ICTSI LIFTING SUSTAINABILITY TODAY, REPORT 2020 UPHOLDING TOMORROW
For People, the Environment & Economies ICTSI SUSTAINABILITY REPORT 2020
About our cover
In this ICTSI Sustainability Report 2020 ICTSI LIFTING SUSTAINABILITY edition, we present our sustainability priorities and progress at one of history's most REPORT 2020 critical junctures: when, in the 21st century’s TODAY, inextricably interdependent global economy, COVID-19 has taken a tremendous toll on people, everyday activities, and the economic UPHOLDING lifeblood of nations. Our theme, Lifting Today, Upholding Tomorrow: TOMORROW For People, the Environment & Economies, speaks of our more-vital-than-ever before task: our ports’ 24/7 efforts to keep supply lines open, ensuring that food, medical supplies, and For People, the Environment & Economies mission-critical resources reach families and communities, businesses and governments, and especially medical frontliners.
With every turn of the crane, with every box lifted and precious supplies unloaded, we were determined to keep uplifting others. Equally important, we kept recalibrating goals, rethinking strategies, managing and minimizing risks, while supporting our sustainable growth goals.
We closed 2020 the same way we had opened it, the outbreak notwithstanding: lifting others each day, and upholding tomorrow.
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CONTENTS ENVIRONMENT 31 01 On track towards decarbonization 34 Performance areas and positive results 35
GOVERNANCE 45 Acronyms 6 02 Corporate governance 47 Approach to enterprise risk management 51 Code of Business Conduct 51 Global Operations 8 Conflict of Interest Policy 52 Supply chain 54 Communication and training 57 Highlights 10 Compliance 58 Digital transformation 59
Chairman’s Message 12 ECONOMY 62 03 Trade in a time of “twin shock” 65 Agility and tenacity 66 Sustainability Context 16 Partnering for sustainable and inclusive growth 67 Fiscal prudence, future growth 68 Sector overview 16 Economic contributions 68 Company overview 18 Connectivity contributions 68 Business profile 19 Corporate commitments 20 E M PLOYEES 75 About this Report 24 04 Employment and benefits 77 Occupational Health & Safety 81 Good Global Citizenship 25 COVID-19 response and resiliency-building 89 Expanded coverage and COVID-19 response 25 Labor rights, standards, and relations 91 Framework, standards, and materiality 26 Diversity and equal opportunity 93 Stakeholders identification and engagement 28 Learning and development 94 Notes 28 CUSTOMERS 101 GRI content index 135 05 Acceleration of digitalization of services 103 Safety and health protocols for customers 105 Target: safe ports for all 106 Corporate Information 140 Providing avenues for feedback 106 Customer engagement and satisfaction 107 Responsible data stewardship 107 Zero tolerance for security breaches 108 Sustained expansion for future-ready ports 108
SOCIETY 112 06 General mechanism for community relations 115 Supporting IP communities 117 Health 119 Education 123 Community Welfare 126 Social assistance 131 Sports 133 Good Global Citizenship, celebrated in Asia 134
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Acronyms
PSWMP Parola Solid Waste Management Project, DPO Data Privacy Officer MARPOL International Convention for the ICTSI Group-related ICTSI Foundation DSRF Diliman Science Research Foundation Prevention of Pollution from Ships SBITC Subic Bay International Container ECQ Enhanced community quarantine mRNA Messenger RNA ACTS Advanced Customer Terminal Corp. EFP Employers Federation of Pakistan N₂O Nitrous oxide Transaction System, MICT SCIPSI South Cotabato Integrated EIA Environmental Impact Assessment NF₃ Nitrogen trifluoride AGCT Adriatic Gate Container Terminal Port Services, Inc. ERT Emergency Response Team NMHA Near Miss/Hazard Alert BCT Baltic Container Terminal SDU Sustainability and Development Unit, MICT ESC Essential Services Commission, Australia OHS Occupational Health and Safety BGT Basra Gateway Terminal SPIA Sociedad Puerto Industrial ESG Environmental, Social and Governance OHSAS Occupational Health and Safety BICT Batumi International Container Terminal de Aguadulce SA ESR Empresa Socialmente Responsable or Assessment Series BIPI Bauan International Port, Inc. SPICTL South Pacific International Socially Responsible Companies PCSD Palawan Council for CGSA Contecon Guayaquil SA Container Terminal Ltd. ESR Socially Responsible Company Sustainable Development CGT Cavite Gateway Terminal TMT Terminal Maritima Tuxpan SA FEPORT Federation of European Private Port PDRF Philippine Disaster Resilience Foundation CMSA Contecon Manzanillo SA TSSA Tecon Suape SA Companies and Terminals PENRO Provincial Environment and Natural DIPSSCOR Davao Integrated Port Services and VICT Victoria International Container Terminal FINA Financijska Agencija, Croatia Resources Office Stevedoring Corp. YICTL Yantai International FMS Facilities Management System PFCs Perfluorochemicals EMEA Europe, the Middle East and Africa Container Terminals Ltd. FPIC Free, prior and informed consent PGT Philippine Golf Tour GCHR Global Corporate Human Resources GHG Greenhouse gases PHP Philippine Peso GCHSSE Global Corporate Health, Safety, Security GITA Goods in Transport to Afghanistan service PNG Papua New Guinea and Environment Others GJ Gigajoules PNP Philippine National Police GCIR Global Corporate Investor GRI Global Reporting Initiative PPA Philippine Ports Authority Relations and Treasury ABAC ASEAN Business Advisory Council HFCs hydroflourocarbon PPE Personal protective equipment GCIT Global Corporate Information Technology ADP Administrative Due Process HIV Human Immunodeficiency Virus PROFEPA Procuradoría Federal de GCLA Global Corporate Legal AED Automated external defibrillators HR Human Resources Protección Al Ambiente Affairs and Governance AIDS Acquired immunodeficiency syndrome HRD Human Resources Department Project ARK Project Antibody Rapid test Kits HIPSI Hijo International Port Services, Inc. AliaRSE Alliance for Corporate HSE Health, Safety and Environment PRSP Public Relations Society of the Philippines ICTSI International Container Terminal Social Responsibility HSSE Health, Safety, Security and Environment QC Quay crane Services, Inc. ALS Alternative Learning System IATF Inter-Agency Task Force on Emerging RA Republic Act ICTSI Iraq ICTSI (M.E.) DMCC ASEAN Association of Southeast Asian Nations Infectious Diseases RO Reverse osmosis IDRC ICTSI DR Congo SA ASM Annual Stockholders' Meeting IBM International Business Machines RTG Rubber tired gantry IFI ICTSI Foundation, Inc. AUD Australian dollar ICD Institute of Corporate Directors SAP Systems Applications and Products in IRB ICTSI Rio Brasil 1 BASC Business Alliance for Secure Commerce ICT Information Communications Technology Data Processing KMT Kribi Multipurpose Terminal BAZFLP Buenos Aires La Plata Free Zone IiP Investors in People SDGs Sustainable Development Goals LGICT Laguna Gateway Inland BOC Bureau of Customs, Philippines IMDG Introduction to Dangerous Cargo SEC Securities and Exchange Container Terminal BTr Bureau of Treasury, Philippines IMO International Maritime Organization Commission, Philippines LMC Labor-Management Council CBA Collective bargaining agreeement IMS Integrated Management System SEDEX Supplier Ethical Data Exchange MCT Mindanao Container Terminal CEMFI Centro Mexicano Para La Filantropia IP Indigenous peoples SF₆ Sulfur hexafluoride MGT Matadi Gateway Terminal CEO Chief Executive Officer IPCC Intergovernmental Panel SIIM Societe Internationale d’Importation MICT Manila International Container Terminal CG Corporate governance on Climate Change SMETA SEDEX Members Ethical Trade Audit MICTSI Mindanao International Container CH₄ Methane IR Investor Relations SOLAS International Convention for the Terminal Services, Inc. CICL Children in conflict with the law ISO International Organization for Safety of Life at Sea MICTSL Madagascar International Container CNPP Honduran National Commission for Standardization SR Sustainability Report Terminal Services, Ltd. Port Protection IT Information Technology SVP Senior Vice President MIT Motukea International Terminal, Ltd. CO₂ Carbon dioxide KPI Key Productivity Indicator TED Terminal Executive Diploma MNHPI Manila North Harbour Port, Inc. COMODALCE Enhancing Coordination in multimodal KPT Karachi Port Trust, Pakistan TEU Twenty foot equivalent units MTS PT Makassar Terminal Services freight transport in Central Europe LD Learning and Development TOS Terminal Operating System NMPI-NAFLU Nagkakaisang Manggagawa sa COVID-19 Coronavirus disease LED Light emitting diode ULAB Used lead acid batteries Pantalan ng ICTSI - National Federation CPN Child Protection Network LOA Length overall UN United Nations of Labor Unions CRM Commercial and Risk Management LOTO Lock out Tag out system UNGC United Nations Global Compact OJA PT PBM Olah Jasa Andal CSR Corporate social responsibility LPGA Ladies Professional Golf Association, USA USD US Dollar OPC Operadora Portuaria Centroamericana SA DAF Dissolved air floation LTI Lost Time Injury VF Voice of the Free PIAN Parola Interagency Network DENR Department of Environment and Natural LTIFR Lost Time Injury Frequency Rate WHO World Health Organization PICT Pakistan International Container Terminal Resources, Philippines LTISR Lost Time Injury Severity Rate PRO ICTSI Public Relations Office DOF Department of Finance, Philippines DOH Department of Health, Philippines MAP Management Association of Pakistan
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! @ # $ ( BL BM BN BO BS BT
LIFTING TODAY, UPHOLDING TOMORROW
Global Operations
32 32 19 06 YEARS TERMINAL COUNTRIES CONTINENTS
A Corporate Offices B ICTSI Americas C ICTSI Europe, Manila, Philippines Panama City the Middle East Panama and Africa (EMEA) ICTSI Asia Pacific Dubai, United Manila, Philippines Arab Emirates % ^ & * BP BQ BR BU CL CM CN CO - DN
The Americas 6 Buenos Aires, Argentina 11 Adjara, Georgia 16 Toamasina, Madagascar 20 South Sulawesi, Indonesia 25 Subic Bay International Terminals TecPlata Batumi International Madagascar International Makassar Container Terminal (New Container Terminals 1 & 2) 1 Manzanillo, Mexico Container Terminal Container Terminal Contecon Manzanillo 7 Rio de Janeiro, Brazil 21 Melbourne, Australia 26 Laguna Gateway Inland ICTSI Rio Brasil 12 Umm Qasr, Iraq Victoria International Container Terminal 2 Veracruz, Mexico Asia and the Pacific Basra Gateway Terminal Container Terminal Tuxpan Maritime Terminal 8 Pernambuco, Brazil 17 Yantai, China 27 Cavite Gateway Terminal Tecon Suape 13 Karachi, Pakistan 22 Port Moresby, Papua New Guinea 3 Cortés, Honduras Yantai International 28 Bauan International Port Pakistan International Motukea International Terminal Puerto Cortés Container Terminals Europe, the Middle East Container Terminal 29 Sasa Wharf 4 Buenaventura, Colombia and Africa 18 Lae, Papua New Guinea Philippines 14 Kribi, Cameroon South Pacific International 30 Makar Wharf Puerto Aguadulce 9 Rijeka, Croatia 23 Manila International Kribi Multipurpose Terminal Container Terminal 31 Mindanao Container Terminal 5 Guayaquil, Ecuador Adriatic Gate Container Terminal Container Terminal 15 Kongo Central, D.R. Congo 19 Jakarta, Indonesia Contecon Guayaquil 24 NorthPort 32 Hijo International Port 10 Gdynia, Poland Matadi Gateway Terminal Tanjung Priok Berths 300-303 Baltic Container Terminal
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percentage of Business HIGHLIGHTS operating terminals performance that remained in in container service 24/7 even USD 9.5 100% during lockdowns throughput MILLION Total contributions to COVID-19 efforts: Decrease in benefiting employees, energy intensity port users, host communities, partner organizations, and 10.19 government agencies PHP 30 MILLION TEUs and units st carbon-neutral container MILLION 1 shipment in the world (CGSA) ICTSI wildlife conservation 6% project in Palawan (8 MAJOR TERMINALS) 100% Consolidated net income attributable to equity holders percentage of MICT Expansion Two digital firsts: treated waste PICT and BGT 100% water reused in introduce digital Full adoption of online NorthPort payments at MICT: firsts in their face-to-face transactions 3.3 now a thing of the past USD 101.8 MILLION TEUS respective markets MILLION
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We have yet to see the full magnitude of the pandemic's effects on families, communities, nations, and global trade. But we have already witnessed how people have truly been created with as-yet-unplumbed reservoirs: of kindness and tenacity and cooperation, going from first response to initial recovery and on to rebuilding, even if it be in radically new and unfamiliar ways. CHAIRMAN’S Lifting today In our home country, the Philippines, our people MESSAGE In the midst of 2020’s extreme unpredictability, drew from deep reserves of grit and grace. we chose to prioritize staying on task to After all, parts of the country’s northern island fulfill our day-to-day responsibilities as a group, the Luzon region, were still grappling national critical infrastructure, while lifting with the aftermath of the Taal Volcano explosion up one another and staying on track in our when the contagion broke out. Unfortunately, sustainability commitments. bushfires also broke out in Australia, and storms heaped additional suffering on beleaguered Much of our work entailed ensuring that not a communities. Our terminals allocated few, not several, but all of our ports remained substantial resources to support our host open, 24/7, lockdown or not: sustaining communities in their disaster response. the precious supply lines of face masks and other personal protective equipment, In our organization, we implemented food aid, medical equipment, or laptops for work-from-home, flexi-hours, and skeletal online learning. deployment. Worldwide, our employees received updated health advisories and guidelines In Manila, with the enhanced community from their respective local governments. quarantine (ECQ), MICT, the nation’s largest, Those reporting onsite had mandatory health busiest, and most advanced port faced the screening and free food, and assistance with threat of a shutdown, as cargo clearances transport arrangements as needed. almost ground to a halt. We closed ranks with shipping lines, consignees, truckers, brokers, We released “Practices for a Safe forwarders, and government agencies and Workplace,” the Company’s omnibus and pushed back against this logistical fallout. The continually-updated guidance on preventing swift synergy reaped results: MICT operations and reducing COVID-19 transmission in our returned to normal utilization rates within 24 workplaces, reduce its impact on employees days after the ECQ’s onset. Thus, in Manila and stakeholders, and to maintain healthy and in all our other operations, we never business operations. Following measures stopped delivering the essentials that societies, dictated by the World Health Organization, communities, and economies needed to cope, International Maritime Organization (IMO), and to heal, and to recover. our host governments, terminal premises were kept safe, secure, and hygienic via rigorous disinfection. Beyond protocols, we launched intensified information campaigns supporting health and wellness.
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our inaugural edition where we focused solely Bucking difficulties posed by the crisis, we Prudence and potential on MICT as our flagship operation, we are pressed on with our environmental sustainability The crisis has been described as thankful for the gains made thus far. advocacies: reduced energy use and lower unprecedented—far too often, but rightly so. emissions, enhanced solid waste and effluents Yet we have the lessons learned from past Tracking from 2017, our Continually strengthening our governance, we management, and water usage monitoring. crises such as in 2009, and we are successfully launched the ICTSI Human Capital Statement, One notable development in helping ensure applying hard-won insights. As we approach inaugural edition where underscoring our commitments in respecting marine biodiversity is our partnership with the horizon that is 2021, we remain steadfast in we focused solely on MICT human rights, valuing diversity and inclusion, the Philippines’ Diliman Science Research our balanced course of prudent management and promoting health and safety, among others. Foundation on the Portable Ballast Water and strategic business growth. as our flagship operation, Moreover, in our Group-wide procurement Treatment System Project. The latter is slated we are thankful for the processes, we not only streamlined processing for possible upscaling and replication to help Thus, on the one hand, we sought to bring but elevated compliance standards as well—in the Philippine Government comply with IMO’s down our fixed costs and embarked on two gains made thus far. accordance with our Global Principles on Ballast Water Management regulations. capital market deals as part of our overall Human Capital and requirements put forth by financing and liability management exercise. the Sedex Members Ethical Trade Audit, one of Across the Group, we have ongoing We will continue to exercise utmost prudence the world's the most widely used social audits. commitments and varying stages of in the current climate, while being alert to implementation of sustainability policies, opportunities for growth. Leveraging digital transformation to benefit aligned with the Company’s benchmarks and All together—and in unity with its host our stakeholders has been indispensable in the voluntarily-adopted international standards Today, we will continue to protect and to build communities in the fight against COVID-19— maritime trade. It has been especially critical certifications. each other up—colleagues in the maritime the ICTSI Group contributed approximately for enhanced governance, risk management, industry, customers from the cargo and freight over USD 9.5 million to national and local and resiliency (including cyber resiliency) in Beyond our ports, we continued coastal sectors, partners in our host communities—even government agencies, immediate communities, light of COVID-19. cleanups and projects in reforestation and as we continue to help governments build and employees, and port stakeholders. In the biodiversity protection. develop economies and nations. The pandemic Philippines, we were among the first to respond We thus supported our digital workplace with may persist, but we will persevere with our to the private sector-led Project Ugnayan, an even more robust security posture, and Also to avert the next environment-caused vision: lifting our stakeholders by sustaining aiding families economically displaced by major streamlining of IT Helpdesks by the pandemic, the ICTSI Foundation is trade today, while upholding our sustainability the pandemic. To that initiative, we donated Company’s Global IT. We consolidated our strengthening its partnership with the Katala goals for tomorrow's generations. over USD 2 million, while also supporting Go Group-wide digital infrastructure to empower Foundation with its ongoing wildlife research Negosyo’s Project ARK, which aims to make our 32 multilingual sites to be increasingly and conservation initiatives aimed at protecting mass testing accessible at the community level. responsive to their local markets. ICTSI also the country’s threatened wildlife. The assault on formally signed onto the TradeLens blockchain ecosystems, particularly on global wildlife trade (Original signed) Before yearend, we pledged more help: offering platform (developed by IBM and Maersk) and its and consumption, were seen to have allowed Enrique K. Razon Jr. funding and logistical assistance to cover global network of container terminals. Complete the virus to jump from animals to humans. Chairman & President COVID-19 vaccine purchases not only for ICTSI integration into TradeLens will help us optimize employees, but for the Philippines’ Department work with regulatory authorities, improve our While accomplishing all these, we took of Health, government workers, and in the terminals’ visibility to incoming shipments and careful note of the easy-to-overlook needs of logistics sector – enough for three million doses. enable online updates from sea carriers. vulnerable sectors: people most likely to bear the brunt of COVID-19's socioeconomic impacts. Upholding tomorrow To further protect our customers, we kept Our COVID-19-related assistance to our host Despite the crisis’ outsized impact on reducing face-to-face transactions, while communities and to vulnerable sectors were far global affairs, we remain on course in our ensuring we continued providing highly efficient ranging in nature and geographical scope. sustainability journey. For 2020, our fourth services quayside, landside, and online. In this year of sustainability reporting, we have greatly race, several of our terminals—including PICT, Not to be forgotten are our responsibilities as expanded our scope: from 2019’s review of BGT, and MICT—scored digital firsts in their a “pure ports” player—independent of and with eight major terminals, we are now assessing our respective markets. no investments in shipping—aiding the Port sustainability progress in 24 of the 32 terminals Authorities in their own initiatives, and joining in ICTSI’s global portfolio. Tracking from 2017, them in support of and compliance with major regulatory developments in the sector.
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Our Purpose
While the locus of compliance will be To make ports around the world a driver for international shipping (and in some cases, positive and sustainable growth. fishing vessels), our sub-sector, being thus closely allied, plays a role in supporting the At ICTSI, we work tirelessly to develop Port States/Country Signatories as they and operate efficient and sustainable implement, monitor, and enforce these port facilities and deliver the highest regulatory measures. possible benefits to our customers, SUSTAINABILITY partners, people, shareholders, and to the Full speed ahead: safety, digitalization communities we serve. No less far-ranging are the developments CONTEXT that have taken place, and those that will still emerge, in our ports’ transactional interfaces and workplace environments. Our Values
Pre-pandemic, there had already been the ICTSI’s commitment to our partners and progressive strengthening of labor standards and communities began more than three decades health and safety within our organization, and ago in the Philippines. Our projects and across the industry. Now, add to that the broad terminals now extend across six continents Sector overview swath of measures relating to port workers’ and and are anchored around many of the same users’ safety in light of COVID-19 prevention, founding values that have underpinned our A sea change in the regulatory monitoring, and control. These, even as we sustainable approach to growing our business environment work alongside governments in ensuring the and our host economies. Our five values Reviews of 2020 will undoubtedly mark unimpeded flow of vital medical and food supplies. COVID-19 as the most pervasive factor that guide our behavior and form the foundation impacted global trade. Its fallout is expected to Moreover, in the years prior to 2020, our of our purpose: persist throughout 2021 and beyond. However, terminals had already been steadily developing, M Respect for all. We place the utmost importance on even prior to the pandemic, six megatrends adopting, and promoting various technologies safety, community, and diversity. The well-being and were already having outsized effects on the and systems. These digital transformation health of all our stakeholders is our number one priority. sector where ICTSI operates: the maritime initiatives—in both our organizational work We strive to have the highest standards in place to transportation sub-sector. processes and port transactions—were ensure that our people and stakeholders are safe, respected, and treated fairly. already resulting in efficiency gains and Of these six—corporate governance, growing enhanced transparency. M Trust. We lead with integrity, respect, and compassion protectionism, technological advancement, for our people, partners, communities, and our environmental performance, energy sector However, undoubtedly, it was the sudden global environment. We take great pride in working developments, and climate change—the last drive to drastically reduce physical face-to-face responsibly to earn trust and keep it. three are linked to environmental sustainability. interactions that dramatically accelerated the M widespread adoption of our already-existing Collaboration. We are a diverse and inclusive company working together and exploring new ways of doing Our customers in the international shipping digital systems: among our customers, public things to deliver the best possible outcome for all sub-sector have been spending the last several sector partners, and private sector partners stakeholders. As a responsible business, we embrace years preparing to comply with several major (including our suppliers). equality of opportunity and empower all our people to regulatory developments. Foremost among adapt, collaborate, and innovate across borders. these are the IMO 2050 Greenhouse Gas For our employees, the pre-pandemic digital M Target, the International Convention for the initiatives had already been providing valuable Tenacity. Our people work tirelessly with utmost determination to achieve their goals and deliver Control and Management of Ships’ Ballast opportunities for retooling and/or upskilling. on commitments to partners, shareholders, host Water and Sediments, the International Come 2020, they further benefited from the communities, and the environment. Convention for the Prevention of Pollution from built-in advantages of these technologies and Ships (MARPOL Annex VI or IMO2020), and systems: allowing work to be done remotely, M Passion. We are pioneers in an industry with deep the IMO Action Plan to Address Marine Plastic documents processed online (and thus safely linkages to the host economies and communities in Litter from Ships. offsite), and transactions completed. which we operate. Our people relish the challenge of exploring new opportunities, operating terminals, creating sustainable benefits for our host communities, protecting the environment while also delivering returns to our shareholders.
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Overview of 2020 Portfolio Company overview depend the region’s commercial traders, export Business profile Existing Operations processing zones, and other hubs. We also M Manila International Container Terminal (MICT), Partnerships for development handle large-scale project cargo for complex Organization Manila, Philippines ICTSI strategically partners with governments infrastructures such as for the energy and Our Company is incorporated in the Philippines M Subic Bay International Terminal Corp. (SBITC), New Container seeking to privatize their maritime port holdings mining sectors. with principal offices at the ICTSI Administration Terminals 1 & 2, Subic Bay Freeport, Philippines and to optimize operations, supporting Building, Manila International Container Terminal, M Manila North Harbour Port, Inc. / NorthPort (MNHPI), Philippines these nations as they leverage domestic and Our growing portfolio South Access Road, Port of Manila, Manila, M Cavite Gateway Terminal, Inc. (CGT), Cavite, Philippines international trade to achieve their sustainable Established in December 1987 in the Philippines. We have been publicly listed in the M Laguna Gateway Inland Container Terminal, Inc. (LGICT), Laguna, Philippines development visions and goals. Philippines, ICTSI has become a leading port Philippine Stock Exchange since March 1992. M Bauan International Port, Inc. (BIPI), Batangas, Philippines operator, innovator, and pioneer. Soon after M Davao Integrated Port and Stevedoring Services Corp. Through our subsidiaries, we collaborate with consolidating and strengthening our flagship Markets and services (DIPSSCOR), Davao City, Philippines Port Authorities in Public-Private Partnerships operations at the Manila International Container We work exclusively in the market segment of M South Cotabato Integrated Port Services, Inc. (SCIPSI), Gen. (PPPs), within the framework of long-term Terminal (MICT), we launched an international cargo handling and related services market. Santos City, Philippines concession agreements. and domestic expansion program. Along our Our core business includes the operation, M Mindanao Container Terminal (MCT) / Mindanao International journey, we developed the world’s first fully management, development, and acquisition of Container Terminal Services, Inc. (MICTSI), Misamis Oriental, Philippines Our ports serve as the primary transit points automated international container handling common-user container terminals, pursuant to M Hijo International Port Services, Inc. (HIPSI), between two sub-sectors in the transportation facility at Victoria International Container our agreements with the Port Authorities. Our Tagum City, Philippines sector: shipping, which is the maritime or Terminal, Melbourne, Australia. market focus is on container ports, or dedicated M PT Makassar Terminal Services (MTS), South Sulawesi, Indonesia waterside part of the supply chain, and freight container terminals in particular, facilities with M PT PBM Olah Jasa Andal (OJA), Tanjung Priok, transport, towards the landside of the supply By the close of 2020, our operations covered total annual throughputs ranging from 50,000 Jakarta, Indonesia chain, or the port’s hinterland. These are the three geographic regions: Asia, the Americas, TEUs to 3.3 million TEUs. M Pakistan International Container Terminal Ltd. (PICT), regions where our ports play a significant role and Europe-Middle East-Africa (EMEA), Karachi, Pakistan in supporting and facilitating import and export consisting of 32 terminals in 19 countries across We serve the following commercial customers M Yantai International Container Terminals Ltd. (YICTL), Yantai, China cargoes. Such cargoes include raw materials, six continents, and employing 8,563 people. and port users: shipping lines; cargo owners/ M Contecon Manzanillo S.A. de C.V. (CMSA), Colima, Mexico semi-finished and finished goods, upon which shippers; and landside (port hinterland) logistics M Contecon Guayaquil S.A. de C.V. (CGSA), Guayas, Ecuador M Tecon Suape S.A. (TSSA), Pernambuco, Brazil M TecPlata S.A. (TECPLATA), Buenos Aires, Argentina M Baltic Container Terminal (BCT), Gdynia, Poland ICTSI 2020 Fast Facts Sectoral & Market Focus M Batumi International Container Terminal, Ltd. (BICTL), 1 2019 2020 Batumi, Georgia M Adriatic Gate Container Terminal (AGCT), Rijeka, Croatia Revenues from operations (Gross of port authorities' share) M Madagascar International Container Terminal Services, Ltd. Transport Sector (MICTSL), Toamasina, Madagascar M Basra Gateway Terminal (BGT) / ICTSI (M.E.) DMCC, USD 1.48 USD 1.51 Umm Qasr, Iraq BILLION BILLION Maritime Ports M Operadora Portuaria Centroamericana S.A. de C.V. (OPC), Cortes, Honduras Total cargo handled M Victoria International Container Terminal Ltd. (VICT), Port Development, Melbourne, Australia Management, and M Matadi Gateway Terminal (MGT) / ICTSI DR Congo S.A., 10.18 10.19 Operations MILLION TEUs MILLION TEUs Mid-Range Market: Matadi, D.R. Congo 50,000 - 3.3 million M Sociedad Puerto Industrial de Aguadulce S.A. de C.V. (SPIA), Total capitalization TEU Range Buenaventura, Colombia Debt ICTSI M South Pacific International Container Terminal Ltd. (SPICTL), Papua New Guinea M Motukea International Terminal Ltd. (MITL), Papua New Guinea USD 1.66 USD 1.77 BILLION BILLION Greenfield Project M Terminal Maritima de Tuxpan S.A. de C.V. (TMT), Equity Veracruz, Mexico New Projects Secured USD 1.63 USD 1.86 Vessel and Cargo Container Services for Weighing Roll-on / Roll-off Bulk and General M ICTSI Rio Brasil 1 (ICTSI Rio) / Libra Terminal Rio S.A., BILLION BILLION Rio de Janeiro, Brazil Container Storage Stripping and Refrigerated Cargo Handling Handling Stuffing Containers or M Kribi Multipurpose Terminal (KMT), Kribi, Cameroon Reefers
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players such as independent brokers, along with This is where ICTSI offers a unique strength. freight forwarders, especially trucking companies After all, the Company has over three decades’ and truck drivers; and government agencies, depth of experience and expertise in creating primarily customs authorities in the territories ports that drive economic transformation and where we operate, and industry associations support people’s aspirations for sustainable (such as trucking associations) with satellite growth. And it has done so very effectively in offices or operations within the port premises. terminals in developing markets.
Business distinctive The Company drives sustainable development As one of the few truly independent inter- through parallel tracks: global corporate policies national port businesses with no shipping or and programs, projects conceptualized and consignee-related interests, ICTSI works and implemented by individual ports, and efforts transacts transparently with any stakeholders in that are either spearheaded or supported by the the port community. ICTSI Foundation. In recent years, the Philippine operations have also embarked on the ICTSI Employee Volunteerism Program, which Corporate commitments provides additional support for corporate, port, Sustainability and governance among these priorities is the Climate Change and Foundation projects. Believing that sound, prudent, and effective impact assessment on the terminals, and Sustainable development corporate governance is the bedrock of strategic planning for mitigation based on the In our work in nations, we have been Group-wide, we are constantly pushing for business sustainability, we have in place in Intergovernmental Panel on Climate Change delivering substantial and significant results increasingly sustainable operations, with ICTSI a robust structure that encompasses vital (IPCC) scenarios. as an acclaimed private sector partner that expanding or intensifying positive impacts areas such as general management, information develops high-performing ports which offer on six key areas: the economy, governance, systems, risk management, reliable financial United Nations Sustainable all-around value. the environment, customers, employees, host and operational information, and cost effective Development Goals communities and society at large. and profitable business operations. Having long held to the principle of sustainability (embodied in “the value of the long view”), We strongly emphasize compliance with our we work to ensure that its operations and contractual obligations; with the laws, rules, and transactions support and advance Good regulations that are in force in the territories Global Citizenship. where ICTSI operates; and with the international standards which we have adopted, such as ICTSI has successfully maximized opportunities those set by the IMO and the International to support the UN SDGs. These range from: Organization for Standardization (ISO). • Supporting national and regional goals through trade facilitation, especially in Committed to the continuing effort to developing markets. To these ends, ICTSI more systematically and deeply integrate creates and constantly upgrades major sustainability principles in strategic visioning, maritime port infrastructure, bringing planning, and execution—creating positive world-class efficiencies to ports. impact across operations, across borders, • Pioneering—especially in developing/ and across generations—we have fully emerging markets—in instituting international entrenched, beginning 2020, our Board-Level standards in labor, health and safety, and Sub-Committee dealing with Environment. security; introducing technologies and Social and Governance (ESG) issues. innovations; and, establishing quality, environmental, and other management systems. The Sustainability Steering Committee will • Greening operations: welcoming continue to be responsible for the execution opportunities to either develop livable port of the sustainability strategy, policies and cities, or re-establish existing port facilities programs that are currently implemented or in new sites outside of city limits; or utilizing which may still to be formulated. Foremost
Victoria International Container Terminal, Australia
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planning and technology to better manage Participation in external initiatives aspects of the container flow.
Global Reporting Initiative (GRI). The Company first adopted the GRI Apart from these, the ICTSI Head Office, the Standards in 2017 to enable it to report on its various sustainability Subsidiaries, and the ICTSI Foundation have initiatives, and continued to use the GRI Standards for this report. ongoing commitments to communities and International Maritime Organization (IMO). The International Ship and marginalized sectors: providing access to Port Facility Security Code (ISPS Code). ICTSI container terminals quality education, training in employable skills, that are operational (as of yearend 2019) are ISPS Code Compliant. and technical-vocational facilities; ensuring International Convention for the Safety of Life at Sea (Solas clean water, health services, and sanitation; Convention). In compliance with the Amendment on Verified Gross Mass Requirement, ICTSI provides weighing facilities. and, providing environmental education and International Organization for Standardization (ISO). Thirteen ecological solid waste management-based ICTSI ports that are operational (as of yearend 2020) are certified livelihood opportunities, among others. compliant with at least one type of ISO standard. US Department of Energy National Nuclear Security Administration United Nations Global Compact Megaports Initiative. Post-9/11 terror attacks, ICTSI’s flagship MICT In 2020, we officially launched our statement, was equipped (with technologies such as radiation portal monitors “Our Global Principles on Human Capital,” and handheld detection devices, and with training and support) to detect weapons of mass destruction. crystallizing our support of the principles of ASEAN Business Advisory Council. ICTSI is a member of the ASEAN the United Nations Global Compact. These Business Advisory Council – Philippines chapter. ICTSI President and principles are aligned with ICTSI ports’ CEO Enrique K. Razon Jr. is a member of the ASEAN Business Club. essential role as gateways to international Business Alliance for Secure Commerce (BASC). ICTSI (Americas trade, foundations for local economic growth, operations) CGSA in Ecuador is a member, and is BASC-certified. and drivers of community development. Our Federation of European Private Port Companies and Terminals Statement lays out our commitments to Puerto Aguadulce, Colombia (FEPORT). ICTSI (Europe-Middle East-Africa operations) subsidiaries human rights, diversity and inclusion, health BCT (Poland) and AGCT (Croatia) are member-ports. and safety, and labor rights (including fair United States Bureau of Customs and Border Protection Container remuneration and freedom of association and of existing facilities), or continually required Services, Inc. with MICT Procurement to form Security Initiative. A security regime that helps ensure all containers that pose potential risk for terrorism are identified and inspected collective bargaining). throughout the day-to-day management and ICTSI Global Procurement, allowing strategic at foreign ports before they are placed on vessels destined for the operations of our ports and terminals. procurement for the top and critical spend of United States. Ethical and responsible supply chains the ICTSI Group. Supplier Ethical Data Exchange (SEDEX). ICTSI is a member of ICTSI’s own supply chain covers a broad These include, but are not limited to the SEDEX, one of the world’s leading ethical trade service providers. range of suppliers. These include suppliers of construction sector; banking/capital markets; In the selection and accreditation of suppliers, In 2020, ICTSI, in screening its own suppliers, has adopted social auditing standards in line with the SMETA (SEDEX Members Ethical products and services that are required during legal services; specialized consultancy ICTSI adheres to local standards and Trade Audit). the port infrastructure development (as in the services (such as those pertaining to Climate policies set by the Department of Trade and case of greenfields), or the redevelopment Change and Sustainability); cargo handling Industry in the Philippines (where we are and container yard equipment and vehicle/ headquartered) and by its counterpart agencies fleet suppliers; ICT suppliers and consultants in the respective jurisdictions where our (hardware, software, systems, and security); subsidiaries operate. Membership banking and insurance (for both human resources and capital assets); pre-need/ Moreover, in 2020, we adopted the SMETA health/medical for employees; power and methodology. As one of the world's most widely water supply, telecommunications, and other used social audits, SMETA helps ICTSI in the utilities; and, safety and security, cleaning, systematic and on-ground assessment of our and housekeeping. suppliers, towards ensuring responsible working conditions all across our own supply chain. ■ In 2020, we further streamlined our Group-wide procurement processes and merged our shared services company, ICTSI Asia Pacific Business
22 23 ICTSI SUSTAINABILITY REPORT 2020
Good Global Citizenship
ICTSI’s corporate commitment to supporting sustainable development in its ports’ host nations and communities, ensuring sustainable operations, and conducting annual sustainability reporting (starting with fiscal year 2017), rest on our overarching principle: Good Global Citizenship.
This principle guides the Company's relationships and actions. We continually work to ensure that the broadening impact of genuine Expanded coverage and Good Global Citizenship is apace with our COVID-19 response expanding geographical footprint. This fourth sustainability report presents ABOUT THIS The same principle drives and shapes our our full-speed-ahead commitment: we are contributions towards accomplishment of the building on lessons learned and gains made in UN SDGs. As in our 2018 and 2019 editions, 2019, when we had covered the sustainability REPORT this ICTSI Sustainability Report 2020 not progress of our eight major terminals for the only features our initiatives—those launched second consecutive year. Thus, for 2020, we Group-wide, those conceptualized by specific have cast a much wider net and covered 24 terminals in response to local needs, and those of the 32 terminals in our global portfolio. It either initiated or implemented by the ICTSI must be noted, however, that whenever data Foundation, Inc., our official Corporate Social pertaining to "24 terminals" are shown, such Responsibility arm, but also clearly identifies data always include those from the eight major the UN SDGs to which these programs and terminals that had been covered in the 2018 projects contribute. and 2019 editions of the SR.
Ports covered in this 2020 edition
• MICT – Manila, Philippines • MNHPI – Manila, Philippines • SBITC (NCT 1 & 2) – Subic, Philippines • BIPI – Bauan, Philippines • CGT – Tanza, Philippines • LGICT – Calamba, Philippines • SCIPSI – General Santos City, Philippines • DIPSSCOR – Davao City, Philippines • MCT – Tagoloan, Philippines • HIPSI – Tagum City, Philippines • SPICTL – Lae, Papua New Guinea • MITL – Port Moresby, Papua New Guinea • PICT – Karachi, Pakistan • VICT – Melbourne, Australia • MICTSL – Toamasina, Madagascar • MGT – Kongo Central, Congo • BGT – Umm Qasar, Iraq • BICT – Batumi, Georgia • BCT – Gydnia, Poland • AGCT – Rijeka, Croatia • OPC – Cortes, Honduras • CGSA – Guayaquil, Ecuador • CMSA – Manzanillo, Mexico • TSSA – Pernambuco, Brazil
24 25 ICTSI SUSTAINABILITY REPORT 2020
These 24 terminals were chosen on the following Topic-Specific Disclosures as based on the basis: their current status (operational at the time 2020 operations of the 24 terminals covered Materiality Heat Map of reporting, whereas other terminals may be except otherwise indicated. greenfields in varying stages of development); their size or scope of operations; strategic value The Company reports its impacts on the to the nation and/or region where they operate; economic, environmental, and governance level of performance in key sustainability metrics spheres, as well as workforce, customers/ such as impacts on the environment, on society, clientele, and communities. on the economy, and governance; and, their contribution to the overall business performance In each sustainability reporting cycle, we conduct ECONOMY (i.e., ICTSI Group). a multi-step materiality assessment process that @ ENVIRONMENT helps us identify the most important ESG issues BP # We have retained the six sections representing for our business and our stakeholders. BR ! GOVERNANCE key areas of our impact, namely, Environment, % EMPLOYEES Governance, Economy, Employees, This helps us determine what we should be * Customers, and Society. or are reporting (including the process and CUSTOMERS results of measuring our performance on those BN $ issues). Just as important, the insights gleaned BQ SOCIETY Significance to stakeholders to Significance Framework, standards, from the process help inform our strategy and materiality to manage them.
ICTSI continues to adopt the Global Reporting The material issues were classified as having Initiative (GRI) Standards. Launched in 2017, high, neutral, or lesser impact based on the it is one of four globally accepted reporting materiality assessment that had been conducted Significance of Economic, Environmental, and Social Impacts frameworks allowed by the Securities and against the larger backdrop of the unfolding Exchange Commission of the Philippines (SEC), pandemic. The high impact issues thus rightly for use by publicly listed corporations in the reflect the key issues where the Company could LESSER IMPACT NEUTRAL IMPACT HIGH IMPACT country (where ICTSI headquarters are located). make the most impactful contributions (including those that could be of immediate or substantive 23 Other Stakeholders 9 Digitization 1 Safety and well-being Prepared in accordance with the GRI benefit, such as the safety protocols and the Engagement 10 Labor-Management Relations 2 Economic Performance 24 Materials stewardship 11 Engaging the workforce 3 Customer Engagement and Standards: Core Option, this report presents continuing port operations that supported the 25 Local hiring 12 Indirect economic impact Satisfaction data on the GRI Topic-Specific Standards and inflows of medical suppplies). 26 Biodiversity 13 Customer health and safety 4 Compliance 14 Energy Efficiency 5 Sustainable supply chain 15 Responsible Tax Management 6 Learning and development CATEGORY KEY MATERIAL ISSUES RELEVANT SDGS and Payment 7 Customer data privacy and 16 Emissions and Climate security EMPLOYEES Safety and Well-being Change 8 Corporate Governance and 17 Government engagement Business Ethics 18 Talent Acquisition and ECONOMY Economic Performance Retention 19 Community relations and initiatives CUSTOMERS Customer Engagement and Satisfaction 20 Managing waste 21 Diversity and Equal GOVERNANCE Compliance Opportunity 22 Water management
ECONOMY Sustainable Supply Chain Changes from previous materiality assessment. 1 More defined high impact issues (rating >3 in assessment) 2 Safety and well-being of our people is now the top priority, replacing customer satisfaction EMPLOYEES 3 Compliance, sustainable supply chain and corporate governance and business ethics – neutral to high Learning and Development 4 Other stakeholders engagement – neutral to lesser 5 Local hiring – high to lesser 6 Talent acquisition and retention merged the fair labor practices, talent acquisition and pay and benefits issues – high to neutral CUSTOMERS Customer Data Privacy and Security 7 Customer health and safety, government engagement, community relations and initiatives and climate change – high to neutral
GOVERNANCE Corporate Governance and Business Ethics
26 27 ICTSI SUSTAINABILITY REPORT 2020
Stakeholders Engagement Map On the other hand, those issues falling under the transportation sector), but the particular Approaches Key topics and concerns raised the Neutral impact classification retain their sub-sector (i.e., marine ports). overall value or importance while being • Website • Concession matters • Direct communication • Regulatory and reportorial requirements of less immediate impact in light of the In this sub-sector, ICTSI operates as a • Annual audited financial statements circumstances and context. transnational business entity, part of a complex • Annual sustainability report Public sector • Annual corporate governance report network of direct and indirect port users, and • Annual, quarterly, and monthly reports • Disclosures and other required reports Items categorized as having Lesser impact, extensive backward and forward linkages of • Corporate/institutional marketing communications while not being currently classified as being suppliers and clients/customers, respectively. • Advertisements as pressing/urgent as those in the first two • Website • Customer satisfaction • Client online dashboard • System issues categories, have a stable value: throughout the The following Stakeholders Engagement Map • ICTSI mobile app • Billing issues pandemic, the Company has maintained its outlines the various specific stakeholders, the • 24/7 web-based communication systems • Operational issues • Quarterly customer satisfaction survey • Health and safety protocols related to adherence to the principles, policies, practices, approaches that the Company adopted in 2020 Port users • Customer care local hotline COVID-19 pandemic and resource allocations for these items. • Weekly client visits and virtual tours (priority customers and • Digitization of port processes to engage these stakeholders, and the key other stakeholders) (An example would be the gains made in the topics and concerns raised by the latter. • Monthly association meetings • Quarterly trainings and seminars Philippine biodiversity conservation project in • Annual customer appreciation/thanksgiving events Palawan, wherein site surveys were held and • Direct meetings • Performance management local linkages were made while complying with Notes • Website • Employee welfare lockdown restrictions.) • Ad hoc correspondence • Labor-management relations • Employee bulletins • Health and safety protocols related to While the 2017 report focused primarily on the Monthly newsletter COVID-19 pandemic Employees • The materiality assessment process involved sustainability performance of the MICT, the • Quarterly Ugnayan sa Pantalan • Annual employee relations activities several steps: 2018 edition had an eight-port coverage. The • CBA (every five years) • Volunteering activities in coordination with ICTSI Foundation • Establishing the materiality assessment expansion had served as a key preparatory step • Other employment engagement activities framework, including reviewing the definitions of towards eventually getting all ICTSI ports on • Website • Quarterly and year-to-date consolidated a preliminary list of material issues and assessing board with the undertaking and being able to • Quarterly Investors’ Briefing financial and operational performance of them against industry-accepted definitions. set baselines as well as targets moving forward. • Investor (Equity) Conferences existing portfolio Shareholders • Annual Shareholders Meeting • Performance of existing/organic terminals Conducting a desktop assessment of internal • Annual Audited Financial statements • Status of new projects • • Annual Corporate Governance Report • Prospects and projects in the pipeline and external documents provided/published by Where 2019 and 2020 data for a topic-specific • Interim Quarterly Unaudited Financial Statements ICTSI (to understand the relative importance of disclosure are both available, these are shown • Website • Liquidity management the preliminary material issues list). side by side. Derivation processes, limitations, • Investor (Debt) Conferences • Quarterly and year-to-date consolidated Conducting a materiality assessment survey and other clarificatory notes are shown • Direct communication/Regular discussions with credit risk financial and operational performance of • officers of relationship banks existing portfolio responded to by the Company's personnel. wherever appropriate. Creditors • Annual Shareholders’ Meeting • Performance of existing/organic terminals • Annual audited financial statements • Status of new projects The issues on the list were each assessed on • Annual corporate governance report • Prospects and projects in the pipeline the following: impact on economy, environment While 2020 data on topic-specific disclosures • Interim quarterly unaudited financial statements and society, consequence on business, and focus on the performance of the twenty-four • Website • Supplier performance stakeholder interest. ports, mention is also made of the sustainability • Direct communication • Contract requirements Providing a final materiality matrix combining policies, standards, systems, practices, • New supplier accreditation and annual supplier • Health and safety protocols related to • Suppliers reassessment COVID-19 pandemic the desktop assessment and the materiality or processes that are already in place in • Training • Company direction/priorities assessment workshop results. other operations. • Supplier engagement/recognition • Supplier-related memos • Proper use of supplier systems Validating the top material issues with • • Monthly newsletter • Health ICTSI management. Reasonable care has been exercised in ensuring • Quarterly consultation with concerned government • Education comprehensive coverage of sustainability issues, agencies, communities, and partners • Shelter • Annual ICTSI Foundation Accomplishment Report • Livelihood/Job creation impacts, approaches, and initiatives. Equal • Forum with partners • Community development care has been given to ensure ease of access • Direct communication with the communities • Volunteering activities Stakeholders identification • Participation in events • Environmental management to data. Online, links are provided to the other Communities and • Leadership trainings • Social assistance and engagement • Government-coordinated projects ICTSI reports as soon as these are published, people groups • Volunteerism through local community projects As illustrated in the Sustainability Context and copies duly provided to the relevant report • Assessment after every project • Annual scoping in all communities section of this report, ICTSI operates in the users, including but not limited to shareholders, • Monthly meeting with EcoPatrols transportation sector, particularly the maritime financial institutions, and regulatory bodies • Quarterly meeting with different clusters • Ad hoc discussion with stakeholders ports sub-sector. In using or referring to this exercising jurisdiction over ICTSI terminals in • Participation in events, membership meetings and general assemblies report, and in assessing ICTSI’s performance the Philippines and across the Company’s Asia in the priority topics covered, it is helpful to Pacific, Americas, and Europe, the Middle East • Direct communication • Employee welfare Trade unions and • Ad hoc get-togethers • New policies or programs about to be keep in mind not only the broader context (i.e., and Africa regional operations. ■ • Monthly Labor-Management Council meeting implemented industry associations • Quarterly Ugnayan sa Pantala • Individual concerns
28 29 ICTSI SUSTAINABILITY REPORT 2020 01 ENVIRONMENT
Context & Commitments We are committed to continuously optimizing energy consumption, reducing carbon emissions, improving waste management (including continuing partnerships with parties involved in materials recovery and recycling), and stricter monitoring of water management in terms of consumption levels and wastewater treatment.
Our ongoing investments in environmentally- sustainable processes include financial, human, and technological resources to ensure Group-wide environmental compliance and monitoring.
Just as important, we are committed to promoting environmental sustainability and supporting conservation efforts in host communities and regions.
30 31 ICTSI SUSTAINABILITY REPORT 2020 Environment
ICTSI ENVIRONMENTAL TRAINING
To help build port workers’ capabilities Remaining resilient in environmentally sustainable operations Groundwork and to advance its amid global headwinds environmental advocacies M We have ongoing commitments and varying stages of implementation of in the port and among host communities, sustainability policies and practices that are geared to meet Company-initiated As a 21st century calamity, COVID-19 highlighted how ICTSI conducts Group-wide benchmarks. interconnected our lives and livelihoods have become in the capability-building and M learning activities. These We have installed a Facilities Management System that would enable real-time global economy wherein we operate. The pandemic presented activities include the monitoring and reporting of power consumption. following modules and topics: M Our leading terminals such as those in Manila, Ecuador, China, and Pakistan have the challenge of keeping ports open and ships moving to minimize
crafted sound environmental policies built around Integrated Management Systems. disruption while ensuring the health and safety of seafarers Basic Pollution Control and port workers. But beyond that is the more dire reality: how Officers Training environmental and climate issues can potentially lead to more Wastewater Treatment Facility Operations devastating crises that can cripple world economies and pose Gains Chemical Spill and existential threats. Response M ICTSI received the Best in Initiative for Environmental Responsibility during The Asset ESG Awards 2020 for its eco-friendly wash bays for mobile equipment at its Australian 8-hour Environmental Training for Managing subsidiary VICT. Mobilizing our organization to support the new and ever more Heads M ICTSI has embarked on the Ballast Water Treatment System Prototype Design and stringent environmental regulations is ICTSI’s duty to our Implementation Project through the ICTSI Foundation. This supports the IMO Ballast Dangerous Goods customers and the maritime trade industry worldwide. While we Regulations Water Management guidelines. M The Group marks a first as CGSA ships the world's first carbon-neutral-certified land have been developing and improving our environmental programs ISO 14001:2015 Environmental and port logistics container. and policies for years, we recognize the fact that COVID-19 will Management System M Additional hybrid RTGs were deployed at the MICT; these enable the Company only increase the societal demand for sustainability. We will adapt Awareness to reduce terminal emissions and fuel consumption per move by up to 40 and 60 and remain resilient in the face of these global trade headwinds as ISO 14001:2015 percent, respectively. Environmental M we regard the pandemic and our successful responses to it as a Management System The increased installation of LED lighting systems in various terminals is resulting in Lead Auditors Training significant reduction in individual power consumption—most notably in VICT, with lighting springboard for a sustainable blue recovery. consumption reduced by 88%. ISO 14001:2015 Environmental Management System Internal Auditors Training
Waste Analysis Moving Forward Characterization Study M Environmental Aspect/ More terminals are pipelined to develop their respective policies for managing water International certifications Impact Evaluation and and energy consumption in 2021. Control M For the key terminals, especially those in more mature economies, we have also • Manila International Container Terminal (Philippines) ISO 14001:2015 • South Cotabato Integrated Port Services, Inc. (Philippines) Understanding Material voluntarily complied with ISO standards and best management practices, beyond ENVIRONMENTAL MANAGEMENT SYSTEM • Pakistan International Container Terminal, Ltd. (Pakistan) Safety Data Sheets continuing our full compliance with regulatory requirements. • Contecon Guayaquil SA (Ecuador) • Tecon Suape SA (Brazil) Environmental Laws, M We will continue to pursue ISO Certification for all our terminals, while sustaining the • Baltic Container Terminal (Poland) Rules and Regulations drive towards renewals for currently-certified terminals. • Yantai International Container Terminals (China) • Contecon Manzanillo SA (Mexico) Ambient Air, Water, and M We continue to invest in sustainable technologies and greener multimodal • Operadora Portuaria Centroamericana SA (Honduras) Noise Monitoring transportation options (including the development of off-city marine or land-based • Madagascar International Container Terminal Services Ltd. (Madagascar) connectivity, such as railways). • Basra Gateway Terminal / ICTSI (ME) DMCC (Iraq) Environmental Impact Assessment M We will pursue our progress towards newer, more fuel-efficient and reduced-emission • ICTSI Rio Brasil 1 Libra Terminal Rio SA (Brazil)
technologies, especially for our cargo handling fleet. • Baltic Container Terminal (Poland) ISO 5001:2011 Energy ISO 50001 Management System ENERGY MANAGEMENT SYSTEM Foundation Course
ISO 5001:2011 Energy • Contecon Guayaquil SA (Ecuador) Management System ISO 14064-3:2006 Lead Auditors Training GREENHOUSE GASES ISO 5001:2011 Energy Management Internal Audit Course
32 33 ICTSI SUSTAINABILITY REPORT 2020 Environment
On track towards Performance areas Having officially received ISO 9001, 14001, decarbonization and positive results and 45001 certifications for Quality, Environmental, and Occupational Health and Being in the transportation sector that Safety Management, MICT recently installed a is responsible for around 24 percent of Environmental management systems management system that would enable real-time greenhouse gas emissions globally, the shipping Working alongside national regulatory monitoring and reporting of power consumption. industry aims to be at the forefront of the fight policies of specific territories is ICTSI's own Targeted for operation in the first quarter of against climate change. comprehensive programs to manage and 2021, this system will help seamlessly provide control energy consumption and emissions empirical data that can be used to identify top With the ever-increasing demand for solutions in the majority of our ports. Among the ports power consuming facilities in the terminal. that enable sustainable and responsible in the Philippines, MICT and SCIPSI are two shipping, ICTSI remains committed to play an of the first to be certified on ISO 14001; For its part, CMSA closed 2020 with its important role in helping the maritime trade Elsewhere in Asia, our Pakistan and China successful recertification in ISO 9001 and industry meet its CO2 reduction targets. In this terminals (PICT and YICT) are likewise certified. ISO 14001, and the issuance of the terminal’s regard, we continue to gain traction in our shift In the Americas, our Rio Brasil, CMSA, and environmental quality certificate by Procuradoría towards cleaner fuels, especially for our cargo TSSA terminals are similarly certified, along Federal de Protección Al Ambiente (PROFEPA). handling equipment fleet. with BGT and MICTSL in our EMEA regional The PROFEPA certification follows CMSA’s Contecon Guayaquil handles operations. These terminals have aligned their voluntary registration in Mexico’s National st We also recognize how Environment, Social and operations around Integrated Management Environmental Audit Program. These underscore world's 1 carbon-neutral Governance (ESG) monitoring and reporting Systems (ISO 9001, ISO 14001) that monitor the value of CMSA’s investments in systems and requirements are increasingly growing in their quality of operational processes and technological tools for effective environmental container shipment importance for all stakeholders within the environmental impact. management and stringent monitoring. shipping industry. ICTSI is ramping up adoption Contecon Guayaquil CGSA loaded the container to of these measures across all our operations,
(CGSA) at the Port of Antwerp-bound vessel MSC Geneva. to ensure the overall health of our terminals’ Guayaquil in Ecuador CGSA, the first port operator in host communities. The safety of life at sea and handled the world’s first the Americas to obtain ISO 14064 across port operations, and the protection of
carbon-neutral-certified carbon neutral certification from our marine environment remain paramount container shipment last 12 TUV Rheinland, strictly applied in our corporate policies, even as we strive to More eco-friendly December 2020, employing the principles of environmental RTGs for MICT a logistics process involving stewardship and use of technology ensure that the flow of waterborne commerce is environment-friendly supply chain to protect its surrounding not unnecessarily disrupted. In 2020, in line with players, from the exporter to the port areas. CGSA’s certification MICT’s continued push for and distributor. and compensation process was With our strong focus on environmental environmentally sustainable The milestone was achieved performed locally by Sambito S.A. stewardship, we understand how technological technology in its operations, the Philippines’ leading through the participation and Finally, the bananas were innovation goes hand in hand with our cooperation of TropicalFruit Export distributed and marketed under the trading gateway, received eight thrust to improve our ports’ air quality, SA, CGSA, and Societe Internationale SIIM brand Selvatica. SIIM, a French new rubber tired gantries (RTGs), d’Importation (SIIM)–all carbon wholesale distributor of fruits and energy consumption, and waste and water the second tranche of a 16-unit neutral-certified and known for their vegetables, has also been involved management. In line with this, we continually order commissioned between 2018 strong adherence to sustainable in developing sustainable agriculture invest in port infrastructure and facilities and 2019. These hybrid RTGs are development and environmental since 2014 through its foundation, that enhance our operational efficiency more fuel efficient than traditional care principles, as well as strict and is an advocate of the UN SDGs. while simultaneously helping minimize our cranes, enabling the Company to reduce terminal emissions and fuel compliance to clean technologies Ecuadorian Minister of Transport environmental impact. and neutralization of their respective and Public Works Gabriel Martínez consumption per move by up to 40 carbon footprints. stressed the importance of the CGSA and 60 percent, respectively. To keep The shipment of Ecuadorian concession: “It’s such a source of improving service levels, the MICT, bananas came from TropicalFruit, pride for us that Contecon Guayaquil, under its equipment replacement an Ecuadorian company dedicated concessionaire of Guayaquil’s public program, plans to acquire next year to exporting high quality tropical port, has achieved this milestone, another eight hybrid RTGs to add to fruits using stringent standards and that it has been the first to do the 32 hybrid RTGs that had been with emphasis on environmental so. We weren’t wrong last year when previously acquired. ■ preservation, social responsibility, we released USD 170 million worth health, and safety. The Company of investment for this port, and we has been certified as carbon neutral signed the addendum to give them 19 since 2015. more years for the concession.” ■
34 35 ICTSI SUSTAINABILITY REPORT 2020 Environment
All ICTSI ports abide by strict commitments of Environment for the third consecutive year. In our Indirect GHG Emissions (Scope 2), the installation of LED lighting upgrades on all to manage their individual consumption and It is also the first port in Ecuador and Latin the eight major terminals posted an uptick five automated quay cranes. Whereas each emissions. Their effectiveness is periodically America to achieve this certification, and has due to the increased volumes of refeer cargo crane used to have 47 1,000-watt high-pressure evaluated through the submission of reports, recently shipped the world's first carbon-neutral handled, that had required in turn, increased sodium lights, now these have been replaced on-site audits and KPIs. Other investments in certified land and port logistics container. power consumption. by 14 400-watt LED lights, reducing overall environmentally sustainable technologies further electricity usage by 971 megawatt hours and contribute to fuel and energy efficiencies. In 2020, our petrol and LPG consumption Managing energy consumption carbon emissions by 1,042 tons. This is a slightly rose for our 8 major terminals as we More alternative energy solutions come in the significant 88 percent reduction that equates Lowering carbon emissions shifted towards these cleaner fuel options and form of increased installation of LED lighting to an average savings of AUD 85,000 (over CGSA continues to be a port to emulate as deployed additional vehicle fleets, aligned with systems. A notable example is VICT in Australia, USD 65,400) per annum for VICT. Iraq’s BGT, it earned the “Green Point” Environmental our long-term directions. which has successfully lowered its power Croatia’s AGCT and the Philippines’ MICT have Certification issued by the Ecuadorian Ministry consumption and carbon emissions through likewise started adopting more LED fixtures
Energy 2019 2020 2019 2020 Emissions
Notes on fuel and electricity Notes on direct (Scope 1) GHG consumption: emissions: 1 On standards, methodologies, 1 No data available for specific Electricity assumptions, and/or calculation breakdown of gases (by type) Direct GHG Emissions (Scope 1) tools used: the figure on included in the calculation (i.e., Total Electricity Consumption (Millions) electricity consumption is the whether CO₂, CH₄, N₂O, HFCs, Total Direct GHG Emissions (Scope 1) in Metric Tons of CO₂ Equivalent aggregate of the electricity PFCs, SF₆, NF₃, or all). 8 major terminals 8 major terminals 24 terminals used for the year which were 2 No data available on Biogenic 8 major terminals 8 major terminals 24 terminals measured/billed by the respective CO₂ emissions. utility companies. On the 3 Base year for the calculation other hand, fuel consumption is 2018. GIGAJOULES GIGAJOULES GIGAJOULES figures were monitored by the 4 The corresponding emission 0.47 0.49 1.01 Engineering Department. factor for each type of fuel was 81,151 69,104 114,395 2 Source of the conversion used as the conversion factor. factors used: http://www. 5 Consolidation approach for Diesel Petrol Fuel onlineconversion.com/energy.htm emissions is operational control. 3 For 2019 and 2020, there was 6 Standards, methodologies, 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals negligible usage of natural gas. assumptions, and/or calculation Diesel (Millions) Petrol (Millions) tools used: Total GHG emissions 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals Notes on energy intensity ratio: from fleet = (quantity of consump- 74,729 65,416 105,087 859 1,231 1,459 1 Total moves (which include tion *emission factor kgCO₂e per actual yard moves) are used to unit)/1000. 1.09 GJ 0.88 GJ 1.41 GJ 0.01 GJ 0.01 GJ 0.01 GJ calculate the energy intensity 7 Location-based methodology Heavy Fuel Oil LPG ratio. is used. Heavy Fuel Oil (Millions) LPG (Millions) 2 Energy from fuel and 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals electricity are included in the Notes on indirect (Scope 2) GHG 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals computation of the ratio. emissions: 3 Energy consumption factored 1 No data available for specific 5,516 2,054 2,054 47 403 408 GJ GJ GJ GJ GJ GJ in the computation is limited breakdown of gases (by type) 0.07 0.03 0.03 0.00 0.01 0.01 to consumption within the included in the calculation (i.e., Natural Gas organization whether CO₂, CH₄, N₂O, HFCs, Total fuel consumption (Millions) PFCs, SF₆, NF₃, or all). 2 Base year for the calculation 5,387 8 major terminals 8 major terminals 24 terminals is 2018. 3 The corresponding energy factor for the different countries with operations provided by the IEA was used as the conversion factor. Indirect GHG Emissions (Scope 2) GIGAJOULES GIGAJOULES GIGAJOULES 4 Consolidation approach for 1.09 0.93 1.46 Total Indirect GHG Emissions (Scope 2) in Metric Tons of CO₂ Equivalent emissions is operational control. 5 Standards, methodologies, as- 8 major terminals 8 major terminals 24 terminals sumptions, and/or calculation tools Total Energy Consumption (Millions) used: Greenhouse Gas protocol; electricity end use GHG emissions 8 major terminals 8 major terminals 24 terminals = (Quantity of consumption * the emission factor)/1000. 6 Location-based methodology 63,131 75,226 170,873 is used. 1.56 GIGAJOULES 1.42 GIGAJOULES 2.48 GIGAJOULES Note on GHG emissions intensity ratio: GHG Emissions Intensity Ratio 1 The organization-specific metric (the denominator) chosen GHG Emissions Intensity Ratio in Metric Tons of CO2 equivalent/thousand moves Energy Intensity Ratio to calculate the ratio was based on Total Moves (which includes 8 major terminals 8 major terminals 24 terminals Megajoules/Total Moves the actual yard moves for the eight major terminals). 8 major terminals 8 major terminals 24 terminals 98 92 107 9 9 12
36 37 ICTSI SUSTAINABILITY REPORT 2020 Environment
Newer technologies for to increase night visibility while reducing greater energy efficiency electricity consumption. 2019 2020 Waste ICTSI’s ports and terminals Waste management worldwide are getting on ICTSI recognizes that the proper implementation board with new technological of waste management plans can help reduce Hazardous solutions to lower their power waste generation and minimize the potential consumption and carbon effects of waste materials on the surrounding Total Hazardous Waste (excluding ULAB amount in pieces) emissions. In 2020, these 8 major terminals 8 major terminals 24 terminals initiatives include: environment. All major terminals have existing waste management policies that address LED LIGHTING UPGRADES environmental impacts. These policies are TONS TONS TONS reviewed and approved at the highest executive 840 729 1,365 Victoria International VICT (Australia). levels, which are committed to managing and Oily Waste Container Terminal, located in controlling wastes in their respective operations. 8 major terminals 8 major terminals 24 terminals Melbourne, is a fully-automated site capable of servicing the largest existing TONS TONS TONS and next-class vessels on trade. In VICT, which was purpose-built to have a low 679 655 1,026 2020, VICT has successfully lowered carbon footprint, continues to set a high Busted Flourescent Lamp
its power consumption and carbon standard for managing waste as well. Its fully 8 major terminals 8 major terminals 24 terminals emissions through the installation enclosed, eco-friendly wash bay for the cleaning of LED lighting upgrades on all five and maintenance of all portable machines 1 TON 1 TON 35 TONS automated quay cranes. Prior to this, on site was awarded Best in Environmental each crane utilized 47 1,000-watt high- Clinical Waste Responsibility Initiative during The Asset ESG pressure sodium lights, which were 8 major terminals 8 major terminals 24 terminals replaced with 14 400-watt LED lights. Award 2020. This, along with the Group-wide The upgrade reduced overall old lighting technology with new LED confirmed and highlighted CGSA’s use commitment to environmental sustainability and 1 TON 3 TONS 3 TONS electricity usage by 971 megawatt lighting increased visibility in the field of technology to implement processes operational efficiency worldwide, earned ICTSI hours and carbon emissions by 1,042 and electricity consumption per hour that contribute to more environmental- the Platinum Award from the longest-running ULAB tons, a significant 88 percent reduction was reduced from 212 kWh to 23 kWh. friendly port operations, namely: (1) ESG awards in Asia. 8 major terminals 8 major terminals 24 terminals that equates to an average savings the electrification of RTGs and use of of AUD 85,000 per annum for VICT. BGT (Iraq). The largest container fixed plugs to power reefer containers, PIECES PIECES PIECES Across the 24 terminals covered in this report, 1,188 1,486 2,007 Moreover, it secured VICT’s eligibility terminal in Iraq, BGT continues to set resulting in reduced diesel consumption to receive a rebate from the Essential the industry standard in the country for and greenhouse gas emissions; (2) there are strong commitments to managing Others Services Commission amounting to sustainability, safety, and innovation. switch to LED luminaires from sodium and controlling the wastes generated in their 8 major terminals 8 major terminals 24 terminals AUD 200,715.53 (USD 146,347.32). It recently switched to LED lights to vapor bulbs, lowering the terminal’s operations, in compliance with regulatory illuminate the container yards at BGT electricity consumption; and (3) and ISO standards as well as Group-wide 159 TONS 69 TONS 302 TONS MICT (Philippines). Aside from being East, and upgraded the system to reduction of special wastes through recognized initiatives. The methods include optimize their function by allowing a catalyst for economic growth, the retreading of disused tires. These temporary on-site disposal following a MICT, ICTSI’s flagship terminal and lights in some areas to automatically important actions also helped CGSA Non-Hazardous segregation system, and recycling through the Philippines’ leading trading turn off without hampering visibility. earn the ISO 14064 international Total non-hazardous waste gateway, aims to be a good neighbor Similarly, the LED lights in the quay certification for carbon neutrality partnership with local authorities. Specific 8 major terminals 8 major terminals 24 terminals to its surrounding communities by cranes at BGT West were upgraded in September 2019, the first port in financial, human, and infrastructure resources limiting its operational impact on the to automatically switch off during the Ecuador and Latin America to receive are allocated to ensure this function meets the local environment. MICT is currently day and whenever the equipment is not this certification. environmental KPIs and other performance TONS TONS TONS replacing its old lighting system at in use. 4,354 5,900 10,311 measures per site. the yard with new eco-efficient LED REFLEETING PROGRAM systems. This is expected to eliminate OPERATIONAL AND Solid waste The safe handling, storage, and disposal of light spills and glare while lowering ENVIRONMENTAL CERTIFICATIONS MICT (Philippines). Aiming to 8 major terminals 8 major terminals 24 terminals energy consumption by as much as 75 progressively optimize fuel waste is carried out by licensed contractors and percent. The new lighting system will CGSA’s Green Point Certification. For consumption of its cargo handling fleet, other certified service providers. ICTSI is highly also provide a safer traffic environment the third consecutive year, Contecon MICT purchased 44 new prime movers. cognizant of the role that its ports and terminals 4,046 TONS 5,617 TONS 9,736 TONS with improved lux-levels of 5-8 times. Guayaquil, the largest and most The major refleeting program features play in helping the maritime trade sector comprehensive terminal in Ecuador, newer, more fuel-efficient technologies: transition to increasingly greener logistics Others AGCT (Croatia). An effort to increase enhanced engine design and speed earned the “Green Point” Environmental systems and processes. 8 major terminals 8 major terminals 24 terminals energy efficiency has been included Certification issued by the Ecuadorian limiters that help reduce the need for in the process of increasing visibility Ministry of Environment. The audit, acceleration that normally requires at night at the terminal. Replacing the conducted by Ceres Ecuador, more fuel. ■ 308 TONS 283 TONS 575 TONS
38 39 ICTSI SUSTAINABILITY REPORT 2020 Environment
Water management Working together Across the monitored ports, water is 2020 predominantly being used to meet the daily Water for ecological waste hygiene and sanitation needs of employees and port operations in general. Our terminals obtain management water either from deep well facilities, local water utility companies, or the municipal water supply. Water consumption indicators Coastal cleanup. In Mexico, Such supplies are then utilized for personal use; Contecon Manzanillo took Average Total part in the annual commu- maintenance and repair of containers; cleaning nity coastal cleanup drive and washing of containers, equipment, and Total water consumption in all areas last February as part of its machines; vessel tank refilling; administrative 34 MEGALITERS 824 MEGALITERS commitment to the activities, and cafeteria operations. conservation of the city’s Average Total coastal areas. In Manila, Our terminals have systems for identifying NorthPort conducts a water-related impacts on their operations, in Total water consumption from all areas with water stress weekly coastal and MEGALITERS MEGALITERS compliance with KPIs set by local regulations, 3 66 community clean-up as part of efforts to reduce ISO standards, and internationally recognized maritime wastes at the best practices. SPICTL and MITL, along with the Manila Bay. In Croatia, rest of the terminals, conduct water sampling in Adriatic Gate Container Terminal certified laboratories for analysis of effluents, NorthPort lowers water usage, organized an eco-action of cleaning based on identified environmental parameters, the seabed every first Saturday in ups recycling with new onsite and with periodic reporting on monitoring results. June, in cooperation with the local treatment facility diving club. Likewise, CGSA has a matrix that identifies and assesses environmental aspects and impacts What it’s all about. One hundred percent of
Reusable lunch boxes for employees. on its water resources. This matrix is reviewed wastewater, thoroughly treated and ready As part of efforts to cut the amount of 9003, or the Ecological Solid Waste annually as part of the audits of the Integrated for reuse: this is a key benefit from plastic waste at the Manila flagship, Management Act of 2000, benefitting Management System. The terminals are NorthPort’s new Wastewater Treatment the ICTSI Foundation distributed more than 70,000 people living at the carrying out water balance reviews (including Facility with Reverse Osmosis, installed in 2020 to reusable lunch bags for all MICT Parola and Isla Puting Bato areas. usage monitoring) to further optimize the complement the existing Oil and Water separator at and Corporate employees. Each resource consumption. the port’s Equipment Wash Bay. ICTSI Foundation partners with DSRF in lunch bag comes with a microwave- Recycling supplies. In Mexico, Previously, NorthPort had to commission a third party safe reusable box made from Contecon Manzanillo launched the to haul and treat the oil-contaminated wastewater being treating ballast waters polypropylene, utensils, a water “Recycling Supplies” project last Most of our terminals are equipped with oil generated by the maintenance process of washing canister, and a non-woven insulated November, which aims to recycle and water separator systems and/or treatment mobile equipment and other service vehicles—a process Untreated ballast from the Mariners’ Polytechnic bag. Another objective of the project used papers from office documents, facilities for proper management of wastewater. which costs nearly PHP 25 million annually. water, when discharged Colleges Foundation of Canaman is to encourage ICTSI employees to books, school notebooks, catalogs, Efforts are made to ensure recycling or reuse As with other key aspects of port operations—in in a coastal area, can in Camarines Sur will design bring their own home-cooked meals. magazines, cardboard, and folders, of wastewater where possible. Septic tank NorthPort and in other ICTSI facilities—regular release invasive and the prototype, which, upon By doing so, they do not have to go among others. The mission is to assessments yielded insights on process enhancement harmful marine species completion, can easily be carried out and buy food elsewhere, and reduce the amount of recyclable disposal, meanwhile, is being done using (e.g., for increased efficiencies and resource savings). and coastal sediments on and off large cargo vessels thereby reducing their exposure to waste that is commonly sent to government accredited service providers. In this case, an onsite Wastewater Treatment Facility that could destroy a to decontaminate ballast water public places during the pandemic. the landfill and lessen the amount CGSA, for instance, can treat up to 260 cubic with Dissolved Air Floatation (DAF) with Reverse local ecosystem. For prior to release into the sea. The of trees being cut to generate meters of wastewater per day, capable of going Osmosis (RO) System would bring several benefits. this reason, the ICTSI prototype will be tested at the In China, new paper. In the Philippines, Solid waste management. up to 500 cubic meters as needed. ■ Foundation has Manila International Container 15 employees of Yantai International Subic Bay International Terminal Why it matters. Together, the DAF and RO Systems partnered with the Terminal by mid-2021. Container Terminals helped the local Corp. was recognized as one of result in treated water which, when tested, ranks Diliman Science Looking at the long-term community in cleaning up Nanhong the top 10 locators which turned “excellent” in terms of Total Dissolved Solids (a key Research Foundation application, the device can be Street, a famous snack street in over materials for recycling during water quality indicator) and is suitable for reuse in for the Ballast Water replicated and up-scaled to Yantai. Two garbage trucks were the 7th Recyclables Collection equipment washing. Treatment System Prototype help the Philippine Government then commissioned to bring these Event organized by the Subic Bay Design and Implementation comply with the International wastes to sanitary landfills. At the Metropolitan Authority. The waste Who benefits. With the new facility enabling recycling Project. Maritime Organization regulations Manila flagship, the ICTSI Foundation collection activity encourages of 100% of the treated wastewater, NorthPort now The project aims to address based on the Ballast Water sustained its clean-up efforts of stakeholders to help keep the has zero effluent discharge and is projected to the issue of ballast water Management Convention of MICT’s immediate communities freeport clean by turning over their even contribute to lowering the Group’s total water contamination by developing a 2004, which mandates all through the Parola Solid Waste recyclable materials to accredited consumption. Moreover, the port also benefits in the working prototype of a miniature signatory countries to establish Management Program. Now on its waste handlers for recovery and form of substantial cost savings, with the wash bay device for treating the water their own ballast water treatment seventh year, the program helps the upcycling. ■ wastewater now treated onsite and in-house. ■ that gets pumped out of ships' systems by 2028. ■ community comply with Republic Act ballast tanks. Marine engineers
40 41 ICTSI SUSTAINABILITY REPORT 2020 Environment
OVER VICT's eco-friendly 4,700 INDIVIDUAL CREATURES wash bays PROTECTED TO DATE. recognized as best eco ICTSI terminals making steady progress initiative on biodiversity, forestry programs Aside from the the right conditions for their Victoria International Container environmental growth and survival. Terminal’s eco-friendly wash bays initiatives being for portable equipment has been conducted by the MICTSL (Madagascar). recognized by The Asset ESG Foundation, there are Madagascar International Corporate Awards as the Best several efforts being Container Terminal has Initiative in Environmental done within the ICTSI embarked on a program to Responsibility for 2020. Group to promote preserve the country’s forest Designed for the safe washing of the biodiversity cover, in partnership with the terminal’s 11 automated container carriers, conservation work: regional authority in charge of the facility is fully enclosed to prevent the SPIA (Colombia). forests. potential overspray of cleaning materials Sociedad Puerto Industrial de that could contaminate the surrounding Aguadulce (SPIA)’s biodiversity CGT (Philippines). Cavite waters and vegetation. An onsite treatment program, whose objective Gateway Terminal successfully plant processes wastewater from the ICTSI joins fight to protect PH wildlife is to support the scientific conducted a tree planting facility, with about 97 percent of the treated research related to wild flora activity within the vicinity of the wastewater recycled and stored in a 10,000- While the pandemic An identified key biodiversity and fauna, has protected over terminal in Tanza last November. liter tank for use in the next wash. response requires an area, the Victoria-Anepa’an Range 4,700 individual creatures to Seedlings were planted by VICT’s wash bay facility supports unprecedented effort in forms the central cordillera of the date. SPIA likewise conducts CGT employees and its partner Australia’s high standards and strict resource allocation and main island of Palawan, covering training programs for its host firm Pacific Roadlink Logistics, regulations concerning the quality of water communications, it roughly 165,000 hectares and has a communities to increase along with volunteers from the used in commercial activities (such as remains equally crucial to highly significant level of biodiversity awareness on the conservation Department of Environment container washing and disposal of the wash address issues of illegal with 41 percent endemism in terms of natural areas and protection and Natural Resources, water), especially when it comes to ensuring wildlife trade and habitat loss/ of flora and fauna. About 31 percent of resources. To protect the PENRO-Cavite, Bay Bridge biosecurity. ■ encroachment, and help avert of the species are of high global coastline and encourage the Services, Inc., Philippine Navy, another zoonotic plague. conservation significance. survival of marine life, SPIA PNP-Tanza, Philippine Coast In February, ICTSI, through its The mountain range has seen embarked on a reforestation Guard, and host community social responsibility arm ICTSI high levels of illegal logging and program in places that present Barangay Capipisa. ■ Foundation, parlayed its experience wildlife poaching, particularly on in major sustainable development the accessible southern fringes programs to partner with Katala of the area facing the Sulu Sea Foundation, Inc. in implementing due to easy access. The third for the camera trapping study; a three-year, PHP 30 million most important population of the and signed a memorandum of wildlife research and conservation Philippine Cockatoo in the wild, agreement with the Palawan Council project within Palawan’s Victoria- a critically endangered species for Sustainable Development to Anepa’an Mountain Range. Aimed endemic to the area, is holding on seek Prior Informed Consent from at improving the conservation for its survival. indigenous people-stakeholders. status of a critical segment of the Also very vulnerable to habitat Several conservation education country’s threatened wildlife, the loss, poaching, and exploitation, the activities were likewise conducted joint program seeks to engage Philippine Pangolin and Palawan in 2020, including the Palawan local communities in conservation, Porcupine need to be assessed Porcupine e-learning activity, with focusing on key species including and monitored in order to effect full implementation eyed as soon as the critically endangered Philippine protection and conservation quarantine measures relax. Pangolin (manis culionensis), measures. Once completed, the project Philippine Cockatoo (cacatua Despite delays due to the aims to facilitate formal protection haematuropygia), and the imposition of community quarantine of priority areas and help guide vulnerable Palawan Porcupine measures in Palawan, Katala policy development for threatened (hystrix pumila). Also included are and the Foundation were able wildlife in Palawan and the 12 other ground dwelling birds and to complete the reconnaissance Philippines. ■ mammals. surveys for two identified sites
42 43 ICTSI SUSTAINABILITY REPORT 2020 02 GOVERNANCE
Context & Commitments We are committed to Sustainability as the foundation of our corporate governance, embodied in ICTSI's principle of Good Global Citizenship. As we progressively refine our Environmental, Social, and Governance (ESG) priorities, our Board-level ESG sub-committee continues to provide oversight of the Company’s sustainability strategy, policies, programs, and performance.
By continually enhancing governance, we seek to benefit our stakeholders: employees and shareholders, customers and suppliers, host nations, and communities. These interests are paramount and the pandemic underscored the crucial role of robust risk management.
We are increasingly leveraging digital transformation for sound, prudent governance, and strong risk management approaches. In our area of maritime trade, digital is a crucial enabler of enhanced governance, risk management, and resiliency.
44 45 ICTSI SUSTAINABILITY REPORT 2020 Governance
Staying the course with principled Groundwork governance and prudent management M As we ramped up our digital transformation Group-wide and for various stakeholders, we were well-prepared for remote work: with our digital workplace backed by information Since its establishment, ICTSI has continually built a culture of sound, prudent, security policies geared towards a robust and standardized security posture, and with and effective corporate governance as the bedrock of business sustainability. the launch of a new IT helpdesk. Major corporate activities—the Annual Stockholders Meeting and the Annual Corporate Governance Training, were held virtually. M We encouraged suppliers to participate in the fully digital procure-to-pay process We are no stranger to challenges, having weathered the global financial supported by the SAP ARIBA platform. crisis of 2009, for one. The year’s COVID-19 pandemic, however, impacted the global economy and our organization on a magnitude that tested us profoundly. In spite of the pandemic’s inevitability, the whole world was largely Gains unprepared for it. It did, however, validate our course: having sustainability as the foundational principle of our corporate governance, and embedding it at M Our newly-unveiled architecture-based website platform streamlines content the heart of our business decision-making. management and updates across multiple sites, creating a scalable digital platform that enables rapid deployment of innovations to platform members. M At the Manila flagship, our customers finally fully adopted MICT’s Advanced Customer As a vital function of effective corporate governance, our Board and Company Transaction System (ACTS), a 24/7 e-payment solution in place as early as 2016. had to map out our priorities and make sure to determine the right risks to M We signed on to connect our terminals to TradeLens, the blockchain platform respond to, and how to do that effectively: in areas such as the protection of co-developed by IBM and Maersk. Upon complete integration, we will be able to optimize work with regulatory authorities, and improve our terminals’ visibility to what is coming to human health and livelihood, greening the supply chain and making it more them and receive online updates from sea carriers. resilient and secure, managing maritime trade disruptions, and conserving the environment and biodiversity. In fact, prior to 2020, we had been increasingly refocusing our corporate purpose on Environmental, Social, and Governance Moving Forward (ESG) issues, and implementing programs and policies that address the same. This year, the implementation of a board-level ESG sub-committee to provide M Adhering to prudent management, we will continue to revisit and reinforce our oversight of the Company’s sustainability strategy, policies, programs and risk management to mitigate pandemic and other impacts. To these ends, we will performance further advanced our commitments. continue digital transformation as a key enabler in governance, risk management, and resiliency-building. M To push the development and delivery of advanced digital solutions across our Additionally, we applied systemic changes in role in the year in review, as underscored when portfolio, we signed a five-year strategic partnership agreement with Microsoft to the way we operate, addressing all impacts— the Company board actively—but virtually— establish an enterprise digital platform. including social, economic, and environmental— participated in major corporate activities like the M Cyber-attacks are rising alongside the major shift to virtual interactions in as we relied on our rigorous upholding of Annual Stockholders Meeting and the Annual shipping. We will continue reinforcing existing and adopting new robust cybersecurity good governance while adapting agilely to Corporate Governance Training. measures to protect our supply chains and services, further increasing our significant risks of logistical disruptions and threats to cyber-security posture. human safety. ICTSI also further reinforced its commitment to protect the welfare, safety, Corporate governance and human rights of the people who are at the heart of our business, empowering them by ICTSI continues to uphold principles and policies launching our Human Capital Statement that is embodied in our Manual on Corporate Gover- in fundamental support and commitment to the nance. First adopted in 2013 and revised and Principles of the United Nations Global Compact. submitted to the Philippine government through the Securities and Exchange Commission (SEC) In governance and in other key areas of our in 2017, the Manual serves as the framework life as a business, 2020 was a reminder of how of rules, systems and processes that governs digital transformation can enable us to move the performance of the Board of Directors and forward in our role in maritime trade connectivity Management and especially outlines their duties and to boost supply chain resiliency. As a matter and responsibilities to stockholders. Further sup- of fact, digital governance played a dominant porting this quest for growth, the Company also
46 47 ICTSI SUSTAINABILITY REPORT 2020 Governance
PICT garners consistent recognition
Pakistan’s gateway for
international trade, PICT continues to contribute positively to Pakistan’s Governance Structure economy and set the industry standard for sustainability. PICT was recognized for its diligence and commitment to Board of Directors success, continually holding the distinction of being one of the Top 25 Enrique K. Razon Jr. publicly listed companies in Pakistan for Chairman of the Board the fifth year now. ICTSI’s Karachi unit was also recognized during the 10th Members Annual Sustainable Shipping, Logistics & Jose C. Ibazeta Stephen A. Paradies Supply Chain Summit with the Green Andres Soriano III Supply Chain Award for its consistent Octavio Victor R. Espiritu* efforts to ensure sustainability across its Joseph R. Higdon* supply chain strategies and business Cesar A. Buenaventura* operations. * Independent Directors Additionally, PICT was also conferred the Corporate Excellence Award by Management Association of Pakistan in Board Committee Membership 2020-2021 March for its commercial diligence and responsible business conduct in terminal Environment, ■ Corporate Social and Board Risk Related Party service operations. Audit Governance Nomination Remuneration Governance Oversight Transaction Committee Committee Sub-Committee Sub-Committee Sub-Committee Committee Committee
Jose C. Ibazeta – – C – – – –
Stephen A. Paradies M – M M M C
Andres Soriano III – – – C – –
Octavio Victor R. Espiritu C M M M M M Independent Independent Independent Independent Independent Independent Embedding the value of Human Capital Joseph R. Higdon M C M M Independent Independent Independent Independent What it's all about. Since the establishment of ICTSI in What it commits to.
Cesar A. Buenaventura M C M M C 1987, it has become a leading operator, innovator and • Respecting human rights by condemning all forms of slavery, Independent Independent Independent Independent Independent pioneer in its field. Its portfolio extends across six forced or compulsory labor, child labor, human trafficking, and Notes: continents; its terminals are gateways to international exploitation. We are committed to upholding just and ethical labor The changes made in the Board Committees are disclosed in the ICTSI 20-IS, SEC 17-A, and Annual CG Report, which all reflect three (3) independent directors, and trade, foundations for local economic growth, and drivers practice and support the principles set out in the articles of the UN’s render the Company 94% compliant with the Securities and Exchange Commission’s Corporate Governance Recommendation on Board Committees. of community development. We now employ more than Universal Declaration of Human Rights and the International Labor 7,000 people and is deeply committed to fostering a Organization’s Core Labor Principles. supportive culture for these people to grow and map out • Valuing diversity and inclusion by celebrating and encouraging consistently publishes a Corporate Governance growth," the Company established in 2020 an meaningful careers, and to continually assessing and cultural and individual diversity in the workplace. Report each year, ever since its maiden report Environmental, Social and Governance (ESG) raising the bar for its performance as an employer. This • Promoting health and safety through a comprehensive set of year, the Company launched its Human Capital Statement internal safety standards that are are upheld at every container in 2013, which was a component of the ICTSI Sub-Committee under the Corporate Gover- in fundamental support and commitment to the Principles terminal and constantly improved. These include policies to prevent Annual Report launched on the Company’s 25th nance Committee. The ESG Sub-Committee is of the United Nations Global Compact. injuries through vigilance and regular employee training. year. Through the Company’s annual reporting, responsible for formulating policies and imple- • Providing fair remuneration that is competitive, relative to the stockholders are kept abreast of all requirements menting programs which aim to develop and Why it matters. The Company has always known that the domestic industry and local labor markets; operating in full compliance on Corporate Governance. ICTSI also provides operate efficient and sustainable port facilities privilege of being within our host economies demands only with all applicable laws on wages, work hours, overtime and benefits, responses to the ASEAN Corporate Governance and deliver the highest possible benefits to our the highest ethical standards and a commitment to protect and rewarding our people for their contribution to ICTSI’s success. Scorecard to benchmark against global standards Company's customers, partners, people, share- the welfare, safety, and human rights of the people who • Freedom of association and collective bargaining, respecting are at the heart of our business. employees’ right to their independence, to join or form legal on good corporate governance. holders, and to the communities we serve. associations of their own choosing in any of the countries in which we Who benefits. Adherence to these principles ensures that operate, and to bargain collectively. Additionally, the Company’s Board of Directors The ESG Sub-Committee is composed of Joseph our responsibilities to our people and communities are held in high • Supporting work-life balance by providing a flexible approach and has a Corporate Governance Committee com- R. Higdon (Independent Director) as Chairman, regard, as espousing these core values in everything we do is the being flexible employers wherever possible within the confines of the posed of three Independent Directors who meet with Stephen A. Paradies (Non-Executive Director) backbone of the ICTSI culture. The Human Capital Statement serves business, with the well-being of our staff being our highest priority. at least twice a year to oversee the implementa- and Cesar A. Buenaventura (Independent Direc- every single one of our valued people across the globe. • Fostering human potential and capability by providing training tion of the corporate governance framework. tor) as members, providing oversight of the Com- and development opportunities for our employees with the ultimate pany’s sustainability strategy, policies, programs objective of everyone reaching their potential. ■ In line with Our Purpose "to make ports around and performance, including climate change. the world a driver for positive and sustainable
48 49 ICTSI SUSTAINABILITY REPORT 2020 Governance
Approach to enterprise risk Awards and Recognition for Good Governance ICTSI holds first virtual ASM management ICTSI garnered multiple awards and recognition in 2020, further affirming the effectivity and impacts of our longstanding To ensure the safety and welfare of our stockholders and other
commitment to sustainability as the foundation of our corporate governance. ICTSI and its subsidiaries have geographically stakeholders, ICTSI successfully conducted the 2020 Annual diverse operations that expose them to various Stockholders' Meeting (ASM) last 18 June, the first to be held business risks that may materially impact the virtually in light of the current challenges resulting from the Conferring Body/Organization Award/Citation/Category/Indicators financial results of the Company. Recognizing COVID-19 pandemic. The meeting was held online by remote communication and voting was done in absentia. ■ 10th Annual Sustainable Shipping, Logistics & Supply Chain Summit PICT was awarded the Green Supply Chain Award for its consistent that risks (like competition, commercial, The platform brings together Pakistan’s largest corporate leaders and effort in ensuring sustainability across its supply chain, strategies and national and international trade bodies to deliver value supply chain business operations. economic, political and foreign exchange) sustainability and business resilience. cannot be eliminated, the ICTSI Group ensures Corporate Governance Asia Enrique K. Razon Jr., Chairman and President, as Asia’s Best CEO that existing and emerging risks are identified The most authoritative journal on corporate governance in Asia. (Investor Relations); Rafael D. Consing Jr., ICTSI Senior Vice President and Chief Financial Officer as Asia’s Best CFO (Investor Relations); and managed within acceptable risk tolerances. Arthur R. Tabuena, Treasury Director and Head of Investor Relations as Our Board, responsible for the development Best IR Professional (Philippines); and ICTSI as among the Best Investor Relations Companies in the Philippines and Asia’s Best CSR. of risk management processes and the implementation of risk reduction strategies, Employers’ Federation of Pakistan (EFP) PICT was recognized as having one of the best practices for workplace The only body of employers in Pakistan that is a member of the health and safety. is committed to directing an organization that International Organization of Employers (IOE) ensures risk management is a core capability, Financijska Agencija’s (FINA) 12th Zlatna Bilanca AGCT was named the best firm in the country’s transport and and the executive management of ICTSI fully (Golden Balance) Awards warehousing industry. The Golden Balance Awards is organized by leading Croatian financial supports the implementation of the Enterprise and electronic services company FINA to recognize outstanding Risk Management Policies and Procedures. companies based on financial performance criteria such as profitability, stability, liquidity, efficiency and activity. It is sponsored by the Croatian Government through the Ministries of Commerce and Finance. Environmental Impact Assessments Honduran National Commission for Port Protection (CNPP) OPC was issued a new Declaration of Compliance to the Port Facility In our greenfield developments, Environmental with validity until March 2025, thus maintaining OPC’s status as an Impact Assessments (EIA) are conducted international safe port. before projects commence as part of risk and those that are to be formulated. With a Investors in People (IiP) Awards SCIPSI's Eloisa Jane Onez was named as the Community Employee of London’s leading industry award recognizing excellence in people the Year. management. These include consultations with growing body of literature providing evidence management. local communities. For port projects involving of potential impacts to port operations brought SCIPSI was also shortlisted for The Learning and Development Award and The Employee Engagement Award. extensive redevelopment, EIA reviews or on by climate change, ICTSI looks to the
IR Magazine ICTSI was shortlisted for Excellence in Investor Relations in the updating may be indicated as needed. future by studying climate change adaptation The leading industry publication in the field of investor relations around Industrials sector. and mitigation strategies that we can tailor the world for the past three decades. Sustainability and climate change specifically to the circumstances of each of XIII Latin American Meeting of ESR (Empresa Socialmente Responsible CMSA was awarded the ESR 2020 recognition for its social Recognizing the important role we play in the our terminals. The Company continued to or Socially Responsible Companies) responsibility efforts that positively impact the environment, generate Hosted by the Mexican Center for Philanthropy (Centro Mexicano respect for people, promote ethical values, and encourage social development of nations, ICTSI acknowledges collaborate with its external stakeholders in Para La Filantropia or CEMEFI) and the Alliance for Corporate Social inclusion. that climate change is an important issue to 2020 in order to properly assess and evaluate Responsibility (AliaRSE) address. Several initiatives were implemented how sea level rise, increased temperature Mexican State of Colima CMSA was awarded with the State Recognition of Inclusive Company for its social commitment to human rights and dignity, highlighting the by the Management in 2020: change, extreme winds, and increased Company’s model work culture that provides equal opportunities to • The creation of a Board-level sub-committee, precipitation from extreme weather events will vulnerable groups in Manzanillo. under the Corporate Governance committee impact its major terminal operations based Pakistan’s 35th Corporate Excellence Awards PICT garnered its fifth consecutive Corporate Excellence Award for focused on ESG issues, risks, and concerns; on the Intergovernmental Panel on Climate Instituted by MAP in 1982 with the sole aim to recognize and honor its commercial diligence and responsible business conduct in terminal companies showing an outstanding performance and demonstrating service operations. • Programs, and performance, including Change (IPCC) scenarios. (More on this in the progress and enlightened management practices. climate change; Environment section of this report). Public Relations Society of the Philippines PRSP ICTSI was awarded a Silver Anvil for its 2018 Sustainability Report and • Phased enhancement of reporting processes The Philippines’ premiere organization for public relations professionals. the ICTSI Factbook. over critical sustainability issues to ensure The Asset • ICTSI was recognized as among the elite Asian companies that has future regular reporting, focusing preliminarily Code of Business Conduct Hong Kong-based financial magazine for Asia's decision makers. shown all-round excellence in environmental, social and corporate governance (ESG), earning the Platinum ESG citation. on legal and compliance, governance and • ICTSI’s Investor Relations team was also cited as one of the Best human resources, with other processes to be Guiding the way ICTSI’s valued employees Investor Relations teams in the Philippines. • The Company’s US$300 million senior perpetual securities improved in succeeding years. conduct business is the Company’s Code of and tender offer issuance in July was cited as the best liability Business Conduct, which serves as a statement management deal in the Philippines for 2020, saying the bond issuance and liability management exercise "achieved the company's The Company’s Sustainability Steering of our joint beliefs, values, and commitment. objectives of reducing capital cost, eliminating call redemption risk in Committee, composed of key management It provides a framework of what is expected 2021, and enhancing the strength of its balance sheet." • VICT was also awarded for having the “Best Initiative for personnel, continues the execution of their of every employee and business partner Environmental Responsibility” for its eco-friendly wash bays for role in sustainability strategy, policies and working with or on behalf of ICTSI. The Code mobile equipment. programs that are currently implemented is implemented and rolled out to all Directors,
50 51 ICTSI SUSTAINABILITY REPORT 2020 Governance
Senior Management, employees and all covered prior to their assumption of roles, with the 2019 2020 personnel, including contractors, trainees ICTSI Global Corporate Human Resources Anti-corruption and interns. Through this Code, all goals responsible for ensuring that the forms are and targets to ensure ethical conduct in the completed. Disciplinary action and in worst Company’s operations are set and base lined. cases, termination, await those responsible for The Code comprehensively covers Employee any violation or breach of the Policy. Alongside Policies & procedures training of employees CMSA holds Relations, Anti-Bribery Obligations, Conflict of this policy is the Anti-Bribery Policy and a successful Interest, Fair Business Practices and Antitrust, policy on “Anti-Tipping” to further reinforce Percentage of employees that the organization’s anti-corruption policies virtual audit Confidentiality of Information and Data Privacy those principles. and procedures have been communicated to within the review period
Contecon and Insider Information and Securities Trading, Admin - Rank and File Admin - Management Manzanillo has details of which are disclosed and published Anti-Corruption 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals successfully carried on the Company website. Each employee is Almost all of the terminals covered by this report out its internal audit expected to be familiar with the Code, which, have formal policy documents or guidelines 95% 48% 19% 65% 73% 33% covering ISO 9001 in certain terminals such as Madagascar detailing how Company employees must conduct and 14001 last June Operations - Rank and File Operations - Management via virtual review International Container Terminal Services themselves ethically in their operations. Most of schemes, taking Ltd, is even translated to Malagasy (the local these terminals follow or implement the ICTSI 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals full advantage of language) for better understanding. Group-wide policy, while some have internal the organization’s policies and practices that were approved by 95% 73% 33% 65% 76% 38% technological tools With continuously expanding global port their respective top management. Contecon and thus ensuring operations, ICTSI also makes sure to faithfully Manzanillo in Mexico, for example, has ethical the continuity of comply with all the applicable laws and and anti-corruption policies that have been Percentage of employees that have received training on anti-corruption activities safely. The with the review period audit has shown regulations promulgated by the governing implemented since February 2020. Most of an improvement of bodies in each country it operates in: port these terminals have point persons for reporting, Admin - Rank and File Admin - Management CMSA’s processes, authorities, customs and trade agencies, and ranging from security employees to immediate 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals the execution local government units. bosses, HRD Manager or Operations Manager, of services, the HSSE Officer, Department Heads, and in some 95% 48% 19% 65% 73% 33% attention of clients In 2020, the Company launched its Human cases, even the CEO. and the conditions Operations - Rank and File Operations - Management Capital Statement in fundamental support and with which their 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals activities are carried commitment to the Principles of the United These policies have been effectively applied out compared to the Nations Global Compact. Adherence to these to most cases that have arisen, and have 95% 73% 33% 65% 76% 38% previous year. principles ensures that its responsibilities to helped ensure that employees follow the set The audit team its people and communities are upheld, as guidelines or are correspondingly dealt with in successfully put espousing the core values of the Human Capital line with due process. In MICT, the evaluation into practice all Statement anchors the ICTSI culture. of the aforesaid policy is done through the joint presenting good conduct recognition letters to Across all levels of the organization, their theoretical efforts of the HRD Industrial Relations and the staff members. communication and training efforts pertaining knowledge, participating incumbent Labor Union, NMPI-NAFLU. The to anti-corruption policies and procedures are enthusiastically Conflict of Interest Policy policies are scrutinized thoroughly via grievance In NorthPort, the effectiveness of policies is being communicated. For the year in review and adapting to mechanisms and the holding of quarterly evaluated based on the number and frequency however, trainings primarily decreased due the new way of ICTSI strictly implements a Conflict of Interest Labor-Management Conferences called of violations by the employees per year. The to COVID-19 restrictions. ICTSI is working to working in the areas Policy, adopted anew in 2018, that serves as "Ugnayan sa Pantalan." These mechanisms Legal and Claims Department handles all increase these engagements not only to the of commercial, a guide for all employees and consultants and conferences enable dialogue between the administrative cases by issuing notices to members of ICTSI's Governance Body and maintenance, of ICTSI and its Group of Companies. The Management and its employees. Aside from this, explain, conducting administrative hearings employees, but also to business partners, infrastructure, operations, parts policy is in place to ensure that business a regular Labor Management Council is in place and issuing notices of resolution. Moreover, suppliers, and service providers as well. (Further warehouse and IT. is always conducted with fair business for discussions of operations-related issues in Contecon Guayaquil in Ecuador—which discussion of the overall training hours may be The audits were judgment and decision making, leaving no between Management and Union Officers. The follows a Code of Ethics—compliance is verified found in the Employees section of this report.) carried out in an room for interference of personal or financial fruits of this evaluation have been evident in the through employee evaluations ranging from orderly manner, interests. The Policy defines ways to disclose good rapport between the Management and the polygraph tests, home visits, legal background Issue and grievance mechanisms complying with a Conflict of Interest, and cites measures to Labor Union and in their level of cooperation checks, and follow-ups carried out by each ICTSI considers grievance mechanisms as the timelines and appropriately address those situations when in implementing the said policy among MICT immediate chief whenever there are possible essential in ensuring that the mandated policies objectives. ■ they arise. ICTSI requires all personnel and employees. Additionally, every five years, a breaches of the code. are adhered to, and more than half of its consultants to read, understand, and strictly Collective Bargaining Agreement is held to foster terminals worldwide have specific mechanisms comply with the Policy by filling out a Conflict good management-labor relations. In MGT, in place to encourage reporting of unlawful or of Interest Disclosure Form and an Undertaking there is an initiative to reward good behavior by
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improper conduct and inappropriate workplace Supply chain behavior. The terminals provide alternative pathways to avoid fear of intimidation, ranging Being a major player in the global supply chain, Suppliers from: 1) human resources management area, ICTSI is fully aware on how our purchasing 2) complaints box, 3) suggestion stations, 4) decisions can create deep and lasting impact on anonymous complaints mailbox, 5) company economic, social and environmental conditions. website, 6) confidential WhatsApp line, 7) Our Human Capital Statement, which is Suppliers: Environmental and Social Screening confidential direct line, 8) direct communication primarily anchored on the core principles of to CEO/HR Management and for some 9) a respecting human rights, and promoting health Environmental Impacts Social impacts grievance committee. In Pakistan International and safety—also translates to our deep-rooted Container Terminal (PICT), there is even a commitment towards Responsible sourcing— Number of suppliers (old and new) screened 699 725 whistle-blowing policy in place governed by ensuring that we proactively source and procure Number of suppliers identified as having the senior management, on which awareness products and services ethically and sustainably, significant actual and potential negative impacts 116 54 sessions have also been conducted. throughout each tier of the supply chain. Number of suppliers identified as having significant actual and potential negative environmental and social impacts with which improvements were 64 24 For MICT, effectiveness of the HRD Industrial As an organization, we have adopted new agreed upon as a result of assessment
Relations Team's good handling of the supply chain measures in 2018 that are aligned Number of suppliers identified as having grievance machinery is evidenced by the with GRI Standards, and starting in 2020, social significant actual and potential negative environmental and social impacts with which current status of the company's industrial auditing based on the supplier’s standards relationships were terminated as a result of 42 10 peace; they have secured certificates that of labor, health and safety, environment, assessment attest to such status such as the Certificate and business ethics. As part of our impact of No Pending Case, which is issued by the management, ICTSI is working to ensure that Department of Labor and Employment. sustainability objectives are prioritized, including but not limited to: screening of new suppliers using environmental and social criteria; Local Suppliers measurement of spending on local suppliers; Total procurement budget spent on local suppliers (in USD) ICTSI suppliers honored in 1st virtual ISQA and assessing each supplier’s environmental 8 major terminals 24 terminals and social impact. Further, the Company In line with COVID-19 restrictions in the Philippines, our ensures that suppliers are selected based on Global Procurement team honored the Company's top their ability to meet contract requirements, 262 342 suppliers during the first virtual holding of our annual including quality system and specific quality supplier awards. The 12th ICTSI Supplier Quality Awards MILLION USD MILLION USD assurance requirements. Additionally, ICTSI was held on 20 November. Percentage of procurement budget spent on local suppliers Anders Dømmestrup, MICT Executive Director and CEO, consciously aligns its supply chain practices thanked ICTSI’s supplier-partners for going the extra mile in supporting the local economy by sourcing 8 major terminals 24 terminals providing ICTSI's requirements, despite the logistics restrictions locally whenever possible. during the lockdown period: “The crisis is not yet over, but it has been so inspiring to see how cooperation and perseverance Governance and monitoring of Group-wide 63% 61% among ourselves move us forward. These values will be even more sourcing and procurement processes was important as we prepare for our important role in the full economic reinforced in 2020 with the establishment of recovery in the coming period.” ■ the Global Procurement Department—following the merging of our shared services company, Percentage of new suppliers screened ICTSI Asia Pacific Business Services, Inc. Percentage of new suppliers screened using environmental criteria Percentage of new suppliers screened using social criteria with MICT Procurement. The establishment of 8 major terminals 24 terminals 8 major terminals 24 terminals the department was aimed at supporting the strategic procurement for the Group’s top and critical spend—with the goal of harmonizing existing procurement policies present or in 24% 19% 35% 22% force within the Corporate level and in the 31 operational terminals, and standardizing the approach for supplier impact assessment within our operations.
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At the Corporate level and at the Manila In MICT, Departmental Objectives and Plans terminals incorporate this by prioritizing vendors flagship, ICTSI utilizes an e-Sourcing System are set to address Quality, Environmental that: 1) are accredited and have social programs, (in place since 2018) that allows suppliers to and Occupational Safety and Health areas 2) are transparent on any non-regulatory send quotes through the system instead of via of their processes. These are measured compliances, and 3) consider environmental e-mail, fax, hard copy, or phone call, ensuring quantitatively, and targets are monitored at impact of the price and product quality. As a more systematic process that promotes least semi-annually to ensure they will all be much as possible, purchasing from suppliers transparency and fairness among vendors. met by the end of the year. For missed targets, that comply with standards and regulations is a Procurement practices were further streamlined root cause analysis is done so that corrective huge determining factor. Global Procurement is with the full digitization of the Procure-to-Pay actions can be periodically identified, and likewise updating ICTSI’s vendor accreditation (eP2P) system adopted in September 2019, this then becomes the basis for updating the process to reinforce social auditing standards, Educating employees on discipline which aims for strategic sourcing. Enforcement targets set by the department. In addition to in line with the SMETA (Sedex Members’ Ethical in the workplace of the Company’s procurement policies is also annual objectives, additional projects that will Trade Audit) requirements. ensure sustainable partnership with vendors Training in Employee in processing administrative strengthened as these are streamlined and embedded within the buying process; and are launched. Ariba Network is also utilized to For MICT, vendors applying for accreditation Discipline is an cases, and in turn lessen the more efficient transactions with suppliers—from assure seamless transactions with suppliers, are required to submit information regarding important aspect of average turnover days. The team-building. It is a workshop also promoted a proposal submission, to awarding, and to from proposal submission to awarding and to their social programs and to declare any tool being employed better understanding on how invoice submission—are promoted. invoice submission. regulatory non-compliance. Social factors are to communicate efficiency in administrative also incorporated with the standard contract Company values, procedure affects our Majority of ICTSI’s terminals have policies, goals For both DIPSSCOR and HIPSI, the primary templates used by the department and while letting employees know Company's performance in and targets in place to ensure sustainability of goal is to ensure 100 percent of purchases supporting compliance documents are required that certain behaviors, such as both financial and operational the supply chain in their respective operations, are made from accredited suppliers excluding as contract annexes. SBITC meanwhile has a negligence or dishonesty, are not productivity. such as a Procurement Policy, Procedure and one-time transactions, to increase the number CSR committee that includes its Procurement being tolerated. Across ICTSI’s In SBITC and MCT, an Philippine terminals, several online training entitled “ER101: a Purchasing Policy; and a goal to increase of vendors by at least two percent based on team for all the CSR Procurement requirements trainings were conducted via Employee Discipline and the number of vendors and qualified suppliers the previous year, and for the result of the aligned with their budget. face-to-face or through online Procedure” was held virtually and ensuring on-time delivery. These were evaluation to be at least 76 percent based on delivery modes to create a last December 3 by their approved based on international standards or a the supplier's rating matrix. These are all made In MICTSL, choice of suppliers is based on healthier and safer workplace respective HR departments, widely-recognized initiative, either by the General mandatory; and semi-annual management a satisfactory quality-price ratio, a good which fosters employee in collaboration with the Manager, Department Head or CEO of the reviews are conducted. delivery time and offers that correspond to the productivity, as well as loyalty. It Global Corporate Legal Affairs terminal, with some reviews and revisions of these needs of the applicants, while ensuring that likewise serves to protect the Department. Like the ADP Company against lawsuits Workshop in MICT, the training policies done in 2020. While some terminals (BIPI, For MICTSI, the goals and targets include they respect the rules and commitments on involving non-compliance to the aims to educate employees on CGT, SPICTL, MITL, PICT, AGCT) currently have on-time delivery orders of spare parts and environmental, safety and security standards. norms of labor practice. the importance of employee no formal policy, there are informal processes in services with the right specifications that meet The clause on environmental, safety and At the Company’s flagship, discipline and the observance place that are being practiced. The effectiveness the user’s needs; and ensuring the availability of security compliance are mandatory in a the MICT HR Department of administrative due process of these policies is measured and evaluated critical items such as wirings, cables and other contract with a services provider. OPC has launched the Administrative Due in the handling of cases. The through Risk Assessments, Key Performance electronic parts that provide both qualitative a policy number COM-L-002 called Entry, Process (ADP) Workshop last training also served to refresh Indicators, and Internal and External Audits. and quantitative results. Evaluation and Revaluation of Suppliers, with October 19, allowing employees employees on existing policies to fully understand the concept (including those on anti- requirements of social responsibility for critical of due process under labor laws corruption), processes, and Some terminals like MICTSL are subject to several As for OPC, the goals include 10 percent suppliers—submitted to periodic evaluations – in order to increase efficiency procedures. ■ audits—Statutory Audit/HO Internal Audit/Group savings on total purchases, a purchase cycle such as hours and working conditions, equality Auditor and the annual Audit ISO—which reviews of 12 business days for local purchases and and non-discrimination, child labor and forced procedures and make recommendations for its 45 days for international purchases, 90 labor. Additionally, the Honduran Foundation for our local ports. Each ICTSI director and key improvement. Furthermore, a controller position percent monthly target delivery compliance, Corporate Social Responsibility (FUNDAHRSE) officer undergoes a minimum of four hours of was created and took effect at the onset of and a DPO of 30 days. OPC conducts monthly certification that OPC is proudly a member of trainings, programs, seminars, and roundtable 2020, with the role of periodically reviewing and measurements which become part of the requires them to have a Sustainable Purchasing discussions on Corporate Governance with testing all the defined procedures to assess the annual performance evaluation. There is also a Policy, Human Rights Policy and Occupational service providers or private/government sustainability of the process. follow-up through the Integrated Management Health and Safety Policy. institutions accredited by the SEC to ensure System that forces them to plan and carry out that the Company complies with relevant best Most terminals have allocated resources to improvement actions in situations that do not practices in good corporate governance and ensure sustainability in their supply chain, meet any of their KPIs. Communication and training adheres to the recommendations by the SEC and 11 terminals have existing grievance in the Code of Corporate Governance for mechanisms for this, managed by the HR For ICTSI, incorporating social responsibility ICTSI is always pursuing programs to strengthen Publicly-Listed Companies. Across all levels of Department, OIC Procurement, Customer factors in the general procurement process is its governance through training sessions, both the organization, including our suppliers and Service and Legal Department. also of great importance. More than half of our for top management and for employees in service providers, there are communication and
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Scaling up IT governance in 2020
In 2020, ICTSI undertook IT company’s philosophy of continuous training efforts pertaining to anti-corruption More than half of the Company’s terminals have advancements that help innovation. With the prior digital policies and procedures. policies, practices and commitments in place further position the company infrastructure, each terminal had to maintain environmental and socioeconomic at a technological advantage separate websites with varying online Committed to enhancing our Corporate compliance in their operations that are pursuant within the industry. experiences that led to a fragmented Governance thrusts, ICTSI, through its Global to local regulations. Most are derived in view of To improve efficiency and digital presence and an inability to Corporate Legal Affairs Department held the the relevant ISO standards and are approved better streamline ICTSI’s IT disseminate to or leverage data and sixth in-house Advanced Corporate Governance by the top management specifically by the processes, the company implemented information from all sites. Given Training last 4 December 2020, the first to be held terminal’s general manager or CEO. Yearly a new IT helpdesk on May 18 using each prior website was unique in the Jira platform to standardize the platform, implementation, hosting and virtually. With the pandemic adversely impacting evaluations such as Management Review, helpdesk experience across the entire design our online presence was not sites, enables rapid rollout of new sites, the economy and raising new challenges for Management Meetings and External Audit from ICTSI portfolio. This enables easy scalable. Onboarding a newly acquired and develops plug-and-play solutions companies all over the world, the training centered a third-party certification body are carried out sharing of tickets across business terminal was time-consuming and not which altogether created a scalable on Risk Management in the Age of COVID-19, to evaluate compliance with the standards. Most units for even greater collaboration. conducive to ICTSI’s growth strategy. digital platform for ICTSI. and what boards can do to meet their corporate of these terminals have point persons, such It also provides the ability for people The Company worked with Srijan, a Each terminal can still deliver governance responsibilities while navigating as a Pollution Control and Safety Officer or an to maintain a knowledge base that global engineering firm that builds content tailored to their customers uncharted and turbulent waters. ICTSI’s Board HSE Personnel/Head, reporting on compliance allows for solutions and knowledge to transformative digital paths to better and in local languages. Each terminal be made instantly available. The new futures for Fortune 500 enterprises to still maintains editorial control over of Directors, led by Chairman Enrique K. Razon matters in their operations. Resources, mostly solution also provides Global IT and nonprofits, to create a future-facing their own content. Thus, delivering Jr.; and Executive Officers, including Christian R. financial and human in nature, are allocated Terminal ITs the ability to model service solution: a multisite architecture on the best of both worlds, a scalable, Gonzalez, Executive Vice President and concurrent during Annual Budget Planning to ensure level agreements and track help desk Drupal, hosted on the AWS cloud secure and well-maintained platform Chief Risk Officer, Rafael D. Consing, Jr., Senior compliance goals and targets are achieved. performance, ensuring that the users designed to bring all terminal websites with appropriate local content and Vice President, Chief Financial Officer and Ten of these terminals have grievance are always served effectively. onto a single, central platform. The language. ■ Compliance Officer, Catherine R. Castro, Director, mechanisms, where complaints are received ICTSI likewise unveiled a new new platform streamlines content Head of Audit and Compliance, and Corporate through the Company's website, emails, and website platform in keeping with the management and updates across the Secretaries attended the training facilitated by complaint books, and are then directed to the Ricardo Nicanor Jacinto, former CEO of the responsible person/department for immediate Institute of Corporate Directors (ICD). action. Trainings are also conducted to keep • Oil and Dangerous Goods Spillage Handling ICTSI likewise ensures compliance with existing employees abreast on current developments on Procedure in conformity with RA 6969 or the labor laws and social legislation. In fact, the Across all levels of the organization, there environment-related topics and legislations. Toxic Substances, Hazardous and Nuclear Company provides employee and retirement are also communication and training efforts Waste Control Act of 1990 benefits which are generally more than what is that pertain to anti-corruption policies and In MICT, everyone in the organization is • The Disciplinary Code for HSE Violation required by existing laws, to help our employees procedures. Apart from the members of responsible for achieving their environmental Policy in coordination with Human and ensure that they are covered beyond ICTSI’s Governance Body, employees, and and socioeconomic targets through existing Resources Department their tenure. business partners across all ports/terminals, policies, such as: • Policy on Annual Physical Exam of all the Company’s anti-corruption policies and • IMS Policy in conformity with ISO Standards employees aimed at maintaining good health Lastly, ICTSI utilizes technology to help save the procedures have also been communicated to • MICT No Smoking Policy in conformity with and early detection and prevention of illness. environment by rolling out environment-friendly, suppliers and service providers. the RA No. 9211 or the Tobacco Regulation Act Medical assistance in the form of medical technologically advanced hybrid RTGs, with of 2003, RA No. 8749 or the Philippine Clean insurance and Group Hospitalization Plan is the aim of improving the carbon footprint in the Air Act of 1999, PPA AO No. 07-2015 on the being enjoyed not only by the employees but by terminal and attain better fuel economy. (Please Compliance Guidelines for the Implementation of the PPA their dependents as well. refer to the Environment section of this report). Orange Book on Safety, Health, Environmental In 2014, ICTSI first appointed a Compliance Management and Handling of Dangerous OPC has an affiliation with FUNDAHRSE, a Officer whose role is to coordinate with the SEC Goods in Ports and EO No. 26 Providing for the non-profit, apolitical, non-religious organization Digital transformation and other government regulatory agencies in Establishment of Smoke Free Environment in created to promote CSR in Honduras. terms of compliance requirements, monitoring, Public and Enclosed Places; May 16, 2017 They conduct an annual audit to evaluate a Beyond the intense efficiency-driven, and reporting. The Officer is also responsible • Used and Waste Oil Handling and Disposal member’s environmental and socio-economic just-in-time nature of global maritime trade, for monitoring any potential or actual violations Procedure in conformity with RA 6969 or the aspects, and confirm, through the renewal of there is the level of interdependence and of the ICTSI Code of Conduct, and reinforcing Toxic Substances, Hazardous and Nuclear membership, that OPC is in full compliance with complexity—and the array of threats and risks— full compliance with the Manual on Corporate Waste Control Act of 1990 and PD 1586 or the environmental and socio-economic obligations. that all together make digital incredibly crucial. Governance and the rules and regulations Environmental Impact Assessment System Law The last evaluation was done in June 2020 of regulatory agencies. The Officer also • Policy on Waste Management Procedure and is valid until September 18, 2021. They For us, digital is a key enabler of enhanced participates in corporate governance training in conformity with RA 6969 or the Toxic also have commitments due to the compliance governance for, among others, organizational and reports any matters of violation to the Board. Substances, Hazardous and Nuclear Waste of three environmental licenses issued by the transparency and operational efficiency gains; The current officer is Mr. Rafael D. Consing, Jr. Control Act of 1990 and RA 9003 or the environmental authority Miambiente, and to the a vital plank of risk management (in areas who has held the position since 2016. Ecological Solid Waste Management Act compliance of their ISO 14001:2015 certificate. such as health and safety and cyber security);
58 59 ICTSI SUSTAINABILITY REPORT 2020 Governance
Breakthrough key appointments for 2020 and, indispensable in boosting resiliency and purchasing, goods receipt, and payment are ICTSI welcomed new leaders to its corporate family as security, especially in the global supply chain. monitored—and, in turn, that our procurement
part of its Group-wide structural changes: processes remain resilient against cyberattacks. KMT (Cameroon). Being in a male-dominated We have been continually taking measures to industry, ICTSI continues to make sure that women manage the threat landscape. These measures Before the year closed, we took a significant
are empowered to perform and reach new heights include: vulnerability scanning across all step forward, as we signed on to connect our in their careers. Joining the growing number of networks and devices globally; driving global, terminals to TradeLens, the blockchain platform female Terminal Managers within the group—Carmela Rodriguez of LGICT and Gemma Gloria of MCT—is Kathy Magne, regional and local business unit vulnerability co-developed by IBM and Maersk. Upon a Cameroonian who was recruited to lead its new subsidiary Kribi assessments and remediation support; and complete integration, we will be able to optimize Multipurpose Terminal. Ms. Magne graduated from the Catholic global log collection across devices to an work with regulatory authorities, and improve Meets and Greets: University of Central Africa in Yaoundé with a MSTCF degree outsourced 24/7 Security Operations Center our terminals’ visibility to what is coming to working with governments and has previously worked for Maersk and Douala International and Security Incident and Event Management them and receive online updates from sea Terminal. service for real-time monitoring and instant and carriers. Beyond the projected efficiency gains, KMT (Cameroon). Herrera Gutierrez, Secretary
early threat detection and response. we are leveraging this technology for the level of Despite working in of Finance and Public Credit; transparency and cyber resiliency that it offers different time zones, Rafael Ojeda Duran, Secretary In our port concessions, we provide “National (given, for instance, TradeLens’ strict and highly Hans-Ole Madsen, of the Navy; and Salvador Critical Infrastructure” and bring in our secure permissions structure). SVP EMEA joined leaders from Gomez Meillon, Adminstracion own proactive and existing approach to the Port Autonome de Kribi and Portuaria Integral Director, cyber security. Internally, we continue to strengthen our the Cameroonian government who witnessed the terminal’s virtually during the signing of operations. The visit is part of organizational capabilities in the area of the concession contract to a continuing dialogue between Driving process efficiency and safety beyond cyber security. develop, operate and maintain CMSA and the Mexican our organizational operations, we continued the Kribi Multipurpose Terminal government to strengthen the to increase digitalization of interactions to In 2020, our IT training and education (KMT) in the South Region, synergy between the Company, enable safe, efficient and touchless operations, continued to provide employees with quarterly Cameroon. Mr. Madsen spoke of its partner communities and particularly for the health and safety of mandatory cyber security awareness trainings ICTSI’s goal to make the Port of stakeholders. customers and other port users, in light of the and internal phishing campaigns. Pre-pandemic, Kribi a driver for positive and sustainable growth, catalyzing BCT (Poland). Wojciech Philippines. At its Corporate offices in Manila, Sandy A. Alipio risks of disease transmission. we already had well in place a Global Incident assumed the role of Vice President, Global Financial Controller the development of the Kribi Szymulewicz, Baltic Container Response Plan, along with a Business and assuming leadership of the Group’s accounting and controls Logistic Corridor, encompassing Terminal Chief Executive teams, succeeding Jose Joel M. Sebastian, who retired after We equally addressed another stakeholder Continuity and Disaster Recovery plan are in Cameroon, Chad, Central Officer, visited Her Excellency 12 years of dedicated service. Arlyn McDonald, current Chief group: our customers. Of paramount place to protect the Company’s assets against African Republic, Republic of Leah M. Basinag-Ruiz, Financial Officer of the Manila International Container Terminal, importance is ensuring their safety, along any potential cyber threat or exposure. ■ Congo, Equatorial Guinea, and Ambassador Extraordinary and takes on a new role as ICTSI’s Assistant Global Controller. with that of our partners in government. At Gabon. Plenipotentiary of the Republic Meanwhile, Catherine R. Castro, Director of Audit and Compliance, our Manila flagship, our customers finally of the Philippines to Poland PICT (Pakistan). Mr. Madsen, in early February to discuss has been promoted to Head of Internal Audit, taking over from Mr. fully adopted MICT’s Advanced Customer Alipio in the role. during his visit to Pakistan, paid matters of mutual interest Transaction System (ACTS), a 24/7 e-payment courtesy calls to Rear Admiral and exchange opinions on YICTL (China). Yantai International Container Terminals (YICTL) solution in place as early as 2016. Jamil Akhtar, Karachi Port good economic and cultural appointed Bo Xu as Deputy General Manager and Xinxin Tao as Trust’s Chairman and Sindh collaboration between the two Finance Department Manager last September. ■ On the other hand, we encouraged suppliers Governor Imran Ismail together countries. to participate in the fully digital procure-to-pay with Khurram Aziz Khan, PICT process supported by the SAP ARIBA platform. Chief Executive Officer. Mr. BGT (Iraq). His Excellency Madsen reiterated the strong Generoso D.G. Calonge, The digital sourcing and procure-to-pay relations between PICT and its Charge d’Affaires of the platform, enhanced in 2019, was designed government regulator KPT, and Philippine Embassy in Baghdad precisely to ensure that stages of sourcing, the Sindh Province, its host visited Basra Gateway Terminal government. In both occasions, for an extensive tour of the Mr. Madsen shared ideas on facility and discussed the how to further strengthen the terminal’s history, current role of the port industry in developments, as well as uplifting Pakistan’s economy. its goals and vision for the future. Mr. Calonge noted CMSA (Mexico). Fortino the great work being done by Landeros, Contecon Manzanillo the Company in Umm Qasr, Chief Executive Officer considering BGT is one of the received a delegation from biggest private investments the Mexcian government from the Philippines. ■ last November, led by Arturo
60 61 ICTSI SUSTAINABILITY REPORT 2020 03 ECONOMY
Context & Commitments We are committed, as a major player in the global value chain, to facilitating the free flow of goods between nations and regions.
Wherever we operate, we actively help our host nations maximize their port infrastructure investments and boost trade as a driver of sustainable development.
In supporting local sectors and industries in our port zones and hinterlands, we help create direct and indirect employment opportunities in our host communities.
62 63 ICTSI SUSTAINABILITY REPORT 2020 Economy
ICTSI earns best Delivering value and essentials corporate Groundwork bond award ICTSI's in a lockdown M Helping our host nations prepare for the eventual recovery of the global and regional USD 300 economies, we are managing and financing the international logistics effort for The world was practically at a standstill in 2020 as the COVID-19 million Moderna vaccines. senior swept through the globe. To avert the further spread of the disease, perpetual securities M Despite the pandemic, our market share increased in selected markets, including that governments were forced to shut down all economic activities. and tender offer of one of our recent acquisitions, ICTSI Rio Brasil 1. issuance in July won as the best liability Multilateral institutions such as the Asian Development Bank and World management deal in Bank agreed that the global recession that ensued from COVID-19 was the Philippines for 2020 during the The Gains the worst since the two World Wars and the Great Depression. With Asset's 2020 Triple M the economic fallout, global GDP was forecasted to contract by over 4 A Country Awards. We successfully kept all terminals operating 24/7, collaborating with governments in 19 countries to manage lockdown-triggered maritime trade disruptions. percent in 2020. The Asset cited the M Even as we complied with COVID-19 protocols, we maintained port efficiency levels bond issuance and throughout the year. liability manage- M Our efforts in developing our newer concessions continue to bear fruit, having Group-wide, we emphasized the four key focus areas of Company ment exercise to modernized our PNG ports into high-performing trade gateways, and commencing our have "achieved operations for the year: protecting ICTSI employees; providing excellent the company's commercial operations in Cameroon. services to customers; caring for host communities; and ensuring ICTSI objectives of continues to be financially strong. reducing capital cost, eliminating call redemption risk in Moving Forward 2021, and enhancing the strength of its M We continue to support our partner governments with the expansion of key ports, balance sheet."
including: MICT in Manila, Philippines; CMSA in Manzanillo, Mexico; CGSA in Guayaquil, logistics disruption and avert a port shutdown Trade in a time of “twin shock” “ICTSI’s overall Ecuador; BGT in Umm Qasr, Iraq; and, IDRC/MGT in Matadi, DR Congo. in the lockdown. Through our cooperation and financing and M In the Philippines, once vaccine supplies have been secured, we will support the Despite the grim economic environment—what coordination with government agencies and liability management building of a state-of-the-art inoculation center: for our employees, their dependents, analysts have termed a rare “twin shock” that hit supply chain stakeholders, our flagship port exercise is one of and our local and national government partners. both supply and demand—we stayed true to our in Manila was back to more acceptable yard three levers that M We have refinanced and extended the maturity of our liabilities, further strengthening commitment to drive global trade by keeping utilization levels in less than 24 days. This was we focused on in our financial position for future expansion. our ports operating at maximum efficiency. particularly crucial as the port is the Philippines’ response to the ongoing global premier international hub for imports—including pandemic, the Across continents, we collaborated effectively mission critical medical supplies such as PPE other two being with our partners in government and other and medicines. We worked to successfully the tactical delay in institutions to push past maritime logistics discharge thousands of cargoes that helped capital expenditures disruptions, especially those triggered by millions of Filipinos survive through and fight a and sustainable lockdowns. We kept not just a few but all 31 public health crisis. cost reduction. This of our currently-operational terminals working exercise achieved our objectives of 24/7, working nonstop to quickly and safely Our strategies in a pandemic year reflect our reducing capital deliver basic goods, food, medicine and support for the growth and development of cost, eliminating call supplies, all the essentials needed by societies global trade. We concretized our hope for redemption risk in and economies to heal and recover. And a speedy, inclusive, and sustainable global 2021, and further we strove to do these while investing in and recovery through the extraordinary efforts enhancing the ensuring the health and safety of all personnel made by everyone within the organization, strength of ICTSI’s and port stakeholders. within our networks of partners, and other port balance sheet," Rafael D. Consing, stakeholders. Jr., ICTSI Senior Vice In the Philippines, ICTSI management acted President and Chief swiftly and decisively to ease the maritime Financial Officer, said. ■
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Agility and tenacity The last quarter of the year saw the Company make good on its commitments to be a The uncertainty of the times and the health steadfast partner in growing and building global Business performance risk faced by humankind has had a significant trade not only on a pandemic year but the impact on our operations in 2020. Since the recovery after. in container throughput first quarter of 2020, our revenues, EBITDA, and net income have suffered under the weight In November, we signed to connect our 31 2019 2020 of the pandemic. operating terminals to blockchain platform TradeLens to enable real-time tracking of Nonetheless, while the magnitude of the containers and end-to-end visibility. In doing challenge and uncertainty remained huge for so we are joining the global community of most businesses worldwide, we believe we were TradeLens users, including more than 175 unique well-positioned to navigate these obstacles organizations as of December 2019. TradeLens 10.18 10.19 because of the strategies we employed publishes over two million events per day. MILLION TEUs MILLION TEUs ICTSI partners with earlier in the year.
DOF, BTr in jumpstarting Our agility, financial prudence, enhanced Partnering for sustainable liquidity, and diverse portfolio enabled us to and inclusive growth PH economy absorb the negative impact of this crisis. Our multi-regional operations—32 ICTSI terminals Honoring our commitments to inclusive (in million USD) ICTSI underscored quarterly raffle draws, Economic performance located in Asia Pacific, the Americas, and and sustainable growth, we continue the importance of including the top grand prize public-private sector of PHP 6 million to be given at the EMEA regions—helped us become more to collaborate with our partners in key Direct economic collaboration in the fourth quarter of 2021. resilient and agile in these difficult times. infrastructure developments. value generated 1,510.8 1,536.0 reinvigorating the country’s “ICTSI’s business relies pandemic-strained economy on hardworking Filipinos to Aside from implementing cost controls, we These collaborations have resulted in billions as it pledged support to the drive trade and containers also ramped up our digital transformation worth of investment made by ICTSI. This Economic value Premyo Bonds 2 of the across the globe. Through Group-wide, expanding and accelerating includes the completion of MICT’s Berth 7 distributed 1,490.9 1,444.7 Department of Finance and the Premyo Bonds 2 of the the transition to digital processes to limit expansion, which effectively raised the MICT’s the Bureau of the Treasury. Department of Finance and Operating costs 429.1 401.9 As the government the Bureau of the Treasury, face-to-face interactions. These high levels of annual capacity to over 3.3 million TEUs. This customer service—increasingly enabled and also added the capacity for the terminal of an diverts resources to fight we're extremely proud to be Employee wages the coronavirus pandemic, part of something that can boosted by digitalization—along with our cost estimated 200,000 TEUs for laden containers and benefits 197.1 221.5 Premyo Bonds 2 is part of allow them and many working- preservation measures, improvements in global and 150,000 TEUs for empties. Payment to providers the government’s savings class Filipinos to jumpstart trade, and a diversified portfolio, helped us of capital 378.8 322.7 mobilization program their investment journey. mitigate the adverse effects of the pandemic. Another notable example of the benefits designed to make government We're also extremely proud Payment to of inclusive growth: ICTSI South Pacific’s securities available to retail to join the government in this governments 476.1 488.1 To boost our liquidity and strengthen our agreement with the Ahi and Labu tribes investors. Proceeds from public-private partnership Community the Premyo Bonds 2 will be towards battling COVID-19 financial position in the coming years, we enabled these landowner groups to acquire investments 9.8 10.4 used to fund the country’s and driving our recovery refinanced and extended the maturity of a 15 percent stake (per group) in SPICTL. response to COVID-19, towards a better future,” our liabilities. This includes the successful The signing of the agreements completed the as well as boost the Philippine Christian R. Gonzalez, ICTSI issuance of a USD 400 million fixed rate senior transfer of 30 percent of SPICTL to the local Economic value 19.9 91.3 economy. Executive Vice President unsecured notes with a 10-year maturity. We communities in compliance with the Terminal retained ICTSI has pledged PHP stressed during the virtual also successfully issued a new USD 300 million Operating Agreement. This is a landmark 10 million to support the launch last November 11. ■ senior perpetual capital securities that are arrangement whereby these landowner callable in May 2026 and concluded the Tender groups are reaping economic benefits from Offer relating to Senior Guaranteed Perpetual shareholdings in the ports. Securities of Royal Capital B.V. With enhanced liquidity, we are in a more solid position to We also honored our ongoing commitments possibly finance growth opportunities—whether to our partner communities, including those these be portfolio expansion through new who are among the most vulnerable to the strategic acquisitions,or via further development economic and social impacts of disasters and of of existing port assets. COVID-19. Thus, we supported relief operations such as for the eruption of Taal Volcano in the
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Philippines, and provided health and education Connectivity contributions infrastructure and resources to assist our LGU partners grappling with the public health Bolstering maritime connectivity has been the emergency. (Our Society section provides driving force behind our efforts to help our host details of such efforts by our terminals.) nations manage ports efficiently. Strengthening and streamlining existing connections, and expanding our maritime linkages, serve to Fiscal prudence, future growth enhance trade connectivity: between bilateral trading partners, among intra-regional players, Despite the grim economic outlook and and even at the inter-regional level. uncertainty, we continued our operations and implemented projects that would increase the In 2020, our efforts were also designed to help efficiency of our ports globally. revive the economy, and assist our terminals’ respective hinterlands towards gradual recovery. Judicious spending and keeping costs low in a pandemic year also helped us make In the Asia-Pacific region, such capability and 2020 less dismal. Notable among our efforts connectivity-building initiatives ranged from was the group-wide cost reduction and our work in the Philippine flagship’s new Berth optimization measures. 7 investment, to our tendered offer to develop the Iloilo ports for enhanced linkages in the Motukea International Terminal, Papua New Guinea The saved amount was channeled toward port Philippines’ Visayas region, and, in Pakistan, expansion, specifically for ports such as the PICT’s inauguration of the Goods in Transport MICT in the Philippines, CMSA in Mexico, CGSA to Afghanistan (GITA) service. in Ecuador, BGT in Iraq, and MGT in DR Congo. The new berth at our flagship in the Philippines’ ICTSI transforms PNG ports into capital bodes well for the projected trade Economic contributions recovery and subsequent growth, bumping high-performing trade gateways MICT’s annual capacity to over 3.3 million For the year in review, ICTSI posted a net TEUs. The new berth supports operations at Achieving economic growth achieved results over the last three improved, while electronic data and development would not be years. The government has planned for exchange and vessel productivity Income attributable to equity holders increase the Philippines’ premier gateway to regional and possible without well-managed continued growth and development in the reports now only take two hours, down of 1 percent to USD 101.8 million over its 2019 international export markets. and efficient ports. international trade arena and PNG Ports from the previous average of 12 hours. performance. On the other hand, consolidated This has been the is pleased to have entered a productive But ICTSI is not done transforming gross revenues from port operations increased In the Philippines’ Visayas region, we are poised overarching goal of ICTSI since partnership with ICTSI,” said Fego Kiniafa, the two ports into high-performing by 2 percent to USD 1,505.5 million for the year to invest in the Panay Island markets through it embarked on transforming PNG Ports Managing Director. gateways. ended December 31, 2020 from USD 1,481.4 the Iloilo City and Dumangas ports, which can the PNG ports of Lae and Motukea three In 2017, the PNG Ports Corporation As it looks forward to the next million for the same period in 2019. The revenue serve the whole central Philippines. years ago. Limited granted ICTSI with a 25-year 20 years of its concession, ICTSI is South Pacific International Container concession to manage and operate the focused on driving both ports to deliver increase can be attributed mainly due to the Terminal (SPITCL) and Motukea SPICTL and MITL. even better service not only to the port contribution of ICTSI Rio, higher revenues from The Philippine Ports Authority has already International Terminal (MITL) are the Since then, ICTSI was able to cut users but also the PNG economy it ancillary services, tariff adjustments and new accepted the legal, financial and technical only facilities in Papua New Guinea that ship waiting time to an average of an serves. services at certain terminals and favorable merits of our proposal in 2020. Once this can handle international containers. hour from the 16-hour average in 2015. SPICTL and MITL continue to deliver translation impact mainly from PHP-based project is approved, we will be investing more Both terminals are in a strategic Cargo loading and offloading, which strong results and were among the revenues in the Philippine terminals than USD 250 million to develop the Iloilo ports, location which PNG can use to benefit used to take two days, now only takes more notable performers in the ICTSI thus contributing to the government’s mission from increased trade in the Southeast less than a day. Group’s Asia Pacific operations in 2020. Asia and the South Pacific regions. The current average vessel ICTSI’s success in PNG comes The volume remained flat despite the impact of developing investment hubs outside of Metro Within PNG, ICTSI's PNG terminals are turnaround time has been improved from its three decades of experience in of COVID-19 pandemic on global trade and Manila and Metro Cebu. also proximate to trade and commerce— to 18 hours compared to the previous port development, management, and lockdown restrictions.. only a few kilometers away from Port average of 38 hours, while truck operation, as well as its ability to establish Meanwhile, PICT’s increasingly significant role Moresby and Lae's central business turnaround time has been cut by half to mutually sustainable partnerships with in cross-border trade facilitation, and Karachi’s districts. 25 minutes from 50 minutes. local stakeholder communities. ■ economic importance as a gateway port, were “The country’s decision to modernize Berth productivity and document both underscored when PICT inaugurated the our two international terminals has processing time have also vastly first freight train service, GITA, from Pakistan
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to Afghanistan. Driven towards the vision PICT launches 1st of increasingly efficient connectivity, PICT Pakistan-Afghanistan joined efforts to strengthen local and regional rail freight service logistics infrastructure networks: the pioneering rail freight service offers reduced costs and With an eye towards increasingly transit times, while increasing logistics security efficient connectivity, PICT joined ICTSI and transparency. efforts to strengthen local and regional Rio night logistics infrastructure networks such navigation In the Americas, at our Rio Brasil concession— as the Goods in Transit to Afghanistan one of our two newest acquisitions—we set (GITA) service. What it’s the stage for greater capabilities to serve the The GITA service is considered the all about. first rail freight service that exclusively facilitates surrounding expanse of import-export hubs. ICTSI Rio the transport of transit cargo from Pakistan to Brasil has With its new night navigation and operations, Afghanistan. It was recently inaugurated by PICT shifted to a 24/7 Rio Brasil has opened the door for larger ship and state-owned Pakistan Railways. operation of the calls and paves the way for increased volumes “The GITA service is a relatively cheaper, Cotunduba Canal, in the port strategically located in Brazil’s swifter, and more secure transport cargo the primary largest economic region. solution. With the launch of this first cargo train waterway access to service to Afghanistan at PICT, we look to further the Port of Rio de strengthen our bilateral relations with trade In Europe, our BCT terminal in Poland joined Janeiro. Night-time bodies and our esteemed partner-clientele,” said maneuvers had the EU-backed “Enhancing Coordination in Khurram Aziz Khan, PICT Chief Executive Officer. been previously multimodal freight transport in Central Europe” The GITA is an end-to-end logistics solution allowed for vessels (COMODALCE) project. The new COMODALCE that is expected to bring more business with drafts up to initiative is the latest in a series of measures into Pakistan because of transparent trade 12.6 meters through implemented by BCT that have combined to lift operations. the Barra intermodal rail traffic to account for 30 percent The use of trains to transport cargo will Grande water. also promote the seamless flow of traffic in of BCT’s annual container throughput. major roads and highways, benefiting the local Why it matters. businesses as well as the commuting public. This will optimize BCT’S market reach via rail includes all major Through the new rail freight service and its vessel entry and destinations in Poland and extends along partnership with Pakistan Railways, PICT aims to exit windows and the increasingly important trans-European build stronger commercial ties with Pakistani and Manila International Container Terminal, Philippines reduce waiting time Baltic-Adriatic Corridor (Corridor VI). This Afghan traders. by up to 50 percent, runs from Gdynia via southern Poland (Upper Launched in February 2020, the service as it allows larger highlights PICT’s increasingly significant role Silesia), Vienna and Bratislava and the Eastern vessels with up to in cross-border trade facilitation, and Karachi’s 14.6-meter drafts to Alpine region right through to Northern Italy, economic importance as a gateway port. ■ maneuver 24/7. serving diverse industrialized centers en route. ICTSI Manila completes
Who benefits. In our Africa operations, KMT, our newest berth expansion The terminal commercially-operational terminal in Cameroon, is strategically What it’s all about. ICTSI has as the Philippine economy gears up for we unveiled the new Logstar®Terminal located in Brazil’s successfully completed the an economic reboot following the 2020 Operating System (TOS), the cloud-based largest economic berth expansion for the MICT. trade flow disruptions. This will also region. Serving system that will integrate all aspects of vessel, The expansion allows MICT enable ICTSI to efficiently carry out its the surrounding gate, yard, and warehouse operations, along to raise its annual capacity to over 3.3 mission as frontliners and move critical expanse of import- with billing and reporting systems. million TEUs. This undertaking will also goods to fight the contagion. export hubs, the add capacity to the terminal: an terminal, with its 3.3 KMT is well-positioned as a growth hub in the estimated 200,000 TEUs for laden Who benefits. As the nation’s largest, new night navigation MILLION TEUs INCREASED Gulf of Guinea, serving not only Cameroon, containers and 150,000 TEUs for busiest, and most advanced port, MICT and operations, empties. is the Philippines’ premier gateway but also Chad, the Central African Republic, ANNUAL CAPACITY enables larger ship to regional and international export calls and paves the Equatorial Guinea, Gabon, and Congo. ■ Why it matters. The project will enable markets. ■ way for increased the country to handle additional volume port volumes. ■
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CGSA invests anew to COVID-19 related efforts develop Guayaquil Port BICT aids Georgia’s What it’s all about. CGSA plans pandemic response; to increase its investment to USD 30 million in the Guayaquil KMT starts commercial OPC works to keep Port to improve its efficiency. Honduran supply chain It has already invested USD operations moving 18 million to enable the port to handle neopanamax What it’s all about. KMT vessels—making the Guayaquil port the What it’s all about. BICT extended a has started its commercial first in the country to handle this class of donation of more than USD45,000 to operations and has containerships. the #StopCov Fund to support implemented the Logstar®- Georgia’s government in COVID-19 Terminal Operating System Why it matters. The decision to increase efforts. For its part, OPC implemented (TOS). KMT was granted a investments in the port will help enable mandatory temperature screenings in all 25-year concession and promote Ecuador’s foreign trade. pedestrian, vehicle, and dock access points contract that will last until 2045. The Ecuador is the world’s largest banana across the terminal. new TOS is a cloud-based system exporter, earning USD 2.6 billion a year. that will integrate all aspects of The additional investment will also help Why it matters. The public health crisis has vessel, gate, yard, and warehouse of the most promising economic sustain port operations until 2047. posed the greatest challenge for economies in operations, along with billing and regions in the world. 2020, including the global logistics sector. The reporting systems. Who benefits. The efforts of the CGSA help extended by the BICT will help Georgia’s Who benefits. Located in the center will benefit supply chain stakeholders, fight against the pandemic while stricter Why it matters. KMT’s commercial of the Gulf of Guinea, the port particularly those engaged in Ecuador’s protocols in Honduras help prevent the spread operations will open the gateway serves Cameroon, Chad, Central banana trade. This will also include of the virus in a major gateway in the Americas. to Central Africa. With the TOS and African Republic, Equatorial Guinea, banana growers and those in the business other new state-of-the-art facilities, Gabon, and Congo. An efficient of processing these products. Further, Who benefits. Efforts to respond to the threat of KMT can improve the efficiency of and state-of-the-art port will help those engaged in the petroleum business COVID-19 will directly help the Georgian people the port and better serve its clients. boost economic growth in these also stand to benefit since the top export and the communities BICT serves, while the It will also facilitate trade into one countries. ■ strict health protocols implemented in Honduras of Ecuador is petroleum. ■ will safeguard the health of OPC partners, employees, and other users of the terminal. ■
TecPlata handles imports for logistics hubs
MCT reaches 2.5 million TEUs What it’s all about. TecPlata has received shipments bound for the Buenos Aires La Plata Free Zone What it’s all about. In Mindanao, Philippines, MCT (BAZFLP). The shipment, which came from Brazil, marked a milestone by reaching a throughput of 2.5 included a seismograph bound for the Vaca Muerta million TEUs. The record number was achieved unconventional oil and gas field in Argentina’s Neuquen during the loading operations for Evergreen’s M/V Province. The equipment will be used by Wellfield Industry Ltd. Leopard in October 2020. Why it matters. The port is located on the south bank of the Why it matters. MCT is envisioned to become a Rio de la Plata, near the city of La Plata, the capital of Buenos transshipment hub that links Northern Mindanao to Visayas Aires province. The province has a high concentration of and the rest of the country, and ultimately become the first population and industrial activities. It is estimated that 90 port of call in Mindanao for international vessels. percent of the free zone trade in Argentina passes through BAZFLP. Who benefits. ICTSI aims to help drive economic growth in the countryside, with the Misamis Oriental Special Economic Who benefits. Wellfield Industry Ltda is a Productive Zone Zone, which is poised to become a prime investment hub in user, and was one of the first companies established in the region. ■ BAZFLP. As more shipments come in, around 100 direct and 3,400 indirect users of the BAZFLP also stand to benefit. ■
72 73 ICTSI SUSTAINABILITY REPORT 2020 04 E M PLOYEES Context & Commitments We are committed to helping drive sustainable development in nations, delivering economic benefits through trade facilitation, and via direct and indirect employment generation.
In our multicultural operations, we provide gainful employment, especially for local hires. We uphold labor rights, and, throughout the pandemic, have adopted multiple schemes to safeguard workers’ welfare.
We launched the ICTSI Human Capital Statement in fundamental support for the UNGC Principles, and as a compass for our existing and future acquisitions: from how we value just and ethical labor practices, to work-life balance.
With our high regard for human life, we invest heavily in upholding Health, Safety, Security, and Environmental concerns and in continuing professional development, for which we provide various Learning and Development opportunities.
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Rising to the challenge: Groundwork promoting employee welfare M Of the 24 terminals that are covered in this SR (including 16 terminals that were included in the reporting exercise for the first time in 2020) the majority already have during a pandemic policies and resources to uphold priorities such as local hiring, labor relations, and health and safety. Even as we operate container terminals and port complexes across M For the more recently-acquired concessions which are also being covered for the a range of developing and mature economies—with vast underlying first time in our SR, ongoing developments in infrastructure and capabilities were sociocultural, economic, and political diversity—we at ICTSI have a solidly complemented by developments in employee welfare. M In PNG, we became the first port operator to sign an industrial agreement with the anchored stand on ensuring employee rights and welfare. PNG Maritime Union and Employees Federation. In Cameroon, KMT started commercial operations after successful training of employees, especially in operating the all-new We maintain that uncompromising position across various strata of handling equipment. In Rio, ICTSI Rio Brazil workers were equipped to handle the shift standards, beginning with the basic rights of workers (as captured in our to 24/7 operation of the Cotunduba Canal, the primary waterway access to the Port of ICTSI Human Capital Statement, in fundamental support of commitment to Rio de Janeiro. the UNGC Principles), and including jurisdiction-specific laws and policies. Beyond that, we have Company-initiated standards and benchmarks for upholding and safeguarding employee rights, welfare, and health and Gains safety: all reflecting ICTSI’s organizational culture and values. Moreover, M For 2020 and beyond, guided by COVID-19 protocols set by relevant authorities, we we envision and support our terminals’ voluntary adoption of internationally consolidated our reinforced policies in the Practices for a Safe Workplace manual. recognized standards such as those embodied in the ISO series of M Across terminals, we rolled out wide-ranging health, wellness, and COVID-19 certifications. campaigns: information/education drives, employee testing and ready care facilities for those testing positive, and other resource support vitamin supplementation by MICT. M We adopted schemes to ensure continuity of operations (especially handling of In 2020, an entirely new set of standards, policies, and measures was mission-critical supplies) and health and safety of employees and port users. These added to all the above, most crucially in the area of health and safety. included work-from-home, flexi-scheduling, and major digitalization initiatives (e.g., These were the general or global, sector-specific, and local versions online transactions). of COVID-19 regulations and protocols: to protect workers and other port users during onsite transactions; to prevent contagion in work environments (i.e., disinfection of surfaces); and, just as important, to Moving Forward safeguard workers’ rights and welfare (including overall mental health and M As part of the private sector initiative to help the Philippine government wellness) all throughout the pandemic. secure COVID-19 vaccine doses, ICTSI is well-positioned to ensure vaccination of our employees—as logistics frontliners—even as we will donate doses to the Employment and benefits understood as referring to one, a number, or PPA and the BOC. all of the 24 terminals reviewed for this year's M Our launch of the ICTSI Human Capital Statement, in fundamental support of Hiring and employment edition of the ICTSI SR.) commitment to the UNGC Principles, serves as an explicit compass for all our existing Our work as a port developer, manager, and and future acquisitions: from how we value just and ethical labor practices to our operator allows us to contribute to sustainable From our first and flagship terminal, the support for work-life balance. development three ways: first, by delivering Philippines’ MICT, to our 2020 acquisition in M The ICTSI Practices for a Safe Workplace manual will be regularly updated to reflect economic benefits through trade facilitation; Cameroon, KMT, our Company has maintained current Company best practices and government issuances, especially covering second, by indirectly supporting jobs growth the longstanding policy of prioritizing full-time return-to-work/new normal guidelines, to optimize our capacity to mitigate the as we service our client-sectors (especially employment, and work to minimize scenarios pandemic's impacts. in import-export); and third, through direct where we would need to outsource labor. employment in our terminals. (For this When sourcing new hires for our terminals, our discussion on employment and benefits, as well Company considers permanent or long-term as in the other topics included in this Employees formal employment from each terminal’s local section, unless otherwise stated, the data labor pool. Recruitment policies are approved and examples presented should primarily be by either the HR Department or the CEO.
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ICTSI has a total of 8,563 permanent employees from nearby communities, in line with our social * 2019 2020 (excluding those from its affiliates) as of development thrusts. Employment overview December 31, 2020, slightly lower from the 8,996 employee headcount by the end of 2019. Mechanisms to evaluate the effectiveness The decrease was as a result of group-wide cost of policy include outcomes of management * * optimization measures undertaken to mitigate meetings, cross-functional feedback, Total number (rate of) new hires per age group Total number (rate of) turnover per age group the negative impact of the COVID-19 pandemic. and performance evaluations. Necessary Under 30 years old Under 30 years old In terms of hiring, ICTSI generally does not hire amendments are then made accordingly. 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals contractual employees, as it believes that it (4%) (4%) (3%) (2%) (2%) (1%) can achieve greater efficiency with a dedicated Overseeing policies on such labor-related 267 179 261 118 103 119 staff of employees who are familiar with the matters are point persons that would 30 to 50 years old 30 to 50 years old Company’s internal systems. typically be the HR Manager or Department, 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals Environmental and Social Manager, or the 313(5%) 208(4%) 390(5%) 390(6%) 451(9%) 502(6%) For the year in review, almost all of our covered Recruitment Officer. The performances of these Over 50 years old Over 50 years old terminals have formal policies in place to point persons are evaluated through their KPIs hire locally in their operations, or actually do and annual performance assessment. 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals so as a practice. 10(0%) 8(0%) 121(1%) 113(2%) 209(4%) 251(3%) In the majority of the terminals, human and Among the notable examples are BGT, OPC, financial resources are being allocated to Total number (rate of) new hires by gender* Total number (rate of) turnover by gender* and NorthPort. Per concession commitment, support recruitment and hiring policies and BGT is called upon to employ 40 percent of functions. Amendments in resource allocation Male Male their workforce locally. However, BGT’s actual and utilization are advised and implemented 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals local employment is at a very high 98 percent. on the basis of utilization trends. (For example, 503(8%) 338(7%) 643(7%) 559(9%) 685(14%) 787(9%) BGT provides opportunities for young local PICT and TSSA provide adequate resources talent (such as via its 2019 recruitment drive that are allocated according to the budget Female Female in partnership with the University of Basra). requirements. These allocations undergo a 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals Similarly, OPC requires that at least 90 percent proper approval process.) 87(1%) 57(1%) 101(1%) 62(1%) 77(2%) 85(1%) of its employee base should be locals, and this has been mandatory since day one. BICT In over half of the terminals, in case local hiring Diversity of employees by employee category* and AGCT, however, have free choice in hiring issues arise, grievance mechanisms include in accordance with their respective labor Labor Policies (i.e., whistleblowing policy), Employee category 8 major terminals 8 major terminals 24 terminals laws. For its part, NorthPort, which honors its regular meetings with stakeholders (wherein Admin - Rank and File 735 432 882 commitment (based on the Labor Code of the employees can directly communicate their Philippines) also considers qualified applicants concerns), and suggestion stations. HR and Admin - Management 262 293 439 Operations - Rank and File 4,196 3,643 6,282 Operations - Management 511 542 986 ICTSI employees by region and division* Total 5,704 4,910 8,589 Terminals Admin Operations Total
Philippines 263 1,921 2,184 Governance Body** gender diversity Governance body** age group diversity APAC ** 466 1,250 1,716 Gender 2019 2020 Age group 2019 2020 Male (63%) (69%) Under 30 21(16%) 29(13%) EMEA 256 1,223 1,479 80 150 Female 47(37%) 66(31%) 30 to 50 71(56%) 132(61%) Americas 454 2,462 2,916 Over 50 (28%) (26%) Total 127 216 35 55 Others 250 18 268 Total 127 216 Total 1,689 6,874 8,563 * Figures shown in the tables refer to all 24 terminals (including affiliates covered by this report). * Figures shown in the table refer to all 30 operational terminals (excluding affiliates) ** Governance Body is defined as the Company's Board of Directors, Key Officers, and Global Corporate employees for the Group. ("Key Officers" includes employees with ** Figures excluding Philippine operations positions from Vice President and higher.)
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IiP recognizes SCIPSI employee as Community
Employee of the Year Half of the terminals have grievance mechanisms part-time employees, while in two terminals, no pertaining to employment management. These such distinctions are made. Since joining in May 2016, the presence of mind and selflessness Earning the trust of her supervisors, mechanisms include suggestion stations, Eloisa Jane Onez, an to put the fire under control. She could Eloisa quickly moved up the ranks Accounts Receivables have fled, but that won't be Eloisa, say until she was appointed Accounts meetings, and direct communications. Leaves Specialist at South Cotabato her colleagues. Receivable Specialist in October To protect the rights of workers to raise families, Integrated Port Services, Inc. 2019—here she reduced all the 60-day Our Company’s code of ethics for employees, the without insecurity over possible discrimination (SCIPSI), has exhibited overdue accounts to zero—a huge help ICTSI Code of Business Conduct, is published in and job loss, legal frameworks exist in over selfless dedication to serve in maintaining SCIPSI’s cash flow. our company website. Due orientation on these 180 countries to provide paternity and and improve the company’s Recognizing her potential, her principles and implementing guidelines are part maternity leaves benefits to workers. ICTSI has processes. In November, supervisors encouraged her to join of the onboarding process for all new hires. The consistently upheld such rights. The majority these sterling qualities earned the Company’s People Development for her the distinction of Community Program, paving the way for her to ICTSI Code of Business Conduct is published in of the responding terminals cited their policy of Employee of the Year during the complete an MBA program in 2020. our corporate website. supporting employee parental leave and child Investors in People (IiP) International “To what lies ahead, I hope my care through parental leaves, maternity leaves, Awards in London, United Kingdom. journey will take me to where I want to In cases of breaches of the Code of Business and other provisions required by law. Thanks to her safety training at be, and to a life full of surprises and life Conduct, a Director, Officer, employee or any SCIPSI, Eloisa was able to save an enriching lessons,” she said. concerned party is enjoined to bring the matter In our flagship, MICT, the terminal’s orphanage in her hometown of General SCIPSI was also shortlisted in to the relevant authority, or directly notify the Management has taken its support of Santos City in the Philippines, and two other categories of the 2020 IiP possibly the lives of the nuns and Awards, namely The Learning and Compliance Officer. For issues that are thus parent-workers a notch higher, and children after a fire broke out there in Development Award and The Employee brought to the attention of Management, our included employees’ dependents in the 2019. While none of the nuns knew how Engagement Award. ■ Company policy ensures the welfare of the health management organization or HMO to use the fire extinguishers, Eloisa had whistleblower or informant by treating his or her coverage benefits. identity with strict confidentiality.
Recruitment teams are in charge of receiving commitments are in line with local and Wages and benefits Occupational Health & Safety and evaluating complaints. international labor regulations, as well as Throughout the first 31 years of our existence voluntary commitments to ensure policy as an organization—predating the launch of Management leadership In terms of remuneration, the Company provides effectiveness and inclusive employee culture. our ICTSI Human Capital Statement—we have With the ICTSI Board of Directors’ leadership, employee and retirement benefits which are As mentioned previously, the voluntary adoption observed universally-held principles pertaining we had already established a Group-wide generally more than what is required by existing of international standards and commitments are to fair remuneration, competitive relative to the management structure to set directions, laws, in order to help our employees and ensure increasing within the ICTSI Group. domestic industry and local labor markets. that they are covered beyond their tenure. Where needed, we invest in upskilling, training, In the case of SCIPSI—with its Investors in Alongside our preference for permanent or or retraining of available local labor—just one People certification—the terminal further full-time employment and local hiring, we also Terminal certification example of the benefits of the employee life enriches its policies with insights from such exert care to provide wages and benefits that are ISO 45001:2018 Occupational Health and Safety MICT cycle at ICTSI. initiatives such as the People Management above the minimum mandated by the locale or Management Systems Association of the Philippines’ Salary and region’s wage boards or counterpart agencies. OHSAS 18001:2007 Occupational Health and Safety MTS As of yearend 2020, all of the 24 terminals Benefits Surveys. In PNG, the Management Management Systems reviewed have employment management policies teams of SPICTL and MITL hold quarterly However, there are expected variances not ISO 45001:2018 Occupational Health and Safety PICT and practices in place. These policies are aligned meetings with the local union and maintain open only in the contractual terms and stipulations Management Systems with our Human Capital Statement, following lines of communication to discuss concerns. governing each port authority-terminal OHSAS 18001:2007 Occupational Health and Safety SCIPSI the general principles of human resource concession in our Group, but also variances in Management Systems
management. Approved by each terminal’s CEO The majority of our terminals have defined the applicable laws and nomenclature involved, ISO 45001:2018 Occupational Health and Safety YICT or Managing Director, these policies comply goals and targets to manage employment in there being 19 countries represented. Management Systems
with all legally required processes for the their operations, in line with business strategy ISO 22000:2005 Food Safety Management Systems BCT recruitment, selection, hiring, and application of and approved budgets, with the aim of ensuring The majority of the terminals covered in this ISO 22301:2014 Business Continuity Management Systems
taxes due throughout the payroll process (under the valorization and development of human report provide full-time employees with standard OHSAS 18001:2007 Occupational Health and Safety ICTSI Iraq (BGT) the purview of the Payroll Supervisor and HR capital, supporting each terminal’s performance benefits that are not provided to temporary Management Systems Manager). Such policies are updated based on and competitiveness. They also have point or part-time employees. These benefits range OHSAS 18001:2007 Occupational Health and Safety CGSA local, legal, and operational needs. persons (typically HR employees or the head from: medical and dental care, transportation Management Systems of the Selection and Development team) and meal vouchers, medical/health insurance, OHSAS 18001:2007 Occupational Health and Safety CMSA All 24 terminals covered in this report reporting on such policies, and allocate human, scholarship bonuses, vacation bonuses, pension Management Systems have commitments in relation to managing technological, and financial resources (with the fund, paid sick leaves and paid vacation leaves. ISO 45001:2018 Occupational Health and Safety OPC employment in their operations. These latter included in the annual or general budget). On the other hand, four terminals do not have Management Systems
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oversee, and drive forward our HSE principles, to prevent injuries through vigilance, regular policies, and practices. The structure rests employee training, and having rigorous safety on a clear accountability framework, includes standards in place. Implementation of health and safety management systems mechanisms for collaboration and consultation, 2019 and 2020 2020 and supports a robust feedback system for The COVID-19 contagion threatened the value (8 major terminals) (24 terminals)
evaluating, finetuning, and further strengthening of life at a magnitude no one expected; it tested Percentage of terminals with implemented occupational health Health, Safety, and Environment (HSE) policies our commitment, and ultimately has served to and safety management system 100% 100% and practices Group-wide. strengthen our resolve. In our interim omnibus Percentage of terminals with implemented occupational health guidance, “Practices for a Safe Workplace,” we and safety management system that is internally audited 100% 100%
The ICTSI Global Health, Safety, Security and put front and center “protecting our lives and Percentage of terminals with implemented occupational health 2 Environment (HSSE) Department has been livelihoods, our people remain our No. 1 priority,” and safety management system that is audited and/or certified by an external party1 75% 37.5% continuously collaborating with terminals to along with three other areas of focus. A second 1 Percentages above cover all employees and contractor personnel in the terminal. harmonize the existing occupational health and area, “Living by our values, providing support 2 Two other terminals that have not yet achieved external certification of their implemented health and safety management system continue to safety (OHS) policies present in all our terminals and care for our host communities” also drove prepare for such. (including the ones covered in this report), and us to fresh ways to serve our partners in these to standardize the approach for addressing locales. (See discussion on “COVID-19 response systems in place, with the major ones either Normally, this OHS Committee would include health and safety risks in our operations. and resiliency-building.”) maintaining external certification, or working representatives from Management, line to achieve it. managers of key departments and union workers In 2020, we launched the ICTSI Human Capital Health and Safety management (and even contractors, in some terminals) to Statement, and among the seven overarching systems To further strengthen values and skills in HSE, facilitate communication and address workplace principles we reiterated there is the paramount Health and Safety management systems based we encourage our terminals to maximize the health and safety issues. importance we put on promoting health safety: on international standards and industry good Group-wide knowledge base and collaborate through a comprehensive set of internal practices, in accordance with existing local with other terminals, and share good practices. In support of effective health and safety safety standards which are upheld at every laws, are in place in our terminals. All terminals management at each terminal, the range container terminal, and constantly improved— have their respective OHS management The goal is to eliminate serious injuries of consultative processes may include and fatalities and reduce risks to the Labor-Management Committee meetings, various port users. Several terminals have toolbox meetings, suggestion boxes for all already secured and maintained external personnel, and communications programs that Beyond certification: certification on international HS management include information boards and brochures. The system standards. majority of the terminals touch base monthly. cooperation for increased health and safety For each terminal, the OHS Management Risks and hazards management ICTSI terminals continually These requirements form the basis of to provide employees with a safety-first, System generally covers all parties that have Our health and safety programs necessarily
pursue increasingly such security exercises. growth-focused work environment. access to enter the port facility: all employees, include risks and hazards management, of comprehensive certification CMSA’s Emergency Brigade, which is contractors, and visitors. Everyone who works which a vital plank is the identification and and recertification, based on MICT (Philippines). Amid the composed of employee volunteers from within the premises of each terminal, transacts assessment of these potential threats. Done on
international standards for pandemic, MICT pushed through different departments, held a training business, provides goods, and carries out the a constant basis, this gives us a clearer, more crucial management areas. with its emergency response training on the proper handling of spillage of services are part of the system. helpful picture, not only of risks at the present Alongside these are intra- last September, which included dangerous chemical substances. The terminal and Group-wide initiatives that simultaneous earthquake and seminar empowered the brigade to time, but also those that can be prevented. leverage teamwork and camaraderie to evacuation drills. Led by the HSE capably respond to such incidents Worker participation engagement strengthen the safety culture. department and joined by medical and while fostering the crucial elements of Our success in safeguarding each precious life Further, as our experience in tackling the risks ERT staff, a fire extinguishing activity teamwork and division of activities. On necessarily includes the collaborative effort, posed by the pandemic has shown, there is more ICTSI Rio (Brazil). IRB participated in and demonstration on the use of the other hand, with the arrival of five beginning with labor and management. value than ever before in assessing risks of both the Port of Rio de Janeiro’s Esporto automated external defibrillators (AEDs) new RTGs, the terminal’s Operations, types: those that arise during work that is of a 2020 Nuclear Physical Security were also performed. Observations and Human Management, and Security Majority of the terminals indicated that they routine nature, and those risks that come with Exercise. The Exercise is part of Brazil’s recommendations from representatives and Maintenance departments met efforts to evaluate the prompt response from the Office of Civil Defense were to discuss ways to further strengthen have a process for worker participation nonroutine work, or with emergency situations. capacity of the agencies and entities likewise shared to the ERT and HSE interdepartmental collaboration and consultation in the development, involved, in the event of a nuclear Department in the debriefing. and maximize the equipment’s implementation, and evaluation of the All terminals have a process established emergency in the port area. Brazil is new technologies. Department occupational health and safety management specifically to identify work-related hazards and a member of the International Atomic CMSA (Mexico). As part of a global representatives exchanged ideas on system. The collaboration is typically formalized assess risks on a routine and non-routine basis. Energy Agency, which, together with the company that upholds international developing the 23 RTG operators’ skills, in a joint management-worker committee Guidelines include identification of work-related IMO, has established requirements for standards on safety and workforce improving equipment management, and known as the Occupational Health and hazards and corresponding mitigating measures safeguarding the transport of nuclear development, CMSA continuously maximizing the efficiency and safety of Safety Committee. or controls (based on the hierarchy of controls), or radioactive material by land or sea. develops its internal programs designed their operation through practice. ■
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planned inspection process and checklists, be the case with a specialist who would help work permitting templates, and hazard and assess the risks of fatigue. ** 2019 2020 incident reporting. Our progress relating to safety performance Additionally, the terminals have various forms of Moreover, all these terminals also have occupational health facilities and capabilities: Employees occupational health and safety services the MICT clinic manned by doctors and nurses; Key Performance Indicators Group-wide Group-wide functions that contribute to the identification and the training and qualification of first Fatalities 3 0 and elimination of hazards, as well as the aiders in LGICT. minimization of risks. Important steps towards Lost Time Injuries 86 112 these two ends include inspections and Incident reporting and root cause Lost Time Injury Frequency Rate (LTIFR)1 2.71 4.15 terminal tours (such as BIPI’s Safety Walk), investigation 2 investigations, and constant coordination At our terminals, safety orientations or Lost Time Injury Severity Rate (LTISR) 54.7 66.3 between each terminal’s in-house HSE inductions include pointers on the crucial role Manhours3 32,882,886 27,013,994 team members and relevant work groups, that our workers have in keeping the workplace contractors, and customers. Effective safe for themselves and their colleagues: Contractors engagements may come in the form of MGT’s helping identify, assess, and report risks and Key Performance Indicators Group-wide Group-wide HSSE inspections, during which members of hazards, and contributing to the continual the HSSE team pose questions to workers to process of improving workplace safety. Fatalities 0 0 ascertain not only their awareness of proper Lost Time Injuries procedures, but just as important, their respect All terminals in review have established a wide 38 44 for these guidelines. range of processes to not only enable but also actively encourage employees to report ** In VICT, the HSE team members are the work-related hazards, hazardous situations Employee lost time injuries (LTIs) alignment and centralizing approach to the or incidents, and near-misses. Intrinsic to the process of hazards identification. However, reporting process are the safeguards that when warranted, subject matter experts are are in place to protect the informing party Injured whilst handling, lifting or carrying 2019 2020 Slip, trip or fall at same or uneven levels called in to provide additional support, as may from reprisals. Hit by moving, flying or falling object Incidents involving moving vehicles Contact with moving machinery or 18 16 something being machined 32 Others 2 38 9 14 ICTSI evaluates safety incident data to help Health and Safety Training identify performance trends and deploy safety campaigns / programs focused on 15 Emphasizing safe work practices for specialized functions and tasks, ICTSI organizes a comprehensive training schedule for port workers. The operational activities or areas with the most H&S-oriented training courses and activities include the following, among many others: 18 risk. Regular reviews enable the Group to 25 improve its safety planning and reporting and Training/Demo on CPR and the use of AED for front desk personnel & 23 optimally allocate its resources to implement COVID-19 Awareness & Protocols security officers 24 fit-for-purpose incident prevention programs. Emergency Response & Precautionary Measures in cases of Vulcanic Overcoming Depression and other Mental Health Topics For the year in review, the increase in LTIFR Eruption/Ash Falls was due to our group-wide strengthened campaign on the importance of incidence How to Handle Suspected/Confirmed COVID-19 patients Occupational Safety & Health (OSH) Mandatory Training for Employees reporting no matter how superficial it is, as well as the issuance of the Global Health and Manual Handling for Stevedores and other port workers (Ergonomic & Incident Management during Pandemic Safety (H&S) Reporting Definitions which Back Safety) provided a much clearer guideline on the incident reporting requirement throughout Working at Heights Safety Health, Safety & Environment Induction for Employees the entire ICTSI terminal network. Lock out Tag out (LOTO) System Health, Safety & Environment Induction for Contractors 1 Number of LTI cases per million employee manhours. Integrated Management System Health, Safety & Environment Induction for Outside Truck Drivers 2 Number of lost days (related to LTI cases) per million employee manhours. 3 Only manhours for employees are currently being tracked Hazard Recognition & Risk Assessment Incident Reporting & Investigation * Values for contractor LTIFR and LTISR are not available since manhours for contractors are not being tracked ** Figures pertain to all 31 operating terminals Near Miss/Hazard Alert (NMHA) Reporting Benefits of Regular Exercises
Emergency Management Training (Chemical Spill, Fire and Evacuation) Fire hydrant Operation Exercises
Introduction to Dangerous Cargoes (IMDG Code) Disaster Resilience
First Aid and Basic Life Support (Adult CPR) Rain Safety Basic Fire Suppression for ordinary employees (use of Fire Terminal Preparations during Typhoons and High Winds Extinguisher) Alcohol Breath Testing in the Workplace
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The terminals practice open-door policies to requirements, and to continually raise OHS encourage would-be reporters; they also allow standards across all of its terminal operations. ICTSI rolls out mass testing initiatives; reporting via oral reports, emergency phone numbers, emails, and electronic application Apart from systematic risk management (risk employee vaccination underway reporting. (In at least one terminal, there assessment, as well as hazards and control is even an incentive program in place to measures identification), our terminals: What it’s all about. ICTSI Infectious Diseases are collaborating
encourage active reporting of hazards to the communicate safe work procedures and control continues its effort to mitigate to procure an estimated 20 million Safety Officer.) measures to workers, utilizing training, toolbox the harsh ramifications of the doses which to date will be the largest talks, special campaigns (such as awareness COVID-19 pandemic. In the combined national government, local Moreover, most terminals have policies and campaigns); report and investigate incidents, Philippines, ICTSI is government, and private sector vaccine processes that include coordination with their and conduct hazard alert and near-miss participating in two of the order in the country. most advanced private ICTSI’s main priority will be respective HSE departments to report unsafe reporting; and, conduct internal audits to check sector-assisted vaccination procurement each and every employee and their conditions that could cause accidents or that do the effectiveness of implemented programs, programs and mass testing initiatives qualified dependents, including the Our employees are not allow safe operation. and introduce enhancements as part of to date. broader maritime logistics industry continual improvement. Through a collaboration with the who have contributed broadly to our number one Via orientations and trainings, workers are duly government, Go Negosyo, and 30 delivering essential work during the advised to report dangerous working conditions For the year in review, most of the work-related other companies, ICTSI is part of a pandemic—day in and day out across asset. As we try to that may place their lives in imminent danger. injuries in our operations relate to slips, trips, private sector initiative that is bringing the waterfront. The Company likewise in the first three million doses of the committed to supporting efforts to overcome this most They have the right to refuse to work, without falls, and manual handling. Oxford-AstraZeneca COVID-19 vaccine vaccinate at-risk residents of our difficult phase and fear of retaliation, and to remove themselves Through a tripartite agreement with host communities, including Manila, from work situations if there is reasonable and We have also identified work-related hazards the Government and AstraZeneca, Paranaque, Iloilo, Cagayan de Oro, and into the ‘new normal’, good faith belief that the work conditions pose with high-risk consequences that were present these vaccines will be distributed to the Subic Bay Freeport. a substantial risk of serious physical injury, in our terminals in 2020 including: suspended health workers and economic frontline On top of these efforts, ICTSI is we do so without illness, or death. loads, work-at-height, pedestrian-mobile personnel as part of the government's implementing regular mass testing since letting our guard equipment interface; working with energized inoculation priorities for mid-2021. April--using testing protocols prescribed ICTSI and its sister companies have by health authorities—to screen its In addition to these accident prevention equipment/machineries, falling objects, and down. committed 50 percent of its 300,000 entire workforce: those who have been programs, all terminals have a formal process manual handling. purchased doses for the Philippine working from home and at the very front — Enrique K. Razon Jr., to carry out an investigation when an Government. lines to help keep the economy moving. ICTSI Chairman and President accident happens. Accident investigations are Our mitigation measures ranged from: ICTSI, through our social At the Manila flagship, rapid antibody immediately carried out by line management in upgrading of equipment with better safety responsibility arm ICTSI Foundation, and/or antigen testing is being utilized coordination with the terminal's HSE department. features; deployment of additional safety is also the lead private sector party alongside confirmatory testing to In most instances, a comprehensive root cause protocols for lifting activities and equipment in the eventual procurement and ensure a safe working environment for homes. These measures complement distribution of the Moderna mRNA employees and other port stakeholders. the Company's effort to regularly analysis is conducted as part of the accident maintenance work; enhancement of traffic COVID-19 vaccine. The Foundation, the sanitize the port premises. Beyond investigation and involves personnel with specific management (traffic flows, signage, training of Philippine Embassy in Washington DC, Why it matters. The current testing these, the planned vaccinations are technical expertise to identify areas that need mobile equipment operators); enhanced training the Department of Finance, and the protocols address the more immediate another essential step in safeguarding changing or improvement. programs for equipment operators; regular Inter-Agency Task Force on Emerging need to ensure safe workplaces and the employees' overall health and safety talks; and, toolbox meetings. well-being, and contribute to the goal of Management review and achieving herd immunity. continual improvement To eliminate or minimize the risks of Further, ICTSI sees the vaccination program as a game changer to control Given the value of the life of each employee, work-related hazards to cause accidents, the COVID-19 pandemic, and a key the Company is committed to the ongoing, identified corrective actions from incident to recover the Philippine economy continual improvement of OHS management. investigations, risk assessments and/or which has slumped down due to the inspection audits are promptly carried out. contagion. The Company has established key performance indicators (e.g. HS Training Hours, Number Emergency management and response Who benefits. The current testing of Near-misses and Hazard Alerts, Health Our commitment to protect employees, efforts, and the securing of the vaccine supplies highlights—in a strong and Surveillance, Lost Time Injury Frequency Rate, contractors, visitors, and the public concrete way—the premium that the Total Recordable Injury Rate, Lost Time Injury encompasses the establishment of emergency Company places on human health. Such Severity Rate) and has set goals (e.g. zero response capabilities in each terminal. measures help protect the employees, fatalities, LTIFR percent reduction, etc.) as a and also redound to the benefit of demonstration of its commitment to prevent Our terminals’ site-specific emergency response their families, other port users, and injury and ill-health, comply with applicable legal plans outline: the structure and membership of eventually, the economy. ■ their respective in-house Emergency Response
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Teams (ERTs); the appropriate personnel daily monitoring of blood pressure, Vitamin C training and drills; specific procedures and supplementation, free eye examination and guidelines (based on a risk assessment); and, prescription glasses, and an “Arthritis Clinic.” the necessary tools and equipment, such as stand-by ambulances (or dedicated vehicles MICTSI, on the other hand, has built a very for transporting patients or victims) and/or a locally responsive roster of programs, which fire truck. All the above equip the ERTs to ably includes key topics anchored on international respond to various types of emergencies. and local observances: Liver Cancer and Hepatitis Awareness Month, Oral Health Month On call 24/7, these ERTs are composed of and National Health Insurance Month, World TB personnel from key departments, especially Day, and even Immunization Awareness Month Engineering, Operations, and HSE. and National Health Emergency Preparedness.
For the ERTs in each of our terminals, two types of emergency response training activities are COVID-19 response and conducted: general training (e.g., evacuation resiliency-building procedures) and more specialized training intended solely for members of each terminal’s ICTSI committed itself to going the extra mile ERT. Additionally, depending on the operating to safeguard, advance and promote labor environment, ERT members may be provided rights even—and especially—in the midst of specialized training in handling specific the pandemic. Keeping people informed and encouraged security risks. In our Practices for a Safe Workplace, where As initial reports of cases placed under quarantine. Even as awareness and prevention against the Health care and promotion services we outlined our efforts to prevent and reduce solidified into full-blown OPC collaborated with the Honduran outbreak On-site clinics, medical care, health programs, disease transmission and other impacts on national declarations of government to mitigate the contagion's pandemic, ICTSI subsidiaries impact on the supply chain, the PICT (Pakistan). Consistently recognized annual check-ups, and health insurance are employees and stakeholders while maintaining fast-tracked their respective Company also rolled out a mental in Pakistan for its workplace best some of the ways that the overwhelming business operations, we included general initiatives: delivering up-to- wellness campaign for its employees. practices, PICT, in April, started majority of our terminals facilitate their policies for the Company, as well as detailed date information and health Launched in June with the guidance conducting virtual motivational sessions employees’ access to non-occupational medical guidelines for Employees. advisories to their teams, and, equally of doctors and psychologists, the for cross-functional employees to boost and healthcare services. crucial, supporting mental health among campaign tackles how employees their morale and re-energize them as On our part, we prioritized, among others, onsite and remote workers. can effectively manage stress, fear, one team. The virtual sessions led by Moreover, almost all of the terminals have regular disinfection of various work areas, and anxiety that may result from the Arif Raza (PICT Head of Human Capital), voluntary health promotion services and equipment, vehicles included—with guidelines ICTSI Global Corporate. In June, ICTSI disruptions (e.g., changes in work while offering a platform for employees addressed a rapidly emerging effect setup and process). The campaign to break down the silo mentality and programs that are being offered to workers to for safe re-entry; decontamination where of the pandemic: a survey among also touches on having a balanced function more effectively as a team, also address major non-work-related health risks needed; and detailed steps for handling entry, Global Corporate employees surfaced diet and regular exercise. In July, the encouraged the generation of out-of- and specific health risks through medical as well as handling hazardous wastes in the concerns regarding mental health. campaign, utilizing the Company’s the-box ideas to achieve personal and exams, health fairs, and health surveillance. form of COVID-19-related PPEs and other Over three months into remote/work- official communication channels professional objectives, and highlighted medical wastes. from-home arrangements, employees (print, audiovisual, and program talks), the need to keep one’s spirit high to We enable our terminals to develop their revealed their struggles with anxiety and was expanded to help other port overcome difficult situations. psychological stress. ICTSI thus tapped stakeholders who work onsite or from localized health care and promotion initiatives, Over two-thirds of the terminals in review the behavioral health care organization home. Digital platforms such as the MICT (Philippines). At the Manila based on the needs of their employees. have provided detailed examples of how MindNation and its network of clinical Company website, Facebook, Instagram, flagship—the nation’s largest and they addressed labor practices related to the psychologists (specializing in, among and LinkedIn were also tapped to busiest—the Public Relations Office and In the case of SCIPSI, the customary provision contagion, such as implementation of fair others, burnout, anxiety, extreme broaden the reach to surrounding Human Resources Department launched of Annual Physical Exams was enriched policy to work from home, sanitary measures crisis, and/or depression). MindNation communities. MICT’s email bulletin, “Sama-sama, further, with each employee apprised of his (i.e. provisions of masks, hand sanitizers/ likewise provided: consultation sessions Kayang-kaya” last April to encourage or her test results. Accordingly, SCIPSI’s alcohol, gloves, and even PPEs and vitamin C with licensed psychologists and CMSA (Mexico). Taking advantage of resiliency among workers transitioning well-being coaches; emails; toolkits, the Microsoft Teams platform, CMSA to remote setups, and support their Management developed health programs for some terminals), social distancing controls guided messaging, blogs, and updated regularly holds online town halls called changing needs during the pandemic. addressing the more common health issues established in the company premises, and resources. “Conversando” to encourage dialogue Roughly translated as “Together, we that surfaced. In MICT, the roster of continuing health and awareness drives. These were some between CMSA Management and can,” the bulletin includes COVID-19 programs—tackling drug and alcohol use, HIV/ of the mitigating measures that helped minimize OPC (Honduras). OPC’s early adoption employees. The “Together against situationers and advisories, company AIDS, TB, and hepatitis, among others—was exposure to the virus. of COVID-19 biosecurity measures COVID-19” campaign was likewise updates, and a variety of features on further beefed up in 2020. MICT introduced for port workers and visitors came launched to create a culture of safeguarding one’s mental and physical in January, before Honduras was health. ■
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In MICT, some of the efforts included facilitation and temperature taking were done before they Labor rights, standards, and administration of 1) employee stay-in with became mandatory and before the equipment and relations corresponding complete food complements, and materials became scarce. They sent home 2) special transportation for employees people with chronic diseases and any over Freedom of association and collective residing inside and outside of Metro Manila, 3) 55 years old, even though the age set by the bargaining agreements streamlining of roles and functions as deemed government was over 60. OPC was the first ICTSI upholds good, quality relationships and necessary for the longevity and continuity to be audited by the Municipal Emergency communication with all employees, anchored of the business, 4) new rostering/manning Committee, and with satisfactory results. on the firm belief in the value of each person, schedule to balance out the work to manpower and translating that into concrete policies and ratio, and 5) relief good package distribution With the health crisis introducing drastic practices that fully respect their rights. for all employees including provisions changes to the modern workplace, many for free Vitamin C supplements to boost workers became more vulnerable to mental Thus, we comply with the socioeconomic laws, employees’ immune system. and psychological stress. To help employees regulations, and policies in every territory where and their dependents navigate through these we operate, including domestic labor laws and In MICTSL, there was very early anticipation changes, ICTSI Global Corporate tapped international labor conventions. Beginning with of pandemic threat (January 2020) prior to behavioral health care organization MindNation our single port in Manila, Philippines, when Another example is OPC. While it does not the detection of the virus in Madagascar (in to provide employees with emotional and mental we were established in 1988, we have had have a union or collective agreements, there March 2020) leading to zero case of COVID-19 health support through several webinars and long-standing commitments to support the right is an employee committee that is managed recorded in the company up to this day. an exclusive MindNation Facebook group for to freedom of association, collective bargaining through annual employee engagement surveys, ICTSI employees. agreements, proper remuneration, and benefits. objective settings with one-on-one feedback Group-wide, vulnerable employees were kept on performance appraisal, suggestion boxes isolated at home to guarantee their health. Additionally, PICT and OPC, in their In terms of freedom of association, the 24 to air employee issues, as well as an Internal Notably, OPC was the first international respective bids to help employees navigate terminals reviewed posted a unionization Work Regulation and Disciplinary measure terminal to implement biosecurity measures in pandemic-triggered stressors, spearheaded rate of 82 percent in 2020. (In the 2019 and policy application. Honduras. Acquisition of PPE and materials, their own virtual motivational sessions for 2018 reviews which covered the eight major cross-functional employees to boost their morale terminals, 86 and 70 percent of our employees, Labor-management relations and re-energize them as one team. PICT’s respectively, were union members based on the All 24 terminals in review have an existing Building cooperative labor-management online session ‘Health Talk – Let’s Connect to number of employees eligible to form a union.) policy and commitments in place to engage relations Disconnect COVID-19’ provided employees workers and/or manage labor relations in their a platform to have better safety awareness, Of the 24 terminals reviewed in 2020, those operations, mostly due to regulatory compliance SPICTL (Papua New government because keeping reinforce importance of mental health and the with existing collective bargaining agreements and regardless of whether or not there is a
Guinea). SPICTL these two ports open is key for need to embrace a calmly balanced routine. (CBAs) and relevant applicable statutory CBA in place. Enforced Group-wide and with signed the Industrial PNG’s economy.” The labor requirements have followed these requirements guidelines and mechanisms varying per terminal, Agreement for agreement covers around 550 Likewise, OPC, with the guidance of doctors accordingly. The CBAs are typically held every these are usually approved by the CEO and Stevedoring and Handling employees in SPICTL and Workers and Other Support Motukea International Terminal and psychologists, also launched a campaign five years to foster good management-labor Managing Director and are reviewed on a regular Services Employees with the in Port Moresby. in June that focused on how employees can relations. For a majority of the terminals, notice basis. Policy awareness sessions, suggestion PNG Maritime Union and effectively manage stress, fear, and anxiety that periods and provisions for consultation and box, surveys, meetings, and performance Employees Federation in MCT (Mindanao, Philippines). may result from the changes in the work setup negotiation (typically 30-day periods) are appraisal are some of the avenues that help October, thus becoming the MICTSI and MICTSI and how they work. The campaign also covered specified in these collective agreements. ensure the effectiveness of these commitments. first port operator in PNG to Labor Union – Federation other aspects of health like having a balanced sign the three-year agreement of Democratic Labor diet and regular exercise. CMSA, meanwhile Regardless of whether there is unionization in ICTSI aims to consistently foster a culture of in 2020. Together with Reg Organization signed a new McAlistair, PNG Maritime five-year Collective Bargaining had its own “Together Against COVID-19” a particular terminal, the Company encourages open communication by having processes in Union General Secretary, and Agreement in 2019 for the information campaign. the right to freedom of association through the place to provide a place for dialogue between Florence Willie, Employees period of 2020-2025. Various formation of labor-management councils. In this employees and management. This harmonizes Federation Executive Director, new and improved benefits way, even employees who opt not to be part the objectives and efforts to maintain SPICTL Chief Executive for employees will be granted of a union still have the opportunity to engage smooth work collaboration and ownership in Officer, Robert Maxwell, such as yearly wage increase, management or to formally have their concerns the workplace. signed the agreement, saying a broader insurance coverage, aired and addressed. For instance, in the case “The signing of this agreement hospitalization for their during the COVID-19 crisis has dependents, bereavement of MICTSL, most of the new hires and former In MICT, for example, through the joint paved the way for business assistance and bereavement union members voluntarily opted not to be efforts of the HRD Industrial Relations and continuity and shows leave, and monthly rice union members in 2020, since both union and the Labor Union, NMPI-NAFLU, policies confidence and support to the subsidy. ■ non-union members receive the same benefits. are scrutinized thoroughly by conducting
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Breaking through the gender barrier
ICTSI believes in diversity in the workplace, and
grievance machineries and labor-management number of social incidents related to working gives equal opportunity to female workers. While conferences. There is also the quarterly conditions, KPIs, and performance appraisal. ports and shipping remain one of the most conduct of "Ugnayan sa Pantalan," a venue The primary backdrop in setting their goals and male-dominated industries in the world, the made available to encourage dialogue between targets is the capacity to provide higher labor Company continues to make steady progress in the Management and its employees. Aside standards and the maintenance of industrial broadening opportunities for women workers and from this, there is a regular Labor Management peace. almost all of the terminals in review have executives. Council in place wherein various operational resources allocated to support this function, CMSA (Mexico). A milestone was achieved in March 2020 related issues are discussed between and have designated point persons reporting on as CMSA welcomed its first female stevedore. After months Management and Union Officers. The fruits of these processes. It is the line manager and HR of continuous training and gathering of experience in the this evaluation are evident in the good rapport Department who manages the labor relations, field, CMSA welcomed Patsi López Cruz, the company’s of the Management and the Labor Union and whose performance is evaluated through KPIs first woman forklift driver. Since then, she has been an in the cooperativeness of the latter in the and a performance evaluation system. inspiration to her colleagues, promoting professionalism Senior Information Technology Analyst at SPICTL. Sevua implementation of employee policies. and hardwork. Considered a huge feat in workplace has been with the company for a couple of years now diversity, CMSA hopes that this move will invite more and has described her experience as “challenging but not In matters pertaining to labor-management women to enter the port industry. scary.” She imparts the lessons she learned when their In TSSA, an Organizational Climate Survey is relations, grievance mechanisms are in place team successfully developed SPICTL’s website—first, conducted. Everything that is scored in the for 19 out of the 24 terminals. Grievance SPICTL (Papua New Guinea). Working in a largely-male the importance of safety; and second, to try new things climate survey, whose goal is 75 percent, is channels include Labor Policies (i.e. whistle field, Tanya Sevua, a former IT support officer, is now a every day. ■ evaluated and recorded, and action plans are blowing policy), regular meetings with the then created in their integrated management stakeholders (wherein an employee can directly system. This management, measurement communicate issues), and establishment of and control tool, in addition to facilitating the suggestion stations. The HR and Recruitment execution process, consultations, comparisons Team are in charge of receiving and evaluating Work-life balance with one-year free subscription of wi-fi access to and analysis by the HR Department, allows any complaints. Our Company has long provided opportunities help support the online courses of their children. managers to examine the results of their areas for employees to better manage a good work-life Other employees (specifically in the Philippine and the engagement of all. They point out The effectiveness of these mechanisms is balance. (In our earlier years, for instance, there terminals) also received grocery support for their relevant topics such as benefits, clarity and evaluated based on the status of the concerns were opportunities for employee volunteers to families at the height of the lockdowns. strategic alignment, communication, working or disputes, and can be evidenced through enjoy the company of their families on weekend conditions, work safety and sustainability, the harmonious relationship with the labor tree-planting activities.) In 2020, we put forth cooperation and relationship, development unions and overall maintenance of industrial that commitment more explicitly when, in our Diversity and equal opportunity and performance, engagement and motivation, peace. Additionally, the company has been Human Capital Statement, we reiterated our leadership, and remuneration. able to secure certificates like the Certificate support for work-life balance by providing a Our longstanding policy of pursuing of No Pending Case which is issued by the flexible approach and being flexible employers diversity encompasses age, gender, and Of the terminals in review, almost all were able Department of Labor and Employment (as in the wherever possible within the confines of the culture, among others. to set goals and targets to engage workers and/ case of MICT and DIPPSCOR, among others). In business, with the wellbeing of our staff being or manage labor relations in their operations, the case of SPICTL and MITL, there was not a our highest priority. ICTSI’s workforce—spread out across which are currently evaluated through reduced single day off due to employee unrest. several regional operations—reflects a rich We likewise endeavor to continue nurturing multicultural and diverse group of people who our relationship with the communities we draw from a common organizational culture 2019 2020 are in by occasionally taking advantage of of respect and mutual support. As such, we Diversity of employees by age and gender holidays to hold events that involve families of have created an enabling environment where
Gender Male Female employees. In Mexico, an Independence Day cross-functional and cross-cultural training event for CMSA employees was conducted, exchanges have helped our employees hone Age Group 8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals with employees and their families given an their knowledge and skills. Under 30 966 674 1,198 138 121 221 accompanied tour of the facility. In terms of promoting gender equality, our Equally prone to stress are the children of terminals are guided by internal regulations, 30 to 50 3,535 3,171 5,313 296 287 501 employees, who abruptly had to stop physically code of ethics, and HR policies. Our terminals’ going to school and take their lessons at home selection processes do not discriminate in terms Over 50 725 625 1,287 44 32 69 instead. To support their employees and their of gender, and offer the same criteria for pay families, SBITC gave laptop units to employees and promotions. On average, 14 percent of Total 5,226 4,470 7,798 478 440 791
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Investing in professional development
2019 2020 for future leaders
Average hours of training Today's terminal managers operate in a highly-
demanding port environment. They must balance a wide variety of processes and demands to ensure that the terminal operates safely. Efficiency and Training hours by gender profitability are both critical. Male Female
8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals Shortly before COVID-19 related border restrictions swept through across the globe, 20 19.54 HRS 12.14 HRS 9.42 HRS 31.32 HRS 18.55 HRS 14.89 HRS participants from across the Group’s various terminals were able to fly into Manila to participate in the ICTSI Terminal Executive Diploma (TED) program of Training hours by category the MICT Academy, ICTSI’s newly-launched training arm. Admin rank and file Operations rank and file The program targets the Company’s middle to senior level
8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals managers – building technical and operational skills needed While many of the participants were able to return to their in terminal operations, leadership, safety management, and respective countries of origin, the program continued over the 22.23 HRS 88.59 HRS 49.23 HRS 18.58 HRS 6.14 HRS 6.80 HRS business productivity. subsequent months through online delivery modes. ■ Admin management Operations management
8 major terminals 8 major terminals 24 terminals 8 major terminals 8 major terminals 24 terminals 34.67 HRS 8.15 HRS 8.39 HRS 26.80 HRS 6.06 HRS 4.37 HRS need to allocate time and other resources as Almost all of the reporting terminals have well to COVID-19 response initiatives. commitments in relation to providing L&D programs. These are aligned with regulatory Average hours of training per employee In majority of the terminals that provided compliance, international standards (such details on their training policies and practices as ISO), and with provisions in concession 8 major terminals 8 major terminals 24 terminals have well-established formal policies that contracts (such as the case with Philippine govern their practices for providing learning ports such as MICT, SCIPSI, DIPSSCOR, and development in their operations. Guided and NorthPort, which submit their training 20.53 13.16 10.39 by their specific local needs, as well as legal plans to the PPA). Learning goals and and operational needs, these policies are targets cover general and specific objectives, HOURS HOURS HOURS typically approved by the Human Resources with performance reviewed and evaluated Management Head, Managing Director, or accordingly. PICT, for instance, takes employee terminal CEO. Such policies or practices are feedback after every L&D event, to improve management positions in terminals are held by to the continuing professional development of also reviewed, and periodically updated (e.g., for the effectiveness of future L&D activities; women, and there is no gender pay gap. our people. As expressed in our Human Capital Philippine terminals such as MICT, DIPSSCOR, meanwhile, TSSA measures hours trained Statement, we commit to fostering human and HIPSI, policies are reviewed annually). monthly, in line with its Annual Training Plan. Group-wide, we are pleased to report that our potential and capability by providing learning Company noted zero incidents of discrimination and development (L&D) opportunities for our Notable are SCIPSI’s accreditation since 2009 Our flagship, MICT, performs a yearly review of during the year in review. employees with the ultimate objective of helping with the United Kingdom-based Investors in employees’ performance based on the terminal’s everyone reach their potential. Our Management People (IIP), a standard in people management. priority training programs, and the effective use In the midst of the COVID-19 pandemic, our teams at the Global Corporate and the SCIPSI’s “Housepoints Rewards System” and of resources and delivered output. Part of its terminals noted an average rating of 1.84—on subsidiary terminals have been carrying out this People Development Program (which includes yearly budget is allocated for training; the launch a scale of 1 to 6, with 6 being most difficult—in commitment (for our first and flagship operation, Alternative Learning System or ALS, as well as of MICT Academy, ICTSI's training arm, is a terms of difficulty in ensuring adherence to nonstop for 32 years). These efforts help College, Technical and Vocational Training) have prime example. our policies on anti-discrimination, equality, uphold our gold standard of efficient and quality proven to be good motivational and continuous inclusion, and diversity. services for our customers, and in support of the development programs for employees. Other While there were a few terminals that did not larger national push towards trade growth. good examples are being provided by BGT yet have point persons reporting on training and and TSSA, whose respective training and development, it is notable that, in line with our Learning and development In most of the terminals covered by this report, development programs are in accordance with supportive organizational culture, in the case of we entered 2020 with established policies and their ISO certifications. HIPSI, its limited resources are complemented Even as our Company traverses diverse practices for providing growth opportunities to locations, we have a consistent commitment our employees, and these continued despite the
94 95 ICTSI SUSTAINABILITY REPORT 2020 Employees
by DIPSSCOR, which provides administration advisories, and features on safeguarding one’s The Company fully intends to gradually and support to the former. mental and physical health). In the MICT as reintroduce the full roster of training courses, well, it was notable that the launch of the new or to launch new ones, as business operations In the case of BGT (which set several records Hypertension and Diabetes program pushed and the overall public health situation stabilize. In in 2020, including a new container vessel through with its free trainings on prevention and this regard, L&D priorities are among those that handling productivity record), the terminal has a management of these conditions. stand to benefit from the projected stablity of dedicated trainer who works in conjunction with return-to-work scenarios after the Company rolls Operations and HSSE. For those in the Management levels, the out its comprehensive vaccination program. Company prudently rescheduled some of the Investments in L&D are common to almost training courses for 2021, to give way to the On the other hand, for those in the Management all the 24 terminals: human, financial, and more immediate and pressing needs, such as levels whose nature of work had already technological resources, all of which are urgent multisectoral meetings that aimed to been heavily reliant on digital interactions CMSA commends included in each terminal’s annual or general ensure the continuity of operations in light of pre-pandemic, there was an increased uptake of budget. (For those with relatively limited material varying levels of government-issued restrictions virtual learning opportunities. employees exemplifying resources such as BICT, human resources are and protocols. For rank-and-file operations, maximized, with the involvement of the HSSE restrictions and protocols and their impacts In cases of negative feedback regarding H&S behaviors officer, and representatives from Engineering (e.g., intemittent lack/disruptions of public L&D programs, a third of the 24 terminals and Operations.). transport) led to the constant need to reassess provide formal or officially identified grievance What it’s all about. Why it matters. CMSA has and restructure shifts. These also impacted to mechanisms, while in other terminals such as
Prior to 2020, CMSA, always rightly prioritized worker One aspect of risk management in light of the some extent the availability of employees for MICTSL, certain practices serve this function. which has maintained health and safety; and, by pandemic's restrictions (i.e., those intended to training. For those that were held virtually, it was Addressing such issues are point persons who certification for its 2020, had only reinforced reduce workplace exposure to and transmission noted that connectivity issues (e.g., instability coordinate with the HR and L&D departments. OHSAS 18001:2007 Occupa- that value, especially with the tional Health and Safety implementation of various of the virus) was the need to adopt greater or weakness of existing locally available Management Systems, had measures to prevent the flexibility in terms of delivering learning and infrastructure) affected participation rates in Upholding our manifold commitment to our launched “I am Respect 100.” contagion. The “I Am Respect training opportunities. some instances. public sector partners in developing markets—to The program recognizes 100” program helps reinforce not only bring world-class port efficiencies but employees who satisfactorily the value of CMSA’s standards In this regard, the Company and various terminals comply with CMSA’s workplace and guidelines, which aim to carried out a combination of approaches. safety guidelines. prevent risks in each of the In January 2020, CMSA activities it carries out with recognized 184 employees its employees, the goods it In line with the longstanding top-level priority for satisfactorily complying manages, the environment, given to health and safety, and with the added with the safety policies. The and especially where workers’ urgency and risks brought on by the public Management cited these health is involved. health crisis, a number of training activities, Honesty and heroism in the midst of crisis individuals for prioritizing safety especially in HSE, pushed through, albeit in the performance of their daily Who benefits. In the 2020 modified to ensure rigorous adherence to The year 2020 was significantly difficult driver. The Management, who always activities in 2019, and for being semestral run of the program, for most Filipinos, with months of encourages employees to promote the safety protocols. good examples to their fellow 263 CMSA colleagues community lockdowns placed by the Company’s values by being honest employees as CMSA continues reiterated their commitment government to mitigate the spread of and caring towards both colleagues to strengthen its culture of to their health, safety, and the Training courses that were repackaged into the pandemic. Every home has been and customers, commended Mr. Arce’s safety. environment—as well as to virtual activities included those using the affected in one form or another, but in honesty which set a good example in an Later in 2020, “I am Respect the health and safety of those Microsoft Teams platform. Supplementing spite of difficulties, the Filipino spirit especially difficult time. 100” highlighted 263 CMSA around them. These colleagues such learning opportunities were work-related of bayanihan (a group or community Additionally, heroism also radiated employees who had shown had been complying with the and health and safety information collaterals, coming together to help one another hope when several members of the commitment to health and 12 safety rules and hygiene achieve a common goal) and kindness Facilities and General Services staff including those delivered electronically, such safety—their own as well as measures that had been during adversity give glimmers of hope. of MICT rescued two children who that of their colleagues—and implemented since March. As as the MICT's email bulletin, “Sama-sama, One such example is Jerwin Arce, a got trapped inside a manhole. The fast and decisive action of Rolando also to the environment. These such, the inculcation of these Kayang-kaya” (with COVID-19 situationers and Prime Mover Operator, whose honesty management and leadership of MICT, Somera, Umar Ibardolaza, Mario workers have complied with values directly impacts not shone through when he surrendered led by Anders Dommestrup, MICT Sinadjan, Renie Solis, Leo Moreno, the 12 safety rules and hygiene only the cited workers, but also a missing wallet containing cash and Executive Director and Chief Executive Vergelio Arenas, Roderic Pines, Gerard measures that had been benefits their work companions, identification cards to the MICT Safety Officer, and Thomas Goodwin, MICT Baduya, Anjoy Pauya, Deflin Pomarca, implemented at the terminal and ultimately redounds to the Department. The wallet was returned Engineering Director led a simple and Jorge Cudiamat. ■ beginning in March. welfare of the port’s customers to owner Glien Tomacles, a truck ceremony to honor and commend the and other users as well. ■
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also help elevate standards (such as those for We have also increasingly invested in training safe workplaces and employee benefits) in our in sustainability concerns: social responsibility, concessions—we welcome opportunities such environmental protection, energy efficiency, as being the first PNG operator to sign, through pollution control, waste management, and ICTSI South Pacific, of the Industrial Agreement environmental culture. for Stevedoring and Handling Workers and Other Support Services Employees with the A little less than half of the terminals in PNG Maritime Union and Employees Federation. review have run training courses on social Moreover, we have made sure to institutionalize responsibility during the last three years. such vital policies as the Code of Conduct However, it must be noted that all of the Policy and the Grievance Policy in these currently-operational terminals in the entire PNG operations. ICTSI Group, even those not covered in this report, do have corporate social responsibility While HSE Trainings are such a crucial part programs in their host communities. of our employees’ L&D—given our context of port operations, where quayside and container On the other hand, thirteen of the covered yard tasks involve a variety of cargo handling terminals conducted training on environmental equipment and transport vehicles—we do have protection or energy efficiency achieved over a wide array of non-EHS learning opportunities. the last three years. Leading the way in this And, depending on their operational and local regard is CGSA, which spotlighted Ecuador on needs, the majority of our terminals have the the environmental map when the port became capacity to expand their L&D curricula to Latin America’s first to receive carbon neutral include relevant terminal-specific topics. certification for ground logistics and carbon neutral certification for the port terminal. For instance, VICT, as Australia’s first CGSA holds trainings in, among others, fully automated container terminal, offers environmental standards, waste management, Tackling chronic conditions, comprehensive computer skills courses, and and carbon footprint. an extensive syllabus of Automated Plant boosting immunity Operations Training modules (encompassing Board Members and Senior Management What it’s all about. those with vision issues received with good nutrition, healthy hardware and software operations, received risk management training annually or Prioritizing employees’ free prescription glasses (with lifestyles, and adherence to proper maintenance, inspections, and more). monthly over the last year. On the other hand, safety, health, and anti-glare, UV, and blue light health protocols at work—can help given the accelerated drive towards digitalization, overall wellbeing, the protection) along with advice on protect employees from COVID-19. In Poland, BCT has training programs relating employees received on average two hours of MICT Health and Wellness Team the eyeglasses’ proper usage. to the ISPS Code, ISO 9001:2015 Quality cybersecurity training in 2020, with the notable promoted disease management Monthly supplies of Vitamin C Who benefits. With the trial Management System, ISO 14001:2015 exception of BCT, which provided five hours. and prevention in 2020, with its were also given to rank-and-file run’s success, the company has Environmental Management System, ISO program covering hypertension employees. decided to expand the activities 22000:2005 Food Safety Management System, Pre-pandemic, we had already been equipping and diabetes, free eye to encourage more participants. examinations and prescription Why it matters. With hypertension The MICT Health and Wellness ISO 50001:2011 Energy Management System, our employees worldwide with much-needed IT glasses, and free monthly supplies and diabetes tending to surface Team aims to assist all employees and ISO/IEC27001: Information Security skills and training; with the contagion ushering of Vitamin C. during the ageing process, the with these conditions, and to Management Systems. big shifts in the work setting, this has proven to The pilot run of the Company is taking care of loyal establish a parallel program (with be more crucial than ever. ■ Hypertension and Diabetic employees by helping them monitoring, medical advice, and Program for MICT employees manage these via free monitoring free medications) for those with served volunteers who had and medications. gouty arthritis and osteoarthritis. hypertension or diabetes, or both. Healthy vision, on the other The emphasis on eye care They underwent screening, were hand, is crucial regardless of the benefits our rank-and-file monitored regularly, and received workplace context especially employees ranging from office- free health lessons along with free as an employee ages further— based employees doing desk weekly maintenance medications. whether primarily involving paper work, to engineers and other To promote healthy vision work, detailed engineering tasks, technical staff, and yard operators among rank-and-file employees, or dock work. in environments with multiple port our MICT Health and Wellness On the other hand, Dr. users and moving equipment or Team also launched the “Libreng Raymund Joseph Airoso, MICT vehicles involved. ■ Salamin” Program. Employees Health and Wellness Manager, underwent free eye checkups; stresses that Vitamin C—combined
98 99 ICTSI SUSTAINABILITY REPORT 2020 05 CUSTOMERS
Context & Commitments
We are committed to leveraging digital transformation to offer our customers the same uncompromising standards of service—in efficiency and security— whether in landside or quayside performance, or online; in normal day-to-day transactions, or even in challenging times.
In prioritizing our customers’ welfare and safety, we continually evaluate, enhance, and evolve the way we do business.
We continually develop high-performing, future-ready ports: responsive to customers, geared for growth, and resilient in challenges.
100 101 ICTSI SUSTAINABILITY REPORT 2020 Customers
Keeping the gold standard in customer satisfaction: all the time, in digital real-time Groundwork Our uncompromising standards of customer service drove us to leverage M In 2020, we implemented protocols for safe, secured, and hygienic port premises digital transformation—within the organization, across various areas (aligned with our omnibus guide, “Practices for a Safe Workplace,” and our health and of operations, and across our terminals—to radically elevate the level of safety goal of preventing accidents as well as disease transmission among customers in our ports). efficiency and ease we could offer. M Enabling safe, and efficient operations wherever possible, several terminals posted digital firsts: in Manila, MICT migrated users to 100 percent adoption of the Advanced Customer Transaction System; BGT launched the Iraqi port industry’s first mobile app Equally uncompromising is our stand on prioritizing our customers’ welfare with a one-tap container tracking service; in Pakistan, PICT partnered with Standard and safety. In this, too, digital transformation is a key plank, as the global Chartered bank on a pioneering virtual accounts system. health crisis underscored. M At our newest concession in Cameroon, KMT, we implemented the Logstar®Terminal Operating System (TOS), a major step in developing its infrastructure and superstructure, as the cloud-based TOS solution will facilitate efficiency.
Acceleration of digitalization opportunities to collaborate effectively with of services government partners and regulatory agencies. 100% online Gains Together, with our public-private sector payments Prior to 2020, we already had ongoing digital synergy, we could offer even greater ease of at MICT M We exerted all efforts to avert port shutdowns, keeping all our terminals open 24/7 transformation initiatives--for the organization and business, and cost reductions for customers, Face-to- amidst global logistical disruptions, while remaining compliant with government-set our employees, in various areas of operations, while simultaneously prioritizing public face quarantine and inspection requirements. and most especially, to keep fine-tuning and health and safety. M transac- We welcomed the opening of new routes to service; equipment and facilities upgrades streamlining the way our customers could tions are supporting projected growth; and new service efficiency and productivity milestones. successfully accomplish their port transactions. Just as crucially, we exerted all efforts to avert now a thing of the M New opportunities emerged to respond to our customers’ needs. For instance, port shutdowns, keeping all our ports open past with the full CGSA, the largest multi-purpose terminal in the world’s largest banana exporting port in However, as the contagion began to spread in 24/7 amidst global logistical disruptions, while adoption of Ecuador, offered 10-day free storage to help exporters cope with the crisis. 2020, we worked doubly hard to further ramp remaining compliant with government-set Advanced Customer up systems swiftly across our terminals, pushing quarantining and inspection requirements. Transaction System (ACTS), a 24/7 even more safe, efficient, and contactess e-payment solution operations in key areas. (See related story Our MICT story presents one case where in place as early as Moving forward on “Putting customers first via digital firsts”.) our agility and tenacity drove us to keep the 2016—making These transformative initiatives brought new Philippines’ largest and busiest port operating settling port charges M We signed on to connect 31 terminals to the TradeLens platform, the blockchain much easier, faster, platform jointly developed by IBM and Maersk. Upon full implementation, this will enable and safer. ICTSI clients to get faster and more granular information from the terminals. M In Poland, BCT joined the EU-backed “Enhancing Coordination in multimodal freight transport in Central Europe” (COMODALCE) project, a pilot project which will integrate BCT into the INCOS element of the Gdynia Port Community System and its modern electronic format. M Our new multi-site architecture-based website platform conveniently creates multilingual websites, empowering us further to cater to our customers in 19 countries across the globe. At the same time, we will continue reinforcing our existing and new robust cybersecurity measures to protect our supply chains, services, and customers’ data.
102 103 ICTSI SUSTAINABILITY REPORT 2020 Customers
Putting customers first via digital firsts 24/7 even as hard lockdowns (rightly Linkages on a far more extensive scope for implemented by government based on the initial the ICTSI Group were on our horizon as well. Amid the global PICT rolled out the first ever impact of the public health crisis) led us to effect We embarked on a major initiative as we health crisis, we virtual accounts system in the a raft of short-term operational changes. We decided to connect our 32 terminals to the continued to prioritize country’s container terminal found ways to process customers’ containers TradeLens blockchain network to gain access to customers’ needs industry. The digital solution, offsite, online—without requiring them to come accurate information on cargo movements for and welfare—efficient launched in partnership with and easy Standard Chartered bank, to the terminal. streamlined planning and operations. transactions, allows clients to safely and personal safety, data security— seamlessly conduct commercial Part of our continuing groundwork is to ensure In 2020, we also unveiled our new multi-site as we rolled out digital transactions in the comfort that newly-onboarded terminals—such as our architecture-based and scalable website innovations. A number of these of their homes. The platform most recent concession in Cameroon, KMT— platform. Designed to conveniently create were the actual firsts in their automates the payment and would be developed in terms of infrastructure multilingual websites, the new platform location or region. collection processes from and superstructure, based on our Company’s empowers us further to cater to our customers multiple channels, granting the MICT Company better control while standards and guided by our Group-wide best in 19 countries across the globe. MICT (Philippines). has fully transitioned its reducing credit risks. practices. Thus, at KMT, we implemented the customers to the Advanced Logstar®Terminal Operating System (TOS), Customer Transaction System TSSA (Brazil). Tecon Suape a major step towards building the terminal’s Safety and health protocols (ACTS), making face-to-face launched a mobile app to capacity to deliver world-class service, essential for customers transactions a thing of the provide customers and end to developing the port’s infrastructure and past. MICT customers can users with improved overall superstructure. All terminals have put in place policies now file applications, submit experience through the app’s requirements, and pay digital value-added features. ICTSI taps TradeLens and practices to safeguard the welfare of corresponding fees online The first phase development The cloud-based TOS solution will facilitate employees, customers, and contractors’ through the new MICT website of the app focuses on Blockchain network for efficiency as KMT gears up to handle clients’ personnel. These policies comply with (www.mict.com.ph). establishing seamless requirements: ro-ro project and heavy lift pertinent laws and international standards on communication with truckers streamlined services cargoes, oil and gas industry requirements, and occupational hazards management in every BGT (Iraq). BGT launched its with the aim of streamlining forestry and steel products, among others. country where the Company operates. mobile app to provide users and monitoring container What it’s all about. With the use of blockchain with a one-tap container delivery and collection at the ICTSI has decided to technology, processing time of tracking service. The app—a terminal, eliminating the use of In Europe, our BCT terminal in Poland, joined In light of the health crisis, we released our connect its 32 traditional paper documents is first in the Iraqi port industry— paper, and facilitating self- terminals across the reduced, making it faster and the EU-backed “Enhancing Coordination in Group-wide omnibus guidance, “Practices for provides users with real-time management for drivers. globe to the TradeLens easier to issue bills of lading Multimodal Freight Transport in Central Europe” a Safe Workplace,” establishing the framework updates on containers and platform, a blockchain network for cargo, sanitary certificates, (COMODALCE) project. for ensuring the safety of our stakeholders, their life cycles inside BGT, CGSA (Ecuador). Contecon developed by IBM and Maersk, invoices for payment, and other including customers and other port users. vessel schedules, and berth Guayaquil has successfully to access accurate information types of documentation. BCT’s market reach via rail includes all major information; and allows them to deployed their CRM and on cargo movements for destinations in Poland and extends along the We further strengthened our health and safety request online invoices. digital invoicing system. This efficient planning and Who benefits. With this new CRM tool can map out sales increasingly important trans-European Baltic – protocols last year by implementing measures operations. partnership, ICTSI clients PICT (Pakistan). Staying and marketing initiatives and Tracking of containers could get faster and more Adriatic Corridor (Corridor VI). This runs from that mitigate and avert the transmission of the committed to its goal of activities, and connect them to through the networked granular information from Gdynia via southern Poland (Upper Silesia), coronavirus. For example, CMSA canceled visits becoming the terminal of real-time performance of their exchange of data enables terminals, empowering them Vienna and Bratislava and the Eastern Alpine to the terminal and instead provided a virtual choice at the Port of Karachi, customers at the terminal. ■ efficient asset planning for all to better manage a critical region right through to Northern Italy, serving version of the port tour. entities involved utilizing data phase of the container journey. diverse industrialized centers en route. in near real time to create From container discharge The Group allocates financial resources to end-to-end data visibility. information, to gate in empty details, having a single source COMODALCE traces its origins in the “Docks implement these safety and health policies. Why it matters. The TradeLens of visibility for container of the Future” scheme, funded under the platform does not only enable movements directly improves EU’s Horizon 2020 Research and Innovation As of 2020, the majority of our terminals carriers and cargo owners efficiencies throughout Programme, with its main thrust aimed at have existing safety and health programs to exchange transactional the planning and invoice achieving the digitalisation of the procedures and regulations that extended to customers. information in real time but reconciliation cycles. ■ for rail transport at a transnational level in These are being evaluated regularly through also sends associated trade Central Europe. internal and external audits, observations, documents to permissioned parties. and inspections. (In OPC, for instance, the The COMODALCE pilot project will integrate Integrated Management System or IMS is BCT into the INCOS element of the Gdynia evaluated through monthly reporting and Port Community System and its modern KPI monitoring.) electronic format.
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CGSA extends 10-day free storage to help exporters cope with COVID-19 impact Commitments stated in the IMS policy are for reporting on the health and safety status of services. The procedure involves a risk What it’s all about. workers and port users and
the basis for organizational and departmental of their respective operations. These point matrix covering hazard assessment, risk Located in Ecuador’s to ensure the continuity of its objectives which are monitored monthly, with persons could come from Operations, Customer assessment, and control. preferred port of call, operations. action plans implemented for missed targets, Relations, and HSE. in Guayaquil, CGSA The Company remains and follow-up reviews done as well. offered exporters with 10 days steadfast in its commitment Customer engagement of free storage to reduce the to ensure the unhampered economic impact of the health movement of trade across the Providing avenues and satisfaction crisis on the country’s supply chain. Target: safe ports for all for feedback production and manufacturing Across our operations, we strive to sustain sectors. Latest among other initiatives. Group-wide, we continue striving to maintain a Aside from implementing stringent health healthy engagement with customers through The 115.4-hectare CGSA, the CGSA, which has an annual zero-injury environment for our workers, clients, and safety measures, several ports in our policies that include regular customer largest multi-purpose terminal capacity of 1.4 million TEUs and partners. Considering the pandemic, we Group have established a sound grievance satisfaction surveys, periodic internal quality within the world’s largest and nine berths equivalent to have additionally aimed to achieve virus-free system to ensure immediate resolution of audits, e-mail interactions, and online banana exporting port, offered a length of 1,627 meters, is free storage from March 19 to currently expanding its port operations to ensure the health and safety of customers' complaints. meetings, among others. May 16, allowing its customers and approach channel to concerned stakeholders. to reduce their costs and service new Panamax class Most of our terminals have a specific team or For instance, CGSA has an annual customer mitigate pandemic-related vessels. Our terminals have allocated additional person overseeing the grievance system; these service survey, for which it got a 93 percent losses. On top of this, CGSA is funds for their respective COVID-19-related point persons could range from a commercial satisfaction rating from the last survey constructing a USD 1 billion responses. These include: information drives, team or safety committee to terminal manager. conducted in December. On the other hand, Why it matters. In light of the highway with port access road provision of foot baths and other disinfectants, Communication lines of ICTSI terminals are MICT has a dedicated Customer Experience current health emergency to further take advantage of its situation, CGSA has and proximity to the country’s main purchase of thermal gun scanners, and always open to accommodate complaints and team that is in constant communication with continues to implement export zones and accessibility provision of PPEs. To support public and private grievances from customers. customers through calls and emails. all necessary measures to to Quito, the capital. ■ sector health efforts, PICT, for its part, waived safeguard the welfare of its associated charges on the import of COVID-19 The majority of our terminals assess health The policies in place are approved and signed off related supplies to facilitate the entry of and safety impacts on customers, along with by the Company’s top executives. Furthermore, such vital goods. assessment of improvements in their respective the majority of terminals are certified for their tracking turnaround time and invoice processing port services: container stripping and stuffing, quality management system (ISO) such as time, and setting of key performance indicators Group-wide, KPIs are reviewed annually, cargo storage, inspection, weighing, reefers, TSSA, OPC, BCT, BGT, MICTSL, DIPSSCOR and such as productivity and availability of and internal audits and monitoring by Global roll-on/roll-off, and anchorage. SCIPSI, which undergo annual audits to evaluate support services. Corporate are conducted to determine if the compliance with standards. zero-injury goal has been achieved. Most of MICT, as the flagship terminal, has in place a Furthermore, the majority of the terminals our terminals have a point person responsible risk management procedure to such impacts The majority of the terminals have made engage customer groups which include commitments related to ensuring customer foreign or domestic shipping lines, importers, engagement and satisfaction in their exporters, brokers, forwarders, transporters, operations as part of statutory and regulatory relevant governmental authorities, and Updating our clients on health and safety, compliance, international standard, widely impacted communities. The majority of the recognized initiative and applicable company terminals have a focal person or team to and assisting our partners policies on HSSE. oversee customer satisfaction and engagement programs and policies. Group-wide, ICTSI has hardest hit by logistical disruptions The commitments are being evaluated through employed different health created by COVID-19. management reviews, customer satisfaction and safety protocols to surveys, and internal and external audits. Responsible data stewardship ensure the welfare of its Zambales, Philippines. SBITC workers and clients against held webinars for its valued clients various risks due to the last May 27 and June 17 on how In line with this, the majority of the terminals We continue to invest in stringent data COVID-19 health crisis. businesses can establish and adopt are committed to developing and implementing stewardship policies and programs to ensure a comprehensive business continuity action plans that help obtain positive results in that customers’ data are kept private and Metro Manila, Philippines. plan to manage risks and recover terms of customer satisfaction and engagement. secured. Policies and practices implemented by At the height of the from disruptions (such as the ongoing is currently working on a system most of our terminals are approved in compliance lockdowns in Manila, health crisis). As more companies that would provide customers with Goals and targets are set to ensure customer with applicable laws on protection of personal the MICT Commercial and Risk transition to digital service channels, electronic gate passes and official satisfaction through: continuous checking up on data, or with Group-wide global initiatives. An Management team has extended food webinars serve as a perfect tool receipts to minimize physical customers, web-based questionnaire survey of example of the latter would be MICT, which has a aid and other supplies to support to keep clients engaged and up to interaction. ■ cargo owners, brokers, truckers and date with the latest developments customer satisfaction, regular engagement with Privacy Impact Assessment through Group-wide their families who were among the at the terminal. In addition, SBITC customers to understand their requirements, global initiatives.
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VICT, OOCL set history with single highest container exchange
What it’s all about. In record at the Port of Melbourne such as that of OPC. In the absence of a Melbourne, VICT and in what has been a challenging mandatory data protection law in Honduras, OPC OOCL Rotterdam set year especially for Victoria adopted ICTSI's Global IT policy which already a new benchmark for dealing with the pandemic. has high security standards, with restrictions on the highest container The exchange highlights the the use and downloading of information. exchange in Australia need for larger vessels and at a total of 6,516 increasing handling capacity,” containers equivalent to Tim Vancampen, VICT Chief Aside from financial resources being invested 11,037 TEUs. Executive Officer, said. to ensure security of data, the majority of VICT, which is Australia’s “At the same time, it poses the terminals ensure that point persons are first fully automated container new challenges for landside assigned to monitor the security of operations. terminal, received the call of logistics that need to deal A point person would normally come from the OCCL Rotterdam on the North with these increasing peak Customer Service team, or be the HR Director, East Asia A3 Central Service last volumes. In order to address IT or IT Head Officer, or Data Protection Officer. November 20 and completed those concerns, VICT offers a the record-exchange in 90 hours full 7 days 24-hour coverage In some of the terminals, all parties who have with 72.4 berth moves per hour. for receipt and delivery,” access to customer data (Commercial / IT/ HR Vancampen added. ■ / Finance and Operations) are considered as Why it matters. “VICT is responsible point persons to ensure customers’ honored to achieve another data are protected.
Some of the terminals have put in place a The majority of the terminals’ commitments in grievance mechanism to immediately hear and complying with regulatory requirements and resolve customers’ clients regarding possible widely-recognized initiatives are evaluated breaches of data security. through feedback, complaints, external auditors, policy changes, and internal audits to ensure the policy is still relevant and covers all aspects. Sustained expansion for future-ready ports TSSA, on the other hand, deployed the Information Security Standard, and awareness The pandemic did not deter us from our Marking milestones in service Record turnaround times training is promoted to preserve the integrity, commitment to provide customers with confidentiality, and availability of information and top-notch services for current needs. We also CMSA (Mexico) volumes from other markets such VICT (Australia)
computer systems. sustained our ongoing expansion of capacities • CMSA handles its year-to- as Austria, the Czech Republic, and • In September, VICT set a record date one millionth TEU during Slovakia. anew when it received the highest TEU at selected ports, to support our customers’ the call of CMA CGM Jacques exchange in a single call with the docking projected growth. Joseph. BGT (Iraq) of CMA CGM Ural at a capacity of 8,094 Zero tolerance for • In August 2020, BGT celebrated TEUs. The terminal was able to break its security breaches Group-wide, ICTSI continued to facilitate AGCT (Croatia) its 400th roll-on, roll-off/multipurpose own record in November for the highest new service routes and shipping lines to help • AGCT also hit a new record for rail vessel handling with the docking of container exchange in one single call: The majority of our terminals have set a goal of clients and countries boost their trade amid volume in October, achieving a 47 the Global Mermaid at the terminal. a total of 6,516 containers equating to percent rail share and a 30 percent zero data breaches in compliance with regulatory the economic challenges brought about by To date, BGT has handled more than 11,037 TEUs. VICT serviced the 8,063 year-to-date increase in rail volume 1.5 million freight tons of cargo. These TEU capacity OOCL Rotterdam on the laws as well as internal initiatives to maintain the pandemic. ■ over the previous year. The numbers include heavy lifts with pieces weighing North East Asia A3 Central Service. The customers’ trust and confidence. In 2020, we confirm the growing importance of up to 350 tons; 350,000 pipes whose record exchange was completed in 90 are proud to report that we have received zero AGCT as a gateway for Central and combined length of 4,200 kilometers is hours with 72.4 berth moves per hour. substantiated complaints concerning breaches Southeast Europe, with 70 percent of the distance from Umm Qasr to Paris; of customer privacy, identified leaks, thefts, or current overall volume coming from and 100,000 vehicles. ■ BGT (Iraq) loss of customer data from any outside parties or outside Croatia. Hungary and Serbia • BGT set a record turnaround after remain key markets, with growing servicing the 6,589-TEU Yang Ming regulatory bodies.. Mutuality. BGT recorded a total of 1,768 moves on the Mutuality in 17.5 hours, We ensure that every employee is aware of and achieving a record berth productivity of observes our policy of zero tolerance for data 101 moves per hour. ■ breach, with discussions about privacy policy being embedded in the new-hire orientation program. This is especially helpful in situations
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In breakthrough speed, MICT averts shutdown, keeps trade afloat amid pandemic Enhancing client relationships What it's all about. The flow of trade in the country, while System (ACTS)—achieving 100% online Philippines' largest and protecting its employees, customers transactions by the first week of October. BGT (Iraq) busiest container terminal, and port stakeholders against an The transition to digital transactions BGT met with main the MICT, averted a possible invisible enemy: encouraging owners ensured the health and safety of workers • non-vessel operating common shutdown in 2020. to pull-out their containers; migrating and customers, as it would drastically cut carrier partners and feeder MICT, which handles all payment transactions to online; and foot traffic at the port. operators last 14 February. The meeting close to 3.3 million TEUs of forging stronger collaboration with MICT had actually launched the focused on closing market gaps between cargo annually, saw its yard the government to ensure a healthy system as early as 2016, but at the time India and Iraq by establishing direct utilization reaching nearly business environment. of the pandemic's onset, only less than contact with end customers, and by 100 percent by end-March, ICTSI swiftly coordinated with 10 percent of transactions at MICT were providing them with system tools for about two weeks after the relevant government agencies in being done through the digital platform. improved transparency and control government has imposed the transferring containers from MICT to shipments. Luzon-wide lockdown to curb subsidiaries NorthPort, LGICT, CGT and Why it matters. Serving as the Expanding network BGT participated at the annual COVID-19's spread. auxiliary yards in Bulacan to decongest Philippines' main hub for containerized • Breakbulk Middle East trade conference Despite Manila ports running the key trade hub. Furthermore, it also cargo trade, any shutdown of the connectivity for the third straight year. The meeting 24/7, the strict quarantine and worked with concerned government MICT would have spelled disaster for was attended by government ministries; health measures made it difficult for agencies to move out unclaimed and idle the country's economic activity at the MICT (Philippines) TECPLATA (Argentina) manufacturers; private sector oil and gas businesses to operate, thus, impacting containers at the MICT. The Company height of the contagion—and seriously MCT ended the year TecPlata continues to lead the way companies; Engineering, Procurement, the supply chain and flow of goods. also worked towards a more permanent hampered the health sector's efforts, • • strong with the launch of for port services as it started receiving and Construction (EPC) and project Import containers remain unclaimed solution to ensure that MICT would be given the required influx of PPEs and Regional Container Line’s imports from the Far East with the first cargo owners; and, other industry and piled up at the port—many of them at a normalcy level to ensure sustained other medical supplies through the port. (RCL) South Philippines shipment from China through the new decision makers. BGT Chief Executive containing time-critical supplies needed operations amid the uncertainties Dubbed as the "lungs" of the 6 service that connects Far East service provided by Evergreen Officer Phillip Marsham said the company to fight the pandemic. brought about by the pandemic. country’s commerce and trade, MICT the Visayas and Mindanao Marine Corp. The shipment, containing benefited from informed discussions Upon achievement of normalcy by handles 65 percent of Manila's foreign regions to Asia and the Middle East via auto parts from Ningbo, China, was provided by industry leaders, and existing How it was resolved. Without signs the middle of April, ICTSI strengthened container traffic annually—serving the Singapore. Launched in the Philippines carried by Di Gilio Hnos de Ensenada. and potential customers attending the that the lockdowns would ease sooner its campaign to transition all customers immediate hinterland of the National through RCL’s Southern Philippine conference. or later, ICTSI quickly rose to the to use cashless payments through Capital Region/Metro Manila: a agent Eagle Express Lines, the MITL / SPICTL (Papua New Guinea) challenge to ensure the unhampered the Advanced Customer Transaction megacity of 13 million people. ■ fixed-day weekly service made its first • ICTSI PNG terminals welcomes the YICT (China) port call to MCT on December 19 with arrival of Hansa Cloppenburg, the first • ICTSI was back in Shanghai as an the 628-TEU Pira Bhum. COSCO-operated container vessel to exhibitor for the China International call Papua New Guinea. The 1,732- Import Expo 2020 held from 5 to 10 Expanding facilities and YICTL (China) TEU boxship made its maiden calls to November. ICTSI delegation welcomed upgrading equipment • YICTL increased its total number SPICTL and MITL on October 8 and 11, Yantai Port Group President Mr. Jiang of feeder service calls to Port of respectively. Kai to the booth during the first day of MICT (Philippines). In keeping with its Qingdao to five per week after it • SPICTL welcomed the first PNG port the event. ICTSI has been in China since stature as one the world’s best, ICTSI welcomed China Master Logistics’ new call of Swire Shipping’s upgraded North 2007 operating YICTL, which handles completed the MICT’s Berth 7 expansion Qingdao-Yantai Feeder Service last 28 Asia Express Service on November 22. all international trade cargo at the Yantai last December, effectively raising the port’s August. The new service offers value The fixed-day fortnightly service offers Port Zhifu Bay area. annual capacity to over 3.3 million TEUs. to exporters who stand to reduce their a direct connection between North MICT likewise received eight new hybrid logistics cost, amid the COVID-19 Asia, PNG and Australia through the MICT (Philippines) RTGs as ICTSI looks to utilize health crisis, by utilizing lower cost ports of Shanghai, Ningbo, Nansha, • As part of its ongoing engagement to environmentally sustainable technology at its feeder services instead of relying on Hong Kong SAR, Lae, Port Moresby, customers and other port stakeholders, flagship hub. long-distance land transportation. and Townsville. the MICT Commercial and and Risk Management Department discussed the MCT (Philippines). MCT expanded its port equipment TSSA (Brazil) PICT (Pakistan) Digital and Technological Transformation fleet, extended the berth length through the installation TSSA welcomed in 2020 the Two new services, the China India being done at the Manila flagship during of an inland bollard and dolphin moor, and opened a • • inaugural call of the Northeast Express West Coast X-Press and the Karachi the "Challenges and Future Opportunities 4.5-hectare empty container depot inside the terminal. Connection (NEXCO) cabotage service Jebel Ali Shuttle Service, started calling for Ports and Shipping in the Philippines" With these investments, MCT projects a seven percent that connects the southeast and PICT in November. PICT welcomed the forum last 19 November. ■ growth in 2021—a highly significant target considering northeast regions of Brazil. NEXCO is inaugural call of the newly introduced the global economy is still recovering from the the third and latest cabotage service CWX service led by Xpress Feeders, pandemic. of Mercosur Line, a member of the KMTC, and T.S. Lines with the maiden CMA CGM Group. TSSA's inclusion in call of Barbara, which has an LOA of BICT (Georgia). BICT continues to expand its gate and stripping productivity and cargo delivery efficiency NEXCO’s service rotation contributes 294 meters and capacity of 5,470 to cater to more clients after acquiring a reach to the growth and development TEUs. ■ stacker and two forklifts, bringing its total equipment of the Port of Suape, the State of Pernambuco, and the entire northeast inventory to five reach stackers and 10 forklifts ■ region of the country.
110 111 ICTSI SUSTAINABILITY REPORT 2020 06 SOCIETY
Context & Commitments We are committed, hand in hand with our social responsibility arm the ICTSI Foundation, to implement programs and projects aimed to protect and assist our respective stakeholders and host communities, and the society in general, by contributing to the initiatives of our partner governments—all anchored on our deep-rooted culture of compassion and sharing.
Initially focused on three major programs (Education, Sports and Community Welfare), we broadened our social development horizons to impact society at large by streamlining our thrusts into three new program pillars: Youth Development, Environment Protection, and Host Community Welfare.
Moreover, given the ongoing health crisis, we have realigned our focus to include helping societies cope with and recover from the pandemic, while continuously contributing to the global effort towards the UN SDGs.
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Uplifting the vital and the vulnerable Groundwork For us at ICTSI, sustainability goes beyond ensuring business resilience: M All terminals in review actively aided their respective communities, whether based on it encompasses contributing to the safety and strength of our people, our social responsibility thrusts or via pandemic-related assistance. customers, stakeholders, and our host communities. Under the M BICT joined other private entities to support the construction of the new Maritime Teaching and Training Center in Poti, Georgia; BICT also funded a dinner that benefited larger vision of Good Global Citizenship, our work to effect change in 2,000 of the vulnerable (including old and displaced people, and widows). On the other communities and to support youth development runs along three tracks: hand, ICTSI Rio Brasil, apart from its initiatives supporting culture, education, and via initiatives of ICTSI Head Office or Global Corporate, the terminals, and environmental awareness, also extended relief assistance to its host communities. the ICTSI Foundation. M MITL spearheaded water projects to make clean potable water available for the residents of their respective communities. Since the ICTSI Foundation began in 2010, it has evolved from being the Company’s CSR arm in the Philippines. Addressing economic, social, and Gains environmental concerns within a sustainable development framework, the Foundation broadened its horizons to cover the ports’ hinterland M All the terminals in ICTSI’s portfolio have pitched in to help our communities fight communities, and also society at large. Along with having three new COVID-19. Contributing approximately USD 9.5 million (to national and local government program pillars—Youth Development, Environment Protection, and Host 100% PERCENTAGE OF ICTSI agencies, immediate communities, employees, and port stakeholders), the terminals seek Community Welfare—our Foundation has also grown to align itself more to support their host countries’ health infrastructure, and aid vulnerable impacted families. TERMINALS WITH CSR M As a member of the Philippine Disaster Resilience Foundation, ICTSI responded closely with, and to thus actively uphold, the UN SDGs, specifically INVOLVEMENTS WITH early—donating PHP 100 million—to the call for business sector collaboration for Project in the areas of education, environment, child welfare, health, and THE HOST COMMUNITIES Ugnayan. The project distributed financial aid to economically vulnerable families humanitarian assistance. AND OTHER SUPPORTED (eventually reaching 1.5 million families or 7.5 million individuals) affected by the SECTORS lockdown in Metro Manila and neighboring provinces. M We ensured that aid was given to communities affected by natural calamities in our host and hinterland communities such as the Taal Volcano eruption, bushfires in Victoria, and typhoons in Mexico and the Philippines. M With the shift to remote learning, ICTSI provided additional assistance (i.e. laptops, wifi General mechanism for community relations connection) to young in- and out-of-school learners. M Despite the urgency of pandemic-related efforts, we gave equal importance to continually implementing and strengthening our existing social programs.
ICTSI Foundation Moving Forward CSR coordinators on 32 terminals M We continue our regular and ongoing programs and projects under our Foundation’s main thrusts. M Primarily through ICTSI Foundation, and secondarily through our terminals, we will continue to assist in COVID-19-related relief, response, and recovery efforts, in cooperation with government agencies, our partner institutions, and our host communities. M Given how sustainable development issues are becoming increasingly intertwined with mitigating climate change and impact, ICTSI, along with the Foundation, will continue to work harder in its promotion of environmental conservation and sustainable practices. M Our ICTSI Foundation continues to provide guidance to our subsidiary terminals as needed while facilitating ICTSI’s philanthropic initiatives thus optimizing the available CSR knowledge base and resources.
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ICTSI CONTRIBUTION TO FIGHT AGAINST COVID-19 Benefiting national and local governments, host communities, employees, partners, and other port 9.5 M stakeholders USD groceries and other critical supplies to truckers, and through our Foundation, please refer to the other stakeholders, and vulnerable sectors and Environment section of this report.) communities. Our efforts, particularly those of As we sustain our expansion across six the Foundation, complement ongoing initiatives For the year in review, 100 percent of our continents, our terminals (based on the across the entire Razon Group in tackling the terminals had local community engagements, example set by the Foundation) continue to pandemic, with various donations aimed at impact assessments, and development initiate, implement, or support third-party-led assisting the Philippines' health infrastructure in programs, many of which were ongoing programs and projects that directly benefit their fighting off the virus. long-term commitments, while some were host communities. recurring periodic initiatives. Moreover, we are pleased to note that even The rapid spread of COVID-19 and its global when our people, resources, and operations effects reinforced our resolve to help where were being challenged to the utmost by this Supporting IP communities we can. We realigned our social initiatives pandemic, we upheld two vital commitments: towards assisting our host economies’ health one, all of our currently-operational terminals As part of the global agenda for sustainable ICTSI Foundation distributes aid infrastructure in fighting the virus, and helping continued to actively involve and heavily invest development, ICTSI upholds and protects the for Aeta families societies cope and recover from the pandemic. in CSR work; and two, our global portfolio rights of IP groups and communities. Through ICTSI Foundation has been working with Project
We focused on assisting those bearing the pursued efficient port services to facilitate our ports and our Foundation, we have Liwanag (since 2018) in our joint mission to deeper brunt of the crisis’ economic and movement of critical goods from production continuously provided comprehensive programs continually champion the rights of IP social impacts, while striving to attain more points to consumer markets. The immediate offering an array of support mechanisms communities, specifically Aeta communities in sustainable and equitable future outcomes. two-fold objective was to make essential goods and resources to assist these communities, Tarlac province, in the Philippines’ Central Luzon available to the public, and to extend assistance specifically in the Philippines and in PNG. region. Project Liwanag is a non-profit organization devoted to empowering and Across our portfolio, ICTSI continuously to those hardest-hit by this pandemic. improving the quality of life of IP groups in the donated PPEs, ventilators, and test kits to As part of our concession agreement for our Philippines through sustainable projects that private and government healthcare facilities, (For details of our environment-related PNG terminals, ICTSI signed a pioneering address these communities’ lack of basic needs: disinfectants to healthcare workers, and initiatives within ICTSI, among our terminals, public-private-people partnership with the PNG light, water, education, and sustainable livelihood. Together with this government back in 2017, represented by the organization, the Foundation has previously funded the installation PNG Ports Corp. Ltd, and the communities of IP of community micro-grid solar electrification systems for two such landowners in Motukea and Lae (hosting the MITL Aeta communities in the municipality of Capas in Tarlac. In 2020, at the peak of the community lockdowns to mitigate the and SPICTL terminals) to establish a collaborative spread of COVID-19, ICTSI contributed to the fundraising project ICTSI 3 tracks for increasing impact partnership for the joint port projects, with IP "Ayuda para sa Aeta" by distributing aid to Aeta families in the landowners’ organizations becoming shareholders form of 1,600 food packs. Each food pack contained rice, canned Supporting selected in the ports. In terms of labor, workforce is goods, sugar, coffee, and vegetables good for two weeks, to causes and sectors sourced locally from these communities, while support the needs of these communities. ■ sustainable port programs are being conducted through the port’s operating companies and the Group’s social arm ICTSI Foundation. Head Office lobal Corp Over the past few years, a collaborative I G or Donation for the Aeta community TS at IC e framework for community service projects has been implemented together with other local 3 s groups, encompassing areas such as education, t Y
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INCIDENCES OF VIOLATIONS OF THE RIGHTS Securing free, prior and Health facilities purposely for COVID-19 response OF INDIGENOUS PEOPLE (IP), AS NOTED IN informed consent or management. 2019 AND 2020 We have consistently prioritized the health and Working with the Palawan-based welfare of our employees, customers, and other However, even as we provided these, we 0% Katala Foundation for the Green Heart port stakeholders. Over the years, whether continued to offer our support to parties of Palawan: Victoria-Anepaan Mountain through our terminals’ partnerships (with (groups, sectors, institutions) that cater to Range Wildlife Conservation Project, a national government agencies, local government non-COVID-19 health concerns. memorandum of agreement was signed serves five communities in Motukea; and helped units, host communities, and local non-profits) in 2020 with the Palawan Council for build the Malahang Community Police Station Sustainable Development (PCSD) to or through the initiatives and linkages of the COVID-19 health initiatives that serves six communities in Lae. secure Prior Informed Consent from ICTSI Foundation, we have invested in the public For our flagship’s host—the capital of the indigenous people-stakeholders who health sector, and supported health programs Philippines—we partnered with the City of In the Philippines, the ICTSI Foundation will be impacted and will benefit from and projects in our host communities as well as Manila, as we donated USD 104,000 through continues to touch the lives of indigenous the project. The free, prior and to benefit special-needs sectors. the ICTSI Foundation, to support the city’s peoples living within the hinterland of its ports, informed consent from these communities allows COVID-19 Response Program. Recognizing Katala, the ICTSI Foundation and PCSD to whose livelihoods and other sources of income In 2020, given the magnitude of the contagion, the importance of testing as one of the most negotiate the conditions under which the were disrupted with the pandemic. conservation project will be designed, and the severe burdens it has placed on health effective ways to control the contagion, we implemented, monitored and evaluated. (For more care systems worldwide, we invested just allocated part of the donation for the purchase For the year in review, zero incidents of information about this project, see the as heavily in COVID-related health efforts. of testing machines. We also provided 10 violations involving IP rights were noted. Environment section of this report). ■ These ranged from, among others, equipment thermal scanners that benefited low-income grants (such as PPEs and test kits), funding, communities in Manila, particularly in and assistance in redeveloping or creating Tondo and Binondo.
Health ICTSI South Pacific ramps up COVID-19 response PHP 5 MILLION PHP 1 MILLION 363 AETA LOCALS 50,000 FACE MASKS The COVID-19 outbreak is one of the most donation to the City of Manila donation to International of Sitios Itanglew, Pili, distributed to residents of for the purchase of COVID-19 Bazaar Foundation, Inc. Lawin, and Aglao, Barangay Parola and Isla Puting Bato to disruptive events in recent history, affecting testing machines to support their different San Rafael, San Marcelino, encourage the use of masks the global economy and the lives of charitable causes Zambales given medical/ during the early stages of the countless people worldwide. In PNG, dental/optical services pandemic SPICTL and MITL worked to assist their respective host communities affected by the pandemic. ICTSI's PNG terminals donated wash basins to schools in Lae, and in the Baruni and Tatana communities in Port Moresby, to encourage students 10 THERMAL SCANNERS 410 HOSPITAL WORKERS 30 MEDICAL PERSONNEL 40 FRONTLINERS to practice frequent hand washing and proper hygiene donated to MICT's host in Gat Andres Bonifacio from the Bauan Rural Health from Barangay San Cristobal, communities of Barangay 20 Memorial Medical Center and Unit given PPEs (goggles, suits, Calamba, Laguna. given as a first line of defense against COVID-19. The and 275 Villarosa Hospital given 60,000 face masks) and sanitation PPEs (goggles, suits, face Company also donated 12,000 PPEs and 125 rapid surgical gloves, 700 boxes of items masks), thermal scanners and test kits to Angau Memorial Hospital to support the KN95 masks, and 300 gallons sanitation items of alcohol to support their Morobe provincial health authority’s fight against the COVID-19 efforts virus. The PPEs would also be used by medical staff modems) helped ease the strain on the outstretched in handling patients of other infectious diseases like resources of the hospital by allowing doctors to Tuberculosis and HIV/AIDS. remotely monitor the Rita Flynn isolation facility Earlier in the year, the Company donated IT for COVID-19 patients instead of travelling to the equipment to Port Moresby General Hospital to facility to personally manage them. The technology CHILD DEVELOPMENT RURAL IMPROVEMENT support the latter’s handling of COVID-19 cases also enables local doctors to communicate with 36 CENTERS 12 CHILDREN CENTERS 15 CHILDREN 85 CHILDREN while promoting telemedicine. The IT equipment other doctors across the world to share critical afflicted with microcephaly afflicted with cerebral palsy given gift certificates and gift given gift certificates and gift grant (which consisted of monitors, computers, and ■ information. given handwashing basins, disinfecting foot baths, soap, and bags for their families as part bags for their families as part disinfectant solutions in Tagoloan, Misamis Oriental of the Christmas Outreach of the Christmas Outreach program program
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Combating the contagion, from port to port
Our various terminals, along The ICTSI Foundation, through the Philippine with the ICTSI Foundation, Honduras’ OPC at the Association of Social Workers, donated face united with our host masks and face shields to the Department communities in their respective forefront of initiatives of Social Welfare and Developmen – Manila battles against the contagion. Chapter to support the social workers who The diverse forms of against COVID-19 manned the front lines. The donation benefitted assistance all had the common more than 200 social workers who aided goal of swiftly placing the crisis under Contributing to the a safe facility for COVID-19 lockdown-impacted families and communities in control, preventing further transmissions, collective efforts of patients at the Puerto Cortés and helping those who are most likely to the National Capital Region. all sectors to fight Hospital, located in one of suffer from the socioeconomic fallout. COVID-19, OPC the hardest-hit areas. The
focused on providing safe facility includes a work Aside from that, ICTSI also provided thousands YICTL (China). In China, where the valuable equipment area for medical personnel, of face masks, surgical gloves, gallons of megacity of Wuhan was the first to and other resources and a recovery space with sanitation products (alcohol, sanitizers, be hit hard by the contagion, YICTL, to the frontliners and their two bathrooms and showers, disinfectants), and thousands of PPEs for our terminal located in the economic patients. 18 beds, stretchers, air medical frontliners in selected hospitals in powerhouse region of Shandong, In March, the company conditioners, oxygen tanks, worked with its employees to voluntarily collaborate with institutions that ensure MICTSL (Madagascar). In March, Manila, Batangas, Laguna, and General donated a symmetrical costal humidifiers, and pressure donate funds to the crisis-affected public health and safety. MICTSL donated face masks to 2,000 sprayer to the local chapter gauges. The group also Santos City. Local community residents in the communities. Overall, the terminal (with people and distributed 4,500 meals to of the Red Cross, for the allocated USD 100,000 and Parola and Isla Puting Bato areas in Tondo, its 200-plus employees) pitched in CMSA (Mexico). As part of the patients, in response to the emergence disinfection of ambulances converted an abandoned Manila were provided 50,000 washable face and turned over a total of USD 4,000 company’s initiative to boost the of coronavirus in the country. that leave and enter the health building inside the hospital masks; assistance was likewise extended specifically for helping Wuhan in its fight capacity of the Red Cross chapter in facility. This was followed grounds into a fully-equipped, to Parola Ecopatrols (our grassroots-based against the coronavirus. its area, CMSA donated USD 1,250 to MITL (Papua New Guinea). In August, in June with a donation of 18-bed recovery facility. partner-volunteers in previous community the organization to carry on its projects, Mr. Robert Maxwell, CEO of MITL, medical supplies to three Inaugurated in September, the As the largest port and the especially during the current pandemic. turned over 2,500 masks and 2,500 programs) and teachers in the area’s BGT (Iraq). hospitals in Honduras, facility has three individual primary gateway of Iraq, BGT remained CMSA commits to continuously support sanitizers to Mr. Iduhu Igo Erue, namely: Hospital of Puerto bathrooms—including one daycare centers. fully committed to provide its trademark the organization’s mission to respond to Chairman of Noho-Mage Holdings Ltd. Cortés, Hospital de Gracias, for persons with disabilities— 24/7 world-class service despite the emergencies and natural disasters. (representing the Tatana and Baruni and Hospital de Santa Rosa and oxygen supply for The Company’s assistance also covered restrictions, ensuring the uninterrupted communities of PNG) for distribution to de Copán. Each received approximately 200 patients community sanitation kits to help avoid the movement of cargo, while focused on LGICT and CGT (Philippines). LGICT the two communities. 66 boxes of N95 masks, with serious complications. spread of the virus: handwashing basins, three things: protecting the health and and CGT provided assistance to the 30 gallons of chlorine, The current health crisis disinfecting foot baths, soap, and disinfectant well-being of the staff, serving clients, residents of Barangay San Cristobal PICT (Pakistan). PICT continuously antibacterial gel, and soap for has only strengthened OPC’s and supporting the local community. in Calamba and Capipisa in Tanza, played a prominent role in making solution, all of which were turned over to the use by their medical staff. commitment to continue respectively. The assistance addressed pandemic health necessities readily Municipal Social Welfare and Development In August, OPC led a group helping safeguard the health BICT (Georgia). BICT donated to the the needs of those whose livelihoods available through its terminal service of various organizations in of the community in which it office of Tagoloan, Misamis Oriental. These #StopCov Fund, a coronavirus relief were impacted by the pandemic. operations, actively facilitating COVID-19 donating USD 70,000 for the operates. ■ items benefited 36 child development fund established by the Georgian related essential imports including renovation of two rooms as centers (with 1,345 learners and 36 daycare government, as a way of soliciting help MCT (Philippines). As a terminal that testing kits, face mask, gloves, sanitizers teachers) and 12 Rural Improvement Club from the private sectors in order to reinforces the country’s powerhouse and other indispensable items. Children’s Centers. tackle the outbreak and mitigate the agro-industrial sectors in Northern Additionally, as part of its Community expected economic fallout. Mindanao, MCT supported its local Care Program, PICT partnered with its community by providing food supplies local government to come up with ideas The next front: prevention BIPI (Philippines). The terminal donated and supporting the frontliners through to mitigate the risk of the contagion’s On the opposite side of the crisis response PPEs to Bauan Rural Health Unit 2 at the distribution of snacks. spread. They donated ration bags with spectrum, ICTSI is also focused on helping Barangay Aplaya, Bauan, Batangas basic food essentials to deserving prevent further transmission of the novel and donated sacks of rice for the MICT (Philippines). Actively aiding families of its port surrounding areas, coronavirus. Through the Foundation, we marginalized families in the community. patients infected with coronavirus, Gat helping them manage unprecedented are the lead private sector partner of the Andres Bonifacio Memorial Medical times of lockdown caused by the health CGSA (Ecuador). CGSA ratified an Center welcomed a donation of wooden crisis. Philippines’ efforts in securing the first 20 assistance and cooperation agreement pallets from MICT. The pallets were The terminal also wanted to million doses of the Moderna mRNA vaccine, with the Ecuadorian National Navy, and repurposed as floorings of the makeshift raise the morale of the country’s and part of the buying consortium for the first pledged to periodically allocate health isolation tents for suspected COVID-19 frontline healthcare professionals by 2.6 million doses of the Oxford-AstraZeneca supplies for the Navy to distribute to cases. The hospital, along with Villarosa paying tribute to their heroic efforts. vaccine. ICTSI sees this as a highly strategic hospitals (including the Guayaquil Hospital located in Quezon City also The honorary ceremony enhanced Naval Hospital) that are treating earlier received PPEs, including 50,000 motivation amongst the doctors to COVID-19 patients. The agreement is pieces of surgical gloves, 300 boxes of continue their efforts for society’s noble part of the Company’s commitment to KN95 face masks, and 150 gallons of cause with even more passion and alcohol. zeal. ■
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OPC invests in upgrading education facilities and equipment in Honduras step towards further and safer reopening of the Education One of OPC’s efforts towards education focused on
Supporting the health of country’s economy; the supplies are expected providing and upgrading facilities to give more children to arrive by 2021, benefiting more than a Education has been one of the core focus areas access to quality education and an environment women, the young, and million Filipinos. of our CSR, as we recognize how it provides conducive to learning and development. Among these people the skills they need to thrive, and how was the construction of a new facility at the Emanuel the far-flung Apart from securing vaccines for employees access to good education broadens not just Special School that was designed to cater to over 110 of the Razon Group and their dependents an individual’s opportunities but also builds up children with disabilities. OPC invested USD 660,000 for Infectious diseases education workshops among this, and despite the delay caused by the pandemic, construction (including other port and logistics frontliners community resilience and progress. other than COVID- adolescents to discuss and was completed in the second half of 2020. who are critical in ensuring the efficient and 19, along with the address their concerns about The terminal also donated over 40 desks to the Maria more common their sexual health. The event uninterrupted flow of critical goods needed ICTSI’s Education thrusts cover various areas Mazzarello School in San Pedro Sula, Cortes to help its students non-communicable also discussed relationships to fight the health crisis), we will be donating such as scholarship grants (along with other forms be more comfortable and facilitate better learning. ■ killer diseases such and becoming more part of the Company’s share to the Philippines’ of educational assistance to deserving youth), as cancer, continue responsible when it comes to Department of Health, with marginalized skills and livelihood training for out-of-school to quietly take their toll, making decisions that could populations and healthcare workers as youth and other sectors of selected communities, educational expenses: tuition, school supplies, partially obscured from public expose them to risky situations priority recipients. sponsored training and capacity-building uniforms, shoes), daily allowance for meals and attention because of the novel due to poor understanding and activities for teachers/teacher-trainors (coursed transportation, and other authorized schooling coronavirus. ICTSI recognizes peer pressure. the need to continue Non-COVID through the Foundation), and resource grants for fees. The International Scholarship Program addressing other health PICT (Pakistan). PICT Even as the world rightly invests in combating schools to help upgrade facilities and effect other provides funds and management for college concerns that pose a threat to collaborated with The Indus the contagion and preventing further deaths, necessary changes. scholars’ tuition, miscellaneous fees, books, human life. Ensuring that these Hospital to provide health care there are also millions more who may clothing, dormitory fees, and travel and meal health risks continue to be facilities for children who are die of other diseases and illnesses, both Under ICTSI’s education thrust, three programs allowances—together with the opportunity to addressed is part of our battling cancer. The Indus communicable and non-communicable. These fall under our Scholarship portfolio. The Local take up college at ICTSI Foundation’s partner, commitment to a more Hospital provides dedicated are among the vulnerable sectors whose Scholarship Program provides funds for Northeastern University in Boston, USA. Third, sustainable future for all, way Pediatric Oncology services beyond the current crisis. and has treated 10,000 child- needs we did not want to overlook in 2020. patients. Additionally, PICT Thus, apart from supporting governments, OPC (Honduras). OPC signed participated in a fund-raising communities, and civil society as they combat an agreement with Ciudad golf tournament to support the virus, we also continued to support other Education Mujer (City Woman) and Indus Hospital’s mission to programs that promote good health and pledged USD 10,000 worth provide free quality healthcare well-being in the communities we serve globally. of medical materials and to this underserved group. services aimed to support women’s health in Honduras. MICTSL (Madagascar). MICTSL For years before the pandemic, ICTSI had Scholarship program Supporting blended learning already been supporting the public and private Through the nine-month provided transportation and scholars supported for 2020 program, women received other equipment for far-flung health sectors in our host communities; for 175 10,484 49 977 mammography tests, breast and hard-to-reach areas in the instance, through periodic medical missions and STUDENTS SCHOOLS TEACHERS ultrasounds, and pap tests, port’s hinterland. To support donation of medical equipment and supplies. High School Scholars under the Local among others. Ensuring the Malagasy Government, the In February of 2020, shortly before the Scholarship Program Benefitting from the Foundation’s various donations women’s health is something terminal donated five brand 156 government-imposed community quarantines, of printers, copier machines, reams of bond paper, ink that they and their families, new all-terrain ambulances and hygiene kits to assist public schools in their shift our Foundation partnered with SBITC on a College Scholars under the Local to blended learning particularly children, will These are provided with Scholarship Program benefit from. standard emergency medical mission to the Aeta community in the 14 schools in Manila, Calamba, Olongapo, equipment and can be sent to mountains of Sitio, Ingalew in San Marcelino, International Scholar at the Northeastern Bauan, Misamis Oriental, Davao City MICT (Philippines). Through locations on the island that are Zambales. The joint group of volunteers from 12 and General Santos City given hygiene University in Boston, MA the MICT Sustainability and not easily accessible. 1 and sanitation supplies as part of the SBITC and medical professionals from the Education Department’s Brigada Eskwela Development Unit (SDU), the Health Education Medical Ministry conducted Parola Inter-Agency Network YICTL (China). YICTL High School Scholars under the ICTSI a highly productive event: the team delivered Employee Volunteerism Program (PIAN) continues to respond employees delivered anti- desktop units donated to the Municipality free medical consultations, minor surgeries, 4 of Bauan, Batagas to support their Online to the increase in early epidemic materials to the 10 Resource Center for pupils without internet pregnancy, sexual violence, Nanhong Street Community eye checkups and dental services, and access and HIV among young Office for Epidemic Prevention also provided free medicines, vitamins and ALS teachers given honorariums for the Filipinos. PIAN conducted and Control. ■ eyeglasses to more than 300 beneficiaries. Project AIDE Alternative Learning System at F. Bangoy comprehensive sexuality 4 Central Elementary School in Davao City children with special needs given educational toys, books and materials 74 under the Foundations' Project AIDE students with special needs at Tagoloan (Assistance to Improve Day care Central School given gift certificates for Education) in Calamba, Laguna 46 groceries
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Bridging resource gaps and bringing
learning opportunities to children and the most recent, is the ICTSI Employee and reams of bond papers. All the Philippine Volunteerism Program Scholarship Program, scholars were provided with laptops, pocket wifi ICTSI and our terminals wherein ICTSI confidential employees voluntarily and monthly internet allowance to support their embarked on strategic provide educational support to selected children remote learning. educational interventions in 2020, all designed to respond of ICTSI’s on-call and rank and file employees. to the specific needs of local learners: The Foundation continued to assist its partner whether it was bridging resource gaps, ICTSI Foundation also supports school-based schools for the Alternative Learning Systems or bringing more educational and projects that are intended to improve the which provides educational opportunities for cultural opportunities to children in teaching and learning environment. Specifically, learners who quit formal schooling due to various parts of the globe. Several of these are projects for the day care centers, poverty and other personal reasons. these strategic interventions were made Project Assistance to Improve Day Care possible through effective partnerships with academic and private institutions, Education, renovation of libraries in elementary A sustainable future cannot be realized if youth as well as with local governments. schools, My Reading Nook, equipping and have no access to educational opportunities, repair of technical-vocational laboratories or if serious learning disruptions (such as BGT (Iraq). BGT implemented an TLE Assistance Project, Assistance to Special what the pandemic initially wrought) are academic scholarship program to Education Program, Assistance to Alternative not managed. ICTSI believes it necessary help the next generation get access complement the beautification of Avenue (patterned after neighborhoods Learning Systems, provision of computers, to ensure that children are prepared for the to quality education. As part of the the community, they decorated three like Soho, New York). Deemed to be My Computer Nook and teacher training, knowledge economy, and equipped with the Company’s CSR initiatives, BGT’s murals characterizing each of the an "Open Sky Museum", it will also be program grants deserving students neighborhoods that make up the area. integrated with the new Museum of Rio Project TEACH. skills necessary for navigating through life in a the chance to pursue their educational Under CMSA’s CONBECA program, (created in 2018). post-pandemic world. goals and develop skills beneficial to awards for educational merit were However, the pandemic altered the modes of society. Applicants are evaluated based given to 49 outstanding students with MICT (Philippines). The MICT implementation of these programs. Many cannot Training and Development on their academic record, in conjunction excellent grades. More than 50% of Sustainability and Development Unit, be done as planned. Instead, the Foundation ICTSI also invests in training and capacity with the standards set by the Umm Qasr the participants have received this through its Balik Eskwela Program, decided to focus its resources to help its development, previously focusing on areas such School City Council. educational support consecutively donated printers, printer ink supply, partner schools adapt to the implementation as disaster preparedness, environmental and since the program started just over two and 600 reams of A4 bond paper BIPI (Philippines). The ICTSI Foundation, years ago. to the Rajah Solaiman Science and of the Department of Education’s blended climate change mitigation programs, and the Inc. together with BIPI donated PPEs Technology High School and the Jose learning program, a combination of online protection of children. In 2020, BICT, being the and disinfectants to DepEd in August ICTSI Rio Brasil (Brazil). The terminal Abad Santos High School. and module-based classes. The Foundation main transportation trade point in the Black for its Brigada Eskwela program, which provided support for Favela Mundo, an responded by donating copiers, inks, printers Sea basin, was among the private entities that provides assistance to selected schools NGO whose mission is to contribute TSSA (Brazil). TSSA donated 58 units within the host communities of the to human development through of IT equipment (including computers, Philippine subsidiaries. Through the culture, education, and environmental monitors, and printers) to the University same program, the Company donated awareness as pillars to becoming better of Pernambuco (UPE) to support the face masks and face shields, alcohol, and more productive citizens. In March, institution’s Solidarity Equipment disinfectants, and thermal scanners to they offered 250 slots for children and Campaign for its students. It was ICTSI scholar interns with Global Engineering selected public schools in Metro Manila, adolescents in their local community distributed among UPE’s vulnerable With many countries, “Interning here is, I would say, Bauan, Batangas, Olongapo City, City who wanted to participate in artistic students–including those taking of Calamba, Davao City, General Santos workshops. In partnership with Favela up Bachelor of Social Service and including the United states, one of the best decisions I have City and Tagoloan. Mundo, the Arte Gerando Renda Technological Logistics Management continuing to grapple with the made in college. Engineers are very program trains young people and adults courses at UPE’s campus in Palmares health crisis, John Lenard accommodating, and they’ve been CMSA (Mexico). Through its partnership over the age of 15 by offering free City–so they can participate in the Rivera, a third year Civil Engineering treating me like a real engineer from with Coparmex Manzanillo, CMSA workshops focused on the labor market, university’s academic activities online. student and ICTSI Foundation scholar at ICTSI. They consider my suggestions contributed computer equipment for aesthetics, carnival and performing arts. the Northeastern University (NEU) in every time there are problems on site. the teachers of Juana María Suárez Now on its sixth edition, the program CMSA (Mexico). CMSA employees Boston, Massachusetts, returned to the To be honest, I have learned more kindergarten, and gave computers that has trained over 1,800 students. shared the traditional Rosca de Philippines in June 2020 to pursue his things here in my co-op than in classes,” benefitted 25 children at the Liborio The terminal also had recent Reyes (Three Kings’ Bread) on Cooperative Education internship with explains Lenard. Espinoza Foster Home. These were breakthroughs in its Dupla Escola January 6, 2020, with kindergarten ICTSI’s Global Engineering team. Now on its sixth year, the ICTSI given to help facilitate distance learning (Double School) Project which began in and elementary students from the Lenard was assigned to the MICT’s International Scholarship Program has among students so they could continue 2017, boasting a total of 186 graduates community of Las Brisas. The bread- Berth 7 expansion project, as well as attracted the country’s best minds to their educational development despite since the project’s inception, and with sharing, done in celebration of Three the wharf repair works at Berths 1 to 5. pursue their dream course. Marlito being unable to physically attend school. more than 20 students working at the Kings’ Day or Feast of the Epiphany, His usual tasks involved coordinating Soriano, Accountancy major, and The fruits of CMSA’s successful Terminal to develop their careers. was spearheaded by Dilva Nava and with site engineers, consultants, and Charmille Colleen Dizon, Geology major, Contecon 2019 race benefitted the ICTSI Rio Brasil also spearheaded Sandra Alcaraz of CMSA’s Sustainability contractors. He also prepared the magna cum laude, graduated from the community of Las Brisas whose The Rua Walls project aimed to Department, school directors, and Las monthly progress reports for Berth NEU in 2020. ■ 7, attended turnover meetings, and school spaces were improved: a sports revitalize the Warehouses of the Port Brisas representative Alberto Nando. ■ field, technology in a kindergarten of Rio de Janeiro and create a cultural conducted on-site inspections. yard, and an elementary school. To itinerary with works spread all over the
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supported the construction of the new Maritime Community Welfare Teaching and Training Center (MTTC) in the Community welfare port city of Poti in Georgia. The MTTC, a branch ICTSI believes in the important role each of the Batumi Maritime Academy, opened in community plays in uplifting its locality’s October 2020 and will start accepting 1,000 growth and overall societal welfare, and students in 2021 to provide high-level vocational vice versa. Working hand in hand with the Project Ugnayan Christmas Outreach education for the development of maritime ICTSI Foundation, we initiate and/or support aiding families economically displaced elderly given rice, grocery items and PPEs at professionals. programs and projects that address health by the pandemic the Co Su Gian Home for the Aged in Davao and sanitation, livelihood, peace and order, PHP 100M 40 City
The MTTC is fully equipped to train highly disaster relief/response, and overall community children given diapers, infant formula, qualified sailors and support staff in accordance development. The Company conducts toiletries, shampoos and vitamins at the with international requirements. The center is multi-sectoral impact consultations together 40 Reception and Child Study center in Davao Adopt-a-City Project City housed in the former Hydro-Melioration School, with identified or selected local communities one of Georgia’s cultural heritage sites. Much prior to the design and implementation of the to support the City of Manila's resilience families given Noche Buena packages at to the surprise of even Georgian Prime Minister projects we spearhead, participate in, or partner initiatives Rodriguez, Rizal, whose income sources were PHP 8M 100 impacted with the pandemic Giorgi Gakharia, the site of the training center, with. In our subsidiary terminals, a port head which was previously in ruins, was renovated (such as the General Manager) coordinates with Filipino-Amerasian kids and their families and converted to a high-quality training facility local leaders to organize events that enable living in Makati and Angeles City, Pampanga 100 given gift certificates and gift bags in just seven months. engagement with communities and people’s groups, ranging from: meetings, quarterly Disaster response children given gift bags and groceries at Happy Land in Tondo consultations with different local stakeholders, Taal eruption 150 open forums, project assessments, and ad hoc evacuees given ready-to-eat food, water, sleeping mats, hygiene kits and cleaning roasted chicken meals, coffee cups, and discussions, among others. Through these 12,438 materials in Tanauan, Santo Tomas and spaghetti packages given to the poorest of the avenues, we seek to successfully establish Ibaan 1,500 poor parishioners attending the dawn masses at Saint John Bosco Parish Church in Tondo and monitor mechanisms, collaborate with the Typhoon Rolly babies in Quezon City and Paranaque given locals, strengthen implementation, and facilitate donated to Caritas Virac for the infant formula, diapers and vitamins at the the gleaning of feedback and the crafting of construction of new shelters in 49 Grace to Be Born shelter and Saint Rita PHP 1M Catanduanes appropriate responses. Orphanage, through donations by different MICT departments (CRM, Global Procurement, Credit and Collection) donated to AGAPP for the repair and reconstruction of damaged public schools Clean water for port communities PHP 5M medical frontline workers at the Gat Andres Memorial Medical Center in Tondo given hot 350 meals on Christmas Day According to the WHO, safe drinking Typhoon Ulysses water, sanitation, and hygiene are families given grocery packs, hygiene indigent senior citizens given groceries at crucial to human health and well-being. kits and other materials in Rodriguez, Barangay San Roque and San Andres I in 300 Bauan, Batangas Moreover, it contributes to livelihood, 9,629 Rizal, Santa Maria, Bulacan, Baggao and school attendance, dignity, and helps to create Amulung, Cagayan, and Isabela province resilient communities living in healthy children given milk supplies, vitamins, for the repair and reconstruction of St. toiletries, clothes, towels and assorted Building resilient cities environments. John de Baptist Church in Quezon province 13 grocery items at the House of Shiloh in PHP 1M General Santos City In December 2020, through our Foundation, we focused MITL (PNG). MITL undertook a community impact on social commitment as we partnered with the project called the Tatana Water Project (begun in Philippine-based National Resilience Council’s (NRC) December 2019), supplied and installed a water Leadership for Resilient Local Government Unit Program tank, water pump and water supply to the health
for the City of Manila. The initiative falls under NRC’s clinic and CHW’s dwelling house. The Baruni Assistance for vulnerable groups Adopt-a-City initiative, a private sector program that Community in PNG also benefitted from the water aims to collectively strengthen the dynamic supply infrastructure that ICTSI donated as part donation to Coalition of Services for the Elderly, homeless individuals given sleeping mats, collaboration between the public and private sectors Inc. (COSE) to augment the meager supplies of blankets, slippers and food packages as of our full commitment to advance the interests of PHP 1M more than 10,000 senior citizens in NCR 200 requested by the Our Lady of Fatima parish towards advancing science-based solutions to the our port stakeholders. in Las Pinas challenges of disaster resiliency. With its donation of PHP 8 million (over USD 164,000) PICT (Pakistan). PICT provided a water facility at donation to Project Liwanag to assist 2,000 Aeta sacks of rice for residents of Barangay 20 to the program, ICTSI seeks to enable local government units–in a public cricket ground, that not only supported families in the mountains of Capas, Tarlac heavily impacted by the lockdowns imposed PHP 1M 50 in the City of Manila this case, the City of Manila–together with the private sector, the sports development of youth in the area but scientific organizations, and the academic community to prevent, also made water available for the residents of prepare for, and quickly recover from disasters and calamities. ■ surrounding communities. ■
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Nourishing families, strengthening resilience Comfort and joy during the COVID-19 pandemic affected the economy and made meat a rare luxury for a lot of families. The packets of meat were prepared with utmost ICTSI Corporate (Philippines). ICTSI was safety and care to safeguard the health of the recipients. among the first to respond to the call of the CMSA (Mexico). In March, CMSA donated food and essential Philippine Disaster Resilience Foundation supplies to the communities of Las Brisas and Marimar, (PDRF), of which it is a member, for the whose residents have been among the most vulnerable business community to band together for Project to the impacts of COVID-19. They also worked together Ugnayan—a feeding program for families and with Coparmex Manzanillo to donate food supplies for the individuals economically displaced by the enhanced personnel in the sanitary filters at the entrances to the state to community quarantine. The Company immediately help mitigate the effects of the pandemic. released PHP 100 million for the initiative, and from an initial PHP 1.5 billion, the fund has since grown to PHP ICTSI Rio Brasil (Brazil). Spearheaded by the Companhia 1.7 billion including donations from 32 other Docas de Rio de Janeiro, ICTSI Rio Brasil joined hands to companies. With PDRF as secretariat, the project was extend relief baskets every month for three months to 102 able to provide food vouchers to more than 7.5 million vulnerable families in the Caju community near the port. This marginalized and economically-challenged individuals included food products, cleaning materials, and personal in the National Capital Region (including Rizal, Bulacan, The series of lockdowns imposed by the government hygiene items enough for a family of four. Cavite and Laguna). Supporting communities to mitigate the spread of the COVID-19 pandemic brought with them serious socioeconomic MICT (Philippines). MICT Parola Inter-agency Network’s Health ICTSI Foundation (Philippines). During the prolonged disrupted by the Taal repercussions for daily wage earners and their cluster, led by the Center for Community Transformation, community quarantines in Manila, the Foundation families. Many of them lost their jobs and source of delivered meals to children in their homes through community has reached out to two other needy sectors: the livelihood, like public utility vehicle drivers and volunteers who were mostly leader mothers of the partner elderly and indigenous peoples. A PHP 1 million Volcano eruption operators. ICTSI reaffirmed its commitment to its organization. donation was given to the Coalition of Services for the Elderly, Inc. (COSE) to augment the meager Considered one of refuge in evacuation centers. partner communities most affected by the pandemic by providing them with food and essential supplies. PICT (Pakistan). PICT donated ration bags with basic food supplies of more than 10,000 senior citizens across the sleeping Another round of relief essentials to deserving families of the port’s surrounding Metro Manila. Another PHP 1 million was also given to volcanos in the operations was conducted on BGT (Iraq). Maintaining its tradition and belief in supporting areas, and embarked on a “food for cause” project with Robin Project Liwanag to assist 2,000 Aeta families in the Philippines, Taal had March 1 together with the
the local community, BGT celebrated Eid Al-Adha (an Islamic Hood Army, a volunteer- based, zero-funds organization that mountains of Capas, Tarlac. been quiet for 43 Bloomberry Cultural holiday celebrated by offering an animal–usually lamb–and works to get surplus food from restaurants and the community For many Filipinos, Christmas holds a very special years before it Foundation Inc., NorthPort, sharing of meat) by sharing meat with families in Umm Qasr. to serve less fortunate people, thus not only helping to prevent place in the hearts of families, with the spirit of erupted on January and Manila Harbor Center Port generosity and sharing very much alive no matter the 12, 2020—spewing Services, Inc. The continuing increase in COVID-19 cases in Iraq negatively food wastage but also contributing to sustainable societies. ■ hard circumstances faced, and that includes COVID- gas, ash, and lava for several As a result of the 19’s impact and the typhoons that hit the country in weeks. It dropped unusually eruption, inhabitants of the December. heavy ash in surrounding volcano island and those Through the Foundation, we kept our tradition communities and even as far from surrounding coastal Responding to disasters, restoring hope of gift-giving, especially to countless families who as Manila, resulting in communities were left with needed it more than ever. Necessities such as withered vegetation, death of no homes to return to. They groceries, hygiene kits, meals, noche buena packs, livestock and fishes, and were instead transferred to Aside from the pandemic, the than 30 people affected by Typhoon baby care items, and gift certificates were graciously damage to thousands of Seabreeze Residences, a year in review was marked Hernán, and delivered 100 pantries to donated to various charitable organizations, churches, homes. The ICTSI Foundation, military housing project in with a series of natural affected families. orphanages and hospitals; these benefited orphans, together with employee- and Ibaan, Batangas, where 450 disasters around the world babies, children in conflict with the law, and indigent stakeholder-volunteers, out of the 1,500 housing that posed danger and MICT (Philippines). The Philippines senior citizens. Part of the donations came from three immediately organized relief units were allotted for the destruction: massive suffered numerous typhoons in 2020 ICTSI Departments (Commercial Risk Management, efforts for families and displaced families. A total bushfires in Victoria, such as Typhoons Rolly (in Bicol) and Procurement, and Credit and Collection) which donated individuals in Sto. Tomas, of 464 buckets containing Australia, and typhoons in Ulysses that impacted thousands of their budget for Christmas gifts to the Foundation. Tanauan, and Bauan in groceries, toiletries, and Mexico and the Philippines. families. Through the Foundation, ICTSI Batangas and even Calamba, medicine, as well as drinking Understanding the gravity of provided relief goods (grocery packs, CMSA (Mexico). In celebrating Day of the Boy and the Laguna. The efforts focused water, were distributed. Aside the situation in the affected hygiene kits, shelter kits) that benefited Girl, employees brought joy to children from Manzanillo on providing cooked meals, from basic commodities, areas, ICTSI quickly mobilized more than 9,000 families and monetary out to survivors of the massive bushfires by delivering toys to the homes of more than 100 hygiene kits, sleeping mats, household cleaning materials our people and resources to donations for the repair or rebuilding in Victoria: 42 empty containers infants from the Marimar and Las Brisas communities, and blankets to more than and cooking stoves were help the distressed of public schools damaged by Typhoon were donated, where survivors could where families of union colleagues live. They also 12,000 displaced individuals also handed out to help the communities get back on their feet and Rolly, as well as repair assistance for safely store whatever belongings they continued their yearly celebration with a party for who had temporarily taken families. ■ give hope to those in need. St. John the Baptist Church in Quezon managed to save from their homes. the little ones from the “Liborio Espinoza” and “Los province. Doing so helped survivors focus on the Angelitos” Foster Homes, who enjoyed pizza, cake CMSA (Mexico). CMSA worked with the need to rebuild not only their homes but and sweets and a great piñata. Finally, via its monthly Manzanillo Nursing Home and Foster VICT (Australia). VICT spearheaded the ■ their lives. collaboration with the Manzanillo Nursing Home and Home Los Angelitos to shelter more transport industry’s efforts by reaching Foster Home Los Angelitos Associations, CMSA has helped shelter over 30 people, and provided them with protein-rich and healthy food packs. ■
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Social assistance Social assistance Within the ICTSI Group, we render humanitarian assistance through various outreach programs and/or projects for selected marginalized Voice of the Free sectors such as children (especially the orphans, those who have been abandoned, survivors of human survivors, local in conflict with the law, and victims of human trafficking workers and OFWs assisted through the trafficking), the differently-abled, the old, and 50 134 iFight hotline other vulnerable groups. There are forms of Voice of the Free (formerly the Visayan Forum) provides holistic healing assistance directly extended by the ICTSI interventions for the rescued victims of child trafficking. VF Foundation Head Office, those that are initiated by the is an NGO known for the innovations in addressing modern slavery, especially human trafficking and the exploitation of domestic workers ICTSI Foundation, and those that are directly undertaken by the subsidiaries (operating companies or terminals). In the Philippines, Child Protection Network our ICTSI employee-volunteers also lend their support to the programs or projects. children served with medical case management, mental health evaluation and therapy through the CPN's child abuse unit at the Philippine General Hospital Elsewhere, several ICTSI ports welcomed 396 seafarers who were forced to stay at sea for several months longer than planned, stranded at sea due to COVID-19 travel restrictions. Christmas Outreach
children in conflict with the law (CICL) at the Manila Youth and Reception Center given hygiene kits Convive Manzanillo: protecting, uplifting, 200 persons deprived of liberty (PDLs) who suffered from and empowering women 117 torture given hygiene kits in 78 jails in NCR Believing that women the program aimed to help women With the support of graduates,
should not suffer from by providing them tools to uplift CMSA took on the task of placing violence and abuse their lives and contribute to posters in some businesses (both of which can also rebuilding community trust. It was with messages of awareness adversely affect their concluded on a positive note and reflection for citizens, while families and the entire through a virtual program held last making sure the people in charge community), CMSA July 2020, after finishing 10 of doing this were provided Caring for the vulnerable and afflicted launched its Convive sessions that focused on: being a antibacterial gel and face masks. ICTSI Foundation continuation of its programs and Manzanillo program in good citizen, developing life and In the same way, this initiative will 2019 to protect, uplift, social skills, and strengthening be extended to the neighboring (Philippines). Despite the projects, including the VF-run Center of and empower women through emotional intelligence, self- community of Las Brisas. The many restrictions due to the Hope, a place where young girls workshops, motivational seminars, awareness, cooperation, and Company is proud to be part of COVID-19 pandemic, the rescued from traffickers are cared for
and trainings. Implemented in empathy. A total of 17 women and this great initiative for women that ICTSI Foundation continued and undergo programs for their healing Marimar, a community in Colima two men completed the program. promotes equality and resilience in its support for the Child and rehabilitation. Protection Network and the with a high incidence of violence, the community. ■ Voice of the Free Foundation, YICTL (China). YICTL’s office of the Inc. (formerly Visayan Forum). deputy general manager and their team Through the CPN, the year of the partnership, 396 patients visited retired Veteran staff last July 29, Foundation's support will go were served with medical, case to check on their living conditions after to the establishment of 3 Women and management, mental health evaluation retirement, and reassured them of the Child Protection Units (WCPUs) in and therapy. Meanwhile, its renewed company's continuing concern for their Department of Health-run hospitals or support to Voice of the Free’s mission well-being. ■ local government units. On the first against modern slavery assured the
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Sports
ICTSI, primarily through the ICTSI Foundation, is committed to supporting young Filipino athletes by providing them opportunities to hone and develop their skills to prepare them for national and international sports competitions. On top of this, the ICTSI ports have been active in exploring opportunities and possible engagements to support athletes and sports enthusiasts in their host communities. The activities range from football to marathons to Keeping rugby, depending on the sporting priorities of the port communities. sports alive
ICTSI Corporate (Philippines). When the pandemic struck last year, ICTSI Golf Program Philippine sports took the blow on the chin. Events were suspended. Athletes were left to work out on their own. Golf was one of the beneficiaries of Amateur program the Philippine government’s approval to restart pro sports in the country, as quarantine restrictions eased. Under Lady golfers ICTSI-backed lady golfers Supported amateur lady golfers Maria Rafaela Singson, strict safety guidelines, keeping Samantha Marie Albert Dizon, Eagle Ace Superal and Arnie Philippine golf alive is the ICTSI-backed 4 Pauline Taguines under the ICTSI Foundation hit an ace overseas Philippine Golf Tour, which successfully staged two bubble events at the Couples and Langer Provided for training needs (coaching, physical fitness, equipment, Despite the challenges brought about by hitter with an average driving distance of close to courses of the Riviera Golf and Country Club in uniforms, homeschooling/academic scholarship, participation in local and international events) the contagion, ICTSI supported Filipina lady 295 yards. Cavite. Tony Lascuna and Ira Alido emerged on golfers Yuka Saso and Bianca In Ecuador, CGSA likewise supports Daniela top of the two tourneys for the men’s event, Pagdanganan as they continued to cement Darquea, one of the fastest-rising stars in women’s while Princess Superal and Pauline del Rosario their names in both the local and international scenes professional golf with her LPGA campaign. ■ dominated the ladies championship. The Games with their exemplary performance following the and Amusements Board lauded the meticulous Professional program resumption of golf tournaments in the second half of staging of the bubble events, and endorsed the 2020, after months of lockdown. As they worked their staging of more pro golf events in 2021. Lady golfers way through the world rankings, they hope to make Supported touring pros Yuka Saso, Bianca Pagdanganan, Princess Superal, Pauline del Rosario and Dottie Ardina the cut for the 2021 Tokyo Olympics. MITL and SPICTL (Papua New Guinea). Even 5 Saso bagged her first title by ruling the NEC as global sports competitions were put on hold Karuizawa 72 championship in August and two weeks because of the pandemic, the ICTSI South later captured the Notori Ladies Golf Tournament Pacific-backed PNG Palais national women’s trophy. She was part of the gold medal winning rugby team is working hard in preparation for Philippine women's team in the 2018 Asian Games in future regional tilts. In strict sports bubbles, Indonesia, and among the top of the Japan rankings. the girls continued their fitness, coaching and Pagdanganan, meanwhile, made her impressive pro training programs to maintain consistency. debut in July since her gold medal performance in the ICTSI's terminals in Motukea and Lae will 30th Southeast Asian Games in 2019, and quickly continue to support the talented and hardworking established herself as the US LPGA tour’s longest players of Palais as they compete and take PNG rugby to new heights. ■
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GRI Content Index
General Disclosures Standard Disclosure Page Number/Direct Answer
Organizational Profile 102-1 Name of the organization Cover page, 19 102-2 Activities, brands, products, and services 19 102-3 Location of headquarters 19 102-4 Location of operations 8, 9, 18 102-5 Ownership and legal form 19 102-6 Markets served 8, 9, 18 102-7 Scale of the organization 08 – 09 102-8 Information on employees and other workers 78 102-9 Supply chain 22 – 23 102-10 Significant changes to the organization and its supply chain 18 –19 102-11 Precautionary Principle or approach 51 102-12 External initiatives 22 102-13 Membership of associations 22
In 2020, the Company was thrice honored for Strategy promoting workplace and social inclusivity. Good Global Citizenship, 102-14 Statement from senior decision-maker 12 – 15 celebrated in Asia Citing the terminal’s commitments to human Emphasizing the promotion of green rights and dignity, the State recognized Ethics and Integrity environment, clean energy, community CMSA’s model work culture that provides 102-16 Values, principles, standards and norms of behavior 17 care, education and training, and social equal opportunities to Manzanillo’s vulnerable responsibility, ICTSI remains clear-eyed of groups. Colima Labor and Social Welfare Governance its vision for Good Corporate Citizenship. In Secretary Vicente Reyna Pérez personally 102-18 Governance structure 42 2020, the Company was recognized by Hong conferred the honor. Kong-based journal Corporate Governance Asia as among Asia’s Best Corporate Social CMSA also copped the ESR 2020 mark for Stakeholder Engagement Responsibility companies. its advocacies that impact the environment, 102-40 List of stakeholder groups 28 – 29 generate respect for people, promote ethical 102-41 Collective bargaining agreements Annual Report As pointed out by ICTSI Chairman and President values, and encourage social inclusion. The 102-42 Identifying and selecting stakeholders 28 Enrique K. Razon Jr., the organization has, Mexican Center for Philanthropy (Centro 102-43 Approach to stakeholder engagement 29 102-44 29 over the past decade, steadily built progressive Mexicano Para La Filantropia or CEMEFI) and Key topics and concerns raised relationships with the ICTSI terminals’ host the Alliance for Corporate Social Responsibility communities (beneficiaries and stakeholders), (AliaRSE) conferred the award to CMSA at Reporting Practice as well as with partner institutions with the the XIII Latin American Meeting of Empresa 102-45 Entities included in the consolidated financial statements 18, Annual Report shared vision. Socialmente Responsible (ESR, or Socially 102-46 Defining report content and topic Boundaries 24 – 26 Responsible Companies). 102-47 List of material topics 27 Earlier in 2020, in February, the Public Relations As indicated throughout 102-48 Restatements of information Society of the Philippines (PRSP) had given Finally, CMSA—cited for its efforts towards the report ICTSI a Silver Anvil for its 2018 Sustainability helping the locale’s most vulnerable sectors— 102-49 Changes in reporting 28 Report and the ICTSI Factbook. also earned the state-level 2019 Flame of 102-50 Reporting period 26 Generosity (La Flama de la Generosidad) 102-51 Date of most recent report 25 – 26 Triple wins for sustainability in the Americas. In from the State of Colima’s Private 102-52 Reporting cycle 25 – 26, Annual 102-53 Contact point for questions regarding the report Inside back cover Manzanillo, Mexico, CMSA has been steadily Assistance Board. ■ 102-54 Claims of reporting in accordance with the GRI Standards 26 building an inclusive, sustainable organization. 102-55 GRI content index 135 – 139 102-56 External assurance No external assurance
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Topic-Specific Disclosures
Standard Disclosure Page Number/Direct Answer Standard Disclosure Page Number/Direct Answer
ECONOMIC Emissions GRI 103: Management 103-1 Explanation of the material topic and its boundary 30 - 37 Approach 2016 Economic Performance 103-2 The management approach and its components 30 - 37 GRI 103: Management 103–1 Explanation of the material topic and its boundary 62 - 71, Annual Report 103-3 Evaluation of the management approach 30 - 37 Approach 2016 103–2 The management approach and its components 62 - 71, Annual Report GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions 37 103–3 Evaluation of the management approach 62 - 71, Annual Report 2016 305-2 Energy indirect (Scope 2) GHG emissions 37 GRI 201: Economic 201–1 Direct economic value generated and distributed 67 305-4 GHG emissions intensity 37 Performance 2016 201–2 Financial implications and other risks and opportunities due to 51 climate change Effluents and Waste GRI 103: Management 103-1 Explanation of the material topic and its boundary 39 - 40 Indirect Economic Impact Approach 2016 103-2 The management approach and its components 39 - 40 GRI 103: Management 103-1 Explanation of the material topic and its boundary 62 - 70 Approach 2016 103-3 Evaluation of the management approach 39 - 40 103-2 The management approach and its components 62 - 70 GRI 306: Effluents 306-2 Waste by type and disposal method 39 103-3 Evaluation of the management approach 62 - 70 and Waste 2016 GRI 203: Indirect Economic Impacts 203-2 Significant indirect economic impacts 62 - 70 2016 Water and Effluents GRI 103: Management 103-1 Explanation of the material topic and its boundary 40 Approach 2016 Procurement Practices 103-2 The management approach and its components 40 GRI 103: Management 103-1 Explanation of the material topic and its boundary 54 - 57 103-3 Evaluation of the management approach 40 Approach 2016 GRI 303: Water and 103-2 The management approach and its components 54 - 57 303-5 Water consumption 41 Effluents 2018 103-3 Evaluation of the management approach 54 - 57 GRI 204: Procurement 204-1 Proportion of spending on local suppliers 55 Practices 2016 Environmental Compliance GRI 103: Management 103-1 Explanation of the material topic and its boundary 30 - 40, 58 - 59 Approach 2016 Anti-Corruption 103-2 The management approach and its components 30 - 40, 58 - 59 GRI 103: Management 103-1 Explanation of the material topic and its boundary 52 - 53 103-3 Evaluation of the management approach 30 - 40, 58 - 59 Approach 2016 103-2 The management approach and its components 52 - 53 GRI 307: No identified Environmental non-compliance with 307-1 Non-compliance with environmental laws and regulations 103-3 Evaluation of the management approach 52 - 53 Compliance 2016 environmental laws and/or GRI 205: 205-2 Communication and training about anti-corruption policies and regulations. 53 Anti-Corruption 2016 procedures Supplier Environmental Assessment Responsible Tax Management GRI 103: Management 103-1 Explanation of the material topic and its boundary 54 - 57 Approach 2016 GRI 103: Management 207-1 Approach to tax Annual Report 103-2 The management approach and its components 54 - 57 Approach 2016 207-2 Tax governance, control and risk management Annual Report 103-3 Evaluation of the management approach 54 - 57 207-3 Stakeholder engagement and management of concerns related to tax Annual Report GRI 308: Supplier GRI 207: Tax 2019 Annual Report for Total Environmental 308-1 New suppliers that were screened using environmental criteria 55 Figures; Efforts will be Assessment 2016 207-4 Country-by-country reporting made in 2021 to disclose jurisdiction data SOCIAL
ENVIRONMENTAL Employment GRI 103: Management 103-1 Explanation of the material topic and its boundary 77 - 81 Energy Approach 2016 GRI 103: Management 103-1 Explanation of the material topic and its boundary 30 - 37 103-2 The management approach and its components 77 - 81 Approach 2016 103-2 The management approach and its components 30 - 37 103-3 Evaluation of the management approach 77 - 81 103-3 Evaluation of the management approach 30 - 37 GRI 401: Employment 401-1 New employee hires and employee turnover 79 2016 401-2 Benefits provided to full-time employees that are not provided to GRI 302: Energy 2016 302-1 Energy consumption within the organization 36 81 temporary or part-time employees 302-3 Energy intensity 36
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Standard Disclosure Page Number/Direct Answer Standard Disclosure Page Number/Direct Answer
Labor/Management Relations Local Communities GRI 103: Management 103-1 Explanation of the material topic and its boundary 91 - 93 GRI 103: Management 103-1 Explanation of the material topic and its boundary 112 - 134 Approach 2016 Approach 2016 103-2 The management approach and its components 91 - 93 103-2 The management approach and its components 112 - 134 103-3 Evaluation of the management approach 91 - 93 103-3 Evaluation of the management approach 112 - 134 GRI 413: Local 413-1 Operations with local community engagement, impact assessments, GRI 402: Labor/ 115 Management 402-1 Minimum notice periods regarding operational changes 91 Communities 2016 and development programs Relations 2016 Supplier Social Assessment Occupational Health and Safety GRI 103: Management 103-1 Explanation of the material topic and its boundary 54 - 56 Approach 2016 GRI 403: 403-1 Occupational health and safety management system 82 - 83 103-2 The management approach and its components 54 - 56 Occupational Health and Safety 403-2 Hazard identification, risk assessment, and incident investigation 83 - 86 103-3 Evaluation of the management approach 54 - 56 2018 (Management 403-3 Occupational health services 89 GRI 414: Supplier Approach Social Assessment 414-1 New suppliers that were screened using social criteria 55 Disclosures) 403-4 Worker participation, consultation, and communication on occupational health and safety 83 2016 403-5 Worker training on occupational health and safety 84 403-6 Promotion of worker health 89 Customer Health and Safety 403-7 Prevention and mitigation of occupational health and safety impacts GRI 103: Management 103-1 Explanation of the material topic and its boundary 105 - 106 86 - 89 Approach 2016 directly linked by business relationships 103-2 The management approach and its components 105 - 106 GRI 403: 403-8 Workers covered by an occupational health and safety management 103-3 Evaluation of the management approach 105 - 106 Occupational Health system 83 and Safety 2018 GRI 416: Customer No identified (Topic-Specific 403-9 Work-related injuries 85 Health and Safety 416-2 Incidents of non-compliance concerning the health and safety non-compliance with Disclosures) 2016 impacts of products and services regulations and/or voluntary codes.
Training and Education Customer Privacy GRI 103: Management 103-1 Explanation of the material topic and its boundary 94 - 98 Approach 2016 GRI 103: Management 103-1 Explanation of the material topic and its boundary 108 103-2 The management approach and its components 94 - 98 Approach 2016 103-2 The management approach and its components 108 103-3 Evaluation of the management approach 94 - 98 103-3 Evaluation of the management approach 108 GRI 404: Training and 404-1 Average hours of training per year per employee 94 Education 2016 GRI 418: Customer 418-1 Substantiated complaints concerning breaches of customer privacy 108 404-2 Programs for upgrading employee skills and transition assistance Privacy 2016 and losses of customer data programs 95
Diversity and Equal Opportunity Socioeconomic Compliance GRI 103: Management 103-1 Explanation of the material topic and its boundary 58 - 59 GRI 103: Management 103-1 Explanation of the material topic and its boundary 93 - 94 Approach 2016 Approach 2016 103-2 The management approach and its components 58 - 59 103-2 The management approach and its components 93 - 94 103-3 Evaluation of the management approach 58 - 59 103-3 Evaluation of the management approach 93 - 94 GRI 419: No identified GRI 405: Diversity Socioeconomic 419-1 Non-compliance with laws and regulations in the social and economic non-compliance with and Equal 405-1 Diversity of governance bodies and employees 79, 92 Compliance 2016 area socio-economiclaws and/or Opportunity 2016 regulations.
Freedom of Association and Collective Bargaining GRI 103: Management 103-1 Explanation of the material topic and its boundary 91 Approach 2016 103-2 The management approach and its components 91 103-3 Evaluation of the management approach 91 GRI 407: Freedom of Association and 407-1 Operations and suppliers in which the right to freedom of assocation 91 Collective Bargaining and collective bargaining may be at risk 2016
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Corporate Information
Corporate Offices
International Container Terminal Services, Inc. (ICTSI) ICTSI Administration Building Manila International Container Terminal MICT South Access Road Port of Manila 1012 Manila, Philippines +63 2 8245 4101 +63 2 8245 2245 [email protected] www.ictsi.com
For inquiries on the Company’s sustainability efforts: Global Corporate Investor Relations & Treasury +63 2 8247 8215 +63 2 8247 8035 [email protected]
Investor Inquiries
ICTSI welcomes inquiries from investors, analysts and the financial community. For more information about ICTSI, please visit ictsi.com/investors.
Rafael D. Consing, Jr. Senior Vice President and Chief Financial Officer, and Compliance Officer + 63 2 8247 2614 + 63 2 8247 8035 [email protected]
Arthur R. Tabuena Treasury Director and Head of Investor Relations + 63 2 8245 2225 + 63 2 8247 8008 + 63 2 8247 8035 [email protected]
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LIFTING T O D AY, UPHOLDING TOMORROW
For People, the Environment & Economies