First Gen Integrated Report 2023
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Materiality Determination Process

Stakeholder Prioritization

The stakeholders involved in the 2023 materiality assessment represent the individuals or interested groups that are affected or could be affected by the organization’s activities. This perspective helps the Company better determine how to successfully implement our strategies and achieve our goals.

With the support of the departments responsible for stakeholder relations, we identified the list of actual stakeholders. Stakeholders were listed and grouped based on the following criteria: 1) interest, 2) benefit, and 3) contribution to the value created by the Company over time. Each stakeholder group was rated based on 1) how each stakeholder group affected the Company’s capacity to generate value over time, and 2) how the Company affected each stakeholder’s capacity to generate value over time.

The prioritization process determined the inclusion of these stakeholders, listed as follows:

FINANCIAL STAKEHOLDERS SOCIO-ECONOMIC AND ENVIRONMENT STAKEHOLDERS
Investors Employees
Customers Government/Regulators
Communities/Non-Government Organizations
Vendors/Consultants/Auditors/Training Partners/ Insurance Groups/Media

Identification of topics

The topics subject to the 2023 assessment cover the entire sustainable business model and are classified into three categories: environment, social, and governance topics.

In defining the ESG topics, multiple sources were considered by UA&P-CSR.

The instruments used include the following:

  • the topics of greatest interest to sustainability rating agencies;
  • industry benchmarking studies of local and international peers;
  • Integrated/Sustainability Reporting standards and frameworks such as GRI, SASB, TCFD, and <IR>.

Stakeholder Consultation

The priorities assigned to the topics were identified through the administration of a survey questionnaire designed by UA&P-CSR. A total of nine consultations covering the internal and external stakeholders from the head office and all plant sites were completed. Overall, there were 232 survey respondents who participated.

The survey questionnaire has each topic identified and rated based on the following:

  • impact on Company’s ability to generate financial value
  • impact on Company’s key stakeholders

Finalization of material topics by Senior Management

The Sustainability Technical Working Group facilitated the discussion and finalization of ESG material topics with senior management.

After finalizing the list of topics, there were a total of 32 ESG topics (8 Environmental, 13 Social and 11 Governance topics) that the Company considered material and are as found on the table below. Compared to the 2022 Integrated Report, there was only one topic that was not included which was the management of the COVID-19 pandemic. Disclosure related to this topic is under Occupational Health and Safety while an additional four (4) topics were no longer material as a result of the exercise. There are four new topics that made it for the first time on the 2023 final list of materials namely tax, sustainable finance, market presence and indirect economic impacts.

MATERIAL
TOPICS		 KEY INDICATORS CURRENT IMPACT ON
VALUE CREATION		 TIMEFRAME
OF IMPACT*		 LINK TO
STRATEGY		 LINK TO OUTLOOK
ENVIRONMENT
Materials Materials used by weight or volume whether from renewable and non-renewable sources

Decrease in use of materials needed for the power generation process

Increase in the use of renewable materials

 Short to
Medium Term		 Grow our portfolio to
13GW		 Expanding and upgrading our clean energy asset profile
Energy Energy consumption within the organization

Decrease in energy consumption that comes from fuel

Electricity is a crucial component of our operations.

 Short to
Medium Term		 Create Total Stakeholder
Value		 Using technical, commercial, and technological improvements to enhance our portfolio’s carbon intensity
Reduction of energy consumption
Average generation efficiency for natural gas plants
Water and Effluents Total water withdrawal Decrease in water consumption of our operations particularly in our natural gas and hydro plants. Short to
Long Term		 Create Total Stakeholder
Value		 Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
Total water discharged
Total water consumption
Compliance with water-related regulatory requirements
Emissions Gross direct greenhouse gas (GHG) emissions (Scope 1)

Decrease in Scope 1 emissions which is the primary byproduct of the power generation process

Increase in Scope 3 emissions especially on our fuel-related activities as we started to account for this emission

Increase in carbon emission intensity

 Short to
Medium Term

Grow our
portfolio to
13GW

Create Total Stakeholder
Value

Expanding and upgrading our clean energy asset profile

Using technical, commercial, and technological improvements to enhance our portfolio’s carbon intensity
Gross indirect GHG emissions (Scope 2)
Gross other indirect GHG emissions (Scope 3)
GHG emissions intensity ratio
Amount of GHG emissions reductions achieved
Programs that reduce, eliminate, or prevent pollution at its source
Amount of nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM), carbon monoxide (CO) and other significant air emissions such as lead (Pb) and mercury (Hg)
NOx , SOx, CO, PM, Pb and Hg emission intensity
Waste Total waste generated

Decrease in total waste generated from our operations and activities

Increase in the waste diverted from disposal by composting and recycling of wastes

 Short to
Long Term

Create Total Stakeholder
Value

 Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
Total waste diverted from disposal
Total waste directed to disposal
Waste generation and significant waste-related impacts
Climate Action Description of the impact associated with the climate-related risk or opportunity and method of management More resilient infrastructure and reliable operations due to implemented measures to mitigate climate-related risks Short to
Long Term

Grow our
portfolio to
13GW

Create Total Stakeholder
Value

Expanding and upgrading our clean energy asset profile

Using technical, commercial, and technological improvements to improve our portfolio’s carbon intensity
Long-and short-term strategy or plan to manage Scope 1 emissions
Strategies or plans to address air emissions-related risks, opportunities, and impacts
Environmental Compliance Number of incidents of non- compliance with environmental permits, standards, and regulations Maintain zero environmental non-compliance in our operations and responding promptly to regulatory changes Short to
Medium Term		 Create Total Stakeholder
Value		 Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
Biodiversity Size of restored and protected areas Sustainment of biodiversity programs that is paramount for the long-term sustainability of ecosystems surrounding your operating assets Short to
Long Term		 Create Total Stakeholder
Value		 Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
List of environmental programs
Number of kilometers of foot and drone patrols
Number of seedlings generated
List of information, education and communication (IEC) advocacies to promote species conservation
SOCIAL
Employment New employee hires and employee turnover Improved quality of service to internal customers, our employees; Short to
Medium Term		 Enable the
organization

Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement

Pushing forward with human capital management development and training
Benefits provided to full-time employees that are not provided to temporary or part-time employees
Labor /
Management Relations		 Minimum notice periods regarding operational changes

Increased level of employee engagement and experience on "moments that matter"

Agreeable working relationships that lead to better productivity and reliability

 Short to
Medium Term		 Enable the
organization		 Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
Occupational
Safety and
Health (OSH)		 The number and rate of fatalities, high-consequence work-related injuries, recordable work-related injuries, and hours worked and trend

Decrease in the number of injuries and illnesses among employees and contractors

Prevention of work-related injuries and illnesses due to reporting of near-miss incidents and the implementation of OSH Management System

 Short to
Long Term

Enable the
organization

Create total
stakeholder
value

 Ensuring ESG remains a key priority when it comes to strategy and operation
Number of fatalities and cases of recordable work-related ill health
Near Miss Frequency Rate
OSH audits conducted
List of OSH training conducted for employees and contractors
Amount invested for implementation of OSH Programs
List of CESHM Activities and outcomes
List of occupational health services
Local
Communities		 Operations with local community engagement, impact assessments, and development programs

Support to the community by implementing health, education, livelihood, environment, emergency response and relief, and socio-cultural programs.

Agreeable partnership between the Company and host communities

 Short to
Medium Term

Create total
stakeholder
value

 Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
Operations with significant actual and potential negative impacts on local communities
Amount invested to community per category
Supplier Social
Assessment		 Number of suppliers that were screened using social criteria Influencing our suppliers and contractors to ensure fair and just treatment to their workers through our vendor accreditation process Short to
Medium Term		 Decarbonize through securing regenerative partners Ensuring ESG remains a key priority when it comes to strategy and operation
Percentage of suppliers identified as having significant actual and potential adverse social impacts
Customer Health
and Safety		 Assessment of the health and safety impacts of product and service categories Maintain zero non-compliance by ensuring that all of our operating plants were designed and operated per Industry health and safety standard. Short to
Medium Term		 Enable the
organization		 Ensuring ESG remains a key priority when it comes to strategy and operation
Customer
Privacy		 Substantiated complaints concerning breaches of customer privacy and losses of customer data Maintain zero breaches of customer privacy through the implementation of our cybersecurity practices. Short to
Medium Term		 Enable the
organization		 Ensuring ESG remains a key priority when it comes to strategy and operation
Customer
Relationships		 Number of customers per category

Customers’ appreciation on value added services and increased comprehension on the balance of clean and RE solutions

High level of customer satisfaction due to our services and efforts to address their concerns

 Short to
Medium Term		 Decarbonize through securing regenerative partners Consistent re-evaluation and adjustment of our planning calculations and strategies in response to market dynamics and demand
Stakeholder
Engagement		 Frequency of engagement by type and by stakeholder group Increased understanding of stakeholder concerns by utilizing various engagement channels to communicate their subjects of interest or concern Short to
Medium Term		 Decarbonize through securing regenerative partners

Consistent re-evaluation and adjustment of our strategies and solutions in response to market dynamics and demand

Ensuring ESG remains a key priority when it comes to strategy and operation
List of stakeholder group
List of stakeholders’ concerns
List of engagement channels
Power Supply
Availability		 Plant Availability Despite the technical challenges faced by the Company’s various plants and facilities, some segments have managed to reach or even exceed their goal in delivering reliable electricity Short to
Medium Term		 Grow our
portfolio to
13GW		 By growing to 13GW with a bias for RE, we continue to support the country’s growth requirements, with a portfolio driven by clean and renewable energy
Plant Reliability
No. of hours of forced outage
No. of hours of planned outage
Human Rights Employee training and number of hours of training on human rights policies Respect of human rights lead to productivity and conducive work environment Short to
Medium Term

Enable the organization

Create total stakeholder value

 Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
List of initiatives and outcomes
Number and percentage of operations subjected to human rights review or impact assessment
Training and
Education		 Average hours of training per year per employee Improved competency of employees and workers result in increased productivity and efficiency at work, enhanced quality and customer service, and cost effectiveness Short to
Medium Term

Enable the organization

Pursuing a customer- centric mindset through training and development

Pushing forward with human capital management development and training
Programs for upgrading employee skills and transition assistance programs
Percentage of employees per category, by gender and age group
Diversity and
Equal
Opportunity		 Total number of incidents of discrimination and corrective actions taken Increased employee engagement and employer branding by through the various programs and initiatives on equity and inclusion Short to
Long Term		 Enable the organization Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
Percentage of women in leadership positions
Employee male to female ratio by rank and age group
GOVERNANCE
Economic
Performance		 Revenues per platform 92% of First Gen’s total generated economic value was invested into the economy in the form of operating costs, employee wages and benefits, payments to providers of capital, and payments to the Government Short to
Long Term		 Grow our
portfolio to
13GW		 By growing to 13GW with a bias for RE, we continue to support the country’s growth requirements, with a portfolio driven by clean and renewable energy
Consolidated net income
Net income attributable to equity holders of the parent
Recurring net income attributable to equity holders of the parent
Economic Value Generated
Economic Value Invested
Economic Value Retained
Market Presence Ratios of standard entry level wage by gender compared to local minimum wage Maintain high proportion of senior management from local community by prioritizing local hiring with due consideration to local regulations and hiring standards Short to
Medium Term

Enable the organization

Create total
stakeholder
value

 Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
Indirect
Economic
Impacts		 Infrastructure investments and services supported Economic and social progress in the regions in which our Company operates, through financial investments intended to upli the lives of people Short to
Medium Term		 Create total stakeholder value Pursuing ESG-related focus areas such as resource management (water and waste), biodiversity, regenerative business models, host community development, and employee engagement
Significant indirect economic impacts
Tax Approach to tax Compliance with tax laws through the payment of correct and equitable taxes to the tax authorities, which is essential to nation building and economic growth Short to
Medium Term		 Create total stakeholder value Ensuring ESG remains a key priority when it comes to strategy and operation
Tax governance, control, and risk management
Innovation Initiatives developed and implemented, including business units that benefited and their corresponding outcomes

Effective carry-out of our operations and utilization of other capitals through digitalization and reliable systems

Building a culture of innovation and continuous improvement

 Short to
Long Term

Grow our
portfolio to
13GW

Enable the organization

 Developing systems and processes to facilitate experimentation and innovation
Sustainable
Finance		 Employment of capital towards the most cost-efficient and high-return projects aligned with our mission Optimizing value of the investment to achieve growth and income aspirations Short to
Long Term

Grow our
portfolio to
13GW

 By growing to 13GW with a bias for RE, we continue to support the country’s growth requirements, with a portfolio driven by clean and renewable energy
Business Ethics
and Governance		 Established governance policies and mechanism By implementing its policies, the Company is able to establish mechanisms whereby integrity and ethical business standards are ensured. Likewise, the policies are the Company’s instruments to support the maintenance and development of its capitals and monitor the organization’s culture Short to
Long Term		 Enable the organization Ensuring ESG remains a key priority when it comes to strategy and operation
Whistleblower protection
Oversight for ethics issues and processes for evaluating the performance of the highest governance body in overseeing the management of the organization’s impacts on the economy, environment, and people;
Policy commitments for responsible business conduct and respect to human rights
Processes to remediate negative impacts
List of Corporate Policies
Corporate
Governance		 Governance structure, including committees of the highest governance body Strict compliance with corporate governance regulations and continuous improvement on corporate processes to be at par with global best practices Short to
Long Term		 Enable the organization Ensuring ESG remains a key priority when it comes to strategy and operation
Nomination and selection processes for the highest governance body and its committees
Role of the highest governance body in sustainability reporting
Expertise of governance body including ESG
Remuneration policies for members of the highest governance body and senior executives,
Risk
Management		 Description of key impacts, risks, and opportunities Sustained implementation of mitigating actions for risks that could result in damage or reduced efficiency of power generation facilities causing capacity to be downgraded, operations temporarily stopped or shut down completely Short to
Long Term		 Enable the organization Ensuring ESG remains a key priority when it comes to strategy and operation
Mitigating actions on risks
Description of risk assessment process
Data Privacy Number of violations of the Data Privacy Act Maintain adherence to the Data Privacy Act through protection of our Company’s data security and stakeholders’ personal privacy Short to
Medium Term		 Enable the organization Ensuring ESG remains a key priority when it comes to strategy and operation
Programs on Data Protection
Anti-Corruption Percentage of operations assessed for risks related to corruption Enforcing our policy commits to ensuring that all business activities are conducted in an ethical manner Short to
Long Term		 Enable the organization Ensuring ESG remains a key priority when it comes to strategy and operation
* For timeline of impact: Short Term (1-5 years), Medium Term (5-10 years), Long Term (10 or more years)