Empowering Sustainable Communities 2019 SUSTAINABILITY REPORT About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Contents About this Report

1 About this Report This is the fourth sustainability report for Metro We welcome feedback on this report and any matter 2 Leadership Message Pacific Investments Corporation (“MPIC”, “the concerning the sustainability performance of our 8 Company Profile / Key Metrics / Mission, Vision and Values Company” or “the Parent Company”) containing business. Please contact us at: information about our environmental, social and 9 Core Assets – Simplified Ownership Structure governance (“ESG” or “Sustainability”) impacts for Metro Pacific Investments Corporation 10 Contributions to Nation-Building the year ending December 2019. Investor Relations 14 Part One : Governance 10/F MGO Building, Legaspi corner Dela Rosa Streets, 15 Value Creation This report should be read in conjunction with Makati City, 0721, Philippines 19 Responsibility for ESG our SEC Form 17A and our 2019 Information +63 2 8888 0888 21 Economic Performance Statement. In line with our commitment to [email protected] 24 Investment Selection and Portfolio Management transparency and accountability, we have prepared this report in accordance with the Global 26 MPIC and the Sustainable Development Goals Reporting Initiative (“GRI”) Standards: Core 29 Part Two : Sustainability Impacts Option. DNV GL has provided an independent 30 Boundary of ESG Performance assurance statement for our sustainability / 31 Operational Efficiency non-financial disclosures. 49 Service Excellence 60 Engaged Employees and Safe Workplaces The 2018 Sustainability Report was published on 27 May 2019 and is also available for download from the 75 Social Responsibility corporate website. 90 Part Three : ESG Reporting Methodology 91 ESG Reporting Methodology HIGHLIGHTS FOR 2019 94 Annex Recognition of leadership in Sustainability Reporting 95 ESG Data Summary In 2019, we received several awards for our previous sustainability reports: 99 Integrated Management System Certifications • The Asset ESG Gold Award for Excellence in Environmental, Social and Governance • Philippine Quill Awards for the 2017 Digital Sustainability Report 102 GRI Content Index • Sustainable Business Award – Special Recognition for Stakeholder Engagement and Materiality 106 Independent Assurance Statement 1 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Leadership Message

TO OUR FELLOW STAKEHOLDERS,

We are living in an era of marked progress yet rising uncertainty. Although considerable progress has been made in attaining the targets outlined in the United Nations 2019 Sustainable Development Goals (“SDG”) Report1, enormous challenges remain. The report reveals that on current trends our region may not only fail to achieve any of the UN’s seventeen SDGs by 2030, we are also at risk of regression on several important development indicators, including clean water and sanitation (SDG 6), and decent work and economic growth (SDG 8).

Some areas of concern cited in the report include the need to: fortify energy efficiency —along with increasing energy access and affordability— as a means to reduce greenhouse gas emissions (SDG 7); intensify electrification efforts to reach those who are displaced or living in remote, hard-to-reach communities (SDG 7 and 11); develop resilient infrastructure to promote inclusive and sustainable industrialization (SDG 9); improve access to water and sanitation services with higher water use efficiency and increased wastewater treatment (SDG 6); develop convenient public transport as a catalyst for economic growth and social inclusion (SDG 11); and additionally, to strengthen health care for all (SDG 3). Progress in these basic services are essential for a community to be sustainable.

MANUEL V. PANGILINAN JOSE MA. K. LIM DAVID J. NICOL Chairman of the Board President and Chief Executive Vice President of Directors Executive Officer and Chief Financial Officer

2 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Leadership Message

EMPOWERING SUSTAINABLE COMMUNITIES – AT THE HEART OF MPIC’S for fair and transparent price increases in order to recover the significant capital costs required BUSINESSES for the development and maintenance of high-quality infrastructure. However, just as the We at Metro Pacific Investments Corporation (“MPIC” or “the Company”) desire to be a driver for physical infrastructure in which we invest is underdeveloped, so, occasionally, are the political sustainable development. Our operating companies make a difference to the lives of millions and economic institutions that support them. In our water, toll roads and light rail businesses, of Filipinos every day – powering commerce and households, delivering clean and safe water, for example, regulators have in the past been reluctant to approve various tariff adjustments. connecting people and places, and making world-class standards of healthcare available We have worked our way through some of these issues with the current administration and to all. Our continued investments in operating efficiency and service excellence reflect our have been pleased with the partial implementation of tariffs, thus far. But recent events commitment to empowering our communities toward becoming sustainable. following our continued expansion in our overall service coverage and attempted constructive engagement on residual tariff issues have, however, placed these operating companies at the On our fourth year of reporting, we wish to give emphasis to the two main areas which we forefront of government and public scrutiny once more. consider as challenges to the sustainability of our Company: governance, with regards to reliance on a stable regulatory environment; and climate change. Maynilad Water Services, Inc.’s (“Maynilad”) concession agreement, is being reviewed by the Government, which has advised us to expect the revised contract with inputs from Asian GOVERNANCE: RELIANCE ON A STABLE REGULATORY ENVIRONMENT Development Bank. As of this writing, we await further clarity but for now have assumed the In evaluating our investment prospects, MPIC seeks to add value for customers and following at Maynilad: no new debt shall be drawn; no tariff increases shall be implemented communities by improving the quality of infrastructure assets, enhancing the efficiency in the near term; and capital expenditure will be focused in completing existing projects. with which they are run, extending their coverage to more people and working closely with Consequently, we also assume that Maynilad will be unable to pay dividends in the foreseeable regulators to achieve shared goals. future and MPIC will need to recast its capital expenditure program.

With life cycles of 20 years or more, our infrastructure projects are by their very nature long- In these circumstances, questions have been raised regarding investment in Philippine- term. This means that our investments are intended to survive many political and economic regulated infrastructure and the sources of capital to support this. There are no quick or easy cycles, and in managing our assets we expect to experience various regulatory and funding answers to these questions but the current model of a listed infrastructure business with a challenges from time to time. wide pool of dedicated Philippine and foreign shareholders putting their faith in these long- term contracts needs serious review. We remain cooperative with Government and believe For our business to be sustainable, we need to be able to apply a certain degree of reliance on that a mutually beneficial outcome can be achieved that will allow us to continue serving the the regulatory environment we operate in. Our franchise and concession agreements provide public together as partners.

3 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Leadership Message

CLIMATE CHANGE TOTAL PRIMARY ENERGY SUPPLY BY FUEL TYPE – BUSINESS AS USUAL VS CLEAN Globally, it is no surprise to note that the most urgent area for action is climate change. The UN ENERGY SCENARIO4 2019 SDG Report1 stresses that the compounded effects of climate change will be catastrophic and irreversible: increasing ocean acidification, coastal erosion, extreme weather conditions, the frequency and severity of natural disasters, continuing land degradation, loss of vital species and the collapse of ecosystems. Risk areas that are most relevant to our Company include rising greenhouse gas emissions and exacerbating disaster risk.

RISING GREENHOUSE GAS EMISSIONS (“GHG”) Highlighted in an article from the Forbes Magazine2, globally, there has been a 20% drop in newly commissioned coal power capacity since 2017, a 24% drop in pre-construction activity and a 39% fall in new construction starts. Since 2015, the number of newly-completed coal power plants fell 53% while the number of new construction starts plunged 84%. According to a report3 from the Global Energy Monitor, Greenpeace India and the Sierra Club published in March 2019, this is the reason why for the third straight year in a row, in 2018, the number of coal-fired power plants under development across the world fell sharply.

This situation does not apply in the Philippines however, where energy security remains a major threat. Data from the Department of Energy showed that coal power provides the Under the Electric Power Industry Reform Act of 2001, a distribution utility like Manila Electric single-biggest source of electricity for the country at 52%. Oil-based and coal power sources Company (“MERALCO”) has the obligation to supply electricity in the least cost manner to its are expected to continue to dominate the supply mix to cater to baseload requirements. As captive market, subject to the collection of retail rate duly approved by the Energy Regulatory a result, even in the DOE’s “Clean Energy Scenario” in its Philippine Energy Plan4 from 2017 Commission. Operating under this mandate, in 2019, MERALCO commissioned its 500 to 2040, total coal supply is expected to rise by 5% annually, giving rise to increasing GHG megawatt (“MW”) San Buenaventura Power Limited Co. (“SBPL”) Supercritical Coal-Fired Power emissions in the country. Building and operating coal-fired plants is still seen as the most cost- Plant in Mauban, Quezon. Although SBPL is the first in the Philippines to use high efficiency, effective way to address the Philippines’ growing energy needs. low emission technology and the most advanced operating coal-fired power plant in the

1 The Sustainable Development Goals Report 2019. United Nations. 2 Report: New Coal Power Projects Are In Decline Across The World. McCarthy, Niall, Forbes Magazine. March 2019 3 Boom and Bust 2019 Tracking the Global Coal Plant Pipeline. Global Energy Monitor, Greenpeace Environmental Trust, and Sierra Club. March 2019. 4 Philippine Energy Plan: Energy Demand and Supply Outlook 2017-2040, Department of Energy. 4 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Leadership Message country, it was still the primary reason why aggregate carbon emissions from MPIC’s portfolio 50 MW Solar Power Plant in San Miguel, Bulacan under PowerSource First Bulacan Solar, companies increased faster than system-wide revenues year-over-year. Inc. which is targeted to be completed by the end of 2020.

100% Aggregate 2019 2018 % Change Global Business Power Corporation (“GBP”), our power generation arm in the Visayas, will also be investing in renewable energy projects that would complement its existing portfolio. As Aggregate Carbon Emissions 7,978,356 6,878,000 16.0% part of its commitment to deliver sustainable energy solutions to its customers, it is looking at a System-wide Revenues in P millions 424,490 405,699 4.6% 500 MW pumped storage hydro power plant and an 80 MW solar power plant, among others. Carbon Intensity 18.80 16.95 10.9% GBP has a total gross capacity of 854 MW, mostly utilizing a clean coal combustion platform called Circulating Fluidized Bed (“CFB”) Boiler Technology to minimize emissions.

We are mindful of this and have begun intensifying our efforts to reverse this trend through The GBP Institute for Energy (“GIE”) – a state-of-the-art learning facility established by GBP to various renewable energy initiatives across the MPIC group. At the MPIC Parent Company, promote energy efficiency through technical education and better understanding of clean we are exploring opportunities to convert waste into energy. This includes the Surallah and coal technology – produces part of its own power requirements through the 240 solar panels Polomok waste-to-energy biogas plants that we are in the process of developing for Dole installed on the building which can produce up to 66 kilowatts of electricity. Maynilad has also Philippines. We are also awaiting Notice of Award to build the Quezon City Solid Waste integrated solar panels for on-site renewable energy in its Safety Center while North Luzon Management Facility that could convert up to 3,000 metric tons a day of municipal waste Expressway has rolled-out solar power systems on major toll plazas; streetlights, emergency into electricity. callboxes and some CCTVs. Further transition to the use of solar panels is being considered across the MPIC group’s facilities as a means to offset some of the portfolio’s carbon footprint. In 2019, MGEN Renewable Energy, Inc. (“MGreen”) was established to serve as MERALCO’s subsidiary for its renewable energy (“RE”) investments. MGreen intends to be a key player EXACERBATING DISASTER RISK in this expanding sector and is determined to develop 1,000 MW of RE projects over the The UN SDG 2019 Report1 also states that from 1998 to 2017, climate-related disasters next five to seven years. The focus will be on the development of a portfolio of utility around the world accounted for 77% of the nearly US $3 trillion in direct economic losses scale solar, wind and hydro power projects to supply Luzon grid and electricity consumers from disasters. Undoubtably, increasing disaster risk is of significant concern to our portfolio while maintaining competitive tariffs. MERALCO has initially earmarked equity funding of companies because the services we provide are deemed essential to the daily lives of our P424 million for approximately 210 MW of solar projects to be undertaken by MGreen with customers. Throughout our business, we adopt a precautionary approach to implementing various partners. MGreen also recently began construction of its first project, a P4.3 billion cost-effective measures to manage and mitigate environmental and disaster risks in

5 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Leadership Message accordance with our long-term business objectives. Subject to the cost considerations an intensive system audit by the WSP Review Committee composed of members from the reflected in relevant concession and franchise agreements, our operating companies have DOH, Metropolitan Waterworks and Sewerage System-Regulatory Office, National Water business interruption and environmental risk insurance in place to mitigate the risks of Resources Board, and members of the academe and water industry. Maynilad is a pioneer destruction to life and property. We are also continuously reviewing and enhancing our in the development of WSPs in the country, with its WSP being adopted by the World business continuity processes, disaster recovery programs and crisis management capabilities. Health Organization as a model for over 30 countries in the Western Pacific Region, and by the DOH as a reference for over 120 local water districts in the Philippines. Lauded by Notable initiatives include MERALCO’s disaster resiliency programs that are aimed to strengthen Australian Agency for International Development and the World Bank as one of the most or relocate facilities such as sub-stations, sub-transmission and distribution lines – those which comprehensive WSPs in the world, Maynilad’s WSP was previously honored by the World are most susceptible to damage during heavy storms, typhoons and earthquakes. They have Health Organization and the International Water Association as an excellent case study in also reinforced their Alert and State of Emergency Procedures to ensure prompt restoration providing safe drinking water by a water service provider to its customers. of services in disaster-affected areas. This was evident in 2019 with the immediate power restoration for customers affected by sustained interruptions caused by Typhoon “Tisoy” RESPONDING TO THE GLOBAL CALL FOR ACTION (“Kanmuri”). MERALCO also assisted other power distributors in the aftermath of Tisoy as well as Across the MPIC group, we recognize that there is much that can still be done to respond to the Taal volcano eruption at the start of 2020. the global call for action. We are pleased to share with you some of our efforts to mitigate the impacts of climate change; enhance water security; and reduce waste. Through the GBP GIE, plant operators have the opportunity to use a specialized CFB simulator to study and practice different responses to real life operational situations including In October 2019, we opened the first 10.7 kilometers (“km”) of the Cavite Laguna Expressway emergencies that require critical decision-making to harness their technical expertise and (“CALAX”) utilizing Automatic License Plate Recognition (“ALPR”) technology. ALPR is being preparedness during operational and maintenance contingencies. used as a tool to capture vehicle plate numbers as they enter the expressway. Upon exit, the entry points are verified and the amount to be collected is determined. The use of Maynilad was recently recognized by the Department of Health’s Metro Manila Center this technology also allows for the implementation of a barrierless single-lane entry (free for Health and Development for its Water Safety Plan (“WSP”). The Maynilad WSP details flow) toll collection system. Not only does this reduce queuing times in toll plazas, it also programs and procedures that will ensure the safety of water supplied to customers, lessens the use of paper tickets. It is estimated that free flow entries can cater to 1,000 and corrective actions in case of water contamination. It outlines processes for hazard vehicle entries per hour versus only 300 – 400 vehicle entries for those with barriers. Upon analysis, risks assessment and various control measures to contain and mitigate water full implementation across the entire 45 km length of the CALAX, approximately 15,330 contamination brought by disasters such as landslides, and security threats such as terrorist kilograms (“kg”) of carbon dioxide emissions and over 1,000 kg of solid waste can be avoided sabotage, among others. Our water company received the recognition after undergoing each year.

6 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Leadership Message

Maynilad continues to invest heavily in its non-revenue water reduction program which has against ESG risks by providing oversight on planning and strategizing of short and long- resulted in the recovery of approximately 979 million liters per day of water since 2008 through term goals. We are continually talking with and learning from our stakeholders so that we are leak repairs and pipe replacement. This recovered volume is enough to fill up roughly 390 well positioned to anticipate and react to economic, social, environmental, and regulatory olympic-size pools every day, and supply about 1.7 million households with potable water. changes as they arise. This additional supply has gone a long way in supporting our drive to expand services to previously unserved areas. OUR CONTINUING COMMITMENT TO TRANSPARENCY We invite you to learn more about MPIC’s management approaches to ESG in this report. In the Philippines, we are concerned about the rising effects of population growth on overuse We disclose key performance indicators that help us quantify and evaluate our impacts in of our natural resources. Solid waste, in particular single-use plastics (“SUP”), is an intractable these areas because leadership comes from managing what we measure. As you read on, we problem for many local communities; choking up our nation’s stunning coastlines and life- hope that you will be inspired to join us in taking the urgent need for sustainable solutions to giving waterways among other harmful impacts. In response to increasing public concern heart, and partner with us to play a significant role in empowering sustainable communities. as well as new regulations, a progressive ban on consumption of SUP was introduced in our facilities and operations. MERALCO is leading the way with eradication of SUP, including Thank you for your continued support. straws, food utensils, beverage bottles, grocery bags and other containers. Several operating companies, such as NLEX Corp., Light Rail Manila Corporation and some hospitals have also eliminated SUP from their canteens. We are working closely with employees, suppliers and customers to strike the right balance between making a meaningful difference on reducing plastic pollution without compromising the quality of our services. MANUEL V. PANGILINAN JOSE MA. K. LIM DAVID J. NICOL FUTURE-PROOFING OUR BUSINESSES Chairman President and Executive Vice President At MPIC, our vision for sustainable business growth is focused on creating value for all of the Board of Directors Chief Executive Officer and Chief Financial Officer stakeholders, including employees, shareholders, supply chains, civil society, and the planet by identifying and addressing Environmental, Social and Governance (“ESG”) challenges. Our Board has the fundamental responsibility to ensure that the Company is future-proofed

1 The Sustainable Development Goals Report 2019. United Nations. 2 Report: New Coal Power Projects Are In Decline Across The World. McCarthy, Niall, Forbes Magazine. March 2019 3 Boom and Bust 2019 Tracking the Global Coal Plant Pipeline. Global Energy Monitor, Greenpeace Environmental Trust, and Sierra Club. March 2019. 4 Philippine Energy Plan: Energy Demand and Supply Outlook 2017-2040, Department of Energy. 7 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Company Profile Key Metrics Mission, Vision and Values

MPIC is a Philippine-based, publicly listed investment management and Number of employees: OUR MISSION holding company registered with the Philippine Securities Exchange Parent Company: 56 We are the leading Philippine infrastructure investment firm. We manage, Commission (“SEC”). We are a leading infrastructure holding company MPIC Group: +27,000 transform and grow our companies while continuously seeking investment with a diverse set of assets held through our operating companies. (through subsidiaries and opportunities to create long-term value for our shareholders. Through acquisitions and strategic partnerships, we seek to create value associates managed by upgrading infrastructure, improving operational efficiency, increasing by MPIC) OUR VISION customer coverage and working closely with regulators and other partners We have a stellar portfolio of infrastructure assets, each being the dominant in government. player in its field. We are admired globally for excellence in investing in and System wide net sales: transforming infrastructure. We attract, retain and develop world-class talent. Location of headquarters: Makati, Philippines P424.5 billion (including revenues of associates, Through our companies and Foundation, we significantly contribute to the Location of operations: Predominantly in the Philippines; (some the largest of which is MERALCO) subsidiaries have operations in Thailand, Indonesia and Vietnam but these economic development of the Philippines and thereby uplift the quality of life have been excluded from this report due to lack of operational control) of every Filipino. Total capitalization: Date of incorporation: 20 March 2006 P109.9 billion OUR VALUES as of 31 December 2019 Ownership and legal form: Publicly listed company with common shares Teamwork and Empowerment of stock listed in and traded through the Philippine Stock Exchange We recognize the diverse strength and abilities within the team. MPIC Parent Company gearing ratio: We enable and inspire people to achieve superior results. Metro Pacific Holdings, Inc. (“MPHI”), a Philippine corporation, owns 41.9% 61.3% of total issued common shares in MPIC. As sole holder of the voting Class Integrity and Transparency A Preferred Shares, MPHI’s combined voting interest is estimated at 55.0%. We adhere to the highest ethical and corporate governance standards. MPHI’s stockholders are Enterprise Investment Holdings, Inc. (“EIH”) (60.0%), Intalink B.V. (26.7%) and First Pacific International Limited (13.3%). First Pacific Entrepreneurship Company Limited, a company incorporated in Bermuda and listed in Hong We innovate, take risks, act quickly and decisively, and are customer focused. Kong, holds 40.0% equity interest in EIH. Financial Discipline and Accountability Core businesses: Investment management with investments in power We employ rigorous financial analysis to arrive at sound business decisions. distribution and generation, toll road operations, water treatment and We are results driven and meet our commitments. distribution, healthcare operations, light rail, logistics and other services 8 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Core Assets - Simplified Ownership Structure

Others

45.5% 62.4% 20% Power Healthcare

Philippine Tollroads 75.1% to 100% 99.9% Regional Investments (Thailand, Vietnam, Indonesia) 55% Toll Roads 29.5% to 76% Light Rail

52.8% 100% 100% Water Logistics

For more information about… • MPIC’s associates and subsidiaries: Notes 10 and 39 of the Audited Consolidated Financial Statements and schedule V of MPIC’s 2019 Annual Report. Available on the PSE edge website or our own corporate website 9 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Contributions to Nation-Building Greater Manila Central Luzon This map identifies the locations of our major assets and operations in the Philippines, providing an overview of the markets we serve. Please note that not all the facilities in this map are included in the boundary of this report. Please refer to Part THREE: Report Luzon H4 Scope and Topic Boundaries for more information. W2 R1 T2 2019 Key Performance Indicators H11 H9 H18 H7 H5 Central Luzon P1 POWER H2 H8 W8 H17 T1 H6 Greater Manila W7 H3 million GWh GWh H19 P2 30 46,871 3,851 H21 H15 W6 T3 MERALCO estimated MERALCO energy sales GBP energy sales H20 population served T4 T5 TOLL ROADS W3 P7 H1 283,296 70,551 181,656 NLEX average daily vehicles SCTEX average daily vehicles CAVITEX average daily vehicles Visayas W1 P6 W4 WATER P4 H13 P3 9.7million 535 MCM 727MCM P5 Estimated population served Volume of water billed Volume of water supplied H16 Mindanao HEALTHCARE W5 3,235 3.7million 201,131 Total beds available Number of out-patients Number of in-patients H10 H14

LIGHT RAIL H12 P8 446,943 178,417 161,346,440 Average daily ridership Total passenger trips Total number of riders 10 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

POWER Manila Electric Company (“MERALCO”) is the largest electricity distribution company in the Philippines with a Central Luzon franchise area of 9,685 square kilometers (“km2”) encompassing 37 cities and 74 municipalities, including Metro Manila, all of the provinces of Rizal, Cavite and Bulacan, and parts of the provinces of Pampanga, Batangas, Laguna and Quezon. In September 2019, MERALCO’s San Buenaventura super critical coal-fired power plant started operations.

P1 MERALCO Franchise Area P2 San Buenaventura Power Limited Luzon 500 Megawatts (“MW”) gross Global Business Power Corporation (“GBP”) is a leading energy company in the Visayas and Mindoro Island. Its T2 power generation portfolio consists of 11 operational power plants with 854 MW aggregate capacity. Central Luzon P1

T1 P3 Cebu Energy Development Corporation P6 Panay Power Corporation (“PPC”) (246 MW) PPC 1 & 2 (92 MW) PPC 3 (7.5 MW) P2 T3 P4 Panay Energy Development Corporation PPC 4 (5 MW) T4 (“PEDC”) T5 PEDC 1 & 2 (164 MW) P7 GBH Power Resources Inc. (7.5 MW) PEDC 3 (150 MW) P7

P5 Toledo Power Co. (“TPC”) P8 Sarangani Energy Corporation Phase I TPC Sangi (60 MW) and II (237 MW) – owned through Alsons TPC 1A (82 MW) Thermal Energy Corporation TPC Carmen (40 MW) Visayas P6 P4 P3

TOLL ROADS P5 Metro Pacific Tollways Corporation (“MPTC”) operates and maintains 223 km of expressway across major domestic toll road systems with a further 62 km under development in the Philippines. Mindanao It also has toll road investments in Thailand, Vietnam and Indonesia.

T1 North Luzon Expressway (104 km) T4 CAVITEX C5 Link Expressway (first 2 km)

T2 Subic-Clark-Tarlac Expressway (“SCTEX”) (94 km) T5 Cavite Laguna Expressway (“CALAX”) (first 11 km)

T3 Cavite Expressway (“CAVITEX”) (14 km) P8

11 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

WATER HEALTHCARE Maynilad Water Services Inc. (“Maynilad”) Metro Pacific Hospital Holdings Inc. (“MPHHI”) is the largest hospital is the clean water and wastewater services Greater Manila operator in the Philippines with a portfolio of 16 hospitals nationwide. It provider for the West Zone of Greater Metro also operates a network of primary care clinics and cancer centers among Manila. Its concession area covers 540 square other investments in allied healthcare services. km encompassing 17 cities and municipalities. Luzon H1 Asian Hospital & Medical Center H9 Marikina Valley Medical Center W1 Maynilad Concession Area W2 R1 H2 Cardinal Santos Medical Center H10 Davao Doctors Hospital H11 H9 W2 La Mesa Treatment Plant 1 & 2 H18 H7 H4 H3 Makati Medical Center H11 Dr. Jesus C. Delgado Memorial Hospital H2 H5 H8 H17 W3 Putatan Treatment Plant 1 & 2 W8 H4 Central Luzon Doctors Hospital (“CLDH”) H12 St. Elizabeth Hospital (“SEHI”) H6 Greater Manila W7 H3 H19 H5 H13 Metro Pac Water Investments Corporation H21 H15 W6 Sacred Heart Hospital Riverside Medical Center (“RMCI”) (“MPW”) focuses on water projects outside of H20 H6 Our Lady of Lourdes Hospital H14 West Metro Medical Center Metro Manila. It also has investments in water projects in Vietnam. W3 H7 De Los Santos Medical Center H15 Los Baños Doctors Hospital & Medical Center H1 W4 Metro Iloilo Bulk Water H8 Manila Doctors Hospital H16 Manuel J. Santos Hospital W5 Cagayan de Oro Bulk Water Visayas Primary Care Center Cancer Centers W6 W1 H17 Megaclinic H4 Metro CLDH Laguna Full Concession W4 H13 H18 Tophealth H12 Metro SEHI W7 Eco-System Technologies H19 Keralty Metlive Metro Radlinks Network H13 Metro RMCI LIGHT RAIL H16 Light Rail Manila Corporation (“LRMC”) has a 35-year Mindanao H20 Lipa Medix concession to operate and maintain the 20.7 km LRT-1 in W5 H14 West Metro Metro Manila with 20 stations. H21 Calamba Construction is ongoing for an additional 11.7 km which H10 will add eight new stations. H14

R1 LRT-1 H12

12 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

HIGHLIGHTS FOR 2019 Accolades for MPTC as a leader in its field MPTC has been named “2019 Project Sponsor of the Year” by Hong Kong-based “The Asset Magazine” in the transport sector, institutional awards category. ASEAN country category awards were handed out to the following MPTC-sponsored deals: • “PPP Deal of the Year” – Cavite Laguna Expressway • “Transport Deal of the Year” – Cebu Cordova Link Expressway • “Transport Deal of the Year-Highly Commended”- Cavite HIGHLIGHTS FOR 2019 Expressway LRMC breaks ground on LRT-1 Extension LRMC started construction of the 11.7 km LRT-1 MPTC also received the “2019 ASEAN Business Award for Priority Cavite Extension which will link Pasay and the Integration Sector: Infrastructure” in the Large Tier category. rest of Metro Manila to Cavite and dramatically Other major domestic projects recently completed by MPTC shorten travel time. Phase 1, involving five include: stations from Pasay City to Parañaque City, is • NLEX Harbour Link Segment 10 (opened in February 2019) expected to be completed in 2023. The full • CAVITEX C5 Link Expressway (first 2.2 km subsection opened in extension will add a total of eight stations to July 2019) HIGHLIGHTS FOR 2019 LRT-1 and cut travel time between Baclaran and • CAVITEX R-1 Enhancement projects MERALCO’s MGEN Renewable Energy, Inc. Bacoor from one hour and ten minutes to 25 • CALAX (first 10.7 km opened in October 2019) (“MGreen”) begins construction of 50 MW minutes. Solar Power Plant “With all this investment, we are hoping to raise the level Construction started on PowerSource First In anticipation of even greater foot traffic through of convenience and satisfaction of motorists traveling our Bulacan Solar, Inc. a 50 MW Solar Power Plant in EDSA Station in future years, in 2019, LRMC also expressways.” —J. Luigi L. Bautista, President and General San Miguel, Bulacan. This project is 40%-owned embarked on a P15 million project to develop Manager of NLEX Corp. by MGreen and is expected to be completed a bigger concourse with additional space for in 2020 at a total project cost of P4.25 billion. passenger queuing.

13 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation

Responsibility for ESG Part One Governance Economic Performance

Investment Selection and Portfolio Management

MPIC and the Sustainable Development Goals

14 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Value Creation

At the core of MPIC’s Sustainability In accordance with our Framework is our Mission to Sustainability Framework, we create long-term value for our monitor and evaluate our stakeholders through six Core operating companies’ performance Drivers of our business that reflect with respect to four pillars of Optimized Infrastructure Increasing Access to Service Development the main roles, responsibilities and sustainability: Customer Experience Resource Efficiency activities of the Parent Company: Commensurate Services Clean Operations 1. Operational Efficiency Service Continuity Business Continuity 1. Investment Selection and 2. Service Excellence Portfolio Management 3. Engaged Employees and Safe 2. Strategy Management and Workplaces Leadership Selection 4. Social Responsibility 3. Risk Management 4. Good Governance and Ethical The content of Part Two: Business Practices Sustainability Impacts of this report aligns with these four pillars. 5. Employee Welfare Community Employee Relations Engagement and Diversity 6. Social Responsibility Educational Support Health and Safety Greening Initiatives Competency and Skills Development Disaster Relief and Response Equal Opportunities

15 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Value Creation Stakeholders of MPIC and Our Operating Companies

STAKEHOLDER ENGAGEMENT

At MPIC, we consider the distinct interests of all stakeholders when making decisions about Operating Companies Customers/Public our business and its future. Services These stakeholders were identified and selected as the Company assessed which groups are most Capital and Leadership impacted by the topics that are material to us. Employees Employees

The Parent Company engages Investors Investors Influences directly with stakeholders through a variety of channels to enable Creditors Creditors them to make well-informed assessments and decisions about Partners Environment and Communities our business. Regulators Frequent dialogue and information exchange by our operating companies with their respective stakeholder groups is also integral to our Sustainability Framework.

16 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Value Creation

METHODS AND OUTCOMES OF STAKEHOLDER ENGAGEMENT DIRECT STAKEHOLDERS Methods of engagement Key topics and concerns Employees • Annual performance appraisals • E-mail blasts and bulletins • Working conditions • Bi-annual employee satisfaction surveys • Annual team building activity • Safe and secure workplace • Year-round training and development programs • Social media • Career advancement opportunities • Year-round health and wellness programs • Work-life balance • Transparent, honest and professional leadership Investors • Individual meetings • Site visits • Updates on regulatory resolution and Creditors • Quarterly financial and operational briefings • Conference calls and e-mail correspondences • Capital allocation • Annual General Stockholder Meeting • Annual participation in Global sustainability • Overall cash flow and funding strategy • Corporate disclosures indices, including Dow Jones Sustainability Index • Financial and operational performance • Corporate website and Carbon Disclosure Project • Business outlook • Investor conferences and roadshows • Share price performance Partners • Regular board committee meetings • Individual meetings, as necessary • Cash flow and profit performance • Quarterly board meetings • Conference calls and e-mail correspondences • Representation in regular board committees and board meetings • Updates on regulatory resolution • Business outlook Operating • Regular board meetings • Conference calls and e-mail correspondences • Alignment with expectations of Parent Company Companies • Regular management committee meetings • Training sessions • Funding support for new projects and acquisitions • Annual budget meetings • Disclosures on material transactions

Government • Industry-wide regulatory briefings • Participation in public consultations, as necessary • Compliance with laws and regulations and Regulators • One-on-one discussions during project bidding • Submission of comments and related inputs on • Disclosures and standards of reporting processes new rules and regulations

17 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Value Creation

STAKEHOLDERS OF OUR OPERATING COMPANIES Methods of engagement Key topics and concerns Customers • Websites • Corporate disclosures • Service excellence and the • Customer satisfaction surveys • Social media • Value for money Public • Awareness campaigns

Local • Corporate social responsibility programs • Websites • Environmental impact • Operational efficiency Communities • Awareness campaigns • Social media assessments • Social responsibility • Corporate disclosures • Safe operations

HIGHLIGHTS FOR 2019 HIGHLIGHTS FOR 2019 “The Philippine healthcare industry is poised MPTC forges new partnership for international cooperation MPIC raises P35.3 billion from KKR’s for tremendous growth given the increasing In May 2019, MPTC signed a memorandum of understanding on investment in MPHHI demand for hospitals, clinics, and facilities that technical cooperation and exchange of information with Japan In December 2019, global investment firm KKR and provide premium medical services. With this Expressway International Co. Ltd., Central Nippon Expressway Co. Ltd an affiliate of GIC, Singapore’s sovereign wealth fund new investment, coupled with the expertise that and Metropolitan Expressway Co. Ltd. The agreement covers asset completed its investments in MPHHI. These were KKR and GIC bring to Metro Pacific Hospitals, management and repair of at-grade and elevated road and bridge made through a series of transactions in common we will be in an even stronger position to meet sections, tunnel design and construction and the use of best practices shares in MPHHI and in mandatorily exchangeable patients’ needs and capture new opportunities to monitor the structural performance of expressway assets and bonds issued by MPIC. Proceeds from the sale of through organic expansion, acquisitions facilities, including technical audits to address all kinds of conditions shares in MPHHI will be used to support Metro and investments, and the adoption of new and requirements. Pacific Hospitals’ potential investments in additional technologies.” hospitals and new healthcare businesses. The capital - Augusto P. Palisoc Jr., President & CEO of Metro will also be used to grow MPIC’s existing subsidiaries, Pacific Hospitals For more information about… • Identified material topics for this report: please refer to Part Three: ESG Reporting Methodology associates, and joint ventures. • Engagement with local communities: please refer to Part Two: Social Responsibility 18 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Responsibility for ESG

Robust corporate governance BOARD OF DIRECTORS ENTERPRISE RISK MANAGEMENT is essential for long-term value MPIC’s highest governance body is the Board of Directors led by the At MPIC, Enterprise Risk Management (“ERM”) is closely linked creation in our business. Chairman. The Board is composed of 15 Directors–three Executive with our corporate objectives to protect and grow our business in Directors and 12 Non-Executive Directors, (three of whom are an ethical manner. The Board of Directors regularly Independent). It meets on average eight times a year to oversee reviews the Company’s management of the Company and ensure implementation of a robust Our ERM framework conforms to internationally recognized standard performance with respect governance framework. ISO 31000:2018 Risk Management. in accordance with which, our ERM to the six Core Drivers of our Policy outlines the Company’s ERM objectives and these are assessed Sustainability Framework. The In 2019, the composition of the Board included one female, and all annually by the Risk Management Committee of the MPIC Board. The Parent Company facilitates members were over 50 years of age. In accordance with MPIC Guidelines Parent Company conducts periodic performance reviews to evaluate information sharing and on Search, Screening and Selection of Directors, the Board is composed the status of ERM objectives for each department and principal harmonization of relevant policies of individuals with a wide spectrum of skills, experience and expertise, operating companies on a semi-annual basis. across the MPIC group; and is also including leaders from each of our major operating companies. Newly responsible for reporting on ESG appointed members receive a comprehensive orientation program, and STRATEGY MANAGEMENT AND LEADERSHIP SELECTION performance at group-level. all members participate in ongoing professional development training. Responsibility for execution of ESG strategy reside with our operating companies’ respective leadership teams. For more information about… In accordance with the Revised Manual of Corporate Governance that Corporate Governance, please requires each Director to participate in at least four hours of continuing Each major operating company has formed a Sustainability Working refer to our corporate website education per year, the Parent Company organizes an Annual Corporate Team that is responsible for assessing sustainability issues that are Governance Enhancement Session (“ACGES”) accredited by the Philippine relevant to their business; formulating sustainability strategies through Securities and Exchange Commission. In 2019, the ACGES was attended appropriate organizational structures; and monitoring and reporting on by 21 people including 13 members of the MPIC Board and eight ESG performance. personnel from the Parent Company senior management team. The program included presentations by external experts on 5G Techonology Strategy and Governance and Cyber Security.

19 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Responsibility for ESG

BUSINESS ETHICS POLICIES AND PROCEDURES Across the MPIC Group, every leader is expected to demonstrate full Our Whistle Blowing Policy encourages Parent Company employees HIGHLIGHTS FOR 2019 commitment in upholding our corporate values. to notify our Company corporate governance team about any actual Statement on environmental or potential improprieties. Our commitment to anti-corruption and socio-economic MPIC’s Corporate Code of Conduct stipulates that all employees and extends to ensuring compliance with all applicable laws and compliance officers of the Company should uphold high standards of business regulations on anti-corruption, anti-bribery and money laundering In 2019, there were no significant ethics, including specific provisions on compliance, competition and fair in accordance with our Conflict of Interest Policy, Insider Trading fines or non-monetary sanctions dealing, confidentiality of information and proper use of property, conflicts Policy, Policy on Gifts, Entertainments and Sponsored Travel and applied to the Parent Company of interest and corporate opportunities, disclosure, risk management Related Party Transaction Policy. In 2019, there was no occurrence for non-compliance with laws and relationships with shareholders and investors. As stipulated in the of non-compliance with the policies and procedures of the Parent and regulations. Furthermore, conditions of their employment or appointment, all directors, officers, and Company. there were no cases brought employees of MPIC commit to complying with both the letter and spirit of against the Parent Company the Code. The Company’s corruption policies and procedures have been through dispute resolution communicated to all members of the Board and employees of the mechanisms. MPIC respects all applicable laws and regulations on the environment, Parent Company. Our operating companies also provide ethics employment (including laws prohibiting child or forced labor), health and training to their employees. safety, product responsibility (such as advertising and labeling), bribery, privacy, and non-discrimination.

20 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Economic Performance

One of the key metrics we use to evaluate our Consolidated Financial Highlights financial performance is Core Income. This is the HIGHLIGHTS FOR 2019 net income attributable to owners of the Company In P Millions 2019 2018 % Change Core Income excluding one-off gains and losses which we believe MPIC share reflects the true and fair value of our underlying Power 11,571 10,823 7% P15.6 BN earnings. up 4% Toll Roads 5,236 4,423 18% MPIC’s Core Income of P15.6 billion in 2019 reflects Water 3,569 3,794 -6% System-wide Revenues a decade and more of sustained capital investment Hospitals 867 771 12% to enable meaningful volume increases in all our P424.5BN major businesses. Our high-quality management and Light Rail 319 394 -19% up 5% thousands of dedicated front-line employees work Others (671) (642) 5% (including associates, the largest of hard to deliver world-class service levels and improve which is MERALCO) Share of operating income 20,891 19,563 7% operating efficiencies. During the year, Parent Fully Diluted Core Company expenses, which include operating costs Head office expenses (1,164) (1,133) 3% Income per share and wages and benefits amounted toP 1.2 billion and Interest expense (4,125) (3,370) 22% interest expense amounted to P4.1 billion. Core income 15,602 15,060 4% 49.4CENTAVOS up 4% Non-core income (expense) 8,254 (930) -988% Reported income 23,586 14,130 69% MPIC Group-wide CAPEX In Centavos P72.0BN Diluted earnings per share on core income 49.44 47.71 4% up 45% Total dividend per share 11.05 11.05 0% (excluding acquisitions and investments)

21 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Economic Performance

Growth In Consolidated Core Income* Earnings Contribution of the Operating Companies In P Billions 55% 52% 55% 23% 22% *Core income is measured as net income 25% attributable to owners of the Company excluding the effects of foreign exchange and derivative gains 15.6 15.1 or losses and non-recurring items (“NRI”), net of P20.9 billion P19.6 billion P17.8 billion tax effect of aforementioned. NRI represent gains 14.1 2019 2018 2017 or losses that, through occurrence or size, are not 12.1 considered usual operating items. 17% 19% 21%

10.3 3% 3% 5%

8.5

7.2 POWER TOLL ROADS WATER HEALTHCARE AND OTHERS 6.6

5.1 2019 Key Drivers 3.9

2.0

0.3

Core Income growth Traffic growth and Strong patient 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 from MERALCO tariff adjustments at numbers at Metro Metro Pacific Tollways Pacific Hospitals

22 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Economic Performance

Power GBP recorded an 11% growth Average daily vehicle entries Water MERALCO’s Core Income rose 6% in Core Income of P2.7 billion GBP for all three of our domestic Maynilad’s Core Income for 2019 to P23.8 billion driven by a 6% in 2019 from P2.5 billion in tollways system rose 13% to remained flat at P7.7 billion. While increase in energy sales; lower 2018. Core Income remains over 535,503 compared with revenues rose 9% to P24.0 billion borrowing costs on lower debt; and positive with higher margins on P2.7BN approximately 474,529 in 2018. from P22.0 billion in 2018 as a result Core Income higher investment returns. Energy increased Wholesale Electricity Average daily vehicle entries of the combined effect of increases in sales rose across all of MERALCO’s Spot Market (“WESM”) prices for the toll investments outside tariff (basic and inflation-linked) and customer classes. Residential and additional ancillary service P9.9BN the Philippines declined 6% to the number of water connections, sector growth accelerated due to agreements despite flat sales Core EBITDA 412,205 in 2019 compared with Maynilad’s Core Income remained warmer weather and new customer volume. Contribution from 438,572 in 2018. Lower traffic flat as a result of higher amortization connections. Commercial sector 50%-owned Alsons Thermal Toll Roads volumes on DMT (Bangkok) and depreciation expenses as a sales grew on continued expansion Energy Corporation rose to P417 MPTC recorded Core Income of and PT Nusantara (Indonesia) consequence of Maynilad’s heavy of business-to-consumer services, million due to the earnings from P5.3 billion in 2019, an 18% were due to construction and investments in Non-Revenue Water while growth in the industrial sector ATEC’s expansion plant which increase from P4.5 billion a year road integration within their Reduction Program and continuing was broadly based. started commercial operations earlier, as a result of higher traffic concession areas. facilities upgrades. in October 2019. ATEC’s second on domestic roads and tariff 118.5 MW expansion plant adjustments in NLEX, SCTEX and MERALCO currently supplies electricity to CAVITEX, offset by lower traffic MPTC Maynilad an additional 4 million people in on our regional roads and higher P23.8BN Mindanao. borrowing costs. Overall, MPTC’s P5.3BN P7.7BN Core Income system-wide vehicle entries, Core Income Core Income including both our domestic and regional road networks, averaged P38.0BN 947,708 a day in 2019 versus P13.3BN P16.3BN Core EBITDA 913,101 in 2018. Core EBITDA Core EBITDA

23 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Economic Performance Investment Selection and Portfolio Management

Healthcare Light Rail Our business model is driven CAPITAL INVESTMENTS IN 2019 MPHHI reported a 12% rise in Our Light Rail business contributed by constant reinvestment to aggregate revenues in 2019 on an P319 million pesos to Core Income, maintain high levels of service 11% increase in outpatient visits a 19% decline from 2018. This and lay the groundwork for P20.2BN P0.7BN to 3,686,721 and 4% growth in was due to slightly lower average future growth. MERALCO GBP Addressing critical loading Maintenance and inpatient admissions to 201,131. Core ridership for the period; and higher of existing facilities and upgrading of power plants income rose 14% to P2.7 billion. repairs and maintenance costs. In 2019, capital expenditure by supporting growing demand MPIC’s operating companies and customer connections MPHHI LRMC served an average daily amounted to P72.0 billion, the ridership of 446,943 in 2019 peaking majority of which was undertaken BN at 596,500 riders. to enhance their operations P12.4 BN P4.0 BN MAYNILAD MPHHI P2.7 and expand their services. This Reducing non-revenue Upgrading equipment and Core Income facilities in its hospitals and LRMC figure includes expenditure on water by fixing leaks and contractors, materials, equipment repairing pipes; upgrading clinics to expand capacity and improve patient care and auxiliary services that stimulate and constructing P6.5BN reservoirs and pumping Core EBITDA P0.65BN the local economy. stations; laying primary Core Income pipelines; and developing wastewater facilities to P8.4BN P0.74 BN improve public health LRMC Core EBITDA Rehabilitating, upgrading and extending LRT-1 P26.2BN system and facilities; MPTC constructing line Expansions to existing roads extension to Cavite and new road projects

24 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

Investment Selection and Portfolio Management

HIGHLIGHTS FOR 2019 Maynilad investments boost service provision During 2019, Maynilad invested P12.4 billion to enhance and expand its water and wastewater services, while generating an estimated 34,000 short-term jobs. Among its recently completed sewage treatment plants are those in Pasay and Parañaque, bringing the total combined sewage treatment capacity of its 22 wastewater facilities to 664,000 cubic meters of wastewater per day.

For the formula on job creation, please refer to our Methodology.

HIGHLIGHTS FOR 2019 HIGHLIGHTS FOR 2019 LRMC investment sustains service LRMC capital investment 2019 improvements • New wayfinding signage introduced in several LRT-1 stations to give a fresher look Since taking over the operations and maintenance on par with the international standards concession for the country’s first and oldest railway, • 120 compressors ordered to rectify problems with air-conditioning units on first LRT-1, in September 2015, LRMC has invested P8.7 generation light rail vehicles billion to rehabilitate, upgrade and improve its • New signalling system implemented to ensure trains arrive regularly and on-time system and facilities. From 478 trips per day in 2016, with reduced headway of 2.5 minutes (expected to be completed by end 2020) LRMC has reached 520 trips, serving around 500,000 • Electrical, mechanical and architectural works underway on rehabilitation of the passengers daily. Rectifier Substation to facilitate a brand-new electricity supply for LRT-1

25 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals MPIC and the Sustainable Development Goals

The deadline for achieving the UN Sustainable Development Goals (“SDGs”) in 2030 is rapidly approaching. Businesses such as ours have a vital role to play in speeding up progress over the decade to come.

The SDGs are a collection of 17 goals set in 2015 by the United Nations General Assembly, designed to be a blueprint to achieve a better and more sustainable future for all. In its Philippine Development Plan (“PDP”) 2017-2022, the government adopted a whole-of-government and whole-of-society approach to SDG implementation. 2030 numerical targets were identified, which set the required pace of progress for achieving the SDGs. These targets are reflected in the Results Matrices, a companion document of the PDP.

By helping to improve and expand the delivery of essential services in the power, transport, water, and healthcare sectors, MPIC’s investments make an important contribution to achieving the Philippines 2030 development targets. Several of the SDGs align closely with the pillars of our Sustainable Development Framework: Operational Efficiency, Service Excellence, Engaged and Safe Workforce and Social Responsibility. 26 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

MPIC and the Sustainable Development Goals OPERATIONAL EFFICIENCY

BUSINESS-AS-USUAL

POWER WATER POWER MERALCO electrification POWER, TOLL ROADS, POWER POWER Water recycling programs for outlying Water and WATER, HEALTHCARE, MERALCO launched a GBP Malubog reforestation project; initiatives sanitation islands through microgrid systems LIGHT RAIL fleet of electric jeepneys Lambunao reforestation project, mangrove services travelling between cities of reforestation projects; and periodic coverage leveraging solar and Responsible waste management; progressive battery energy storage Makati and Mandaluyong. monitoring of flora, fauna and farmland rate; ban on single use plastics; For GBP, Soil - coal ash Each e-jeepney can carry up to 40 passengers productivity pond (with lining), recycle and reused as cement Jaro River project “Pag-asa sa Patubig” MGreen also begins and can run up to 100km. GBP undertakes IMS ingredient, Water - water treatment facilities, partnership construction of 50MW certifications for ISO 14001:2015 (Environmental cooled water discharge, Air - Continuous Emission Solar Power Plant in Management Systems) for all its power plants Monitoring System, Circulating Fluidized Bed HEALTHCARE LIGHT RAIL Bulacan boiler technology LIGHT RAIL Led replacement; TOLL ROADS LRMC plans to install in Ginhawash Solar panels on major its tracks regenerative toll plazas, CCTV’s technology that stores callboxes, and roadway power generated by the DDH Mangrove lighting LRVs (this is a pioneer in Planting in Davao Philippine railway)

COMMUNITY INVESTMENT PROGRAM Other CSR ONE MERALCO OTHER CSR MPIF MPIF ONE MERALCO Tree planting program “Lingkod Eskwela”; Community Maynilad “Green “Daloy Duong” electrification Badge” Upcycling Shore It Up! retired uniforms for “Puno ng Pag-ibig” disaster relief Other CSR LRMC: “Adopt-an-Estero” program, NLEX and ONE MERALCO CAVITEX: coastal clean up; committed to the LRMC “Tactile Tiles” Emergency preparedness and disaster protection of the Recycling PET bottles response projects include: surroundings into decoration for relief operations, power of Candaba, new stations restoration and community including its rehabilitation marine life

27 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Value Creation Responsibility for ESG Economic Performance Investment Selection and Portfolio Management MPIC and the Sustainable Development Goals

MPIC and the Sustainable Development Goals SERVICE EXCELLENCE ENGAGED EMPLOYEES

BUSINESS-AS-USUAL BUSINESS-AS-USUAL

POWER POWER POWER POWER POWER, TOLL ROADS, POWER, TOLL ROADS, GBP shows its commitment to GBP uses Circulating Fluidized WATER, HEALTHCARE, WATER, HEALTHCARE, Bed Technology for coal Meralco-bayad its adopted local communities LIGHT RAIL center’s “Sapat Dapat” through the conduct of combustion to achieve lower Disaster recovery plans; LIGHT RAIL emission of pollutants financial literacy health, scholarships and social business continuity plans Training and development programs; subsidized Employment; occupational health and safety; program development program tuition and scholarships for employees and compliance with the Labor Code; replace with dependents; fellowship grant for qualified Quality Management System TOLL ROADS doctors HEALTHCARE Expansion of HEALTHCARE national road Asian Hospital Charities Provide best-in-class in- network TOLL ROADS Inc. provides free breast patient and out- patient examination, deep brain services and senior Disaster relief stimulation surgery and wellness program LIGHT RAIL operations medical assistance program LRT-1 expansion project for indigent household

COMMUNITY INVESTMENT PROGRAM COMMUNITY INVESTMENT PROGRAM

MPIF ONE MERALCO Other CSR ONE MERALCO MPIF OTHER CSR Through the Grassroots Partnerships Program, One GBP social development program Mano Amiga; support for Maynilad “Kapwa” MPIF calamity and other MERALCO Foundation is able to social developments Grassroots partnerships Brigada Eskwela Partnering with the women nurture strong partnerships with of STM-Tondo to provide local government and barangays. them with livelihood The program provides appropriate ONE MERALCO Other CSR support ONE MERALCO Other CSR support for certain local community needs such as health, sanitation, environmental protection, sports and education. Maynilad “Sining Ipo” Other CSR Providing livelihood Other CSR Ginhawa gardening support for indigenous GBP scholarship craftsmen in Ipo Maynilad Kapwa School electrification program; Maynilad Watershed Rural electrification Maynilad Kapwa and and Sining Ipo program Brigada Eskwela program Sining Ipo 28 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency

Service Excellence Part Two Sustainability Impacts Engaged Employees The content of this chapter aligns with the four pillars of our Sustainability Framework. and Safe Workplaces

Social Responsibility

29 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

BOUNDARY OF ESG PERFORMANCE The following operating companies are included in the boundary of ESG performance for this report:

POWER HEALTHCARE • Manila Electric Company • Corporate Information Featured Hospitals: (“MERALCO”) including: Solutions Inc. • Asian Hospital, Inc. – the entity • MERALCO PowerGen Corporation • MSpectrum, Inc. operating and managing Asian • Clark Electric Distribution • MRAIL, Inc. Hospital and Medical Center Corporation • eSakay, Inc. (“AHMC”) • Shin Clark Power Holdings Inc. • Comstech Integration • Colinas Verdes Hospital Managers • MERALCO Industrial Engineering Alliance, Inc. Corporation – the entity operating Services Corporation • Global Business Power and managing Cardinal Santos • MERALCO Energy, Inc. Corporation (“GBP”) Medical Center (“CSMC”) • Davao Doctors Hospital (Clinica Hilario), Inc. – the entity operating TOLL ROADS and managing Davao Doctors Hospital (“DDH”) Featured Toll Roads: • Medical Doctors, Inc. – the entity • NLEX Corporation – the entity holding concession rights to construct, operate operating and managing Makati and maintain the North Luzon Expressway (“NLEX”) and Subic–Clark–Tarlac Medical Center (“MMC”) Expressway (“SCTEX”) • CAVITEX Infrastructure Corporation – the entity holding concession rights for Cavite Expressway (“CAVITEX”) LIGHT RAIL WATER • Light Rail Manila Corporation (“LRMC”) – the entity holding concession rights to operate and • Maynilad Water Services, Inc. (“Maynilad”) maintain the Light Rail Transit 1 (“LRT-1”) and construct the LRT-1 South Extension

For 2019, MERALCO expanded the boundary of its ESG performance to include some of its subsidiaries. This explains why there are significant increases in the key performance indicators for MERALCO for 2019. A full description of the reporting boundary can be found in Part THREE: ESG Methodology 30 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility Operational Efficiency

Efficient management of resources is an essential element of our strategy to create value from our investments by conserving inputs to production and minimizing waste.

This chapter provides information about our impacts on the environment, including energy and water use as well as production and disposal of waste.

For more information about … • Identified Material Topics: please refer to the ESG Reporting Methodology • Consolidated summary of KPIs: please refer to the ESG Data Summary

31 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Operational Efficiency

ENTERPRISE RISK MANAGEMENT - Some examples of environmental risks ENVIRONMENT incorporated into our risk register include climate MPIC’s investments are vulnerable to a range of change risk, catastrophic risk, air quality and environmental risks from earthquakes and volcanic carbon emissions risk, waste and environmental eruptions, to tropical storms, landslides and extensive pollution risk, scarcity of natural resources risk and flooding. In 2019, the Philippines was named by the business continuity planning risk. These risks are Global Peace Index as the most susceptible country discussed periodically by the leadership teams in the world to hazards from climate change. The of our operating companies at their respective study from this Australian-based think tank found Board and Board Committee meetings. that 47% of our population is highly exposed to HIGHLIGHTS FOR 2019 climate hazards, including drought. Throughout our business, we adopt a Maynilad’s Water Safety Plan (“WSP”) precautionary approach to implementing cost- This plan details programs and procedures for ensuring the For more information, please view the 2019 Global effective measures to manage and mitigate safety of water supplied to customers, and corrective actions Peace Index visionofhumanity.org environmental risks in accordance with our long- in case of water contamination. It includes hazard analyses, risk term business objectives. Subject to the cost assessments, and control measures for containing or removing Management Approach considerations reflected in relevant concession water contamination brought by disasters such as landslides, and By investing in the highest standards of infrastructure and franchise agreements, our operating security threats such as terrorist sabotage, among others. The that our country can afford, such as reliable, clean companies have business interruption and plan is subject to intensive audit by the WSP Review Committee, and efficient coal-fired power generation, robust environmental risk insurance in place to mitigate which is composed of the Department of Health, Metropolitan systems for water treatment, world-class expressways the risks of destruction to life and property. We Waterworks and Sewerage System-Regulatory Office, and National and enhanced light rail services, we expect that our are also continuously reviewing and enhancing Water Resources Board, among others. portfolio of high-quality investments will continue to our business continuity processes, disaster serve our business and our stakeholders productively recovery programs and crisis management “Having a Water Safety Plan is important to ensure that risks for many years to come. capabilities. along the water supply chain are properly addressed, especially during calamity episodes.” - Randolph T. Estrellado, Maynilad Chief Operating Officer

32 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Operational Efficiency

Environmental Management Systems HIGHLIGHTS FOR 2019 Our operating companies implement Environmental Management Systems (“EMS”) that Watershed Management exceed local requirements and are certified to international standards. Leadership teams are incentivized to continuously improve operational efficiency in order to achieve cost savings. From a compliance point of view, our operations are regularly reviewed with reference to a master list of Environment-Related Regulations to ensure that all permits are valid, and any specific conditions are fully implemented.

Part of our approach to environmental management involves upholding high standards in our supply chain. In our power business, for example, we recognize that coal mining HIGHLIGHTS FOR 2019 poses particular risks to the environment. These risks must be mitigated by ensuring that MPIC institutes Maynilad “Plant for Life” Environmental and Social Program since 2007 suppliers implement proper management systems and comply fully with environmental regulations. GBP conducts due diligence as part of its accreditation process in Impact Assessment Policy accordance with its Supplier Code of Conduct, such as requiring its suppliers to submit In 2019, MPIC instituted 800,000 341 a policy that ensures trees hectares proof of identity and demonstrate compliance with environmental regulations, among other measures. The company also does its own trade checking through customer that environmental and Watershed management is essential for helping to references from the supplier. social impact assessments prevent erosion and flooding in order to protect are done during due water quality. In 2019, Maynilad planted 34,000 In our toll roads and light rail businesses, suppliers have to undergo an accreditation diligence exercises for trees and mangroves over 34 hectares as part of process complying with Environmental standards (including Safety and Health standards) potential acquisitions. This its annual “Plant for Life” Program to help reforest before being considered for bidding. LRMC undertakes additional assessments through assessment is designed to the Ipo Watershed and other critical watersheds site visits to evaluate safety and compliance. identify risks and potential such as Malabon and Muntinlupa, as well as restore adverse consequences of mangroves in Laguna Lake and the coastal areas For the Company’s Supplier Code of Conduct, please refer to our website proposed transactions to of Manila Bay. During the year, it also adopted 30 For a full list of relevant EMS certifications, please refer to our Annex. the environment and the hectares in Mt. Balagbag, Rizal, which is one of the surrounding communities as most heavily deforested areas of the Ipo Watershed. a whole.

33 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Operational Efficiency Overview of Our Major Energy

ENERGY AND EMISSIONS San Buenaventura Power Limited and Emissions Impacts Our operating companies consume Co. (“SBPL”) Super-critical coal-fired energy in various forms, which Power Plant in Mauban, Quezon. contributes to Greenhouse Gas Although SBPL is the first in the MERALCO GBP (“GHG”) emissions measured in Philippines to use high efficiency, metric kilotons of CO2 equivalent low emission technology and the Energy Sales (TJ) Energy Sales (TJ) (“ktCO2e”) and other air pollutants most advanced operating coal-fired such as nitrogen oxides (“NOx”) and power plant in the country, it was still 182,149 13,862 sulphur oxides (“SOx”). the primary reason why aggregate carbon emissions from MPIC’s Management Approach portfolio companies increased year Energy Consumption (TJ) Energy Consumption (TJ) Our approach to investment and over year. We are mindful of this and management in the power sector have begun intensifying our efforts 182,552 46,467 focuses on developing, operating to reverse this trend through various 3% increase from 2018 and maintaining socially and renewable energy initiatives across environmentally compatible energy the MPIC group. We are exploring GHG Emissions (ktCO2e) GHG Emissions (ktCO2e) sources and infrastructure. Under opportunities to convert waste into the Electric Power Industry Reform energy. Two good examples are the 938 4,872 Act of 2001, a distribution utility Surallah and Polomok waste-to- Scope 1 Scope 1 like MERALCO has the obligation to energy biogas plants that we are in supply electricity in the least cost the process of developing for Dole 1,972 8.6 manner to its captive market subject Philippines. We are also awaiting Scope 2 Scope 2 to the collection of the retail rate duly Notice of Award to build the Quezon approved by the Energy Regulatory City Solid Waste Management Facility GBP energy sales: Commission. Operating under that could convert up to 3,000 metric Net generation (gross generated this mandate, in 2019 MERALCO tons a day of municipal waste into electricity less houseload consumption) commissioned its 500 MW (gross) electricity.

34 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

KEY PERFORMANCE INDICATORS TJ Terajoules; ktCO2e Metric kilotons of CO2 equivalent 1 For 2019, MERALCO expanded the boundary of its ESG performance to include some of its subsidiaries. This explains why there are significant increases in the key performance indicators for MERALCO for 2019. 2 GBP energy sales: Net generation (gross generated electricity less houseload consumption)

Energy Sales (TJ) Energy Consumption (TJ) GHG Emissions (ktCO2e) MERALCO1 MERALCO1 MERALCO1 Scope 1 MERALCO1 Scope 2 182,149 182,552 938

1,909 1,972 1,605

9,133 9,429 9,460 9,761 32.5 20.7

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

GBP2 GBP GBP Scope 1 GBP Scope 2

4,775 4,872 4,654 8.6 13,750 13,875 13,862 46,754 45,199 46,467 7.53

4.84

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

35 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

OTHER OPERATING COMPANIES HIGHLIGHTS FOR 2019 Energy Consumption (TJ) GHG Emissions (ktCO e) Scope 1 Scope 2 MERALCO MGen forges a new 2 path for renewable energy NLEX/SCTEX MAYNILAD MERALCO believes renewable 2017 2018 2019 89.54 93.57 92.26 energy will play a significant 7.01 role in the Philippine energy mix going forward. Through its recently incorporated subsidiary 3.90 3.49 MGreen, its goal is to develop 4.40 3.40 1,000 MW of renewable energy 3.30 projects over the next five to 3.95 4.13 4.70 seven years. The focus is on development of a portfolio 2017 2018 2019 2017 2018 2019 of utility scale solar, wind and hydro power projects to supply Luzon grid and electricity CAVITEX AHI consumers while maintaining 1.36 12.84 competitive tariffs. 1.22 11. 31 11.41 1.00 In September, MGen secured NLEX/ CAVITEX Maynilad AHI CSMC MMC DDH LRMC 0.71 equity funding of P424 million SCTEX for various solar projects with 0.42 0.46 2019 95.68 16.57 530.59 58.66 37.47 86.11 29.30 182.68 combined capacity of 210 MW 2018 81.31 12.54 529.19 66.08 34.56 86.07 29.19 183.04 and total cost of P10 billion. 2017 67.67 11.77 492.82 68.47 36.39 86.47 191.33 0.07 0.09 0.02

2017 2018 2019 2017 2018 2019

36 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

OTHER OPERATING COMPANIES HIGHLIGHTS FOR 2019 GHG Emissions (ktCO e) Scope 1 Scope 2 2 MPTC Invests in renewable CSMC MMC energy solutions 7.36 To reduce its consumption of grid purchased 6.74 16.82 16.92 electricity, MPTC has adopted solar-powered 6.08 14.37 technology for closed-circuit television (“CCTV”) cameras, emergency call boxes and roadway lighting. In 2019, NLEX went a step further by starting to install solar panels at several of its toll plazas, including Meycauayan 0.02 0.04 0.02 0.04 0.07 0.03 Southbound (the location of its solar power pilot project) as well as Balintawak Barrier, 2017 2018 2019 2017 2018 2019 Bocaue Barrier, Mexico, Angeles, San Fernando Southbound, and Karuhatan Interchange. In total, the new solar installations are expected DDH LRMC to produce over 430 kilowatt hours of 5.76 5.87 35.67 35.47 renewable energy per year. 29.49 Energy consumption of NLEX and CAVITEX increased significantly by 18% and 32%, respectively, due to the expansion projects for both toll roads. NLEX completed the 5.8 km Harbour Link Segment 10 in February 2019 and is currently constructing the 2.6 km Harbour Link Radial Road 10 and the Phase 2 of its Land Widening program, both of which are expected to be completed by 2020. CAVITEX, on the other hand, completed the first 2.2 km subsection of CAVITEX C5 Link Expressway (Segment 3A-1) on July 2019. The remaining 5.5 km of the CAVITEX C5 0.005 0.05 1.56 0.20 0.25 Link Expressway and an additional 1.2 km CAVITEX Segment 4 will be completed by 2022.

2017 2018 2019 2017 2018 2019 For additional details on our toll road development pipeline, please refer to our quarterly briefing presentations

37 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Through major investments in substation and GBP Operational Efficiency distribution infrastructure as well as targeted GBP has a long-term goal to be the nation’s foremost provider of sustainable implementation of system loss management and anti- energy solutions utilizing diversified sources and innovative technologies. It electricity pilferage programs, MERALCO has achieved is looking into renewable energy sources such as pumped storage hydro and MERALCO a steady reduction in system loss over many years. We solar, among others, to complement its existing capacity. In accordance with its franchise obligation and corporate estimate that the difference between actual system loss mission to provide the best value in energy products and the regulatory cap of 7.25% has saved MERALCO’s GBP presently owns and operates 11 power generation facilities with a total and services, MERALCO manages the supply of electricity customers in excess of P5.2 billion since 2008. This is the combined gross capacity of 854 MW. Its large generation facilities, namely for distribution to its customers from a range of power equivalent of 0.11 centavos per kWh and 4,924 ktCO e of CEDC, PEDC 1, 2, 3 and TPC1A utilize technologically advanced circulating sources including independent power producers, retail 2 avoided GHG emissions. fluidized bed boiler technology to optimize fuel efficiency and minimize electricity suppliers and the WESM. environmental impact. Furthermore, it has systems in place to optimize use of resources and ensure regulatory compliance by making use of an 2019 MERALCO’s Energy Mix 2019 MERALCO System Loss automated performance scorecard to monitor actual resource consumption (sources of consolidated distributed electricity) against its target operational parameters. In managing emissions, GBP conducts periodic ambient tests, smoke stack sampling and uses real-time 5.54% Continuous Emissions Monitoring System that is validated by a third-party Improvement by 2.3% provider via Relative Accuracy Test Audit, in accordance with international 27% 40% compared to 2018 Multi-fuel Natural gas standards. GBP also undertakes carbon sink programs such as the Lambunao (coal, hydro, biomass, plants and Malubog reforestation projects to lessen its environmental impact and as geothermal) P5.2BN part of its legacy to its neighboring communities. customer savings HIGHLIGHTS FOR 2019 <1% GBP awarded for excellence in sustainability Solar GBP won the Corporate Excellence Award at the 2019 Asia Pacific Reduced system loss leads to lower electricity bills Entrepreneurship Awards (“APEA”). The Award is given to companies with for consumers and lessened carbon footprint 1% exemplary audit results in people management, value creation, business Liquid fuels growth, continuous improvement, corporate social responsibility, and (including bio-fuels) operation excellence. Organized by Enterprise Asia, the APEA seeks To ensure compliance with relevant standards and to give recognition to outstanding business leaders and companies regulations, MERALCO monitors the concentration of 32% which democratize entrepreneurship, institutionalize sustainability, and Coal-fired plants Persistent Organic Compounds in the air emissions from empower innovation. its electricity transmission and distribution facilities. 38 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Operational Efficiency Overview of Our Major Water

WATER AND EFFLUENTS and Effluents ML megaliters Management Approach We recognize MPIC Group’s operations and facilities impact the Maynilad Other Operating Companies: Water Withdrawn (ML) availability of water in communities experiencing high water stress. We are focused on utilizing the country’s water resources in a sustainable Water Supplied to way to meet the needs of our customers today without undermining District Metered Area MERALCO the ability of future generations to meet their needs too. (“DMA”) Level (ML) 132,260 HIGHLIGHTS FOR 2019 including daily rotational 727,284 Maynilad Service Interruptions water service interruptions down by 3% Changing rainfall pattern at for its customers, reactivation GBP the Angat and Ipo watersheds of deep wells, installation of Water Withdrawn (ML) 134,970 1,367 has caused raw water levels to modular treatment plants, and decline below normal levels. As development of mobile water 908,208 Featured a result, in 2019, Maynilad was tankers and stationary water down by 1% Toll Roads forced to implement necessary tanks. 139 measures to mitigate the impact Featured Non-Revenue Water Hospitals of reduced raw water allocation, We thank affected customers (“NRW”) at DMA Level for their patience and 961 understanding during this 25% LRMC challenging time. Rotational 65 water service interruptions are expected to continue as part Maynilad’s ongoing supply management efforts.

39 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

KEY PERFORMANCE INDICATORS OTHER OPERATING COMPANIES MAYNILAD ML megaliters Water withdrawn (ML) Maynilad operates a system of raw water withdrawal and treatment, potable water distribution, and wastewater and sanitation services in the MAYNILAD: Water MERALCO1 National Capital Region’s West Zone. It works closely with its regulators, Withdrawn and Supplied to 2019 132,260 customers and local communities to promote responsible water DMA Level (ML) 2018 473 management, including conservation of the nation’s important water 2017 439 resources and protection of public health. GBP 922,133 920,848 908,208 2019 1,367 2019 Source 2018 1,375 of Raw Water 2017 1,344 10% Laguna de Bay 755,379 % 750,841 727,284 Featured Toll Roads 90 Angat Dam 2019 139 < % 2018 129 1 Deep Well 2017 74

Featured Hospitals 2019 961 Maynilad has a comprehensive NRW Reduction Program in place 2018 826 to reduce the volume of “lost” water due to faulty or leaking pipes in 2017 766 2017 2018 2019 its distribution network, theft, illegal connections and non-payment of water bills. Since 2008, it has recovered 979 MLD through pipe Water Withdrawn (ML) LRMC replacement, active leakage control, network diagnostics, meter Water Supplied (ML) 2019 65 replacements, and District Meter Area management. This amount is 2018 79 2017 80 enough to fill up 390 Olympic-size pools per day or supply about 1.7 million households.

1 For 2019, MERALCO expanded the boundary of its ESG performance to include some of its subsidiaries. This explains why there are significant increases in the key performance indicators for MERALCO for 2019. 40 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Maynilad’s sewerage services include conveyance, Maynilad’s wastewater treatment system guarantees that the pollution content Operational Efficiency treatment, and discharge of wastewater from of all water discharged at 13 locations within its service area complies with connected customers. It also provides sanitation regulatory standards. services, or desludging of septic tanks, to customers “Our P25 billion capital investment in NRW over Maynilad: Wastewater Treatment in its concession area who are not yet connected the past 12 years enabled us to recover a water Unit 2019 2018 2017 in the sewerage system. The septage is dewatered, 1 volume that is equivalent to constructing a new Total wastewater treated and discharged ML 74,500 63,998 59,490 processed into biosolids, treated and safely disposed Volume of septage desludged ML 233 137 200 dam.” - Randolph T. Estrellado, Maynilad Chief of by contractors at specialized composting facilities Operating Officer Pollution Load Abatement Biological oxygen demand metric tons 2,845 2,540 2,093 Sewerage Services Chemical oxygen demand metric tons 5,250 3,633 3,210 2019 NRW Program Total suspended solids metric tons 3,467 1,850 1,241 2.1 million Oil and grease metric tons 365 221 52 People offered with 1100% of Maynilad’s water discharge is categorized as ‘Other’ water i.e. >1,000 mg/L total sewerage services dissolved solids.

6,024 km 25.3% 21.2% Wastewater discharge by location (ML) of pipes checked NRW measured at Coverage of sewerage 2019 2018 2017 for leaks the DMA level services in the Manila Bay 42,669 41,647 41,111 concession area Delain Creek 9,834 - - Dario Creek 5,159 5,628 6,125 100% Malabon Creek 4,653 - - Target coverage by 2037 (subject to regulatory approval of capital Pasong Diablo River 2,920 2,744 2,670 expenditure and tariffs) Talayan Creek 3,508 4,511 2,636 28,683 38.2% San Juan River 2,166 2,456 2,306 leaks repaired Total NRW, including San Franciso River 1,419 1,697 1,760 water loss from all Sanitation Services Mairbolo Creek 1,184 1,311 1,340 primary pipes Culiat Creek 653 777 729 85 MLD 3.9 million 40.7% Maypajo Creek 266 707 705 recovered water from Population reached Coverage of sanitation Estero De Santibanez 69 87 108 repairs of leaks by sanitation services in the Maricaban Creek - 2,433 - services Concession Area TOTAL 74,500 63,998 59,490

41 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

GBP HIGHLIGHTS FOR 2019 GBP’s operations consume significant quantities of water for cooling and other processes. Its Program of Investments in Wastewater Management coal-fired power plants withdraw seawater, and its diesel-fired plants withdraw freshwater from In 2019, P31.2 billion—around 60% of Maynilad’s capital expenditure commitment— local groundwater sources. The amount and quality of water both withdrawn and discharged was allocated for wastewater management projects to comply with the new and more are subject to strict regulation. stringent effluent standards and maintain network reliability. These projects include construction of a new sewage treatment plant (“STP”) in Central Manila, installation of 30 Wastewater discharge by location for Process Water (ML) km of sewer lines in Las Piñas City, upgrade of existing STPs to include nutrient-removal Discharge Location Type 2019 processes, lot acquisitions for new STPs and pump stations, installation of new sewer Luray Creek Seawater 265.8 service connections, and maintenance of the existing sewer network. Iloilo Strait Seawater 262.4 Sigpit River Freshwater 4.7 Mabilo River Freshwater 0.8 In September 2019, Maynilad received a copy of a Supreme Court decision that the water Unidos River Freshwater 0.6 concessionaires and MWSS are jointly and severally liable for violating Section 8 of the Brgy. Papandayan Canal Freshwater 0.1 Clean Water Act. In October 2019, Maynilad filed a Motion for Reconsideration of the TOTAL 534.3 decision to the Supreme Court. Before Maynilad was re-privatized in 2007, there were only two operating STPs, sewerage coverage in the West Zone was only 7% of the then For more information about… 6.1 million water-served population. Maynilad has since built several new STPs, and, as Maynilad sustainability reports, please refer to the Maynilad corporate website of December 2019, has expanded its sewerage coverage to 21.2% of the now 9.7 million water-served population.

Under MPIC’s ownership, approximately 3.2 million people have been connected to clean safe drinking water, bringing the total served to 9.7 million people and 3,137 kilometers of new pipes have been laid. NRW at the DMA level has been reduced to 25.3% as at end of December 2019 from 68% 13 years ago, saving almost 1 billion liters of water every day, or enough water to provide the needs of a large city.

42 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Operational Efficiency Overview of Our Major Waste

WASTE Department of Environment and Natural Resources (“DENR”) in Operating Companies: Waste By Type and Disposal Method (Tonnes) Management Approach compliance with relevant approvals Guided by Environmental and regulations. Hazardous Waste GBP Management Systems conforming 227.96 to local requirements and Across the wide range of business NLEX/SCTEX international standards, we activities we are involved in, 1.18 implement waste management the amount and type of waste MERALCO CAVITEX and waste reduction initiatives produced varies greatly, as does its 1,187.20 0.19 from the design phase of new potential for reuse and recycling. infrastructure developments to Where applicable, our operating Maynilad operations and service delivery. companies have appointed DENR- 56.80 Our operating companies disclose accredited service companies to information about the production collect and dispose of all hazardous AHI and disposal of waste to the waste materials. 253.70

CSMS 144.67

MMC 339.38

DDH 59.89

LRMC 61.27

43 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

KEY PERFORMANCE INDICATORS Hazardous Waste (Tonnes) 1 For 2019, MERALCO expanded the boundary of its ESG performance to include some of its subsidiaries. This explains why there are significant increases in the key performance indicators for MERALCO for 2019.

MERALCO1 GBP NLEX/SCTEX CAVITEX Maynilad 1,187.20 407.10 1.18 0.88 56.84 378.98

41.49 654.65 227.96 0.72 28.17

0.19 0.07 Insignificant 1.58

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

AHI CSMC MMC DDH LRMC 253.70 157.41 339.38 59.89 288.00 222.40 145.58 144.67 209.00 293.37 239.74

105.72 22.03

61.27

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

44 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

KEY PERFORMANCE INDICATORS Hazardous Waste By Disposal Method (Tonnes) Residual Reuse Stored Onsite Other

MERALCO GBP NLEX/SCTEX CAVITEX Maynilad

859.42 1.16 0.19 56.84 407.10

41.49 0.72 227.96

636.33 18.32 327.78 0.01

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

AHI CSMC DDH MMC LRMC

4.65 145.58 144.67 59.89 339.38 105.65 4.14 249.05 293.37 218.26

52.41

22.03

0.07 8.86 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

45 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

KEY PERFORMANCE INDICATORS Non-Hazardous Waste By Disposal Method (Tonnes) Residual Reuse Stored Onsite Other

MERALCO GBP NLEX/SCTEX CAVITEX Maynilad

27.73 137,306 712.1 1.00 59.0 55.0 5.00 17.6 89.43 4,152.5 121,201 477.20 71.5

40,734

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

AHI CSMC DDH MMC LRMC 1.1 332.1 329.00 4,324.0 292.47 76.48 79.71 156.1 711.48 717.61 115. 32

80.5 23.22 162.49

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

46 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency

MERALCO in purpose-built ponds. In Iloilo, where GBP owns In 2019, MERALCO recycled 813 metric tons of used and manages the ash pond that is located within oil and 0.85 metric tons of used lead acid batteries, its site boundary, a Toxicity Characteristic Leaching both of which are categorized as hazardous waste. Procedure has been implemented and regular The used batteries were donated to the ‘Balik Baterya groundwater quality monitoring takes place to Program’ organized by Ramcar, Inc. in partnership ensure compliance with the plant’s Environmental with Philippine Business for Social Progress and Compliance Certificate. In Toledo, the ash is stored Philippine Recyclers Incorporated. This initiative only temporarily in the ash pond before being produces new automotive and industrial batteries, permanently disposed of by an accredited third- with all proceeds from the sale of the new batteries party. going to various environmental, educational and health projects. GBP also produces hazardous waste such as waste oil, used batteries, electronic waste, medical waste, GBP acid waste, alkali waste and resinous materials. These Bulk of GBP’s non-hazardous waste is in the form of are handled exclusively by DENR-accredited service fly ash as a by-product of power generation in its providers. In 2019, GBP disposed of 228 metric tons coal-fired power plants. It tracks all generated wastes of waste and used oil. and ensures proper handling from temporary internal storage up to disposal. TOLL ROADS NLEX’s non-hazardous wastes are generally office In 2019, an increase of 881% to 40,733.7 metric wastes, including food wastes, paper, and plastic. tons of ash were sold to third-parties as an input NLEX made conscious effort to reduce office wastes for cement production and an increase of 13% to through programs such as reduction of food wastes over 137,230.4 metric tons of ash were disposed of and single-use plastics.

47 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Operational Efficiency HIGHLIGHTS FOR 2019 #AYOKONGPLASTIK MOVEMENT @DDH In 2019, DDH joined forces with World Wide Fund for Nature WATER (“WWF”) Philippines – Davao Chapter to introduce a progressive Maynilad practices waste segregation at source and achieves an ban on single use plastics inside its premises. Starting in impressive rate of non-hazardous waste reuse and recycling by November, plastic straws, cups and cutlery were removed from collecting recyclable materials from its facilities at least once a month the hospital’s cafeterias and food concessionaires. Each month for sale to third-parties or donation to charity. Established systems additional items have been added to the list of prohibited plastics, HIGHLIGHTS FOR 2019 and protocols are in place governing the handling and disposal including styrofoam containers in December and PET water bottles LRMC’s Annual Clean Up of hazardous waste. Only trained personnel are allowed to handle in January. of the Estero de Tripa de hazardous waste and DENR-accredited third parties have been Gallina (“ETG”) appointed to carry out proper transport, treatment, and disposal. The ban applies to employees, doctors and outsourced personnel; LRMC’s Annual Estero Clean-up all of whom are encouraged to bring their own food and water was conducted in 2019 with FEATURED HOSPITALS containers and reusable utensils from home. 650 volunteers representing Each of our featured hospitals monitors the collection and disposal of LRMC, Pasay, Manila, and Makati waste for compliance purposes. Onsite thermal treatment is typically At first, there was resistance and negative reactions from the Local Government Units as used for sharps and certain other types of infectious waste. This process patients, clients, doctors and even from the employees which well as various Government uses high temperatures and steam to deeply penetrate all materials is to be expected. However, with consistency and with the help agencies, including the and kill any microorganisms. Offsite incineration of pathological and of the Security Team as the gatekeeper, patients, clients, doctors Department of Transportation pharmaceutical waste is required in accordance with regulations. This and employees are now used to it and they fully understand the and DENR. Three truckloads kind of waste disposal is performed by accredited third party service objective of DDH in undertaking this advocacy. of waste were removed. This providers in controlled facilities to ensure complete combustion and to important annual CSR activity minimize negative effects on the environment. Stakeholders support this advocacy, they fully understand and supports DENR’s “Adopt-an- appreciate the effort for the sustainability of waste management Estero” Program along a 3 km system to improve patients and employee’s safety and reduce stretch of ETG (expanded from environmental and human health impacts. 0.5 km initially), in close vicinity to LRT-1

48 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility Service Excellence

At MPIC, we expect our operating companies to set the highest standard for service provision across a full range of essential services.

This chapter provides information about the elements of our Sustainability Framework relating to Increasing Access to Services, Customer Experience, Commensurate Services and Service Continuity.

For more information about… • Identified Material Topics: please refer to the ESG Reporting Methodology • Consolidated summary of KPIs: please refer to the ESG Data Summary

49 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Service Excellence Overview of Our Quality Management

QUALITY MANAGEMENT Customer Count Average daily Patient Count* Management Approach vehicle entries *Aggregate number; including At MPIC, service excellence is achieved by MERALCO NLEX hospitals not within the integrated quality management systems and boundary of this report sustained investment to improve our services while 6,882,784 283,296 In-patient strengthening our ability to meet and exceed expected service standards. 201,131 Maynilad SCTEX Our operating companies ascribe to Quality Management System (“QMS”) certifications that 1,453,979 70,551 Out-patient standardize their technical processes and provide assurance for our customers and other stakeholders. CAVITEX 3,686,721 For the full list of relevant certifications please refer to our Annex. 181,656

Average daily ridership LRMC 446,943

50 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Service Excellence

KEY PERFORMANCE INDICATORS Customer Count Featured Toll Roads: Average Daily Vehicle Entries

MERALCO Maynilad NLEX SCTEX CAVITEX 283,296 70,551 181,656 265,530 62,684 237,046 146,315 54,566 139,208 1,453,979 6,882,784 1,407,503 6,614,814 1,358,758 6,326,691

2017 2018 2019 2017 2018 2019 2017 2018 2019

HOSPITALS: *Patient counts are aggregate of all hospitals under MPHHI LRMC: Average In-Patient Count* Out-Patient Count* Daily Ridership 193,824 201,131 3,686,721 435,199 458,021 446,943 3,323,104 173,939 3,085,638

2017 2018 2019 2017 2018 2019

2017 2018 2019 2017 2018 2019 2017 2018 2019

51 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Service Excellence Overview of Our Consumerate Services Reliability COMMENSURATE SERVICES MERALCO Management Approach 1.77 106.48 188.36 For the model of public-private infrastructure provision System Average Interruption Customer Average Interruption Total average interruption Frequency Index (Times) Duration Index (In minutes) duration (In minutes) to be sustainable, all parties should ideally adhere to the contracted terms of relevant concession and franchise agreements. We are however mindful of the LRMC regulatory risks that are inherent in our businesses and coordinate closely with regulatory agencies to address 100.3 3.3 4.3 16.6 8.6 issues in an amicable manner. Average train Average train Average train Number of train Frequency of cycle time waiting time waiting time failure incidents train failure (in minutes) during peak during non-peak (in minutes) incidents HIGHLIGHTS FOR 2019 hours (in minutes) hours (in minutes) LRMC receives Innovation Award In May 2019, LRMC received the First Gold GBP Stevie Award for its Automated Train Operations Management System (“ATOMS”) at the sixth annual Equivalent Availability Factor Equivalent Forced Outage Rate (Average) (Average) Asia-Pacific Stevie® Awards in February 2019 - the only awards program to recognize innovation in business throughout the entire Asia-Pacific region. 85.8% 18.5% ATOMS is a strategic traffic management tool 2019 2019 developed internally by LRMC employees to help ensure that a train arrives at every station every three minutes.

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85.1% 18.5% About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Service Excellence

KEY PERFORMANCE INDICATORS RELIABILITY

MERALCO GBP System Average Interruption Frequency Customer Average Interruption Equivalent Availability Factor (in %) Index (Times) Duration Index (In minutes) TPC PEDC 1&2 PEDC 3 PPC 1&2 PPC 3 PPC 4 GPRI CEDC TPC 1 TPC1A Carmen 1.88 106.48 1.80 97.79 109.18 2019 91.8 91.3 90.1 69.2 98.5 95.7 92.4 52.2 91.8 81.1 1.77 2018 90.0 88.8 95.4 47.0* 94.1 77.5 95.2 79.2 93.1 90

Equivalent Forced Outage Rate (in %) TPC PEDC 1&2 PEDC 3 PPC 1&2 PPC 3 PPC 4 GPRI CEDC TPC 1 TPC1A Carmen 2019 1.4 1.1 3.2 79.6 7.8 1.8 1.1 43.2 3.1 42.5* 2018 2.2 1.0 0.5 98.3 36.1 23.4 1.1 15.6 1.3 5.8 2017 2018 2019 2017 2018 2019 *Underwent extended preventive maintenance schedule

LRMC Average train cycle time (in minutes) Average train waiting time during Average train waiting time during Number of train failure Frequency of train failure peak hours (in minutes) non-peak hours (in minutes) incidents (in minutes) incidents 102.5 99.7 100.3 3.5 3.4 3.3 4.3 4.3 16.6 16.6 11. 3 3.9 14.0 8.6 5.7

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

53 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Service Excellence Overview of Our

CUSTOMER EXPERIENCE FEATURED HOSPITALS Customer Experience We constantly monitor and respond to our At MMC, its Patient Relations Department continues customers’ feedback in order to achieve continuous to process all patient feedback, whether medical or improvement in service delivery. non-medical. Feedback is shared with the concerned Customer Satisfaction units for their appropriate action, both corrective and MERALCO (Out of 10.00) TOLL ROADS preventive. Patients are assured that their feedback NLEX received more complaints in 2019 due is acknowledged and given due attention. Moreover, to several systems issue with the electronic toll the Patient Experience Program was launched last 8.47 8.40 8.28 8.43 Residential General Services Corporate Businesses collection system. Technical improvements were put year to augment the hospital’s efforts in proactively in place during 2019 that NLEX hopes will reduce the improving our patient’s satisfaction to a level that incidence of system issues in 2020. would exceed their expectations thereby ensuring 8.11 8.30 a positive patient experience. The first three areas Local Government Units National Government Offices WATER prioritized were Emergency Department, Radiology Maynilad experienced less service-related complaints Services and In-patient Dietary Services. Focus in 2019 due to its proactive announcements group discussions with the department leaders are NLEX / SCTEX CAVITEX of rotational water shortage. In 2018, Maynilad conducted with the aim of decreasing negative had water availability issues due to emergency patient feedback and improving patient experience. 16,535 99% 787 maintenance of the Putatan Water Treatment Plant Patient visits are routinely done to offer assistance Number of Resolution rate Number of and high turbidity of raw water coming from the Ipo and get feedback on patient experience. This complaints complaints Dam. These 2018 events were unplanned leading to proactive approach has resulted in more patients unannounced water interruptions. expressing delight and reporting high-levels of MAYNILAD service satisfaction. 45,891 44,459 38,161 Service-related Billing-related Application complaints complaints requests

54 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Service Excellence

KEY PERFORMANCE INDICATORS CUSTOMER SATISFACTION

MERALCO (Out of 10.00) NLEX / SCTEX CAVITEX Residential General Local Businesses Corporate National Overall Number of Resolution rate Number of Resolution rate Services Government Government complaints complaints Units Offices 8.42 8.47 8.43 8.47 8.43 8.49 16,535 100% 100% 99% 8.23 8.40 8.38 8.23 8.24 8.28 8.56 8.41 8.30 8.39 8.25 8.37 2,416 100% 100% 100% 8.09 8.11 8.15 14,136

8,824 1,394 787

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

Maynilad Number Survey Scores (Out of 5) Overall percentage “Delighted” patients Service-related Billing-related Application Installation AHI CSMC DDH MMC complaints complaints requests requests *DDH was only added to the scope of this report beginning 2018. 56,652 42,081 91% 93% 94% 93% 60,894 41,231 30,121 93% 89% 81% 97% 91% 96% 54,185 38,161 28,785 25,064 73% 45,891 42,919 44,459

3.83 3.99 3.97 3.87 3.98 3.95 3.43 3.58 3.42 3.43 3.59 3.51

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

55 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

HIGHLIGHTS FOR 2019 MakatiMed bags 3 awards in Infection Prevention and Control The Infection Prevention and Control Program of Makati Medical Center earned recognition from the Philippine Hospital Association (“PHA”) as it recently won three awards in the Hospital Best Practices in Infection Prevention and Control Awards Year VI at the organization’s 70th Annual National Convention held last November 21, 2019 at Manila Hotel.

The competition, which aims to encourage hospitals to maintain the highest standards in the prevention and control of healthcare-related infections, recognized MakatiMed as the Overall Winner out of 19 participating hospitals for Level 3 for its extraordinary application of science-based methods for decision making in everyday Infection Control Problems in a third-level hospital setting. Most notably, the timely detection and HIGHLIGHTS FOR 2019 management of a Burkholderia cenocepacia bacteremia outbreak in 2018, led to the CAVITEX introduces EasyDrive DOH-FDA to prohibit the sale of a specific batch of contaminated Nicardipine vials. MPTC has introduced the latest Radio Frequency Identification (“RFID”) technology to ease travel through major toll roads in Northern and Southern Luzon. EasyDrive MakatiMed also received the Best in Healthcare Waste Management Award for Level (powered by EasyTrip) is the country’s first RFID sticker tag used for toll payment instead 3 hospitals based on its laudable efforts on innovation and technology for advanced of cash. Attached to a vehicle’s windshield or headlamp, it can be used at EasyDrive methods and procedures in healthcare waste management. Exclusive environmental dedicated or mix toll lanes on CAVITEX, NLEX and SCTEX. To leverage the value of rounds were done regularly by the IPC in clinical areas extending to concessionaires this new technology for the community at large, MPTC has signed a memorandum to measure compliance with existing policies and programs. A database for hazardous of agreement with the Metro Manila Development Authority (“MMDA”) to provide materials was maintained to monitor adequate and appropriate storage and disposal. RFID sicker tags for 100 emergency vehicles. The partnership is expected to speed up MMC was able to set a new benchmark for a third-level health facility through emergency response vehicles’ entry and exit to our toll roads. outstanding performance in governance, surveillance and evaluation.

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Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Service Excellence

CUSTOMER SAFETY HIGHLIGHTS FOR 2019 AHI recognized as a leading hospital Management Approach In 2019, Healthcare Asia Magazine awarded AHI the “Hospital of the Year – Philippines” and also recognized Disruption to the quality and continuity of services delivered by our its performance in several categories including, ICT Initiative of the Year, Service Delivery Innovation operating companies can have significant impacts on the safety and Initiative of the Year, and Patient Care Initiative of the Year. Under a separate scheme, AHI became one well-being of customers and the public at large. We recognize our of only five hospitals from the Philippines to receive a Hospital Management Asia (“HMA”) Award for responsibility to uphold regulations and voluntary codes concerning Innovation in Hospital Management Excellence. This was AHI’s third time to receive a prestigious HMA health and safety impacts of our services. In addition to implementing award in just two years, demonstrating its firm commitment to excellence in patient care. integrated management systems that promote and protect customer safety, we invest in appropriate technologies and foster a strong safety culture among our employees and contractors. MMC CSMC Gold Status for In 2019, CSMC has gained three international recognitions from In 2019, the Company was not aware of any non-compliance with stroke practice Asian Hospital Management Awards and Accreditation Canada regulations and/or voluntary codes concerning the health and safety of from the World International. The hospital has acquired the GOLD AWARD from Stroke Organization ACCREDITATION CANADA INTERNATIONAL in December 2019, services provided by our operating companies. ANGELS Award which raised the standards of patient safety in the institution. POWER DDH CSMC was given an Excellence Award for PROJECT ERRAND (ELECTRONIC REAL-TIME ROUNDS ACTIVITY FOR NURSING MERALCO maintains its record of strict compliance with relevant industry Industrial Peace DIVISION), a technology innovated by its Nursing Services to collect standards by striving to mitigate all safety risks from its operations for Award: 2019 real-time feedback from in-patient customers and generate reports customers and the public. These risks may arise from power supply Outstanding Labor through its Dashboard to guide the hospital administrators and Management managers for decision making. interruptions affecting critical community facilities, accidents involving Committee power distribution infrastructure located near neighboring communities, Gold Award was also given by AHMA to CSMC recognizing the and unsafe use of electricity. MERALCO’s corporate website features Excellence Award: training and development contributions of its PHILIPPINE CENTER 2019 Hospital FOR ADVANCED SURGERY MINIMALLY INVASIVE SURGERY safety tips for home safety–including what to do in the event of a Management TRAINING CENTER, educating nurses and doctors across the country typhoon, earthquake or fire – and construction safety. Awards with high standards of minimally invasive surgery.

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Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Service Excellence

TOLL ROADS NLEX AND SCTEX CAVITEX Safety and security protocols in our toll road operations revolve around 2019 2018 2017 2019 2018 2017 the Traffic Control Room of each road system where traffic management Customers fined for over-speeding 11,608 20,113 10,786 218 286 929 and safety personnel are on duty 24 hours a day, seven days a week to respond to disturbances or emergency situations within an expected Emergencies resolved 65,187 55,550 41,627 55 330 472 response time of 20 minutes. All toll roads are equipped with CCTV Patrol assistance average response 12.2 12.4 12.5 4.0 9.7 11.2 monitoring systems and patrol crews who are empowered to direct road time (in minutes) users and clear debris in order to ensure the smooth flow of traffic. The Medical service average response 15.3 15.7 15.1 9.3 8.75 9.1 patrol crews are deputized by the LTO to implement and enforce traffic time (in minutes) HIGHLIGHTS FOR 2019 laws and regulations. In the event of an accident, emergency medical Traffic incident accident response 12.8 12.7 13.0 9.8 18.5 9.3 Toll Roads emerge time (in minutes) protocols are in place to coordinate first-aid and paramedic care from unscathed from the Luzon our Emergency Medical Service teams and a network of medical aid *Incidence of over-speeding declined significantly due to the installation of automated speed earthquake trackers along the stretch of our toll roads. Having the motorists see the visible trackers discourages In April 2019, a 6.1 magnitude specialists with extraction and air transport capability. them to drive beyond the acceptable speed limit. earthquake hit several northern During busy seasons, such as Holy Week, All Saints Day, All Souls Day, and Luzon provinces. Even though Christmas, MPTC implements a special program known as “Safe Trip Mo post-earthquake assessments Sagot Ko” (“SMSK”) to enhance traffic management and toll collection interruption. Maynilad is intensifying efforts to mitigate the effects conducted by structural experts services. Additional patrol and incident response teams are on standby in of the reduced water allocation from Angat. These efforts include showed that NLEX and SCTEX strategic areas to assist motorists. MPTC and its partners also set up SMSK optimization of its two treatment facilities in Muntinlupa that did not incur major damage, Motorist Camps at designated locations along the expressways providing now produce 300 MLD per day of water drawn from Laguna Lake, some superficial cracks free calls, Wi-Fi, drinking water, basic mechanic services and first aid reactivation of several deep wells, continued reduction of water appeared in several portions in treatment. losses through sustained pipe replacement and repair activities, SCTEX Porac and Floridablanca cloud-seeding operations, and deployment of modular water requiring minor repairs. WATER treatment plants that will draw water from small rivers in Cavite. For Maynilad, changing rainfall patterns and political failure to allow for All these are expected to enable Maynilad to get additional water new water sources to be developed have led to rotational water service supply for distribution and help to ease the current deficit.

58 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Service Excellence

Overall improvement in Customer Safety metrics in CAVITEX was driven Maynilad complies with the pronouncement made by the Department by strict implementation of Anti-Over Speeding and Anti-Overloading of Health (“DOH”) on ensuring water quality distributed by water HIGHLIGHTS FOR 2019 programs. This helped improve monitoring of the toll road, thereby concessionaires to drinking standards. In October 2018, the DOH awarded LRMC 2019 Customer reducing incidents and avoidable emergencies. Patrol readiness Maynilad with a plaque of appreciation for being an active member Service enhancements improved due to better allocation of resources resulting in fewer of the Metro Manila Drinking Water Quality Monitoring Committee accidents. (“MMDWQMC”) and ensuring the provision of an adequate and potable water supply in the National Capital Region. The MMDWQMC is composed WATER of representatives from the DOH, various Local Government Units in the Public Information Displays As a water distribution company, Maynilad has implemented its Water metropolis, the MWSS Regulatory Office, and the two concessionaires. on all 3rd Gen trainsets Safety plan with the main objective of protecting the drinking public from Providing public information pathogenic bacteria such as E-coli, thermotolerant and chronic chemical LIGHT RAIL and safety reminders contamination. Maynilad mitigates this risk by performing both quality Operation of LRT-1 involves significant safety and security risks that were assurance and quality control checks to ensure that the water distributed previously exacerbated by inadequate maintenance resulting in poor to customers is compliant with the Philippine National Standard for condition of the system prior to MPIC’s investment. To mitigate these risks, Drinking Water 2017. At the plant level, the process control laboratories LRMC has established a Safety Management System, appointed a strong Free public Wi-Fi of its La Mesa and Putatan plants conduct quality assurance at every senior management team with extensive light rail operating experience 30 minutes per user in all stage of the treatment process. Likewise, at the water distribution and is implementing a combination of engineering and administrative 20 stations of LRT-1 level, Maynilad’s Central Laboratory performs quality control activities controls to enhance operations and maintenance of the LRT-1 line. through daily testing of the water quality of water samples collected from the customers’ taps at a ratio of 1 sample per 10,000 population. In February 2019, LRMC signed a Memorandum of Agreement to The locations of these sampling stations include: Valenzuela, Malabon, strengthen safety and security measures in all 20 stations of LRT-1. The Caloocan, Navotas, Cavite, Quezon City, Manila, Pasay, Paranaque, Las partnership will bring more police visibility in LRT-1 trains and stations. Maynilad drinking fountains Pinas, and Muntinlupa. Free drinking water in all 20 stations of LRT-1

59 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility Engaged Employees and Safe Workplaces

We value our people by fostering a safe and engaging work environment. In doing so we prioritize our deeply held corporate values of TEAMWORK AND EMPOWERMENT, INTEGRITY AND TRANSPARENCY and ENTREPRENEURSHIP.

This chapter addresses social impacts linked to the people who work with us, including Employee Relations and Diversity, Competency and Skills Development and Occupational Health and Safety.

For more information about … • Identified Material Topics: please refer to the ESG Reporting Methodology • Consolidated summary of KPIs: please refer to the ESG Data Summary

60 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Engaged Employees Overview of Our Employment Profile and Safe Workplaces MPIC Parent Company

EMPLOYMENT PROFILE 35 21 Female Male Management Approach 63% As part of our commitment to good governance, the Company’s Board, acting through its Audit Committee, oversees compliance of the Company’s policies and practices with relevant laws and regulations concerning employment and employee welfare, including the Labor MERALCO GBP NLEX/SCTEX CAVITEX MAYNILAD Code of the Philippines and the National Health Insurance Act.

Attracting and retaining the right talent is essential for growth of our business. The Company provides competitive compensation and benefits packages, including an incentive plan linked to profitability and share price performance, allowances, paid leaves, life and accident 2,600 5,601 190 764 742 722 75 93 565 1,653 insurance, and a retirement plan. All employees receive regular and Female Male Female Male Female Male Female Male Female Male constructive feedback on their performance. We conduct an employee satisfaction survey every two years to receive feedback and implement improvements. AHI CSMC DDH MMC LRMC

1,209 590 731 319 795 377 2,184 1,029 466 932 Female Male Female Male Female Male Female Male Female Male

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Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Engaged Employees and Safe Workplaces

Key Performance Indicators Employment by Gender Male Female 1 2019 data includes residents/fellows

MPIC Parent Company MERALCO GBP NLEX/SCTEX CAVITEX MAYNILAD

5,601 1,863 34 35 783 735 742 93 770 764 1,642 31 4,443 666 1,653 4,421 76 724 722 652 21 22 21 2,600 48 75 614 54 562 565 190 1,118 1,159 175 177 46

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

The increase in hiring AHI1 CSMC DDH MMC1 LRMC activity for CSMC in 2019 is attributed to the 26.8% 1,209 731 795 2,184 992 683 938 932 increase in separations 667 732 1,899 979 1,801 from last year. Hiring nurses 929 has been a challenge, to 365 349 361 377 462 463 466 augment this, CSMC has 590 319 1,029 490 487 834 896 opened a position for Clinical Patient Assistant to assist nurses in the operations.

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

62 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Engaged Employees and Safe Workplaces

FEMALES IN MANAGEMENT NEW HIRES AND EMPLOYEE TURNOVER 2018 The value we place on gender equality is reflected in the Number of Rate of HIGHLIGHTS FOR 2019 composition of our leadership teams. Number of Rate of Employee Employee 2019 Best companies to work for in Asia 2018 New Hires New Hires Turnover Turnover MPIC was awarded Bronze in the 2019 HR Excellence % of Senior % of Middle % of All MPIC Parent Company 8 14% 5 9% awards for the Best in Employee Retention category. Females in Management - 2019 Managers Managers employees MERALCO 315 6% 252 4% MPIC Parent Company 50% 67% 63% GBP 34 4% 41 4% MPIC acknowledges that employees are its biggest MERALCO 22% 37% 32% Featured Toll Roads 404 29% 242 17% investment. MPIC expresses commitment to the GBP 35% 34% 20% Maynilad 114 5% 83 4% advancement and well-being of its employees. Their Featured Toll Roads 32% 37% 48% Featured Hospitals 1,731 27% 1,468 23% value is considered more than how much they cost. Maynilad 33% 33% 25% LRMC 46 3% 63 4% Featured Hospitals 61% 68% 68% MPIC strives to ensure that employees receive fair LRMC 32% 27% 33% compensation and are given equal opportunities for advancement that will enable them to take care of NEW HIRES AND EMPLOYEE TURNOVER 2017 their families. NEW HIRES AND EMPLOYEE TURNOVER 2019 Number Number of Rate of Number of Rate of of New Rate of Employee Employee GBP was named one of the best companies to work Number of Rate of Employee Employee 2017 Hires New Hires Turnover Turnover for in the region by HR ASIA Magazine. This awards New Hires New Hires Turnover Turnover MPIC Parent Company 8 15% 3 6% MPIC Parent Company 6 11% 6 11% MERALCO 383 7% 413 7% program handpicks world class corporations with MERALCO 3,560 43% 2,238 27% GBP 52 5% 56 6% high levels of employee engagement, excellent GBP 54 6% 49 5% Featured Toll Roads 607 46% Data not available as of workplace cultures and high levels of job satisfaction. Featured Toll Roads 392 24% 174 17% 2017 SR Maynilad 131 6% 84 4% Maynilad 266 12% 73 3% GBP was the only company among 23 winners that Featured Hospitals 2,123 29% 1,721 24% Featured Hospitals* 1,319 26% 1,215 24% operates in the power generation industry. LRMC 94 7% 97 7% LRMC 174 12% 60 4% *DDH was added as a featured hospital in 2018 During the year, AHI also received a prestigious award from ASIA BEST EMPLOYER BRAND recognizing its outstanding performance in Talent Management, Talent Development, and Talent Innovation.

63 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Engaged Employees and Safe Workplaces

Embracing Diversity and Promoting Equal proactive and collaborative approach to maintaining There were no collective bargaining agreements in place for employees Opportunities open communication and meaningful engagement, at GBP, the Featured Toll Roads or AHI. The collective bargaining rate is a To cope with the diverse challenges of our business, including monthly coordination meetings and percentage of the total number of employees. we recognize the value of making our organization quarterly briefings, regular corporate events and more resilient by cultivating diversity of experience other activities. HIGHLIGHTS FOR 2019 and expertise in our leadership teams. We do not Training to protect tolerate harassment or unlawful discrimination of At Maynilad, management maintains continuous the rights of gender any kind, including breaches of relevant employment dialogue with two union groups, one for rank and file minorities in LRMC laws such as the Magna Carta for Women, Anti-Age employees and another for supervisors. Negotiations In 2019, LRMC partnered Discrimination Law and the Paternity Leave Act. In occur twice a year for both unions. with the Commission accordance with our Code of Conduct, we provide on Human Rights to orientations on equal opportunities and non- At LRMC, collective bargaining has resulted in the develop a series of gender discrimination to assist our employees to understand introduction of several kinds of benefits for all of sensitivity trainings for its their rights and obligations. its employees (both members and non-members), security personnel. The including a birthday leave program and two days training covers proper Constructive Relationships with Organized Labor of bereavement leave following the loss of a loved and respectful handling of MPIC respects and upholds the Philippine Labor one. LRMC is committed to evaluating the benefits commuters who identify Code, which is the key national legislation on every three years and will undertake a benchmarking as as any gender, including industrial relations, dispute settlement and social exercise in 2020 to evaluate it. LGBTQ, so that everyone dialogue that guarantees the rights of workers to may enjoy a safe and organize unions for collective bargaining. Rate of Participation in CBAs 53% 72% 45% comfortable ride. At MERALCO, two unions represent the interests of MERALCO Maynilad CSMC rank and file employees and supervisory employees, 65% 45% 19% respectively. The management team adopts a DDH MMC LRMC

64 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Engaged Employees and Safe Workplaces

Respecting the Rights of Other Workers In our featured hospitals, doctors, including In 2019, 10,107 people were employed on residents and fellows, are sometimes engaged ‘temporary’ contracts within the scope of this report. as consultants rather than employees. Reflecting Our operating companies engage contractors (who the fundamental importance of consultants are not directly employed by our organization) to to our healthcare services, they benefit from provide important services. Each company has its training opportunities and staff engagement and own policies and procedures in place to ensure wellbeing initiatives in a similar way to regular that all workers’ rights are upheld in their respective employees. workplaces. At LRMC, all potential vendors must complete an MERALCO commits to adopt global best labor accreditation process involving thorough review practices. Its ESH Committee enforces a safety of legal documentation and on-site inspections to performance campaign held every start of the ensure compliance on health, safety, environment year to refresh everyone about the safe work rules and quality (“HSEQ”). Oversight for contractors’ within company premises. Likewise, all employees performance is undertaken by a cross-functional and workers must comply accordingly to OSH Law team. HIGHLIGHTS FOR 2019 parameters. Celebrating our very own Tollway Industry’s Women of Achievement GBP follows stringent regulatory standards. In 2019, women executives at MPTC were recognized by the Suppliers and service providers are expected to Toll Regulatory Board (“TRB”) for their leadership excellence and comply with ESH policies and programs during outstanding contributions to the tollway industry. The Tollway project delivery and implementation in the Industry’s Women of Achievement Award is part of the TRB’s company’s sites. annual Gender Advocacy Program.

65 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Engaged Employees Overview of Our Training and Safe Workplaces and Development TRAINING AND DEVELOPMENT We must ensure that our workforce has the necessary breadth and depth of skills and experience to achieve our business goals in a sustainable way. Our employee Average Training Hours training and development programs are continuously evolving to meet the needs of our growing business. 40 39 We invest time and resources to get the best out of our people and give them opportunities to make 34 34 progress in their careers. 18 20 12

MPIC MERALCO GBP Featured Maynilad Featured LRMC Parent Toll Roads Hospitals Company

66 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Engaged Employees and Safe Workplaces

Key Performance Indicators Average Training Hours

MERALCO GBP Featured Toll Roads Maynilad Featured Hospitals LRMC MPIC Parent Company 24 24 19 46 71 58 33 34 18 65 40 27 20

12 31 34 39

6

7 NOT REPORTED NOT REPORTED

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

At GBP, the 16% decrease in training hours is mainly due to the increase in informal training sessions. These informal training sessions include coaching and mentoring in the workplace, and toolbox sessions. 67 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Engaged Employees and Safe Workplaces

Technical Training HIGHLIGHTS FOR 2019 Our new hires receive training to develop their technical competence and skills. Tailored GBP saves on Non-Destructive Testing ongoing professional development programs foster a culture of learning and continual GBP has introduced training to enhance its employees’ skills for examining materials, improvement among our workforce. such as Ultrasonic Flaw and Thickness Testings and Surface Method Testing. These essential services, which were previously contracted out, are progressively being MERALCO’s goal is to produce the best engineers in the country. MERALCO’s undertaken by GBP’s own employees after they acquire relevant certifications, giving technical training courses include Cadet Engineering, New Engineers Development rise to considerable cost savings exceeding P4.5M per site each year. and Lineman Development as well as several advanced courses such as Master of Engineering in Electrical Engineering and Immersion Program for Emerging Technical In addition to equipping employees with the right skills and qualifications, GBP’s Experts (Electrical Engineers). Maintenance Services Department has gone one step further with the purchase of specialized testing equipment for monitoring, detecting and predicting early signs GBP is committed to developing its workforce with the necessary skills and of equipment failure using ultrasonic frequencies. In the future, GBP plans to share competencies to fulfill its expansion plans. It has invested P300 million to establish the this expertise and generate additional income by providing testing services to third GBP Institute for Energy (“GIE”), which serves as its learning and development hub. parties. NLEX delivered over 45 training courses to enhance its employees’ technical competencies ranging from applied construction management to traffic HIGHLIGHTS FOR 2019 administration and security practices. CSMC’s junior staff achieve success with Project Apple CSMC has introduced a tailored development program for nursing underboards— NLEX acknowledges the need for providing frequent technical training to its technicians or aides who may perform various supporting roles in the hospital—to employees to improve their competence and capabilities. In 2019, NLEX provided pursue their dreams of becoming nursing professionals. The program provides financial 46 technical training sessions including applied construction management, traffic and organizational support to help participants prepare for the Nursing Licensure Exam. administration, road safety, project management, and network routing and switching. During 2019, 14 candidates successfully passed the exam and received promotions to join the hospital’s team of Caring Cardinal Nurses.

68 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Engaged Employees and Safe Workplaces

Maynilad’s Wastewater Management Division delivers a monthly learning program known The Tatak Maynilad Leader (Essentials of Leadership and Management) Program is as “Technical Talk” to keep employees up-to-date on best practices and innovations in for high-performing individuals who are being groomed for broader management wastewater treatment and management. responsibilities.

Close to one third of LRMC’s employees participated in Customer Service training. Other CSMC’s Supervisory School Program is targeted at mid-level leaders with emphasis basic training programs focused on safety, including Safety Communication to address on enhancing operational efficiency and patient safety. More than half of employees proper reporting procedures and Basic Train Intervention for first responders to enhance completing this program have been promoted to leadership roles. emergency preparedness. Training Nearly three quarters of employees at MMC attended Basic & Advance Life Support As part of our operating companies’ commitment to integrated management systems, Programs to ensure every patient encountering cardiac or respiratory arrest within the they must ensure their employees receive extensive training to understand what’s hospital will be attended to immediately, resulting in a higher chance of recovery. required and successfully implement organizational transformation.

Leadership GBP’s Training on ISO 9001:2015 Quality Management System is designed to provide Our leadership training programs are designed to ensure the long-term success of our its IMS Committee members, internal auditors and other employees with the latest business by supporting talented individuals to thrive in positions of leadership. information to enable them to apply any changes or updates in the standards to their areas of work. In 2019, GBP’s Leadership Programs were attended by 14% of employees, including its Supervisory, Management and Executive Development Programs. Maynilad’s International Trade Center Supply Chain Management Certification Program is a practical training pack designed to make effective international purchasing and supply NLEX runs the Ateneo Leadership Management Development Program and De La chain management a key driver for business competitiveness and long-term success. Salle Management Development Program to help bring on the next generation of leadership. For more information about… • Ethics training: please refer to Business Ethics • Safety training: please refer to Occupational Health & Safety

69 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Engaged Employees and Safe Workplaces

OCCUPATIONAL HEALTH AND SAFETY means to the immediate head/supervisor. The immediate head/supervisor will conduct At MPIC, health and safety at work involves both the prevention of harm and the initial investigation and accomplish the supervisor’s incident report within 24-hours after promotion of health and wellbeing for all workers. Given the diversity of their services having been notified. Lastly, the Safety Officer, together with the concerned immediate and operations, MPIC’s operating companies ensure that there is a Hazard Identification, head/supervisor and the Environment, Safety and Health (ESH) Committee shall lead the Risk Assessment and Determining Control in place to address risks and impacts. Each of final investigation of the incident. The final investigation report shall be finalized within our operating companies faces a unique set of health and safety risks for their workers, five working days after the date of investigation. If necessary, a Clinic Report shall also be ranging from slips, trips and falls, to exposure to dangerous chemicals, moving objects accomplished by the resident nurse and/or doctor. and heavy equipment, as well as specific risks associated with performing underwater or medical procedures. At the power plant sites, toolbox talks take place at the beginning and end of every shift beginning and end of a shift, and a proper turnover is conducted every end of shift. SAFETY TRAINING Immediate Heads/Supervisors brief subordinates, including contractors for the activities In accordance with relevant regulations and agreements, our operating companies and control measures to mitigate hazards on a per shift basis. As an added initiative of report on their Occupational Health and Safety (“OHS”) policies and performance to the the company, GBP provides each employee with a “Go bag” (Survival Kit) which includes Department of Labor and Employment (“DOLE”) Bureau of Working Conditions. hard hat, first aid kit, flashlight, whistle, candle and other identified essential items.

Specific work-related health and safety risks faced by employees and contractors of each MERALCO implements an identification, communication and engineering strategy to of our principal operating companies are discussed in the risk factors section of MPIC assess risks and eliminate hazards. In the event of any health and safety threat, each 2019 SEC Form 17-A. facility and operating center have designated safety officers and emergency health services to mitigate the situation. A daily safety huddle is practiced in the operational In 2019, GBP’s Safety Training Programs were attended by over 60% of employees, sites. This 5 to 15-minute huddle checks the mental and emotional condition of line including 8-hour Mandatory OSH Training, 40-hour Fundamentals of Industrial Hygiene men, daily check of PPE, discussion of safety issues and near miss, safety reminders and Training, and Occupational First-Aid Training with Basic Life Support. a moment of prayer. Likewise, a Hazard Hunter App and Incident Reporting tool were created to promote hazard identification efficiency. GBP ensures its Hazard Identification, Risk Assessment and Determining Controls (HIRADC) process is in place. The control measures set to counteract the risks identified with hazards NLEX, CAVITEX, and Maynilad created health and safety committees who meet monthly are further evaluated through a Plan-Do-Check-Act (PDCA) Cycle. For the Incident-Accident to discuss occupational health and safety concerns of the workers. Each department Investigation and Reporting Procedure, the employee reports directly with the fastest has at least one representative in the committee. Employees are encouraged to discuss

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Engaged Employees and Safe Workplaces any safety related concerns with the representative to be raised during the monthly areas. These risks are then studied by a committee who determines the root cause and huddle. The planned action to address these concerns are then discussed with level of urgency. For highly critical concerns, these are to be addressed within 24 hours. management for consideration. Specific work-related health and safety risks faced by employees and contractors of each For the healthcare group, preventive hazard measures are established such as job of our principal operating companies are discussed in the risk factors section of MPIC hazard analysis, environment of care inspection and routine rounds and safety 2019 SEC Form 17-A. officer’s regular inspection. Consequently, to protect our high risk workers, such as radiation workers, these workers are rotated to other floors or assigned to do In 2019, a driver fell asleep while driving along NLEX, which caused the driver to administrative tasks to reduce the amount of radiation absorbed by the body. In this accidentally hit an NLEX patrol officer. The accident fatally injured the NLEX employee. manner, we maintain the health and wellness of our workers. Due to this incident, NLEX improved the visibility of its employee’s attire and equipment with better reflectors. Also, NLEX installed additional rumble strips to further avoid CSMC is committed to upholding a safe and secure working environment. Its accidents. Multiple refresher sessions were held to remind the patrol officers of the safety Workplace Safety Training comprises a three-part program focused on Prevention of protocols of the company. Workplace Violence, Patient and Workplace Safety and its Code of Ethical Conduct. Since work life balance of employees is important to the organization, well-being DDH has introduced a Work-life Balance Training Program attended by 100% of initiatives have been conducted through out the year. The programs conducted employees to help reduce absenteeism, and increase productivity. are wellness talk / wellness fair launch, sports related activities, family day and free interpretation of Annual Physical Examination results amongst others. Maynilad and LRMC Similar to the toll roads and Maynilad businesses, LRMC also established a committee to also require employees who are exposed to certain risks (e.g., auditory and/or visual) are discuss the health and safety issues of its employees. On top of this, LRMC’s RIA app allows required to undergo additional tests during their physical examination. all employees, as well as customers, to report hazards or risks identified in its business

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Key Performance Indicators Dash denotes zero

Employee Occupational Health & Safety Parent MERALCO GBP NLEX/SCTEX CAVITEX MAYNILAD AHI CSMC DDH MMC LRMC Company Workers covered by OHSAS management system Employees Number 8,201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 Other workers Number Not Reported 1,302 139 94 333 237 Not Reported 16 1,072 48 - Employees covered by OHSAS management system Percent 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Other workers covered by OHSAS management system Percent Not Reported 100% 100% 100% 100% 100% Not Reported 100% 100% 100% 0% Total fatal cases from work accidents Number - - 1 - - - - - Total occupational injuries Number 74 8 5 - - 2 11 23 532* 4 - Total lost working days due to injuries Number 209 - 12 - - 8 - - 44 - Total no. of occupational diseases Number Recalibration - - - 14 - - 10 - - No. hours of health & safety training provided to Employees Number 58,768 238 3,384 124 36,649 96 348 77 13,996 3,348 - Safe Man-Hours Hours 12,466,548 2,326,247 4,090,272 781,540 4,417,519 2,811,392 2,217,600 1,987,200 6,785,856 2,030,361 117,376 Number of safety drills Number 324 78 2 2 57 319 3 12 4 9 5 Hours worked Hours 12,466,548 2,326,247 4,103,424 781,540 4,417,519 2,811,392 2,217,600 1,987,200 6,785,856 3,189,229 117,376

*Includes needle stick injuries

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Occupational Health and Safety Management Systems Our operating companies have occupational health and safety management systems (“OHSMS”) in place that conform to local regulatory requirements and internationally recognized standards. These systems help us to continuously improve our OHS performance by developing and communicating appropriate OHS policies. MPIC’s operating companies ensure that there is a Hazard Identification, Risk Assessment and Determining Control in place to address risks and impacts to the employees.

Internationally Recognized Standards Adopted

OHSAS Joint Commission ISO 45001:2018 18001:2007 International MERALCO, NLEX GBP’s Power Plants, Accreditation Maynilad AHI, MMC

Accreditation Canada ISO 9001:2015 LRMC, CSMC International Gold HIGHLIGHTS FOR 2019 Standard LRMC introduces new safety app DDH, CSMC In 2019, LRMC introduced a Recognition Information Action (“RIA”) safety mobile application for its employees to report hazards or potential danger they see in their workplaces, including all LRT-1 stations. The app is available for download on Google Play Store and App Store.

A full list of relevant certifications received by our operating companies is available in our Annex. 73 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Occupational Health and Safety Management Systems Features

Key features of OHSMS Highlights  Establish an OHSMS  Develop an OHS Policy  Analyze OHS Hazards and Select Controls GBP’s power plants implement Hazard Zoning and Personal Protective Equipment mapping. All activities are governed by a Permit-To-Work System.

 Establish Responsibility and Accountability MERALCO’s Networks Operational Safety Council ensures that work tasks involving LRMC’s management by walking around’ safety intervention program ensures senior significant hazards are properly assessed and addressed. managers will develop a sound understanding of OHS issues and concerns.  Ensure Competence and Provide Training GBP has an Annual Training Plan which includes ESH-related trainings. All new hires at LRMC complete a comprehensive online HSE induction program.

 Establish OHS Communication and Participation Employees participate in formal joint management–worker health and safety committees. At GBP, all contractors receive on-site safety orientation training.

 Control OHS Documents LRMC has implemented Assai document control and management software for its OHS records in line with industry best-practice.  Promotion of worker health Employees and workers have access to non-occupational medical and healthcare services Maynilad monitors employees who are at higher risk for exposure to chemical and through the national Social Security System, the national health insurance program— physical hazards. Employees and their dependents enjoy access to emergency, out- PhilHealth—as well as other supplementary medical benefits. patient and in-patient medical services as well as annual vaccination and oral health programs. LRMC provides Annual Physical Exams for all employees. Our hospitals implement a Drug-free workplace enforced by random HIV and drug testing. In addition to annual medical examinations, we provide vaccinations for our health workers.  Establish an OHS Emergency Management Process Under GBP’s Emergency Prevention and Response system, fire detection and suppression MERALCO’s Business Continuity Management team is responsible for strategy systems are regularly inspected, tested and maintained. Emergency response procedures and governance of company-wide business continuity plans with the objective of have been established and are the subject of regular training and drills. enhancing safety and organizational resilience.  Investigate Incidents and Take Remedial Action Under GBP’s Behavioral-Based Safety program, a Safety Observation System monitors safety incidents and hazards reported by employees and other workers to ensure appropriate corrective actions and preventive measures are put in place.

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This chapter provides information on the elements of our Sustainability Framework relating to Community Engagement, Educational Support, Greening Initiatives and Disaster Relief and Response.

For more information about … Identified Material Topics: please refer to the ESG Reporting Methodology Consolidated summary of KPIs: please refer to the ESG Data Summary

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Social Responsibility HIGHLIGHTS FOR 2019 New NLEX project a “Game Changer” for the local economy In September 2019, NLEX Corp broke ground on its P1.6 billion expansion of Subic ENTERPRISE RISK MANAGEMENT - SOCIAL RISKS Expressway, which is expected to provide a significant boost to the local economy by MPIC’s core business is to invest in services such as power, transport, water, and healthcare increasing the tourism potential of Subic and attracting more investment to Central Luzon. that are essential for sustainable development of local communities. Despite our best efforts, The project, which is expected to be completed by 2022, will expand the current one- specific groups can be negatively impacted by our activities and some may not benefit as fully lane SFEx to a two-lane configuration for each side, and build two bridges in Jadjad and as others due to poverty or other constraints. As responsible corporate citizens, we recognize Argonaut as well as a new 8.2 km tunnel parallel to the existing one. there is always more we can do to listen and respond to the needs of our stakeholders in local communities. In the design and implementation of this project, NLEX Corp. has adopted several POWER additional measures to benefit the local community. For example, by committing to plant Under its Energizing Partnerships Program, MERALCO works with local government units in the 100 new seedlings for every tree cut down during construction, and by upgrading the Province of Rizal to improve access to safe and affordable electricity. Throughout its franchise entire thoroughfare with expressway-standard LED lights to enhance public safety. area, MERALCO assists low-income households to satisfy the financial and documentary requirements for service applications. MERALCO also supports its customers to make small- the National Housing Authority. Face to face dialogues with affected families often help them scale investments in renewable power (up to 100 kW capacity) while ensuring the safety, to appreciate the benefits of road construction even if it involves resettlement, such as better stability and sustainability of the grid. Through its Net-Metering program, any excess electricity housing and new employment opportunities. NLEX Corp gives priority to local residents when that is not consumed by the customer will be compensated via credits on their monthly bill. hiring construction workers for its projects. TOLL ROADS MPTC’s ambitious road-building projects bring many social and economic benefits to local CAVITEX also has a dedicated ROW team who liaises and coordinates with government communities but invariably cause inconvenience during the construction phase. Residents agencies, local governments, formal and informal settlers for the resolution of ROW concerns who occupy sites where new roads will be built may wish to protect their rights to stay and to facilitate acquisition of ROW. In addition, there is a Central ROW, the members of which and resist resettlement. Consequently, right-of-way acquisition (“ROWA”) has become a big are the ROW teams of NLEX/SCTEX and CAVITEX, where common or collective ROW issues and stumbling block for many national infrastructure projects. concerns are discussed and resolved, including the determination of strategies and actions moving forward. To mitigate these risks, NLEX Corp has a dedicated Right-of-Way Task Force responsible for liaising with all stakeholders in accordance with the “Lina Law” (RA 7279/ Urban Development “As good corporate citizens, we have to take into consideration the plight of those who have to and Housing Act of 1992), including informal settlers, landowners, Local Government Units and give way to progress.” Rodrigo E. Franco, MPTC President and Chief Executive Officer

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Social Responsibility HIGHLIGHTS FOR 2019 Maynilad supports Project “Kubeta Ko” In early 2020, Maynilad signed a memorandum of agreement with the DENR, the city government of Manila, and the MWSS to participate in the “Kubeta Ko” project. This joint effort to provide safe and appropriate ~340,000 ~240,000 2,180 sanitation services for the urban poor will provide toilet facilities for informal P Lifeline accounts P Low-income P Households receiving settler families as part of households served senior citizen discounts the Government’s initiative to rehabilitate Manila Bay. WATER unable to access Maynilad’s services water vendors to procure overpriced Under the project, 400 portable toilet units will Maynilad’s Pro-poor Water Service due to legal, financial and technical and frequently contaminated water. be donated by the Bill and Delivery Schemes benefit over reasons. Extension of Maynilad’s Concession Melinda Gates Foundation 400,000 indigent households in its Agreement to 2037 has paved the and Maynilad will be concession area, including Lifeline Maynilad’s Pag-asa sa Patubig way for increased investment in responsible for collecting customers and low-income and Partnership (“P3”) has helped to water infrastructure that benefits and treating the sewage. elderly households. In addition connect over 700 underprivileged poorer communities as well as to offering flexible, long-term families from informal settler more affluent areas. Expanding payment schemes for water service communities to its distribution the area of the sewerage network applications, it helps to organize system in Barangay Talon Tres, causes particular inconvenience for residents of poor urban areas into Las Pinas City (Molave Extension motorists and local communities HIGHLIGHTS FOR 2019 cooperatives that can oversee the Riverside Neighborhood because sewerage pipes must be provision of affordable drinking Association Inc.) and in Barangay laid very deep into the ground. To Study on community-based sanitation and SWM program water for their communities. Habay 1 Bacoor City (‘Bahayang minimize the negative impacts of In 2019, Maynilad partnered with France-based NGO Eau et Vie and Water Through a social enterprise model Nagkakaisang’ Association, Inc.) this kind of work, Maynilad uses and Life Philippines to implement a feasibility study aimed at overcoming advocacy, Cavite business area and Before assisting these P3 beneficiary trenchless technology that helps the challenges of septage collection from informal settler communities, Muntinlupa-Las Pinas business communities, the residents relied on speed up implementation. and combining sanitation with a solid waste collection scheme in the West area have successfully addressed Zone. The study ran from December 2018 to December 2019 in the P3 For more information… coastal community of Pugad Ibon. the water woes of informal settler Please refer to Maynilad’s Partnerships for Water Resource Rehabilitation: families who otherwise would be Operational Efficiency Environmental Risk Management 77 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

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Social Responsibility HIGHLIGHTS FOR 2019 LRMC reduces noise pollution LIGHT RAIL the project and reduces negative LRMC is working hard to reduce noise pollution LRMC is working closely with DOTr effects on ground-level traffic by from its network. Since 2017, local communities and Light Rail Transit Authority to transporting viaducts above-ground living and working in the vicinity of the LRT-1 implement the LRT-1 Extension rather than street-level. line between Tayuman and Blumentritt stations Project smoothly and efficiently For more information about… will have noticed a big improvement following under the government’s “Build Build • Expansion of EDSA station, please the installation of new parapets and noise Build” scheme. To mitigate impacts refer to Contributions to our barriers. LRMC’s monitoring activities confirm that on local communities, an above- Nation-building. between February 2017 and September 2019, the ground launcher construction • Customer Service enhancements, average level of daytime noise decreased 13% methodology has been deployed please refer to Service Excellence. from 79.20 dB to 66.98 dB at street level. that allows for faster execution of

HIGHLIGHTS FOR 2019 LRMC helps to green Manila In support of the local government’s initiative to create 1,600 hectares of green space in central Manila, LRMC has transformed two concrete pillars beneath the LRT-1 line running between Central Station and Manila City Hall into green vertical gardens. The composition of plants, including bird’s nest fern, manaog ka irog, and philodendron heartleaf, has been carefully selected to help fight air pollution. “We share the vision of Mayor Isko to create a more vibrant, green, and improved City of Manila.” Juan Alfonso, LRMC President and Chief Executive Officer

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Social Responsibility

COMMUNITY INVESTMENT Our businesses contribute to sustainable development in three pillars of our framework (Operational Efficiency, Service Excellence and Engaged and Safe Workforces) during the course of day-to-day operations, but as responsible corporate citizens we must go further. To supplement our contributions to nation building through our normal business practices, we implement community programs that are designed to reach the most vulnerable people and help tackle some of the most intransigent development problems facing our communities.

Our community investment programs focus on poverty alleviation, educational support, environmental protection, and disaster response and relief.

CORPORATE SOCIAL RESPONSIBILITY

Metro Pacific Investments Foundation Metro Pacific Investments Foundation (“MPIF”) is a constituent of the Corporate Social Responsibility Council of the Manuel V. Pangilinan (“MVP”) group of companies, known as “Tulong Kapatid”. Its community investment strategy is focused on community-based initiatives for poverty alleviation, education and environmental conservation.

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Social Responsibility MPIF KEY PROGRAMS

Shore It Up! Mano Amiga Our Shore It Up environmental program was 2019 Highlights MANO AMIGA is a non-profit organization established in 2008 established in 2007. • 99% reduction in mangrove cutting and 95% that has developed into a highly impactful social development reduction in illegal fishing (Del Carmen) program with support from MPIF. Aim • Support for startup of new tourism-related • Working with local government units to promote enterprises (Del Carmen) Aim eco-tourism and environmental sustainability • Capacity building for 36 Marine Guardians and • To provide quality education for children from low-income Marine Eco-Guides (Puerto Galera, Misamis Oriental, through programs that help conserve and protect families Del Carmen and Alaminos) valuable coastal and marine ecosystems. • Certified seven new dive scholars from MPIC, One Key Activities MERALCO Foundation and the Rotary Club of Makati Key activities • Annual 1 million scholarship grant for students at the Mano – Lumina • Marine Protection, Inspection, and Conservation • Conducted an underwater clean-up, mobilizing the Amiga Academy (MPIC) Guardians program and the annual Shore largest number of volunteer divers SIU has to date • Annual 500,000 teacher training and benefits support It Up! Weekend to focus on environmental rescue, restoration, and revival • Mangrove Eco-guides and Mangrove 12,171 volunteers participated in a nationwide coastal and underwater 2019 Highlights Propagation/Protection and Information Centers clean-up in Cordova, Cebu, Alaminos Continues to provide in Alaminos, Pangasinan and Del Carmen, Siargao City, Pangasinan, Mabini, Batangas, scholarship for 23 scholars to focus on developing knowledge about Puerto Galera, Oriental Mindoro and and teachers’ professional mangroves’ and their benefits Surigao Del Norte development at the • Health It Up! Medical mission directed towards 18 MPIC volunteers hosted volunteers helped to plant Mano Amiga Academy, 800 a summer program for the coastal community partners with limited access 300 mangrove seedlings in Alaminos Parañaque City to quality healthcare students • Capacity building for partner organizations 9 Marine Protection, Inspection and Conservation Guardians received open water scuba training

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Social Responsibility

CALAMITY AND OTHER SOCIAL DEVELOPMENTS MPIF contributed to several relief operations throughout 2019

From Makati to Marawi Relief operations in Itbayat, Batanes MPIF contributed to the development of a rural MPIF, in partnership with other “Tulong Kapatid” health centre by creating a play and learning Foundations, contributed to the relief operations for the corner for the children in the local community. The victims of the July 2019 earthquake. The Foundation Foundation donated playmats, educational posters donated 30 Tulip tabletop water filters, as well as an and toys, and books. Automated External Defibrillator unit to the local government.

HIGHLIGHTS FOR 2019 Brgy. San Antonio Fire Outreach Program Another triumph for rural electrification with renewable energy MPIF, through Alagang Kapatid Foundation, Inc., provided relief In July 2019, MERALCO inaugurated the first phase of its power microgrid at Cagbalete Island in Quezon support to the fire victims in Barangay San Antonio, Quezon City. Province. The microgrid’s hybrid generating plant features a 60 kW solar PV system, 150 kWh battery energy storage, and two units of 30 kW diesel generators. It will provide uninterrupted power 24/7 for local residents of the island.

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Social Responsibility

ONE MERALCO FOUNDATION One MERALCO Foundation (“OMF”)—formerly known as MERALCO Millennium Foundation—is the social development arm of Household MERALCO. It is a donor institution accredited by the Philippine Electrification Program Council of NGO Certification and a registered social welfare and Provides affordable and development agency under the DENR. In partnership with other safe electric service businesses and government agencies, MERALCO’s employees in organized depressed volunteer their time through OMF to deliver sustainable energy communities solutions and other support for off-grid communities. 118 communities Social Development 8,266 Program 21,557 low-income households families

Energy Education Program Seeks to develop teachers’ skills and provide tools for School Electrification Program teaching energy concepts Brings electricity and technology to off-grid public in partnership with schools located in remote island and mountain the Coalition for Better communities both within and beyond MERALCO’s Education franchise area 79 33,282 schools students Youth Development 20 4,055 146 Program schools students teachers 1,173 youths

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Social Responsibility

GBP CAVITEX GBP works closely with local CAVITEX has several programs communities to help improve working with local partners on provision of basic health, environmental protection. education and other social development services.

Coastal Clean Up and International Coastal Clean Up Scholarship Program Promote safe, clean and green Support for poor students demonstrating eco-tourist tollways academic excellence in the adopted barangays Program cost: P170,000 Program cost: P8.1 million 428 385 15 Elementary High School College students

Coastal Clean Up and International Coastal Clean Up Social Development Program Adopt-a-Health Center Support for health centers Reducing impacts of air pollution Improves the quality of life in and improving expressway in adopted barangays PLDT Bougainvillea and adopted barangays. aesthetics Program cost: P4.2 million Program cost: P5.7 million Lantana Planting Activity Program cost: P60,000 Greening Cavitex Aguinaldo 14 projects 20,610 29 adopted health centers Boulevard in Parañaque City (Aklan, Cebu families (Aklan -3, Cebu - 5, and Iloilo) Iloilo - 20, Mindoro - 1) Program cost: P120,000

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Social Responsibility

MAYNILAD In order to address broader social development Brigada Easkwela Daloy Dunong issues concerning access to clean water, sanitation Refurbishment of Promoting good hygiene, and hygiene, Maynilad works closely with schools classrooms and waste management and other key customers in its franchise area to upgrading of water and water conservation ensure proper provision of drinking fountains, bidets and sanitation facilities practices in schools and signage advocating good hygiene practices. It Program cost: P1.2 million also works closely with vulnerable communities to Program cost: P450,000 150,000 help them establish sustainable sources of income. “Water Warrior” ambassadors 540 schools

Ginhawash Kapwa Reinforcement of Partnering with the healthy behavior women of STM-Tondo through installation to provide them with of 500 bidets and 200 livelihood support drinking fountains 25 members Program cost: P450,000 Program cost: P340,000 Lingkod Eskwela 12 4 Donation and installation of high schools hospitals drink-wash areas in 50 schools Program cost: P8 million 5 20 health LRT centers centers

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Social Responsibility

Ginhawa HIGHLIGHTS FOR 2019 Gardening Maynilad expands Ginhawa Gardening Urban gardening campaign campaign In 2019, ten public schools participated Program cost: in Ginhawa Gardening: Maynilad’s urban P304,000 gardening campaign, including five schools in 10 Caloocan City (North) and five schools in Las schools Pinas City (South). This is only the second year that the campaign has been implemented outside of Paranaque City. In addition to installing vertical gardens with drip irrigation systems at the schools, Maynilad conducted “green lifestyle” workshops for the students with the aim of reinforcing positive messages Sining Ipo about good nutrition, good hygiene and Harnessing the power of art to provide environmental protection. livelihood support for Green Badge indigenous craftsmen The urban garden campaign started in Upcycling retired Maynilad uniforms for in Ipo Watershed 2016 in support of the Paranaque City local donation during disaster relief operations Program cost: government’s home food security program. Program cost: P1.6 million P709,000 As a testament to the campaign’s enduring success, 29 vegetable gardens that Maynilad 30 helped establish over four years ago are still beneficiaries going strong.

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Social Responsibility

LRMC LRMC is finding creative ways to clean up the Bikeways Project environment while engaging local communities. Constructed bikeracks at LRT Libertad station and 900m of bikeways promoting clean means of transportation Program cost: P800,000

Tactile Tiles Recycling PET bottles into decoration Cleanest Barangay Competition for new stations Encouraging local communities to Program cost: P600,000 clean up their neighborhoods 3,300 Program cost: P500,000 households

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Social Responsibility

FEATURED HOSPITALS Our hospitals offer subsidized patient programs and conduct medical missions to extend healthcare Medical Missions and Community Outreach Fundraising for Charity services to marginalized patients with financial DDH constraints. DDH DDH DDH Medical Mission at Sitio Free Clinic - Co Su Gian Blood Donation Campaign RIBBON OF HOPE Run for Marahan (Home for the Aged) Program cost: P224,000 Cancer Awareness Program cost: P152,000 Program cost: P7,000 2,242 donors Program cost: P9,900 Subsidized Patient Programs 478 beneficiaries 63 beneficiaries 184 participants

AHI CSMC MMC CSMC CSMC AHI Medical Assistance for Medical Assistance for Medical Missions Free Medical Services at San Free Medical Services at MVP Swing Fore Charity In Patients Charity In Patients Program cost: P327,000 Felipe Parish Clinic Cares Medical Mission Charity - Golf-For-Cause Program cost: P183,000 Program cost: P17.8 million 15,000 beneficiaries Program cost: P1 million Program cost: P221,000 Program cost: P810,000 61 beneficiaries 901 beneficiaries 1,500 beneficiaries 100 beneficiaries 8 volunteers

MMC CSMC AHI CSMC Subsidized surgery for Medical Assistance for Community Outreach - World Day of the Sick thyroid patients Charity Out Patients “Harana para kay Lolo at Lola” Medical Mission at Tondo, Program cost: P35,000 Program cost: P8.0 million (Muntinlupa) Manila 9 beneficiaries 12,400 beneficiaries Program cost: P103,000 Program cost: P149,000 103 elderly beneficiaries 350 beneficiaries

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Social Responsibility

BRIGADA ESKWELA Several of our operating companies support the Department of Education’s CSMC annual maintenance week known as “Brigada Eskwela” to help public schools Wellness Activity for prepare for the opening of the new school year. Pinaglabanan Elementary School Teachers Program cost: P151,000

DDH Bolton Elementary School Community

GBP Maynilad Program cost: P525,000 Program cost: P450,000

23 170 adopted schools schools *DDH did not incur program cost for 2019. The “Brigada Eskwela” activity will be conducted on or before June 2020.

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Operational Efficiency Service Excellence Engaged Employees and Safe Workplaces Social Responsibility

Social Responsibility

GROUP-WIDE SUPPORT FOR DISASTER RELIEF The Philippines is a country prone to frequent and devastating natural disasters. In addition to bolstering the resilience of our own infrastructure and services to the effects of earthquakes, volcanic eruptions and extreme weather events, we see it as our duty to support the government and other non-governmental organizations to deliver emergency relief to affected communities in the immediate aftermath of these events. The contributions of our operating companies to emergency relief efforts reflects the range of resources and skills that we have at our disposal. MMC DDH 6 Assistance to victims of the Mindanao Mercy Mission doctors FAMILIES BENEFITTING FROM DISASTER RESPONSE Mindanao Quake in Matanao, in Kidapawan City Brgy. Asinan, Davao del Sur. Program cost: 11,000 2,500 beneficiaries Program cost: 240,000

7,729 618 MERALCO GBP Total Beneficiaries Total Household-Beneficiaries (families in Aklan and Mindoro)

HIGHLIGHTS FOR 2019 Maynilad mobilizes aid for evacuees in Batangas and Cavite In response to the displacement of thousands of families in Cavite and CSMC CAVITEX Batangas following the recent Taal Volcano eruption in January 2020, “Sama-Sama Sa 150 Relief Operations 180 Maynilad has mobilized its volunteers to install 10 static water tanks at Pagbangon” beneficiaries Program cost: 52,000 beneficiaries evacuation sites and deliver bottled water and other relief goods for Earthquake Mission evacuees. Program cost: 227,000

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ESG Reporting Methodology

Part Three ESG Reporting Methodology

90 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Reporting Methodology

This report has been prepared REPORT SCOPE AND TOPIC BOUNDARIES in accordance with the Global In 2019, MERALCO has expanded the boundary of reporting on its operations. There have been no other significant changes to the scope of this report Reporting Initiative’s GRI compared with 2018. The following table summarizes our shareholding of corporate entities that are within and outside the boundary of this report. Standards: Core Option. Some Within Boundary Outside Boundary additional explanations and Power 46% Manila Electric Company Manila Electric Company Subsidiaries and Subsidiaries 46% Vantage Energy Solutions and Management Inc. supporting notes are provided in 46% MERALCO PowerGen Corporation 23% Pure Meridian Hydropower Corporation this section. 30% Clark Electric Distribution Corporation 46% Lighthouse Overseas Insurance Limited 27% Shin Clark Power Holdings Inc. 22% Mpioneer Insurance Inc. 45% MERALCO Industrial Engineering Services Corporation 17% Bauang Private Power Corporation IDENTIFIED MATERIAL TOPICS 46% MERALCO Energy, Inc. 16% Aclara Meters Philippines Inc. For the purposes of this report, 46% Corporate Information Solutions Inc. 14% Rockwell Business Center 46% MSpectrum, Inc. 11% Indra Philippines Inc. ‘materiality’ refers to significant 46% MRAIL, Inc. economic, environmental and 46% eSakay, Inc. 27% Comstech Integration Alliance, Inc. social impacts of our business that 62% Global Business Power Corp. and subsidiaries 28% Alsons Thermal Energy Corporation have substantive influence on 100% MetPower Venture Partners Holdings Inc. the assessments and decisions of 100% Metropac Clean Energy Holdings Corporation Toll Roads Featured toll roads operating under Metro Pacific Tollways Corporation Other Toll Road Operating companies MPIC’s stakeholders. 75% NLEX Corporation (North Luzon Expressway and Subic-Clark Tarlac Expressway) Philippines (Under Development) 100% CAVITEX Infrastructure Corporation (Cavite Expressway) 100% MPCALA Holdings Inc. 100% Cebu Cordova Link Expressway Corporation 66% Easytrip Services Corporation For more information about… Regional Investments* • Defining Report Content: 29% Don Muang Tollways (Thailand) 45% CII Bridges & Roads (Vietnam) 2017 Sustainability Report 76% PT Nusantara (Indonesia) (page 23) and 2016 Water 53% Maynilad Water Services, Inc. 53% Philippine Hydro, Inc. Sustainability Report 53% Amayi Water Solutions Inc. 100% MetroPac Water Investments Corporation (pages 20 - 21) • Identified Material Topics: please refer to the GRI Content Index

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ESG Reporting Methodology

Within Boundary Outside Boundary MPTC holds a significant stake in three major infrastructure companies in the ASEAN Healthcare Featured hospitals operating under Metro Pacific Other Hospitals / Healthcare Facilities Region that are outside the scope of this report because the focus of our ESG strategy Hospital Holdings, Inc. 17% Asian Hospital and Medical Center 4% Manila Doctors Hospital is on nation-building in the Philippines. As the size and significance of our investments 20% Colinas Verdes Hospital Managers 10% Central Luzon Doctors outside the Philippines continues to grow, we will consider extending the scope of our Corporation (Cardinal Santos Medical Center) 10% Sacred Heart Hospital 10% Davao Doctors Hospital (Clinica Hilario Inc.) 12% De Los Santos Medical Center Sustainability Report to include these operations in future. 7% Medical Doctors, Inc. (Makati Medical Center) 13% Delgado Memorial Hospital 16% Riverside Medical Center Scope and boundary of reporting 16% St. Elizabeth Hospital 19% Marikina Valley Medical Center This table summarizes the reporting boundaries within our organization: 20% Our Lady of Lourdes Hospital 13% West Metro Medical Center Parent Featured Featured 15% Manuel J. Santos Hospital Company MERALCO GBP Toll Roads Maynilad Hospitals LRMC 10% Los Baños Doctors Hospital and Medical Center GRI 201 Economic Performance GRI 203 Indirect Economic Impacts Primary Care Centers GRI 205 Anti-corruption 8% The Megaclinic Inc. 8% Tophealth Medical Clinics Inc. GRI 419 Socioeconomic Compliance 10% Keralty Manila Inc. GRI 307 Environmental Compliance GRI 302 Energy Laboratory GRI 303 Water and Effluents 8% Medi Linx Laboratory GRI 305 Emissions GRI 306 Effluents and Waste Cancer Centers GRI 416 Customer Health and Safety Metro Radlinks Network GRI 401 Employment • 18% Metro RMCI • 10% Lipa Medix GRI 403 Occupational Health and Safety • 20% West Metro GRI 404 Training and Education • 4% Calamba GRI 405 Diversity and Equal Opportunity GRI 413 Local Communities 10% Metro CLDH 16% Metro SEHI Light Rail 55% Light Rail Manila Corporation Logistics 100% MetroPac Logistics Company, Inc. Other 20% AF Payments Services 25% Indra Philippines Inc. 100% Metro Vantage Properties, Inc. 92 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

GHG emission factors applied in 2019 ESG Reporting Methodology Emission factors Emission factors for for electricity

fuels (tCO2e/liter) (kgCO2e/kWh) Source Basis of Reporting Scope 1: Diesel 0.002685659 DENR All KPIs have been reported on a 100% basis, which means they have not been adjusted to Scope 1: Gasoline 0.002280113 DENR Scope 1: Heavy Fuel Oil (GBP only) 0.002948981 DENR reflect MPIC’s shareholdings in the operating companies. Scope 1: Special Fuel Oil (GBP only) 0.002685659 DENR Scope 2: Purchased electricity – National Grid 0.7122 2015-2017 Energy National Grid Emission Direct energy consumption has been reported in Terajoules (i.e. ‘000 Gigajoules) and Factor from DOE calculated by multiplying the mass of fuel by corresponding calorific values. Indirect Waste energy has been reported in Terajoules (i.e. ‘000 Gigajoules), with each gigawatt hour The waste data reported by our operating companies has either been collected directly (“GWh”) of purchased electricity representing 3.6 Terajoules. through internal monitoring systems or provided by accredited third-parties employed to collect and dispose of waste on their behalf. Heating values applied in 2019

Fuel (GJ/ tonne) Sources Employment, Training and Education, Diversity and Equal Opportunity Diesel 43.38 IEA Energy Statistics Manual Adopting the GRI Standards definition, a permanent employment contract is a contract with Gasoline 44.75 2004 an Employee for an indeterminate period. At MPIC, regular contract staff and staff under Diesel* 44.93 GBP (Certificate of Quality) probation are considered ‘permanent.’ In contrast, a temporary employment contract is of Heavy Fuel Oil* 42.90 GBP (Certificate of Quality) limited duration, and terminated by a specific event such as the end of a project or work phase. Special Fuel Oil* Range: 40.20-41.11 GBP (Certificate of Sampling anf Analysis of Supplier Sources At MPIC, contractual staff and project-based staff are considered ‘temporary.’ Coal* Range: 16.3-18.6 GBP (Certificate of Sampling and Analysis of Suppliers Source) *Consumed in GBP Powerplants When compiling the information specified in Disclosures 401-1, 404-1 and 405-1, data from Disclosure 102-8 has been used consistently to identify the total number of employees by Emissions headcount at the end of the reporting period. For GRI 404-1, average training hours reflects GHG Emissions have been calculated in accordance with the GHG Protocol developed by World total training hours (for each category of employee) divided by the total headcount (for each Resources Institute and World Business Council on Sustainable Development and expressed in category of employee) as of 31 December 2019. carbon dioxide equivalents (“CO2e”). Direct emissions for GRI reporting are the same as Scope 1 emissions under the Greenhouse Gas Protocol and indirect emissions for GRI reporting are the Job Creation Formula Maynilad computed the number of jobs created as the quotient of 20% of the capital expenditure for the same as Scope 2 emissions under the Greenhouse Gas Protocol. For MERALCO, Scope 2 GHG program (rule of thumb in assuming the proportion of labor cost) divided by the minimum wage for each emissions include emissions associated with system loss. employee assuming a six month construction phase.

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ESG Data Summary

Integrated Management System Certifications ANNEX GRI Index

Independent Assurance Statement

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ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

ESG Data Summary Dash denotes zero NR means not reported Parent Power Featured Toll Roads Water Featured Hospitals Light Rail Company Energy Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC1 LRMC MPIC Total Energy Consumption within the organisation Terajoule 182,552.3 46,467.1 95.7 16.6 530.6 58.7 37.5 29.3 86.1 182.7 0.6 a. Non-renewable fuels consumed TJ 179.4 46,423.0 60.2 9.7 64.2 1.0 0.3 0.7 0.4 3.4 0.2 b. Renewables consumed TJ - 0.6 0.0 - - - - - 0.2 - - c. Electricity purchased for consumption TJ 223.6 43.5 35.4 6.9 466.4 57.7 37.2 28.6 85.5 179.3 0.4 d. Self-generated electricity which is not consumed TJ - 13,862.4 ------e. Electricity sold TJ -182,149.2 13,862.4 ------

Total Scope 1 & Scope 2 GHG Emissions ktCO2e 2,910.1 4,880.4 11.4 2.1 97.0 11.4 7.4 5.9 16.9 35.7 0.1 GHG Emission - Scope 1 ktCO2e 937.7 4,871.7 4.4 0.7 4.7 0.0 0.0 0.0 0.0 0.2 0.0 GHG Emission - Scope 2 ktCO2e 1,972.3 8.6 7.0 1.4 92.3 11.4 7.4 5.9 16.9 35.5 0.1

Water Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPIC3 Total water withdrawn by type Megaliter 132,259.8 1,367.0 85.6 53.6 908,208.1 175.4 242.0 171.6 372.2 64.8 NR a. Freshwater ML 472.8 375.2 85.6 53.6 908,208.1 175.4 242.0 171.6 372.2 64.0 NR b. ‘Other’ water (>1,000 mg/L total dissloved solids) ML 131,787 991.9 ------0.8 NR Total water withdrawn by source ML 132,259.8 1,367.0 85.6 53.6 908,208.1 175.4 242.0 171.6 372.2 64.8 NR a. Surface water ML - 72.0 - - 907,907.8 - - - - - NR b. Groundwater ML - 296.2 60.7 - 300.3 - - 13.4 - - NR c. Seawater ML 131,787.0 991.9 ------NR d. Produced water ML ------0.8 NR e. Third-party (including municipal supply) ML 472.8 7.0 24.9 53.6 - 175.4 242.0 158.2 372.2 64.0 NR

Waste Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC2 LRMC MPIC3 Total hazardous waste tonnes 1,187.2 228.0 1.2 0.2 56.8 253.7 144.7 59.9 339.4 61.3 0.0 a. Reused and Recycled tonnes 859.4 - - - - 4.7 - - - 8.9 - b. Residual, including incinerated and landfilled tonnes 327.8 - - - - 249.1 - - 339.4 - - c. Stored Onsite tonnes - 228.0 0.0 ------d. Other tonnes - - 1.2 0.2 56.8 - 144.7 59.9 - 52.4 0.0 e. Not specified tonnes ------

1: Reported Energy data only includes hospital operations in Tower 1 & 2 2: Building tenant’s residual wastes (restaurants, etc.) are inclusive of the data 3: The Parent Company does not have access to data on water withdrawal and waste because these services are under the management control of the owner of the building. 95 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

ESG Data Summary Dash denotes zero NR means not reported Parent Power Featured Toll Roads Water Featured Hospitals Light Rail Company Total non-hazardous waste tonnes 117.2 178,039.2 477.2 6.0 59.0 329.0 185.7 292.5 797.3 115.3 NR a. Reused and Recycled tonnes 27.73 40,733.7 - 5.0 - - 23.2 - 79.7 115.3 NR b. Residual (including incinerated, landfilled, stored on-site and other) tonnes 89.4 - 477.2 - 59.0 329.0 162.5 292.5 717.6 - NR c. Other tonnes - - - 1.0 ------NR d. Stored Onsite tonnes - 137,305.5 ------NR

Employee Breakdown Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPIC Total Employees Number 8.201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 Employees by type Number 8.201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 a. Regular Number 7,865 924 1,271 107 2,169 1,475 789 989 2,874 1,355 53 b. Probationary Number 336 30 193 61 49 324 261 183 339 43 3 Employees by gender Number 8,201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 a. Female Number 2,600 190 742 75 565 1,209 731 795 2,184 466 35 b. Male Number 5,601 764 722 93 1,653 590 319 377 1,029 932 21 Employees by age Number 8,201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 Some of MERALCO’s subsidiaries were not able to classify their data by position and age a. Under 16 Number ------b. 16 - 29 years Number 2,698 151 642 74 552 980 400 556 1,710 256 16 c. 30 to 50 years Number 4,125 617 785 81 1,203 759 580 575 1,376 901 29 d. Over 50 years Number 1,345 186 37 13 463 60 70 41 127 241 11 Employees by grade Number 8,201 954 1,464 168 2,218 1,799 1,050 1,172 3,213 1,398 56 Some of MERALCO’s subsidiaries were not able to classify their data by position and age a. Senior managers Number 755 26 20 6 69 13 11 7 23 19 14 b. Middle managers Number 836 47 75 24 378 66 37 56 208 60 18 c. Supervisors Number - 423 126 24 397 228 68 47 450 289 9 d. Rank & File Number 6,577 458 1,243 114 1,374 1,313 934 1,062 2,180 1,030 15 e. Others (Residents and Fellows) Number 179 NR Not Applicable 352 Regular Employee Participation in Collective Bargaining Agreements % 53% 0% 0% 0% 72% 0% 45% 65% 45% 19% 0%

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ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

ESG Data Summary Parent Dash denotes zero NR means not reported Power Featured Toll Roads Water Featured Hospitals Light Rail Company Employee New Hires Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPIC Total New Hires of Regular Employees Number 3,560 54 259 133 131 639 425 374 685 94 6 Number of New Hires by gender 3,560 54 259 133 131 639 425 374 685 94 6 a. Female Number 952 18 143 51 41 472 307 203 516 32 5 b. Male Number 2,608 36 116 82 90 167 118 171 169 62 1 Number of New Hires by age 3,560 54 259 133 131 639 425 374 685 94 6 a. Below 30 years Number 2,121 28 235 86 98 525 228 249 499 55 3 b. 30 to 50 years Number 1,274 24 23 47 33 112 194 124 185 35 3 c. Over 50 years Number 165 2 1 - - 2 3 1 1 4 - Total Rate of New Hires % 43% 6% 18% 79% 6% 36% 40% 32% 21% 7% 11% Rate of New Hires by gender a. Female % 37% 9% 19% 68% 7% 39% 42% 26% 24% 7% 14% b. Male % 47% 5% 16% 88% 5% 28% 37% 45% 16% 7% 5% Rate of New Hires by age a. Below 30 years % 79% 19% 37% 116% 18% 54% 57% 45% 29% 21% 19% b. 30 to 50 years % 31% 4% 3% 59% 3% 15% 33% 22% 13% 4% 10% c. Over 50 years % 12% 1% 3% - - 3% 4% 2% 1% 2% 0%

Employee Turnover Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPIC Total Regular Employee Turnover Number Turnover by gender 2,238 49 143 31 84 417 416 281 607 97 6 a. Female Number 627 7 89 19 26 302 266 191 441 66 3 b. Male Number 1,611 42 54 12 58 115 150 90 166 31 3 Turnover by age 2,238 49 143 31 84 417 416 281 607 97 6 a. Below 30 years Number 1,273 9 100 21 37 270 224 166 410 24 3 b. 30 to 50 years Number 716 17 42 9 47 140 187 108 185 54 3 c. Over 50 years Number 249 23 1 1 - 7 5 7 12 19 - Total Regular Employee Rate of Turnover % 27% 5% 10% 18% 4% 23% 40% 24% 19% 7% 11% Rate of Turnover by gender a. Female % 24% 4% 12% 25% 5% 25% 36% 24% 20% 14% 9% b. Male % 29% 5% 7% 13% 4% 19% 47% 24% 16% 3% 14% Rate of Turnover by age a. Below 30 years % 47% 6% 16% 28% 7% 28% 56% 30% 24% 9% 19% b. 30 to 50 years % 17% 3% 5% 11% 4% 18% 32% 19% 13% 6% 10% c. Over 50 years % 19% 12% 3% 13% - 12% 7% 17% 9% 8% 0% 97 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

ESG Data Summary Parent Dash denotes zero NR means not reported Power Featured Toll Roads Water Featured Hospitals Light Rail Company Employee Training Unit MERALCO1 GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPIC Overall Hours of Training/Employee 34 20 13 5 40 84 29 36 23 34 18 Average Hours of Training by gender a. Female Hours 22 21 8 7 42 84 28 31 22 35 19 b. Male Hours 39 20 18 4 40 83 31 47 23 34 18 Average Hours of Training by grade a. Senior managers Hours 35 27 25 5 60 59 25 21 6 93 9 b. Middle managers Hours 31 41 73 7 69 144 32 50 16 173 18 c. Supervisors Hours 25 26 7 51 101 21 87 52 48 40 d. Rank & File Hours 33 13 8 4 28 78 29 33 21 21 15

Employee Occupational Health & Safety Unit MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPIC Workers covered by OHSAS management system Employees % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Other workers % 0% 100% 100% 100% 100% 100% 0% 100% 100% 100% 0% Total fatal cases from work accidents Number - - 1 ------Total occupational injuries Number 74 8 5 - - 2 11 23 532 4 - Total lost working days due to injuries Number 209 - 12 - - 8 - - - 44 - Total no. of occupational diseases Number Recalibration - - - 14 - - - 10 - - No. hours of health & safety training provided to Employees Hours 58,768 238 3,384 124 36,649 96 348 77 13,996 3,348 - Safe Man-Hours Hours 12,466,548 2,326,246 4,090,272 781,540 4,417,519 2,811,392 2,217,600 1,987,200 6,785,856 2,030,361 117,376 Number of safety drills Hours 324 78 2 2 57 319 3 12 4 9 5 Hours worked 12,466,548 2,326,247 4,103,424 781,540 4,417,519 2,811,392 2,217,600 1,987,200 6,785,856 3,189,229 117,376

Service Coverage MERALCO GBP NLEX/SCTEX Cavitex Maynilad AHI CSMC DDH MMC LRMC MPIC Customers served in the year 6,882,784 32 134,580,980 61,555,353 1,453,979 271,163 328,155 57,878 1,128,365 161,346,440 - Customers served each day 6,882,784 32 368,715 168,645 1,453,979 743 899 159 3,091 442,045 -

1:Overall hours of training/employees are not fully accounted for in the Average hours of training by grade because some of MERALCO’s subsidiaries were not able to classify their data by position or grade.

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ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

Integrated Management System Certifications

ENVIRONMENTAL MANAGEMENT SYSTEMS Certified Entities Certification Standard and Scope Validity MERALCO ISO 14001:2015 Valid until October 2021 • MIESCOR Engineering, Procurement & Construction • MIESCOR Logistics Department MERALCO ISO 14001:2015 Valid until October 2022 • Manila Sector • Pasig Sector • Rizal Sector • Plaridel Sector • San Pablo Sector • Santa Rosa Sector • Dasmariñas Sector • Operating Center • Parañaque Sector GBP subsidiaries ISO 14001:2015 Environmental Management System Valid until April 2020 • Cebu Energy Development Corporation • Power Generation • Panay Energy Development Corporation • Toledo Power Co. • Panay Power Corporation • GBH Power Resources Inc. NLEX Corp. ISO 14001:2015 Environmental Management System Valid until November 2021 • Design, development, construction, operations and maintenance of toll roads Maynilad ISO 14001:2015 Environmental Management System Valid until July 2021 • Company-wide certification for the provision of water and wastewater services MMC Environmental Management Bureau - DENR Environmental Compliance Certificate - Hazardous Waste Generator ID One time, no validity Waste Water Discharge Permit Valid until May 2020 LRMC (LRT-1) ISO 14001:2015 Environmental Management System Valid until August 2020

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ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

Integrated Management System Certifications

QUALITY MANAGEMENT SYSTEMS Certified Entities Certification Standard and Scope Validity MERALCO ISO 9001:2015 Quality Management System Valid until March 2021 • MIESCOR Engineering, Procurement & Construction • Supply Chain Management, Procurement, Materials Management, Strategic Sourcing and Vendor • MIESCOR Logistics Department Management, Supply Chain & Logistics Process & Standards • MRAIL GBP ISO 9001:2015 Quality Management System Valid until April 2020 • Provision of policy direction and support services to the GBP-owned power plants GBP subsidiaries ISO 9001:2015 Quality Management System Valid until April 2020 • Cebu Energy Development Corporation • Power generation • Panay Energy Development Corporation • Toledo Power Co. • Panay Power Corporation • GBH Power Resources Inc. NLEX Corp. ISO 9001:2015 Quality Management System Valid until November 2021 • Design, development, construction, operations and maintenance of toll roads Maynilad ISO 9001:2015 Quality Management System Valid until July 2021 • Company-wide certification for the provision of water and wastewater services AHI Joint Commission International, Gold Seal of Approval* 1st accreditation December 2013; 2nd accreditation September 2016; 3rd accreditation September 2019 to September 2022 CSMC ISO 9001:2015 Quality Management System Valid until July 2021 • Provision of health care services (Inpatient and Outpatient Services) DDH Accreditation Canada International (“ACI”) Gold Standard* valid until July 2020 MMC Joint Commission International (“JCI”), Gold Seal of Approval* Valid until November 2020 LRMC ISO 9001:2015 Quality Management System Valid until August 2020 • TUV Rheinland • Operations and maintenance of LRT-1 * ACI is a Canada-based independent non-governmental organization that operates globally as an affiliate of Health Standards Organization (HSO). JCI is a US-based accreditation body that monitors the quality of medical services in more than 90 countries. 100 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

Integrated Management System Certifications

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEMS Certified Entities Certification Standard and Scope Validity Additional Information MERALCO ISO 45001:2018 Valid until March 2022 • CAVITEX plans to adopt an • MIESCOR Engineering, Procurement & Construction Integrated Management (“EPC”) System Certification (ISO • MIESCOR Logistics Department 9001, ISO 14001 and ISO MERALCO ISO 45001:2018 Valid until June 2022 45001) ready for Certification • Manila Sector in the first quarter of 2021. • Pasig Sector • Rizal Sector • Aside from ISO 14001, ISO • Plaridel Sector 9001and OHSAS 18001, • San Pablo Sector Maynilad is certified to • Santa Rosa Sector the following additional • Dasmariñas Sector standards: ISO 50001 Energy • Operating Center Management System, • Parañaque Sector ISO 20000-1 Information GBP subsidiaries OHSAS 18001:2007 Valid until April 2020 Technology Service • Cebu Energy Development Corporation • Power generation • Panay Energy Development Corporation Management System, • Toledo Power Co. ISO 14064 Greenhouse Gas • Panay Power Corporation Emissions, ISO 17025 Testing • GBH Power Resources Inc and Calibration Laboratories NLEX Corp. ISO 45001:2018 OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEM Valid until November and BCMS 22301 Business DQS Certification Phil. - ISO 45001:2018 2021 Continuity. • Design, development, construction, operations, & maintenance of toll roads Maynilad OHSAS 18001:2007 Occupational Health and Safety Management Systems Valid until March 2021 • Company-wide certification for the provision of water and wastewater services for employees • other workers are covered by the occupational health systems of the respective contractors *Lifetime – refresher course is recommended by DOLE every 3 years 101 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

GRI Content Index

GRI 102: GENERAL DISCLOSURES 2016

GRI Indicator Description References and Remarks GRI Indicator Description References and Remarks Organizational 102-1 Name of the organization Profile of MPIC Stakeholder 102-40 List of stakeholder groups Value Creation Profile 102-2 Activities, brands, products, and Profile of MPIC Engagement 102-41 Collective bargaining agreements Engaged Workforce and Safe Workplaces services 102-42 Identifying and selecting Value Creation 102-3 Location of headquarters Profile of MPIC stakeholders 2016 Sustainability Report (p. 16 - 19) 102-4 Location of operations Profile of MPIC 102-43 Approach to stakeholder Value Creation 102-5 Ownership and legal form Profile of MPIC engagement 2016 Sustainability Report (p. 16 - 19) 102-6 Markets served Profile of MPIC 102-44 Key topics and concerns raised Value Creation 102-7 Scale of the organization Profile of MPIC 2016 Sustainability Report (p. 16 - 19) 102-8 Information on employees and Profile of MPIC Reporting practice 102-45 Entities included in the Notes 10 and 39 of MPIC’s 2019 Audited other workers Engaged Workforce and Safe Workplaces consolidated financial statements Financial Statement Schedule V of MPIC’s 2019 Performance Data Summary Table SEC Form 17-A (http://edge.pse.com.ph) 102-9 Supply chain Enterprise Risk Management 102-46 Defining report content and topic ESG Reporting Methodology The supply chain for MPIC’s major Boundaries. 2017 Sustainability Report (p. 23); 2016 operating companies consists primarily Sustainability Report (p. 20- 21) of contractors and materials suppliers for 102-47 List of material topics ESG Reporting Methodology design, construction and maintenance of 102-48 Restatements of information ESG Reporting Methodology infrastructure projects. Restatements have been made with regard to 102-10 Significant changes to the There were none. the following: organization and its supply chain GBP - energy sales and consumption 102-11 Precautionary Principle or Operational Efficiency – Enterprise Risk Maynilad - water supplied and emissions approach Management (Environment) 102-12 External initiatives Annex: Integrated Management System 102-49 Changes in reporting ESG Reporting Methodology Certifications 102-50 Reporting period About this Report 102-13 Memberships of associations Not applicable for MPIC Head Office. The major 102-51 Date of most recent report About this Report 102-52 Reporting cycle About this Report operating companies have memberships in 102-53 Contact point for questions About this Report their respective industries’ associations. regarding the report Strategy and 102-14 Statement from the most Leadership Message 102-54 Claims of reporting in accordance About this Report Analysis senior decision-maker of the with GRI Standards organization 102-56 External assurance About this Report Ethics and Integrity 102-16 Values, principles, standards and Profile of MPIC Assurance Statement norms of behavior Governance 102-18 Governance structure Responsibility for ESG Annual Report 2019 – Board of Directors (p. )

102 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

GRI Content Index

GRI 103: MANAGEMENT APPROACH 2016 & MATERIAL TOPICS (ECONOMIC) GRI 103: MANAGEMENT APPROACH 2016 & MATERIAL TOPICS (ENVIRONMENTAL)

GRI Indicator Description References and remarks GRI Indicator Description References and remarks GRI 201: Economic 103-1 Explanation of the material topic ESG Reporting Methodology GRI 302: 103-1 Explanation of the material topic Operational Efficiency: Energy & Emissions Performance 2016 and its Boundary Energy 2016 and its Boundary ESG Reporting Methodology 103-2 The management approach and Leadership Message 103-2 The management approach and Responsibility for ESG its components Investment Selection and Portfolio its components Enterprise Risk Management - Environment 103-3 Evaluation of the management Management 103-3 Evaluation of the management Operational Efficiency: Energy & Emissions approach approach Annex: Integrated Management System 201-1 Direct economic value generated Leadership Message Certifications and distributed 302-1 Energy consumption within the Operational Efficiency: Energy & Emissions GRI 203: 103-1 Explanation of the material topic ESG Reporting Methodology organization ESG Data Summary Table Indirect Economic and its Boundary GRI 303: 103-1 Explanation of the material topic Operational Efficiency: Water Impacts 2016 103-2 The management approach and Profile of MPIC Water & Effluents and its Boundary ESG Reporting Methodology its components Leadership Message 2018 103-2 The management approach and Responsibility for ESG 103-3 Evaluation of the management Investment Selection and Portfolio its components Enterprise Risk Management - Environment approach Management 103-3 Evaluation of the management Operational Efficiency: Water 203-1 Infrastructure investments and approach Annex: Integrated Management System services supported Certifications GRI 205: 103-1 Explanation of the material topic Business Ethics 303-1 Interactions with water as a Operational Efficiency: Water Anti-corruption and its Boundary shared resource 2016 103-2 The management approach and Business Ethics 303-2 Management of water discharge- Operational Efficiency: Water its components related impacts 103-3 Evaluation of the management 303-3 Water withdrawal Operational Efficiency: Water approach ESG Data Summary Table 205-2 Communication and training Business Ethics GRI 305: 103-1 Explanation of the material topic Operational Efficiency: Energy & Emissions on anti-corruption policies and Emissions 2016 and its Boundary ESG Reporting Methodology procedures 103-2 The management approach and Responsibility for ESG its components Enterprise Risk Management - Environment 103-3 Evaluation of the management Operational Efficiency: Energy & Emissions approach Annex: Integrated Management System Certifications 305-1 Direct (Scope 1) GHG emissions Operational Efficiency: Energy & Emissions ESG Data Summary Table 305-2 Indirect (Scope 2) GHG emissions Operational Efficiency: Energy & Emissions ESG Data Summary Table

103 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

GRI Content Index

GRI Indicator Description References and remarks GRI Indicator Description References and remarks GRI 306: 103-1 Explanation of the material topic Operational Efficiency: Waste GRI 403: 103-1 Explanation of the material topic Engaged Workforce and Safe Workplaces: OHS Effluents and Waste and its Boundary ESG Reporting Methodology Occupational and its Boundary ESG Reporting Methodology 2016 103-2 The management approach and Responsibility for ESG Health and Safety 103-2 The management approach and Engaged Workforce and Safe Workplaces: OHS its components Enterprise Risk Management - Environment 2018 its components 103-3 Evaluation of the management Operational Efficiency: Waste 103-3 Evaluation of the management approach Annex: Integrated Management System approach Certifications 403-1 Occupational health & safety Engaged Workforce and Safe Workplaces: OHS 306-2 Waste by type and disposal Operational Efficiency: Waste management system Annex: Integrated Management System method ESG Data Summary Table 403-2 Hazard identification, risk Certifications GRI 307: 103-1 Explanation of the material topic Responsibility for ESG assessment, and incident Environmental and its Boundary ESG Reporting Methodology investigation Compliance 2016 103-2 The management approach and Responsibility for ESG 403-3 Occupational health services its components Enterprise Risk Management – Environment 403-4 Worker participation, 103-3 Evaluation of the management Annex: Integrated Management System consultation, and approach Certifications communication on occupational 307-1 Non-compliance with Responsibility for ESG health and safety environmental laws and 403-5 Worker training on occupational regulations health and safety 403-6 Promotion of worker health GRI 103: MANAGEMENT APPROACH 2016 & MATERIAL TOPICS (SOCIAL) 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by GRI Indicator Description References and remarks business relationships GRI 401: 103-1 Explanation of the material topic Engaged Workforce and Safe Workplaces: 403-8 Workers covered by an Employment 2016 and its Boundary Employment Profile occupational health & safety ESG Reporting Methodology management system 103-2 The management approach and Engaged Workforce and Safe Workplaces: GRI 404: 103-1 Explanation of the material topic Engaged Workforce and Safe Workplaces: its components Employment Profile Training and and its Boundary Traning & Development Education 2016 ESG Reporting Methodology 103-3 Evaluation of the management approach 103-2 The management approach and Engaged Workforce and Safe Workplaces: its components Training & Development 401-1 New employee hires and Engaged Workforce and Safe Workplaces: employee turnover Employment Profile 103-3 Evaluation of the management ESG Data Summary Table approach 404-1 Average hours of training per Engaged Workforce and Safe Workplaces: year per employee Traning & Development ESG Data Summary Table

104 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

GRI Content Index

GRI Indicator Description References and remarks GRI Indicator Description References and remarks GRI 405: 103-1 Explanation of the material topic Engaged Workforce and Safe Workplaces: GRI 419: 103-1 Explanation of the material topic Responsibility for ESG Diversity and Equal and its Boundary Employment Profile and its Boundary Socioeconomic ESG Reporting Methodology Opportunity 2016 ESG Reporting Methodology Compliance 2016 103-2 The management approach and Responsibility for ESG 103-2 The management approach and Engaged Workforce and Safe Workplaces: its components its components Employment Profile Annex: Integrated Management System 103-3 Evaluation of the management 103-3 Evaluation of the management Certifications approach approach 419-1 Non-compliance with laws and Responsibility for ESG 405-1 Diversity of governance bodies Board of Directors regulations in the social and and employees Engaged Workforce and Safe Workplaces: economic area Employment Profile ESG Data Summary Table

GRI Indicator Description References and remarks GRI 413: 103-1 Explanation of the material topic Social Responsibility: Community Engagement and its Boundary Local Communities ESG Reporting Methodology 2016 103-2 The management approach and Social Responsibility: Community Engagement its components 103-3 Evaluation of the management approach 413-1 Operations with local Social Responsibility: Community Engagement community engagement, impact assessments, and development programs GRI 416: 103-1 Explanation of the material topic Service Exellence: Service Continuity and its Boundary Customer Health ESG Reporting Methodology and Safety 2016 103-2 The management approach and Service Excellence: Introduction its components Service Excellence: Service Continuity 103-3 Evaluation of the management approach Annex: Integrated Management System Certifications 416-1 Assessment of the health and Service Excellence: Service Continuity safety impacts of product and service categories

105 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

Independent Assurance Statement

Introduction Report”, ‘Materiality’ and ‘Environment Social and Governance is responsible for planning and performing the engagement operating companies’ headquarters and to check that the Metro Pacific Investment Corporation (“MPIC”, Securities (‘ESG’) Reporting Methodology’. We evaluated the Report to obtain assurance about whether the selected information selected environmental and social data had been properly and Exchange Commission (SEC) Identification Number: for adherence to the reporting principles for defining is free from material misstatement and meets the disclosure measured, gathered, recorded, collated and reported; and, CS200604494) commissioned DNV GL Business Assurance the sustainability report content as set forth in the GRI’s requirements. • Reviewed the qualitative and quantitative disclosures Philippines Branch (“DNV GL”), part of the DNV GL Group Sustainability Reporting Standards (‘GRI Standards’) along with at headquarters and visited sample sites of operating to undertake independent assurance of sustainability/non- AA1000AS. We understand that the reported financial data and Basis of our Opinion companies including Metro Pacific Tollways Corporation’s financial disclosures in MPIC’s 2019 Sustainability Report (‘the information are based on MPIC’s Annual Report3 and financial A multi-disciplinary team of sustainability and assurance - NLEX Head Office and Traffic Control Center (MPTC) in Report’) for the year ending 31st December 2019. statements which are subject to a separate independent audit specialists performed the work at MPIC’s headquarters in Caloocan City; Cebu Energy Development Corporation process. The review of financial data taken from the audited Makati City and its business units in the Philippines, during and Toledo Power Company (GBP) in Toledo City, Cebu; This assurance engagement was planned and carried financial statements is not within the scope of our work. March 2020 to test the accuracy and reliability of qualitative and Makati Medical Center (a subsidiary of MPHHI) in Makati; out using AccountAbility’s AA1000 Assurance Standard quantitative disclosures including the reported data and the and Maynilad Head Office and La Mesa Treatment Plants 1 Responsibilities of MPIC and of the Assurance Provider 2008 (“AA1000AS”) and DNV GL’s assurance methodology robustness of the data aggregation process including related and 2 (Maynilad) in Quezon City. The Board of MPIC has sole responsibility for the integrity VeriSustainTM1 (Version 5.0) which is based on our professional management approach for identified material topics. of the Report and this responsibility includes designing, experience, international assurance best practice including We also performed the following activities to assess the implementing and maintaining internal controls over collection, the International Standard on Assurance Engagement 3000 As part of the verification, we planned and performed our adherence to reporting principles: analysis, aggregation and preparation of data, fair presentation (“ISAE3000”) Revised2 and the Global Reporting Initiative’s work based on DNV GL’s Risk Based Approach to obtain the • interviewed the senior managers and representatives of the information, and ensuring that data is free from material (“GRI”) Principles for Defining Report Content and Quality. evidence that we considered necessary to provide a basis for responsible for sustainability management and made misstatement and maintaining the integrity of their website our assurance opinion. Within the framework of our assessment, enquiries to determine their understanding of process of Scope and Boundary of Assurance under digital domain. DNV GL expressly disclaims any liability we performed the following procedures and other activities: stakeholder engagement and materiality assessment; and, The scope of assurance included a review of sustainability or co-responsibility for any decision a person or an entity may • conducted interviews with data owners from MPIC and its • reviewed the current sustainability issues that could affect disclosures and performance data from MPIC and its operating make based on this Assurance Statement. subsidiaries to understand the key processes and controls MPIC and could be of interest to stakeholders of MPIC. companies including Manila Electric Company (“MERALCO”), for reporting business units’ performance data; Global Business Power Corporation (“GBP”), Maynilad Water In performing our assurance work, DNV GL’s responsibility is • assessed the robustness of the underlying data and Services, Inc. (“Maynilad”), featured toll roads of Metro Pacific solely towards the Management of MPIC in accordance with information flow and controls; Conclusion Tollways Corporation (“MPTC”), featured hospitals of Metro terms of reference agreed, however this assurance statement • performed data analysis using a risk-based approach and Based on the verification undertaken, nothing has come to our Pacific Hospital Holdings, Inc. (“MPHHI”) and Light Rail Manila represents our independent opinion and is intended to materiality; attention that causes us to believe that the reported disclosures Corporation (“LRMC”). enlighten MPIC’s stakeholders. DNV GL’s responsibility is to • challenged the sustainability-related disclosures, i.e. sustainability performance data and information disclosed in form an independent conclusion. In doing so, we carried out statements and claims; the Report does not give a fair representation of MPIC’s related The boundary of the Report for identified material topics and the sampling procedures required for the evidence for Type 2, • performed limited testing on a sampling basis of the sustainability performance. Without affecting our assurance topic-specific disclosures is set out in the sections:”About This Moderate level of assurance based on AA1000AS i.e. DNV GL selected information at MPIC’s Headquarters and opinion, we also provide the following observations: 1 The VeriSustain protocol is available on request from www.dnvgl.com. 2 Assurance Engagements other than Audits or Reviews of Historical Financial Information 3 Available on http://edge.pse.com.ph/ 106 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

Independent Assurance Statement

AA1000 Accountability Standard (2008) assurance, we have reviewed the claims related to materiality identifiable and traceable; the personnel responsible could Nothing has come to our attention to suggest that the Inclusivity with MPIC team to revalidate that there is no change in the demonstrate the origin and interpretation of the data and Report does not meet the requirements related to the The participation of stakeholders in developing and achieving an list of Material topics compared to last year. It is suggested its reliability. Nothing has come to our attention to suggest Principle of Completeness. accountable and strategic response to Sustainability that MPIC may consider review of its materiality and includes that the Report does not present a faithful description of the The Report has fairly brought out the disclosures as per the issues material in its supply chain. reported sustainability disclosures for the reporting period. requirements of selected GRI Topic Specific Standards i.e. Nothing has come to our attention to suggest that the Report strategy, management approach, monitoring systems and does not meet the requirements related to the Principle of Responsiveness Reliability sustainability performance indicators considering the boundary Inclusivity. The extent to which an organization responds to stakeholder The accuracy and comparability of information presented of its reporting covering MPIC’s operations in the Philippines. Report has articulated the process adopted by MPIC and the issues in the report, as well as the quality of underlying data operating companies engage on a regular basis with the management systems Neutrality identified stakeholders through various channels to identify Nothing has come to our attention to suggest that the The extent to which a report provides a balanced account of an emerging sustainability concerns and expectations. The Report Report does not meet the requirements related to the Nothing has come to our attention to suggest that the organization’s performance, delivered in a neutral tone. has articulated the concerns of key stakeholders and identified Principle of Responsiveness. Report does not meet the requirements related to the stakeholder concerns are responded to within the Report The Report fairly brings out MPIC’s strategies and Principle of Reliability. Nothing has come to our attention to suggest that the Report through explanations of the value delivered to the stakeholders. management approaches related to identified key material The Report has disclosed MPIC’s sustainability performance does not meet the requirements related to the Principle of topics including key policies, management systems and related to material topics using selected GRI Topic Specific Neutrality. Materiality governance mechanisms based on reporting requirements of Standards. The majority of data and information verified The Report discloses sustainability performance for the The process of determining the issues that is most relevant to an GRI Standards 2016. Reporting entities have established both at the Head Office and sampled sites were found to be identified material topics in a fairly neutral tone, in terms organization and its stakeholders formal and informal processes to report disclosures based accurate. Some of the data inaccuracies identified during of content and presentation, and has also considered the on GRI Standards’ Reporting Principles and the requirements the verification process were found to be attributable to sustainability context and external environment while Nothing has come to our attention to suggest that the stated in GRI Standards. However, it would be good to further transcription, interpretation and aggregation errors. These presenting its sustainability performance for the reporting Report does not meet the requirements related to the strengthen the disclosures related to Supply Chain. identified errors were communicated through a formal report period. Principle of Materiality. and responses from MPIC were reviewed including corrections The Report describes the process adopted by MPIC for Specific Evaluation of the Information on Sustainability that were made to the reported data and information. Limitations materiality assessment and identifying material issues. Performance Our assurance relies on the premise that the data and The process considered inputs from operating companies We consider both the methodology and processes adopted by Additional Principles as per DNV GL VeriSustain information provided by MPIC to us as part of our review including concerns of key stakeholders and impacts of MPIC for gathering qualitative and quantitative information Completeness procedures have been provided in good faith and free from material issues on key stakeholders at group level and on its sustainability performance to be appropriate and the How much of all the information that has been identified as misstatements. Because of the selected nature (sampling) business environment for the reporting period. As part of performance data included in the Report was found to be material to the organisation and its stakeholders is reported. and other inherent limitation of both procedures and

107 About this Report Leadership Message Company Profile Key Metrics Mission, Vision and Values Core Assets Contributions to Nation Building Part One: Governance Part Two: Sustainability Impacts Part Three: ESG Reporting Methodology Annex

ESG Data Summary Integrated Management System Certifications GRI Content Index Independent Assurance Statement

Independent Assurance Statement systems of internal control, there remains the unavoidable Statement of Competence and Independence For and on behalf of DNV GL AS risk that errors or irregularities, possibly significant, may DNV GL applies its own management standards and 23rd March 2020, Philippines not have been detected. The engagement excludes the compliance policies for quality control, in accordance with sustainability management, performance and reporting ISO IEC 17021:2015 - Conformity Assessment Requirements practices of MPIC’s suppliers, contractors and any third- for bodies providing audit and certification of management Vadakepatth Nandkumar Heng Chwin Mak Prasun Kundu parties mentioned in the Report. The company’s position systems, and accordingly maintains a comprehensive system of Lead Verifier, Operations Manager – Assurance Reviewer, Head - Sustainability South East Asia DNV GL – Business Assurance India Private statement, statements about the management approach, quality control including documented policies and procedures Operations, DNV GL Technology Centre. Limited. DNV GL – Business Assurance Singapore 118227 and case studies and examples are excluded from the scope regarding compliance with ethical requirements, professional India Private Limited. of our work. We did not interview external stakeholders as standards and applicable legal and regulatory requirements. part of this assurance engagement. We have complied with the DNV GL Code of Conduct4 during The reported disclosures related to economic performance the assurance engagement and maintain independence ------are based on financial disclosures and data, which were where required by relevant ethical requirements. This DNV GL Business Assurance AS Philippines Branch is part of DNV GL – Business Assurance, a global provider of certification, verification, cross-checked with internal documents and the audited engagement work was carried out by an independent assessment and training services, helping customers to build sustainable business performance. www.dnvgl.com consolidated financial statements. team of sustainability assurance professionals. DNV GL was not involved in the preparation of any statements or data As per our agreed scope of engagement, limited depth included in the Report except for this Assurance Statement. of evidence gathering including inquiry and analytical DNV GL maintains complete impartiality toward stakeholders procedures and limited sampling were applied as per DNV interviewed during the assurance process. DNV GL did not GL’s VeriSustain. The data for Environmental and Social provide any services to MPIC and its subsidiaries in the performance were verified with random samples and the scope of assurance during 2019 that could compromise the aggregated data at the head office level are used for the independence or impartiality of our work. verification.

4 The DNV GL Code of Conduct is available from DNV GL website (www.dnvgl.com)

108 Metro Pacific Investments Corporation 10/F MGO Building, Legaspi corner Dela Rosa Streets, Makati City, 0721, Philippines +63 2 8888 0888 www.mpic.com.ph