENT'S MESSAGE
HOPE IN ACTION
T
he crisis of global warming and climate survival. Either we go on as a civilization, or
HIGHLIGHTS
The market for clean and sustainable energy supplies of liquified natural gas (LNG). Last 302-4
is growing—and we intend to serve those December 2018, we signed the Joint Development
304-4
customers who want to switch away from coal Agreement (JDA) with Tokyo Gas Co. Ltd., allotting
in favor of clean low-carbon power sources. the latter with a 20 percent participating interest 306-3
Today, we have partnered with 48 organizations in FGEN LNG Corporation’s LNG Terminal project.
across 11 industries who have made the The supply from the LNG Terminal will be most 308-1
conscious choice to shif t to a low-carbon world. relevant in the future, as we have two more
412-1
natural gas-fired power plants in the of fing.
We view our processes through a sustainability 412-2
lens. Overall, we keep track of our consumption IN CONCLUSION,
and strive to be a carbon-neutral company through 414-1
various green initiatives. These include reducing our Championing sustainable energies brings us closer
carbon intensity, minimizing our landfill waste, and to the low-carbon future that we envision. We of fer ECONOMIC ENVIRONMENTAL SOCIAL
increasing our reforestation ef forts. This 2018, we geothermal as a feasible baseload source of
extended our reach by screening our new suppliers renewable energy, and at the same time variable
using both environmental and social criteria. renewable energies in solar and wind. We also have
USD 1.27 billion 0 spills at our facilities 100% of all employees
President's Message
102-1
ABOUT
FIRST GEN
102-2
102-6
Sustainability Reporting Rating 2018 102-13
F
irst Gen, together with parent FPH, and subsidiary Energy
Development Corp., were recognized in the Asia Sustainability
Reporting (ASR 2018) held by the National Center for
Sustainability Reporting (NCSR), in collaboration with the Institute of
Certified Sustainability Practitioners (ICSP).
First Gen, in particular, was awarded a Silver Rank for the 2017 Sustainability
Report, Powering Through Tough Times. Chairman Federico R.
Lopez indicated that the recognitions validate the extensive ef forts that the
Lopez companies have been putting into ensuring sustainable operations.
F
irst Gen Corporation is the largest Gen Renewables Inc. (FGRI); and First reports using the GRI Framework. The event has been held since 2005.
About First Gen
8
First Gen was nominated for the award by Professor Colin Legarde Hubo,
(IPP) in the Philippines with a Executive Director of the Center for Social Responsibility of the University of 9
diversified portfolio of indigenous, clean First Gen Energy Solutions, Inc. (FGES), a Asia and the Pacific, who provides the Company with technical guidance in
and renewable sources of energy—natural wholly owned subsidiary of First Gen, markets, the preparation of Sustainability Reports. Participants included companies
from the Philippines, Indonesia, Malaysia, Singapore, and Bangladesh.
Partnerships
gas, geothermal, hydro, wind, and solar. The supplies, delivers, purchases and sells electricity
Company which is majority owned by FPH, to contestable customers. FGES also provides
one of the listed Filipino conglomerates, value-added initiatives that foster customers’ Other Awards
was incorporated in December 22, 1998. business growth and expansion, support
First Gen has over 20 years of experience in their advocacies and provide information and First Gen Clean Energy Complex was recognized as a partner in the
power development and has been listed on analytics. With the commencement of the protection of fragile natural resource and for its sustainable practice by Philippine Semiconductor
Independent and Electronics
the DENR–EMB CALABARZON. Power Producers
the Philippine Stock Exchange since 2006. Retail Competition and Open Access (RCOA) Industries in the
Association Philippines, Inc.
on June 23, 2013, FGES' retail electricity supply FGP Corp. received the 2018 Corporate Safety and Health Excellence
First Gen operates a total of 30 power business started its commercial operations on Award from the Safety and Health Association of the Philippine Energy
generation plants with a combined power the same date. Sector, Inc. (SHAPES) and DOE.
capacity of 3,492 megawatts (MW),
which accounts for 21.3 percent of the Among First Gen’s customers are large FG Bukidnon obtained a Hall of Fame of the Corporate Safety and Health
Excellence Award from SHAPES and DOE. PhilHydro Philippine
Philippines’ gross energy generation. All industrial clients, electric cooperatives, and Association, Inc. Business for the
of these power plants are majority-owned public and privately owned distribution utilities. Environment
and controlled by the Company through its These include the Cagayan Electric Power Certifications
subsidiaries: First Gas Power Corporation and Light Company Inc. (CEPALCO), Manila
FIRST GEN FG BUKIDNON FIRST GAS POWER
(FGPC); FGP Corp. (FGP); Prime Meridian Electric Company (Meralco), National Power
CORPORATION CORPORATION
Powergen Corporation (PMPC); First NatGas Corporation (NPC), National Grid Corporation AND FGP CORP. National Philippine
Power Corp. (FNPC); Energy Development of the Philippines (NGCP), Wholesale Electricity Renewable Disaster Resilience
◼ ISO 9001:2015 ◼ ISO 9001:2015 ◼ ISO 9001:2015 Energy Board Foundation
Corporation (EDC); FG Bukidnon Power Spot Market (WESM), and various cooperatives ◼ ISO 14001:2015 ◼ ISO 14001:2015
Corporation (FG Bukidnon), via First and contestable customers. ◼ OHSAS 18001:2007 ◼ OHSAS 18001:2007
An Empowered Choice First Gen 2018 Sustainability Report
2,017 MW
102-6
102-4 NATURAL GAS
4 Plants in the First Gen Clean Energy EU1
102-7
Complex in Batangas
102-8
GEOTHERMAL WIND
55% 45%
MALE FEMALE
3,492 MW
COMBINED P OWER CAPACI T Y
1.21 : 1
M A L E T O F E M A L E R AT IO
14.66%
OF THE PHILIPPINES' 134 MW 12 MW
T O TA L INS TA L L E D CA PACI T Y* HYDRO SOLAR
3 plants in Nueva Ecija and Bukidnon 10 plants in Ilocos Norte,
Iloilo, Leyte, Cebu, and Sorsogon
132 MW Pantabangan-Masiway
21.30% (FGHPC, 67.4% effective interest)
(EDC, 46.6% equity interest)
OF THE PHILIPPINES' serves WESM, NGCP, various cooperatives
serves WESM NGCP, various cooperatives in Luzon and Visayas
GRO S S E NE RGY GE NE R AT ION* in Luzon and Visayas
GEN'S
sourced from the Malampaya gas field, which is The natural gas then makes its way through an plant is also flexible enough to cater to the Natural gas, geothermal, hydro, wind, and solar
located 80 kilometers west of northern Palawan. approximately nine-kilometer underground mid-merit or peaking requirements of the power are all part of the clean and green energy
To be both forward-looking and future-ready,
With much lower CO2 emissions compared to pipeline to reach the First Gen Clean Energy market, pioneering the use of aircraf t- portfolio of First Gen. The Company provides 21.3
the Company strikes a balance of energies –
other fossil fuels such as coal, natural gas is the Complex and the four wholly-owned natural gas- based (“aeroderivative”) engines for land- percent of the Philippines’ gross energy generation,
natural gas, geothermal, solar, wind, and
ENERGY
cleaner and more eco-conscious choice for fired power plants therein. based power plants, which allows it to with electricity primarily sold to energy distributors
hydro. First Gen continues to invest in natural
energy generation—an ideal fit for the provide energy when most needed. Manila Electric Company (Meralco) and National
gas, which it pioneered in the country, as this
envisioned low-carbon future.
platform is both reliable and complementary D. Power Generation Power Corporation (NPC), Cagayan Electric and Power
to the rise of renewables in the grid. Onsite tank and fuel jetty. The Sta. Rita, Company (CEPALCO), electric cooperatives, privately-
VALUE
B. Onshore Gas Plant (OGP) Natural gas serves as the power plants’ primary San Lorenzo and Avion power plants have owned distribution utilities, large industrial clients,
First Gen adopts ef ficiency measures and fuel to spin turbines and produce electricity. The dual-firing capability (i.e., able to use both and the Wholesale Electricity Spot Market (WESM).
pursues eco-friendly activities that protect From Malampaya, the extracted natural gas is 1000-MW Santa Rita and 500-MW San Lorenzo natural gas and liquid fuel), which reduces
and improve the natural ecosystems delivered to an onshore gas plant (OGP) in power plants generate baseload power, operating power generation disruptions in the event F. Ensuring Inclusivity
CHAIN
surrounding its operations. First Gen also Tabangao, Batangas City for final filtering. Here, reliably even af ter nearly 20 years. In 2016, First of a natural gas supply interruption. For
invests in partner communities so that they other items are removed from the delivered Gen inaugurated two new plants. The 420-MW Santa Rita and San Lorenzo, liquid fuel is First Gen develops programs that fulfill a triple
may attain self-suf ficiency and attainment of natural gas, until the gas is purified to the proper San Gabriel power plant flexibly caters to either delivered by sea vessels and received bottom line and engenders systemic value. The
holistic human development. quality for the power plants. baseload or mid-merit market requirements, and through the fuel jetty located in Batangas surrounding environment is nurtured and protected
was recognized as the most ef ficient natural gas Bay. For Avion, liquid fuel is delivered via so that it can support a thriving society, which in turn
plant in Southeast Asia. The 97-MW Avion power trucks/lorries. will help the business prosper.
12 13
NATURAL GAS
HYDROPOWER
An Empowered Choice First Gen 2018 Sustainability Report
SYSTEM VALUE
PRINCIPLES, STRATEGY,
SUSTAINABILITY ROADMAP ENVIRONMENT
The sustainability journey of FPH is divided into
AND ROADMAP
three stages (preparation of the organization, future
proofing and value creation). Embracing sustainability
as a business process aims at the behavioral SOCIETY
transformation of the organization, beginning with
the employee who is the smallest unit of change. In
the past four years (2015-2018), FPH has undertaken
the basic diagnostics and capacity building activities
102-16
to prepare it to capture the benefits of a mature
sustainable organization in the future.
BUSINESS
VISION THE FPH GROUP First Gen's sustainability journey is anchored
to FPH's corporate sustainability policy and
SUSTAINABILITY STRATEGY: supports the overall sustainability plans
First Gen desires to enhance its position as the leading A GUIDE TO FIRST GEN'S
world-class Filipino energy company; aims to deliver and strategy of FPH.
cost-effective and reliable energy services to customers;
SUSTAINABILITY PRACTICES
Sustainability at First Gen
Sustainability
scorecard
An Empowered Choice First Gen 2018 Sustainability Report
102-21 STAKEHOLDER ENGAGEMENT Out of the 33 topics, 28 were gauged as material topics with mean scores ranging from 2.5 to 4.
In addition, most of the indicators under the Electric Utilities Sector Disclosures were considered
material to our business operations. The following topics were identified as material to First Gen:
102-44
102-46
AND MATERIALITY
102-40
102-47
102-42
102-43
ECONOMIC ENVIRONMENTAL SOCIAL
102-46 Economic Performance Effluents and Waste Training and Education
First Gen values the inputs and feedback from our stakeholders, thus we make sure to provide
necessary information and implement our channels of engagement (CE) with them. Indirect Economic Impacts Water Local Communities
16 CUSTOMERS
For the purposes of fair, accurate, and
balanced sustainability reporting,
Human Rights Assessment
102-15
OPTIMIZING OPPORTUNITIES
102-18
GOVERNANCE
102-19
102-20
Using the Enterprise Risk Management (ERM) System, First Gen recognizes the risks ahead such as the new laws 102-29
and regulations associated with its business operations; sourcing of fuel for its natural gas-fired plants at the
102-30
end of the Gas Supply Purchase Agreement with Malampaya; geophysical hazards; and the changing consumer
behavior. The Risk Management Group headed by the SVP and Chief Risk Officer facilitates the risk assessment 102-33
Good corporate citizenship is part of our commitment to running a responsible and and reviews, and monitoring of actions to address the risks. The ERM System creates value by:
sustainable business. The Board and its employees are expected to perform their duties
with utmost honesty and integrity, and according to the best interests of the Company
and its stakeholders.
supporting strategic decisions by analyzing threats The concerned groups or the business units
and opportunities in the form of market, economic, manage the risks and report the progress of risk
First Gen abides by its Manual on Corporate Governance, Code of Business Conduct, and
political, legal, technological, environmental and management to the Senior Management Risk
Ethics and Company Code on Employee Discipline supplemented by several policies:
societal factors; Review Committee (SMRRC) and Board Risk
Oversight Committee (BROC). First Gen commits
optimizing capital efficiency by identifying high value not only to comply with the applicable laws and
investments, matching them with cost-ef fective regulations on power generation, power plant
Gender Equality sources of funds, and exploring hedging opportunities; operations, occupational health and safety,
Conflict of Interest Quality Policy
and Diversity environment, and labor management but also to
protecting stakeholder value by establishing systems ensure that the risks are dealt within the area of
Governance
and processes that strengthen the reliability, operations and the communities.
18 Insider Trading
Environment,
Safety and Health
Enterprise Risk
Management
sustainability, and resiliency of our operations;
The FGES, being the marketing arm of the
Company, together with the business units,
19
building investor confidence by discussing and ensure that existing contract requirements with
reporting major risks and recommended treatment the customers are met and sustained.
Related Party Corporate Social Cultural Heritage and options with the Board of Directors, Management,
Transactions Responsibility Indigenous Peoples and key stakeholders; and The Company, through its business development
groups, continues to seek and explore potentials
developing a “risk-aware” organization by nurturing a
of constructing its own liquefied natural gas
culture of continuous improvement fostered by risk
(LNG) terminal as part of its business continuity
Anti-Bribery and management processes, tools and techniques.
Contracting Policy Human Rights management.
Anti-Corruption
ECONOMIC
DIRECT VALUE GENERATED,
investments, as well as annual budget targets, and 103-1
to maintain sufficient cash at all times to fulfill the DISTRIBUTED, AND RETAINED
Company’s obligations in a timely manner. 103-2
201-1
POWERING INDUS T RY WI T H CL E AN ENERGY annual basis. Projects being developed are evaluated to certain conditions, an annual cash
based on their project and equity Internal Rate of dividend on common shares equivalent
Return and Net Present Value, among other factors. to 30 percent of the prior year’s recurring
First Gen is also actively contracting its capacity with net income. Any such declaration of
customers to increase the stability of its earnings. the cash dividend is conditional upon
the recommendation of the Board
We have also implemented a deleveraging program of Directors. It is also subject to the
to lower debt levels and improve cost of capital. preferential dividend rights of the
Likewise, First Gen considers partnerships with Company’s Voting Preferred Shares.
PERFORMANCE HIGHLIGHTS: reputable parties to enhance value. For instance, EDC
has partnered with Macquarie Infrastructure and Beyond the gains provided to
Real Assets (MIRA), which contributes its expertise shareholders, First Gen also responsibly
and global network to strengthen the business. accounts for redistribution of income
USD 178.40 million Lastly, First Gen has partnered with Tokyo Gas for the for salaries and wages of our employees,
(Php 9.36 billion) of generated income paid to development of the LNG Terminal. and the taxes and duties owed to
stakeholders (shareholders, government, employees) government. Moreover, the Company
The Finance department prepares financial models, is very much involved in community
performs capital budgeting analyses, and conducts building, with a significant portion of
13,199.27 GWh stress testing/scenario analysis to understand, its generated income allotted to social
Economic
20 Net energy output calculate, and predict the possible outcomes of its
investment decisions and resource allocation.
investments through its corporate
social responsibility programs. 21
USD 1,018,456,196
(Php 53,440,433,528)
Operations personnel at work in Avion power plant
E C O N O M I C VA L U E D I S T R I B U T E D
USD 247,995,315
Php 13,012,810,170
E C O N O M I C VA L U E R E T A I N E D
An Empowered Choice First Gen 2018 Sustainability Report
Zero
(Php 104,814.92)
103-3 TA X RELIEF RECEIVED IN 2018
103-2
Plant Availability (%) 96.4 97.5 90.5 88.9 95.5
201-4 103-3
confirmed incidents
Generation Efficiency (%) 50.16 50.70 59.06 33.75 81.98
of bribery and corruption
205-1
USD 1,142.30 USD 855.24 201-2
COMPETITIVE 100%
AND ETHICAL of Board of Directors,
RISKS AND OPPORTUNITIES
BUSINESS CONDUCT Senior Management, and employees
DUE TO CLIMATE CHANGE
First Gen complies with the Philippine
Competition Act (Republic Act 10667), Recognizing that climate change has a renewable energy (RE); technology upgrades
and the Electric Power Industry disruptive ef fect on economic and socio- and other measures to build upon resiliencies
100%
Economic
22
Reform Act (EPIRA). We do not engage cultural systems, and not just ecosystems, First and fine-tune contingency plans in the event of
in anti-competitive behavior, nor do Gen identifies enterprise risks and strategizes disaster or emergency; and continued dialogue 23
we abuse our dominant position as a of our operations assessed on how to take advantage of potential and education with stakeholders.
pioneering company in the natural gas on their individual and collective risks opportunities and mitigate possible adverse
and renewables market. As such, we for bribery and corruption impacts. Such assessments stem from our risk Conversely, among the evident opportunities
only participate in competitive bids to management culture, which trains members of that surfaced from First Gen’s risk/opportunities
ensure arms-length transactions. We our organization to become more “risk-aware” assessment is that natural gas generation can
also ensure that our employees and We adhere to our Policy on Anti-Bribery and to ef fectively manage uncertainties. become even more competitive against coal-
third-party representatives follow our and Corruption by upholding the principles based generation, given the growing anti-coal
Code of Conduct and do not engage in of honesty, integrity, and transparency in Climate-related risks include but are not sentiment and the international commitments
unethical behavior. conducting business. As a result, First Gen enjoys limited to regulatory changes and country to lower carbon emissions. In the Philippines,
a solid reputation with business partners, service commitments that may directly or indirectly this has manifested in the increased tax on
Our Power Marketing and Legal and providers, customers, and government agencies. af fect the energy sector; physical risks such coal under the Tax Reform for Acceleration
Regulatory Departments ensure as increased vulnerability to geohazards and and Inclusion (TRAIN) Law, and pending bills
our compliance with government Part of the Risk Management process is the typhoons; and reputational risks for carbon- in Congress seeking a climate/carbon tax for
regulations, as well as monitor assessment of operational and project risks based based generators, including users of natural electricity end-users. In this instance, First Gen’s
relevant laws and guidelines. They on general risk classifications which include gas—although it is the cleanest fossil fuel. brand value as an environmentally friendly
take an active part in defending political, regulatory, and social risks. Under these Remedies to these risks, respectively, include customer option will provide a competitive
the Company's rights and business classifications, the probability and impact of First Gen’s continued advocacy for an optimal edge, and there will be increased demand for
interests during the proposition perceived and/or actual attempts for corruption energy mix inclusive of natural gas and our clean and RE power services.
of new laws and policies, or any are identified, analyzed, and mitigated.
adjustments to the same.
All of our business units have been assessed with
In 2018, there were no legal
actions taken against First
regard to risk of bribery or corruption particularly
involving dealings with public of ficials (political
Natural gas generation can
Gen for anti-competitive
behavior, antitrust, and
risk) and potential conflict of interest or
preferential treatment of specific communities become even more competitive
monopoly practices. and vendors (social risk).
against coal-based generation
An Empowered Choice First Gen 2018 Sustainability Report
BUSINESS
CONTINUITY
103-1 MARKET SUPPLY CHAIN EXPANDING SERVICES MANAGEMENT:
EU3
ENERGY
103-3
EU10
202-1 Our net energy output increased by 10.24 percent to
FUTURE
As a show of commitment to our hosts, First Gen is committed to efficiently procure the necessary products 13,199.27 gigawatt-hours (GWh) from 11,972.92 GWh
202-2 First Gen prioritizes hiring the best and services, at the best possible value, to address the needs of in 2017. Net capacities increased the most in San Gabriel, to 2,198
talent from our local communities. the Business and Support groups and ensure prompt delivery. Our GWh from 1,417.0 GWh, followed by Sta, Rita’s 7,259.35 from 6,845,00.
204-1
procurement team considers both locally sourced and foreign- There were a total of 27 accounts in 2018, two of which were new customers. First Gen is keen on
We leverage on the leadership sourced material. The choice on whether to go with the local vendor Customers belong to the manufacturing, real estate, agriculture, cement, maintaining its status
capabilities of our local hires. In fact, or foreign one depends on established criteria: (1) amount, (2) delivery electronics, and aerospace industries. There were also three academic institutions as a leader in clean
majority of our senior management lead-time, (3) technical standards/technical specifications set by the in the roster: Central Luzon State University, De La Salle Lipa, and Far Eastern power generation. The
are from the significant locations of proponents, and (4) quality of the products offered. University. Company continues
operations, namely, the Head Office in Beyond providing clean power, First Gen also extends to pursue and employ
Metro Manila, and our operating plants We source directly from Original Equipment Manufacturers. If OEM value-added services (VAS) to customers through FGES. VAS are critical tools used its pioneering ef forts
in Batangas, and Bukidnon. nominated a local vendor/or they to have an exclusive agent based in to strengthen customer relationships. In 2018, we offered the following services: for natural gas by
the Philippines, said agent is considered for the requirement. Goods developing an import
Local hires account for a majority of with multiple agents generally follow the three-bid rule depending • Sponsorship of customers’ events and advocacies. Shared items or allocated and regasification
resources in support of customer's events.
senior management (VP or higher): on the amount of purchase. In 2018, most items ordered or required LNG terminal. Its
in our plant sites were sourced from foreign suppliers. As a matter of • Knowledge sharing and training sessions on industry and regulatory planned construction
82.35% of total senior management policy, we require our procurement team to check on several sources, information. Helped customer's management and technical teams and operation is in
even when offered huge margins by locally based foreign agents. understand the intricacies of energy industry and advantages of sourcing preparation for the
90.00% of female senior managers from renewable power plants eventual exhaustion
79.17% of male senior managers All procurement groups within the First Gen group (except for EDC) of the Malampaya gas
Economic
24
• Technical testing and data analytics. Performed relevant tests on customer's
functionally report to the Head Office. The First Gen Policy on machinery to improve their efficiency; executed preventive maintenance field and also to support
The compensation provided to the local Procurement and Inventory Management (POL-PUR-001), approved when necessary; and installed smart meters to provide data analytics on the the development of the 25
hires are at par with the minimum wage last May 2017, is the basis of all procurement procedures. We employ energy consumption per warehouse or piece of equipment, which became Philippine gas industry.
set by the Department of Labor and several methods: Purchase Requisition Preparation and Approval, the basis for recommendations on how to improve operational efficiency. The Company continues
Employment, and also based on the Supplier Sourcing and Purchase Order Preparation and Approval, and • Tree planting and donation of seedlings. Contributed native tree seedlings to work on various
wage standards in the energy industry. First Gen Emergency Purchasing Procedure. for customer's tree planting activities and supplied indigenous plants for the development activities
customer's facilities in support of their sustainability initiatives. to be able to advance the
In 2018, 92 percent of our procurement budget was paid project and make a final
to local suppliers and 8 percent to foreign suppliers. • Customer Appreciation Night. Treated customers to a celebratory event, investment decision.
which included a day seminar and an evening program where outstanding
partners for the year were recognized. The LNG terminal’s
Front End Engineering
Design (FEED) has been
The Purchasing Department seeks to accomplish the following goals: completed, and it is now
First Gen Customer Appreciation Night going through a tender
for the engineering,
procurement, and
construction (EPC)
Establish processes and procedures that will ensure efficient and timely procurement Contract. The Company
of all necessary goods and services for the business to operate and succeed; has partnered with
Tokyo Gas under a
Source, negotiate, and obtain the best value for the items and services vital to meet the business Joint Development
goals needed through ef fective material resource planning, strategic sourcing, and maintaining Agreement to pursue
of alignment between demand forecasts and procurement plans; the development
works together, and an
Align the procurement requirements of the various groups in the organization and identify application for a notice
opportunities for possible economies of scale that can lead to time and cost reductions to proceed license for
and maximize profitability; and the LNG terminal has
also been submitted to
Ensure timely deliveries and releasing of imports and exports. the DOE last December
Maximize trade and government incentives that result in additional savings. 2018.
An Empowered Choice First Gen 2018 Sustainability Report
ENVIRONMENTAL
MANAGING OUR MATERIAL USE
304-3
In accordance with the Sustainability In order to produce the energy required by our customers, FGEN
PERFORMANCE:
103-1
Policy, First Gen recognizes that our uses both renewable and non-renewable materials. Specifically,
304-4
business can only thrive if the natural we consume natural gas, as well as liquid fuel, diesel, and water. 103-2
resources and ecosystems on which we In order to warrant reliability of our service, First Gen must ensure
that liquid fuel supplies are available when needed by our gas 103-3
FROM POLICY TO PRACTICE depend are healthy and stable. As such,
the Company focuses on the protection plants. We forecast the importation of liquid fuels based on current
301-1
and conservation of the environment in inventory levels, as well as on expected planned and unplanned
all the areas where we operate. Malampaya shutdowns. Additionally, we also have an Enterprise
Risk Management system in place, which evaluates the risks related
As a good corporate citizen, to the procurement of liquid fuel and the acquisition of capital. This
we abide by all pertinent risk management allows us to develop mitigation plans should the
environmental laws and need for such arise.
regulations in the country.
In 2018, FGEN’s four natural gas facilities consumed a total of
PERFORMANCE HIGHLIGHTS Beyond this, we commit to operating 2,027,433.08 tons of natural gas, and 11,661.08 tons of liquid fuel/
in compliance with internationally diesel. All our facilities posted increases in consumption over our
recognized standards and maintain 2017 figures, due to our increased generation. There was a significant
our ISO certifications, including ISO increase in power produced in the San Gabriel facility in 2018.
9,375 seedlings 14001 (for Environmental Management This was the result of the Power Supply Agreement with Meralco.
of various tree species planted in the Marikina Watershed
System). First Gen has established
since 2016 with an average survival rate of 97% for 2016 and 2017 In Santa Rita and San Lorenzo, liquid fuel consumption
policies on Quality and Environment,
Safety, and Health (ESH), to direct and decreased by over 10 percent from 2017. It should
101.93 hectares guide our operations and ensure that be noted, however, that our 2017 consumption was quite high
Environment
of Marine Protected Areas (MPAs) in the Municipality (particularly in February), due to the 20-day Malampaya shutdown.
26
we are able to manage environment
of Lobo, Batangas protected through the Center of Center impacts of our operations. 27
Marine Biodiversity Conservation Program since 2004 Our diesel fuel consumption also increased in 2018, primarily at our
Avion facility. This was because of the increase in dispatch hours
58 species during periods of fuel unavailability.
of birds recorded since monitoring started in 2008
use of Transport Network Vehicle Service such as permits from the National Water Resources Board of our wastewater.
28
FGEN FG
Grab within travels in Metro Manila among Head Head Office Bukidnon
Office employees, instead of vehicle rentals. 29
Water Source 2018 extraction amounts (in ML)
ENERGY INTENSITY
First Gen (Over-all) 86,438,071,92 39,035,878.82 13,199,270,00 6.55 2.96 TOTAL EXTRACTION TOTAL CONSUMPTION TOTAL DISCHARGE
1,218,175.32 ML 28,748.99 ML 1,189,426.33 ML
103-2
EU13
103-3
304-1 First Gen acknowledges that its power projects the Philippines. Based on the International Union Beyond our commitment to operate our plants safely MPAs, or “BRAVO,” aims to encourage and popularize
may impact the biophysical environment, from site for Conservation of Nature (IUCN) one (1) species and according to the highest environmental standards, good governance practices and performance among local
304-2 development to their construction and operations. recorded in the November 2018 monitoring First Gen also acknowledges its responsibility to maintain government units in designated MPAs in Batangas.
Some emissions and discharges may have potential period is endangered. Four (4) species of bats the health and stability of our surrounding environment.
304-4 impacts on the physico-chemical characteristics were recorded in the same monitoring period. The sea is the backdrop for four of First Gen’s plants. The continued initiatives to protect the Verde Island
of air, water, or land of the project site and areas Fourteen (14) mangrove species were recorded for Passage have not only conserved the rich marine
EU13
adjacent to the projects. the second semester monitoring period conducted In 2006, First Gen, together with First Philippine biodiversity of the Province of Batangas but also
Conservation, Inc. and Conservation International, helped improve the status of the fisheries sector. In the
on November 2018. One (1) species is categorized Municipality of Lobo, the community has reported an
The Company ensures that its projects in under the vulnerable category based on IUCN. On initiated a program called Project Center of the Center
(CoC), focused on the Verde Island Passage, off the increase in its fish catch. Moreover, because of its thriving
Batangas City are in areas that are not classified the other hand, 51 species of marine fishes were coastal waters of Batangas, Oriental Mindoro, Occidental marine environment. Lobo is now gaining a reputation as
as Environmentally Critical Areas (ECAs) to limit its recorded in the marine water monitoring stations Mindoro, Marinduque, and Romblon. The Philippines has a diving and tourist destination. From only 31,584 resort
impact to biodiversity. The First Gen Clean Energy during the Aquatic Biota Monitoring for the 4th long been acknowledged by marine conservationists as tourists in 2017, a total of 83,800 resort tourists
Complex is in an industrial zone, which used to be Quarter 2018. One (1) species is categorized as near the center of the world’s marine biodiversity. According were received in 2018, a 165 percent increase
composed of abandoned fishponds and rice fields threatened based on IUCN. to Dr. Kent Carpenter from the IUCN, Verde Passage in tourist traffic boosting the local economy.
with a few species of trees and mangrove associates. is “the center of the center,” with possibly the most
First Gen implements its Environmental biologically diverse—and also the most vulnerable— Another of First Gen’s major coastal environment
First Gen also uses state-of-the-art technology Management and Monitoring Plan to ensure that waters on the planet. initiatives is the preservation and protection of the
to ensure that its operational processes will be its power plant operations are compliant with the mangrove area. Mangroves serve as a nursery habitat for
efficient and will have minimal impact on the various environmental standards that apply to Sadly, this significant marine ecosystem is endangered. fish and crustaceans; act as a biological filter for estuarine
Project CoC was established to help the waters; and also functions as a carbon sink, that captures
environment in terms of emissions, discharges, its operation. Among the ecological media being Verde Island Passage, and today it covers 35 and stores CO2. The project has successfully rehabilitated
and wastes. By preventing pollution of air, water, monitored are air, water, solid and hazardous marine areas spread across 1,554 hectares. the mangrove area at FGCEC. Before the start of the
Environment
and land, we also protect the habitats of various wastes, and terrestrial and aquatic environment.
30
First Gen, through First Gas, became the direct implementer project, an assessment of the area recorded only three
flora and fauna that can be found in and near our Regular assessments by environmental consultants of Project CoC in 2010. The project focused on marine species, today, at least 14 species are found. Apart from
project sites. The cooling system is also designed are also being performed such as the Cumulative law enforcement in nine marine protected areas (MPAs), improving the species richness of the mangroves, this 31
in such a way that it will limit marine organisms Impact Assessments, which evaluate the in the coastal towns of Mabini, Tingloy, and later, Lobo, project has also helped supplement the livelihood of the
from flowing into the system and ensure that the cumulative impacts of the power plants on valuable Batangas province. First Gas extends logistical support for marginal fishing community that harvests in this area.
temperature increase is within the acceptable limit. environmental components (VECs). Ecological risks the activities of 364 Bantay Dagat (Sea Watch) volunteers
are also being assessed regularly for determining in the three towns. Furthermore, First Gas also provides First Gen also conducts monthly coastal clean-
the potential dangers of plant operations to livelihood support to the Bantay Dagat in Mabini town. ups. In 2018, there were 12 clean-up events held in
As part of its commitment in its Environmental Sta Rita Aplaya, Danglayan and Sta Clara, in the
Impact Statement (EIS) and its Environmental the environment. First Gas also provides support to the marine biodiversity province of Batangas. A total of 2,265 volunteers
Compliance Certificate (ECC), First Gen enhanced program of the Provincial Government of Batangas. The participated and were able to collect 12,648 kilos
the biophysical environment along the periphery of First Gen also participates in various environmental Batangas Recognition Awards for Verde’s Outstanding’ of compostable and 1,373 kilos of residual wastes.
enhancement and protection programs of the
the Project by planting trees and mangrove species.
government such as the Adopt-an-Estero or Water
Body Program (specifically for the maintenance and
A total of 9,755 seedlings have been clean-up of Cabubulag River), the National Greening
planted in the Marikina Watershed- Program, and the Verde Island protection program.
Calawis Antipolo Rizal (9,375) and
Provincial Sports Complex in Batangas
First Gen’s targets in terms of biodiversity are the following:
City (380), with 92 percent and 96 percent Other notable projects:
survival rates recorded for the 2018
monitoring period, respectively.
Operation of a Forest Tree Nursery Perform the Environment Management Plan (EMP) and Environment Monitoring Plan (EMoP)
within the First Gen Energy Complex, which requirements of each project.
Monitoring of biodiversity in areas where First
Gen operate is conducted on a regular basis. provides seedlings to various organizations
Avifauna and mangrove monitoring are conducted and agencies within Batangas province Produce 100,000 seedlings annually in our Forest Tree Nursery.
semi-annually while aquatic biota monitoring is
conducted quarterly. Implement measures to protect and enhance water quality in our adopted river.
A total of 58 bird species have been recorded in the Operation of a Mangrove Nursery Ensure the survival of at least 171,520 seedlings to be planted from 2016-2019 under the NGP.
areas monitored within the First Gen gas power which provides mangrove seedlings and
plants in Batangas since monitoring started in propagules within Batangas province Plant mangroves at Brgy. Banoyo, San Luis from 2016-2019. There are currently 14 mangrove
2008. Twenty one (21) species are endemic to and mangrove-associated species found within the reforestation areas.
An Empowered Choice First Gen 2018 Sustainability Report
Greenhouse gas (GHG) emissions are significant liquid fuel with low sulfur content and water The plants’ compliance is monitored by the QESH The Company ensures that monitoring systems and
contributors to climate change. First Gen's natural injection technology to reduce NOx emissions. Department where the Pollution Control Officer procedures are in place to operate and maintain the
103-1
gas-fired power plants in Batangas contribute (PCO) is part of the team. The PCO is responsible Continuous Emission Monitoring System (CEMS)
103-1
103-2
to carbon dioxide emissions from energy The First Gen Corporation Environment, Safety for monitoring compliance of the Operation and which measures the plant emissions in real-time
consumption, purchased electricity, and fuel and Health Policy (ESH) states explicitly: Maintenance Contractor with the regulatory basis. The O&M Contractor is audited to confirm that 103-2
103-3 consumption from outsourced vehicles. Other “Improve the management of its environment, requirements. The PCO is accredited by the EMB CEMS undergo quarterly Cylinder Gas Audit (CGA) and
significant air emissions from First Gen’s natural safety and health programs to reduce work- with specific responsibilities mandated by law. annual Relative Accuracy Test Audit (RATA) and to 103-3
305-7
gas-fired power plants include nitrogen oxides related incidents, environmental emissions, determine the accuracy of the monitoring system.
305-1
(NOx) and sulfur oxides (SOx). These emissions effluent, and wastes, and promote the efficient For Batangas operating assets, the O&M
can have adverse effects on air quality, habitats, use of energy, water, and other resources.” Contractor is audited to check that it operates Average CO2 emissions intensity for 2018
305-2
and human health. Emissions of GHG and other within the terms of reference stated in the (0.37 tons CO2 /MWh) decreased by 0.01
tons from 2017 (0.38 tons CO2 /MWh). This
significant air emissions are released from the First Gen power plants are committed to contract and the applicable regulatory accounts for a 3 percent decrease in First 305-3
combustion of natural gas, liquid natural gas, and environmental protection and prevention requirements. Plans, procedures, guidelines and Gen's emissions intensity.
305-4
diesel fuel. of pollution as embedded in its policies, work instructions are issued to ensure compliance
operations, and practices. First Gen's goal is with the requirements on plant emissions. The Company integrated its Environmental group 307-1
Natural gas-fired power plants are designed to to comply with the Point Source Emission The Company supplies natural gas with lesser with Quality, Environment, Safety and Health groups
achieve optimum operational efficiency with Standards of Republic Act 8749 or the Philippine emissions as the primary fuel and low-sulfur to have a holistic approach and enable the group to
secondary emissions. The mitigation measures Clean Air Act of 1999 and its Implementing liquid fuel as a back-up fuel. have cross-functional responsibilities.
are inherent to the design such as the use of low Rules and Regulations (DAO 2000-81) as part
NOxBurner Technology and utilization of natural of its commitment under the ECC issued by the
gas with minor emissions. In times of natural Environmental Management Bureau (EMB) to EMISSIONS
gas unavailability, the O&M contractor utilizes the project for the following primary pollutants:
Environment
San Gabriel San Gabriel San Lorenzo 1,334,205.56 1,329,438.24 - 88.16 9.94 12.82 0.37 0.38
Avion San Lorenzo
26.31 28.07 2.35 0.44
Avion Avion
700 San Gabriel 748,034.57 493,917.93 2,806.07 6,732.95 0.34 0.35
7.68 72.38
San Gabriel
14.15
500 500 500
Avion 64,773.47 87,925.81 1,680.79 1,174.08 0.54 0.56
Avion
0.00
150 150
50.23 Total 4,863,671.00 4,536,541.84 5,206.18 9,070.27 9.94 17.53 0.37 0.38
15.92 1.31 7.08
(Average) (Average)
CO NOx SO2 PM
An Empowered Choice First Gen 2018 Sustainability Report
103-1
KEEPING OUR OPERATIONS CLEAN HAZARDOUS WASTE
Waste Type Disposal Method*
2017
(in tons)
2018
(in tons)
103-1
103-2 First Gen’s facilities generate effluents and waste when there is a failure in handling. This 2018, there Waste oil Incineration 0.00 17.20 103-2
which include water discharges, hazardous and were no significant spills and untoward incidents. Waste oil Recovery 113.73 7.15
103-3 nonhazardous wastes, and spills from oil or 103-3
chemicals. Water discharges from First Gen's Oily sorbents and rags Landfill 11.41 1.27
First Gen strives to limit its amount of disposable
306-2 facilities can affect aquatic habitats and the quality waste. As such, the Company recovered Acidic wastewater, acidic boiler sludge, and lab waste** Physico-chemical treatment 1.71 16.52 306-2
of available water supply for the communities and 7.15 tons of waste oil in 2018, and recycled Acidic boiler sludge, paints, adhesives, sealants, Solidification/Encapsulation 7.10 4.41
306-3
other water users. Generation, transport, treatment, 3.53 tons of glass, scrap plastics, and solidified paint residues, and paint-contaminated containers
and disposal of wastes and spills of oil or chemicals other recyclables. Thus, First Gen
308-2
can potentially affect soil, water, air and biodiversity,
disposed via landfill a total of 84.47 Total Disposed Hazardous Waste 133.95 46.55
and can pose harm to human health.
tons of biodegradable and residual non-
The environmental impacts are covered by various hazardous waste. Comparatively, First Gen also
* Disposal method determined using information provided by the waste disposal contractor
environmental laws that the Company should disposed via landfill a lower amount of hazardous ** Lab waste consists of solvents, benzene, benzene compounds, mercuric compounds
adhere to, such as: waste, year on year: 1.27 tons in 2018 versus 11.41 tons
in 2017. This landfilled waste consisted mostly of oily
Clean Water Act (Republic Act 9275) cloths and sorbents.
for the management of wastewater
However, a fraction of waste oil at 17.20 tons was 65% reduction in hazardous waste disposed
incinerated in 2018 via an accredited waste disposal
Ecological Solid Waste Management Act contractor. Incineration was done using modern
(RA 9003) for solid waste management equipment, with the proper permits.
NON-HAZARDOUS WASTE First Gen complies with the Effluent Standards of the Philippine Clean Water Act of 2004 as part
2017 2018 ** of its commitment under the Environmental Compliance Certificate issued by EMB to the project.
Waste Type Disposal Method* (in tons) (in tons)
Water discharge is assessed using the following measures:
Biodegradable Waste, Residual Waste Landfill 38.15 84.47 ◼ Biochemical Oxygen Demand (BOD): no greater than 100 mg/L,
Recyclables, Scrap Plastics, Scrap Wood, Scrap Plastic, Glass Recycling 8.75 3.53
◼ Oil and Grease: no greater than 10 mg/L,
Total Disposed Non-hazardous Waste 46.90 88.00 ◼ Total Suspended Solids (TSS): no greater than 150 mg/L,
◼ Acidity and Alkalinity: within the pH level range of 6 to 9.
* Disposal method determined using information provided by the waste disposal contractor
**The increase in non-hazardous waste for 2018 is attributed to wastes generated from activities conducted
during the maintenance outage in Sta. Rita Power Plant in Batangas.
An Empowered Choice First Gen 2018 Sustainability Report
EFFLUENTS
413-1
303-4
Water Discharge 2018 discharged
Destination effluents (in ML)
306-1
Seawater 1,143,524.20
(FGPC, FGP, FNPC)
Total 1,189,426.33
In 2018, the water meter that measures the volume of effluent discharges sometimes
encountered downtime; this resulted in estimated releases for some of the reporting months.
First Gen encourages children to visualize the steps needed to achieve a climate-resilient future, through a poster-making contest
With regard to our effluent discharge, the Company does not release liquid waste
into any identified protected areas. Receiving bodies of water are as follows:
and Brgy. Bolbok, Batangas City and Brgy. Danglayan, San Pascual. First Gen
36 adopted the 1.75-km stretch of the Cabubulag River on June 19, 2012, under the
DENR Adopt-an-Estero or Water Body Program. 37
Cabubulag River receives water collected in our rainwater retention basin, which
includes water flowing from upstream canals. First Gen strives to involve the community in its environmental advocacies. Create for Climate is an environmental
program that supports Climate Change awareness and education in the hope of creating model individuals and “steward
Batangas Bay. Effluent discharged into Batangas Bay include discharges/final communities” for climate action and environment protection. It started in 2017 as a corporate social responsibility (CSR)
effluent from the following sources: program, meant to address the big issue of Climate Change by helping host communities be more mindful of their social
and environmental impacts.
◼ Cooling water seal pit
◼ Oil/ water separator The Company takes a three-phased approach:
◼ Sewage treatment plant
◼ Neutralization System
◼ Washwater basin An information and education School-based or community-based Climate action projects originating from
campaign (IEC) with interactive competitions, such as jingle-making or members of the community, with coaching
Our activities have not adversely affected Batangas Bay. No resident species is lectures based on annual theme poster-making contests for younger and monitoring, and evaluation provided by
endangered. participants, and themed “action projects” a Climate Leader. Together with winners of
for older participants action projects, these will be monitored
and evaluated for their impacts
Laguna Lake. This is not a protected area; however, environmental protection on climate change adaptation
of the Laguna Lake is imperative. Existing laws mandate the Laguna Lake
Development Authority to oversee and manage developments, projects, and
other economic activities that occur within the Laguna de Bay Watershed.
1 2 and mitigation.
3
Since its inception, the project has directly benefited more than 5,302 students and communities.
The First Gen Head Office, through the management of Rockwell Business In 2018 alone, there were four schools and four barangays in Batangas City, Batangas, and another four schools and four
Center Tower 3, is discharging its wastewater through the city's sewerage barangays in Pantabangan, Nueva Ecija, who participated in Create for Climate. The student winners of “Create-A-Poster”
network, which eventually drains to Marikina and Pasig Rivers, and then to and “Create-A-Jingle” were treated to a visit at KidZania Manila or similar educational trips, whereas winners of the “Create-A-
Laguna Lake. The building has an onsite Sewage Treatment Plant (STP) to handle Project" community contest were given opportunities to implement their proposed winning idea.
the domestic waste.
An Empowered Choice First Gen 2018 Sustainability Report
PERFORMANCE:
partners in its areas of operation.
103-2
In the conduct of its business, the 83 103-1
103-3 Company upholds their rights BATA NG AS
38
49 42
Social
I
with the Philippine Data Privacy
2 0 -3 0 31- 4 0 41-5 0 51- 6 0 OVER 60
n this competitive and challenging and reliable energy, creating a positive Act of 2012, its Implementing Rules
world we live in, the employees impact on people’s lives, and making and Regulations, and other relevant
play the vital role in making a this world a sustainable place to live in. issuances of the National Privacy
business thrive. Thus, in First Gen, we First Gen recognizes the value of gender Commission (NPC), to (1) protect the
ensure that our hires are qualified based equality and diversity in building a privacy of individuals while ensuring Board Composition and Diversity
on skills, work experience and capability sustainable organization, as stated in its the free flow of information to 6
11%
to perform assigned duties and policy on Gender Equality and Diversity. promote innovation and growth; (2) 1 FEMALE
responsibilities regardless of gender, First Gen believes that in doing so, it regulate the creation and collection,
ethnic background, age, and religion. contributes to the Company's economic recording, organization, storage,
performance and long-term success, updating or modification, retrieval, 4
Male
The Company hires employees of legal to the realization of the full potential consultation, use, consolidation, 0
age; it does not engage the services of its employees and stakeholders, blocking, erasure and destruction 9
of individuals below 18 years old. It and to a more inclusive society. The of personal data; and (3) ensure BOARD
5 MEMBERS
also invests to provide its employees Company shall strive to reduce gaps and that the Philippines complies Female
competency enhancement through strengthen equality by incorporating with international standards 2
trainings, coaching, and other forms of gender equality and diversity in its set for data protection through 3
continuous learning; a safe and healthy governance, day-to-day operations, the NPC. First Gen ensures that
workplace; competitive compensation competencies and performance all customer data are protected
and benefits; and opportunities measurements, and resource allocation. based on the Data Privacy Act. 0 89%
MALE
to advance in their career paths. There were no substantiated
51-6 0 O V ER 6 0
Ultimately, employees are empowered The Company also has a policy on complaints from customers
to make a difference in producing clean Cultural Heritage and Indigenous during the reporting period.
An Empowered Choice First Gen 2018 Sustainability Report
401-1
MANAGING LOOKING AFTER OUR EMPLOYEES’
OUR WORKFORCE HEALTH AND SAFETY
103-1
401-2
103-2
C I
401-3
103-3
areer opportunities at First Gen are posted Seventy-five percent of n order to ensure smooth and transfer to new work area, occurrence of an incident
404-3 in our website www.firstgen.com.ph/ employees have an average continuous business operations, or accident, use of new equipment, adoption of new 403-1
careers/. Qualified and dynamic applicants tenure of fewer than 10 years. securing the safety and health of our process, and implementation of a new standard or
EU15
who share the same vision with us are welcome to start Seven percent of our regular employees employees is of paramount importance to us. regulatory requirement. 403-2
a career with the Company. Our Human Resources are eligible to retire within 5 years, and 20 First Gen has an Environmental, Safety and Health
403-5
Group continues to research through surveys, feedback percent within 10 years. policy that provides guidance on how occupational The Company has established ESH Committees or
and engagements of the employees, re-evaluate health and safety (OHS) should be integrated in the formal joint management-worker health and safety 403-7
existing roles and structures, and create manpower The compensation program is designed pursuit of business objectives and the way of life committees in all facilities. The ESH Committee
development programs for better productive work to attract, motivate, retain, and reward of all employees. As part of our commitment, First of First Gen, headed by the Company’s President, 403-8
relationships and environment. talented employees who drive First Gen’s Gen ensures that OHS requirements are in place and is composed of representatives from the dif ferent
success. Management is committed to 403-9
employees have the necessary resources to help groups. Likewise, all the operating plants have
We not only recognize our responsibility in complying giving just and fair remuneration and career achieve a safe and healthy workplace. established their own ESH Committees. These 403-10
with the national labor laws and standards as progression for all employees and does not committees meet on a monthly basis and members
tolerate any form of gender discrimination.
prescribed by the government but also influence Our 402 employees and 986 workers are hold the authority to make decisions on the relevant
The Company uses percentiles from the
suppliers, contractors, and other service providers to covered by an OHS management system issues and concerns discussed.
general industry compensation report and
comply with the applicable laws and regulations. First values the employees' experience, skills, that is internally audited at least once a
Gen employs a total of 402 non-unionized competencies, and performance without year. The Quality, Environment, Safety and Health The ESH Management Manual System has a
employees across its operations, in any gender bias. The annual conduct (QESH Group) is responsible for establishing the provision for an employee or worker to exercise
4 locations—Pasig, Batangas, Cebu, and Bukidnon. of the Performance Engagement First Gen ESH Management System (ESHMS) with stop work authority if the workers’ safety is
Majority of our workforce is based at our Pasig City the policies and documented processes that govern compromised in the conduct of the activity. These
40
Process (PEP) to all employees are
Social
headquarters. There are no part-time employees First Gen’s Head Office and operations of the power hazardous conditions should be immediately
employed by the Company.
performance- and values-based.
plants. The operating plants have their own Site QESH reported to the head of the working party or to QESH 41
Groups to oversee the implementation of the ESHMS. for proper actions.
The Company provides overtime benefits to
In 2018, First Gen had 42 new hires,
our rank and file employees, as well as night
evenly divided among men and women. OHS hazards and risks are identified based on their Workers at all work sites are also oriented
shif t dif ferentials. First Gen also guarantees
The hiring rate is 10.4 percent while the likelihood and impact on the employees and the in site-specific OSH awareness and trained
a 13th month pay, and provides rice and
turnover rate is 9.2 percent. Many of the business. Among the work-related hazards with risk to maintain a safe work environment. At
uniform allowance. Other benefits include
employees who withdrew from the Company are the of high-consequence injury are working at heights, the Head Office, for example, new employees are
accumulated leaves, insurance, as well as
younger ones who sought greener pastures overseas. electricity, confined spaces, excavation, workplace oriented in safe work practices by QESH, and the
medical reimbursement, and an annual
transport, and fire. Emergency Response Team is trained in first aid and
medical check-up for employees. To prepare
basic life support, among other training provisions.
our employees who will be transitioning out
Meanwhile, the following are the work-related At the plant sites, meanwhile, safety training runs
of the workforce, a retirement benefit at all
Average Tenure of Current Employees hazards that pose a risk of ill-health: prolonged the gamut from behavioral-based safety training to
levels was also made available.
sitting, extreme temperature (heat), noise, and scaf folding training, working at heights, chemical
25 0 snake bites. The concerned groups ensure that handling and spill response, and incident command
First Gen also recognizes the importance
mitigating actions to lower the risk levels are system training, among others.
of family to our employees. Therefore, a
20 0 carried out by using the hierarchy of elimination,
parental leave benefit is provided to eligible
substitution, engineering, administrative controls, These training sessions are intended to equip First
employees. Out of our 402-strong workforce,
and use of PPE. In addition, corresponding legal and Gen’s workers and prevent work-related deaths,
15 0 220 males and 182 females were
regulatory requirements are considered in instituting paralysis, loss of consciousness, and physical injuries,
entitled to parental leave. A
OSH programs. namely, amputation of a limb, laceration, fracture,
10 0 total of 7 men and 3 women availed of the
hernia, and burns. In 2018, there were no work
benefit, and all of them returned to work
First Gen’s Job Hazard Analysis (JHA) is reviewed fatalities and injuries, and no incidents of
50 at the end of the prescribed leave period.
and updated following alterations, such as, but work-related ill health. See related story on our
13 2 Of those who availed of the parental leave
41 206 56 46 38 not limited to: change in site or work conditions, Top 5 trainings on OSH on page 45.
0
benefit, 10 were also still employed one year
af ter. First Gen has a 100 percent
<1yr 1-5 6-10 11-15 16-20 21-25 26-30
return to work rate.
yrs yrs yrs yrs yrs yrs
An Empowered Choice First Gen 2018 Sustainability Report
403-6
42
2. Healthy Eating involves providing healthy eating
Social
44 System Training
Social
HUMAN RIGHTS
103-2
103-2
At First Gen, we believe in providing the type of skills enhancement training that fits the role of the employee,
prepares them for the workplace and boosts their productivity, and keeps their skills at par with industry practice. 103-3
103-3 In 2018, our employees received an average of 44 hours of training.
404-1
410-1
Apart from in-house programs such as the requisite New Employee Orientation, Power 101, and Powered Up
F
404-2
412-1 irst Gen recognizes that every In total, there were 281 training hours Professionals, we also provide core programs including but not limited to: 5 Choices to Extraordinary Productivity,
individual has inherent and spent on human rights policies and 7 Habits of Highly Ef fective People Signature Program, Data Storytelling for Business, and Design Thinking.
412-2 inalienable rights as enshrined in procedures relevant to our operations
local laws and international conventions. The in 2018. A total of 29 employees, representing As a matter of policy, we encourage both female and male leaders and ensure that they are equally equipped for
Company respects these rights and strives to our various businesses, were trained. management. The management programs we provide include but are not limited to: Executive Masters in Business
uphold them, and where applicable, shall Administration, 4 Disciplines of Execution™ Learnshop, Fundamentals of Coaching & Mentoring, Performance
take responsibility and remedial action for Management, Leadership in the Age of Disruption, and Leading Change.
any corporate actions that may infringe on HUMANE SECURITY PRACTICE
these rights.
First Gen believes that a sound security practice AVERAGE TRAINING HOURS FOR MALES
First Gen has its own human rights is critical to ensure that human rights—of
policy, which recognizes and respects the personnel, residents where we operate, and AV E R A G E O F AV E R A G E O F
rights and dignity of each individual. The visitors to our worksites—are respected and 67 hrs 7 hrs
Company complies with the minimum observed, particularly in the implementation NON-SUPERVISORY SENIOR
of security procedures, the security plan, and MANAGEMENT
required policies as mandated by the
Philippine Labor Laws related to Human other related security practices. AV E R A G E O F
standards. Moreover, the Company aims to First Gen targets zero recurring security TRAINING
prevent or mitigate adverse human rights incidents, no human rights violation, and HOURS
AV E R A G E O F
47
AV E R A G E O F
impacts in the provision of its services. compliance with all applicable regulatory 48 hrs
55 hrs MANAGEMENT
requirements. To achieve these goals, the SUPERVISORY
Although First Gen does not have a specific Company relies on the External Af fairs and
policy on the implementation of human Security Department. We also allot a budget to
rights reviews or assessments, the Company equip the security personnel with the necessary
takes its cue from the FPH human rights equipment, training, and logistical support to
policy issued in Nov. 2018. All our work be ef fective. AVERAGE TRAINING HOURS FOR FEMALES
sites are subjected to human rights
Our policies for human rights and the AV E R A G E O F AV E R A G E O F
impact assessments. In doing so, First
Gen avoids causing adverse human rights enactment of a grievance mechanism is 39 hrs 15 hrs
NON-SUPERVISORY SENIOR
impacts in its operations—but, should these embedded in our service contracts with our
MANAGEMENT
occur, the Company shall facilitate access to security providers. KPIs are also included for
AV E R A G E O F
a grievance redress mechanism. evaluating the performance of the security
providers within these contracts. Finally, the 36
TRAINING
Our employees are also briefed on Company also conducts a QESH Audit and other HOURS
company policies meant to instill discipline First Gen Management Audits. Representatives AV E R A G E O F AV E R A G E O F
(Company Code on Employee Discipline) monitor the daily conduct of troop information 38 hrs 34 hrs
and appropriate consideration for their own and education for all security personnel. SUPERVISORY MANAGEMENT
safety and health, as well as the welfare of
the entire organization. New hires especially First Gen contracts the services of 38 security
are oriented regarding security procedures, personnel—in 2018, 32 (82.41 percent) of
and other related practices. Aside from this, the security personnel were provided Our HR practitioners are also given training to better administer training workshops to the rest of the workforce,
the Company regularly provides internal training on Voluntary Principles on Human through programs such as the Group-wide FPH DPA Train the Trainor and 5 Concrete Ways to Measure the
training seminars for employees, and Rights and Security, Firearms Safety and ROI of Training Programs. Since we put a premium on industrial peace, we also provide training on Proactive
sponsors the attendance of employees in Marksmanship, and Grievance Machinery. Labor Relations for Non-unionized Environment. To be able to assist employees in receiving benefits, as well as
external development training sessions, Semi-annual refresher courses for all security planning for retirement, our HR practitioners are also trained in the PMAP Administering Labor Standards and
seminars, and programs. personnel are also available. Benefits and PMAP Retirement Planning Seminar.
An Empowered Choice First Gen 2018 Sustainability Report
PARTNERING WITH
203-1
103-1 BRIGADA ESKWELA PROVISION OF SCHOOL SUPPLIES
103-2
(NATIONAL SCHOOLS MAINTENANCE WEEK) 413-1
THE COMMUNITY
103-3
413-1
Rehabilitation of cafeteria 1,728 students of Sta. Rita 260 students
Aplaya Elementary School of Sta. Rita Elementary School
First Gen recognizes CSR as integral First Gen’s CSR ef forts focus on stakeholder
Construction of multi-purpose 783 students of Sta. Rita 235 students
to our business model. Given this engagement and the implementation of
hall and stage National High School of Bolbok Elementary School
commitment, the Company shall serve community relations programs in its host
as a prime mover for nation-building, communities on the following themes: job
social development, and environmental generation, health, education, environment, Renovation of stage with 1,506 students of Bolbok 595 students
extended flooring Elementary School
stewardship in the areas where we and partnership. in Batangas City public schools
operate. In line with our CSR policies, our
Environmental Compliance Certificate, First Gen's educational programs include Renovation of 1,651 students of Sta. Clara
and our memorandum of agreement awarding of scholarships, provision of medals handwashing area Elementary School
(MOA) with the host community, the for top performers as incentive, distribution
Company shall promote harmonious of school supplies, provision of materials for Repair of 2 classrooms 245 students of Damilag
relationships with the stakeholders, school repairs, and training on welding (flux- Integrated School, Barangay
Manolo Fortich, Bukidnon
that are characterized by mutual trust cored-arc) to increase employability. Our
and benefit. health programs include setting up community USD 512,150.95
48
Repair and repainting 400 Aeta students of
Social
7,665 students
One of 12 clean-up events where volunteers collected over 14,000 kilograms of compostable and residual waste First Gen employees volunteer their time in community-building efforts
An Empowered Choice First Gen 2018 Sustainability Report
203-2
ENVIRONMENTAL CONSERVATION 203-2
413-1
AND CLIMATE ACTION
First Gen continues its capacity-building and Social Investment during Calamities). Through the operational support First Gen volunteers take part in tree-planting activities
to replenish the Marikina Watershed
partnership with the community of Training workshops on Basic Fire (Fighting) that First Gen has been providing, the
Batangas to promote a resilient disaster Brigade, Rescue and First Aid, and Documents Bantay Dagat was able to conduct
risk response and mitigation. Following the Preservation were conducted for 150 volunteers regular patroling activities that deter
construction of First Gen Advanced Learning from the Archdiocese of Lipa and barangays. both illegal and commercial fishers,
Emergency Response Training (ALERT) strictly enforce marine law especially on
facility in Batangas in 2017, our Company Further, First Gen continues to support the catching “tamak” (fish fry). Regulating
sponsored and supported the training continued protection of the Verde Island Passage fishing activities ensures that no fishing
and drills conducted by the Bureau of Fire that has not only conserved the rich marine is conducted in the sanctuaries and
Protection (BFP) for the church-organized biodiversity of Batangas but has also helped artificial reef, allowing the population
group called BASIC (Batangueños Assistance enrich the fisheries and tourism sector. to increase.
50
Social
First Gen President Giles B. Puno (right) leads the MOA signing for Project BASIC Emergency drills familiarize our first responders with the protocols for firefighting
An Empowered Choice First Gen 2018 Sustainability Report
Their project, Project Bantay Kalusugan, is a The third organization is the 2030 Youth Force in the
program that seeks to improve the quality of health Philippines, a group of young leaders that are a part of
of the residents of Brgy. Panaytayan in Mansalay, an Asia-Pacific youth movement aimed at addressing
who are members of the Hanunuo Mangyan Tribe. the Sustainable Development Goals (SDGs), recognized
The project primarily features a Solar-powered by the United Nations Development Programme–
Community Health Center, complete with the this particular team focuses on addressing SDG 7,
necessary equipment required in a rural clinic that Af fordable and Clean Energy for all. Project Liyab
of fers basic health services and amenities and focuses on access to clean and af fordable water
serves more than 1,440 people in the area. through solarizing a water pump, as well as integrating
a waste management plan in the community coupled
The second organization TAO Pilipinas, a non-profit with livelihood capacity building.
Project SIKAT harnesses youth energy to bring benefits of RE technology to rural communities organization that started af ter the EDSA revolution
when a group of planners and architects came Aside from the main projects the teams are working
together to serve the urban poor. They use the on, Sikat also pilots various small-scale RE
participatory approach to allow communities to technologies in the communities, done in
actively participate in urban community planning. partnership with Power4All. One being the
SIKAT
solar-powered perimeter light in the communities of
Project Recharge is a water and security 2030 Youth Force and Tao-Pilipinas, the first in their
development project for the residents of respective areas. A solar-powered charging station was
the MASAGANA association, a resettlement also deployed in 2030 Youth Force’s community, where
SHIFTING GEARS: REDEFINING THE IMPACT OF RENEWABLE ENERGY community originally from flooding- and they charged users according to economic background
52
Social
calamity-prone Navotas, now relocated in Bulacan. and earned a little income. One of the bigger 53
The project primarily features a solar-powered deployments was a solar-powered battery pack in KHA’s
water purification system done with the Ateneo community in Oriental Mindoro, that powered an audio
An estimated 12 million Filipinos had no access organizations with partner communities in remote Innovation Center as well as 20 solar street lights system and nebulizer, and qualified the local school for
to energy in 2018. In an archipelagic country areas that utilize existing RE technology to address to aid in the security of the area. printers and laptops care of Department of Education.
with varied topography like the Philippines, root causes of energy poverty.
where millions of Filipinos reside in areas such as
mountains, coastlines, and islands– connecting Sikat funds USD 9,528.89 (Php 500,000) into
communities to the grid is a challenge. Major the projects, provides capacity building for Youth leaders inspect existing infrastructure at a community site
energy producers and local electric cooperatives the organization in project management and
find investing in these areas to put up traditional sustainability, and works with stakeholders in the
power grid structures too costly, subjecting fields of energy, community development, and
millions to experience a great Energy Poverty. social entrepreneurship to create self-sustaining
and innovative projects that the community can
Energy Poverty is widely defined as the lack take ownership of for the years to come.
of access to opportunities and basic needs for
development due to the absence of electricity in Currently, there are three organizations
a community. It af fects communities in several under the program – starting with Keep Hope
aspects: education, health, livelihood, and overall Alive (KHA), a non-profit organization established
quality of life. in 2007, formed as a result of friends performing
medical missions in their hometown of Mansalay,
As a non-profit organization focused on promoting Mindoro. KHA has a strong volunteer base of
the use of Renewable Energy (RE) for rural 1,400 members who do outreach programs on
development, the Sikat Solar Challenge health, sanitation, hygiene, and nutrition to over
Foundation, Inc. launched its new flagship 20 indigenous communities in Mansalay, and were
program, the Sikat Impact Challenge. awarded as one of the Ten Accomplished Youth
Sikat supports the development and innovation Organizations (TAYO) in the Philippines by the
of grassroots projects done by established National Youth Commission in 2016.
An Empowered Choice First Gen 2018 Sustainability Report
HOW FIRST GEN CONTRIBUTED TO EACH Build resilient infrastructure, promote inclusive
and sustainable industrialization and foster innovation
◼ Trained barangay volunteers in Basic Firefighting, Rescue and First Aid Training, and Documents preservation
through Project BASIC (Batangueños Assistance and Social Investment during Calamities)
End hunger, achieve food security and improved ◼ Maintained monitoring and proper segregation, storage, transport and disposal of waste
nutrition and promote sustainable agriculture
Ensure healthy lives and promote well-being for all at all ages
54
Ensure inclusive and equitable quality education ◼ Continued disaster risk reduction and mitigation training through Project BASIC.
and promote lifelong learning opportunities for all 55
◼ School supplies provided to Batangas residents
◼ Provision of construction materials to schools in host communities Conserve and sustainably use the oceans, seas and marine resources for sustainable development
◼ Provision of medals and incentives to outstanding students
◼ Conducted values formation seminar to student leaders ◼ Continued to protect 10-hectare Mangrove Reforestation Area within First Gas Energy Complex
◼ Repaired and repainted classrooms ◼ Along with Conservation International, continued to support the ‘Project Center of the Center’ through marine law enforcement
in nine marine protected areas (MPAs) in the coastal towns of Mabini, Tingloy, and Lobo, Batangas province
◼ Continued to protect the Verde Island Passage for the conservation of its rich marine biodiversity and enrichment
◼ of the fisheries sector, while attracting local ecotourism to help boost the local economy of the province of Batangas
◼ Conducted 12 coastal clean-ups at Sta Rita Aplaya, Danglayan and Sta Clara in Batangas
Achieve gender equality and empower all women and girls
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests,
combat desertification, and halt and reverse land degradation and halt biodiversity loss
◼ Established a tree nursery with the Archdiocesan Ministry on Environment (AMEn) in Batangas to aid reforestation ef forts
Ensure availability and sustainable management of water and sanitation for all ◼ Continued restoration ef forts at Marikina Watershed
◼ Continued maintenance and protection of 14 mangroves and mangrove-associated species,
◼ Treatment of ef fluents before discharge ◼ with periodic assessments, in the mangrove reforestation areas in the vicinity of First Gen Clean Energy Complex in Batangas
◼ Extraction of water from ground water resources is within the limits set by the National Water Resources Board ◼ Continued species rescue project with EDC BINHI by planting of 79 endangered premium Philippine
◼ timber tree seedlings in the Damilag Integrated School and FG Bukidnon Power Corp. compound
Ensure access to affordable, reliable, sustainable and modern energy for all Promote peaceful and inclusive societies for sustainable development, provide access to
justice for all and build effective, accountable and inclusive institutions at all levels
◼ Operation of clean energy plants
◼ Proper maintenance and operation of existing power plants ◼ Institutionalized policies on anti-bribery and corruption, conflict of interest, insider trading,
◼ Continues to innovate and to seek solutions to the rising energy demand by developing more power plants ◼ whistleblower protection and management, and related party transactions
◼ and LNG regasification terminal
Promote sustained, inclusive and sustainable economic growth, Strengthen the means of implementation and revitalize
full and productive employment and decent work for all the Global Partnership for Sustainable Development
◼ Implementation of trainings and OSH programs for employees to be more productive and have a balanced way of living ◼ Focused on key areas of UN SDGs through partnership with government (national and local government units),
◼ Provision of employment opportunities for the community ◼ the private sector (technological cooperation with international business partners and collaboration with
◼ Compliance with labor standards ◼ Philippine Disaster Resilience Foundation and other similar organizations), civil society (NGOs) including
◼ Hired employees based on qualifications regardless of gender, age and race; and paid employees based on performance ◼ Philippine Business for the Environment (PBE), and citizens
An Empowered Choice First Gen 2018 Sustainability Report
ASSURANCE STATEMENT
We, the members of the External Review Committee, have validated via external assurance activities the First Gen
Corporation’s 2018 performance, as presented in its Sustainability Report, based on Global Reporting Initiative Standards
(GRI Standards) and disclosure guidelines and requirements relying on relevant data or information disclosed to and/or
received by us during the validation process. This certification does not extend to matters beyond the coverage of such
Manila, 08 April 2019 data or information and/or outside the scope of such process. More so, nothing in our assurance statement should be
construed as a position or opinion of the organizations where we are presently connected.
General Disclosures Recommendations IN WITNESS WHEREOF, we have hereunto set our hands this 8th of April 2019 at the University of Asia and the Pacific.
First Gen Corporation (First Gen) sought the assistance of the University of Asia The following recommendations are
and the Pacific Foundation Incorporated-Center for Social Responsibility (UA&P- outlined to further improve First Gen’s
CSR) in facilitating the external assurance of its 2018 Global Reporting Initiative sustainability programs.
(GRI)-based Sustainability Report (SR).
SUSTAIN THE CULTURE AND
An External Review Committee (ERC) composed of independent experts in
assurance practices (“external assurers”) was formed; they conducted the GREENING THE SUPPLY CHAIN.
assurance in a manner that is systematic, documented, evidence-based, and Dr. Winston Conrad Padojinog, DBA
characterized by defined procedures. First Gen should continue its internal President,
communication campaigns and
formation and education programs at University of Asia & the Pacific
First Gen provided for the expenses incurred during the site visits, including
the honoraria of the external assurers, and the support provided by UA&P-CSR. all levels of the organization to reinforce Chair, External Review Committee for First Gen SR 2018
First Gen pre-selected the stakeholders interviewed and the sites visited, and the mindset and activities necessary to
pursue a sustainable business model. This
Independent Assurance Statement
provided data and information during the review process, when requested. To Dr. Winston “Stan” Padojinog, is an associate professor of industrial economics and
ensure objectivity, UA&P CSR as the host of the assurance process facilitated the also involves enjoining other suppliers
and partners in its value chain to align strategic management and the fourth President of the University of Asia and the Pacific.
activity of the external assurers.
their processes with company standards; He lectures on and undertakes researches in the fields of industry dynamics, strategic
management, finance, and business sustainability courses in the graduate programs of
Level of Assurance and Methodology COVER MORE ENHANCEMENT UA&P. He is also a founding member of the Center for School Governance. Since 2011,
AREAS AND PROVIDE
56
he has served as member of the External Review Committee of various companies that
This is the first time that First Gen has subjected its SR to external party assurance. MORE INFORMATION. subjected their sustainability reports for external assessment.
The entire assurance process was conducted within six (6) weeks in 2019, from 57
Consider other specific enhancement
the mobilization meeting on February 20 to the submission of a draft summary areas such as biodiversity and/or
of the SR 2018 disclosures on March 28 and the Assurance Statement on April 5. water management. For the Verde
Site visits were conducted in Batangas and Bukidnon (March 18 and 25), alongside Island Passage area, programs that
consultations with First Gen’s Technical Working Group, and an interview with will improve marine and coastal
the President/Chief Operating Officer (March 21). protection would be worth pursuing.
For the site in Bukidnon, a program Prof. Nanette Dungo, Ph.D.
The external assurers considered the Report’s boundaries which covered natural toward enhancing biodiversity, forest Former Chairperson,
gas, wholesale electricity trading, and hydro operations in First Gen’s portfolio. extent and cover, and water retention Department of Sociology
The geothermal, wind, and solar operations will be covered by a separate SR of capacity of the watershed upstream
an affiliate company. University of the Philippines, Diliman
of the plant may also be considered. In
subsequent reporting, First Gen
Findings may also provide more quantitative
information on survival and growth
Prof. Nanette G. Dungo, PhD, is an adjunct professor in UA&P as a faculty member
in the School of Law and Governance under its Political Economy Program, teaching
performance of mangrove plantations,
The external assurers view First Gen’s SR 2018 as comprehensive and in courses on Philippine Society and Culture, Migration and Development, Culture and
Valued Environmental Components
accordance with the GRI Standards on report content, quality management, and Development, and Qualitative Research. Her research involvements and conference
(VEC) results, International Union for
topic-specific disclosures for economic, social, and environmental aspects. Conservation of Nature (IUCN) Red List papers were written in the area of Development Studies and covered topics on Women,
for Bukidnon, biodiversity values, water Children, Youth, and Community Evaluation Projects.
The Report highlights First Gen’s sustainable business practices and efforts to stress calculations, and water audits;
document material impacts, major stakeholders and environs affected, and
the management of these impacts. The disclosures are recent, understandable,
readily available, comparable with previous years’ performances, and readily ENHANCE THE MONITORING
verifiable by external parties. Sufficient justifications are given on the limitations AND EVALUATION OF SOCIAL
posed by some disclosures.
IMPACT TARGETS AND
Disclosures on the environmental aspect are accurate, comprehensive, transparent, SUCCESSION PROGRAMS.
and thorough. First Gen’s strict compliance with environmental laws and its Rene N Rollon, Ph.D.
programs to support biodiversity and protected areas (including the collection First Gen can enhance the monitoring
of baseline information on emission, effluents, and waste) are commendable. and evaluation of targets and actual Former Director, Institute of Environmental Science & Meteorology
results of its social projects. Long- College of Science, University of the Philippines, Diliman
The findings show that First Gen benefited from the efficiency gains following its term developmental projects and their
investments in technologies and the higher retail-power sales from customers expected and actual benefits both on Dr. Rene Rollon is a member of the Department of Environment and Natural Resources
who prefer low-carbon or renewable energy sources. The company continues to the target community and the company,
address the potential impact of the 2024 projected depletion of the Malampaya should also be closely monitored and – Environmental Management Bureau Technical Review Committee. He specializes
gas reserves with ongoing studies and negotiations for a Liquefied Natural Gas evaluated. Lastly, First Gen may consider in studying aquatic ecosystems, coastal marine biology and ecology, mangrove and
(LNG) terminal. It also plans to put up new hydro power plants in Mindanao and putting in place a robust internal seagrass ecology, coastal resource management, environmental impact assessment,
house new plants that will boost future capacity in Batangas. succession program. and environmental sciences. He obtained his doctoral degree in Agricultural and
Environmental Sciences in WAU-IHE, The Netherlands.
An Empowered Choice First Gen 2018 Sustainability Report
58
corporate-structure/
102-25 Conflicts of interest The process and mechanism laid down to
102-6 Markets served 8, 11 detect, determine and resolve any possible
conflict of interest between the company
59
102-7 Scale of the organization 10
and/or its group and their directors, of ficers,
102-8 Information on employees 10, 39 and significant shareholders are disclosed
and other workers in the Annual Corporate Governance Report
102-9 Supply chain 12, 13 (as of May 2017), Section B: Code of Business
Conduct and Ethics, pp. 33-34, 40-42.
102-10 Significant changes to the There was no significant change in the location, share
organization and its supply capital structure and supply chain from 2017 to 2018. A copy of the Corporate Governance Report
chain (as of May 2017) is available at: www.firstgen.
102-11 Precautionary Principle or 19 com.ph/corporate-governance/manual-on-
approach corporate-governance/
102-12 External initiatives 9 First Gen reports to the Carbon Disclosure Project, 102-26 Role of highest governance body in The Corporation’s vision and mission are
follows the Global Reporting Initiative framework, and setting purpose, values, and strategy reviewed by the Board of Directors during its
maintains international standards under the International Strategic Board Update which is conducted
Organization for Standardization. annually. Such vision and mission were
102-13 Membership of associations 9 revisited and af firmed by the directors during
their annual board update held on September
Strategy 102-14 Statement from senior 4 26, 2017.
decision-maker
102-27 Collective knowledge of highest As per the Manual on Corporate
102-15 Key impacts, risks, and 19 governance body Governance, the Board may require
opportunities a newly elected Director to attend
Ethics and 102-16 Values, principles, 14 a seminar on corporate governance
Integrity standards, and norms of conducted by any duly-recognized
behavior private or government institution.
Appropriate training opportunities for
102-17 Mechanisms for advice and 18 both existing and potential directors
concerns about ethics may from time to time be identified
Governance 102-18 Governance structure 18 and undertaken as assessed. The
102-19 Delegating authority 19
enumerated list of the trainings attended
by the Directors are listed in the Annual
102-20 Executive-level responsibility 18 Corporate Governance Report (as of
for economic, environmental, May, 2017), Section A: Board Matters - 6
and social topics Orientation and Education Program pp.
102-21 Consulting stakeholders on 16 28-33.
economic, environmental,
and social topics
An Empowered Choice First Gen 2018 Sustainability Report
GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS
STANDARD NUMBER TITLE NUMBER AND OMISSIONS STANDARD NUMBER TITLE NUMBER AND OMISSIONS
Governance 102-28 Evaluating the highest governance The process followed and criteria used Reporting 102-44 Key topics and concerns raised 17
body’s performance in assessing the annual performance of Practice
the Board and its committees, individual 102-45 Entities included in the 2
directors, and the CEO/President are consolidated financial statements
disclosed in the Annual Corporate 102-46 Defining report content and topic 16, 17
Governance Report (as of May, 2017), Boundaries
Section M: Board, Director, Committee
and CEO Appraisal, pp. 125-127. 102-47 List of material topics 17
102-29 Identifying and managing 19 102-48 Restatements of information There are no restatements of
economic, environmental, and information.
social impacts
102-30 Ef fectiveness of risk management 19 102-49 Changes in reporting There are no significant changes from
processes the previous reporting periods in the
Scope and Aspect Boundaries.
102-31 Review of economic, environmental, 19
and social topics 102-50 Reporting period 2
102-32 Highest governance body’s role in 2 102-51 Date of most recent report May 9, 2018
sustainability reporting
102-33 Communicating critical concerns 19 The Company has an internal Risk 102-52 Reporting cycle 2
Management Group as well as a Risk 102-53 Contact point for questions 2
Management Committee which assists regarding the report
the Board of Directors in its oversight
responsibility over management's 102-54 Claims of reporting in accordance This report has been prepared in
activities in managing risks involving with the GRI Standards accordance with the GRI Standards:
physical, financial, operational, Comprehensive option.
environmental and other risks of
the Corporation. The Committee is 102-55 GRI content index 58
composed of three(3) Board Members,
a Management representative and 102-56 External assurance 56
resource persons from other Company
departments as may be necessary. Part GRI 200 ECONOMIC STANDARD SERIES 2016
of the Committee's responsibility is
to regularly assess the Company's risk Economic Performance
GRI Index
60
management activities and report this to
the Board. GRI 103: 103-1 Explanation of the material topic 21
102-34 Nature and total number of critical The identification and nature of critical
Management and its Boundary 61
Approach 2016 103-2
concerns concerns depends on the department The management approach and its 21
or operating group directly involved components
in or handling the concern. These
concerns typically involve operations, 103-3 Evaluation of the management 21
financing, and/or regulations covering approach
the Company. When a critical issue is 201-1 Direct economic value generated 7, 21
identified, the department or operating GRI 201:
Econoåmic and distributed
group first studies the situation and
raises the concern to various bodies such Performance
201-2 Financial implications and other 23
as the management, and/or the Board of 2016
risks and opportunities for the
Directors if need be. organization's activities due to
102-35 Remuneration policies Provision of the information is restricted climate change
by confidentiality and security 201-3 Defined benefit plan obligations First Gen has distinct, funded, non-
considerations. and other retrement plans contributory, defined benefit retirement
102-36 Process of determining Provision of the information is restricted plans, which covers all permanent
renumeration by confidentiality and security employees, each administered by the
considerations. committees of each subsidiary.
201-4 Financial assistance received from 22
102-37 Stakeholders’ involvement in Provision of the information is restricted
remuneration by confidentiality and security government
considerations.
Market Presence
102-38 Annual total compensation ratio Provision of the information is restricted 103-1
by confidentiality and security GRI 103: Explanation of the material topic 24
considerations. Management and its Boundary
Approach 2016
103-2 The management approach and its 24
102-39 Percentage increase in annual total Provision of the information is restricted components
compensation ratio by confidentiality and security
considerations. 103-3 Evaluation of the management 24
approach
Stakeholder 102-40 List of stakeholder groups 16
Engagement GRI 202: Market 202-1 Ratios of standard entry-level 24
102-41 Collective bargaining agreements First Gen is not unionized.
Presence 2016 wage by gender compared to local
102-42 Identifying and selecting 16 minimum wage
stakeholders
202-2 Proportion of senior management 24
102-43 Approach to stakeholder 16 hired from the local community
engagement
An Empowered Choice First Gen 2018 Sustainability Report
GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS
STANDARD NUMBER TITLE NUMBER AND OMISSIONS STANDARD NUMBER TITLE NUMBER AND OMISSIONS
GRI 200 ECONOMIC STANDARD SERIES 2016 GRI 300 SERIES ENVIRONMENTAL STANDARDS SERIES 2016/2018
GRI 103: 103-1 Explanation of the material topic 50, 52 GRI 103: 103-1 Explanation of the material topic 27
Management and its Boundary Management and its Boundary
Approach 2016 Approach 2016
103-2 The management approach and its 50, 52 103-2 The management approach 27
components and its components
103-3 Evaluation of the management 50, 52 103-3 Evaluation of the management 27
approach approach
GRI 203: 203-1 Infrastructure investments and 49 GRI 301: 301-1 Materials used by weight or volume 27
Indirect services supported Materials 2016
Economic 301-2 Recycled input materials used Not applicable. The primary input in our
Impacts 2016 203-2 Significant indirect economic 50, 51 process is fuel, which is non-recyclable.
impacts
301-3 Reclaimed products and Not applicable. The Company is primarily
Procurement Practices their packaging materials involved in power generation.
62 Anti-corruption
GRI 103:
Management
103-1 Explanation of the material topic
and its Boundary
22
302-2 Energy consumption outside of the
organization
28 63
Approach 2016
302-3 Energy Intensity 28
103-2 The management approach and its 22
components 302-4 Reduction of energy consumption 7, 28
103-3 Evaluation of the management 22 302-5 Reductions in energy requirements There is no reduction in energy
approach of products and services requirements in our operations during
the reporting period.
GRI 205: 205-1 Operations assessed for risks 7, 22
Anti-corruption related to corruption Water
2016
205-2 Communication and training 22 GRI 103: 103-1 Explanation of the material topic 29
about anti-corruption policies and Management and its Boundary
procedures Approach 2016
103-2 The management approach and its 29
205-3 Confirmed incidents of corruption 22 components
and actions taken
103-3 Evaluation of the management 29
Anti-competitive Behavior approach
GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS
STANDARD NUMBER TITLE NUMBER AND OMISSIONS STANDARD NUMBER TITLE NUMBER AND OMISSIONS
GRI 300 SERIES ENVIRONMENTAL STANDARDS SERIES 2016/2018 GRI 300 SERIES ENVIRONMENTAL STANDARDS SERIES 2016/2018
64
Approach 2016 Environmental environmental laws and compliance with environmental laws and
103-2 The management approach and its 32, 33
components
Compliance
2016
regulations regulations. 65
103-3 Evaluation of the management 32, 33
approach Supplier Environmental Assessment
305-7 Nitrogen oxides (NOx), sulfur 32 GRI 400 SOCIAL STANDARDS SERIES 2016/2018
oxides (SOx), and other significant
air emissions Employment
Effluents and Waste GRI 103: 103-1 Explanation of the material topic 40
Management and its Boundary
GRI 103: 103-1 Explanation of the material topic 34, 35 Approach 2016
Management and its Boundary 103-2 The management approach and its 40
Approach 2016 components
103-2 The management approach and its 34, 35
components 103-3 Evaluation of the management 40
approach
103-3 Evaluation of the management 34, 35
approach
An Empowered Choice First Gen 2018 Sustainability Report
GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS
STANDARD NUMBER TITLE NUMBER AND OMISSIONS STANDARD NUMBER TITLE NUMBER AND OMISSIONS
GRI 400 SOCIAL STANDARDS SERIES 2016/2018 GRI 400 SOCIAL STANDARDS SERIES 2016/2018
GRI 401: 401-1 New employee hires and employee 40 GRI 404: 404-1 Average hours of training per year 45
Employment turnover Training and per employee
2016 Education 2016
404-2 Programs for upgrading employee 45
401-2 Benefits provided to full-time 40 skills and transition assistance
employees that are not provided to programs
temporary or part-time employees
404-3 Percentage of employees receiving 100% of employees receive performance
401-3 Parental leave 40 regular performance and career assessments and career reviews.
development reviews
Labor-Management Relations
Diversity and Equal Opportunity
GRI 103: 103-1 Explanation of the material topic 40, 41
Management and its Boundary GRI 103: 103-1 Explanation of the material topic 38
Approach 2016 Management and its Boundary
103-2 The management approach and its 40, 41 Approach 2016
components 103-2 The management approach and its 38
components
103-3 Evaluation of the management 40, 41
approach 103-3 Evaluation of the management 38
approach
GRI 402: Labor- 402-1 Minimum notice periods regarding First Gen is non-unionized. Nonetheless,
Management operational changes Management is transparent with GRI 405: 405-1 Diversity of governance bodies and 39
Relations 2016 employees on changes in the company Diversity employees
that may af fect them. and Equal
Opportunity
Occupational Health and Safety 2016
66
Approach 2016 GRI 103: 103-1 Explanation of the material topic 38, 39
103-2 The management approach and its 41 and its Boundary
Management
components
Approach 2016
103-2 The management approach and its 38, 39
67
103-3 Evaluation of the management 41 components
approach
103-3 Evaluation of the management 38, 39
GRI 403: 403-1 Occupational health and safety 41 approach
Occupational management system
Health and GRI 406: Non- 406-1 Incidents of discrimination and No incidents of discrimination were
Safety 2018 403-2 Hazard identification, risk 41 discrimination corrective actions taken reported during the reporting period.
assessment, and incident 2016
investigation
Freedom of Association and Collective Bargaining
403-3 Occupational health services 43
GRI 103: 103-1 Explanation of the material topic 40, 41
403-4 Worker participation, consultation, 44
Management and its Boundary
and communication on
Approach 2016
occupational health and safety 103-2 The management approach and its 40, 41
components
403-5 Worker training on occupational 41, 45
health and safety 103-3 Evaluation of the management 40, 41
approach
403-6 Promotion of worker health 43
GRI 407: 407-1 Operations and suppliers in which First Gen is non-unionized.
403-7 Prevention and mitigation of 41, 43,
Freedom of the right to freedom of association
occupational health and safety 44
Association and collective bargaining may be
impacts directly linked by business
and Collective at risk
relationships
Bargaining 2016
403-8 Workers covered by an occupational 41
health and safety management Child Labor
system
GRI 103: 103-1 Explanation of the material topic 38
403-9 Work-related injuries 41 Management and its Boundary
Approach 2016
403-10 Work-related ill health 41 103-2 The management approach and its 38
components
Training and Education
103-3 Evaluation of the management 38
approach
GRI 103: 103-1 Explanation of the material topic 45, 47
Management and its Boundary GRI 408: 408-1 Operations and suppliers at 38
Approach 2016 Child Labor 2016 significant risk for incidents of child
103-2 The management approach and its 45, 47 labor
components
GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS GRI DISCLOSURE DISCLOSURE PAGE DIRECT ANSWERS
STANDARD NUMBER TITLE NUMBER AND OMISSIONS STANDARD NUMBER TITLE NUMBER AND OMISSIONS
GRI 400 SOCIAL STANDARDS SERIES 2016/2018 GRI 400 SOCIAL STANDARDS SERIES 2016/2018
GRI 103: 103-1 Explanation of the material topic 46 GRI 414: 414-1 New suppliers that were screened 7, 44
Management and its Boundary Supplier Social using social criteria
Approach 2016 Assessment 2016
103-2 The management approach and its 46 414-2 Negative social impacts in the 44
components supply chain and actions taken
103-3 Evaluation of the management 46 416-2 Incidents of non-compliance There were no incidents of non-
approach concerning the health and safety compliance concerning the health and
impacts of products and services safety impacts of products and services
412-1 Operations that have been subject 7, 46 during the reporting period.
GRI 412:
Human Rights to human rights reviews or impact
Assessment 2016 assessments Customer Privacy
412-2 Employee training on human rights 7, 46 GRI 103: 103-1 Explanation of the material topic 39
GRI Index
68
policies or procedures Management and its Boundary
Approach 2016
412-3 Significant investment agreements All significant agreements contain 103-2 The management approach and its 39 69
and contracts that include human general clauses, requiring service components
rights clauses or that underwent providers, contractors, consultants, and
human rights screening counter parties, with relevant laws, rules 103-3 Evaluation of the management 39
and regulations. Significant investment approach
agreements are those where the amount
is 10% or more of the company assets. GRI 418: 418-1 Substantiated complaints 39
Customer concerning breaches of customer
Local Communities Privacy 2016 privacy and losses of customer data
GRI
STANDARD
DISCLOSURE
NUMBER
DISCLOSURE
TITLE
PAGE
NUMBER
DIRECT ANSWERS
AND OMISSIONS EDITORIAL TEAM
EU1 Installed capacity, broken down by 11
ELECTRIC
primary energy source and by regulatory
UTILITIES
regime
SECTOR
DISCLOSURES CORE TEAM
EU2 Net energy output broken down by 25, 28
primary energy source and by regulatory Allan Blasco
regime Margarita Pambid
EU3 Number of residential, industrial, 25 Armando Ramos, Jr.
institutional and commercial customer Nephetali James Baesa
accounts
EU4 Length of above and underground Not applicable. The Company is primarily ADVISORS
transmission and distribution line by involved in power generation.
regulatory regime Renato Castillo
Agnes de Jesus
EU5 Allocation of CO 2 emissions, allowances The Philippines is a Non-Annex 1 country and
or equivalent, broken down by Carbon therefore has no binding carbon reduction Luis Aningat
Trading Framework targets or allowances in the Kyoto Protocol.