CLARK WATER CORPORATION Depot 1901 Bicentennial Hill, Clark Freeport Zone Clarkfield, 2023 Philippines www.clarkwater.com

Table of Contents

1 About this Report

2 Message from the President

4 Message from the General Manager

6 Company Profile

12 Sustainability Framework

16 Driving Economic Growth

30 Empowering Employees

40 Preserving and Conserving Natural Resources

48 Mitigating Adverse Operational Impacts

56 Contributing to Social Development of Communities

63 Clark Water and the Future

64 GRI Index

68 Stakeholders’ Commentaries Clark Water 2012 Sustainability Report 1 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

About this Report

Clark Water Corporation (CWC) presents to you with pride its 2012 Sustainability Report, the first-ever publication of its kind, demonstrating the company’s commitment to social responsibility, environmental sustainability, and economic growth and development.

With the overall theme Driving Growth, this Considering the long-term reference of Report focuses on how Clark Water worked the central theme, which is Sustainable its way towards its vision of becoming Development, this report touches on the internationally recognized as a company overall performance of the company in relation providing excellent water and wastewater to meeting future goals, especially with the services, through effective partnerships with business and operational efficiency reinforced the government and businesses, aiming to by its Triple ISO Certifications (ISO 9001, strengthen the economic activity in Clark ISO 14001, & OHSAS 18001), representing for the past 12 years. It also highlights the compliance to internationally recognized Company’s sustainability framework which standards on quality, environmental, health covers other themes including: (1) Empowering and safety management systems. While the Employees; (2) Preserving and Conserving year 2012 is the established focal period, Natural Resources; (3) Mitigating Adverse significant milestones transcending the Operational Impacts; and (4) Contributing to company’s 12 years of existence will be aptly Social Development of Communities. This report included, and how efforts through those times features the economic, environmental, and have made significant impacts to its customers social implications of the company’s everyday and stakeholders. operations and fundamentally the stakeholders’ perspective on what Clark Water Corporation is The production of this Report is in accordance all about. with Manila Water’s direction to align its subsidiaries to its own sustainability programs, Following the guidelines set by the Global to include a public release of a Sustainable Reporting Initiative (GRI) G3.1, this publication Development Report. The analysis and data covers issues on economic, product presented in this document are only relevant responsibility, society, environmental, labor to Clark Water Corporation and its operations practices and decent work indicators, plus and do not directly reflect, unless otherwise other applicable indexes on profile disclosures. indicated, that of its parent company, or any With this being the first SD Publication to be of its partner subsidiaries. In addition, all data produced, Clark Water self declares a Level C incorporated herein cover the period from application of the GRI standards, but validation January to December 2012 unless otherwise of the content will come from stakeholder specified. testimonials and commentaries. The Level C initial application level has served as the For further information, you may contact: baseline for the preparation of this report, and will strengthen initiatives for a gradual increase Precius S. David of applicable indicators, for eligibility on next Head, Human Resources and Communication level reporting. Email: [email protected] Telephone: (6345) 599-5757 loc 129 Fax: (6345) 599-5742 2

MESSAGE FROM T HE PRESIDENT

The year 2012 marks a significant milestone for Clark Water Corporation (CWC). For the past decade, the company has embarked on a journey to improve the water and wastewater infrastructure in the Clark metropolis and optimizing its operational efficiencies, while staying true to its concession commitments. Clark Water 2012 Sustainability Report 3

Commendable as they are, these efforts have been realized without the collective effort MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES coincide with the realization of the need to of our CWC personnel, who consistently exhibit infuse a sustainable approach to business unyielding passion and perseverance in helping practices, mindful of the significance in having the organization achieve all of its objectives. Our social and environmental responsibility while people truly are our most important corporate contributing substantially to economic growth resource. and development. As we continuously strive to uphold our Sustainability has long been embedded in the Sustainable Development commitments, we corporate culture and business DNA of Clark also acknowledge the essential participation of Water Corporation, with the economic, social our stakeholders in championing this advocacy. and environmental aspects taken into account in We value the support provided by our partner the performance of our business. We have been Clark Development Corporation in ensuring a major player in driving the economic growth for the viability of our business and in backing up the Clark Freeport and Special Economic Zone, our efforts to implement programs within our with our full-blown investment programs and Sustainability Framework. We appreciate their service enhancement projects implemented in recognition of our initiatives to turn Clark into 2012. Our drive for improvement and dedication an investment destination of choice through our to greater accountability is showcased through provision of world-class water and wastewater our continued management of our business’ services, as well as extending this expertise in impacts not only on the local and national local communities around the area by providing economy but also on our environment and our them with safe and clean drinking water. We give immediate community. our assurance that we will carry on in building up this alliance through high-quality Sustainable To further underline the significance of Development programs, encompassing the sustainability, we have formalized in 2012 economic, environmental, and social aspects of CWC’s Sustainability Framework, pushing our operations. our organization to elevate and reinforce our already strong adherence to sustainable customs This first-ever Clark Water Corporation Sustainable and allow us to examine more closely and Development Report stresses our commitment comprehensively all aspects of our operations. to sustainable development to those whom we Said Framework is likewise a mark of commitment serve, and delivers our firm pledge to ensure to continuously ensure reliability of services to positive, beneficial impacts on our esteemed our customers, where water supply security and stakeholders for the long term. While we are efficient key account management are integral proud of our past and current accomplishments, to our business. We have set tangible targets which we share in this report, we know that aligned with the triple bottom-line objective our Sustainable Development journey proceeds according to the Global Reporting Initiative where further challenges will be encountered. framework – targets which were met because of As we face them, we will continue to live by the unrelenting dedication of our organization’s our sustainability principles, with a firmer greatest asset - our CWC employees. commitment to instill responsibilities within ourselves as we perform our duties, guided by Through our people, the company has been our Sustainability Framework. Moving forward, able to engage in social sustainability efforts we will endeavor to engage more partners benefitting the community while enhancing our in espousing the same dedication, fostering value and improving our social license to operate. stronger ties, and unifying actions to achieve one We extended assistance during emergency relief meaningful vision. We are confident that with our operations and disaster response whenever unfaltering determination to improve and proceed necessary such as the Habagat Relief Drive and with our noteworthy sustainable practices, we Water Provision activity. We collaborated with will be able to contribute significantly to national relevant stakeholders in developing meaningful development, protect our natural resources, and environmental and social programs such as Adopt- improve our communities’ quality of life. A-River with the DENR, and promoted inclusivity through the Ahon Pinoy Project together with the Clark Development Corporation, addressing the water requirements of the indigenous community of Aetas of Sitio Monecayo, a typically marginalized group. We implemented initiatives that preserve and conserve our natural VIRGILIO C. RIVERA, JR. resources, to include regular tree-planting President & CEO activities and coastal clean-up programs that educate and engage various stakeholders. Again, all these accomplishments would not 4

MESSAGE FROM T HE GENERAL MANAGER

When Clark Water Corporation (CWC) started its operations in 2000, the guiding vision was very clear: promote world-class excellence in our services. Clark Water 2012 Sustainability Report 5 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

It was indeed an uphill climb and the immediate Pursuit of Sustainable Development from need to rehabilitate the concession area’s the Department of Environment and Natural fragile and inundated water supply system Resources (DENR), Plaque of Special Recognition and wastewater facilities proved to be a for Environmental Compliance from the DENR’s huge challenge. But what seemed to be an Environmental Management Bureau, and Plaque overwhelming task at first became a test of of Recognition for Achieving 100,000 Safe-Work expertise. Without losing sight of our vision, Man-Hours Without Lost Time Incidents from our company implemented significant measures the Department of Labor and Employment for its to create reforms in infrastructure, and the 2010 operations, to name a few. enormous obligation translated into a meaningful achievement. These developments ultimately led The year 2012 has allowed us to carry on with to the transformation of the Clark Freeport and our vision to continually deliver excellence in our Special Economic Zone’s previously unstable water and wastewater services, while instilling water and wastewater facilities into a high sustainability in our business performance. With performing and sustainable system. the publication of CWC’s first-ever Sustainability Report, we communicate and highlight our Because of our experience, much can be said assurance to our valued stakeholders, that the about Clark Water Corporation’s success in terms company will strengthen its commitment to of growing the business, but to us, the better fulfilling its promise, no matter how trying the story is in how we are able to inculcate and road ahead is. With consistency in our efforts exhibit the values of environmental and social and the valuable support of our employees consciousness while performing our economic whom we have always considered as our most responsibilities. The inspiration our sustainable valuable asset, we are confident to surpass our approach creates in the communities we serve, previous accomplishments, while continuously along with the positive impacts on the lives of our carrying out excellent services. As we move on valued stakeholders, have definitely given worth to further develop and execute our sustainable to all the hard work our company had put in over business roadmap, we are strongly mindful to the many years that we have been operating. exercise responsible operations while impressing our accountabilities, most especially to each and Since the beginning, CWC has been integrating every stakeholder affected by our business. Sustainable Development practices in our business operations. In fact, to further Sustainable Development is not a destination, but underline the importance of environmental a journey that must be taken, not singlehandedly, management, we have strived to achieve an but all together. As Clark Water Corporation moves ISO 14001:2004 + cor 1:2009 certification, along forward anticipating challenging roads to rise with being certified on Quality Management (ISO before us, we work closely with you, our partners 9001:2008) and Occupational Health & Safety and the community, in attaining our shared vision Standards (OHSAS 18001:2007). This integrated of excellence and sustainability. As one team, we management system approach has helped know that we can only grow stronger through our the organization carry out more effectively its exchange of experiences and expertise, which roles and responsibilities within the economic, will in the end, lead to the achievement of greater environment, and social spheres. We have paved economic, environmental, and social milestones. the way for various sustainability programs to be conceptualized and completed, and, guided by Sustainable Development principles, have fulfilled projects on improving Customer Satisfaction, Environmental Performance, and Local Impact among others. These initiatives have not gone unnoticed. Our company has gained recognition from our government partners, such as Excellence in Environmental and Health Management from Clark Development Corporation, Plaque JESUS D. LAIGO of Appreciation for Exemplary Endeavors in General Manager 6

Company Profile

Located inside the Clark Freeport Zone in the province of Pampanga, Clark Water Corporation (CWC), a wholly- owned subsidiary of Manila Water Company Inc., is the sole provider of Water and Wastewater Services within the 4,400 hectares Clark Area.

The company operates under a 25-year concession Brief History agreement with Clark Development Corporation (CDC), the government arm tasked to handle the In the early 1900s, the water and sewerage systems development, management and operation of in Clark were operated and managed by the the Clark Special Economic Zone and the Clark Americans for their Air Force Base. Back then, Clark Freeport Zone. The company handles the sourcing, Air Base had the most urbanized military facilities treatment, and distribution of clean water, as and basic services infrastructure. However, when well as collection, treatment, and discharge of the Philippine government terminated its military wastewater for over 1,600 locators within the area bases agreement with the United States, coupled of concession, following local and international with the Mount Pinatubo eruption in 1991, Clark standards. sustained major damages. The water supply system was poor and inefficient given a very high Last 2005, Clark Water secured a triple ISO system loss at 55%; water pressure is unbalanced, Certification from TUV Rheinland covering aspects and some areas did not have sufficient water on ISO 9001:2008 for Quality Management supply. Similarly, the wastewater system was System; ISO 14001:2004 for Environmental nonoperational and the existing sewer lines were Management System; and OHSAS 18001:2007 mostly clogged. Because of these conditions, Clark for Occupational Safety and Health Management Development Corporation invited the private System underscoring sustainability as one of its sector to help. most important guiding principles. Clark Water 2012 Sustainability Report 7 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Various awards and recognitions received by the company throughout the years.

Clark Water took over in October 2000 by virtue of a 25-year concession contract between Vivendi Water Philippines and Clark Development Corporation. Under the concession agreement, the company is mandated to finance, rehabilitate, • Registered an average of 98% compliance with expand, operate, maintain and manage the existing the Philippine National Standards for Drinking and new water and wastewater facilities to service Water (PNSDW) and 95% compliance with its customer base in the Clark Freeport Zone the Department of Environment and Natural and Clark Special Economic Zone. In November Resources (DENR) wastewater effluent 29, 2011, Manila Water Company Inc. (MWCI) standards; and acquired 100 percent of Clark Water Corporation, • Improved customer satisfaction from 80% in signing a sale and purchase agreement with Veolia 2008 to 86% in 2011. Water Philippines Inc. (VWPI), Philippine Water Holdings Company Inc. (PWHI), and Veolia Eau- Aside from the company’s ISO certifications, Clark Compagnie Generale Des Eaux. Water Corporation has also received a number of recognitions from award-giving bodies in relation To address the water and wastewater problems to its sustainability efforts. Some of these are the in the area, Clark Water constructed water and following: wastewater treatment facilities, and rehabilitated the water system to enhance its efficiency. Over • Plaque of appreciation for exemplary endeavors the past 12 years, the Company has: in pursuit of sustainable development by the Department of Environment and Natural • Increased installed capacity by almost 300%, Resources (DENR); from 12 million liters per day (MLD) in 2000 to • Plaque of special recognition for environmental 35 MLD; compliance by the Environmental • More than doubled production from 12 MLD Management Bureau; in 2000 to 27 MLD; • Plaque of recognition for achieving 100,000 • Increased billed volume by nearly five times, safe work man-hours without lost time from 5 MLD in 2000 to 24 MLD; incidents by the Department of Labor and • Decreased non-revenue water (NRW) from Employment (DOLE) in 2009 and 2010; 55% to an average of 8.6%, with 20% of the • Recognition for excellence in environmental reduction in the first three years alone; and health management by Clark Development • Increased wastewater collection and Corporation (CDC); and treatment capacity from zero in 2000 to 27 • Green plaque for outstanding record of MLD in 2012; environmental compliance by CDC. 8

“Under the concession agreement, the company is mandated to finance, rehabilitate, expand, operate, maintain and manage the existing and new water and wastewater facilities to service its customer base in the Clark Freeport Zone and Clark Special Economic Zone.”

Major Change in 2011 Management Structure

Since Manila Water’s acquisition of the company As a wholly-owned MWCI subsidiary, Clark Water on November 29, 2011, Clark Water has put Corporation is placed under the direct management more emphasis on its sustainability efforts and of its President and CEO, Mr. Virgilio C. Rivera Jr., relationship-building with its stakeholders. who is also MWCI’s Group Director for Corporate The company is one with the government and Strategy and Development, the team assigned to businesses in promoting Clark as a major hub for lay-out the forward direction for Manila Water and the Asian operations of various multi-national explore opportunities for business expansion. To corporations. By putting up modern water and ensure however a focused approach towards taking wastewater infrastructure and ensuring excellent care of the Clark Water business, Mr. Jesus D. Laigo services, Clark Water plays a major role in driving was appointed as Clark Water’s General Manager the growth of the Clark Freeport and Special and Chief Operating Officer, and was tasked to Economic Zones. handle the planning, organization and management of all the activities of the company in the region. Organizational Structure He reports directly to Mr. Rivera and also heads Clark Water’s management committee, composed Board of Directors of three (3) directors (one being his concurrent function), guaranteeing compliance with the top Clark Water Corporation works under the close level mandate and aligning operations with the management of its Board of Directors, composed overall strategic direction of the parent company. of five (5) members representing the major groups of the parent company, and is headed by To uphold the principles of fairness and transparency, the Chairman of the Board, Mr. Gerardo Ablaza Manila Water appoints an internal employee to Jr., who also serves as the President and CEO of perform a specific function in its subsidiaries, Manila Water Company Inc. This Board also acts relative to the need of the company as well as the as Manila Water’s Management Committee, expertise of the assigned personnel. In November who ensures that the strategic direction of the 2012, Mr. Christopher Marin, an MWC direct- company and its subsidiaries are well planned and hire, was tasked to handle the Finance and Admin infused in the daily operations. MWCI implements Services Group of Clark Water to further strengthen an evaluation system to measure the performance the financial control and strategic alignment of of the Board of Directors, parent company and the company’s finance direction. He replaced Ms. subsidiaries included, in terms of practices on Belinda Elarmo, also an MWC-seconded Employee, good governance, results of which are discussed who was transferred to another partner subsidiary. accordingly in the Board Meeting. Mr. Marin is part of the company’s Management

Board of Directors Position Name Gender Nationality Age Chairman Gerardo C. Ablaza, Jr. Male Filipino 59 Members Virgilio C. Rivera, Jr. Male Filipino 52 Luis Juan B. Oreta Male Filipino 56 Geodino V. Carpio Male Filipino 52 Ferdinand M. Dela Cruz Male Filipino 46 Clark Water 2012 Sustainability Report 9 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Committee and reports within the Clark Water Organization to Mr. Jesus D. Laigo.

To efficiently assist in the implementation of tactical plans and operational requirements, Clark Water Corporation adopted the Expanded Leadership Team concept where managers of respective key sections are empowered to participate in the decision-making process. A regular coordination meeting is also facilitated with them together with the Clark Water’s ManCom to collectively acquire inputs on how to efficiently manage the operations in accordance with set targets and ultimately drive business growth. In these meetings, along with periodic planning sessions, the company’s management is able to assess performance in line Clark Water’s Management Committee (ManCom) members with Key Results Areas, serving as a helpful tool in (from left to right), Pedro M. San Diego (Director for Technical Sevices), Jesus D. Laigo (Director for Operations), and reviewing the business and organizational structure Christopher R. Marin (Director for Finance and Admin). and recommending changes as necessary, upon approval of the Board of Directors.

President and CEO

General Manager and Chief Operating Officer

Director for Director for Director for Technical Operations Finance and Services Admin

Table of CWC’s Internal Management Structure. 10

Employee Demographics

By the end of December 2012, Clark Water Corporation has a base of 56 organic personnel, composed of two (2) executives, nine (9) managers, nine (9) supervisors and thirty six (36) rank and files. This lean but highly efficient workforce is at the center of all the company’s sustainability programs, emphasizing their importance in the overall achievement of business objectives.

Years of Gender Service 12

50 44

40 27 30 20 12 10 17 0

Ten Years Onward Male Female Six To Ten Years Zero To Five Years

Figure 1. Employee demographics in terms of tenure. The Figure 2. Employee demographics in terms of gender. The above graph pertains to an individual employee’s length graph represents the number of male and female in the of stay in the company (measured in years). Out of the workplace. Out of the 56 employees, 44 or 79% are male 56 employees, 17 employees (30%) have been with the while only 12 or 21% are female. company for zero to five years, 12 employees (22%) stayed for six to ten years, and 27 employees (48%) have tenure of more than 10 years.

Age 19 20

18

16

14 11 12 9 10

8 5 6 4 3 4 4 2 1 0 0 0 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 65 onwards

Figure 3. Employee demographics in terms of age. As of the year 2012, there was no employee recorded under the age of 21-25 and 65 onwards. Majority of the employees were ages 41-45 with a 34% share, and 26-30 with a 20% share. Clark Water 2012 Sustainability Report 11 Job Level 2 9 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

9

36 Figure 4. Employee demographics in terms of Job Level. The company is composed majority of Rank & File employees (64%), followed by Managers and Supervisors (both with a 16% share), and the Executives, which only comprises 4% of the workforce. Executive Manager Supervisor Rank & File

Job Assignments

35 31 30 25 25

20 15 10 5 Figure 5. Employee demographics in terms of Job Assignment. 0 The overall proportion of job assignment per category is 55% for fieldwork while 45% for office work. Field Office

Employment Status

55

Figure 6. Employee demographics in terms of Employment Status. As of the year ended 2012, 55 employees or 98% were already in regular status. Only one or 2% is still on probation. 1 Regular Probationary 12

Sustainability Framework

Ever since Clark Water Corporation started its operations, it was already embedded in its culture to incorporate Sustainable Development in its business practices. Guided by this universally essential principle, the company conceptualized and fulfilled various environmental, social and economic Sustainable Development Programs which include efforts on improving Customer Satisfaction, Environmental Performance, Contractor Relations, Health and Safety, Internal Social Management, and Local Impact among others.

Integral in the success of these initiatives are • Promotion of our sustainability commitments ideals which have served as the company’s to our business partners, sub-contractors and guidance on sustainability all throughout the suppliers and encouraging them to abide by years, parallel with the provision of the company’s the same. ISO Certifications. Driven by the following targets, • Active participation in the social Clark Water aims to continue its unrelenting development of communities where our determination in upholding the principles of facilities are based. Sustainable Development: • Proactively working with all stakeholders in facilitating access to essential services. • Protection of the environment, preservation of natural resources and promotion of For 2012, this holistic approach has been biodiversity. encapsulated and clearly reflected in Clark • Establishment and implementation of an Water’s sustainability framework, where apart environmental management system showing from ensuring the viability of its business, clear objectives and action plans, and the company endeavors to contribute to the monitoring its progress. economic growth of Clark, the social development • Ensuring the reliability and compliance with of the communities within its service area, and relevant regulations of our facilities, aligned the protection of the environment. Fittingly with applicable standards. positioned at the center of its sustainability • Broadening of efforts beyond the minimum programs are its employees, who Clark Water legal requirements in terms of improving regard as its most important corporate resource. personal health and safety protection. • Continual development and innovation Through these sustainability programs, Clark to improve our ability to respond to Water demonstrates its commitment to its environmental challenges. stakeholders, as well as to the environment that is • Empowerment of our employees through integral to the delivery of the company’s services. development of skills and competencies. Clark Water 2012 Sustainability Report 13 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Clark Water employees engage with the company stakeholders during the WEAP 7th Annual Convention held in the Holiday Inn Clark Water’s booth during the Clark last July 26-27, 2012. WEAP 7th Annual Convention where the company was one of the major sponsors.

Clark Water’s Stakeholders In 2008, Clark Water Corporation conducted a comprehensive assessment on the Sustainable Clark Water Corporation acknowledges the Development practices of the company which important role that stakeholders play in the helped the organization in identifying key strengths development and implementation of its and weaknesses as perceived by the stakeholders. sustainability programs. These players have Key topics covering economic, environment, social been carefully mapped out in the company’s and local impact issues have been presented to Stakeholder Circle where pertinent areas identified proponents following an assessment affected by our business are taken into account matrix, where results have been carefully – Economic, Environmental, Social, Community analyzed, accounting practices which must be Involvement, Public and Private Organization. retained, enhanced, and further developed. Moving forward, the company will revisit its The main stakeholders have been classified into 3 identified stakeholders, and modify the circle to main categories: align with the ever-changing landscape affecting sustainability. Aligned with the practice and •  Internal stakeholders of the company: guidance of Manila Water, Clark Water will design the staff (including management and a more proactive approach in recognizing the employees); needs of its stakeholders, measuring issues which • External stakeholders directly participating are relevant to them and develop Sustainability to CWC value chain (suppliers, clients, Programs addressing the requirements as etc.); and identified. The company also aims to further •   External stakeholders not directly involved in strengthen partnerships with these stakeholders the value chain of CWC, but that can affect in promoting its objective to provide reliable water or be affected by the activities of the project and wastewater services while mindful of its social (governmental and legislative bodies, and environmental responsibilities. research institutes, NGOs, etc.). 14

The Sustainable Development Diagram summarizes the company’s actions for improvement in terms of effort and impact.

The DENR-Environmental Management Bureau Region 3 recognizes the remarkable efforts of the Clark Water Corporation (CWC) towards excellent service to the Clark Freeport Zone locators and their clientele as it moves beyond compliance with clearance and permitting requirements. The CWC as an active member of the Environmental Practitioners’ Association (EPA) participates in the DENR’s Adopt a River/Waterbody Program and the National Greening Program.

Dir. Lormelyn Claudio Worthy to note is CWC’s move years back to form a multipartite monitoring Regional Director team (MMT) to ensure a proactive, transparent and participatory approach DENR-EMB Region 3 in environmental monitoring. The MMT consists of members from the DENR- EMB Region 3, DENR-PENRO, DENR-CENRO, CDC-EMD, CDC-HSO, CWC and nongovernmental organization (NGO). The MMT conducts groundwater sampling, monitoring of the compliance with the conditions stipulated in the Environmental Compliance Certificate (ECC) issued to them, reviews CWC’s environmental monitoring and audit plans and assists in addressing issues and concerns pertaining to CWC’s operations. The MMT contributes in achieving the company’s goal to provide clean and safe potable water and to ensure that wastewater is treated to a level where it could be recycled and reused as part of the CWC’s water conservation advocacy and practice.

CWC has also established its environmental management system and practices self-regulation. These and more set the CWC apart from other service providers. Indeed CWC’s environmental performance and achievements are remarkable! Clark Water 2012 Sustainability Report 15 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

SUSTAINABLE DEVELOPMENT FRAMEWORK

For 2012, this holistic approach has been encapsulated and clearly reflected in Clark Water’s sustainability framework, where apart from ensuring the viability of its business, the Company endeavors to contribute to the economic growth of Clark, the social development of the communities within its service area, and the protection of the environment.

Driving Preserving and Economic Conserving Growth Natural Resources

Empowering Employees

Contributing Mitigating to Social Adverse Development of Operational Communities Impacts 16 Clark Water 2012 Sustainability Report 17 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

DRIVING ECONOMIC GROWTH Clark Water continues to be an active partner in nation-building through excellence in water and wastewater services. 18

Capex Investments For Long-Term Planning

As the country’s economy grows stronger, so is the Philippine Government’s thrust to be at par or better than its Southeast Asian neighbors in as far as being industrialized is concerned. Accordingly, various development initiatives are being pushed by the government, to include management of Freeport Zones to be the best international service and logistics hub in the region. With this, Clark Special Economic and Freeport Zone has its arms wide open for development in various industries: aviation, logistics, industrial, and eco-tourism. With the surge of developments in these industries within the zone, Clark Water is definitely one of the government’s partners in realizing this bold objective.

The influx of progress in Clark equates to additional With this, Clark Water is keen and highly dedicated locators, local and foreign, and consequently, in continuing its top-caliber performance by further increase in the demand for water and pushing through with projected investments to wastewater services. Clark Water, being the sole meet the increasing demand for its services. For water and wastewater services provider in the 2013 alone, the company targets to implement concession area, is therefore present whenever various projects amounting to over Php300M, to and wherever developments in the zone are. include the following:

While catering to the needs of its present locators Y2013 Capex Project Roadmap and further improving its existing services, the company is constantly updating its investment plans • Drilling of three production wells to align with the current and upcoming expansions • Construction of three deepwell pumping in the Freeport Zone. With an aggressive total stations water demand projection of 32.4MLD in 2013, • Construction of Water Treatment Plant Clark Water intensifies its efforts in improving • Upgrading of existing pumping facilities its services, not only on water supply but also its • Rehabilitation of old deepwells wastewater management capabilities. • Laying of water transmission lines and sewer mains For 2012, Clark Water’s implemented programs • Expansion of service coverage by in facilities, transmission and distribution network laying additional water and sewer lines development have significantly improved the • Various efficiency-enhancement projects company’s operations and services. Among these • Technical studies of future alternative water improvements are the reduction of Non-Revenue sources Water to as low as an average of 8.6% and billed volume figures exceeding targets by as much as Clark Water likewise looks into water source 5%, made possible through vigilant monitoring and development projects to further augment its quick response in repairs, maintenance and project existing and future supply. execution. Clark Water 2012 Sustainability Report 19 Water Supply Billed Volume (1000 cu.m.) MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

As the sole provider of water services in the zone, 10,000 Clark Water is constantly directing its efforts into 8,000 ensuring adequate water is supplied to its locators. 5,000 Water supply security has always been one of the company’s top priorities, enforced through 4,000 the implementation and commissioning of new 2,000 water sources, constant improvement of pipeline 0 Q1 Q2 Q3 Q4 networks and employment of new engineering techniques and technologies, taking into account Target Actual health and safety, environmental and economic impacts to cater to the ever increasing demands of its customers. NRW Percentage Clark Water aims to maintain its water supply security through various development projects to 60% further improve and increase its water production 50% capacity. Among such developments is the commencement of drilling activities for the Deep 40% Well 48 that is expected to provide an additional 30% 2MLD of supply to the company’s locators in the 20% Clark Main Zone. 10%

For 2013, Clark Water intends to implement 0.0% the drilling and construction of at least three 2011 2012 2007 2008 2009 2010 new deep well sources to provide for the water 2000 2001 2002 2003 2004 2005 2006 demands not just for the large industries, but the Requirement locators as a whole to include the commercial and NRW residential consumers. The company also eyes the rehabilitation of its old and existing wells, further maximizing their serviceability and efficiency, either through retrofitting of pumping equipment and facilities or actual rehabilitation of the wells.

Steps are also undertaken to address any and all water quality issues that arise such as iron and manganese contamination through the construction of new water treatment plants and more stringent water quality monitoring and testing regimes. Increased water supply production would also entail improvements in the existing pipe network. Projects for new pipes and rehabilitation of existing ones are also being programmed to accommodate the expected increase in supply.

Wastewater Management

With intensified efforts in potable water services, improvements in Clark Water’s wastewater capabilities are also made part of the roadmap. Programs for wastewater improvement are constantly undertaken to keep the company’s Pipe-laying works for the installation of new services abreast with Clark’s wastewater DN 200-300mm water and sewer lines at IE5 generation. and GGLC. 20

other agencies which have to be consulted especially in the implementation of the company’s projects in line.

Clark Water greatly values the initiatives and efforts of its regulators and stakeholders in the development of the zone. It is because of this that the company takes the extra step of aligning its development programs to the schemes and plans of its regulator, ensuring synergy among Clark Water and its partners. Continuous coordination is done with its government regulator CDC for the planning and implementation of its water and wastewater projects. Transparency and support Clark Water’s Pollution and Control Officer, Dante Aguas, in water and wastewater quality reporting to attends a coordination meeting with CDC’s Senior regulating government agencies is also closely Environmental Quality Management Officer, Mayflor Candelaria, to review the effluent water quality of locators. maintained, and strict adherence to required permitting processes is carefully observed. These are all testament to the company’s cooperative Among the various initiatives of Clark Water in outlook in terms of development. wastewater improvement is the construction of new sewer lines and additional sewer pumping Applying a collaborative approach with the stations, upgrading wastewater treatment plant stakeholders provides a venue for communicating (WWTP) capacity and the installation of new concerns and ideas, especially with respect to the aeration system. Wastewater treatment operation improvement of Clark Water’s services within its has also been drastically improved with its concession area. With the company maintaining integration to the SCADA or Supervisory Control a smooth and harmonious relationship with its and Data Acquisition automation system. regulators and stakeholders, it is apparent that the success of its on-going and upcoming projects will Clark Water aims to achieve 100% wastewater not be a difficult accomplishment. coverage of the Clark Freeport Zone area. To help attain this and to contribute to the company’s wastewater improvement activities, the wastewater quality from its locators is closely monitored, documented and likewise communicated with regulatory offices and agencies to immediately address non-compliant findings on wastewater effluents. This forms part of Clark Water’s assurance in terms of environmental compliance in its wastewater operations.

Partnering with the Stakeholders Karl de Guzman In relation to its projected investments in the Assistant Supervisor, Engineering Department improvement and expansion of its water and Nanox Philippines wastewater system, Clark Water is in constant coordination with its regulators and stakeholders. Clark Water serves us for more than a decade now. This includes interactions with Clark Development Its reliable water service is more than what we Corporation, existing and future locators in the need to sustain our production processes, thereby Freeport Zone, Local Government Units, National also producing good service to our customers. Water Resources Board (NWRB), DENR, and Clark Water 2012 Sustainability Report 21 Economic Value Generated and Capex Investment Distributed (In Million Pesos) 4% MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES 14%

20% Total 5% Revenue PHP318.6

7%

Total Operating 38% 12% Expenditure PHP104.1

Water Treatment Plant Upgrading and Rehabilitation (Water) Sewer Lines New Facilities and Repairs (Wastewater) Capital Water Source Development Expenditure PHP41.9 Water Transmission Lines Water Distribution Lines

Employee Wages and Benefits PHP36.0

Taxes and Licenses PHP9.0

Concession Fees PHP7.0

Economic Value Retained PHP120.6 The central tower of Clark Water’s SCADA automation system. 22

Customer Care

Clark Water commits to provide excellent water and wastewater infrastructure and quality services to support the government, particularly Clark Development Corporation, in developing Clark Special Economic Zone and Clark Freeport Zone as a key driver for economic growth in the Philippines.

Clark Water’s Customer Service Department ensures that it is able to address all types of customer related inquiries and concerns. As part of its services, potable water is provided by aware that customer satisfaction means investor Clark Water to more than 1,900 service connections confidence in locating their businesses in Clark. To within the concession area, covering a total date, with the various and effective customer service population of 96,000. The customer base includes reforms that the company has implemented, Clark the following: Water is proud to witness more customers investing in the zone—contributing to the economic growth • Residents and tourists of Clark for their of the region and ultimately to nation-building. domestic use; • Foreign investors; Benefits to Customers • Commercial and industrial locators — Semiconductor, garments, and food Clark Water continuously seeks to improve the manufacturing companies; water and wastewater treatment operations to • Government Services and Infrastructures be more effective, efficient, and sustainable to – International Airport located in Clark, meet ever-changing customer demands. In the headquarters and barracks of the last few years, it has identified more sustainable Philippine Air Force. raw water sources and constructed several new deep wells, upgraded the biological treatment Within such a hub of business and tourism activity, process for wastewater, refurbished the laboratory, water consumption is high, demanding a seamless, and successfully rehabilitated facilities. To ensure reliable supply of safe, high quality drinking water. that water management remains optimal, an automation of all existing facilities via Supervisory Clark Water does its best to provide existing locators Control and Data Acquisition (SCADA) system has with excellent water services since the company is been developed and operated last May 2012. Clark Water 2012 Sustainability Report 23

As part of its regular assessment in the performance MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES of its services and identification of priorities for improvement, Clark Water’s Customer Service has rolled out numerous projects since the start of its operations. From defining new commitments to refining service procedures, Customer Service is a high-performing, continuously improving department, committed to deliver the very best to the Clark Freeport Zone.

In 2009, Clark Water launched its Customer Service Customer service officers revisit the Customer Service Charter, outlining the company’s commitments to Charter to ensure strict adherence to their commitments. its customers. These commitments are valid for both residential and business customers. Through comprehensive communications channel, such thorough record of customer history, increasing the as visits to companies and mails, the company effectiveness of services. It is an encoding system for has kept its customers informed of its formal and customer data consolidation and retrieval. Through documented obligations. This guideline matches this program, customer service representatives the various commitments against quantitative can handle inquiries more effectively by entering indicators, for instance, time taken to install new customer account number to retrieve customers’ connections and to respond to customer inquiries, historical records and previous transactions. for systematic evaluation. This procedure has since then been very effective and resulted to a While residential customers comprise the bulk considerable increase in customer satisfaction. of Clark Water’s service connections, the top 20 locators, most of which are companies in the Customer Satisfaction commercial and industrial segment, dominate most of the water consumption. They receive additional In order to achieve higher satisfaction and quick and special services due to the large volume of response to enquiries, a Customer Relations water involved. As part of the company’s key Management System (CRM) has been developed accounts management, a dedicated representative and operated in 2010. The system enables to keep is assigned for each key customer to facilitate

The Customer Service Charter specifically outlines the company’s commitment to its customers. 24

responsive communication and provide immediate action in case of emergency. Since the partnership started, key customers have been able to enjoy various customized value-add services. For instance, whenever a leakage is identified at a customer’s premises, Clark Water responds swiftly to assist them in repairing the leak.

All these reforms and initiatives done by Clark Water have resulted to a positive feedback from customers and high level of satisfaction with the Col. Dionisio Robles various aspects of service delivery. A customer Chief of Command Staff, Air Logistics Command satisfaction survey was launched in 2008 to provide Philippine Air Force / PAF resident an important indicator of service performance. The I have been a resident of Clark for the past years survey has been designed to gauge customer views and I am proud to say that the relationship of PAF on various aspects of the water services provided City residents with Clark Water has significantly to them. Clark Water scored an overall average progressed to a point of trust and openness satisfaction rating of 80% of the categories rated. between the two. As an extension of the scale and credibility of the survey, the company commissioned a third-party I remember there was a low pressure problem professional research institute the same year, to be in one of our barracks; despite our efforts we conducted on a three–year interval. were not able to resolve it. We sought CWC’s assistance though we knew it was no longer part of their scope but Clark Water willingly The latest third-party customer satisfaction survey extended their support. And immediately, they was done in 2011, where Clark Water scored 86%, were able to trace the problem and restored an increase in rating of 6% from the previous activity. normal water supply. The company aims to continuously improve services and determined to increase its satisfaction rating in the next third-party survey to be conducted in 2014.

Key officers of Clark Water visit Yokohama Tire Philippines, represented by Senior Supervisor Bernard Yumul, to ensure that CWC is able to provide satisfactory water and wastewater services. 29%

Service Connections 56%

6%

9%

11% 7% 20%

Consumption

62% Commercial Industrial Clark Water 2012 Sustainability Report Government/PAF/Institution 25 Residential MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

31%

29%

Service Connections 56%

6% 69% 9% Top 20 Customers 11% All Others 7% 20%

Consumption

9% 9% 2% 3% 15% 62% Commercial Industrial Government/PAF/Institution Residential

62%

Industrial - Semiconductors Industrial - Garments Industrial - Other (Tire, Food Processing, etc.) 31% Commercial - Hotels, Restaurants, Malls Commercial - International Schools Bulk Supply - Balibago Waterworks

69%

Top 20 Customers All Others

9% 9% 2% 3% 15%

62%

Industrial - Semiconductors Industrial - Garments Industrial - Other (Tire, Food Processing, etc.) Commercial - Hotels, Restaurants, Malls Commercial - International Schools Bulk Supply - Balibago Waterworks 26 Integrated Management System

In its commitment to provide continual improvement in servicing its customers, Clark Water regularly assesses its performance and identifies priorities for improvement and opportunities for new strategies and systems.

In May 2005, Clark Water is one of the few international standards. Last November companies in the Philippines to be awarded 2012, Clark Water has gone through a second the triple ISO certification simultaneously -- ISO surveillance audit conducted by TUV. The 9001, ISO 14001, & OHSAS 18001 representing successful audit has retained the company’s integrated quality, environmental, health certifications for Quality Management System and safety standards. Triple ISO certifications ISO9001:2008, Environmental ISO14001:2004 + represent a milestone in guiding the company cor. 1:2009 and BS OHSAS 18001:2007. towards constant development in accordance with international management standards and By involving independent third party assessment, high awareness on quality assurance. the international management standards certification has boosted credibility and To ensure consistency and compliance to the transparency for Clark Water as a business standards, internal and external audits on the and an organization. It has also facilitated the company’s Integrated Management System integration of rules and regulations across the are conducted annually. Internal audit is being company, aligning procedures and compliance done by designated Internal Auditors to already internally. As a system of continuous evaluation identify areas of strengths and weaknesses, and improvement, the ISO certification provided in preparation for an external audit handled essential help in ensuring the sustainability of by TUV Rheinland, the company that provides Clark Water’s management system and approach. third-party audit/certification based on various

Third party certifications from TUV Rheinland attesting that the company maintains strict compliance to international standards (from left to right), ISO 14001 , ISO 9001 and BS OHSAS 18001. Clark Water 2012 Sustainability Report 27

Performance MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES And Reliability of Infrastructure

In order to fully realize the concession agreement to develop, manage and operate the sourcing, treatment, and distribution of clean water in the Clark Zone and handle the waste water services, Clark Water carried out an extensive study of the water system in Clark, which has served as the foundation for a large-scale rehabilitation plan using cutting-edge technologies. This has resulted in radically enhancing the performance and reliability of infrastructures, ensuring network efficiency which lays down the foundation in meeting current and future demands as Clark develops.

The upgraded wastewater facility operated and maintained by Clark Water.

Water and Wastewater Facilities Upgrade

In line with its efforts to optimize the functions inside the SCADA Room, installed inside the of its water and wastewater facilities through Operations office. With this tool, operators are advanced technology and management able to operate the pumps and other equipment solution, Clark Water has invested thoroughly in remotely as opposed to onsite monitoring, infrastructures which will ensure reliability and helping them to react quickly especially in upgrade of its operations in terms of capacity, instances where urgent actions are required. monitoring and control system. One of these Accordingly, the analysis and data gathering is the acquisition of Supervisory Control and have become much easier and more accurate Data Acquisition (SCADA), an automated and using this new system. enhanced monitoring system which allows the real-time checking of facilities’ operations in To guarantee the reliability of water supply for water and wastewater, using a large monitor all its customers, existing and potential, Clark 28 Performance & Reliability of Water and Wastewater Supply Facilities

Figure 7. Energy savings on water production for year 2012 as a result of Just-In-Time Production (JIT).

Water continues to invest in the construction of 1900’s when Clark Air base was still under the deep wells to augment water supply security. US government. This move has resulted to In 2012, Deep Well 46 located along Prince further lowering down the company’s system Balagtas Street inside Clark Freeport Zone was loss, from 55% when the company took-over commissioned and added 9LPS to the water the concession in year 2000, to an average of supply. On-going Deep Well projects along 8.6% in 2012, a record low in the history of the Manuel A. Roxas Highway also inside Clark company and at par with world class standards Freeport zone are also constructed, with full in terms of non-revenue water. commissioning to happen early part of 2013. These are part of a long-term development Parallel with the water supply facilities program of the company to supply water for development is also the enhancement of future customers within the zone which are the company’s wastewater treatment plant. expected to grow within the next five years. Clark Water’s WWTP upgraded its operation from anaerobic to aerobic process, doubling Performance and Reliability of Infrastructures its treatment capacity from 13.5MLD from year 2002 to 2010 to 27MLD in 2012, with a Apart from upgrading the water supply significant improvement in its treatment quality, facilities, Clark Water has also invested in pipe shown by the change of color and reduction of rehabilitation, replacing old pipes and worn- odor of the effluent. out pipes, some dating back from the early

By proactively providing quality and adequate water to serve the industrial, residential, tourism, corporate and commercial sectors in Clark, Clark Water has contributed to Clark as an investment destination of choice. Clark Water has also been very flexible in accelerating delivery of water services in underserved areas where locators will be coming in.

On top of serving Clark businesses and residents, Clark Ernesto S. Gorospe Water has also extended its service areas to the local communities immediately adjacent to Clark; thus, Vice President for Business contributing to the improvement of the quality of life of Development the local community which did not have prior access to Clark Development Corporation clean and potable water.

For all these reasons, CDC considers Clark Water a very important partner in the development of Clark and its adjacent areas. Clark Water 2012 Sustainability Report 29 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Figure 8. Energy savings on wastewater treatment plant for year 2012 as a result of optimizing blower operations.

Water and Wastewater Operations Optimization in Figure 7 whereby a monthly comparison of the actual KW-Hr and budgeted KW-Hr was Contributing largely to the reliability of plotted in a graph including its corresponding infrastructures are Clark Water’s efforts on Peso savings. Longer efficiency for transmission Water and Wastewater optimization, resulting and distribution lines are also achieved as these to significant savings in Operating Expense or infrastructures are not heavily stressed due to OPEX, particularly in the power cost. For water over pumping given the maintaining range of the supply, the JIT (Just-In-Time) Production has water tank levels as established in the practiced been practiced and developed throughout of JIT production. the year, following the principle of producing or pumping water just enough to supply the For wastewater facilities, the optimization of needs of the locators, plus a certain percentage blower operations was the key in the OPEX of buffer. By doing this, non-stop use of pumps savings particularly also in the power cost. have been prevented, causing savings in the Because of the calibration done in relation to power consumption as well as extending the the effluent quality, a savings of Php530,000.00 serviceable life of the pumps since the wear or 75,873 KW-hr was attained in terms of power and tear rate slows down. Roughly 732,000 cost and usage, results of which could be seen KW-Hr has been saved through this practice, in figure 8 whereby actual KW-Hr was plotted equivalent to 5 million peso reduction in the alongside the budgeted KW-Hr together with energy cost of water production as evidenced the company’s savings in Peso.

We are very satisfied with the quality of service that Clark Water has provided to consistently meet our water requirements, from reliable availability to stable pressure.

Communicating with Clark Water has become easy and trouble-free even at night and during weekends. Dedicated CWC officers are always standing by to answer our calls and queries. This is comforting to us Bernard Yumul knowing that we can always rely on CWC to quickly Senior Boiler Supervisor respond if we do encounter any problem. Yokohama Tire Philippines Inc. Clark Water truly understands how important water is to our operation. 30 Clark Water 2012 Sustainability Report 31 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

EMPOWERING EMPLOYEES Clark Water believes in our employees such that we inspire them to make decisions while instilling accountability; we encourage an open and transparent communication across the organization; and we enhance their skills and competencies through the provision of learning and development programs.

We ensure their health and safety at the workplace, while promoting the same consciousness wherever they are. 32 Empowering Employees

Clark Water regards its 56 employees as key to the continued success of its business and, thus, invests in honing their skills and competencies and in protecting their welfare, especially in the work environment.

Following the principles of people empowerment, the employees’ need to be recognized on a less Clark Water involves its employees in important stringent parameter. The program was launched decision-making processes and planning sessions last September 2012 following peer evaluation on to map out the company’s business strategies Attitude and Appearance, plus Attendance and moving forward. Clark Water believes that, given Punctuality, for participation of all employees, their experience with the company, its customers regardless of job rank and level. Only three and stakeholders, the employees’ inputs will months in its implementation, the Smiley Awards become increasingly valuable to the management have already generated a noticeable positive team as the business expands and customers result, where appreciation on peer recognition assert greater demands and expectations. reflects the actual work performance, generating a better output. To ensure sufficient talent pool in supporting the existing business needs while considering closely Human Resources Management the future strategic direction, Clark Water has started to develop a succession planning program Clark Water Corporation consistently puts a high to guarantee the sustainability of its operations premium to its employees, recognizing them through employee excellence. Moving forward, as the strong driving force behind the success this project will form part of a larger system which of the business. From the challenging years of will lay down the HR Masterplan for the company, transforming Clark’s fragile water and wastewater ensuring the availability and readiness of its infrastructures, until the present where it now talent pool to take on challenges considering the runs a successful operation with highly reliable growing business requirements. facilities and services, the company’s personnel have joined hands in pushing the limits to reach Clark Water also understands the importance of the end goal of excellence, conforming to its recognizing the efforts of performing employees. commitments in the concession agreement. Apart from the typical financial rewards program Clark Water Corporation acknowledges that the that centers on performance and business results, present status it now enjoys will never be possible the company conceptualized a recognition without the employees, which indisputably have scheme called the “Smiley Award” to address been the key to the continued business growth.

Average Number of Hours of Training Number of Training

248 50 45 250 40 34 200 30 150 118 100 88 20 10 50 3 0 0

Executive Manager Supervisor Rank & File Male Female Figure 9. Average Number of Hours of Training per Employee Figure 10. Number of Training per Employee Gender Y2012. Category Y2012. Clark Water 2012 Sustainability Report 33 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

The Human Resources Department promotes the competency based training (CBT) model which helps identify training needs based on the capabilities specified for each position.

Clark Water employees welcome the first Monday of every month through a General Assembly.

Elected employee representatives occasionally hold a general assembly to listen, and eventually address, employee complaints.

Ensuring the welfare of its most important Representative, where key officers respond to corporate resource is at the heart of Clark the needs raised by employees. Issues are either Water Corporation. Equal treatment on diverse resolved instantly on employee level, or further employee demographics is steadily implemented escalated to management if necessary, and then while upholding the highest level of employment relayed back accordingly, forming an end to end practices based on local and international cycle reflective of a very transparent management standards. Pertinent labor-related laws such approach. as appropriate working conditions, inclusive of applicable guidelines for special working groups, Over the years, Clark Water Corporation non-discrimination, anti-bullying practice among has maintained a lean but highly functional others, are strictly adhered to. Competitive workforce who, despite challenging situations, compensation and benefits package are also has successfully worked together in propelling offered to uplift the lives of the employees, the organization to where it is now. and appropriate rewards scheme is in place to provide incentives to whom it is due, anchored Development Path for Career Growth on meritocracy. Viewing its employees as its most important Maintaining a venue for an open line of corporate resource, Clark Water ensures communication is one of the organization’s tools provision of training programs and seminars for in taking care of the needs of the employee. them, allowing room for continued skills and Aligned with the requirement of ISO Health and competencies enhancement. Through the years, Safety Management System standards to which this has been included as one of Clark Water’s it is subscribed to, Clark Water Corporation investment items, promoting a progressive and regularly holds an Employee Consultation long-term development for its workforce. exercise, facilitated by an elected Employee 34

Employee Benefits

Statutory Provisions Company Provisions Social Security System (SSS) Performance Bonus Philhealth Health Insurance (to include one free dependent and two additional dependents subject to salary deduction for one year) Pag-Ibig Housing and Multi-Purpose Loan Group Life and Accident Insurance 13th Month Pay Wellness Benefits 5 Days Service Incentive Leave Uniform 60 or 75 Days Maternity Leave Commutation of Allowable Sick Leave and Vacation Leave Credits 7 Days Paternity Leave Medicine Reimbursement Special Leave for Women Bereavement Assistance Bereavement Leave Overtime Pay for Rank and File Employees Flexi-time Arrangement for Managers up Vacation Leave Credits depending on years of service (15 days minimum) Sick Leave Credits depending on years of service (15 days minimum)

The Competency-Based Training Model applied by The continuous training process to foster skillful the company is an advanced training needs analysis and knowledgeable employees has produced structure which helps identify the training needs of significant results for Clark Water Corporation. each employee based on capabilities per position. With a workforce comprised of 55% of field This translates to the formulation of an Individual personnel, tailored in-house trainings were Training Plan which indicates the competency provided, to include basic computer applications, requirement of the employees the following year to expand their knowledge which proved to and will have a corresponding training or seminar be very useful. To date, several line employees to serve the particular development need. have been empowered to prepare and analyze operational reports, utilizing the knowledge In year 2012, Clark Water spent a total of 940 acquired from previous programs. The ability to hours on training requirements addressing the multitask has also been embedded to employees existing and upcoming needs of the company. A across all levels, allowing them to handle varying total of 100% of the company’s population went responsibilities within or even outside their to various trainings and seminars covering topics working group. on Leadership Management, Environment, Health and Safety, and Water and Wastewater Operations. To date, with a lean composition of able and Some of these were the following: hardworking personnel, Clark Water Corporation has the ability to effectively handle the operations I. Leadership Management – HR Leadership within the Clark Freeport and Special Economic Conference, The Making of Extraordinary Zone Areas, contributed greatly by a broad range Leaders, Winning Disciplines for Success, of development programs designed to enrich skills Business Succession Planning set and competencies. The Individual Training Plan the company continuously applies ensures II. Environment – Energy Forum, Advanced PCO identification of priority trainings for the CWC Course, GHG Protocol, GPIoS Sustainability workforce which helps motivate them to strive Workshop harder and work towards career development. Through the years, it has remained a helpful tool III. Health and Safety - Safety Summit, OSH in developing key and potential talents while Safety Conference, 13th NOSH Congress, preparing the ground for future leaders through Emergency Preparedness & Response, First learning and development programs. Aid and Basic Life Support

IV. Water and Wastewater Operations - SCADA Training, Water and Wastewater Management, Water Loss Conference, Singapore International Water Week, DMI 65 Operation Training Clark Water 2012 Sustainability Report 35 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Allan Lopez Recto Gonzaga Jr. Water Consumption Analyst Water Meter Technician (Former Utility Personnel) (Former Utility Personnel/ Clark Water Corporation Water Meter Reader) Clark Water Corporation

As a utility personnel, I am very happy with It was 1998 when I started as a project employee my work. I strive to give my best whatever the in Clark Water. After about a year I was absorbed assignment is, and I will always ensure to follow and assigned as utility personnel. the direction of my supervisor. I actually wanted, if given the chance, to be part of the maintenance Because the management had seen the potential team so I can learn how to drive, fix vehicles and in me, they promoted me as a meter reader. I the like but I understand that no opportunity was mainly in-charge in water meter reading and was available since the existing personnel were dispatching of billings. It was also that time when I already sufficient. I continued on in being the best started to use a computer to manually encode the as I can with my task as a utilityman. meter readings since we do not have a software system yet. One day, our Customer Service Officer informed me that they needed someone to monitor the When Veolia Water came in and took over the water consumption of the top 20 customers. I management of Clark Water, I was one of those was asked if I wanted to take on the position, and who had given the opportunity to step up the because I wanted to explore new leanings, I gladly ladder and assigned as Water Meter Technician. said yes. I underwent training on the proper meter The management was very supportive that they reading techniques and was able to successfully provided me with trainings I needed to perform render my new role. my duties efficiently, not to mention the basic computer use and MS office programs which are I am very happy that I have been given this very essential for me as Water Meter Technician. type of opportunity to learn more in a different position. I feel fortunate that the company has With the guidance of my supervisor, now I can entrusted me to execute this serious responsibility design and estimate new water service connection being now a part of the Customer Service team and can set the program for checking of water where my inputs are critical in managing our key meter accuracy. I am also proud that I am the accounts. I am very thankful for the trust given by team leader in our Emergency Response Team. management and I give my full commitment to continuously do better in my job. (Translated) I am very delighted how the management showed their support not only in the development of my career but also my personal growth. (Translated) 36

Managing Health and Safety

Ensuring the Health and Safety of employees remains part of Clark Water’s priority for its valued workforce.

In order to maintain a safe working environment in of Labor and Employment (DOLE). This additional all its facilities, first aid kits are made available for recognition opens the opportunity to be more field personnel especially given the nature of their abreast in H&S application, for the benefit of Clark functions with more exposure on hazards and risk. Water employees. The company also has a resident First-Aider and an alternate who are sent regularly for applicable On top of having an expert in safety practices, Clark trainings to enhance their skills and knowledge in Water empowers its employees to be involved giving the needed medical attention at the first in the development of health and management instance of danger. systems, and hence, has set a committee to ensure

Apart from the regular first aiders of the company, select employees were made to attend Health and Safety trainings and seminars, where learnings were later on cascaded to their respective teams for the necessary application in the workplace. Last year, 144 hours of related trainings were spent for health and safety awareness and updates, which include the following:

• Basic Life Support and Adult CPR • Safety Summit • Occupational Health and Safety Updates • 13th NOSH Congress • Emergency Preparedness and Response

As a testament to the company’s continued resolve in augmenting its Health and Safety practices, the safety officer of the company Mr. Giovanni G. Ocampo, with the support of Clark Water Management, has received in 2012 his Safety Practitioner license from the Department Clark Water’s Safety Office Giovanni Ocampo receives his accreditation as OSH Practitioner from DOLE in December 2012. Clark Water 2012 Sustainability Report 37 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

EMERGENCY RESPONSE TEAM

Incident Coordinator Pedro M. Sandiego IMS Chairman PCO Safety Officer Dante V. Aguas Giovanni G. Ocampo Incident Commander/s Marco C. Anasco Emergency Response Leader

Romeo D. Cotioco Alternate Emergency Response Leader

Logistics Team Entry Team Traffic and Security Team First-Aid Team Fernando Z. Datu Recto T. Gonzaga Norlito G. Policarpio Norbert C. David Team Leader Team Leader / Fire Warden Team Leader Team Leader

Mark Vin A. Sibug Noel G. delos Reyes Robert G. Calipara Jeffreyson C. Dimacali Rommel G. Cortez Efren P. Udiong Normando P. Lumanlan Walter J. Romero (Alternate) Rellie M. Dizon Alvin C. Dizon Sunday C. Campo Rellie M. Dizon (Alternate) Louie R. Lacsamana Fausto G. Calusa Randy M. Marcelo Jaime G. Gopez Edgar G. David Benjamin T. Dela Cruz

Communication Team Decontamination Team Documentation Team Telesforo R. Bauto Eduardo A. Vital Herwin P. Gutierrez Team Leader Team Leader Team Leader

Aileen S. Baluyot Sammy R. Navarro Noel L. Villaluna Victor L. Rivera Allan G. Lopez Bernadette A. Avellano Precius S. David Nathaniel G. Balicao

the company’s compliance to occupational health True to its dedication in health and safety and safety standards. The committee includes programs, the company received an award representatives from different sections within from DOLE in recognition of achieving 112,378 the Operations and Technical Services Group and safety man hours for 2010. This is presented to is responsible in implementing Health and Safety organizations who reported no lost time and programs of the company as well as adherence other work related injuries for a span of one to relative standards. While this arrangement is year, proving the company’s continuing efforts in in place, Clark Water regularly urges everyone providing employees a safe working environment. to be responsible of its personal safety through Additionally, Clark Water has also successfully health bulletins and reminders during the General renewed its OHSAS 18001:2007 certification, a Assembly, encouraging all to make safety a habit. clear testament to compliance on international standards for Occupational Health and Safety. 38

Clark Water employees have fun during the annual Sportsfest activity.

Maintaning a healthy workforce of all employees and visitors. The LOTO or “Lock Out Tag Out” procedure was also introduced to To promote health consciousness in its employees, provide positive isolation of the equipment for Clark Water has put up an area to accommodate every maintenance activities. This is to ensure no various sports like basketball, volleyball & table incidental “switching on” of said equipment during tennis. This encourages exercise and physical its maintenance period. fitness and provides a venue for relaxation after working hours. Additionally, annual Sportsfest In order to ensure readiness in times of are also being held where everyone takes a day- unforeseen emergencies such as accidents or off from work routine to play sports with one calamities, Clark Water has set into place an another, showcasing team spirit and camaraderie. Emergency Management Plan where teams have A noticeable decrease in the number of sick leaves been organized and trained to handle crisis such has been registered for 2012 owing largely to as chlorine leak, fire, earthquake, and the likes. these programs, with a 15% reduction from the Similar trainings are also provided internally to 2011 figure. all employees, facilitated by team leaders, to provide timely awareness in responding to urgent Emergency preparedness situations. These include response to chlorine leak, firefighting (proper use of fire extinguisher), Aside from having a program for health, several and basic first aid among others. Regular safety policies are likewise implemented by the activities, such as fire and earthquake drills, are company. One of these is the designation of also conducted to instill awareness on what to do smoking areas with visible signages, for compliance during emergency scenarios. Clark Water 2012 Sustainability Report 39 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

A chlorine drill forms part of the company’s Health and Safety Week.

As a company who not only safeguards health and safety of its employees but also is concerned on the environmental impacts of its operations, Clark Water invested in a new technology of fire suppressor using FM200 gas. The fire protection system is equipped with two sensors that will detect smoke, set automatically for discharging gas to prevent an occurrence of fire. The emitted gas is clean and safe, protecting not only the property from fire, but also the environment as the element discharged is an eco-friendly gas.

With all the current programs on Health and Safety as well as the continuing development of new related initiatives, Clark Water is indeed a company that provides empowerment through promotion of a healthy workforce and a safe working environment.

Clark Water employee practices the LOTO procedure to prevent the switching on of equipment during its maintenance period. 40 Clark Water 2012 Sustainability Report 41 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

PRESERVING AND CONSERVING NATURAL RESOURCES Clark Water advocates environmental stewardship. Our efforts are focused on the protection and efficient use of our natural resources. 42 Assessment of Groundwater Resource

At present, Clark Water operates and sources water from 22 deep wells strategically constructed in various locations within the Clark Freeport Zone.

The Sacobia River, located in the Clark Freeport Zone, is one of the potential water sources being explored by the company.

For 2012, the company has steadily increased its aquifers in the long run will result not only to water supply production and in strict compliance groundwater depletion but also produce other with NWRB’s granted quantity to be extracted, the adverse effects such as water contamination, existing deep well sources produce over 27MLD salt water intrusion, land subsidence, and other of supply. Additional deep wells are likewise in negative environment impacts. line for construction to cater to the increasing water demand of locators, old and new, in the This in consideration, Clark Water exerts its service area. best efforts to come up with alternative water sources to mitigate the negative effects of However, in as much as Clark Water aims in groundwater extraction and to lessen the providing the water needs of its customers within company’s dependence on groundwater in the the zone through system improvement and area. Primarily, Clark Water regularly monitors addition of deep well sources, it also heightens the condition of the aquifer within the zone. To its awareness on the effects of groundwater facilitate the monitoring process, the company extraction to the environment. While the company developed an analytical groundwater modeling maintains strict compliance to the allowed limits which can assess the recorded flows, yields, and of groundwater supply, the effects of multiple quality of the groundwater in the area. groundwater extraction, not only within the CFZ but as well as its neighboring communities, Another measure being considered is to tap are inevitable. Continuous extraction from the surface water sources. With Clark Freeport Zone Clark Water 2012 Sustainability Report 43 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

The two division of the Clark Special Economic Zone (CSEZ): The Main Zone or the Clark Freeport Zone (CFZ) and the Sub Zone.

being part of the Pampanga River Basin, there are a number of potential surface water sources which may prove viable: e.g. Sacobia River, Marimla River, etc.

In addition to constant monitoring and regulation of groundwater sources, studies are Juan Miguel Fuentes underway not only to reassess the capacity of Manager, Environmental Management the groundwater aquifers but to explore the Clark Development Corporation viability of potential surface water sources, particularly the Sacobia River. The study shall Clark Water has always been a very avid take into account the technical, economic, supporter of the environmental initiatives social and environmental viability of the project. of Clark Development Corporation for the Applicable means of water extraction such as sustainable development of the Clark Freeport Zone, from environmental conservation, to waste infiltration galleries or infiltration wells are management and even to social development. likewise being considered. These alternatives, if Not only does it play a supporting role to our proved viable, will be of great benefit in terms of environmental projects, it also has its very own additional supply and will also lessen activities set of initiatives to promote environmental related to groundwater extraction, mitigating sustainability. One is its program to utilize the serious environmental impact. shallow aquifer of the Freeport Zone. While using that water system will require some treatment, it will now require less energy and less of the other resources to extract it. As the environmental regulator in Clark, having companies like Clark Water as partners makes my job a lot easier. 44 Managing Solid Waste For Clark Water, only through a holistic business outlook, to include environmental responsibility, can sustainable development be truly achieved. And this is most apparent in its formulation and adoption of best environmental practices, one of which is the establishment of the Waste Management Program.

Trash cans are labeled accordingly into biodegradable and non-biodegradable to encourage employees to practice segregation.

The company is strictly implementing the ecological and non-biodegradable rubbishes are hauled and solid waste management program known as the disposed by Metro Clark Waste Management Republic Act 9003, in response to the call of the Corporation, the company tasked by CDC in handling government for greater participation among the the solid waste generated by Clark locators. With private sectors. The program aims to set guidelines its strict implementation in all Clark Water facilities, and targets for solid waste avoidance and waste achieving the goal of waste minimization has been minimization measures, including composting, made possible. For year 2012, the company has recycling, re-use, recovery, and others, before achieved 35% reduction in solid waste compared to disposing in appropriate and environmentally sound year 2011. solid waste management facility. The support given by Clark Water employees to this At Clark Water, wastes are segregated into program extends at their homes, recognizing that biodegradable, non-biodegradable, recyclable household education on proper waste management and hazardous. Recyclable wastes are being sold increases awareness and concern in saving the or donated to schools and charitable institutions, environment by minimizing land pollution. ineffectual biodegradable are made into compost, Clark Water 2012 Sustainability Report 45 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Clark Water receives the following awards from CDC: Recognition for Excellence in Environmental and Health Management and the Green Plaque Environmental Award.

In line with solid waste management and disposal, Clark Water has included in the lineup of its future projects a sludge management program, to be implemented following set operational conditions. Based on the operation of the lagoon, disposal of Non-Bio Waste Disposal sludge may only happen in the next fifty years, as sludge increases at a slow rate of 0.1cm per year. When significant amount of sludge is collected in 800 kg the WWTP, this will either be dumped in an offsite 700 kg sanitary landfill or be used as soil conditioner depending on the characterization test that will 600 kg be conducted prior to removal. As soon as the 500 kg sufficient quantity of sludge is yielded, Clark Water 400 kg will be ready to perform its obligation to properly 300 kg dispose this waste. 200 kg 100 kg With the excellent operation of the wastewater treatment facility in Clark along with the many 2011 2012 environmental initiatives done by Clark Water, it is Figure 11. There is a noticeable reduction (35%) in solid not a surprise that the company has been awarded waste for the year 2012. the “Green Plaque Clark Environmental Award” from CDC and “Plaque of Appreciation” from DENR- EMB in recognition of its outstanding record of compliance with national environmental standards and its continuous support and contribution to various environmental activities. 46 Promoting Biodiversity Clark Water’s vision of being internationally recognized in providing excellent water and wastewater services comes an even stronger pledge in the promotion of sustainable development.

A student of Brightwoods School explains his vision of the future with the guiding theme “when Biodiversity brings my city to life.”

This objective has paved the way for the company to Waste Segregation carry out a Biodiversity action plan, recognizing the high interdependences of business and society and Clark Water also launched a waste segregation ensuring that the needs of the future generation will campaign wherein wastes are classified as not be compromised given the growing demands of Biodegradable, Non-Biodegradable and Recyclables. the generation today. Focusing on the environmental Biodegradable wastes such as grass or flower aspect of sustainable development, Clark Water cuttings and food wastes are also recycled and used launched various initiatives, which does not only as fertilizers. An orientation on the 3Rs (Reduce, require creating a rich biodiversity in the area but Reuse, and Recycle) was conducted for the employees also the maintenance of what it already has. to have a broader awareness on waste management.

Flora and Fauna Eco Labeling

In line with its program of managing the flora and Starting in 2010, the use of eco labeled and green fauna of the community, the company’s employees choice products have been widely observed in engage in annual tree-planting activities, organized Clark Water. Consumer products such as soaps and internally to enrich the presence of biodiversity within detergents purchased by the company are required to the service area. Accordingly, low maintenance have an eco-label signifying the products’ compliance plants such as Aurora, Calachuchi, Vinca, Lantana, to an environmental standard, something which and creeping grass were planted around the office Clark Water highly espouses. premises, and flowering plants were also planted in order to attract birds and butterflies alike, as well To date, the company strives to push further in the as installing birds-nest boxes atop tree branches to development of its biodiversity programs and is serve as their habitat. aiming towards becoming more economically, socially and environmentally responsible through beneficial initiatives for the business and its stakeholders. Clark Water 2012 Sustainability Report 47 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Low maintenance plants surround the office premises as part of the biodiversity action plan.

Understanding and Communication on Biodiversity

Forming part of the company’s campaign to promote timely environmental advocacies, especially to its stakeholders, is the implementation of valuable educational programs on aspects related to Sustainable Development. Over the years, students of various institutions have benefitted from the company’s drive to promote projects which target to impart awareness on preservation of our resources and encourage biodiversity. In 2011, the company The winners of the on-the-spot poster making contest hosted a Local Information Drive and chose two receive their award from Clark Water’s General Manager, elementary schools within the Freeport and nearby Mr. Jesus D. Laigo. areas as the participants- specifically, Brightwoods School and Air Force City Elementary School. It is a whole day event where children are immersed in simple educational and fun activities. Colorful and very educational reading materials, which contain key concepts about biodiversity as well as easy do- it-yourself exercises have been distributed for local use, encouraging the children to start preserving and conserving biodiversity at an early age, regardless of whether they live in a rural or highly urbanized community. Portion of this program as well was an On-the-Spot Poster making contest with the guiding theme “When Biodiversity Brings My City To Life”. With the support of SM (who is among Clark Water’s Emelie Guevarra key accounts), all winning artworks have been Teacher exhibited in a select area within the mall, and cash PAF Elementary School prizes were also awarded to the winners. A number of 30 students ages 10-12 registered and joined the Students from PAF Elementary School were very contest. happy when Clark Water had an IEC program in our school. The theme “When biodiversity brings With its strong promotion of Sustainable my city to life” was so meaningful that until now has a recall to us. Development to all of its stakeholders, children included, Clark Water believes that in the greater Portion of the program was poster making scheme of things and in the near future, appreciation contest in view of the said theme. Teachers from and application of these simple programs will our school were very impressed of how the translate to generally lesser waste and pollution, children showed their vision of the future in their fresher air, and cleaner water, for the benefit of the respective canvass. future generation. We are hoping that there will be more programs like this and again our school will be part of it. 48 Clark Water 2012 Sustainability Report 49 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

MITIGATING ADVERSE OPERATIONAL IMPACTS Clark Water ensures sustainability in its operations by minimizing environmental impacts while enhancing operational efficiency. 50

Hazardous Waste And Substances Management

Being a water provider utilizing ground water as its main source, Clark Water embraces its responsibility to the environment.

Aligned with this objective, the company Appropriate measures are implemented to developed a program for the control of hazardous ensure disposal of the above items, to include waste to mitigate accidents, spillages, and others, internal arrangements, e.g. provision of a reaffirming its commitment to environmental box dedicated for empty batteries; collection legal requirements. Under this program, the of empty cartridges of printers to ensure Chemical Management Team together with the control and proper disposal; and external Pollution Control Officer ensure the appropriate coordination with CDC and other stakeholders measurement and monitoring of hazardous on waste management activities. The company waste generated, recovered, and stored by Clark likewise constructed a storage facility for Water, which involve the following harmful recovered chemical, maintained regularly items and substances: by the Chemical Management Team who ensures all recovered hazardous waste are • Fluorescent bulbs due to its mercury properly labeled, well arranged and stored in content; appropriate containers to prevent leaks and/ • Laboratory waste with cyanide; or spillages. Additional spill kit or pillows are • Oil and waste recovered from also provided to mitigate impact of spillage. vehicles and equipment including contaminated materials such as oil Hazardous Waste filters, spill kits and pillows; • Oil or grease recovered from sewer In addition to the hazardous waste storage lines during maintenance and oil or facilities, the company added in 2012 a storage grease trap waste from wastewater room for recovered grease trap in the WWTP. treatment plant; The storage room at the same time has served • Used Battery Clark Water 2012 Sustainability Report 51 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

as a secondary containment in case leakage of treatment of its recovered waste by means the recovered grease trap containers occurs. of careful selection of its hauler and treater, Accordingly, these containers are properly ensuring that only DENR accredited providers will labeled and arranged as per DENR standard, be accommodated for the necessary service. This and well managed by the group assigned in the guarantees that the recovered hazardous waste wastewater lagoon. from Clark Water’s operations are all controlled, treated and disposed as per legal standard, Apart from the close monitoring, control, and reiterating the company’s commitment to instill storing of hazardous waste, Clark Water also responsibility in its operation by taking care of takes responsibility in the proper disposal and the environment.

Hazardous wastes being properly stored, labeled and arranged. 52

Service Reliability

Water quality remains as Clark Water’s priority commitment to its customers inside the zone.

Clark Water’s Quality Assurance Department performs twice a week testing of water samples to ensure strict compliance with PSNDW. Frequent water tests are conducted and results are released to Clark Development Corporation as per Clark Water’s Concession Contract and to all customers monthly, attached to their water bill. In year 2012, a total of 5,400 samples were tested, covering treated water from pumping stations and the distribution points, and regularly observed 14 parameters to ensure compliance to the Philippine National Standards for Drinking Water (PNSDW). Additional raw water samples were taken monthly from deep wells averaging at 15 samples per month. Providing monthly reports on water quality sends out a strong message of transparency and commitment to customers.

The wastewater system in Clark is operated at all times in accordance with the environmental standards stipulated by Clark Development Corporation’s Environmental Management Department, and the Department of Environment and Natural Resources (DENR). Treated wastewater has reached the compliance Clark Water 2012 Sustainability Report 53 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

rate as required in the contract. To achieve this high compliance level, weekly testing is done on samples from the lagoon influent and effluent regularly examining 22 parameters from both influent and effluent. Frequency of testing and the parameters tested are both in compliance with the concession contract and the DENR- Department Administrative Order 35 or DENR- DAO 35 requirements. Further, the installation of mechanical aerators is increasing the circulation of water in the lagoons and expediting the injection of oxygen, making the process more efficient and powerful.

Apart from being responsible water and wastewater service provider, Clark Water aims to be a socially A study made by an engineering consultancy and environmentally responsible company. While firm on the groundwater conditions in CFZ. the economy in Clark shows promising signs of growth, the company endeavors to engage stakeholders to show commitment in ensuring environmentally friendly features in the area, which means development in the zone should not compromise the protection and welfare of the surrounding communities. To help achieve this, Clark Water commissioned hydraulic studies to conduct groundwater modelling which allowed the company to accurately gauge current and future water storage volume, recharge rate, and the direction of groundwater flow. This meticulous measures taken by Clark Water help ensure the aquifer to provide sustainable fresh groundwater to Clark while protecting the most valuable natural resource for the future generation.

The CDC and other regulatory government agencies like National Water Resources Board and the Department of Environment and Natural Resources regulate Clark Water especially in terms of water Sample water analysis results provide assurance of water potability to our customers. source extraction and wastewater discharge. In strict adherence to this very vital mandate, the company ensures that its water extraction and wastewater discharge have no adverse impact to the environment and its surrounding communities. 54

Sustainable Water Resources Development

Clark Water is in full awareness of how necessary water is for everyone to sustain life.

This said, studies reveal that the water demand all over the world increases twice the rate of population growth. This increase, brought about not only by population but also the economy and industry, has resulted to appropriation of approximately half of the earth’s accessible freshwater, from aquifers, rivers, and lakes. At this rate, the world faces depletion of water sources and consequently water crisis. SCADA screenshot of the centralized monitoring system of potable water. While water covers 75% of the earth’s surface, only 1% is available for human consumption. Although some can be tapped and used for purposes other than drinking, high costs of extraction and treatment limits the availability of potable water supply. In the Philippines alone, studies reveal the country is among the lowest in Southeast Asia in terms of fresh water availability. Furthermore, it was projected that water deficiency will be experienced by several river basins, including the Pampanga River Basin, by 2025.

SCADA screenshot of the centralized monitoring system of Faced with this challenge, the Government has wastewater. been pushing for means to address the existing water resource problems in the country. Although short term solutions are implemented, the need to provide long term remedies is necessary to be able to minimize the projected water scarcity problems in the near future.

With the continuous growth of industries in the Clark Freeport Zone, Clark Water recognizes the importance of sustainable water resources development. With this, the company has been continuously implementing monitoring and SCADA screenshot shows the trend of water flow and improvement activities on its existing groundwater pressure of Deepwell 42. sources and at the same time, exploring other possible and viable water sources to cater to the Clark Water 2012 Sustainability Report 55 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

ever increasing water demand in the concession area. Among the measures being taken by CWC are as follows:

• Compliance to the permits and licenses required by the monitoring agencies such as the NWRB and DENR Mayflor Candelaria As CWC finds ways to further augment the water Senior Environmental Quality supply for CFZ, it ensures that permits for new Management Officer, Environmental water sources are being applied to and secured on Management Department time. In the same manner as the new application, Clark Development Corporation renewals of permits and licenses are being closely monitored and complied to. Clark Water Corporation (CWC) has provided sustainable and sufficient potable and industrial water requirements of the Clark • Improvement of water supply facilities or Freeport Zone locators. They have undertaken equipment a comprehensive ground water study of the whole CFZ to properly site production Equipment and facilities, particularly the wells for long term and sustainable resource measuring tools for iron and manganese, are management, constructed and upgraded the improved and regularly checked. Calibration and centralized sewerage system and wastewater verification schedule of various equipment are treatment plant for the Zone in order for strictly implemented to maintain the smooth CDC to meet its requirements pursuant operation of the facilities. to the provisions of the Clean Water Act. CWC has been very active in environmental programs like being one of the founding • Water quality monitoring members of the Environmental Practitioners Association (EPA), and has always been an Water samples from existing deep well sources are active participant in EPA-initiated annual regularly submitted for water quality testing. This tree planting activities, beach clean-up and is to closely monitor the possible contamination recycling events. Likewise, CWC has its own of the aquifer, which will be the basis for proper environmental advocacies as part of their action such as provision of additional water Corporate Social Responsibility (CSR) projects. treatment plants. The CWC participation in the Adopt-an- • Water Resource Monitoring Estero Project of DENR will ensure that the River, which is the main outfall of the Clark Wastewater Treatment Plant will The amount of water extracted from the existing remain clean even outside the boundaries of sources are closely monitored, logged and the Clark Freeport Zone. reported to our regulators and other concerned agencies. To monitor the groundwater conditions within the CFZ, 16 observation wells have been drilled to serve as monitoring wells. This number is in addition to the existing 12 observation wells and abandoned wells currently used for the same purpose. 56 Clark Water 2012 Sustainability Report 57 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

CONTRIBUTING TO SOCIAL DEVELOPMENT OF COMMUNITIES Clark Water builds and strengthens partnerships with marginalized communities by providing access to clean and safe drinking water. 58

Clark Water’s ManCom share a toast during the valve opening in Marcos Village.

Accessible Water for All

Localizing Manila Water’s “Tubig Para sa Barangay” project, Clark Water came up with its very own “Siping Bale” initiative, aptly deriving the kapampangan term that stands for “Kapit Bahay”.

This project aims to provide water services to for all is its upcoming water provision project to the low-income communities in its service area, Sitio Monecayo, an Aeta Community comprising who the company knows are in great need of 105 households, in partnership with Clark of potable water to improve their health and Development Corporation and Manila Water sanitation. Foundation. Applying Manila Water’s ‘Ahon Pinoy’ Program, this activity aims to provide Since 1999, Clark Water has been servicing clean and potable water for the said marginalized the said communities and is constantly in sector, which will later on be converted, if viable, touch with them for any additions or needed as one of the community’s livelihood source. improvements. Part of the pipeline in 2013 is the handling of the resolution submitted by Marcos Clark Water’s advocacy to make its water Village highlighting their requirement for the services available for all provides an opportunity enhancement of the current facility setup in for low-income communities within its service order to meet the growing demand for water of areas to be given access to a reliable and fully their additional residents. operational water supply. This goal has been made an integral part of the company’s project One of the company’s demonstration of its roadmap in the coming years, widening its reach growing efforts in pursuing water accessibility to unserviced locations and sectors, making clean and potable water accessible to everyone. Clark Water 2012 Sustainability Report 59 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Clark Water’s customer service officer educates the residents of Marcos Village on the company’s tariff rates.

Clark Water employees partner with the residents of Marcos Village to ensure the successful implementation of its “Siping Bale” Program.

Hon. Bonifacio M. Estanislao Barangay Captain Barangay Marcos Village

“Ang tubig ay buhay sa mga tao ng Marcos Village (Water means life to Marcos Village).” Since 2002 I have seen how water provision in my village has improved. We have always counted on Clark Water to supply clean and potable water to Marcos Village.

Now we are in a situation that the demand for water has grown because of the increasing population of the Barangay. When we referred this to Clark Water, the company has set forth a program for water supply to reach even the houses in the farther areas. The option that they gave us to have individual meters will also promote responsible water use among the people. With this, I am truly grateful for the support of Clark Water to the development and improving livelihood of Marcos Village. 60 Clark Water and the Community

Clark Water recognizes the important role the community plays when it comes to the operation of its business, forming a correlation affecting both parties in varying degrees. Pursuant to its commitment to sustainable development, the company is willing to maximize its people and resources to ensure that it is always able to extend assistance to the community should the need suddenly arises.

Oplan C.A.R.E organized and participated in by the company are as follows: Holding true to its promise of committing itself to sustainable development, Clark Water has been • River Clean-up drives in the Meycauayan- implementing the OPLAN C.A.R.E (Clean-up, Aid- Obando-Bulacan River System giving, Rehabilitation and Education), focusing • Habagat Relief Drive mainly on the social and environmental aspect of • Water Provision to typhoon victims the company’s ‘reaching out’ campaigns. As part also of the company’s social commitment Clean-ups and Aid-giving to give back to the community, outreach programs have also been organized for the benefit of For the past years, various projects have already abandoned, disabled, and less fortunate members been implemented by Clark Water, strengthening such as the children from the Munting Tahanan ng the relationship of the company with the Nazareth located in Mabalacat, Pampanga. This community. In 2012, some notable initiatives outreach program was essentially a joint venture between the company and the Clark Air Force.

Mr. Jesus D. Laigo, General Manager and COO of Clark Representatives of Clark Water and Clark Air Force Water, participates in the Sitio Haduan OPLAN C.A.R.E visit their less fortunate brothers and sisters in initiative. Munting Tahanan ng Nazareth. Clark Water 2012 Sustainability Report 61 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

Rehabilitation

One of the most noteworthy beneficiaries of the company’s OPLAN C.A.R.E. is Sitio Haduan, an Aeta community located in Mabalacat, Pampanga. Company employees organized a clean-up in the area together with an outreach activity wherein the local residents were given food and school supplies. A lecture on solid waste management was also held in a nearby school to teach the children how to properly segregate and dispose Clark Water joins its partners in the Adopt-an-Estero project their waste. Also, in response to the residents’ plea of the DENR. for a source of water due to the scarcity of clean water within the area, a rehabilitation program for the community’s water source was arranged and performed by the Clark water employees. They cleaned and painted the artesian well and had it fully operational in no time.

Education

To ensure the effectiveness of the company’s sustainability programs, education of stakeholders involved is made part of the OPLAN C.A.R.E. Several information drives to schools within or even outside the company’s service area have been launched, seeking a more active involvement of the younger generation in worthwhile sustainable actions to Employee volunteers from Clark Water during the preserve the future of the next generation. Company’s Habagat relief drive.

In 2012, Clark Water was privileged to host part of the activities in the Clark area of the Ms. Earth candidates, where some 15 delegates were given a talk on proper waste management, and where they likewise conducted a tree-planting activity in the company’s Wastewater Treatment Plant. While these personalities are not ‘officially’ part of the stakeholder universe of Clark Water, having them educated and engaged on environmental advocacies, very much aligned with what their organization espouses, elevates the dissemination of worthwhile information to more people all over the world, increasing environmental awareness even through small but efficient channels. Chosen delegates of the 2012 Ms. Earth pageant together with Clark Water employees actively took part in the tree planting activity held last November 12, 2012. 62

Clark water employees join PAF students in planting trees as part of the company’s environmental protection initiative.

Clark Water, in partnership with DENR, launched the phase 1 of its Adopt-an-Estero program last March 01, 2013.

Liberty Sunga DSWD Officer Department of Social Welfare and Development, Masantol, Pampanga

Clark Water employees join the annual At first, our people were very hesitant to receive International Coastal Cleanup program of DENR water from a local water district since they saw held in Boardwalk, Subic last September 17, 2011. that the hose is directed to the flood water. Although it was explained that the water is treated, they were very hesitant to receive it. That’s why the community is very thankful of Clark Water Corporation’s arrival, bringing in a huge water tank for free distributing to our affected residents. Most of them did not buy purified drinking water anymore saving them a lot of money which they can use for other important expenses. Thank you very much Clark Water Corporation for your efforts in helping the needy. Clark Water Sustainability Report 2012 63

Clark Water MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES And The Future

Twelve years since the start of the concession agreement, Clark Water Corporation has made considerable achievements in the performance of its obligations, not only contributing to the growth of the business in the Clark Special Economic and Freeport Zone but creating an impact as well in the community it serves with the measures it implements on environmental and social consciousness.

Through these efforts, a high-performing and focus areas – Water provision to the urban poor; sustainable operations have been established, Water Education; and Environmental Protection, allowing Clark Water to be a partner in nation Clark Water will formalize its commitments to social building through world-class provision of water and empowerment, environmental protection and wastewater services. economic growth through a Sustainability Policy. This policy will guide all aspects of the Company’s Clark Water’ sustainability journey will continue business operations and the way it deals with its on as it expands to reach new heights in attaining stakeholders. its business objectives, stretching its reach to more customers and communities. Sustainable Following twelve years of successful management, Development Programs will still be developed Clark Water will continue to embody its clear and implemented, advancing them with learnings mission to help develop Clark as a world-class acquired from stakeholder inputs and more economic zone, underlining its strong commitment importantly the expertise of Manila Water on to economic, social and environmental practices, sustainability practices. Parallel with the parent achieving a vision of shared and long-term growth company’s triple bottomline efforts with its three with its stakeholders. 64 GRI INDEX

PROFILE ITEMS PAGE AND SECTION/SUBSECTION 1. STRATEGY AND ANALYSIS 1.1 Statement from the most senior decision Page 2 - Message from the President maker of the organization

2. ORGANIZATIONAL PROFILE 2.1 Name of the Organization Page 6 - Company Profile 2.2 Primary Brands, Products and/or Services Page 6 - Company Profile 2.3 Operational structure of the organization Page 8 - Organizational Structure 2.4 Location of Organization's Headquarters Back Cover 2.5 Countries/Areas of Operations Page 6 - Company Profile 2.6 Nature of Ownership and legal form Page 6 - Company Profile 2.7 Markets served Page 6 - Company Profile; Page 25 - Percentage of Service Connections and Consumption by Customer Type 2.8 Scale of the Reporting organization Page 6 - Company Profile; Page 21 - Economic Value Generated and Distributed 2.9 Significant changes during the reporting period Page 8 - Major Change in 2011 2.10 Awards received during the reporting period Page 6 - Brief History

3. REPORT PARAMETERS 3.1 Reporting Period Page 1 - About this Report 3.2 Date of most recent previous report Page 1 - About this Report 3.3 Reporting Cycle Page 1 - About this Report 3.4 Contact Point for questions regarding the report and Page 1 - About this Report its content 3.5 Process for defining report Page 1 - About this Report 3.6 Boundary of the Report Page 1 - About this Report 3.7 Specific limitations on the scope and boundary of the Page 1 - About this Report report 3.8 Basis for reporting on joint ventures / subsidiaries Page 1 - About this Report 3.10 Explanation of the effect of any re-statements of Page 1 - About this Report information provided in earlier reports, and the reasons for such re-statement 3.11 Significant changes from previous reporting periods Page 1 - About this Report in the scope, boundary, or measurement methods applied in the report 3.12 Table identifying the standard disclosures in Page 64 - GRI Index the report 3.13 Policy and current practice with regard to Page 1 - About this Report seeking external assurance for the report

4. GOVERNANCE, COMMITMENTS AND ENGAGEMENTS 4.1 Governance structure of the organization Page 8 - Organizational Structure 4.2 Chair of the highest governing body Page 8 - Organizational Structure 4.3 Members of the highest governance body Page 8 - Organizational Structure Clark Water 2012 Sustainability Report 65 4.4 Mechanisms for shareholders and employees to Page 13 - Clark Water’s Stakeholders; Page 32 -

provide recommendation and direction Human Resources Management MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES 4.8 Statement concerning missions and values Page 63 - Clark Water and the Future implemented internally 4.12 Externally developed economic, Page 13 - Clark Water’s Stakeholders; Page 26 - environmental and social standards Integrated Management System 4.13 Memberships in association and/or Page 6 - Brief History national/international advocacy organizations 4.14 List of stakeholder groups engaged by the Page 13 - Clark Water’s Stakeholders organization 4.15 Basis for identification and selection of stakeholders Page 13 - Clark Water’s Stakeholders with whom to engage 4.16 Approaches to stakeholder engagement Page 13 - Clark Water’s Stakeholders

MANAGEMENT APPROACH DISCLOSURES ASPECT PAGE AND SECTION Economic Page 16 - Driving Economic Growth Employees Page 30 - Empowering Employees Environment Page 40 - Preserving and Conserving Natural Resources; Page 48 - Mitigating Adverse Operational Impacts Social Page 56 - Contributing to Social Development of Communities ECONOMIC PERFORMANCE INDICATORS INDICATOR DESCRIPTION PAGE AND SECTION/SUBSECTION ECONOMIC PERFORMANCE EC1 Direct Economic Value Generated Page 21 - Economic Value Generated and Distributed MARKET PRESENCE EC7 Procedures for local hiring and proportion of senior Page 32 - Human Resources Management management hired from the local community at locations of significant operations EC8 Development and impact of infrastructure and Page 18 - CAPEX Investments for Long Term services provided primarily for public benefit through Planning commercial, in kind, or pro bono engagement ENVIRONMENTAL PERFORMANCE INDICATORS INDICATOR DESCRIPTION PAGE AND SECTION/SUBSECTION ENERGY EN5 Energy saved due to consideration and efficiency Page 29 - Water and Wastewater Operations improvements Optimization EN6 Initiatives to provide energy-efficient or renewable Page 54 - Sustainable Water Resources energy based products and services, and reductions Development in energy requirements as as a result of these initiatives EN7 Initiatives to reduce indirect energy consumption and Page 54 - Sustainable Water Resources reductions achieved Development BIODIVERSITY EN12 Description of significant impacts of activities, Page 42 - Assessment of Groundwater Resource products and services on biodiversity in protected areas of high biodiversity value outside protected areas 66 EN14 Strategies, current actions and future plans for man- Page 46 - Promoting Biodiversity; Page 52 - Service aging impacts on biodiversity Reliability; Page 58 - Accessible Water for All; Page 60 - Clark Water and the Community PRODUCTS AND SERVICES EN26 Initiatives to mitigate environmental Page 42 – Assessment of Groundwater Resource; impacts of products and services, and Page 46 - Promoting Biodiversity; Page 50 – extent of impact mitigation Hazardous Waste and Substances Management

SOCIETY PERFORMANCE INDICATORS INDICATOR DESCRIPTION PAGE AND SECTION/SUBSECTION SO1 Nature, scope and effectiveness of any programs Page 23 - Customer Satisfaction; Page 63 - Clark and practices that assess and manage the impacts Water and the Future of operations on communities, including entering, operating and exiting SO9 Operations with significant potential or actual Page 42 - Assessment of Groundwater Resource negative impacts on local communities SO10 Prevention and mitigation measures implemented Page 42 - Assessment of Groundwater Resource; in operations with significant potential or actual Page 52 - Service Reliability negative impacts on local communities LABOR PRACTICES AND DECENT WORK INDICATOR DESCRIPTION PAGE AND SECTION/SUBSECTION OCCUPATIONAL HEALTH AND SAFETY LA7 Rates of injury, occupational diseases, lost days and Page 36 - Managing Health and Safety absenteeism and number or work-related fatalities by region TRAINING AND EDUCATION LA10 Average hours of training per year per employee by Page 32 - Human Resources Management employee category

PRODUCT RESPONSIBILITY INDICATOR DESCRIPTION PAGE AND SECTION/SUBSECTION PRODUCT AND SERVICE LABELING PR5 Practices related to customer satisfaction, including Page 22 - Customer Care results of surveys measuring customer satisfaction

Report Application Level Report on: Report on all criteria 1.1 listed for Level C plus: Same as requirement G3 Profile 2.1-2.10 1.2 for Level B Disclosures 3.1-3.8, 3.10-3.12 3.9, 3.13 4.1-4.4, 4.14-4.15 4.5-4.13, 4.16-4.17

Management Approach Management Approach G3 Management Not Required Disclosures for each Indicator Disclosed for each Indicator Approach Disclosures Category Cate gory

Report on each core G3 and Report on a minimum of Report on a mimimum of Sector Supplement Indicator G3 Performance Indicators 20 Performance Indicators, 10 Performance Indicators, with due regard to the & Sector Supplement at least one from each: including at least one from Materiality Principle by either: Performance Indicators Economic, Environment, each: Economic, Social, and (a) reporting on the Indicator Human Rights, Labor, Society, Environment or (b) explaining the reason for Product Responsibility. the omission. Clark Water 2012 Sustainability Report 67 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

What makes hot air balloons fly? Science tells us that as gas burners heat up the air inside the balloon, it becomes lighter and less dense than the air around it, ultimately causing the whole balloon to rise. Very much like the burners that propel a hot air balloon upward, Clark Water regards its employees as its main drivers in thrusting the company to reach greater heights. In fact, throughout the years, this lean but highly committed workforce proved to be the most valuable asset of the company as it bravely takes on one challenge after another. Their unwavering dedication and resiliency carried on even through the toughest of times, slowly shaping them to become leaders who create opportunities for themselves instead of someone who simply waits for it to pass by. Just as water is constantly flowing, we at Clark Water are continuously searching, moving, flying…

And we do not land until we reach our destination. 68 Stakeholders’ Commentaries

FRANCO ALEJO L. MADLANGBAYAN Vice President for Operations Clark Development Corporation

Life emanated from water, from the Ganges, millions of years past, water continuously flowed, giving life to everything it touches on its path and into the vast oceans life subtly crawled, evolved and progressed until today.

To the people of Clark Water, you have for so many years sustained a crucial and basic necessity in the whole of the Freeport Zone, the safe and quality water every employee and household drinks, to the uninterrupted voluminous amount of water that runs each and every industry, your Corporation takes on all the daily cudgels for all the water requirement and yet leads.

Because of your dedicated and professional leadership and untiring staff,

LIFE flows in CLARK!

I believe that beyond business, Clark Water is a MISSION itself.

Congratulations, Clark Water, on your first ever Sustainable Development Report!

MARIZA O. MANDOCDOC Officer-in-Charge Business Development and Business Enhancement Group Clark Development Corporation

Clark Water Corporation is one of the vital partners of the Clark Development Corporation in developing the Clark Freeport Zone. This strong partnership has been a major contributing factor that brought the Freeport to where it is now. While providing water and sewerage utility services of the highest quality to all locator companies, business entities and residents in Clark is considered a tough challenge, the strong commitment and dedication of Clark Water Corporation, coupled with the enthusiasm it puts towards achieving total quality service make this challenge seem like an easy task. Clark Water Corporation only knows too well how to keep the good balance between rapid development and the needed environmental protection in Clark. This Sustainability Report is a testament to this remarkable effort.

Our most sincere congratulations for a job well done! Clark Water 2012 Sustainability Report 69 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

RENE PHILIP H. BANZON President Clark Investors and Locators Association (CILA)

Kudos to the management and staff of Clark Water Corporation for their dedication and commitment in aiming for Sustainable Development. The company’s first ever public report following the Global Reporting Initiative (GRI) G3.1 on the subject matter only shows how Clark Water Corporation is ready to be at par with the rest of the world in its services. What better way to lead and show the rest of Clark how their theme of “Driving Growth” can actually lead to economic growth for all and even combine this with social and environmental responsibility.

For any business to begin and continuously operate efficiently, the basic utilities and services are a must. But for a fast-growing Freeport Zone with a centrally-located future gateway in the Clark International Airport, these utilities and basic services must be world-class. Not to mention the fact that Clark is beaming with an increasing number of both foreign and local investors expecting only an international standard of service. Clark Water Corporation realizing this has embedded sustainable development practices in its operations since it started 12 years ago and has never looked back. Their triple ISO certification in 2005 for Quality Management System, Environmental Management System, and Safety and Health Management System is indeed commendable. It sets a high standard raising the bar hopefully for all locators to follow. It proves how they strive for continuous improvement all for the satisfaction of the stakeholders and the community in general.

ESTER G. MANGALINO Employee Representative Clark Water Corporation

I am very proud that throughout the years of our operation, Clark Water has maintained a harmonious working environment for its employees. This harmony made our efforts more meaningful and enjoyable. We have considered our workplace a home away from home, where everyone is family and we propelled forward with each other’s strengths as well as weaknesses.

This Sustainability Report well exemplified how working with Clark Water became a great opportunity for all of us. The company has provided us with the necessary trainings to continuously improve our skills and potentials, and strengthened each employee’s capability. CWC also ensured that we are guided by the highest level of safety and health standards in performing our responsibilities.

We are thankful to CWC management for being supportive, sensitive and considerate with the concerns and issues raised during our monthly general assemblies. Their leadership serves as an inspiration for all of us to be productive and proactive amidst the challenges that we face in Clark Water’s drive for excellence.

We are challenged everyday to be the best employee that we can be. We strive to make our company proud. I am confident that the fruits of hard work and determination will provide us with more blessings to further grow and prosper.

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CARMELA Q. CAPULE President Environmental Practitioners Association (EPA) Clark Freeport Zone

Environmental Practitioners Association, Inc. (EPA) would like to congratulate Clark Water Corporation (CWC) for its exemplary performance and for coming up with its 2012 Sustainability Report, demonstrating its strong commitment to environmental sustainability, economic growth and development. CWC’s significant achievements, recognitions, various programs and wide range of investments are remarkable indeed for effective green business growth and a sustainable future.

Since the start of its concession with Vivendi Water Philippines and Clark Development Corporation in 2000, CWC showed great initiatives so as to fulfil its role in financing, rehabilitating, maintaining and managing the existing and new water and wastewater facilities to service its customer base in the Clark Freeport Zone and Clark Special Economic Zone. Its continuous efforts and strategic ingenuities continued when it was acquired in 2011 by Manila Water Company Inc. (MWCI). We commend CWC for its endeavours and unsolicited commitment to reduce indirect and direct environmental impacts of doing its business while providing and maintaining high quality service to customers. Infrastructure expansions, studies and assessment on groundwater resources for water viability to address long term groundwater scarcities are valuable CWC undertakings.

CWC is an active member of EPA whose practitioners share the common vision, mission and thrust in advocating and fostering environmental protection, conservation and sustainable development. CWC actively participates and supports EPA’s environmental programs and activities. EPA will be proud to showcase CWC’s accomplishments, sustainable green business and its best environmental practices among its company members.

We wish Clark Water Corporation success in meeting more milestones toward sustainable development and long term business growth.

NATHANIEL M. LAPIDA Assistant Vice President-Sales & Marketing Moldex Products

The Clark Water Corporation sustainability report outlines its commitment to social responsibility, environmental sustainability and economic growth and development not only within its service area but also on the communities around and stakeholders involved.

The report covers the basic road map of Clark Water Corporation from its various operations, to the important role of its stakeholders, its long term goals and its basic vision of water for all.

Furthermore, in achieving the sustainability development performance and plans and efforts towards greening the supply chain is expected to be achieved. This means that the supplier of basic materials in the delivery of water and wastewater services should integrate into the management systems (ISO 14001:2004, ISO 9001-2008, and OHSAS 18001:2007) that Clark Water Corporation have achieved. Clark Water 2012 Sustainability Report 71 MESSAGES | COMPANY PROFILE | SUSTAINABILITY FRAMEWORK | GRI INDEX COMMENTARIES

WILMER S. FACUNDO President Clark Safety and Health Organization (CSHO)

Water, itself, is life because it sustains life. How it happens or the process it undergoes, depends on the hands of some agents who want to take part in the mission. It is where Clark Water Corporation (CWC) takes center stage.

First and foremost, it is noteworthy to acknowledge the active participation of CWC in Occupational Safety and Health Program by being a member of Clark Safety and Health Organization (CSHO) and of other similar safety organizations. It promotes awareness in safety and health by sending its company’s first aider on Basic Life Support and Adult CPR, moreover on Safety Summit and National Occupational Safety and Health Congress. It also conducts emergency preparedness and response drill and annual physical examination to its workers and its triple ISO Certifications (ISO 9001, ISO 14001 & OHSAS 18001) as evident compliance to international standards on quality, environment, health and safety management systems. Other than it is requirement for a company like CWC, meeting the standards alone in order to get the certificates is a tedious, tough, meticulous and continuous process. In connection, DOLE awarded CWC the recognition of achieving “No Lost Time and other Work Related Injuries” for 2010. Undoubtedly, CWC is meeting the standards.

CWC worthwhile initiatives to enhance further its sustainability framework by stretching to almost all aspects like social responsibility, environmental sustainability, and economic growth and development program is a clear manifestation of authentic service to its stakeholders, customers/clients and employees.

Truly, the validation of the company’s genuine service and commitment lies heavily on how its clients evaluate its efforts. That is, if it has made a positive mark or impact in the market world through a relay of affirmation and satisfaction by its customers on the provision and supply of world-class water and waste water services. There is no question on this as your report declares loudly.

Lastly, the inspiration you continuously give yourselves and your people in the workplace focusing on the values of environmental and social consciousness while performing economic responsibilities is also a way of life, a “walk the talk” strategy to sustain the company’s life not only that of the others.

So congratulations to your programs and may you keep on achieving your goals for excellence and sustainability. 72 CWC Sustainable Development Report Team

CONTENT Dante V. Aguas (Team Lead) Giovanni G. Ocampo Victor Angelo L. Rivera Mila S. Argillo Mark Vin A. Sibug

EDITORIAL Precius S. David (Team Lead) Christian Byron M. Villamor Aileen S. Baluyot Marco C. Añasco Abegail Mae F. Tan

TECHNICAL Herwin P. Gutierrez (Team Lead) Ann Lohraine L. Santos Al-Shaimah A. Alonto Joselito P. Teopaco ACKNOWLEDGEMENTS : K2 Interactive (Asia), Inc. Primex Printers, Inc.

The Clark Water 2012 Sustainability Report cover is printed on FSC-certified Mohawk Options,The which Manila is made Water with100% 2012 post-consumer Sustainability waste. Report 100% cover is printed on of the electricity usedFSC-certi ed to manufacture Mohawk the paper Options, is offset whichwith Renewable is made with100% Energy Certicatespost-consumer (RECs) from nonpolluting waste. 100% wind of power the electricityprojects. The used to manufacture the inside pages of this report are printed on woodfree paper produced with paper is oset with Renewable Energy Certi cates (RECs) from pulps from PEFC certified (Programme for the Endorsement of Forest Certification)nonpolluting sourced wind frompower sustainably-managed projects. The inside forest. pages of this report are printed on woodfree paper produced with pulps from PEFC certi ed (Programme for the Endorsement of Forest Certi cation) sourced from sustainably-managed forest.