Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)
• Corporate Governance
• Environmental Sustainability
• Health
• Education
• Livelihood
• Sports

Environmental Achievements

• Planted over 451,000 seedlings and mangrove propagules.
• Installed the country’s first hybrid wind-solar power system.
• Supported reforestation efforts in Arakan Valley and Marikina Watershed.
• Implemented the Balik Baterya Program for recycling used lead-acid batteries.

Social Achievements

• Supported the Philippines’ first nationwide automated presidential elections.
• Launched pioneering tele-health initiatives in remote areas.
• Rolled out various programs under Education, Livelihood, and Sports.
• Supported the Philippine National Red Cross’ blood donation activities.
• Partnered with Gawad Kalinga Foundation for building homes.

Governance Achievements

• Conformed with corporate governance laws and standards of three jurisdictions.
• Consistently ranked among the top companies in the ICD Corporate Governance Scorecard.
• Received awards for corporate governance, disclosure, and transparency from prestigious magazines.

Climate Goals & Targets

Environmental Challenges

• Declining revenues in traditional services (cellular text, fixed national and international long distance voice) due to consumer shift to bucket and unlimited pricing plans and rising popularity of online services.
• Increased competitive intensity in the market.
• Impact of peso appreciation on dollar-denominated revenues.
• Higher cash operating costs, including manpower reduction program.

Mitigation Strategies

• Strategic redirection towards convergence of fixed and mobile networks.
• Massive modernization program of mobile and fixed networks (Php67 billion investment).
• Development of new products and services (Smart’s Netphone, PLDT’s TelPad).
• Focus on cost management and streamlining operations.
• Development of new synergy services (prepaid electricity, smart meters).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Smart’s Netphone
• PLDT’s TelPad

Awards & Recognition

• Gold Awardee in the ICD Corporate Governance Scorecard
• Asiamoney Magazine awards for corporate governance, disclosure, and transparency
• Euromoney Magazine awards for corporate governance and strategy
• Finance Asia Magazine awards for investor relations and dividend policy

Environmental Metrics

ESG Focus Areas

• Good Corporate Governance
• Ethical Business Practices
• Social Responsibility
• Responsible Operations
• Quality of Services
• Resource Efficiency
• Environmental Stewardship
• Education
• Disaster Preparedness
• Livelihood
• Health

Environmental Achievements

• Reduced electricity consumption by 13.1 million kWh compared to the previous year.
• Recycled 2,980 tons of used lead-acid batteries since 2007, generating PhP70 million in earnings for CSR programs.
• Reduced fuel consumption by 20.79% (gasoline vehicles) and 7% (diesel vehicles) below budget.

Social Achievements

• 1,539,552 safe man-hours without time lost to accidents.
• Trained 10,846 employees.
• Implemented various CSR programs focusing on education, disaster preparedness, livelihood, environment, and health.
• Gabay Guro program provided scholarships to 1,123 aspiring teachers and trained over 15,000 teachers.

Governance Achievements

• Received the 2015 Bell Award from the Philippine Stock Exchange for excellence in corporate governance.
• Implemented Corporate Governance Manual and Code of Business Conduct and Ethics.
• Conducted continuous corporate governance training for directors and senior management.

Climate Goals & Targets

Environmental Challenges

• Natural disasters (typhoons, earthquakes) causing damage and service interruptions.
• Maintaining a healthy financial position amidst digital transformation.

Mitigation Strategies

• Strengthened network resiliency (PhP216 million project in southern Luzon).
• Record-high capital expenditure of PhP43 billion for network improvements and digital transformation.
• Institutionalized a Business Continuity Plan and Crisis Management Plan.
• Regular review and update of insurance coverage.

Supply Chain Management

Responsible Procurement

• Supplier/Contractor Relations Policy (fair qualification procedure, competitive bidding, compliance with laws).

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, earthquakes

Reporting Standards

Frameworks Used: GRI G4

Sustainable Products & Innovation

• Eco-friendly materials for advertising and merchandising.

Awards & Recognition

• 2015 Bell Award
• Most Committed to paying dividends (FinanceAsia)
• Best Managed Public Companies, Best in Corporate Governance, Best in Investor Relations (FinanceAsia)
• Various awards for Smart's music streaming service SPInnR and other products/services

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Energy Consumption
• Water Consumption
• Greenhouse Gas Emissions
• Waste Management
• Compliance with Environmental Standards
• Community Engagement Programs
• Product Responsibility
• Customer Privacy
• Compliance
• Labor Practices
• Occupational Health and Safety
• Training and Education
• Anti-Corruption
• Economic Risk and Opportunities

Environmental Achievements

• 12.25 million kWh of electricity savings, equivalent to 6.2 tonnes of CO2e mitigated
• 37% reduction in Smart cell site network fuel purchases in 2015, further reduced by 4% in 2016, saving approximately PhP69.9 million
• Installation of pads and catch basin structures in 223 sites to contain potential fuel leaks or spills

Social Achievements

• Provided Wi-Fi in 20 major airports, two seaports, and one light rail system
• Rolled out Cavite’s extensive wireless access program providing free internet access to residents
• Set up interconnection links with Globe Telecom, allowing free local calls between subscribers
• Expanded FTTH service passing over 2.5 million homes
• Launched eight iconic PLDT Sales and Service Centers
• Smart launched flagship store in SM Megamall
• Smart lowered the cost of mobile data by about 97% in five years
• Launched Smart Life app and Smart Travel WiFi
• PayMaya collaborated with Oxfam to provide disaster relief assistance
• Launched Smart Mastercard
• Gabay Guro program provided training to over 16,000 teachers and scholarships to 1,100 education majors
• Infoteach Outreach Program provided ICT training to 6,068 students and teachers
• Donated Smart TechnoCarts to 30 public schools
• Donated School-in-a-Bag units to remote schools
• Smart Wireless Engineering Education Program (SWEEP) supported over 30,000 teachers and students

Governance Achievements

• Appointed another female director, bringing the total to three
• Promulgated Procurement Policy
• Implemented a risk management plan
• Promulgated a Risk Management Philosophy Statement and a PLDT Group Risk Management Policy Manual
• Achieved ISO 22301:2012 certification of three Cable Landing Stations
• Launched HANDA disaster preparedness mobile application

Climate Goals & Targets

Environmental Challenges

• Competitive situation
• Recruitment and retention of appropriate personnel
• Execution of network rollout
• Monetization of data traffic
• Changes in political/regulatory landscape
• Execution of digital pivot/transformation
• Regular occurrence of natural disasters
• Dependence on vendors
• Exposure to financial risk
• Increase in cybersecurity issues

Mitigation Strategies

• Strengthen brand by ensuring network reliability and excellent customer experience
• Implement new performance metrics to ensure a culture of innovation, collaboration, and customer experience
• Expand network coverage and capacity
• Explore non-traditional revenue opportunities
• Closely monitor the regulatory environment
• Ensure organization’s structure is suitable for a digital-focused strategy
• Develop and implement business continuity plans
• Ensure appropriate procurement organization and processes are in place
• Manage financial risks at acceptable levels
• Manage information risks by protecting data from security breaches

Supply Chain Management

Supplier Audits: 947 accredited suppliers

Responsible Procurement

• Supplier Relations Policy
• Procurement Policy (April 2016)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 27001 (Information Security Management Systems)

Third-party Assurance: SyCip Gorres Velayo & Co. (SGV)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 17 (Partnerships for the Goals)

The PLDT Group supports the SDGs through its ICT for development initiatives.

Sustainable Products & Innovation

• Smart Home services
• Unified Collaboration solution
• ePLDT Cyber Security Solutions
• Smart Life app
• Smart Travel WiFi
• PayMaya app

Awards & Recognition

• Institutional Investor’s Governance Award
• Best Investor Relations Program
• IABC’s CEO Excel Award
• Best Investor Relations
• Most Committed to Corporate Governance
• Best Corporate Social Responsibility
• Best Managed Company
• UPS International Disaster Relief Award
• Company of the Year (PRSP Anvil Awards)
• Best Online Payments Solution (Emerging Payments Awards)
• Best New Digital Product of 2016 (Visa Philippines)

Environmental Metrics

ESG Focus Areas

• Good Governance
• Ethical Business Practices
• Social Responsibility
• Quality of Service
• Responsible Operations

Environmental Achievements

• Reduced electricity consumption by 5,439,912.75 kWh, equivalent to 2,732.87 metric tons CO2e displacement.
• Planted 899 fruit-bearing seedlings.
• Restored 13 hectares of mangroves in Pampanga.
• Implemented Spill Response and Containment Program with 292 spill kits provided to cell sites.

Social Achievements

• Graduated 32,000 students from the Infotech Outreach Program.
• Provided educational aid to 250 children of PLDT and Smart employees.
• Trained 14,000 teachers under Gabay Guro.
• Launched Smart City program with #READY initiative.
• Disbursed over PhP27 billion in loans through Lendr platform.
• Launched KasamaKA, a financial inclusion program.

Governance Achievements

• Approved new CG Manual and Board Charter.
• Implemented Enterprise Risk Management (ERM) procedures based on ISO 31000.
• Implemented Expanded Whistleblowing Policy.
• Improved hotline call experience by unifying eight hotline numbers into one.
• Increased engagement in social media, resulting in a 40% decrease in customer waiting time and a 20% increase in online engagement.

Climate Goals & Targets

Environmental Challenges

• Competitive situation and economic conditions
• Rapid speed of disruptive innovations and new technologies
• Regulatory changes/scrutiny
• Privacy/identity management challenges and increase in information security issues
• Regular occurrence of natural disasters
• Recruitment and retention of skilled personnel
• Succession plan challenges
• Changing political/regulatory landscape that may affect governance

Mitigation Strategies

• Digital transformation initiatives
• Enterprise Risk Management (ERM) program
• Investment in talent development and retention programs
• Proactive engagement with regulators
• Strengthened security measures
• Business Continuity Management System (BCMS)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Qualification Policy
• Procurement Policy (April 2016)

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 22301 (Business Continuity Management)

Third-party Assurance: SGV & Co

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smart SOS Dispatch
• SmartBus suite of services
• PayMaya QR
• PayMaya in Messenger
• RoamFree app
• TVolution box

Awards & Recognition

• Numerous awards and recognitions listed in the report

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Aggressive price competition and consequent loss of subscriber market share.
• Larger proportion of legacy revenues from SMS and international voice relative to competition, offsetting growth in mobile data revenues.
• Declining international voice revenues due to alternative calling options and OTT services.
• Competition from providers offering services using alternative wireless technologies and IP-based networks, including government initiatives for free WiFi.

Mitigation Strategies

• Investing in network infrastructure to improve 3G and 4G coverage and capacity, and network resilience.
• Upgrading service development platforms to improve customer ease-of-use, billing systems, and customer interface.
• Expanding content portfolio to include entertainment, peace-of-mind/convenience, and games.
• Adjusting inbound termination rates, identifying and containing unauthorized traffic termination, interconnecting with popular communication service providers, introducing marketing initiatives, and growing international data sales.
• Launching innovative data offers to introduce customers to mobile internet and stimulate usage.
• Modernizing NGN soft switches, expanding wireline infrastructure in underserved areas, and upgrading fixed line facilities to fully IP-based platforms.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

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

• Ookla cited Smart as the country’s fastest network in Q1-Q2 2018 and Q3-Q4 2018 reports.
• Ookla recognized PLDT as the Philippines’ fastest fixed network in its Q3-Q4 2018 reports.

Environmental Metrics

ESG Focus Areas

• Connect everyone everywhere through our products and services
• Protect our planet through technology
• Build resiliency through human capital and strong communities

Environmental Achievements

• 11% GHG intensity reduction groupwide despite 25% increase in network rollout
• 10% Energy intensity reduction despite 25% increase in base stations
• Planted over 1.5 million trees through PLDT Group’s reforestation programs
• 246 metric tons of hazardous waste disposed through accredited recycler
• Launched Gabay Kalikasan environmental stewardship program
• Company-wide ban on single-use plastics

Social Achievements

• Launched ONE Hub employee self-service platform
• Launched ONEboarding cloud-based Digital Onboarding Portal for new hires
• 385 teachers and students trained under PLDT Gabay Guro and SWEEP
• 32,000 PLDT Infoteach graduates nationwide
• 7,818 families provided with relevant relief packages during calamities
• 1 million retailers received incentives under PLDT-Smart KaPartner Rewards Program
• 214 community farmers trained in 15 Digital Farmers Program sessions

Governance Achievements

• PLDT is the first telecoms operator in the world and the first company in the Philippines to become a SASB alliance member
• PLDT is the first Philippine telco to join the TCFD
• PLDT and Smart are registered as UNGC Participants
• 99.97% of PLDT employees received communication on PLDT’s Gift-Giving Policy
• 88% of PLDT employees received training on Corporate Governance policies
• 0 confirmed incidents of corruption

Climate Goals & Targets

Environmental Challenges

• Employee retention
• Climate change related risks and opportunities
• Cybersecurity threats
• Data privacy incidents

Mitigation Strategies

• Robust talent management and succession planning
• TCFD aligned risk assessment and mitigation strategies
• Significant investments in cybersecurity measures and incident response
• Development of a “Privacy Maturity Framework” and implementation of data breach management standards

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier accreditation process
• Competitive bidding
• Compliance with applicable laws and regulations

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Climate change regulations

Opportunities

• Renewable energy options

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD, UNGC

Certifications: ISO 14001:2015, ISO 22301:2012

Third-party Assurance: SGV & Co. (EY)

UN Sustainable Development Goals

• SDG 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

Various initiatives aligned with the UN SDGs are described throughout the report.

Sustainable Products & Innovation

• #SmartPlanet phone recycling device
• #SmartPlanet PET bottle and can reverse vending machine

Awards & Recognition

• Various awards and recognitions listed on pages 4 and 5

Environmental Metrics

ESG Focus Areas

• Connect everyone everywhere through our products and services
• Protect our planet through technology
• Build resiliency through human capital and strong communities

Environmental Achievements

• Deployment of alternative cooling systems in about 6,000 sites to reduce diesel consumption
• Deployment of fuel cell technology in 200 cell sites to reduce diesel consumption
• 552,820 kilos of used lead acid batteries properly disposed, treated and recycled
• Partnerships with UP Marine Science Institute and Marine Environment Resources Foundation to rehabilitate marine protected areas in 24 sites
• Partnership with the Department of Environment and Natural Resources (DENR) to conserve the Caimpugan Peatlands at Agusan Marsh Wildlife Sanctuary
• Deployment of a bioacoustics monitoring system for the protection of the Palawan rainforests, in partnership with the DENR and Huawei

Social Achievements

• Launched ‘Mind Your Health’ program to address mental health concerns
• Donated PHP30.4 million worth of medical equipment to East Avenue Medical Center
• Donated personal protective equipment, hygiene kits, and grocery packs to LGUs, communities, and frontline health workers
• Offered subscribers a six-month installment payment program for outstanding monthly bills
• Facilitated distance learning through digital tools, education strategies, and trainings
• Implemented Gabay Guro’s online trainings gathering close to half a million teachers
• Supported numerous fundraising events and encouraged subscribers to use the Text-to-Donate Drive

Governance Achievements

• Renamed the Governance and Nomination Committee to Governance, Nomination, and Sustainability Committee
• Formed the Data Privacy and Information Security Committee
• Signed and participated in the United in the Business of a Better World: A Statement from Business Leaders for Renewed Global Cooperation of the United Nations Global Compact

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Climate change (physical risks: stronger typhoons, water stress, excess heat; transition risks: policy, market, reputational)
• Cybersecurity incidents and data privacy breaches
• Competitive situation and economic conditions

Mitigation Strategies

• Invested in initiatives to create a sound business environment that was quick to respond comprehensively to the global crisis
• Implemented a comprehensive and integrated risk management program
• Strengthened Business Continuity Plan and formed the Crisis Management Plan to respond to climate-related risk
• Increased investments in cybersecurity
• Adopted a multi-layered defense to prevent and slow down perpetrators, and detect attacks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier sustainability requirements
• Competitive bidding
• Communication on PLDT’s anti-corruption policy

Climate-Related Risks & Opportunities

Physical Risks

• Stronger typhoons
• High water stress
• Higher excess heat factor

Transition Risks

• Policy risk
• Market risk
• Reputational risk

Opportunities

• Development of energy-efficient products and services
• Exploration of renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD, UNGC

Certifications: ISO 22301 Business Continuity Management certification, ISO 27001 Information Security certification

Third-party Assurance: SGV & Co.

UN Sustainable Development Goals

• SDG 9: Industry, Innovation and Infrastructure
• SDG 1: No Poverty
• SDG 2: Zero Hunger
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 14: Life Below Water
• SDG 15: Life On Land
• SDG 16: Peace, Justice and Strong Institutions
• SDG 17: Partnerships for the Goals

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• SmartPlanet Bin
• School-in-a-Bag
• Ka-Partner app
• HANDA app

Awards & Recognition

• #1 Leading Company in Asia and Emerging Markets and #4 out of the Top 100 Most Influential ICT Companies Worldwide in terms of digital inclusion (World Benchmarking Alliance)