<<

GMA Regional TV’s Kapuso Barangayan on Wheels (KBoW) in Brgy. Lanas, Mangaldan, Pangasinan on September 2, 2020; KBoW provided families with food packs, rice, and groceries, as well as locally produced vegetables in different barangays across the country. In 2020, KBoW was able to extend assistance to a total of 7,410 families amidst the COVID-19 pandemic. GMA,“ as the country’s most trusted Network, remains on the field and steadfast in its commitment to deliver ‘‘ unbiased and accurate news, information, and superior entertainment programs to Filipino homes here and abroad. FELIPE L GOZON FELIPEChairman L. andGOZON CEO Chairman and CEO Bravery in Uncertainty headlines GMA Network’s 2020 sustainability report, covering the year ended December 31, 2020, and prepared using the Global Reporting Initiative (GRI) standards as guide. This report outlines disclosures about our environmental, social and governance impacts, specific to the topics deemed material to the Network.

In addition, the report describes how GMA Network supports the 17 United Nations Sustainable Development Goals (UN SDGs).

This report has been prepared in accordance with the GRI Standards: Core option. It should be read in conjunction with GMA Network’s 2020 Annual Report. Both reports may be accessed on the GMA Network website (www.gmanetwork.com).

GMA Network welcomes feedback and questions regarding this report or its contents through our Chief Risk Officer (CRO) Regie C. Bautista ([email protected]). Posted in front of GMA Network Center along Timog Avenue in was a message of gratitude for all frontliners #HEROES From our Chairman and CEO

We are living in one of the most Guided by our corporate purpose, vulnerable moments in history. We vision, and values, we remain continue to see it in the news we committed to making a air: a pandemic we never thought meaningful impact while we’d experience in our lifetime, the sustainably creating value for our world on lockdown, the significant stakeholders. In this report, you loss of lives, compounded by will see how we continue to take natural disasters such as volcanic this commitment to heart. eruptions and typhoons. Today and in the generations to During these unprecedented come, we will always remain times, as many stay home to curb committed to building a better the spread of the virus, GMA, as future. This our pledge to our the country’s most trusted Kapuso viewers who have Network, remains on the field and supported us through 7 decades, steadfast in its commitment to and in many more to come. deliver unbiased and accurate news, information, and superior Sa ano mang oras at panahon, entertainment programs to palagi po kaming mananatiling, Filipino homes here and abroad. Buong Puso Para Sa Pilipino. Through the stories we tell and the partnerships we have built, we continue to deepen the awareness around issues affecting our society, environment, and economy.

FELIPE L. GOZON Chairman and Chief Executive Officer (CEO)

Contents

From our Chairman and CEO 6

GMA Network: The ’ 10 leading broadcasting company

Our sustainability initiatives 16 • Sustainability strategy • Ethics and integrity • Governance • Engaging our stakeholders • Reporting practice

Impact on society 25

Managing our footprint 39

Economic impact 47

GMA Network supports the 52 United Nations Sustainability Development Goals

GRI context index 63 GMA Network: The Philippines’ leading broadcasting company

GMA Network was founded by Robert Also known as the Kapuso (One in La Rue Stewart in 1950 as Loreto F. de Heart) Network, GMA brings Hemedes, Inc. (later renamed Republic superior Entertainment and the Broadcasting System, Inc.) with responsible, unbiased, and timely AM radio station DZBB. RBS ventured delivery of accurate News and into television in 1961 and began Information to worldwide. Its broadcasting on Channel 7 in the flagship channel, GMA, broadcasts Greater Area. free-to-air via VHF channel 7 and its permanent digital TV signal on UHF In 1974, the triumvirate of Felipe L. channel 15. Gozon, Menardo R. Jimenez and Gilberto M. Duavit took over the Apart from its television and radio management of RBS. In 1996, RBS was businesses, GMA also owns a wide renamed GMA Network, Inc. array of media-related entities engaged in program syndication, film Today, GMA Network, Inc. is the production, music publishing and leading broadcasting company distribution, set design and in the Philippines which produces implementation, audio-visual the most innovative, most trusted, and production, and new media. top rating TV programs. Based on Nielsen Philippines, GMA reached GMA Network, Inc. was officially listed over 84 million Filipinos across in the Philippine Stock Exchange in the country with 48.8 percent people 2007. audience share in Nationwide Urban TV Audience Measurement (NUTAM) The Network is now recognized as for the year 2020. one of the notable organizations that promote sustainability in Headquartered in Quezon City, GMA the country, being the first media operates a network of 85 TV and broadcasting company in the stations and 23 radio stations Philippines to sign with the United throughout the country. Nations (UN) Global Compact.

10 GMA NETWORK, INC Sustainability Report 2020 Our purpose We enrich the lives of Filipinos everywhere with superior Entertainment and the responsible, unbiased, and timely delivery of accurate News and Information.

Our vision • We are the most respected, undisputed leader in the Philippine broadcast industry and the recognized media innovator and pacesetter in Asia. • We are the Filipinos’ favorite network. • We are the advertisers’ preferred partner. • We are the employer of choice in our industry. • We provide the best returns to our shareholders. • We are a key partner in promoting the best in the Filipino.

Our values • We place God above all. • We believe that the Viewer is Boss. • We value our People as our best assets. • We uphold Integrity and Transparency. • We are driven by our Passion for Excellence. • We strive for Efficiency in everything we do. • We pursue Creativity and Innovation.

GMA NETWORK, INC Sustainability Report 2020 11 Our brand portfolio

GMA and Gtv* are free- to-air TV channels that are broadcast throughout the Philippines

GMA Regional TV (RTV) is our operational arm in key cities and provinces. RTV produces top-rating and award-winning local programs and TV specials, and mounts tailor-fit events and activities for a diverse regional audience and clientele.

Super Radyo DZBB 594 kHz is the flagship AM radio station of GMA Network. It is one of the top stations in the AM band and is recognized as one of the most awarded stations. There are 4 other Super Radyo AM stations and 4 relay stations throughout the country.

Barangay LS 97.1 DWLS FM is the flagship FM radio station of GMA Network. There are 14 other Barangay FM stations across the country.

ROUGH LOCATION PINS

GMANetwork.com GMA RTV locations GMANetwork.com is the official website Super Radyo DZBB 594 kHz and Entertainment portal of GMA Network. Super Radyo AM stations Barangay LS 97.1 DWLS FM GMA News Online Barangay FM stations Relay stations GMA News Online is GMA’s official news website that offers the latest breaking news and stories in the Philippines and around the world. *Gtv is the re-branded GMA News TV in the Philippines Consumer products: Digital TV receivers GMA Pictures GMA Affordabox is a device that allows analog GMA Pictures is a film and TV TV to receive digital TV production company established by broadcast. Over 1M GMA GMA Network in 1995. Its films have Affordabox units were become both critical acclaim and sold in the market only 7 commercial successes, among which are months after its launch. Jose Rizal, Muro Ami, and Deathrow.

GMA Now is a mobile digital TV broadcast receiver that comes with exclusive features GMA Videos On-Demand for GMA Music streaming videos, Groupee for chatting with friends, and GMA Music is engaged in the Interactive Promos. publishing, licensing, production, and distribution of music. It is a member of the Philippine Association of the Record Industry (PARI) and has the distinction of having 2 Diamond Record awards in the highly competitive music scene.

International pay TV

The distribution footprint of GMA GMA On Demand is a International (GMAI) covers 104 countries all free and pay video over the world including 17 in the Asia Pacific, 29 in on-demand offering the Middle East and North Africa, 16 European countries, the , Canada, and 40 from the of GMAI. rest of the world.

GMA Network’s purely DTT free-to-air channels

Launched in 2021 (on Launched in 2021 test broadcast starting December 2020) Our businesses

GMA Network is primarily in the business of radio and . We are also involved in film production and other information and entertainment-related businesses: Percentage of ownership Principal activities Direct Indirect ENTERTAINMENT BUSINESS Alta Productions Group, Inc. (Alta) Pre and post-production services 100 - Citynet Network Marketing and Television entertainment production 100 - Productions, Inc. (Citynet) GMA Network Films, Inc. Film production 100 - GMA New Media, Inc. (GNMI) Converging technology 100 - GMA Worldwide (Philippines), International marketing, handling foreign 100 - Inc.* program acquisitions and international syndication of the GMA Network’s program Scenarios, Inc.** Design, construction and maintenance of 100 - sets for TV, stage plays and concerts; transportation services RGMA Marketing and Music, recording, publishing and video 100 - Productions, Inc. distribution RGMA Network, Inc. and management 49 - Script2010, Inc.*** Design, construction and maintenance of - 100 sets for TV, stage plays and concerts; transportation services ADVERTISING BUSINESS GMA Marketing & Productions, Exclusive marketing and sales arm of GMA 100 - Inc. (GMPI)**** Network’s airtime, events management, sales implementation, traffic services and monitoring , Inc.***** Crafting, planning and handling advertising - 100 and other forms of promotion including multi-media production OTHERS Media Merge Corporation****** Business development and operations for - 100 GMA Network’s online publishing and advertising initiatives Ninja Graphics, Inc.******* Ceased commercial operations in 2004 - 51

*Ceased commercial operations in 2020 ******Indirectly owned through GNMI; ceased commercial **Under liquidation operations in 2020 ***Indirectly owned through Citynet *******Indirectly owned through Alta; ceased commercial ****Ceased commercial operations in 2015 operations in 2004 *****Indirectly owned through GNMI

14 GMA NETWORK, INC Sustainability Report 2020

Our sustainability initiatives

Realizing the urgency of protecting the ability of future generations to meet their needs, GMA Network adheres to and promotes sustainable measures in managing the resources we use in our day-to- day operations. Further, the Network recognizes that the social, environmental, and economic concerns of our stakeholders, both internal and external, are at times in tension and we continuously seek ways to address them effectively, efficiently, and innovatively.

Sustainability strategy Our sustainability strategy is grounded on effective corporate governance for an ethical and responsible Network.

In the heart of our strategic approach is Content (TV, radio, and digital) the management of our key economic, that contribute environmental, and social impacts. To to society achieve this, we establish productive and meaningful partnerships with individuals Creating Productive and value and organizations. GMA’s socio-civic meaningful through arm, the GMA Kapuso Foundation, partnerships sustainable with individuals allows us to extend the reach of our Network Accurate and organizations operations community service by fostering such towards the reporting of achievement of key impacts partnerships with trusted institutions. sustainability goals Management We ensure accurate reporting of key of key impacts impacts not just for compliance purposes but for effective measurement and continuous improvement of our existing efforts. Economic Environmental Social

Ultimately, we strive to create value through sustainable Corporate governance for an ethical and Network operations. responsible Network

16 GMA NETWORK, INC Sustainability Report 2020 Ethics and integrity

Under the direction and guidance In addition, we have a strictly of GMA Network’s Board of implemented Code of Conduct that Directors, we uphold fundamental promotes among our people a beliefs, philosophies, and principles positive attitude of commitment and upon which our business and our cooperation. The code further people’s behavior are based. provides management with specific guidelines in an effort to develop and Our corporate values are deeply maintain harmonious relationships ingrained in our operations, guiding within the organization, and within the our people’s decisions and actions local and international community of from the simplest of tasks to major business, regulatory, and other entities undertakings. and partners pursuing the same goals as the Network.

Governance GMA Network is committed to the GMA’s Board of Directors principles of good governance and recognizes their importance in Compliance with the principles of safeguarding shareholders’ good governance starts with the interests and in enhancing Network’s Board of Directors. The shareholder value. The Network has Board is responsible for oversight of adopted a Revised Manual on the business, determination of GMA’s Corporate Governance to long- term strategy and objectives, institutionalize GMA’s adherence to and management of the Network’s these principles. The Revised risks by ensuring that internal controls Manual clearly sets out the and procedures are observed. The principles of good management Board of Directors ensures a high and defines the specific standard of governance, and promotes responsibilities of the Board, the and protects the interests of the Board Committees, and Network, its stockholders and other management within the overall stakeholders. governance framework. The Board consists of nine (9) The Board of Directors, led by directors, two (2) of whom are Chairman and Chief Executive Officer independent directors. All nine (9) Felipe L. Gozon, strongly advocates members of the Board have the accountability, transparency and expertise, professional experience and integrity in all aspects of the background that allow a thorough business and commits themselves to discussion and deliberation of issues the best practices of governance in the and matters affecting GMA. pursuit of the Network’s Mission and Vision.

GMA NETWORK, INC Sustainability Report 2020 17 OUR BOARD

Felipe L Gozon Gilberto R Duavit, Jr CHAIRMAN AND CEO PRESIDENT AND COO

Jose Marcelo G Anna Teresa Judith R Duavit- Jimenez Gozon-Valdes Vazquez Laura J Westfall DIRECTOR DIRECTOR DIRECTOR DIRECTOR

Felipe S Yalong Artemio V CFO AND Panganiban Jaime C Laya EXECUTIVE VICE INDEPENDENT INDEPENDENT PRESIDENT DIRECTOR DIRECTOR and qualified based on internal guidelines. Board committees This guarantees that: (a) there is a proper Four committees were established to mix of competent directors who will aid in complying with the principles of continuously improve shareholder’s value; good governance and address issues and (b) directors will secure a high standard requiring the Board’s attention. of best practices for the Network and its stakeholders. Executive Committee The Executive Committee (Excom) consists Compensation and Remuneration of three (3) members including the Committee Chairman and CEO, the President and COO, The members of the Compensation and and Director Joel Marcelo G. Jimenez. The Remuneration Committee are the Chairman President and COO serves as Chairman of and CEO (Chairman of the Committee), the Committee. The Excom acts on matters former Chief Justice Artemio V. Panganiban delegated to it by the Board of Directors. It (Vice Chairman), with the President and acts by a majority vote and in accordance COO, and Director Laura J. Westfall as with the authority granted by the Board. All members. The Committee recommends a actions of the Excom are reported to the formal and transparent framework of Board for ratification at the meeting remuneration and evaluation for the immediately following such action. members of the Board of Directors and key executives to enable them to run the Network successfully. The jurisdiction of the Executive Committee has been expanded to include the functions and responsibilities of the Corporate Audit and Risk Management Governance Committee, except those Committee pertaining to the nomination and election of The Audit and Risk Management Committee directors and the procedure for determining is currently composed of the following the remuneration of directors and officers members: Dr. Jaime C. Laya, (Chairman), which remain vested in the Nomination former Chief Justice Artemio V. Panganiban Committee and the Compensation and (Vice Chairman), and Directors Anna Teresa Remuneration Committee, as well as the Gozon-Valdes, Judith R. Duavit-Vazquez, power to evaluate the performance of the and Laura J. Westfall. The Audit and Risk Board of Directors as it pertains to the Management Committee assists the Board stockholders and the duly elected Board in its fiduciary responsibilities by providing directors themselves. an independent and objective assurance to GMA’s management and stakeholders in the Nomination Committee continuous improvement of risk management systems, business operations The Nomination Committee is chaired by and proper safeguarding and use of the the Chairman and CEO, and is composed of Network’s resources and assets. The three (3) other members that include former committee provides a general evaluation Chief Justice Artemio V. Panganiban (also and gives assistance in the over-all the Vice Chairman of the Committee), the improvement of the risk management, President and COO, and Director Joel control, and governance process of GMA Marcelo G. Jimenez. The mission of the Network as designed by management and Nomination Committee is to provide the provides assurance that these are properly shareholders with an independent and functioning. objective evaluation and assurance that the membership of the Board of Directors is competent, will foster the long-term success Chief Risk Officer Regie C. Bautista provides of the Network, and will secure its relevant information to the committee for competitiveness. The Nomination decision-making on economic, Committee assists the Board of Directors in environmental, and social topics. ensuring that all nominees are competent

GMA NETWORK, INC Sustainability Report 2020 19 Engaging our stakeholders

GMA Network believes that by majority of GMA's desk workforce effectively engaging our started working from home, on rotation, stakeholders, we are able to or otherwise under alternative working genuinely understand their needs arrangements. While stakeholder and interests, at different levels and management always requires thinking across multiple areas. In order to ahead, the "new normal" necessitated build long-lasting positive even increased planning efforts. Virtual relationships, we seek to constantly meeting platforms were quickly strengthen our connections, and to adopted, as well as the expanded use of consistently find mutual ground online messaging and remote work based on trust, loyalty, and earnest facilitation tools to maintain regular desire to grow and succeed together. communication and effective engagement. By maximizing the use of As COVID-19 spread across the globe technology, GMA endeavors to keep an and strict quarantine measures are empathic approach in dealing with our implemented in the Philippines, the stakeholders under the COVID-19 crisis.

A virtual event was held on December 17, 2020 to mark the official signing of a landmark deal between GMA Network and the National Collegiate Athletic Association (NCAA) covering the broadcast rights for NCAA Season 96 to 101. Stakeholders Key engagement Primary discussion mechanisms items Investors • Annual stockholders’ meeting • Operational and financial (equity and debt) • Small group meetings performance • Reports and disclosures • Risks and opportunities • Written correspondences • Conferences • Website • Press releases GMA’s • Company policies and procedures • Safety, health, and security of workforce • Employee handbook the workforce (management, employees, • Memoranda and other written • Employee engagement talents, service providers) correspondences • Performance assessment and • Monthly Kapuso Magazine career opportunities • Chairman’s State of the Network • Continuous improvement of Address (in lieu of the periodic value chain to increase general assembly) efficiency and reduce • Annual family day* negative impacts • Performance feedback • Creating value for consumers • Trainings • Teambuilding events* • Christmas and other holiday events* • Social media • Collective bargaining agreement • Birthday lunch with the CEO* Clients • Business meetings and events • Engagement economics • Contracts • Risks and opportunities • Written correspondences • Creating value for clients and audience Viewers • Broadcast and live events • Viewership • Hotline • Email • Website and social media Partners and • Business meetings and events • Continuous improvement of suppliers • Contracts value chain to increase • Written correspondences efficiency and reduce negative impacts • Creating value for stakeholders Government • Seminars and briefings • Ensuring compliance with agencies and • Meetings laws and regulations • Written correspondences regulators • Website and social media Local and • Public service operations • Setting and meeting high international • Community events standards for the community • Website and social media • Creating value for society communities

*These programs were put on hold in 2020 when most of GMA employees were under alternative working arrangements.

GMA NETWORK, INC Sustainability Report 2020 21 Reporting practice

GMA Network adheres to a high Through the IRCD and Corporate level of corporate disclosure and Affairs and Communications transparency standard regarding Department, we publish press releases the Network’s financial condition on the performance of the Network. and state of corporate Audited financial statements are submitted to the SEC on or before the governance. Through the prescribed period, and are made Investor Relations and available to shareholders. Compliance Division (IRCD), shareholders are provided We process information in accordance disclosures, announcements and with the Data Privacy Act of 2012 and periodic reports filed with the its implementing rules and regulations, Securities and Exchange and adopt reasonable physical and Commission (SEC) and the technical security measures to Philippine Stock Exchange (PSE). safeguard the same. Moreover, the These are also available online Network executes and adheres to non- through the Investor Relations disclosure/confidentiality agreements, portion of the Network’s website respecting trade secrets and www.gmanetwork.com/corporate confidential information of parties and /ir. business partners we transact with.

GMA’s sustainability reporting is guided by the framework illustrated here in order to make the process relevant and value adding:

We conduct our businesses in an ETHICAL Corporate Governance and RESPONSIBLE MANNER

Our company is a Economic We manage our KEY SUSTAINABLE Environmental IMPACTS BUSINESS Social

Our products and services Contribution to create VALUE TO Sustainable Development SOCIETY

22 GMA NETWORK, INC Sustainability Report 2020 In 2020, after meaningful dialogues with our key stakeholders, we determined that the material topics that GMA should report on are the following:

Social • Employment • Occupational health and safety • Training and education • Diversity and equal opportunity • Local communities

Environmental • Energy consumption within the organization • Water consumption • Waste by type and disposal method • Environmental compliance

Economic • Direct economic value generated and distributed • Financial implications and other risks and opportunities due to climate change • Procurement practices • Operations assessed for risks related to corruption

GMA NETWORK, INC Sustainability Report 2020 23

Impact on society

Our commitment to a operations, we employ the same sustainable future begins with dedication in making sure that building a successful, our people achieve their best productive, and responsible potential in GMA—through workforce. Because our people training, meaningful working are our best asset, we strive to experience, coaching, mentoring, create a working environment a culture that allows continuous that promotes our vision for learning to thrive, equal the Network to be the opportunities for career employer of choice in the advancement, and conducting industry. We provide constructive performance opportunities to the most evaluation periodically to monitor capable and highly qualified, growth. who can deliver high-quality performance. Equally With sincere care for our important is that we embrace employees, we prioritize the those with integrity and values health and safety in the aligned with the Network’s and workplace. Beyond the who possess the right attitude requirements mandated by the and appreciation towards hard government, our enterprise risk work. management policies and standard practices allow Joining the Kapuso family entails stakeholders to identify, assess, access to competitive benefits and effectively manage and that aim to attract and retain the mitigate significant risks that may best people. Just as we focus on compromise the well-being of our quality and excellence in our people.

GMA NETWORK, INC Sustainability Report 2020 25 Employment

We have teams throughout the we establish strategic partnerships with Philippines, but the majority is organizations that allow us to augment stationed at our headquarters in Metro our reach, and tap a wider and more Manila. To meet our operational and diverse pool of candidates. business expansion needs, we are in continuous search for resources and In accordance with the law, GMA talents. When vacancies open, we first Network recognizes the right of identify qualified and deserving employees to voluntarily resign. employees within the Network, and Likewise, we may also choose to let go recommend their transfer or of an employee for just or authorized promotion. In meeting requirements cause, and upon observance of due that cannot be addressed internally, process.

New hires Turnover

By age group By age group 30-50 years 30-50 Under 33% years 30 years 41% 46% Under Over 50 30 years Over 50 years 62% years 5% 13%

By gender By gender

Female Male Male Female 47% 53% 52% 48%

26 GMA NETWORK, INC Sustainability Report 2020 Our Human Resources Development Department (HRDD) oversees the provision of the following benefits to our employees:

Basic Additional

• Vacation leave • Fire and calamity leave • Sick leave • Fire and calamity assistance • Maternity leave • Calamity pay • Paternity leave • Hazard pay • Solo parent leave • Bereavement leave • Accident leave • Bereavement aid • 13th month pay • Health maintenance organization (HMO) • SSS, PhilHealth, and • Medicine allowance Home Development • Optical subsidy Mutual Fund (HDMF) • Rice subsidy • Life insurance • Retirement pay (Compulsory, Optional, Permanent/total disability) • Longevity premium pay • Matrimonial bonus • Car plan Benefits related to COVID-19

• Advance use of leaves • Cash advance • Meal provision for those physically reporting to work during ECQ and MECQ • Transportation service for those physically reporting for work during ECQ and MECQ • 14 days quarantine charged to company time if exposure is due to work • Paid RT-PCR test if exposure is due to work • Hazard pay • Internet subsidy • Laptop plan • Provided PPEs to workers (i.e., disinfectants, face masks, face shields) • Installation of satellite clinic

Female Male

GMA provides Total number of employees that took 63 73 parental leaves parental leave (maternity, paternity, and solo parent Total number of employees that 63 72 leaves) beyond what returned to work in the reporting period government after parental leave ended mandates to support Total number of employees that 61 71 our employees in returned to work after parental leave looking after their ended that were still employed 12 children. months after their return to work

Return to work rates of employees that 100% 99% took parental leave

Retention rates of employees that took 97% 97% parental leave

28 GMA NETWORK, INC Sustainability Report 2020

Safety first for our people

Our Occupational Safety and • Proper handling and preventive Health (OSH) Program complies maintenance of fiber optic camera with Republic Act No. 11058 An Act cables Strengthening Compliance with • Guidelines on camera crane operation Occupational Safety and Health • Guidelines and policies on cable Standards and Providing Penalties management for Violations Thereof, and • Implementing guidelines on electrical addresses significant employee and architectural installation for safety and security risks identified reconfiguration of new and additional as a result of our enterprise-wide production sets risk management. The program • Guidelines on repairs/restoration of covers employees and workers broadcast equipment performing work inside the GMA • Policy procedure for vehicle use Complex Building Network, the • Standard operating procedures on GMA Annex, GMA stations, news van deployment and safety driving warehouse and transmitter sites. It also safeguards those working • NVOD technical services monitoring guidelines outside GMA premises during Pre-deployment procedures tapings, and news/fieldwork • coverage. • Instructions for keeping vehicles neat and orderly We have formalized procedures and • Guidelines and procedures for the guidelines to ensure the health and maintenance, monitoring and fuel safety of our employees and workers: acquisition of company vehicles • Vehicle and road safety reminders • GMA Network studios facilities • Safety and security measures guidelines implemented in Entertainment Group • Implementing guidelines on studio (EG) programs facilities • Implementation of guidelines on Trainings are conducted to orient our studio security and safety people on these guidelines and • Guidelines on proper handling and procedures. In addition, we provide safekeeping of EFPD Cameras and its lectures and demonstrations for basic accessories first aid and basic life support (including cardiopulmonary resuscitation (CPR)). Guidelines on the proper handling • Risk and hazard assessment briefings are and safekeeping of camera fiber optic strictly carried out during tapings. cable

30 GMA NETWORK, INC Sustainability Report 2020 Promotion of employee health

GMA Network employees have healthcare and medical benefits that cover both occupational and non-occupational injuries or illnesses through in-patient and out-patient care. Below are some of the voluntary health promotion services and programs, which were continuously offered by the Network amidst the pandemic.

Medical and First-aid, health Health and health care medicines wellness assessments and and equipment promotion programs facilities programs

• Annual physical/medical • Medical clinic (equipped • Mental health-related examination (APE)* with wheelchair, oxygen programs (critical • Executive check-up tank and accessories, incident stress (once a year) nebulizer, stretcher, debriefing and mental • Annual flu vaccination examining bed) health awareness • Wellness fora (hostile • Dental clinic (equipped seminar) environment training, with dental chair and all • Sports tournaments wellness and health dental related (basketball, volleyball, symposiums) accessories) bowling, badminton, • Critical incident stress • Lactation room (with table tennis, chess and debriefing refrigerator) billiards) • Mandatory quarantine • Emergency Go bags in • Health and wellness fair to employees deployed every floor (first aid kit, (quarterly) to areas affected by flashlight, whistle and • Family day outing contagious diseases canned goods) • Fitness programs • Sleeping quarters, (Zumba, yoga and *For the APE, we did not conduct an on-site activity due to health separate for males and partnership with a gym safety. However, there were some females provider) employees who voluntarily had their APE and ECU (Executive • With HMO-accredited Check-Up) at Medicard-accredited hospitals and clinics clinics and hospitals.

In order to mitigate significant negative consistently implements our safety and occupational health and safety impacts health programs. Moreover, risk directly linked to the Network’s assessment is periodically conducted in operations, and the related hazards compliance with the Network’s risk and risks, GMA continuously and management policy.

GMA NETWORK, INC Sustainability Report 2020 31 Training and education

We have instituted a training and curriculum, and in some circumstances, development program that is anchored we partner with external organizations in valuing our employees as our best and professional institutions in the asset. It is the policy of GMA Network Philippines and abroad. to provide continuous learning opportunities to our people for their Adapting to the "new normal" in 2020, growth and empowerment, and with we shifted in delivering training due consideration of their current programs to new and digital ways by skills, the requirements of their current offering courses through live jobs, and the requirements of the streaming and on-demand webinars. business. We develop in-house training

Average hours of training that GMA Network’s employees have undertaken during the reporting period:

By gender By employee category

Officers 12.53 Male 12.92 Managerial 15.54

Non-managerial 9.192 Female 9.504 Rank and file 9.26

Our employees are provided regular practices and procedures to ensure performance and career development safety of employees and the proper reviews. Training opportunities are given to handling of equipment and use of employees when there is/are: technical facilities • A need to enhance existing knowledge, • Anticipated changes in technology skills and behavior to meet heightened which consequently require new standards of excellence, efficiency, knowledge, skills and behaviors in and/or creativity dictated by the market adapting the new/change of or the industry technology • Gaps in knowledge and skills of critical • A need to prepare employees for functional areas that affect individual or higher responsibilities or when they are work group effectiveness considered as "internal replacements" • A need to reinforce awareness and for key leadership roles consistent implementation of correct

32 GMA NETWORK, INC Sustainability Report 2020 The Human Resources Development Department (HRDD) or the group/department under which employees belong may initiate trainings:

• HRDD-initiated training and development programs - Programs that are applicable for employees across the organization. These programs include but are not limited to leadership/management development programs, staff development programs, attitudinal and values enrichment programs, and basic technical training programs.

Examples are: o Basic management programs o Staff development programs o Work attitudes and values enhancement program o Succession development programs o Technical training courses (broadcast-specific trainings such as video editing, camera training, audio training, cinematography, etc.) o TV production trainings (e.g., scriptwriting, news writing, etc.) o Occupational safety and health programs

• Department-initiated training programs - These are specialized functional and skills trainings identified by the group/department to address developmental requirements (functional, technical, or creative) and to support operational efficiencies in meeting group/department objectives.

Apart from the year-round learning and development programs, HRDD curated a new collection of learning courses in response to the pandemic, such as: • Resilience: Finding Strength in the Present Moment • Working in a Virtual World • Leading Virtual Teams • Coping with COVID-19 Stress

HRDD also established an in-house One Digital HR Learning Management System (ODHR LMS) powered by Talent LMS to access the training courses anytime, anywhere while employees work from home or on-duty.

Moreover, GMA Network provides transition assistance programs for soon-to-retire employees through the Pre-Retirement Program. This program has modules on Preparing Self for Retirement and Financial Literacy. Additionally, we continue to assist retired employees through the GMA Employees’ Multi- Purpose Cooperative (GEMPC). The GEMPC is a closed-type cooperative organization that is exclusive to employees of the GMA Network and its subsidiaries, including those who have retired.

A transition assistance program is also provided to resigned employees to facilitate their continued employability. On a per request basis, we issue Certificate of Employment and/or Certificate of Training. Diversity and equal opportunity

The Network provides opportunities diversity and equal opportunity in to interested, qualified, and our workforce, we are supporting a deserving applicants regardless of progressive culture that is optimal gender, and without prejudice to and conducive to achieving the best those belonging to the vulnerable results in our operations. Our sector (e.g., the elderly, persons who inclusiveness is key in advancing our are differently abled, solo parents, goal to attract and retain the best etc). We believe that by embracing people. By gender By age group Percentage of individuals 30 to 50 years within GMA 15% Male Female Network’s top 50% 50% Over 50 executives years 85%

Percentage of individuals per employee category

Rank and file By gender By age group Under Female Over 50 30 years 13% years 13% 9% Male 87% 30 to 50 years 78%

Non- By gender By age group Over 50 managerial Female years 54% 5% Under 30 30 to 50 years Male years 27% 46% 68%

Managerial By gender By age group Over 50 Under 30 years years 16% 3% Male Female 48% 52% 30 to 50 years 81%

Officer By gender By age group

Female 30 to Male 47% 50 53% Over 50 years years 45% 55%

GMA NETWORK, INC Sustainability Report 2020 35 Local communities

With our battle cry “Local News Matters,” GMA Regional TV (RTV) leads relentless programming efforts that are more attuned to stories, voices, and viewership in key cities and provinces across the Philippines.

Flagship Weekday Newscasts on regional channels • Balitang Amianan for North Central Luzon, • Balitang Bisdak for Central and Eastern Visayas, • One Western Visayas for Western Visayas • for Northern, Central, South Central, Western, and Southern Mindanao

Flagship Saturday Newscast on national TV • Regional TV Weekend News Flagship Weekday Morning Programs on regional channels • GMA Regional TV Live! for Central and Eastern Visayas • At Home with GMA Regional TV for Northern, Central, South Central, Western, and Southern Mindanao • GMA Regional TV Early Edition for Western Visayas • Mornings with GMA Regional TV for North Central Luzon

RTV local programs and specials tackle relevant localized news in various communities across the Philippines, and serve as the watchdog of local government units (LGUs) and government agencies in the implementation of laws and regulations directly impacting the communities' day-to-day living, bridging the gap, and finding solutions to local issues and problems.

36 GMA NETWORK, INC Sustainability Report 2020 Public service segment in local Other feature segments news programs In addition to public service segments, RTV’s RTV’s local news programs have public service local programs also feature other stories that segments customized for each region: focus the spotlight on, and give exposure to, • Balitang Barangay and I-Amianan the rich culture and various interesting Mo! in Balitang Amianan discoveries and treasures of the Philippine • Balita Barangay in One Western Visayas regions: • Barangay Bisdak in Balitang Bisdak • GMA Regional TV Presents - A • Balitang Barangay in One Mindanao platform for Filipinos in the regions including minority and tribal groups The segments feature a wide array of relevant through mini-documentaries on issues within the community, such as: personalities and issues • Displaced tribes and minority • Kwento ng Pilipino - Stories of groups including but not limited to land triumph about ordinary Filipinos told from dispute issues their own perspective and stories • Insensitivities to, discrimination, and lack of highlighting the uniqueness and diversity awareness on their cultural beliefs and of Filipino minority and tribal groups traditions • #SpreadKindness - Acts of kindness • Compelling, long-standing done by and for ordinary Filipinos complaints culled from phone calls and • Trip Natin / Suroy Ta! / Manlaag Ta e-mails of concerned citizens asking / Lagaw Ta - Travel features on local intervention to get immediate action from scenic spots whether these are established LGUs and government offices for issues, tourist destinations or newly discovered such as garbage problems in the ones, including those from the off-beat community, leak in water pipes, potholes tracks within the local programs’ area of on community roads, and unfinished responsibility government-funded projects • My Mindanao / Bisdak Laagan • Highlighting the best practices of a Society / My Western Visayas - barangay that is worth emulating by other Crowd-sourced videos showing the travel barangays. adventures of regional contributors • Mangan Tila / Kumbira / Lami Syah / Namiit! - Features on unique and Launch of flagship weekday popular dishes and delicacies morning programs on regional • Pista sa Amianan / Fiesta Mindanao channels / Pistang Bisdak / Fies-Ta! - Features on local festivals and fiestas of towns, Even under the COVID-19 pandemic, municipalities, and even unique barangay recognizing the need of our regional viewers celebrations for more local programming, especially that • May Trabaho Ka, Kapuso! / May most of them are confined in their homes Trabaho Ka / Extra - Job listings from because of the lockdown and quarantine DOLE Public Employment Service Offices measures imposed by the LGUs to contain the (Provincial PESO); giving emphasis that spread and contraction of COVID-19, RTV job opportunities are available in the managed to launch 4 flagship weekday regions morning shows in 2020 namely: • Kapuso sa Kalikasan (all areas) - GMA Regional TV Live! for Central and • Regional stories and issues on the Eastern Visayas environment and its protection, as well as At Home with GMA Regional TV for • initiatives of local communities for Northern, Central, South Central, Western, sustainable development. and Southern Mindanao • GMA Regional TV Early Edition for Western Visayas • Mornings with GMA Regional TV for North Central Luzon

GMA NETWORK, INC Sustainability Report 2020 37

Managing our footprint

Our operations all over the process, among our priorities is Philippines contribute to our compliance with applicable laws carbon footprint, which we and regulations, such as the continuously aim to reduce Presidential Decree No. 1586 efficiently and effectively. In Establishing An Environmental addition to the GMA Network Impact Statement System, Including Center (our headquarters located Other Environmental Management in ), we have regional Related Measures And For Other offices, and TV/radio studios in 15 Purposes. We secure Environmental other cities and provinces—Ilocos, Compliance Certificates (ECC) from Tuguegarao, Baguio, , the Department of Environment , Legazpi, Naga, Palawan, and Natural Resources (DENR), as , , , Kalibo, mandated by the government. Davao, , and . Through our Kapuso ng Kalikasan (KNK) program, we For wider broadcast coverage, we partner with various environmental operate TV/radio transmitters organizations with advocacies that throughout the archipelago, usually are aligned with our commitment in remote areas with vegetation. to protect Mother Earth. Within Optimal locations are strategically GMA premises, we adopt green identified, and deployments are practices that promote carefully planned to ensure that we environmental conservation in maximize the coverage of every every way we can. single transmitter site. In the

GMA NETWORK, INC Sustainability Report 2020 39 Energy consumption

As part of advancing our sustainability these initiatives include designating goals, the energy we consume within operating hours for the use of lighting the GMA complex and in the regions is and air-conditioning units in the periodically monitored. We are studios, the replacement of chillers constantly in the lookout for new from centrifugal type to screw type, technology to increase the efficiency of phase-out of conventional fluorescent our energy utilization or to reduce our lighting to light-emitting diodes (LEDs), energy requirements. deployment of Variable Frequency Drives for the Air-Handling Units, and Over the years, we have successfully phase-out of conventional air- implemented energy-saving measures conditioning units to inverter-type. In and projects that resulted in an Dagupan, we have started using solar- estimated electricity savings of up to powered perimeter lights. 300,000 KWH per month. Some of

In 2020, our consolidated energy consumption based on our monitoring and on monthly meter readings is as follows:

2020 (in GJ)

a. Total fuel consumption within the organization 7,655 from non-renewable sources

b. Total fuel consumption within the organization 2 from renewable sources

c. Total electricity consumption 147,427

d. Total electricity sold 0

e. Total energy consumption within the 155,084 organization

40 GMA NETWORK, INC Sustainability Report 2020 Our main source of energy is electricity from power distribution companies, and electric distribution utilities or electric cooperatives situated in different cities and regions.

We consume diesel for most of our company vehicles and for the generator sets we use as back-up power supply in case of power interruptions and outages in the GMA Network Center, regional offices, and transmitter sites. Generator sets are also the main power source to operate our remote facilities during electronic and news gathering, satellite news gathering, and outside broadcast vans for live news reporting and field production taping. The installation and commissioning of new transmitters results in consumption of electricity as well.

In compliance with the Philippine Clean Air Act of 1999 (Republic Act No. 8749), a comprehensive air quality management policy and program that aims to achieve and maintain healthy air for all Filipinos, we secure the necessary permits from the DENR to operate our generator sets. Quarterly, we submit self-monitoring reports on the fuel we consume. All generator sets undergo strict preventive maintenance and annual emission tests conducted by a third party accredited by the DENR. PHOTO BY JOHN EUMER YANGA Conserving water

To reduce our water supply In 2020, our consolidated water requirements, the sewage consumption based on our treatment plant (STP) at the monitoring is as follows: GMA complex was used to treat domestic wastewater. The treated wastewater from the plant is recycled for sanitation 2020 purposes within the (in megaliter) headquarters. Through this system, we save at least 2,250.20 a. Total water 121.54 cubic meters or 2,250,200 liters consumption of potable water every year, and from all areas we continue to explore ways to expand the use and benefits of b. Total water 0 the facility. consumption from all areas Our supply comes from water with water service providers in locations stress where we operate, except in Cebu where we have our own water pump that meets the needs of the entire station.

GMA NETWORK, INC Sustainability Report 2020 43 Responsible disposal of wastes

For the health safety of our people and 9275), which aims to protect the to mitigate any harmful impact on the country's water bodies from pollution environment, we are committed to from land-based sources, we have a ensure that wastes gathered and discharge permit from the Lake collected in our stations are properly Development Authority (LLDA) for the handled and disposed. We have operation of our STP. We periodically instituted strict housekeeping rules and check the wastewater discharge of the sanitary practices in our offices and system and conduct laboratory testing transmitter sites, and encourage as a requirement for self-monitoring recycling by segregating wastes. and compliance monitoring.

One of our approach is the With the issuance of DENR’s DAO appointment of Pollution Control 2016-08 Water Quality Guidelines Officers (PCO) in our main and General Effluent Standards headquarters and transmitter sites, as of 2016, we submitted a Compliance required by the DENR. According to Action Plan to the LLDA office for the the guidelines under DENR’s improvement of our STP. The DAO Department Administrative 2016-08 provides guidelines for the Order (DAO) 2014-02, the PCO is a classification of water bodies in the technical person competent in pollution country, determination of time trends control and environmental and the evaluation of stages of management, performs the duties and deterioration/enhancement in water responsibilities in a particular quality, evaluation of the need for establishment, and is officially taking actions in preventing, accredited by the Environmental controlling, or abating water pollution. Management Bureau (EMB) Regional To strictly comply with the standards Office to perform such responsibilities. set by this DAO, we have also contracted the services of a third party To comply with the Philippine Clean laboratory to test in-house waste water Water Act (Republic Act No. parameters.

44 GMA NETWORK, INC Sustainability Report 2020 In 2020, the total waste we generated based on our monitoring is as follows:

2020 (in kg)

a. Total weight of hazardous waste 9,574

b. Total weight of non-hazardous waste, with a breakdown by the following disposal methods:

i. Reuse 77

ii. Recycling 10,797

iii. Composting 241

iv. Landfill 274

The Toxic Substance and The Ecological Solid Waste Hazardous Wastes (Republic Act Management Act (Republic Act No. 6969) under the DENR covers No. 9003) provides for a the import, manufacture, processing, comprehensive ecological solid waste handling, storage, transportation, sale, management program by creating the distribution, use, and disposal of necessary institutional mechanisms and unregulated chemical substances and incentives, appropriating funds, mixtures in the Philippines. As required declaring certain acts prohibited, and by this law, the hazardous wastes that providing penalties. GMA applied for we generate—such as tapes, used an Environmental Permit to Operate engine oils, busted fluorescent lamp (Environmental Clearance) to the (BFL), empty paint cans, contaminated Quezon City Environmental Protection rags, grease, defective LED, and and Waste Management Department others—are treated, recycled, and pursuant to City Ordinance No. 1729 appropriately disposed through a third Series of 2006. party hazardous waste treatment group accredited by the DENR.

GMA NETWORK, INC Sustainability Report 2020 45

Economic impact

To broaden our business and regard for our stakeholders and for sustain our growth, we keep striving to achieve healthy returns for abreast with developments in the our investors. market and leverage on existing content to maximize economic This is manifested in our commitment benefits. Capital investments are to distribute at least 50% of prior year’s undertaken with the aim of net income after tax to shareholders, expanding our reach and coverage as indicated in our initial public offering at the best possible cost to our (IPO) prospectus in 2007. We have stakeholders. We regularly monitor since stayed true to this promise, project performance to ensure that annually delivering dividend payout we realize net positive results above 90% of net income after tax on without compromising value to our average. Moreover, over the course of customers and viewers. Specific to 12 years, the average dividend yield content production, we have based on IPO price is 5% per annum. established business planning processes that enable stakeholders As a core competence, the Network to estimate possible financial has proven its mettle in prudent cost outcomes of each venture, thereby and funds management keeping optimizing resource allocation. external borrowings at the minimum, or otherwise sustaining operations One of GMA Network’s key strengths is through wholly internally-generated our sound financial management and cash flows. A solid balance sheet and discipline, maintaining above-industry robust bottom line year-on-year profitability margins and financial remain one of our fundamental growth. As a publicly listed company, financial commitments. we pride ourselves as having utmost

GMA NETWORK, INC Sustainability Report 2020 47 Because our workforce is key in the government. Guided by our sustaining and advancing the principles and values, we engage with Network’s viability, we are likewise only reputable and dependable committed in providing competitive organizations for our customers as well compensation and benefits beyond the as suppliers, thus, promoting value statutory requirements. This enables enhancement and synergies. our people to attain socio-economic advancement, and offers tangible proof Among our primary endeavors is of the value we place on our best asset. paying forward to the community through various As a partner in nation-building, we corporate social responsibility have contributed our fair share in the programs and investments, which coffers of the government by include, among others, helping responsibly accounting for taxes and promote advocacies of the government other fees paid, both on local and for the general welfare and information national levels, including agencies of of the Filipino people.

Direct economic value generated and distributed 2020 (in PhP)

Direct economic value generated 19,425,342,900 (revenue)

Direct economic value distributed:

a. Operating costs 5,624,854,723

b. Employees’ wages and benefits 4,525,101,340

c. Dividends given to stockholders and interest payments to loan 5,312,633,859 providers

d. Taxes given to government 2,910,755,482

e. Investments to community (e.g. 101,528,431 donations, CSR)

Economic value retained 950,469,065

48 GMA NETWORK, INC Sustainability Report 2020 GMA’s direct economic value Meanwhile, economic value generated (EVG) for the full year 2020 distributed (EVD) in 2020 amounted to reached P19.4 billion, up P2.8 billion or P18.5 billion. While the Network 17% from a year ago. Despite the continuously operated during the onset of the pandemic towards the year, focus was directed on News and end of the 1st quarter and imposition Public Affairs programs versus the of the general community quarantines production of soaps. This move was to across the country and in most parts address the pressing need of the of the world, the Network remained public for heightened information resilient in the delivery of its services to dissemination. the public. GMA Network continued to uphold its commitment as the primary To comply with the guidelines of the source of relevant and unbiased news government regarding the observance and information amongst Filipinos of mass gatherings and social here and abroad, which was most distancing, tapings of in-house crucial in the midst of the COVID-19 productions were limited. Production predicament. While operations of cost of entertainment programs, which various sectors of the economy were accounted for a significant portion of put to a halt, GMA’s presence proved economic value distributed, thus more than necessary during these recorded a significant cutback during times. The Network was quick to the year. adapt and with some reformatting done to focus on News and Public information, Employees’ wages and benefits GMA was able to sustain its top measured at P4.5 billion, while taxes line. paid to the government summed up to P2.9 billion. From the EVG this year, EVD attributable to providers of In 2020, despite the pandemic, GMA capital amounted to P5.3 billion mainly launched its very own DTT products, in relation to cash dividends to GMA Affordabox and GMA Now. At shareholders. Investments in the the same time, additional channels community via donations, CSR, public were offered to its audience via the service programs and other free-to-air DTT platform. These sponsorships amounted to P101.5 undertakings proved to be successful million, primarily aimed in supporting and generated incremental economic valuable awareness campaigns and value to the Network as well as call to action that leave an indelible afforded the general public with mark to the citizenry. Economic Value added means of keeping abreast Retained after twelve-months in 2020 in the affairs of the nation. stood at P950.47 million.

GMA NETWORK, INC Sustainability Report 2020 49 Impact of climate change

GMA Network is not immune to the worsening climate change. All over the world, regulatory agencies are increasingly resorting to stricter regulations in an attempt to curb the effect of global warming. Abnormal natural phenomena and incidences of natural calamities pose risk of disrupting Network operations and production schedules.

Ultimately, the worst impact of these risks relates to the safety and security of our people. But deviations from scheduled operations also create pressure on the profitability of programs and shows.

As mandated by the Network’s enterprise-wide risk management policy, every aspect of GMA’s end-to-end operations undergoes periodic risk assessment so that appropriate mitigation plans may be put in place. With guidance from management and after a careful cost-benefit analysis, teams decide on the most optimal measures to address the risks under their responsibility and accountability. The cost of such measures vary depending on the significance of the risk, likelihood of the risk happening, and the estimated impact of the risk occurring. Procurement practices

Eighty-one percent (81%) of GMA Network’s transition to digital GMA Network’s accredited terrestrial TV (DTT) broadcasting, were suppliers are Philippine-based in accordance with Presidential Decree (local), with headquarters located 1362 allowing radio broadcasting and across the archipelago—from the television stations to import radio or Cordillera Administrative Region to television equipment, spare parts and . Purchases from our allied technical and program materials local suppliers are mostly for to be used exclusively in their production tapings, supplies broadcast operations subject to certain requirements, repairs and conditions. maintenance, professional services, turnkey projects, and construction As a standard practice, we prioritize projects. and support our local suppliers. Some of the benefits from patronizing local In 2020, excluding procurement suppliers include shorter procurement relating to consumer products, the lead time, lower logistics cost, readily majority of our budget (63%) was available customer support, and spent on foreign suppliers. These stronger relationship with the local foreign purchases, driven primarily by business community.

Anti-corruption

As part of GMA Network’s enterprise- Due to effective policies and wide risk management, stakeholders mitigating controls, and periodically re-assess the organization’s consistent integration of our risk profile to identify vulnerabilities corporate values in our day-to- across all areas of our operations for day activities, no significant risks potential issues such as corruption. We identified by stakeholders relate to have formalized business principles that corruption. prohibit employees to gain in any way (e.g., through gifts, favors, solicitations, monetary benefits) from third parties, including suppliers, clients, or competitors.

GMA NETWORK, INC Sustainability Report 2020 51 GMA Network supports the United Nations Sustainable Development Goals

52 GMA NETWORK, INC Sustainability Report 2020 1 NO POVERTY 10 REDUCED INEQUALITIES

SUSTAINABLE CITIES & ZERO HUNGER 2 11 COMMUNITIES 3 GOOD HEALTH & WELL-BEING RESPONSIBLE CONSUMP- 12 TION & PRODUCTION 4 QUALITY EDUCATION 13 CLIMATE ACTION GENDER EQUALITY 5 14 LIFE BELOW WATER CLEAN WATER & SANITATION 6 15 LIFE ON LAND AFFORDABLE & CLEAN 7 ENERGY PEACE AND JUSTICE STRONG 16 INSTITUTIONS DECENT WORK & ECONOMIC 8 GROWTH PARTNERSHIPS FOR THE 17 GOALS INDUSTRY, INNOVATION & 9 INFRASTRUCTURE

In 2015, 193 United Nations member GMA Network is among those states gathered and agreed to dedicated to promoting the promote 17 shared goals—known as achievement of the SDGs. As UN Sustainable Development tangible evidence of our pledge, we Goals (SDGs)—aimed at ending are the first media and poverty, protecting the planet, and entertainment company in the ensuring prosperity for all. The Philippines to sign with the responsibility for the achievement of UN Global Compact, a voluntary these goals lies with the initiative based on commitments to governments, corporations, implement universal sustainability municipalities, educational principles and to take steps to institutions, and individual citizens of support UN goals. these member states. But because of its extensive impact and effective ways, the business sector takes on a significant portion of this responsibility to advancing the goals.

GMA NETWORK, INC Sustainability Report 2020 53 54 GMA NETWORK,GMA INC

1 NO POVERTY News and Public Affairs programs 10 REDUCED INEQUALITIES Sustainability Report 2020 Sustainability SUSTAINABLE CITIES & 11 COMMUNITIES

PEACE AND JUSTICE 16 STRONG INSTITUTIONS to the public significant reports Providing in - topics depth WEBSITE on Discussing relevant social issues and current

affairs Documentary TV programs TV Documentary

GMA NETWORK, INC Sustainability Report 2020 55 56 GMA NETWORK,GMA INC

1 NO POVERTY

Various DZBB programs & DECENT WORK & 8 ECONOMIC GROWTH Sustainability Report 2020 Sustainability blocktimers 10 REDUCED INEQUALITIES

PEACE AND JUSTICE 16 STRONG INSTITUTIONS & commentary Radio’s news national and importance local public content of programs TV news GMA Regional within local segments Feature celebrations even barangay unique municipalities,towns, and andfestivals fiestas Features on local and Pistang Mindanao, Amianan Pista • • Barangay Balitang minority minority groups of traditions tribesand cultural beliefs and of lack awareness and discrimination to, Insensitivities dispute issuesland to limited not including but minority groups tribes and Displaced Fies sa Bisdak - , Fiesta , Ta! of of , on on contributors of adventuresregional videosshowing Features crowd WesternVisayas Society, and My Bisdak Mindanao,My personalitiesissues and documentarieson groups andminority tribal regionsthe including Aplatform for Filipinosin Presents TV GMA Regional through mini through Laagan - the the travel sourced - GMA NETWORK,GMA INC responsibility area of programs’ within localthe news off from the discoveredones even those or newly destinations theseare establishedtourist spots scenic features Travelon local and Lagaw Ta Ta!, Trip tribal minority groups and diversity and Filipino of the highlighting uniqueness perspective own stories and Filipinos triumph aboutordinary of Features stories Pilipino Kwento Manlaag Natin told from from told their - beat beat tracks ng

whether whether REDUCED INEQUALITIES Sustainability Report 2020 Sustainability , 10 Suroy

Ta, SUSTAINABLE CITIES & 11 COMMUNITIES

PEACE AND JUSTICE 16 STRONG INSTITUTIONS 57 58 GMA NETWORK,GMA INC Philippines flora and fauna thein terrain, fascinating and different oftypes natural formations, world the over allfrom wildlifeexceptional and extraordinary the show presents Sunday, Airing every Dingdong program hosted by GMA’s infotainment Earth Amazing 13 CLIMATE ACTION , as ,well as

Dantes 14 LIFE BELOW WATER Sustainability Report 2020 Sustainability

. 15 LIFE ON LAND itsprotection, as wellas initiatives focused focused on the environment and Kapuso At least 120 provinces and provincesand At least120 RTV’s local programs. These cities Donato Recio veterinarians Doc GMA’s by resident show wildlife environmental and groundbreaking GMA Network’s Wild Born to be regional storiesand issues sustainable development. of local communities for offor communitieslocal sa Kalikasan and and Doc Nielsen Kalikasan were featured on the Kapuso segment of hosted hosted Ferds segment sa international destinations tips and ideas, list bucket travelhacks, week, and covers every budget takes viewers on a A popular show travel that Biyahe for and for local - friendly adventure ni Drew tipid Other contributions to individual SDGs

• Around 5,500 provided • 26,675 sacks of rice given to with employment GMA employees opportunities and source • 7,410 families benefitted from of income GMA Regional TV’s Kapuso Barangayan on Wheels • Under the Kapuso (KBoW). KBoW provided families Tulay Para Sa from different barangays with Kaunlaran Project of HUNGER food packs, rice, and groceries, as well as locally-produced

Kapuso Foundation, a vegetables. ZERO ZERO NO POVERTY NO concrete and steel

hanging bridge was • Provided with immediate disaster 2 1 constructed in Pansur, relief goods and assistance during Salvador, Lanao del Norte natural and man-made calamities to connect the typhoon nationwide (e.g., Taal Volcano eruption, typhoons Rolly and devasted community to Ulysses) through Operation trade and learning Bayanihan of Kapuso centers. Foundation

GMA NETWORK, INC Sustainability Report 2020 59 60 GMA NETWORK,GMA INC individual SDGs contributions to Other GOOD HEALTH & WELL- 3 BEING • • • • Philippine Philippine Red Cross, the partnership with the Kapuso bloodletting project of Buhay Sagip welfare of survivors. ensure the health and disaster project served also community worker. The professionals and volunteer health partnership with Foundation project of Kalusugan health services under the areas to provide basic conducted in remote Roving medical missions Kapuso Bayan project of services through other basic medical laboratory exams and surgical supplies, through free medicines, to impoverished Filipinos Medical assistance given employees: programs given to Health o o o o Examination (APE) Examination Physical Annual Sunday to Monday employees 24/7, need health of serves/ the to caters Clinic facilitythat clinic satelliteInstallation of shields)face masks, face disinfectants, workers (i.e., to Provided PPEs Sustainability Report 2020 Sustainability Dugtong - - Foundation in was a stricken areas to care Foundation Kapuso Karavan , , in Bisig • • • • received sanitation kits, while communities to support the face shield andgloves) bunny suits, face masks, Protective Gear(i.e. received Personal and healthcare facilities government hospitals communities. Various facilities and assistance to healthcare prepare and distribute together to coordinate, Foundation worked KKMK and SM individuals nationwide benefitted 8,243 local government units, coordination with the protocols and compliance to health Foundation, with strict partnership with SM Mahal Ko (KKMK)’s sa through 23 medical missions Academy Philippine Military Philippine Army and the dishes dishes and delicacies unique and popular Syah Tila 367 features of Progra Kapwa under KKMK’s Lymphocytic Leukemia 40 children with Acute psychosocial support for Continued to provide boosting medicines and immune system RTPCR/Antigen test kits Kapwa / Kumbira / Namiit m ( Gamot Batang in Kapwa Batang ! frontliners Mangan / on Lami para para (continued) K) K) Ko Ko • • • • • • activities activities for mothers and highlights trends and magazine program that Pa More 150 episodes of TV's local programs segment of Regional the nationwide featured in 769 ordinary Filipinos vegetables. locally produced and groceries, as well as with food packs, rice, from different barangays KBoW on Wheels ( Kapuso from GMA Regional TV's 7,410 families benefitted Filipino cuisines. dish and the latest behind featured local showcased the history Filipino food, and and learn more about viewers to understand episodes aimed for 17 and wellness discussions both dedicated to health Pinoy MD 24 episodes TV of everyone. and fun activities for topics about family, food relatable and dynamic show that tackles Ba 2 episodes of their kids. shared by moms and bonding moments brings to light special Pinas , , weekly a morning # and SpreadKindess provided provided families MD Radio’s Radio’s Barangayan Sarap , , daily a lifestyle program are KBoW Sarap Mars Mars Pinoy Di ) . individual SDGs contributions to Other 5 GENDER EQUALITY 4 QUALITY EDUCATION • • • • • • • Sa Under the Kinabukasan Unang Kapuso ofstudents nationwide as part and Grade Kindergarten 1 to incoming distributed setscomplete of school supplies 70,000 school bags with students nationwide. facilitiesschool for public classrooms, water and sanitation education providing by sturdy which aimsto foster integral project of and construction rehabilitation Development Kapuso webinars negotiated for free 2020, ofon top HR seminars for GMA employeesin P1.4M+ spent on trainings and sponsored GMA by 2020 in grants scholarship 7 are women executives Inc’s top Network, GMA 50% workforce GMA’s women 1,100+ Kaunlaran of Foundation’s annual Hakbang School in Kapuso Kapuso project , a school Project Foundation Foundation - Sa initiated CLEAN WATER & Tulay 6 SANITATION of of mountains) sites (on top relay station GMA TV inremote were set up facilities collection Water Para Para • • • different scientificfacts and experiments and explores program that features scientific of episodes 52 and trade learning centers. devasted typhoon communityto theto connect Lanao Norte del in constructed and steel was hanging bridge Kapuso interactions and interactions travel.and restrictionsface in and resources, especially with access viewers to information various organizations to give Series held Regional TV youth towards educating children and facts primarilygearedand trivia, educational show that featured Aha! of episodes 31 fun and magical manner. presentedillusionsand trivia a in events,challenges, lifehacks, theoriessurrounding everyday GMA NETWORK,GMA INC (continued) AFFORDABLE & CLEAN in partnership with inpartnership 7 ENERGY Foundation, a concrete • • Pansur nationwide operated are installedand state solid efficient Energy Dagupan are in utilized perimeterlights Solar Masterclass Masterclass iBilib - to Sustainability Report 2020 Sustainability - - , Salvador, transmitters transmitters powered face - , an , a a , - 61 62 GMA NETWORK,GMA INC DECENT WORK & individual SDGs contributions to Other REDUCED INEQUALITIES 10 8 ECONOMIC GROWTH • • especiallyhearingthe programs viewers,to the ofaccessibility its improvingthe 2020 programs in entertainment non 22 of out its15 or the requirementin Network implemented Law by Year 2020, GMA or the ClosedCaptioning compliant RA with 10905 exempt programs to be for 50% only of non Whilethe requirement is impaired. typhoon devasted typhoon theconnect to Lanao Norte del Pansur was constructed in hanging bridge concrete and steel Foundation, a Project Kaunlaran Sa Para Kapuso Under the source of income and opportunities employment with provided 5,500 Around - exempt exempt Sustainability Report 2020 Sustainability , Salvador, of Tulay Kapuso 68% 68% - , - • o o o o programs 2020: programs in TV’sRegional local ofsegments following featured the in stories 87 centers. and learning trade to community (One (One Mindanao) May Western Visayas) Extra (One ( May Amianan Kapuso May Balitang RESPONSIBLE CONSUMP- 12 TION & PRODUCTION Trabaho Trabaho Trabaho ! ! ( ) Bisdak Balitang nationwide operated and are installed transmitters solid efficient Energy Ka Ka Ka, ) - state - (continued)

INDUSTRY, INNOVATION & 9 INFRASTRUCTURE PARTNERSHIPS FOR THE 17 GOALS • • Foundation, Foundation, a Project Kaunlaran Tulay Under the stations broadcast TV terrestrial Rollout of centers. centers. and trade learning to community devasted typhoon connect the to Lanao Norte del Pansur was in constructed hanging bridge concrete and steel • • • • • embassies Philippine Various institutions 2 learning organizations 6 non agencies government 20+ entities 70+ private , Salvador, Para Sa Para of - in 2020 in profit Kapuso digital Kapuso GRI context index

GRI indicator Required disclosure Reference GRI 102: GENERAL DISCLOSURES 1. Organizational profile 102-1 Name of the organization p 10 102-2 Activities, brands, products, and services pp 10-14 102-3 Location of headquarters p 10 102-4 Location of operations pp 10-14 102-5 Ownership and legal form pp 10-14 102-6 Markets served pp 10-14 102-7 Scale of the organization pp 10-14 102-8 Information on employees and other workers pp 26-35 102-9 Supply chain p 51 102-10 Significant changes to the organization and its supply Not applicable chain 102-11 Precautionary principle or approach Not applicable 102-12 External initiatives pp 59-62 102-13 Membership of associations pp 62 2. Strategy 102-14 Statement from senior decision-maker p 6 102-15 Key impacts, risks, and opportunities pp 25-51 3. Ethics and integrity 102-16 Values, principles, standards, and norms of behavior pp 17 4. Governance 102-18 Governance structure pp 17-19 5. Stakeholder engagement 102-40 List of stakeholder groups pp 20-21 102-42 Identifying and selecting stakeholders pp 20-21 102-43 Approach to stakeholder engagement pp 20-21 102-44 Key topics and concerns raised pp 20-21 6. Reporting practice 102-45 Entities included in the consolidated financial p 14 statements 102-46 Defining report content and topic Boundaries pp 22-23 102-47 List of material topics p 23 102-48 Restatements of information Not applicable 102-49 Changes in reporting Not applicable 102-50 Reporting period Jan 1, 2020 to Dec 31, 2020 102-51 Date of most recent report June 30, 2020 102-52 Reporting cycle Annual 102-53 Contact point for questions regarding the report p 4 102-54 Claims of reporting in accordance with the GRI p 4 Standards 102-55 GRI content index pp 63-66 102-56 External assurance Internal Audit

GMA NETWORK, INC Sustainability Report 2020 63 GRI context index (continued)

GRI indicator Required disclosure Reference GRI 201: ECONOMIC PERFORMANCE 103-1 Explanation of the material topic and its Boundary pp 47-49 103-2 The management approach and its components pp 47-49 103-3 Evaluation of the management approach pp 47-49 201-1 Direct economic value generated and distributed pp 48-49 201-2 Financial implications and other risks and p 50 opportunities due to climate change 201-4 Financial assistance received from government We did not receive financial assistance from the government

GRI 204: PROCUREMENT PRACTICES 103-1 Explanation of the material topic and its Boundary p 51 103-2 The management approach and its components p 51 103-3 Evaluation of the management approach p 51 204-1 Proportion of spending on local suppliers p 51

GRI 205: ANTI-CORRUPTION 103-1 Explanation of the material topic and its Boundary p 51 103-2 The management approach and its components p 51 103-3 Evaluation of the management approach p 51 205-1 Operations assessed for risks related to corruption p 51

GRI 302: ENERGY 103-1 Explanation of the material topic and its Boundary p 39 103-2 The management approach and its components p 39 103-3 Evaluation of the management approach p 39 302-1 Energy consumption within the organization pp 40-41

GRI 303: WATER AND EFFLUENTS 103-1 Explanation of the material topic and its Boundary pp 43-45 103-2 The management approach and its components pp 43-45 103-3 Evaluation of the management approach pp 43-45 303-1 Interactions with water as a shared resource pp 43-45 303-5 Water consumption p 43

GRI 306: EFFLUENTS AND WASTE 103-1 Explanation of the material topic and its Boundary pp 44-45 103-2 The management approach and its components pp 44-45 103-3 Evaluation of the management approach pp 44-45 306-2 Waste by type and disposal method p 45

64 GMA NETWORK, INC Sustainability Report 2020 GRI context index (continued)

GRI indicator Required disclosure Reference GRI 307: ENVIRONMENTAL COMPLIANCE 103-1 Explanation of the material topic and pp 44-45 its Boundary 103-2 The management approach and its pp 44-45 components 103-3 Evaluation of the management pp 44-45 approach 307-1 Non-compliance with environmental pp 44-45 laws and regulations Fines and penalties: • Depending on the nature of RA 8749 violations, penalties may be fines of up to P100,000 for every day of non-compliance and/or up to 6 years of imprisonment. • The maximum fine for violation of RA 6969 is P500,000 or imprisonment of up to 20 years. • The maximum fine for gross violation of RA 9275 is P3 million for every day of violation, or imprisonment of up to 10 years. • Depending on the nature of RA 9003 violations, the maximum penalty is P1 million or imprisonment of up to 6 years.

GRI 401: EMPLOYMENT 103-1 Explanation of the material topic and its pp 25-26 Boundary 103-2 The management approach and its components pp 25-26 103-3 Evaluation of the management approach pp 25-26 401-1 New employee hires and employee turnover p 26 401-2 Benefits provided to full-time employees that are pp 27-28 not provided to temporary or part-time employees 401-3 Parental leave p 28

GMA NETWORK, INC Sustainability Report 2020 65 GRI context index (continued)

GRI indicator Required disclosure Reference GRI 403: OCCUPATIONAL HEALTH AND SAFETY 103-1 Explanation of the material topic and its Boundary p 30 103-2 The management approach and its components p 30 103-3 Evaluation of the management approach p 30 403-1 Occupational health and safety management system p 30 403-5 Worker training on occupational health and safety p 30 403-6 Promotion of worker health p 31

GRI 404: TRAINING AND EDUCATION 103-1 Explanation of the material topic and its Boundary p 32 103-2 The management approach and its components p 32 103-3 Evaluation of the management approach p 32 404-1 Average hours of training per year per employee p 32 404-2 Programs for upgrading employee skills and pp 32-33 transition assistance programs 404-3 Percentage of employees receiving regular p 32 performance and career development reviews

GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 103-1 Explanation of the material topic and its Boundary p 34 103-2 The management approach and its components p 34 103-3 Evaluation of the management approach p 34 405-1 Diversity of governance bodies and employees pp 34-35

GRI 413: LOCAL COMMUNITIES 103-1 Explanation of the material topic and its Boundary p 36 103-2 The management approach and its components p 36 103-3 Evaluation of the management approach p 36 413-1 Operations with local community engagement, pp 36-37 impact assessments, and development programs

66 GMA NETWORK, INC Sustainability Report 2020 Photo credits

Page number

15 Photo submitted by Kennard Lacandazo 29 Photo submitted by Raymond Paolo Santos 42-43 Photo by John Eumer Yanga 46 Photo submitted by Tina Panganiban-Perez

GMA NETWORK, INC Sustainability Report 2020 67 GMA NETWORK, INC GMA Network Center EDSA corner Timog Avenue Diliman, Quezon City