Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Social Responsibility
• Corporate Governance
• Resource Conservation

Environmental Achievements

• Launched Race to Reduce (R2R) program, resulting in decreased energy consumption to 417 kWh per employee, water consumption decreased by 0.41 cubic meters per employee, and paper consumption decreased to 0.32 reams per person by December 2010. R2R won the top award in the environmental excellence category of the 2010 Asian CSR Awards and an Anvil Award of Merit.
• Planted 35,000 indigenous and fruit-bearing trees.
• AboitizPower's Iligan plant achieved near zero-waste status.

Social Achievements

• Allocated ₱245 million for CSR projects in education, primary health and childcare, enterprise development, and environment.
• Expanded microfinance program to benefit more organized groups.
• Increased involvement in environment-related initiatives.
• City Savings Bank maintained a non-performing loans ratio below 2%.

Governance Achievements

• AEV and AboitizPower improved their ranking to gold awardees in the 2010 Institute of Corporate Directors’ Corporate Governance Scorecard.
• Formal launch of the Enterprise Risk Management (ERM) program.
• Improved scores in the ICD Corporate Governance Scorecard for UnionBank and ATS.

Climate Goals & Targets

Environmental Challenges

• Power supply deficits affecting Visayas and Mindanao.
• Increased competition from lower-priced imported flour.
• Global wheat supply difficulties.
• High fuel prices affecting transport business.
• Higher international charter rates.
• Systems loss of Cotabato Light and VECo above regulatory cap.

Mitigation Strategies

• AboitizPower's plants were able to sell substantial quantities of power to the Luzon spot market during supply shortfalls.
• AboitizPower changed Magat and Binga hydro plants' value proposition to peaking plants, maximizing ancillary services.
• AboitizPower acquired two 100-MW power barges and the 42.5-MW Sibulan hydro plant to ease Mindanao's power deficit.
• AboitizPower increased the mix of contracted (versus spot) capacity in Luzon from 70% to 83%.
• Pilmico held flour sales volume despite increased competition.
• Pilmico expanded feeds product line and increased production capacity.
• Formation of revenue protection teams to reduce systems loss in DUs.
• Diversification into other segments of the food business.
• Divestment of Aboitiz Transport System Corporation (ATS).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, earthquakes

Sustainable Products & Innovation

• Cleanergy (clean and renewable energy)

Awards & Recognition

• Asiamoney’s 2010 Best Managed Company Awards (AboitizPower - Best Large Cap Company)
• Euromoney’s 2010 Asia’s Best Companies Awards (AboitizPower - Top 3 for Most Convincing and Coherent Strategy)
• 2010 Asian CSR Awards (Race to Reduce - top award in environmental excellence)
• Anvil Award of Merit (Race to Reduce)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Sustainability
• Governance
• Social Responsibility
• Community Engagement
• Human Capital Development
• Supply Chain Management

Environmental Achievements

• Increased total environmental management expenses to ₱83.2 million, including capital expenditure for pollution prevention and control.
• Conducted 60 environmental activities, planted 289,004 trees, and organized 54 coastal and river clean-up activities.
• Supported various biodiversity initiatives.
• Achieved 93% ISO certification for management systems of Quality, Environment, and Occupational Health and Safety.

Social Achievements

• Strong programs in human capital development, stakeholder engagement, philanthropy, and labor standards, resulting in a 7-point improvement in the Social dimension of S&P Global's Corporate Sustainability Assessment.
• Various educational, livelihood, and enterprise development programs benefiting children, students, small and medium enterprise owners, and employees.
• Extended electricity services to far-flung communities in line with the national government’s Sitio Electrification Program.

Governance Achievements

• Improved ESG performance, resulting in a 6-point improvement in the Governance and Economic dimension of S&P Global's Corporate Sustainability Assessment.
• Implemented the Group’s Financial Risk Management Framework.
• Strengthened stakeholder engagement activities.
• Maintained its overall rating in the FTSE4Good Index Series.
• Improved CDP Climate Change Report from D in 2021 to C in 2022.

Climate Goals & Targets

Environmental Challenges

• Sustainability investments at risk due to technology, regulatory, and market changes.
• Difficulty in insurance procurement or renewal for coal plants.
• Financing and refinancing risks due to investments in coal.
• Withdrawal of technical support from contractors and suppliers of thermal power plants.
• Sourcing of fuel (coal and oil) due to global price volatility.
• Stranded-asset risk for coal-fired power plants.
• Constantly evolving regulatory environment.
• Interest rate risks and forex risks.
• Reputation risks.
• Loss of or damage to facilities caused by natural calamities.
• Global economic recession and supply chain restrictions.
• Cyber and information security threats.
• Increasingly competitive market conditions.
• Talent acquisition and retention challenges.
• Litigation risks.
• Pandemic-related disruptions.

Mitigation Strategies

• Sustainability framework addressing environmental, social, and governance risks, including climate-related risks.
• Self-insurance for coal plants.
• Strategic shift towards renewable energy sources (50% renewable energy capacity by 2030).
• Active stakeholder engagement.
• Adoption of the TCFD reporting template.
• Asset management certifications based on ISO 55001:2014 standard.
• OSHAS 18001 certification and transition to ISO 45001 standard.
• Annual in-house training program on Fixed Fire Fighting Systems.
• Group insurance programs.
• Alternative risk transfer strategies.
• Business continuity plans (BCPs).
• Implementation of ISMS following ISO 27001:2015 standard.
• Company-wide Operational Technology (OT) Security Minimum Standard.
• Strategic workforce planning process.
• Strengthened Legal team to address litigation risks.
• BCPs to ensure reliable supply and distribution of electricity during the pandemic.
• Project risk management plans for new generation plants.
• Alternative local suppliers and service providers to ensure supply chain stability.

Supply Chain Management

Responsible Procurement

• Periodic performance reviews of contractors and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, earthquakes, floods

Transition Risks

• Regulatory changes on coal plant emissions
• Market shifts towards renewable energy

Opportunities

• Development of renewable energy projects

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001:2015, ISO 14001:2015, OHSAS 18001, ISO 55001:2014, ISO 45001

Sustainable Products & Innovation

• Hybrid battery energy storage systems
• Renewable energy projects (solar, geothermal, hydro, wind)

Awards & Recognition

• FTSE4Good Index Series constituent company
• Various awards and certifications related to SHES

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN SDG Alignment

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 12
• Goal 13
• Goal 14
• Goal 15

The Aboitiz Group is pursuing concrete projects to fulfill eight out of the 17 United Nations’ Sustainable Development Goals, namely: no poverty, zero hunger, good health and well-being, quality education, responsible production & consumption, climate change, life below water, and life on land.