Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community
• Environment
• Health, Safety and Environment (HSE)
• Corporate Social Responsibility (CSR)

Environmental Achievements

• Commissioning of PetroFCC and PRU units in the refinery to increase yield of high-value products and reduce low-value fuel oil.
• ISO 14001 certification for 15 terminals and depots.
• Participation in the preservation of Tubbataha Reefs and Sulu Sea.
• Production of the Bataan Coastal Land and Sea Use Zoning Plan.
• Reforestation of a portion of the Alangan-Lamao Watershed.

Social Achievements

• Named "Employer of the Year" by the People Management Association of the Philippines.
• Named among the Top Ten best-governed publicly-listed companies by the Institute of Corporate Directors.
• Tulong Aral program saw its first batch of over a thousand scholars graduate from elementary school, with nearly 20% achieving outstanding academic performance and receiving high school scholarships.
• Construction of Petron Schools, mostly in Mindanao.
• Partnership with USAID to build schools and repair classrooms in Mindanao.
• Teacher Training and Capacity Building program in Mindanao.

Governance Achievements

• Named one of the top ten best-governed publicly-listed companies in the Philippines for the third straight year by the Institute of Corporate Directors.
• Zero-penalty status with the SEC and PSE in terms of disclosures and compliance with reportorial requirements.
• Adjudged as being among the top 20 best-governed publicly-listed companies.
• Named one of the top 20 companies with the best annual report by the Management Association of the Philippines.
• Completed collective bargaining agreements with three labor unions.

Climate Goals & Targets

Environmental Challenges

• Marked fluctuations in oil prices and slower economic growth resulting in weakened local oil demand.
• Margin squeeze due to steady decline in selling prices and high inventory levels.
• Net loss of P3.9 billion.

Mitigation Strategies

• Focus on customer service to strengthen market leadership.
• Introduction of innovative products and marketing campaigns.
• Expansion of service station network.
• Efficiency improvements in logistical systems.
• Development of non-fuel businesses.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001, ISO 9001:2000, OHSAS 18001, ISO/IEC 27001:2005

Sustainable Products & Innovation

• Petron E10 Premium gasoline

Awards & Recognition

• Employer of the Year (PMAP)
• Top Ten best-governed publicly-listed companies (ICD)
• Top 20 best-governed publicly-listed companies (ICD)
• Top 20 companies with the best annual report (MAP)

Environmental Metrics

ESG Focus Areas

• Education
• Environment
• Health
• Human Services
• Stakeholder Engagement
• Safety
• Health
• Environment

Environmental Achievements

• Petron Bataan Refinery sustained its Integrated Management System (IMS) certification for the eighth consecutive year, including the RMP-2 facility.
• Petron Bataan Refinery continues to conform with international standards ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007.
• All 30 terminals updated their IMS certification; four locations compliant with ISO 9001:2015 and ISO 14001:2015.
• All 17 pier facilities compliant with the International Ship and Port Facility Security Code (ISPS Code).
• Sustained leadership role in the Bataan Integrated Coastal Management Program (BICMP).
• Participation in the National Greening Program.
• Scholarship program for marine environment experts.

Social Achievements

• Continued Tulong Aral ng Petron scholarship program, with 3,456 scholars.
• Built 105 Petron Schools, benefiting over 12,300 children.
• Supported DepEd’s Brigada Eskwela, refurbishing 242 classrooms.
• Youth Entrepreneurship (YIELD) Program, with 100 students participating.
• Petron Automotive Care Education (ACES) program, graduating 15 TESDA-certified mechanics.
• Reading Program partnership with DepEd and USAID.
• Sulong KaBarangay Program in Bataan.
• Livelihood Programs, providing loans to 3,921 residents.
• Assistance to families affected by Typhoon Lawin.

Governance Achievements

• Adoption of the Petron Corporation and Subsidiaries Whistle-blowing Policy.
• Adoption of the Petron Corporation Policy on Dealings in Securities.
• Regular board and board committee meetings with quorum present.
• Directors discharged their duties and attended corporate governance seminars.
• Annual self-assessment by each director.

Climate Goals & Targets

Environmental Challenges

• Foreign exchange risk due to revenue in Philippine Pesos and costs in US Dollars.
• Risk of operational disruptions from accidents, machinery failure, or external events.
• Profit margin and cash flow risk from fluctuations in crude oil and product prices.
• Regulatory risk from changes in government policies and regulations.

Mitigation Strategies

• Hedging dollar-denominated liabilities using forwards and other derivative instruments.
• Daily monitoring of financial transactions to manage foreign exchange exposure.
• Implementation of programs to promote safety and continuous process improvement.
• Corporate-wide health, safety, and environment program.
• Compliance with international standards (ISO 9002:1994, ISO 14001:1996, ISO 14001:2004, OHSAS 18001:2007).
• Margin hedging strategies to eliminate profit margin compression.
• Commodity hedging to counter price drops.
• Long-term contracts for some products.
• Cash flow projection software and access to credit lines.
• Strong communication with government and public.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Blaze 100 Euro 5 gasoline
• Petromar XC 1240 engine oil

Awards & Recognition

• DOLE’s 10th Gawad Kaligtasan and Kalusugan (Nasipit, Gasul-Legazpi, Tagoloan)

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities