Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Procurement Practices
• Anti-corruption
• Resource Management
• Employee Management
• Supply Chain Management
• Relationship with Community
• Customer Management
• Health and Safety
• Labor Laws and Human Rights
• Data Security

Environmental Achievements

• Reduced water consumption through conservation measures (quantified data not available)
• 10% recycled input materials used in manufacturing

Social Achievements

• Provided employee benefits such as SSS, PhilHealth, Pag-ibig, parental leaves, vacation leaves, and sick leaves (100% coverage for most benefits)
• Maintained harmonious labor-management relations due to relatively small number of employees
• 60% female workers in the workforce

Governance Achievements

• Revised Manual on Corporate Governance in compliance with SEC regulations
• Established committees (Nomination, Compensation and Election; Audit; Corporate Governance; Executive)

Climate Goals & Targets

Environmental Challenges

• Increasing costs of raw materials and limitations of supply
• Increasing costs of operations/logistics
• Securing permits and licenses from government agencies
• Competition from other players
• Cost of storage for slow-moving items
• Unforeseen crises or significant events
• Supply shortage due to extreme weather conditions
• Climate change causing loss of production
• High sea temperature and increased acidity altering reproduction and distribution of marine life
• Power interruptions
• Energy inefficiency
• Low water pressure or no water supply
• Regulatory compliance risk regarding use of non-renewable materials
• Human resource risk – difficulty in recruiting and retaining highly qualified employees due to uncompetitive benefits
• High employee turnover
• Counterparty risk from suppliers
• Legal risks from potential labor and human rights violations by service providers

Mitigation Strategies

• Maintaining reasonable safety inventory levels
• Diversifying suppliers (sourcing from at least 2 different countries)
• Implementing power-saving measures and having standby generators
• Water conservation measures
• Integration of recycled materials in non-food-contact packaging
• Coordinating with customers and suppliers for alternative packaging
• Maintaining good relationships with multiple suppliers
• Adopting appropriate risk management tools and conservative financial and operational controls
• Providing competitive employee benefits
• Regular employee medical check-ups
• Mandatory safety training for warehouse personnel
• Addressing employee concerns through HR department
• Updating policies to address child labor and forced labor
• Conducting additional studies on data security protocols

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Request for proposal based on approved terms of reference

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Climate change causing production loss
• High sea temperature and increased acidity

Transition Risks

• Regulatory changes regarding non-renewable materials

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Governance
• Environmental
• Social

Environmental Achievements

• The Company is committed to complying with the relevant environmental laws and regulations. Its costs and effects have no significant impact on its business in 2020.

Social Achievements

• The Company complies with government prescribed labor standards.
• Regular employees of the Company are encouraged to undergo annual medical check-up. There have been no reported work-related accidents or health concerns in the Company.

Governance Achievements

• In compliance with SEC Memorandum Circular No.19, Series of 2016 and SEC Memorandum Circular No.24, Series of 2019, the Corporation revised its Manual on Corporate Governance, adopting the mandatory provisions of the Revised Code of Corporate Governance and Revised Corporation Code.
• The Board meets regularly throughout the year to ensure a high standard of business practice for the Corporation and its stakeholders and to ensure soundness, effectiveness, and adequacy of the Corporation’s internal control environment.

Climate Goals & Targets

Environmental Challenges

• Amid the COVID-19 pandemic and compliance with the directives of the government to observe the rules on varying degrees of community quarantine, operations of subsidiaries were streamlined and kept at minimum to balance the health and safety of workers and employees.
• Increasing costs of raw material and limitation of supply; Increasing costs of operation/logistics; Renewal/securing permits and licenses from various government regulatory agencies; Competition from other players; Cost of storage for slow moving items; Unforeseen crisis or significant events
• Supply shortage due to extreme weather conditions; Climate change which can cause loss of production; high sea temperature and increased acidity that results to the alteration of reproduction and distribution of marine life.

Mitigation Strategies

• operations of subsidiaries were streamlined and kept at minimum to balance the health and safety of workers and employees
• Implementation of power saving measures and availability of standby generator in case of emergency or as needed.
• Implementation of water conservation measures to promote sustainable management of water resources, etc.
• Integration of use of recycled materials is practiced especially for those parts which are not directly in contact with food such as the outer packaging.
• The Company maintains a reasonable safety inventory position level and buffer to ensure optimal supply flexibility and operational resilience.
• The Company keeps and maintains good relationships with a number of suppliers for its sourcing (at least from 2 different countries) and does not depend on a limited number of suppliers for its chemical procurement.
• The Company continues to adopt appropriate risk management tools as well as conservative finance and operational controls and policies to manage the various business risks the Corporation and its subsidiaries will encounter.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• For the Company’s major suppliers or service providers, a request for proposal is required to be submitted based on an approved term of reference. A separate committee may be designated to review and evaluate proposals submitted and make recommendations for Board consideration.

Climate-Related Risks & Opportunities

Physical Risks

• Supply shortage due to extreme weather conditions
• Climate change which can cause loss of production
• high sea temperature and increased acidity that results to the alteration of reproduction and distribution of marine life

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Climate-related risks and opportunities
• Procurement Practices
• Anti-corruption
• Resource Management
• Employee Management
• Labor-Management Relations
• Diversity and Equal Opportunity
• Workplace Conditions, Labor Standards, and Human Rights
• Supply Chain Management
• Relationship with Community
• Customer Management

Environmental Achievements

• Reduced water consumption through conservation measures
• 10% of recycled input materials used

Social Achievements

• Prioritized local employment in various locations
• Provided employee benefits such as SSS, PhilHealth, and Pag-ibig

Governance Achievements

• Revised Manual on Corporate Governance
• Established committees (Nomination, Compensation and Election; Audit; Corporate Governance; Executive)

Climate Goals & Targets

Environmental Challenges

• Increasing costs of raw materials and limited supply
• Increasing operating and logistics costs
• Securing permits and licenses
• Competition
• Cost of storage for slow-moving items
• Unforeseen crises
• Supply shortages due to extreme weather
• Climate change impacting production
• High sea temperature and increased acidity affecting marine life
• Regulatory compliance risk (environmental)
• Human resource risk (limited recruitment and retention)
• Counterparty risk (supplier failures)
• Outsourcing & Legal risks (potential lawsuits)
• Information Security risk (data loss)

Mitigation Strategies

• Maintaining reasonable safety inventory levels
• Diversifying suppliers (sourcing from at least 2 countries)
• Implementing water conservation measures
• Integrating use of recycled materials
• Continuous sourcing of quality raw materials from local communities
• Adopting cost-effective logistics and distribution channels
• Regular risk assessment and management reviews
• Implementing measures to keep energy consumption at a reasonable level
• Providing competitive employee benefits
• Employee training and development programs
• Maintaining good relationships with multiple suppliers
• Developing an effective anti-corruption framework
• Conducting additional studies on impact and protocols (data security)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Request for proposal based on approved terms of reference

Climate-Related Risks & Opportunities

Physical Risks

• Supply shortage due to extreme weather
• Climate change causing production loss
• High sea temperature and increased acidity affecting marine life

Transition Risks

• Regulatory compliance risk

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: PFRS

Certifications: Null

Third-party Assurance: Valdes Abad & Company

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Climate-related risks and opportunities
• Procurement Practices
• Anti-corruption
• Resource Management
• Employee Management
• Labor-Management Relations
• Diversity and Equal Opportunity
• Workplace Conditions, Labor Standards, and Human Rights
• Supply Chain Management
• Relationship with Community
• Customer Management

Environmental Achievements

• Reduced water consumption through conservation measures
• 10% of recycled input materials used

Social Achievements

• Prioritized local employment in various locations
• Provided employee benefits such as SSS, PhilHealth, and Pag-ibig

Governance Achievements

• Revised Manual on Corporate Governance
• Established committees (Nomination, Compensation and Election; Audit; Corporate Governance; Executive)

Climate Goals & Targets

Environmental Challenges

• Increasing costs of raw materials and limited supply
• Increasing operational and logistics costs
• Securing permits and licenses
• Competition
• High storage costs for slow-moving items
• Unforeseen crises
• Power interruptions
• Energy efficiency
• Water supply issues
• Regulatory compliance (environmental)
• Human resource risk (recruitment and retention)
• High employee turnover
• Dishonest and unethical behavior
• Supply chain disruptions
• Customer satisfaction
• Product safety
• Data security

Mitigation Strategies

• Maintaining reasonable safety inventory levels
• Diversifying suppliers (sourcing from at least 2 different countries)
• Implementing power-saving measures and having standby generators
• Water conservation measures
• Monitoring environmental compliance and license renewals
• Competitive employee benefits
• Annual medical check-ups for employees
• Mandatory safety training
• Whistle-blowing policy
• Stringent supplier qualification standards
• Direct approach to customer feedback
• Ongoing risk assessment and management

Supply Chain Management

Supplier Audits: N/A

Responsible Procurement

• Request for proposal based on approved terms of reference

Climate-Related Risks & Opportunities

Physical Risks

• Supply shortages due to extreme weather
• Loss of production due to climate change
• High sea temperature and increased acidity

Opportunities

• Product sustainability and optimizing marketing and distribution strategies

Reporting Standards

Frameworks Used: PFRS

Third-party Assurance: Valdes Abad & Company

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)

Contribution to sustainable seafood, local employment, and resource management