SCOPE AND BOUNDARY
The FPH Integrated Report covering the period January 1 to December 31, 2021, provides the material information on our mission, strategy, business model, risks and opportunities, external environment, performance of our six capitals (financial, manufactured, natural, human, intellectual, and social), and governance which informs the values we created for our business and our stakeholders.
The report discusses the financial and non-financial (environmental, social, and governance or ESG) performance of our major business segments, namely, energy, real estate, and construction, where FPH has majority management and operational control. Some ESG material issues may extend to other stakeholders consistent with our mission of contributing to the restoration and resiliency of the planet and people. The disciplined approach that we took to ensure that all our subsidiaries were equally equipped with the skills to gather the data gives us confidence in the consolidated information presented in this report.
REPORTING PHILOSOPHY
The report was prepared in conformity with the Framework of the Value Reporting Foundation (formerly known as the International Integrated Reporting Council). The financial portion of the report was prepared in compliance with the Philippine Financial Reporting Standards (PFRS), while the discussion of non-financial aspects was guided by Memorandum Circular No.4 of 2019 of the Philippine Securities and Exchange Commission (SEC).
To address the concerns of the multiple stakeholders of the company, the analysis of our material ESG issues were referenced on the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), the UN Guiding Principles on Business and Human Rights (UNGP), and the UN Sustainable Development Goals (SDGs). An index on the relevant ESG standards and references is presented here.
MATERIALITY APPROACH
This year, we adopted the “Double Materiality” approach in assessing our material and evolving ESG issues. Consistent with our mission of decarbonization and regeneration, we reviewed the ESG information through two lenses—the impacts of ESG issues on our financial performance and the impacts of the business on the planet, people, and economy. We consider an ESG issue as material to the company if it poses financial risks, hinders our ability to comply with relevant regulations, affects our license to operate in our worksites, and downgrades our reputation, which limits our access to capital. On the other hand, our business’ impacts are material if our business limits the ability of people to access what they need to thrive and if we alter the environment to a state that interferes with their functions. Our process in selecting our material ESG issues are described in the Our Material Topics, Standards, and References section here.
IMPROVEMENTS IN THE REPORT
This year, we communicated the new initiatives in our processes, namely, a) presentation of a point of view on the status of the capitals, b) adoption of the emerging process of total valuation, which includes the use of double materiality in selecting the ESG issues, c) financial tagging of expenditures to preserve capitals, d) disclosure of the implications of the external environment and risks to our value creation strategy, and e) presentation of the impacts of risks on the future of the business and the timeframe.
ASSURANCE
The FPH Board provided internal assurance of the report, assisted by its Corporate Governance Committee. The full certification by the Board is provided in the following section.
To check the compliance of the report with the Guiding Principles and Content Elements of the Framework, we commissioned the University of Asia and the Pacific-Center for Social Responsibility (UA&P-CSR) as an external and independent expert to evaluate the report.
The report is uploaded on the company website (www.fphc.com).
HOW TO READ THE REPORT
The focus of this report is our value creation story. It starts with a leadership overview of where we are in our mission and where we are heading. This tone from the top, together with our operating context, influenced how our strategy and business model delivered the mission.
We explained how the factors in the external environment affected the transformation of our capitals into products and services, which are the sources of value for the business and others. Lastly, we identified which values we created contribute to sustainable development goals.
REPORT DISCLAIMER
Certain portions of the Integrated Report, other than the information on historical facts and audited financial information, may be forward- looking statements regarding our growth prospects and outlook. These are based on the company’s analysis of trends, projections, plans, and other information available as of the writing of the report. The scenarios presented are not intended to be predictions of likely future events and outcomes. While we believe that the declared expectations may be reasonable, investors
and other stakeholders are cautioned that the actual outcomes may differ materially from those expressed or implied. Future situations are difficult to predict as these are subjected
to risks and uncertainties that may be beyond the company’s control. The continuing peril and the evolving nature of the COVID-19 pandemic still pose uncertainties to our forecast of the company’s outlook.
CERTIFICATION FROM THE BOARD
I hereby certify that the 2021 FPH Integrated Report is a fair presentation of the company’s operations from January 1 to December 31, 2021. Disclosures on all issues material to the company and our stakeholders were based on updated and accurate information available to the company for the reporting period. This certification is being issued based on the February 4, 2021 authorization of the FPH Board for the annual issuance of an Integrated Report to communicate to the company’s stakeholders the financial and non-financial (environmental, social, and governance) performance of the company and its designation of the Corporate Governance Committee to review and finalize the report.
The Management supported the Board through the inter-departmental Technical Working Groups (TWG) from all participating FPH subsidiaries. The President and COO provided oversight in collaboration with responsible officers from the Corporate Sustainability, Environmental Safety and Health, Enterprise Risk Management, Finance, Operations, Legal and Regulatory, and Integrated Corporate Communications groups. Based on the foregoing, the final review of the report was conducted by the Corporate Governance Committee and approved by the Board on March 29, 2022.
The report was released on April 18, 2022.