Our Value Creation
Protecting Nature and People, Enabling Business, and Positively Impacting Lives
Financial capitals are our sources of funds to produce goods and provide our services.
Our manufactured capital is the physical assets, infrastructure, and equipment that we and our business segments use to provide our customers with our products and services, ultimately creating value.
Our natural capital is composed of the renewable and non-renewable materials and resources we use to develop our products and services that create value for our customers and stakeholders.
Our human capital is composed of the knowledge, expertise, and experience brought by the employees of our businesses. Empowered by our culture, we strive to provide our employees with the proper arsenal to deliver their best at the workplace.
Our intellectual capital arises from our organizational knowledge, systems, procedures, intellectual properties or licenses, and research. This capital helps us achieve the successful development of our projects and new businesses, the effective and efficient management of existing assets, and streamlined operations of the various companies.
Social and Relationship Capital
Our social and relationship capital relies on our relationships with our customers, host communities, and other external stakeholders. We believe our social license stemmed from our mindful engagement with stakeholders, which led to public acceptance, collaborative supply chain, government support, and customer loyalty.
Our ESG Values
In 2021, we endeavored to better estimate these values by refreshing how we look at investments toward the many different activities in our businesses.
Contributing to society through our purpose
Our commitment to sustainable development is the first step in achieving our mission of regeneration and decarbonization.
Our social and relationship capital relies on our relationships with our customers, host communities, and other external stakeholders. We believe our social license stemmed from our mindful engagement with stakeholders, which led to public acceptance, collaborative supply chain, government support, and customer loyalty. Anchored by the Pentad Stakeholder framework of Carol Sanford, we are guided as a business in creating our intended values. Our discussion on our stakeholders and our relationships with them can be found in the Stakeholder Management section here.
More details on our approach to managing social and relationship capital can be found in Annex 3 of our 2020 Integrated Report, uploaded on our website at https://www.fphc.com.
VALUE FOR OUR CONSUMERS
As a conglomerate focused on empowering industries related to nation-building, we are committed to providing topcaliber products and services to execute our purpose and serve our stakeholders.
In solidifying our commitment, customer satisfaction (CSAT) surveys are conducted regularly across our business segments to understand the perception and opinion of our customers and clients. Our power generation, energy solutions, construction, and industrial real estate businesses annually conduct these surveys and checkins. Our residential and commercial real estate business conducts their surveys biennially.
Consistently, our business segments received favorable reviews for the products and services they provide. We use these metrics not only as a motivation to continue delivering on our best, but also to study pain points and work on areas for improvement.
Aside from delivering the best-in-industry products and services, we also ensure their affordability and accessibility to consumers of all markets.
In our power generation business, we ensure that our power generation prices are competitive with local market rates while consumers can enjoy the premium of benefitting from our renewable energy offerings. We also provide value-added services that customers may request in terms of knowledge or skills for them to understand the power we deliver and how to use it efficiently.
As a result, our Burgos wind farm received a special citation from Philippine Electricity Market Corporation (PEMC) for compliance with spot market prices. We recently offered Tradable Instruments for Global Renewables (TIGR) certificates, an equivalent of the Renewable Energy Certificates (REC) outside America, for our customers and clients, which certifies them as users of renewable energy to meet their personal goals.
In our residential real estate business, we continue to expand our affordable housing segment through Stonewell in Sto. Tomas, Batangas. Our industrial real estate business is considered as one of the top-ranking industrial parks accredited by the Philippine Economic Zone Authority (PEZA) based on investment values for locator expansion projects in 2021.
VALUE FOR OUR PARTNERS AND HOST COMMUNITIES
Contribution of FPH Companies
Given the nature of our business segments, our operations are in various locations around the Philippines. This prompted our group to be mindful of our community interactions to garner a social license in our areas of operation. As corporate citizens, we consider them as our partners in scaling up our capitals and values, therefore we safeguard and provide support to them to the best of our abilities. Aside from our local community partners, we also collaborate and support organizations that share our mission and advocacies.
Across our business segments, we invested PHP161.8 million in donations, community activities, and environment-related projects. These investments enabled us to build on our existing initiatives while piloting new Corporate Social Responsibility (CSR) activities that catered to the needs of our community beneficiaries. Managing the impacts of COVID-19 in 2020 allowed us to focus again to our key initiatives in education, environment, livelihood, and disaster resilience.
To support our local communities, we supplied educational materials, provided technical support, and supported Brigada Eskwela in at least 67 schools benefitting 46,237 students across the country for our education front. We also gave 649 students scholarship grants, 42 of whom come from indigenous communities. As part of the sustainable livelihood projects supported by our power generation business, 31 indigenous families earned PHP280,000 in net revenues from coffee farming.
Aside from contributing to our host communities, we also had a chance to share our knowledge and expertise with other organizations that share our values and advocacies. In 2021, we participated in at least 15 different external engagements to discuss various issues related to sustainability, climate change, social issues, and ESG reporting, which had at least 3,616 direct participants. The statistics do not include the videos uploaded online. Our energy business, led by EDC, recently launched the Net Zero Carbon Alliance, a network of eight local companies spearheading the movement to achieve carbon neutrality aligned with the country’s goal to reduce carbon emissions by as much as 75 percent. Aligned with our mission, we hope to continue working with partners who will aid us in our regeneration journey.
Our Contributions to Fight COVID-19
Due to the ongoing threats of COVID-19, we continued to provide health and medical support to at least 12,290 individuals across the country. To date, our energy business constructed seven molecular laboratories across the country to expedite COVID-19 testing. As we usher into the new normal, we encouraged vaccinating our stakeholders as a mitigation measure against COVID-19.
We expanded our vaccination drives across our business segments to include our third-party contractors, local community members, and other local government units. Our real estate, construction, and education businesses supported #KaVac, a communications campaign to encourage stakeholders to be vaccinated. Our energy businesses also donated thousands of vaccine doses to their local community partners. Combining these with our groupwide vaccination effort, Vac2Normal, we allocated at least 385,000 doses of COVID-19 vaccine to the local government.
To further promote vaccination, our industrial real estate business sponsored the cost of syringes used in inoculating COVID-19 vaccines to the residents of its partner LGUs. Our residential and commercial real estate business lent The Fifth at Rockwell as a vaccination site to the Makati LGU, which lead to the inoculation of 15,000 local residents.
LOPEZ GROUP FOUNDATION INC.
To harmonize and synergize the environment, community, and nation-building corporate social responsibility (CSR) projects of our business segments, we worked with the Lopez Group Foundation Inc. (LGFI) in 2020 to launch the seven advocacy clusters, namely Environment, Education, Humanitarian Action, Sustainable Livelihood and Social Entrepreneurship, Child’s Rights, Health and Wellness, and Arts and Culture. By linking the CSR programs of the FPH subsidiaries with those of our foundations, we are able to pool together our talents, resources, and efforts that deliver a holistic approach to conducting corporate social responsibility.
For a pilot program, the LGFI signed a Memorandum of Understanding with Lobo, Batangas to pilot the Clusters Area Development program in June 2021. Aligned with our mission of forging collaborative pathways to regeneration, the program aims to build resilient and regenerative communities by using an integrated approach in CSR through the incorporation of our advocacy clusters. For the case of Lobo, the focus is on advocacy clusters Child Rights and Development, Environment, Education, and Social Enterprise.
SIKAT SOLAR CHALLENGE FOUNDATION, INC.
The Sikat Solar Challenge Foundation, Inc. (SSCFI or Sikat) is a non-profit organization whose mission is to uplift the lives of Filipinos in rural communities without electricity. Sikat works through various organizations and helps them deliver innovative and sustainable renewable energy (RE) systems and solutions.
Assisted by our power generation segment, Sikat provided electricity to 54 households and a health center in its five pilot communities in Mindoro. Electrification helped the residents of these pilot communities. Through the solar-powered health center, 166 patients were attended and treated. Residents were also introduced to new activities due to the electrification, such as using electric razors for haircuts, students can now attend online classes, and a readily-available charging station for the community and neighboring communities.
OSCAR M. LOPEZ CENTER FOR CLIMATE CHANGE ADAPTATION AND DISASTER RISK MANAGEMENT FOUNDATION, INC. (OML CENTER)
The Oscar M. Lopez Center for Climate Change Adaptation and Disaster Risk Management Foundation, Inc. (OML Center) is a non-profit organization born out of a private sector initiative to enhance support for research and innovative solutions toward climate change adaptation and disaster risk management. It is rooted in the principle that science must play a role in building the resilience of communities through actionable knowledge. Founded in 2012, the OML Center was established in response to an apparent research gap that was alarmingly disproportionate to the climate-related risks and vulnerabilities of the Philippines. The first of its kind in the country, the OML Center continues to be the only privately funded grantgiving non-governmental organization (NGO) doing research-based climate change programs and initiatives.
In 2021, OML Center released 18 publications concerning climate change and environmental sustainability. The center was also active in communicating its mission and purpose to a broad range of stakeholders, including the youth, government, international arena, media, and private sector.
In partnership with the Department of Environment and Natural Resources - Climate Change Service (DENR-CCS), the center conducted an internal training on the Climate Responsiveness Criteria to assess the agency’s plan and programs. This led to the release of Department Administrative Order (DAO) 2022-21: Guidelines on Mainstreaming, Cascading, and Institutionalizing Climate Change Concerns in the Environment and Natural Resources (ENR) Priority Programs, which endorsed the Climate Responsiveness Criteria studied by the center in 2019. To promote sciencebased communication and media strategies in communicating climate change, the center also launched the Balangay Media Project, which enabled media practitioners to participate and receive grants under the Umalohokan Fellowship.
For more information on OMLC’s initiatives, you can visit their website at https://www. omlopez center.org/.
ANG MISYON, INC
Ang Misyon, Inc (Ang Misyon) is a non-profit organization that supports the musicallytalented, less-privileged youth. The organization believes that social change is sparked through learning orchestral music. Since 2012, it has helped over a thousand scholars and continuously provides programs that focus on orchestral training and instrument support. Scholars are also given the opportunities for local and international performances and serve as mentors to their younger members. Through Ang Misyon, they can share the values and skills they have learned from their mentors and peers.
Ang Misyon offers music programs that aim to develop music skills and talents at an early age. Children and youth are introduced to the world of music and its possibilities, preparing them to progress to professional levels eventually. The values of commitment, discipline, and community are ingrained in their orchestral training, which empowers them to become responsible members of society.
The Orchestra of the Filipino Youth (OFY) is Ang Misyon’s flagship music program and main performing arm. Under the baton of Gerard Salonga and the guidance of professional mentors, the OFY curriculum is specifically curated for a high-quality youth orchestra. One-onone lessons, sectional workshops, and masterclasses allow them to learn challenging pieces ranging from classical and pop music. Members of the OFY have also grown to become mentors to the younger generation, sharing their learnings and experiences from Ang Misyon as a way of paying it forward.
Given the constraints of the pandemic, most of Ang Misyon’s lessons and performances were conducted virtually. Partnerships and collaborations with local institutions paved the way for OFY to elevate its online presence in 2021. Virtual performances were opportunities for the OFY to engage their audience and fulfill the goal of expanding the reach of orchestral music. These also showcase how far the scholars have come in the music program and bring more awareness to the advocacy of Ang Misyon. These pathways forged strong and generous support from individuals, small groups, and organizations who believe in empowering the youth through music.