2016 Sustainability Report

SUSTAINABILITY REPORT 2016

Sustainability Report 2016

Table of Contents

2 About Metro Pacific Investments Corporation

3 About the Report

4 Message from the Chairman, President and CEO, and CFO

6 Corporate Structure

8 Key Sectors

9 Products and Services

10 Our Sustainability Performance in 2016

12 Sustainability at MPIC

22 Creating Value for Stakeholders

24 Core Drivers of MPIC

36 Power

38 Manila Electric Company (MERALCO)

52 Global Business Power Corporation (GBP)

66 Water

68 Maynilad Water Services, Inc. (Maynilad)

82 Toll Roads

84 Manila North Tollway Corporation (MNTC)

84 Tollways Management Corporation (TMC)

84 CAVITEX Infrastructure Corporation (CIC)

98 Light Rail

100 Light Rail Manila Corporation (LRMC)

112 Hospitals

118 Asian Hospital, Inc. (AHI)

124 Makati Medical Center (MMC)

132 Cardinal Santos Medical Center (CSMC)

140 GRI Content Index 2 Sustainability Report 2016 Metro Pacific Investments

G4-3, G4-56 About Metro Pacific Investments Corporation

Metro Pacific Investments Corporation (MPIC) MPIC maximizes returns for its shareholders is a Philippine-based, publicly-listed investment by investing in and managing businesses which management and holding company registered deliver high-quality, well-run, and fairly-priced with the Philippine Securities and Exchange infrastructure in the Philippines and elsewhere Commission (SEC) on March 20, 2006. We are the in the region. These infrastructure investments leading infrastructure holding company in the are long-term propositions supported by the Philippines with a diverse set of infrastructure Company’s commensurate investment in the assets through our investments in power, water long-term welfare of its stakeholders. utilities, toll roads, hospital operations, light rail, and logistics. With headquarters in the Makati Central Business District of Manila, MPIC has established its MPIC is proud of its services which include presence throughout the Philippines with its providing first class medical care, safe and operating businesses. As a group, it provides efficient road and rail transportation, generating livelihood to over 22,000 people. and distributing electricity and delivering clean and safe drinking water to the public.

Our Mission Our Values

We are the leading Philippine infrastructure Teamwork and Empowerment investment firm. We manage, transform and grow our companies while continuously seeking • We recognize the diverse strength and investment opportunities to create long-term abilities within the team. value for our shareholders. • We enable and inspire people to achieve superior results.

Our Vision Integrity and Transparency

We have a stellar portfolio of infrastructure • We adhere to the highest ethical and assets, each being the dominant player in its corporate governance standards. field. We are admired globally for excellence in investing in and transforming infrastructure. Entrepreneurship We attract, retain and develop world-class talent. Through our companies and foundation, • We innovate, take risks, act quickly and we significantly contribute to the economic decisively, and are customer focused. development of the Philippines and thereby uplift the quality of life of every Filipino. Financial Discipline and Accountability

• We employ rigorous financial analysis to arrive at sound business decisions. • We are results-driven and meet our commitments. 3

G4-5, G4-28, G4-30, G4-31 About the Report

This is MPIC’s inaugural Sustainability Report (the “Report”) covering the year ended December 31, 2016 and was prepared in accordance with the “core” option of the Global Reporting Initiative (GRI) G4 guidelines.

The Group’s key operational and non-financial results are summarized in this Report. The scope of this report covers the following operating companies:

• Manila Electric Company • Global Business Power Corporation • Maynilad Water Services, Inc. • Manila North Tollways Corporation • Tollways Management Corporation • CAVITEX Infrastructure Corporation • Light Rail Manila Corporation • Asian Hospital, Inc. • Makati Medical Center • Cardinal Santos Medical Center

This Report was reviewed by the relevant operating companies management and the Corporate Governance Committee of MPIC and was approved by the Board of Directors on November 8, 2017.

We welcome all feedback on the contents of this Report or on any matter relating to MPIC’s sustainability initiatives and practices.

For comments and feedback, please contact us at:

Metro Pacific Investments Corporation 10/F MGO Building Legaspi cor. Dela Rosa Streets Makati City, 0721 Philippines +63 2 888 0888 http://www.mpic.com.ph/contact-us/ 4 Sustainability Report 2016 Metro Pacific Investments

G4-1 Message from the Chairman, President and CEO, and CFO

To our fellow stakeholders,

We are pleased to share with you our first At the heart of MPIC’s investment thesis is the Sustainability Report covering the year ended belief that provision of high quality, well run and 31st December 2016, the year we celebrated 10 fairly-priced essential services is compatible with years of being a listed company in the Philippines. both the overall public good and a fair return to our investors. We believe that our companies will Ten years ago, MPIC started its journey with thrive only if we are able to deliver good customer 16 employees and one investment. Now, MPIC experience at a fair price. has grown to encompass six key business segments— Power, Water, Toll Roads, Hospitals, We have taken on difficult or even failing projects Light Rail and Logistics. As of 31 December and turned them around. These include a number 2016, the MPIC Head Office had 49 employees of hospitals on the verge of failure; an insolvent and a workforce of over 22,000 through the water concession; a utility company with a history businesses we invest in and manage. of regulatory difficulties unable to invest in service provision; a toll road project which took over Power, water, roads, transportation, and hospitals six years to gain approval; and a rail project for are all essential services that society relies on which there were no other private sector bidders. every day. We are keenly aware of the role that we have taken on and the significance of ensuring MPIC has established itself as an economic long-term growth and viability of our businesses partner in nation building. We are also providing for the good of all our stakeholders. extensive employment opportunities and have paid over ₱151 Billion in taxes (net of pass- It is in this spirit of sustainable business practice through taxes) to the National Government in the that we continuously strive for improvement past ten years. and innovation in our businesses as well as engagement with the communities we operate in.

Power, water, roads, transportation, and hospitals are all essential services that society relies on every day. We are keenly aware of the role that we have taken on and the significance of ensuring long-term growth and viability of our businesses for the good of all our stakeholders.

MANUEL V. PANGILINAN, Chairman 5

Our achievements to date have only been made This Sustainability Report is a way for us to possible through the array of excellent partners articulate our position to date and to set out we have worked with. We therefore take this measures we will work to improve in future. opportunity to acknowledge all our stakeholders— We hope this Report will be useful and interesting each one playing a significant part in helping to for you. bring MPIC to its current position.

MANUEL V. PANGILINAN JOSE MA. K. LIM DAVID J. NICOL Chairman President and Chief Financial Officer Chief Executive Officer 6 Sustainability Report 2016 Metro Pacific Investments

G4-4, G4-7 COCorporateRPORATE STR StructureUCTURE (as of June 2017) Details of the Corporate Structure are in MPIC’s 2016 Audited Consolidated Financial Statements

POWER WATER POWER WATER 45.5% 52.8% M45.5%anila Electric Company (MERALCO) is the largest Maynilad52.8% Water Services, Inc. is the largest water eleManilactric Eledistributionctric Compa company (MERAny in LtheCO )Philippine is the largests, concessionaireMaynilad Water in Services, terms of Inc. customer is the largest base in water the distributingelectric distribution 55% of Philippine company inene thergy Philippine consumption,s, Philippines,concessionaire providing in terms water of customer and sewerage base in services the includingdistributing Metro 55% Manila, of Philippine serving ene approximatelyrgy consumption, 28 toPhilippines, 9.3 million providing customers water across and cities sewerage and municipalities services millionincluding people Metro through Manila, its serving 6.3 million approximately billed customers. 28 into the9.3 Westmillion Service customers Area ofacross Metro cities Manila and through municipalities its million people through its 6.3 million billed customers. approximatelyin the West Service 1.4 million Area of billed Metro customers. Manila through its 100.0%approximately 1.4 million billed customers. 62.4% M100.0%etroPac Water Investments Corporation is an Global62.4% Business Power Corporation is a iMnvetestmentroPac W holdingater Investments company C whichorporation opera iste ans, leadingGlobal Business power p rPoduowercer C orporationin the Visayas is a Re gion manageinvestments, maintains holding candompa rehabilitany whichtes opera watetrewsork, s, andleading Mindo porwoer Islan produd, withcer ina ctheombined Visayas g Rerossgion semanagewerages, andmaintains sanitation and srehabilitaystems andtes sewarvitecreswork of s, dependableand Mindoro capaci Islandt,y with of 854 a c MombinedW. gross MPICsewerage water and investments sanitation outside systems M andetro se Mrvianila.ces of dependable capacity of 854 MW. MPIC water investments outside Metro Manila. TOLL ROADS TOLL ROADS 75.6% 100.0% NLEX75.6% Corporation, formerly Manila North Tollways CAVITEX100.0% Infrastructure Corporation (CIC) holds the CNLEXorporation, Corporation, holds ftheormerly conc essionManila rights North t Toollw ays concessionCAVITEX Infrastructure rights for the Corporation operation and (CIC) maintenance holds the cConstruorporation,ct, opera holdste and the maintainconcession the rights North to L uzon ofconcession the Cavitex rights Expressway. for the operation1 and maintenance Expconstruresswct,a yopera (NLEX),te and Subic maintain-Clark-T arlacthe No Exprthressw Luzonay of the Cavitex Expressway.1 (SExpCTEX)ressw anday (NLEX),the NLE SubicX-SLEX-Clar Connek-Tarlacctor Exp Roaresswd. ay 100.0% (SCTEX) and the NLEX-SLEX Connector Road. MPCALA100.0% Holding s, Inc. holds the concession to 73.0% MPCALA Holdings, Inc. holds the concession to T73.0%ollways Management Corporation is engaged in the the Cavite-Laguna Expressway. oTopellwraatyiosn Ms anadg memainentetn Caonrcpeo oraf ttiolnl rios aednsg, aitgse fdac iinli ttihees, the Cavite-Laguna Expressway. ionpeterrcahtiaonngse asn adn md aliln rteelnaatendc ew oofr ktos.l lI tr ocaudrrse, nittsl yfa cilities, 100.0% oinpeterractheasn agneds manadin atlal irnesla ttheed NL woErXk sa.n Itd c SuCrrTeEnXt.ly C100.0%ebu Cordov a Link Expressway Corporation holds operates and maintains the NLEX and SCTEX. theCebu con Cocessionrdova Link rights Exp tor esswconstruay Cct,orporation operate and holds maintainthe concession the Cebu rights Co rtdoo cvonstrua Link cExpt, operaresswtea yand. 45.0% maintain the Cebu Cordova Link Expressway. CII45.0% Bridges and Roads is engaged in the construction, 29.5% deCIIv Bridgeselopment and and Roads operation is engaged of the in urban the constru ction, Don29.5% Muang Tollway Public Company Limited infrastrudevelopmentcture seandct oroperation in Vietnam. of the urban holdsDon Muang the concession Tollway Public rights Companyto operate Limited toll road infrastructure sector in Vietnam. servicesholds the from concession Din Daeng rights to National to operate Memorial toll road Monumentservices from in DinThailand. Daeng to National Memorial Monument in Thailand. Hospitals through MPHHI2 Hospitals through MPHHI2 85.6% 100.0% 85.6% C100.0%ardinal Santos Medical Center is one of the private hospital with tertiary care facilities in the PChairldiipnpainl eSsa’ nletoasdi Mnge dhiocaspil Cteanlst espr eisci oanliez ionfg t hine the Sprivaouthernte hospital Luzon withcorridor tertia ofr mety careopolitan facilities M inanila. the Philippines’ leading hospitals specializing in the Southern Luzon corridor of metropolitan Manila. Invasive Surgery. 51.0% 35.2%Invasive Surgery. C51.0%entral Luzon Doctors’ Hospital is a tertiary, Level 4 D35.2%avao Doctors Hospital is a privately-owned, tertiary pCreivnatrtael hoLuszpointa Dl wocittho rtse’ aHcohsipnigta al nisd a trai terntianrgy ,f aLcievliteile 4s in leDvaelvao and Do multi-specialctors Hospitalty is hospital a priva tlocaely-otedwne ind the, te rheatiarryt Fparmivailtye M hoedspiciitnael wanitdh Paediatrics.teaching and training facilities in oflev Dela vaoand Cimulti-specialty, the businessty hospital hub of loca Mindanated ino the. heart Family Medicine and Paediatrics. of Davao City, the business hub of Mindanao. 7 ANNUAL REPORT 2016 METRO PACIFIC INVESTMENTS CORPORATION 11

Corporate Structure (as of June 2017) Y E A R S

HOSPITALS through MPHHI2 51.0% 51.0% De Los Santos Medical Center is a mid-market Sacred Heart Hospital of Malolos, Inc. is a 72-bed teaching and training hospital in Quezon City. capacity, Level 2 Hospital located in Malolos City, province of Bulacan.

100.0% 51.0% (through Metro Sanitas Corporation)3 Our Lady of Lourdes Hospital is a mid-market hospital Mega Clinic is the largest and most complete which services communities in East Manila. urgent care and walk-in health center in the country. 20.0% 100.0% Manila Doctors Hospital is a premier private tertiary West Metro Medical Center is the second largest hospital located along United Nations Avenue in the tertiary hospital in Zamboanga. City of Manila. 33.0% 93.1% Makati Medical Center is a leading hospital Marikina Valley Medical Center is a prominent that services the primary central business district tertiary hospital in Marikina. in Metro Manila. 78.0% 65.0% Bacolod City’s premier medical institution, Riverside Dr. Jesus C. Delgado Memorial Hospital is a tertiary Medical Center is a level 3 tertiary teaching hospital general hospital in Quezon City. providing quality patient care for the Negrense since 1954. 50.0% Lipa Medix Cancer Center is an oncology treatment center in Lipa City, Batangas.

LIGHT RAIL

55.0% Light Rail Manila Corporation holds a 32-year concession to operate, rehabilitate and maintain the existing 20.7 kilometers encompassing 20 stations of the LRT Line 1.

LOGISTICS AND OTHERS 76.0% 25.0% MetroPac Movers, Inc. is primarily involved in areas Indra Philippines, Inc. is one of the leading of logistics, warehousing, toll manufacturing, providers of information technology solutions transportation and distribution to major fast-moving to various businesses and industries in the consumer goods companies in the Philippines. Philippines, with engagements in utilities and

20.0% administration. AF Payments Inc. operates and maintains an electronic payment clearing and settlement system through a contactless automated fare collection system for public utility, including a generic contactless micropayment solution.

1 - MPIC, through Metro Pacific Tollways Corporation, controls CIC through a Management Letter Agreement dated December 27, 2012. Full description of CIC’s rights is disclosed in Note 1 of MPIC’s 2016 Audited Consolidated Financial Statements. 2 - MPIC currently holds 85.6% of Metro Pacific Hospital Holdings, Inc. (MPHHI)’s common shares with the remaining common shares owned by GIC Private Limited (GIC). In addition, GIC holds Exchangeable Bond issued by MPIC which can be exchanged into 25.5% further stake of GIC in MPHHI in future, subject to certain conditions. 3 - Metro Sanitas Corporation is 50% owned by MPHHI and 50% by OSI Health XXI S.L.U. 8 Sustainability Report 2016 Metro Pacific Investments

G4-8 Key Sectors

Power: Efficient and Toll Roads: First Class and Sufficient Energy Accessible Toll Roads

MPIC is making a significant contribution to the Through its Toll Road investments under Metro country’s energy security through its power Pacific Tollways Corporation (MPTC), MPIC is investments. Currently, MERALCO is continually connecting people and places and helping adding new connections while investing in new business expand. A safe, convenient and fast generating capacity for Luzon. road network enables convenient travel, reduces pollution by reducing traffic jams, and promotes MERALCO is the largest electricity distribution community development. MPTC is the largest Toll Company in the Philippines, covering 36 cities Road operator in the Philippines. and 75 municipalities including Metro Manila, and serving a population of over 28 Million Investments in Toll Roads include NLEX Corporation, people. Of this, MERALCO energized a total Tollways Management Corporation, CAVITEX of 25,753 low income households form 2011 Infrastructure Corporation, MPCALA Holdings Inc. to 2016 through its community electrification and Cebu Cordova Link Expressway Corporation. program. Its franchise area of over 9,685 km2 Outside the Philippines, MPTC also has investments covers the core of the country’s industrial, in the Ho Chi Minh City Infrastructure Investment commercial and population centers. Joint Stock Company and Don Muang Tollway Public Company Ltd., in Vietnam and Thailand respectively. GPB is a leading energy company in the Visayas In all, MPTC’s 372 km of roads serve more than and Mindoro Island, producing reliable and cost- 550,000 vehicles daily. efficient power supply through eleven power generation companies.

Water: Reliable and Hospitals: The Leading Safe Drinking Water Hospital Chain in the Philippines

MPIC is committed to ensuring that households and MPIC is committed to promoting health and businesses have reliable access to safe drinking water. wellness for Filipinos through an expanding MPIC’s water business segment includes investments network of quality Healthcare facilities. Through in Maynilad Water Services Inc. (Maynilad) and Metro Pacific Hospitals Holdings, Inc. (MPHHI), Metropac Water Investments Corporation (MWIC). investments in hospital acquisitions are paired Together, Maynilad and MWIC provide water with implementation of management efficiency services to over 1.4 Million water connection, or programs and the upgrade and expansion of equivalent to more than 9.5 Million people. facilities and equipment. MPHHI served 2,863,577 patients in 2016. Maynilad is the water and wastewater services provider for the 17 cities and municipalities that Through MPHHI’s 13 hospitals as of December 31, comprise the West Zone of the Metropolitan 2016, MPIC is now the largest hospital operator in Manila area. MWIC is MPIC’s water investment arm the Philippines. for projects outside Metro Manila. 9

Light Rail: Reliable and Logistics and Others Convenient Rail Service

MPIC is contributing to a secure and fast means Other companies in which MPIC has invested of urban commute in the central city of Manila. include: MetroPac Movers. Inc, which offers A consortium led by MPIC established the warehousing, trucking, and automotive pre- Light Rail Manila Corporation (LRMC) which delivery inspection services; AF Payments assumed responsibility over the operations and Inc., which operates and maintains an maintenance of the LRT1 rail line in 2015. Through electronic payment system; and Indra LRMC, the LRT1 is undergoing rehabilitation and Philippines, Inc., one of the leading providers restoration in order to give the public a better and of information technology solutions. safer commute experience. As of December 2016, 23 light rail vehicles (LRVs) have been refurbished, Although we plan to expand these businesses in bringing the total usable LRVs to 100. On average, future, their contribution at present is modest and the LRT1 served 409,785 riders daily in 2016. as such they are not covered in this report.

Products and Services

MPIC delivers long-term value to its stakeholders through its operating companies. MPIC sits on the board of all its companies, appoints strong management teams, supporting them with appropriate capital expenditure budgets along with incentive plans to achieve business goals and targets. 10 Sustainability Report 2016 Metro Pacific Investments

Our Sustainability Performance in 2016 Power Toll Roads

GBP net generation 3,157,725 MWh MPIC's Toll Road portfolio consists of toll road assets in the Philippines (NLEX, SCTEX, CAVITEX), MERALCO electricity distributed Thailand (DMT) and Vietnam (CII B&R). at 40,142 GWh Currently 205 km of expressway in the Philippines Approximately 28 Million people served (NLEX, SLEX, SCTEX, and CAVITEX), 22 km in Thailand (DMT), Water and 145 km in Vietnam (CII B&R) Served 550,985 vehicles per day Maynilad is the drinking water & wastewater services provider for the West Zone of Metro Manila

More than 9.5 Million people served (Maynilad and MWIC combined)

Provided 1,366 Million litres of water per day

Hospitals

13 hospitals nationwide Light Rail

Through MPHHI, 2,863,577 patients were served LRMC operates, maintains, and is currently refurbishing, the LRT 1 line.

MPIC will continue investing in the businesses and targets to 100 operating light rail vehicles open 30 clinics by 2021 Ridership for 2016 reached 147.7 Million 11

Power Toll Roads

More than 9.5 Million people served (Maynilad and MWIC combined)

Provided 1,366 Million litres of water per day

Hospitals

13 hospitals nationwide Light Rail

Through MPHHI, 2,863,577 patients were served LRMC operates, maintains, and is currently refurbishing, the LRT 1 line.

MPIC will continue investing in the businesses and targets to 100 operating light rail vehicles open 30 clinics by 2021 Ridership for 2016 reached 147.7 Million 12 Sustainability Report 2016 Metro Pacific Investments

G4-15 Sustainability at MPIC

MPIC’s founders and directors have been investing We believe that each of our businesses is fully in the Philippines for over 30 years, the last 10 attuned to Sustainability. Nevertheless, employing of which have included the Company’s focus on the axiom “what is measured is managed,” we infrastructure. The Company’s infrastructure are seeking to use our reporting to enhance investments support inclusive sustainable our performance. While being mindful that development of the country. “Sustainability” is not we are at the beginning of our Company's a new concept, albeit that structured reporting reporting practice, we will continue to act in to stakeholders and the associated compliance consultation with regard to the best over-all industry surrounding this are new for the business. long-term interests of our stakeholders.

Construction and development of infrastructure enhances the communities we serve and their surrounding areas, thus providing us with MPIC Board of Directors investment opportunity. However, construction activities and heavy infrastructure operations involve safety challenges for employees, contractors and the public. We acknowledge these Corporate Governance challenges and manage them closely. Similarly, it Committee is inevitable that there will be some environmental impact from these activities, which we seek to minimize while being mindful of the economic MPIC Senior realities of our communities. Management

MPIC’s approach to sustainability reflects the values inherent in the governance and conduct MPIC Head Office of our business. These values define us as a Sustainability Company and guide our day-to-day business actions which are ultimately focused on delivering Working Team all-encompassing sustainable growth.

MPIC’s Environmental, Social and Governance (ESG) structure is under the oversight of the Corporate Governance Committee. MPIC and each of its investee companies have formed Sustainability Working Teams (SWT) who gather SUSTAINABILITY WORKING TEAMS and report ESG information while supporting to OF OPERATING COMPANIES initiate new sustainability measures.

Our operating companies are at different stages of evolving their own Sustainability frameworks, ranging from beginning to advanced. The MPIC Head Office SWT is responsible for consolidating the ESG information of the Head Office and its significant operating companies. 13

G4-19, G4-20 SUSTAINABILITY FRAMEWORK MPIC’s Sustainability Framework articulates the Company’s strategic path and approach to doing business in a sustainable manner.

y Se nc rv Optimized Infrastructure Development ie ic Increasing Access to Services c e fﬁ T E E R x Customer Experience Resource Efﬁciency l A c a N e ll Clean Operations n E Investment S e Commensurate Services io G F n t Social Selection and O c a A e Service Continuity Business Continuity r Responsibility Portfolio R e N

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Strategy

Management

Employee MPIC and

Welfare Creating Value

Leadership

Selection for Stakeholders

S e Good

Community Engagement Governance and Risk a Employee Relations and Diversity

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a Ethical Business Management

Educational Support l Health & Safety

Practices r R

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Greening Initiatives Competency & Skills Development

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Disaster Relief & Response Equal Opportunities

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Improving lives through vital infrastructure provision

At the core of this Framework is MPIC’s foremost The catalyst for value creation begins with the Core goal as an investment management and holding Driver of Investment Selection. MPIC recognizes company: creating value for stakeholders. The that in choosing investments, it is more likely to Company itself is therefore primarily focused on achieve its core objective if these investments economic sustainability. are sustainable on a broad range of economic, environmental, social and governance aspects. From this core goal of value creation emanates six Core Drivers that are considered most Pursuing best performance in these Core Driver, the material and significant for MPIC, namely: Company has developed a management strategy Investment Selection and Portfolio Management; for its investments that has proved successful— Strategy Management and Leadership Selection; “Manage, Transform, Grow” which enfolds all the six Risk Management; Good Governance and Ethical Core Drivers of Sustainability in MPIC. Business Practices; Employee Welfare; and Social Responsibility. These Core Drivers are the standards by which the Company measures its performance. 14 Sustainability Report 2016 Metro Pacific Investments

This approach puts in place an effective process of creating value for stakeholders:

MANAGE TRANSFORM GROW

MPIC actively manages its Our overarching objectives are In employing capital from investments through taking to increase customer coverage, all over the world, including control positions, appointing drive operational efficiency and from hard-working Philippine senior leadership, strategy create value for money services savers, we need to deliver setting and regular Board for all our stakeholders. This growth in our business to and Management Committee entails incentivizing leadership allow us to provide good participation. for service and value delivery returns for our shareholders. and providing our business with This is essential in order to the necessary capital. retain private sector capital.

Within the above “Manage, Transform, Grow” strategy, MPIC encourages four areas of good practices among its operating companies: operational efficiency, service excellence, engaged and safe workplace, and social responsibility. Details are discussed in the respective sections of MPIC’s operating companies in this report.

G4-21, G4-25 Stakeholder Relationships

Our stakeholder relationships are illustrated below:

Operating Customers/ Companies Public Capital and Services Leadership

Employees Influences Partners Creditors Investors

Capital Environment and Regulators Creditors Employees Investors Communities

As the holding company for large infrastructure providers, we are cognizant of our indirect stakeholders and understand that they have distinct interests. We recognize them as important to us and their interests are given due consideration whenever the organization makes long-term decisions that impact the business and its future. 15

MPIC’s Direct Stakeholders Operating Company’s Stakeholders

MPIC’s direct stakeholders are its employees, Customers/Public investors and partners, and creditors. The decision MPIC as an investment management and holding of each of these groups to engage with and sustain company is not a direct service provider to the that engagement lies in assessing the quality public. Our services are delivered through our of the regulatory environment in which their operating companies in conjunction with our contributions will be received, and the feasibility of partners. Feedback systems and interfaces with executing the plans for our operating companies. the Group’s customers are managed directly by the operating companies. MPIC regards Employees the Group’s customers as indirectly our most We consider our employees as our most important important stakeholders. Our businesses all exist to investment. Our employees want a safe and serve them as well as possible, and our strategies secure work place that offers career advancement emphasize this. with work-life balance to help them develop and grow as individuals. They want leadership that Many of our investments are in regulated has integrity, transparency and which promotes a monopolies for which pricing, minimum service corporate culture of professionalism and fairness. level and returns to the private sector are governed by concession and franchise frameworks. As such, Investors and Partners Government also has a key role to play in the MPIC’s direct capital investors and partners from overall customer/service/value proposition. our operating companies are primarily seeking clarity on regulation and growth in earnings and Environment and Communities dividends. They require transparency and full Our interaction with the environment and disclosure on any matter that may influence their communities is primarily through our operating decisions regarding the Company. companies. However, MPIC’s investment selection, while mindful of environmental impact, is primarily Creditors geared to what the country and its regulators are Our creditors are taking less risk than our equity willing and able to afford. Governments in affluent providers but usually carrying a much higher economies may be willing to mandate more funding burden and are therefore also seeking environmentally friendly requirements albeit at regulatory clarity and reliable execution. They want higher cost. effective and accountable management that would ensure stability and continued profitability of Creditors the Company. Similar to MPIC’s creditors, our operating companies’ creditors are also interested in MPIC’s Operating Companies regulatory clarity and reliable execution. MPIC’s operating companies are the frontline for service delivery, customer engagement, regulatory Government and Regulators coordination and cash generation to provide Government and regulators set both the returns to our investors. contractual environment in which we operate and the tone and quality of how those contracts are The execution of strategy and service delivery respected and enforced. For the model of private lies in the hands of the capable leadership teams, sector infrastructure provision to be sustainable, management groups and employees in our it is essential that all parties adhere fully to the operating companies, who we endeavor to support contract terms. MPIC conscientiously and diligently with guidance, capital, and a supportive and open complies with all the concession and franchise environment as well as appropriate retention and terms and operating agreements. MPIC and its incentive programs. operating companies also closely coordinate with the national and local government as well as industry regulators, in reviewing contractual agreements and issues. 16 Sustainability Report 2016 Metro Pacific Investments

G4-6, G4-24, G4-26, G4-27 Stakeholder Engagement

We recognize that many of our stakeholders wish to understand both the financial and non-financial performance, objectives, and directions of the Company. For this, as a matter of course (not specifically for this report), we engage with and address the interests of our stakeholders through several platforms, keeping each up to date on the Company’s outlook. Our operating companies, likewise, have similar platforms for their stakeholders who also have various interests. To date, these communications are mainly focused on economic and service level matters.

MPIC’s Direct Stakeholders Avenue for Engagement and Stakeholder Stakeholder Interests Response to Interests Investors and Creditors • MPIC’s performance in terms of • MPIC website delivering expected cash flow and profit • Annual reports • Share price appreciation • Investor updates • Transparency in disclosing plans, • Quarterly presentations strategies and risks • Investor/Analyst presentations • Compliance with contractual agreements • Individual meetings, as necessary • Regulatory concerns of operating companies

Partners • Cash flow and profit performance of • Board Committee Meetings each particular MPIC project • Board Meetings • Representation in regular Board • Individual meetings, as necessary Committees/Board Meetings • Regulatory concerns of operating companies

Operating Companies • Alignment with the expectations • Regular board meetings of MPIC • Annual budget meetings • Funding support for new projects/ • Regular update meetings acquisitions • Regular engagement of Head Office units with their respective counterpart units in the Operating Companies

Government and Regulators* • Compliance with regulations and laws • Compliance with all applicable • Disclosures/standards of reporting laws and regulations • Participation in industry-wide regulatory briefings and for a • One-on-one discussions during project bidding processes

Employees • Engaging work conditions • Employee Engagement • Safe and secure workplace • Safe Working Conditions • Career opportunities • Training and Development • Work-life balance • Health Programs • Transparent, honest and professional • Newsletters leadership

* Philippine Stock Exchange (PSE), Securities and Exchange Commission (SEC), Philippine Competition Commission (PCC), Bureau of Internal Revenue (BIR), Department of Labor and Employment (DOLE), Public-Private Partnership (PPP) Center and other relevant government agencies. 17

Operating Companies’ Stakeholders (Indirect MPIC Stakeholders) Avenue for Engagement and Stakeholder Stakeholder Interests Response to Interests Customers / Public • Service excellence • Operating companies’ websites • Value for money • Customer satisfaction surveys • Awareness campaigns • Press releases • Websites and social media

Environment and • Environmental Impact Assessment • CSR Programs Communities • Safe operations • Awareness campaigns • Operational efficiency • Disclosure of emissions testing • Social responsibility and Carbon Footprinting

Investors • Operating companies’ performance in • Operating companies’ websites Partners terms of delivering expected profit • Annual reports Creditors • Share price appreciation • Investor relation updates • Transparency in disclosing plans, • Quarterly presentations strategies and risks • Investor/Analyst presentations • Compliance with contractual agreements • Individual meetings as necessary

Government and • Compliance with performance metrics • Compliance with all applicable Regulators* • Tariff adjustments laws and regulations • Participation in industry-wide regulatory briefings • Regular discussions Employees • Engaging work conditions • Employee engagement • Safe and secure workplace • Safe working conditions • Career opportunities • Training and Development • Work-life balance • Health programs • Transparent, honest and professional • Newsletters leadership • Contributing to the nation

* Department of Energy (DOE), Energy Regulatory Commission (ERC), Metropolitan Waterworks and Sewerage System (MWSS), Toll Regulatory Board (TRB), Department of Transportation (DOTr), Department of Health (DOH), Department of Environment and Natural Resources (DENR), People's Credit and Finance Corporation (PCFC), Department of Finance (DOF), Local Government Units (LGU) and relevant government agencies. 18 Sustainability Report 2016 Metro Pacific Investments

G4-2, G4-EC2 Sustainability Challenges per Sector

MPIC’s current perspectives as an investment management and holding company on various environmental and social challenges faced by its operating companies are outlined below. These challenges are to be managed primarily by each of MPIC’s operating companies. Maynilad is the most advanced among MPIC’s operating companies in terms of sustainability reporting and sustainability practices, having released its 5th Sustainability Report for the year 2016.

Primary MPIC’s Perspectives as an How MPIC’s Operating Companies Manage Segment Environmental and Investment Management and these Challenges Social Challenges Holding Company Power Investments in These investments are selected The power generation subsidiaries and affiliates coal-fired base load to reflect economic realities of MERALCO and GBP utilize the cleanest possible generation. of the country at this time. technology for the sizes of the plants to be developed. MERALCO’s investments in, and utilization of, coal-fired base load Information on our clean technology projects generation plants are consistent including supercritical coal-fired power plants can with MERALCO’s obligation under be found on pages 40-42 of the Meralco section, its legislative franchise to supply and 52-54 of the GBP section. electricity in the least cost manner. All GBP-owned power plants are ISO 14001:2004 (Environmental Management System) or EMS- certified.

Achieving a balance A reserve capacity market needs Involving the community in all environmental between non- to be developed to support the aspects including employment and welfare renewable and long-term viability of thermal opportunities, where possible, whenever a new renewable sources power plants. power plant is developed. from our current gas and coal dependency.

Water Limited access to clean The Philippines has a plentiful A Water Safety Program (WSP) is in place which water arising from supply of rainfall. The primary continuously addresses the presence of ammonia, weak infrastructure issue is accessing and facilitating iron, manganese, and other contaminants to facilities in the water collection and delivery. deliver safe drinking water to our customers. Philippines (including presence of multiple Water recycling that may be Maynilad continues to evaluate opportunities for contaminants that find practiced in other countries is not water recycling plans. their way into the water deemed an economic solution source) in the Philippines due to high processing costs. Please refer to page 46 of Maynilad's 2016 Informing communities in advance before water Sustainability Report. pipe laying (e.g. digging up streets) and working with them to restore the environment post Most of the assets of the Water construction. Business are underground. Providing for those assets involves digging up streets which is disruptive to the Communities.

Poor sewerage MPIC is facilitating improvement Supporting investment plans that integrate water coverage and via massive capital expenditure resource management with waste management, sanitation in program to address sanitation in environmental stewardship, and human health Metro Manila Metro Manila through Maynilad, issues. This includes construction of sewage with commensurate benefit. treatment plants and septage treatment plants. 19

Primary MPIC’s Perspectives as an How MPIC’s Operating Companies Manage Segment Environmental and Investment Management and These Challenges Social Challenges Holding Company Toll Construction of Toll Toll Roads are efficient and help Manage water run-off in the cleanest possible Roads Roads is by nature, alleviate congestion and improve manner. disruptive to the productivity through reduced environment. transit time. Minimize waiting time at toll booths to reduce wasteful vehicle emissions through increasing use of electronic payment.

Use of environmentally friendly construction materials, always subject to the over-arching cost considerations to the country.

Light Rail Construction of new Light Rail is a more efficient and Rehabilitation of LRVs, signaling and rail rail lines environmentally friendly mode replacement, subject to the over-arching cost of transportation than cars and considerations to Human cost of lengthy should be more fully developed in the country. daily commute in terms Manila. of lost proctivity and Use of new rolling stock which make efficient use passenger health. of electricity.

Better ticketing system and faster services to reduce commuter waiting time.

Hospitals Hazardous wastes Recycling and re-use of materials Linen gowns and drapes used by patients with is limited as the primary goal is to infectious diseases are disposed immediately Efficient use of reduce threat of infection. after use. However, linen gowns and drapes electricity worn by patients with non-infectious diseases are cleaned meticulously before re-use. Accessibility Generally, disposal of Hospital wastes is contracted out to DENR-accredited service companies.

Providing high Upgrade equipment and training Accreditation with Joint Commission standards of patient in the hospitals we invest in. International (JCI) and other international safety and wellness institutions in order to force positive change in existing practices of medical staff. 20 Sustainability Report 2016 Metro Pacific Investments

G4-18 Materiality AssessmenT

In preparing our first Sustainability Report this Core Drivers of MPIC year (2016) we have made reference to the GRI-G4 MPIC has identified and prioritized the following Reporting Guidelines. Core Drivers for the Company and its stakeholders as duly reflected in our Sustainability Identify Framework: Material topics are identified based on activities that are critical to the operations of MPIC as an Investment Selection and Portfolio investment management and holding company. Management MPIC’s rigorous processes for investment selection Prioritize and portfolio management are the fundamental Identified topics are ranked according to what we activities that drive MPIC’s success today. The believe are material to our stakeholders and to the boldness and vision of our founders and their Company, as shown in the foregoing section. We discipline in providing professional management refer to our material aspects as "Core Drivers". to convert challenging prospects into profitable enterprises are key to the Company’s sustainable Verify growth and viability in the long-term. The identified material aspects are vetted with and approved by the Board of Directors to ensure Strategy Management and Leadership Selection alignment with MPIC’s vision and mission. MPIC’s ability to deliver on post-investment operational plans is essential to further business Review development. As such, MPIC places much MPIC’s performance in terms of its identified importance on original strategy setting and the material aspects (also known as our "Core Drivers") selection and appointment of strong leadership is reviewed regularly by the Board of Directors. teams to our operating companies. 21

Risk Management Employee Welfare MPIC believes that having a robust risk MPIC respects and values its employees and management strategy and system is essential to provides an engaging and enabling work business sustainability. Safeguarding investments environment where the potential of its people with an eye for opportunities and growth means is developed and realized. Employee well-being leadership perspective must be broad, intelligence ranks among MPIC’s topmost priorities and the deep and reliable, and risk management systems Company has a continuing process of building comprehensive yet flexible. and improving a culture of meritocracy and reward for performance. Good Governance and Ethical Business Practices Social Responsibility MPIC invests in long-term infrastructure MPIC espouses inclusive growth. Beyond developments that are sustained through the fundamental infrastructure, the Company looks practice of good governance. Good governance to provide communities it operates in with directs the day-to-day conduct of our affairs, opportunities for growth and upward mobility. provides expertise, and steers the growth of the The key focus areas for its social responsibility Company and our subsidiaries. Competent and programs are education, environment, economic professional management practices must be as empowerment and disaster relief. sound and dependable as the infrastructures we develop. The Company conducts business in a fair Detailed discussions on these Core Drivers are on and ethical manner, and promotes its corporate pages 24-35 of this report. values of accountability, integrity, fairness, and transparency to all its operating businesses. 22 Sustainability Report 2016 Metro Pacific Investments

G4-9, G4-DMA, G4-EC1 Creating Value for Stakeholders

2016 marked MPIC’s tenth year of being a listed TEN YEAR CONSOLIDATED company in the Philippines. Looking back at its ten-year performance gives context to the PERFORMANCE Company’s remarkable growth story amidst a challenging business environment of constant changes in both local and global markets.

MPIC’s consolidated core income of ₱12.1 Billion Revenues was 17% higher than that of the ₱10.3 Billion in (in Billions of Pesos) 44.8 2015. This growth is attributed to several factors, 37.2

including: robust traffic growth on the roads 33.8 30.9

held by MPTC, expansions in the power portfolio 27.8

through increased investment in Beacon Electric 22.1 18.6 16.1 Asset Holdings Inc. and GPB, continuing growth 5.0 in the hospitals group, first full-year contribution 0 from LRMC, and a profitable entry into the 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Logistics sector.

Core Income Consolidated Economic Performance of (in Billions of Pesos) MPIC Group 12.1 10.3

Amount 8.5

Key Financial Data 7.2

(in Billions of Pesos) 6.6 5.1 2.0

Consolidated Revenue 44.8 3.9 0.3 0.03 Core Net Income 12.1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Core Expenditure 40.5

Taxes Paid to 27.5 Reported Income Government* (in Billions of Pesos) 11.5

Total Assets 351.6 9.5 7.9 7.2

Diluted Earnings 5.9

38.06 centavos 4.4 per Share 0.5 2.9 -0.1 2.3

Dividends per Share 10.00 centavos 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

*Net of pass through taxes 23

TEN YEAR CONSOLIDATED PERFORMANCE (Continued)

Diluted Earnings per Share Total Consolidated Equity

(In Centavos) (in Billions of Pesos) 188.0 38.1 150.8 34.5 14.2 27.7 30.4 129.6 23.9 10.1 19.1 18.0 113.3 94.4 86.4 65.3 26.7 60.3 -22.0 3.1

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dividends per Share Market Capitalization

(In Centavos) (in Billions of Pesos) 209.8 10.0 9.3 145.0 6.3 119.8 112.4 109.5 90.0 78.4 3.7

19.0 3.2 50.6 2.5 2.5 5.9

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Consolidated Assets (in Billions of Pesos) For more details of the Group’s economic 351.6 performance, please refer to our 2016 Audited 302.2 Consolidated Financial Statements in the MPIC

234.0 2016 Annual Report. The report is available at our 200.6

173.5 website, www.mpic.com.ph. 160.2 131.4 129.4 91.6 12.1

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 24 Sustainability Report 2016 Metro Pacific Investments

Core Drivers of MPIC

MPIC’s economic performance over the ten-year period is one of the key measures of the Company’s commitment to Sustainability and its Sustainability Framework for which the core goal is “creating value for stakeholders”.

However, it is also MPIC’s performance of the below drivers that laid the foundation for future progress.

Investments Selection Strategy Management and Portfolio and Leadership management SELECTION

MPIC invests in underperforming or incomplete Crucial to MPIC’s strategy management is infrastructure that it can rapidly add value to the selection of qualified leaders who will through expansion and construction, resolving execute the post-investment operational plans regulatory bottle necks and enhancing operating for our investee companies. These leaders performance. Through this, MPIC delivers should have a strong and extensive track improved service and good value to the public, record of success and share the Company’s achieves near-term capital value appreciation, values. The Senior Management teams of and in the longer term as the infrastructure is the operating companies oversee the day- optimized, delivers a high inflation protected to-day operations of the investee companies dividend stream to its investors. and in turn report to the MPIC Senior Management Team, for relevant updates. MPIC invests in the best possible infrastructure provision within the limitations of what the In 2016, MPIC invested further in country can afford. This includes embracing the following segments: coal-fired power generation (albeit with the Investment cleanest technology), building toll roads Sector to acceptable construction standards with (in Billions of Pesos) minimal environmental degradation, and Water 3.00 utilizing affordable technology for supplying drinking water and providing wastewater Power 24.74 and sewage treatment services. Toll Roads 0.57

The due diligence process for all investments Others 2.08 incorporates relevant sustainability considerations. Total 30.39 In addition to the operational and asset upgrades that underpin our strategy, the most frequent post investment sustainability changes that MPIC drives through are regularization of employment terms and enhanced health, safety and security practices. 25

MPIC’s performance on this aspect is reflected in the growth of its operating companies in the different industry segments. Please see below:

SHARE in operating core income (in Billions of Pesos) 7.23 4.82 4.38

3.79 3.56 3.55 4.54 3.10 2.39 3.03 2.33 2.21 1.54 1.69 0.32 1.49 0.21 0.11

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2009 2010 2011 2012 2013 2014 2015 2016 WATER POWER *Expiry of income tax holiday 0.82 3.52 2.83

0.58 0.51 2.24 0.45 0.44 1.87 1.57 1.46 1.43 1.28 0.25 0.17 0.17 0.16 0.01 0.11

2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TOLL ROADS HOSPITAL/RAIL/OTHERS 26 Sustainability Report 2016 Metro Pacific Investments

G4-2, G4-14, G4-EC2 Risk Management

MPIC recognizes that risk is present in all business • The MPIC Department Heads have activities and that the successful management of accountability for and ownership of assigned risks is a critical factor in optimising stakeholder risks including communication of progress on value. As such, MPIC has developed an Enterprise risk management strategies and action plans. Risk Management (ERM) program to identify, Together with the Chief Risk Officer, they evaluate, address, report and monitor key risks of are responsible for ensuring that emerging the business. risks to which they are exposed are identified and reported appropriately to the Senior In accordance with MPIC’s ERM policy, everyone is Management team of MPIC. expected to understand the risks that fall within their respective areas of responsibility and to • All MPIC employees are responsible for manage these risks appropriately. Below is a maintaining awareness of the intrinsic risks in summary of the allocation of risk responsibility their responsibilities. They are responsible for within MPIC: communicating to their supervisors any key risks that they become aware of, especially the • The Board, through the Risk Management risks that are beyond their control. Committee (RMC), performs the oversight function for the Company’s risk management • The Company’s Internal Audit is tasked process. It reviews and approves MPIC’s ERM to conduct periodic audits to ensure risk Policy and any modifications thereto, including management and that the Company’s risk the Company’s risk appetite. management practices are in accordance with the approved Policy. • The Senior Management team of MPIC, comprising of the President and CEO and the Key risks associated with the Company’s business Chief Financial Officer, are the ultimate risk are discussed in detail on pages 102-105 of MPIC’s executives responsible for ERM priorities. They 2016 Annual Report. review the ERM framework to ascertain the adequate allocation of resources and staff MPIC is in the process of formally defining requirements of the ERM unit. They also guide sustainability risks and related management the Chief Risk Officer by providing high level approaches. These will be included in our ERM strategies and action plans. 2017 report.

• The Chief Risk Officer designs and oversees the entire risk management framework and related ERM Policy, including advocating the adoption of the salient provisions of the Policy across the Company and by MPIC operating companies. 27

G4-34 Good Governance and Ethical Business Practices

Good governance enables a strong performance Board is necessary for conformance to the even in challenging times. What makes governance highest standards of corporate governance good is fidelity to the corporate vision-mission and ethical business practices. and an unwavering commitment to its realization. Safeguarding sustainability demands an MPIC’s Board is composed of 15 directors at any experienced management team armed with clear given time. Our Board is diverse, comprising of policies and standard processes that guide the day- leading industry professionals whose experience to-day functions of the organization — determining and expertise have direct bearing on all high level accountability and ensuring transparency. decisions made.

The calendar of the Board and Committee MPIC Board of Directors meetings is set at the beginning of each year, and the agenda for each of these meetings is The Board directs our corporate governance clearly communicated to the members in a timely and practices on how Management delivers manner to allow them time to prepare. Any Board on the long-term interests of stakeholders. Member may elevate matters for consideration at MPIC believes that a cohesive and objective any time.

Date of first appointment/ Attendance in 2016 Director Current Position election Board Meetings

Manuel V. Pangilinan Chairman of the Board March 2006 6/7 Executive Director / Jose Ma. K. Lim March 2006 7/7 President and CEO Executive Director / David J. Nicol May 2010 7/7 Chief Financial Officer Augusto P. Palisoc, Jr. Executive Director March 2006 7/7 Ray C. Espinosa Non-Executive Director November 2009 6/7 Ramoncito S. Fernandez Non-Executive Director June 2009 7/7 Robert C. Nicholson Non-Executive Director November 2009 7/7 Artemio V. Panganiban Independent Director August 2007 7/7 Lydia B. Echauz Independent Director November 2009 7/7 Edward S. Go Independent Director July 2006 7/7 Washington Z. SyCip Independent Director August 2011 7/7 Alfred V. Ty Non-Executive Director November 2015 6/7 Albert F. Del Rosario Non-Executive Director May 2016 4/4 Rodrigo E. Franco Non-Executive Director May 2016 3/4 Francisco C. Sebastian Non-Executive Director June 2016 1/1 Edward A. Tortorici Executive Advisor November 2009 2/4 Antonio A. Picazo Corporate Secretary March 2006 3/3 Victorico P. Vargas * NIL May 2011 2/3

*End of term as Non-Executive Director: May 2016 28 Sustainability Report 2016 Metro Pacific Investments

G4-34 Board Committees

Several committees have been established to help and practices, including regulatory and ethical the Board oversee and evaluate the performance compliance monitoring. The Committee considers of the Company and management. MPIC has 5 the risk exposures of the Company and evaluates regular board committees, namely: Corporate the steps the management is taking in managing Governance Committee, Audit Committee, Risk and controlling such exposures. Management Committee, Nomination Committee and Compensation Committee. Nomination Committee The Nomination Committee is responsible All Board Committees are chaired by Independent for vetting and recommending members for Directors. nomination to the Board of Directors, including membership in the various Board Committees. Corporate Governance Committee The Corporate Governance Committee ensures The Nomination Committee has the authority to the overall governance framework is robust and utilize professional search firms or other external compares favorably to best in class practices. sources when searching for candidates to the An integral part of this is the annual review and Board of Directors pursuant to its Charter. The implementation of the Company’s Revised Manual Nomination Committee regularly meets prior on Corporate Governance and sponsorship of to the timetabled Annual Stockholders’ Meeting any improvements for the Board of Director’s to review the qualifications of the individuals approval. Pursuant to the mandate of its Charter, nominated as the Corporation’s regular and the Corporate Governance Committee designed an independent directors. Particularly for the latter, orientation program for new directors to brief and the Committee assesses the independence of the update them on important details and processes Independent Directors. relating to the Company’s board committees and the dealings of the Company with its investors and Compensation Committee business partners. The Compensation Committee directly oversees compensation and bonuses of senior executives Audit Committee and overall compensations framework for all The Audit Committee has oversight of financial employees. It ensures bonus targets are set reporting and internal controls of the Company. appropriately and management is motivated It is responsible for recommending the external for the long term. As mandated by its Charter, auditor and ensuring that non-audit work does the Compensation Committee also exercises not compromise their independence. The Audit functional oversight on matters relating to the Committee also supervises the Internal Audit areas of leadership development, including— function and approves its scope of work. but not limited to—the development and administration of leadership/succession. Risk Management Committee The Risk Management Committee assists the For further information about the Board, the Board in fulfilling its oversight responsibilities for Board Committees and our Manual of Corporate the Company’s enterprise risk management policy Governance, please refer to www.mpic.com.ph/ and execution of risk management strategies corporate-governance. 29

G4-34 Ethical Business Practices

Ethical Business Practices make up part of the document for all employees. Regular review, commitments of each MPIC employee including update and distribution of the document is made directors and officers. This encompasses the by management as deemed necessary. expected and permissible behavior in various business dealings which are guided by the Code MPIC employs a Whistle-blowing Policy as an of Business Conduct and Ethics and our Whistle- internal control mechanism which affords blowing policy. employees with a clear and confidential reporting framework without fear of retaliation for situations The Code of Business Conduct and Ethics is where there is serious risk of misconduct, a public document accessible through our malpractice or irregularity by the Company or any company website and forms part of our employee of its employees. Through this Policy, employees orientation process. are encouraged to raise their concerns internally and do so in a responsible and effective manner. MPIC holds a strict no tolerance policy on This Policy is applicable to all employees of the corruption as covered by the Company’s policy Corporation and its subsidiaries, within or outside on honest and fair business dealings which is the Philippines. articulated in the Code of Business Conduct and Ethics. This Code, as well as other policies, The Company regularly reviews policies and makes is included in the Employee’s Manual which amendments or augments as necessary to strengthen is distributed as a guidance and adherence alignment with the company’s business direction.

Employee Welfare

“Since joining in 2009, I have considered MPIC as my second home…Everyone is approachable —from the staff to the big bosses. Management recognizes the individual contributions of the employees in attaining company goals... I believe that the Company puts the development of skills and competencies of its employees as one of paramount importance. We have the Continuing Education Program where we can take post-graduate studies and certifications related to our jobs. The Company also sends us to different trainings and conferences, here and abroad” Mr. Jilmar S. Villalon MPIC Finance Department

MPIC’s rapid growth as a company in the past MPIC relies on its people for its continued success. ten years is a reflection of effective human Since 2007, the number of employees in the MPIC resources management that has been able to hire Head Office has increased from 16 to 49. employees who are capable of exemplary work and performance and who “fit” in the company culture. 30 Sustainability Report 2016 Metro Pacific Investments

G4-9, G4-10, G4-EC5, G4-LA2, G4-LA12

Executives by Gender Employees by Gender Employees by Rank Employees by Age Range

7 8

11 9 11 15

29 20

17 29

Male Rank and File Over 50

Female Supervisors 30 to 50

Managers Under 30

Executives

Almost 60% of employees are female which MPIC provides compensation and benefits that is reflected in the leadership with women are at the upper end of industry standards if all occupying about 77% of management positions objectives are being met. MPIC’s regular employees and around 47% of executive positions. are provided industry allowances, paid leaves, life MPIC values diversity and promotes gender and accident insurance, and a retirement plan. It equality throughout our organization. is important to MPIC that employees know they are the Company’s most valuable investments. MPIC’s culture encourages open communication across the organization. For MPIC employees, HR conducts employee surveys annually (before it is essential to have clarity in their professional our Company team building exercises) in order to development and career track. Employee address developing issues, concerns and areas of engagement programs continuously evolve in the dissatisfaction. pursuit of the right mix that will most effectively help bring about employee satisfaction and well-being. 31

G4-DMA Employee Engagement Activities

MPIC provides various avenues for employee Clubfest engagement throughout the year. These programs MPIC fosters holistic development through the are developed and continuously improved to encouragement of extra-curricular activities encourage personal development, as well as to amongst our employees. The Company provides foster teamwork. employees an open opportunity to form clubs in conduct of shared interests and hobbies (e.g. Training Programs badminton, basketball, bowling, target shooting, MPIC provides training for soft skills development, among others). with functional training determined per department. In 2016, the Company conducted the 4th run of Thank God It’s Friday (TGIF) its business communication series and a new Begun two years ago, this program was a Friday program using the Hermann Brain Dominance social event for all employees — to unwind and Instrument or HBDI, a system used to measure socialize. The program was relaunched in 2016 as and describe thinking preference in people. Also, a once a month event that offers non-work related significant for 2016 was the Mini MBA for Emerging workshops, such as calligraphy, photography, Managers, which was facilitated by a contracted brush lettering, and wine tasting. training and development company and was attended by supervisors and junior managers. Flabs to Abs This is a three (3) month contest program Annual Team Development Program developed to encourage the adoption of a fit and Our workforce is one team. This program builds on healthy lifestyle by our employees. Weight loss strengthening employee interactions and relations relative to body composition is the criteria for through leisure and team-building activities. The declaring the winner, with bragging rights and a program also promotes high morale among cash incentive as prizes. Flabs to Abs has already employees through cross functional assignments as been repeated for another quarter in 2016 and they work with different peer groups. earmarked for a repeat in 2017.

Halloween Party The family-centric culture of the organization is highlighted in this event. It features a Trick-or-Treat activity open to the children, nieces, nephews, and grandchildren of employees and has historically attracted high attendance of participants.

Christmas Party and Service Awards The annual Christmas Party is a highly anticipated event throughout the Company. This is when the Company acknowledges the achievements for the given year and employees who continue to be with MPIC through its many achievements. This is when the organization also formally welcomes new employees. MPIC Team Building Activity 32 Sustainability Report 2016 Metro Pacific Investments

G4-EN3, G4-EN8,G4-EN16, G4-SO1 SOCIal responsibility

MPIC's corporate social responsibility (CSR) projects are far-reaching and make a positive contribution to many beneficiaries. The main areas of focus for the company's CSR projects are Education, Health and Community Development.

While the environmental impact of our Head Office, consisting of 49 employees, is minimal, MPIC remains conscious of the impact of our operations with mitigation activities in place.

Students of Mano Amiga

G4-EN3, G4-EN8, G4-EN16 Environmental Performance Water consumed by the office, as well as solid waste generated, is measured as a whole for the As the functions and operations of MPIC building in which MPIC leases space. As such, there Head Office are largely office-based, resource is no available separate data specific to the MPIC consumption is limited and environmental impact Head Office. is often indirect. Nevertheless, this report aims to monitor the environmental performance of MPIC’s G4-S01 Head Office operations. MPIC Foundation

For 2016, the MPIC Head Office consumed a total The Metro Pacific Investments Foundation (MPIF) is of 55,228 kWh of purchased electricity. Associated an investing Company geared towards three fronts greenhouse gas (GHG) emissions from this of Social Infrastructure: Excellent Education, amount of energy equates to 33 tons of carbon Environment and Economic Empowerment. dioxide equivalent. In line with MPIC’s commitment to responsible 33

corporate citizenship and nation-building, MPIC has Amiga schools, though Mano Amiga Philippines is implemented programs benefitting communities, currently the only one outside of Latin America. organizations, families and individuals in the areas in which MPIC portfolio companies operate. MPIC has been a quiet partner of Mano Amiga Philippines since it began its operations in Through MPIF, the Group also extended its support September 2008. Through the years, MPIC to various advocacies, which include promoting has helped cover operational costs including Filipino music and arts through Philpop, and salaries of a staff of ten, eight of which are highly continued public service through TV5’s Alagang technical teachers. Kapatid, tree planting, and beautification projects. MPIC employees also volunteer by helping provide The Foundation also donated sacks of rice to Mano Amiga students with school supplies, different beneficiaries, as well as school bags and books and uniforms. They also help with part- supplies to the “Faith Hope Love Kids Ranch”, time personal coaching of the students. With the and medicine kits to cancer-stricken children full support of MPIC’s management, this project through a private initiative “Portraits of Love”. MPIC blossomed into a much more tangible and high- also partnered with the Philippine Agricultural impact involvement. Journalists to support their nationwide climate In 2011, MPIC and Mano Amiga started an annual change campaign. Endowment Fund that ensured 30 children would get the full benefit of the education on offer. Highlights These 30 students receive excellent primary and • Mano Amiga began in 2008 with MPIC secondary education through a scholarship that employee-volunteers covers per-pupil operational expenses of the • Since 2011, number of scholars doubled school as well as miscellaneous fees and expenses • In 2016, MPIC donated ₱10 Million to on student enrichment activities. In addition, establish a new campus the grant provided for sponsorship of teachers’ benefits and training opportunities.

Excellent Education The school’s infrastructure needs resonated deeply Mano Amiga is an institution that provides with MPIC for whom quality education is a primary international-standard education to its students CSR advocacy. In 2016, looking to further support who are all scholars from underprivileged families. the school’s growth, MPIC made a ₱10 Million donation for the establishment of a new Mano This is the unique thrust of the school which is run Amiga campus which is expected to accommodate on the pillars of committed teachers, personalized almost 1,000 students in a full K-12 educational attention, home and family support, and integral system. formation. It is known for producing alumni who are outstanding academic achievers on par with The permanent campus will also serve as the the graduates from the best schools within their pilot campus showcasing the school’s unique country locations. Over 90% of the students and innovative approach to a quality and holistic complete their high school education and go on education, to demonstrate for local government to university or technical school. Globally, more units and other institutions the potential of scaling than 22,000 children are served through 38 Mano up the Mano Amiga model. 34 Sustainability Report 2016 Metro Pacific Investments

Environment

Siargao has approximately 8,600 hectares of Highlights mangrove cover — the second largest in Mindanao • 8.7 Hectares of Mangroves Protected — and 4,000 hectares of contiguous mangrove • 2 Mangrove Centers stand in Del Carmen, the largest in the Philippines. • 7 Locations Nationwide This mangrove forest is also home to 44 of the 54 • 137 Families Assisted mangrove species worldwide. • 300 Partner Organizations • Nearly 100 divers The M.P.I.C. is envisioned to become the center • Nearly 700 volunteers for the protection and propagation of mangrove • Over 1,000 Junior Environmental Scouts trees in coastal estuaries across the three major areas of the Philippine archipelago. At the same time, it aims to serve as an information hub while Shore-It-Up (SIU) is a high visibility national also providing economic opportunities for its clean-up campaign raising awareness on surrounding communities. the state of the country’s seas, oceans and other water bodies. As MPIF’s environmental A second M.P.I.C. facility was launched in Alaminos, program, SIU aims to promote underwater and Pangasinan in February 2016. This structure coastal clean-up as its core activity while also oversees an 8.17 hectare mangrove area near the advancing environmental rescue, restoration Lingayen Gulf. The center is tasked with developing and revival activities such as mangrove planting, mangrove nurseries, the multiplication and tree planting, giant clam seeding, giant clam planting of mangrove trees in coastal estuarine moving, and artificial reef installations. areas, the rehabilitation of degraded mangrove ecosystem, and more. The facility aims to help Begun in 2009, SIU has become the longest- fisherfolk-families and local officials to sustainably running corporate-backed environmental program reinvigorate the coastal marine ecosystem of in the Philippines and effectively combines the Alaminos, Pangasinan and uplift the economic and passion of some of the MPIC staff for scuba diving socio-cultural life in the area. with environmental clean-up. Today, the program has grown beyond coastal clean-ups and has set MPIF is preparing a third M.P.I.C. facility to rise its sights on the greater task of environmental soon in the Visayas. sustainability with its Mangrove Protection and Information Center (M.P.I.C.) established in Del Carmen, Siargao Island. 35

Economic Empowerment Tulong Kapatid Initiatives

Highlights Highlights • 25 Households assisted by Manpower for Tulong Foundation Programs: Infrastructure Cooperative • Disaster Preparedness • Beneficiaries are now skilled in Masonry, • Disaster Response Carpentry, Plumbing, Electrical Lining, • Recovery and Rehabilitation Construction • Medical and Social Services

In partnership with Philippine Business for MPIF is also an active partner of the MVP Group of Social Progress, the largest corporate-led social Companies’ Tulong Kapatid and its programs that development foundation in the Philippines provide assistance and aid to those most in need committed to poverty reduction, MPIF promoted in times of disasters. Tulong Kapatid programs entrepreneurship and employability by assisting include Disaster Preparedness, Disaster Response, some 15 households from the center of Ana Maria Recovery and Rehabilitation, and Medical and Island Community in Quezon City, with a project Social Services. aiming to augment the community’s income through the establishment of a manpower service as operated by their own cooperative.

In 2015, PBSP reported the completion of the project, with the beneficiaries successfully putting up and registering their own cooperative. The project involved cooperative organizing, potential market identification, capability building, and provision of tools and equipment to start the business. MPIC- and PBSP- accredited coaches provided participants with training on capability building, community investment, and employment opportunity.

Another MPIF initiative with PBSP was a grant providing support to their Strategic Private Sector Partnerships for Urban Poverty Reduction Program (STEP UP) initiative that aimed to organize a manpower group in Brgy. Calamansian, Caloocan City. POWER

38 Sustainability Report 2016 Metro Pacific Investments

MERALCO

Manila Electric Company (MERALCO) is distribution and energy management services, the largest private electric distribution utility and communications, information systems and Company in the Philippines. The Company technology services through its subsidiaries. commemorated 113 years of service in 2016. It is also developing power generation plants MERALCO provides electricity to approximately 28 through wholly-owned subsidiary, MERALCO Million people in 36 cities and 75 municipalities PowerGen Corporation (MGen). Through in a franchise area covering 9,685 km2 that MGen, MERALCO has a minority equity includes Metro Manila, the provinces of Rizal, interest in a power generating company, Cavite, Bulacan and parts of the provinces of Global Business Power Corporation (GBP) and Pampanga, Batangas, Laguna and Quezon. PacificLight Power Pte Ltd. (PacificLight). The franchise covers the core of the country’s industrial, commercial and residential centers. MERALCO is listed on the Philippine Stock Exchange (PSE: MER). MERALCO has one of the largest Its service is primarily power distribution which market capitalizations in the Philippines. As of end- consists of operations of MERALCO and its 2016, MPIC’s effective ownership was at 41.2%. 65%-owned subsidiary, Clark Electric Distribution Corporation (CEDC), that is a registered private MERALCO’s 2016 Consolidated Core Net Income distribution utility serving exclusively within its (CCNI) reached ₱19.6 billion, 4% better than franchise area including the Clark Freeport Zone. in 2015. Consolidated Reported Net Income stood at ₱19.2 billion, marginally higher than For 2016, MERALCO’s consolidated customer count in 2015. Core earnings per share was ₱17.37, was at 6,038,407, increasing by 4% from 2015. while reported earnings per share was ₱17.01. The number of residential customers increased by 5% with 5,537,268, accounting for 92% of the Several factors such as election expenditures, total while commercial customers grew 3% with soft fuel (oil, gas and coal) prices, and relatively 486,377, accounting for 8% of the total. Industrial stable power supply provided an ideal setting customers grew 2% with 10,138 or less than 1% for growth in energy sales, operating excellence, share of the total. Streetlight accounts numbered enhanced profitability, and financial strength less than 1% share with 4,624 customers. of the Company. Customers benefited as well, as the average 2016 generation charge Aside from distribution, MERALCO also was at its lowest in 12 years since 2004 provides engineering, design, construction and the average retail electricity rate to and consulting services, bill collection services, customers was at its lowest in 11 years.

Customer Type (in thousands)

Residential Commercial Industrial Streetlights 2015 2015 2015 10 2015 5,296 474 4 2016 2016 2016 2016 5,537 486 10 5 Power 39

G4-EN3, G4-EN5 SUSTAINABILITY HIGHLIGHTS

2015 2016 Total Customers 5,784,119 6,038,407

• Customer count in 2016 Total Energy Sales increased by 4% from 2015 37,124 GWh

• Sales per employee ratio 40,142 GWh (SPER) increased by 10%

• Customers served per Customers served per employee ratio employee increased by 6% 1,022 1,084

System Average Interruption System Average Interruption Frequency Index (frequency) Duration Index (minutes)

2.43 54.68 min

2.18 58.47min

System Loss Total Electricity Consumption (Regulatory cap at 8.5%) for MERALCO facilities

Total Scope 1 58,886,835 kWh GHG Emissions Energy intensity 31,857 tCO2e and Scope 2 GHG Emissions 74 kWh / sqm

548,539 tCO2e 6.47% 6.35%

Capital Expenditures (CAPEX)

₱11.3 Billion ₱11.6 Billion

*Energy intensity computed as: • Total consumption of Business Centers, MERALCO Operating Center, Substations and Sector Offices/Total floor area sqm of Business Centers MERALCO Operating Center, Substations and Sector Offices • Not part of the scope are consumptions of Mobile stations’ service equipment; temporary station service; open space storage; telecomms repeater station; rented extension office or kiosk; staff house and special line equipment. 40 Sustainability Report 2016 Metro Pacific Investments

Operational Efficiency

With a strong resolve in its collective thrust The System Average Interruption Frequency towards customer centricity, MERALCO developed Index (SAIFI), System Average Interruption a clear road map for driving energy and customer Duration Index (SAIDI), and system loss rates growth, and sustainably raising customer were at all-time best levels. Total SAIFI improved satisfaction. This includes a comprehensive by 10%, or to 2.18 times from 2.43 times in customer experience transformation program, 2015. Total pre-arranged SAIDI was at 54.68 aimed at making customer experience minutes, down by 6% compared with 58.47 with us “simple, fast, and convenient.” minutes in 2015. Performance for both metrics was attributed to sustained significant capital The road map to the future also includes expenditures (CAPEX) in the MERALCO sub- transformations and technological innovations transmission and distribution systems, and among power utilities — the smart grid, where the operating excellence of Networks, Customer power and telecommunications grids converge. Retail and Shared Services organizations.

A major milestone in the digital transformation These CAPEX and related operating expenses journey is the rollout of the Advanced (OPEX) included storm-hardening projects such Distribution Management System (ADMS), a as replacement of ageing poles, extensive use core platform in a smart grid. ADMS provides of covered conductors and fiberglass cross- the capability to automate outage restoration, arms, improvement of lightning protection optimize network performance, deploy systems, and installation of remote-controlled more smart meters, accommodate more line sectionalizing devices. Such efforts renewables, and integrate new technologies. benefited customers with higher service availability and reliability, power quality, and Supporting these plans was an ₱11.6 billion less and shorter power interruptions. capital expenditures (CAPEX) budget which was intended for load and customer growth, MERALCO achieved its record-best system loss network infrastructure upgrading, storm level at 6.35%, well below the 8.5% regulatory hardening and resiliency, customer service, cap. The 2016 performance improved by safety and security in the franchise area. 0.12 percentage points over 2015, and is 2.15 percentage points lower than the regulatory cap Electric capital projects included eight (8) imposed by the ERC. The year’s system loss rate substation projects, one (1) subtransmission resulted in cumulative savings of ₱26.9 billion line project, and 29 other significant and for MERALCO customers, or an average of ₱0.09 residual projects, which increased MERALCO’s per kWh since 2008. CEDC system loss similarly substation capacity by 531 MVA and primary ended the year with its lowest-ever level at 3.59%. line length by 67 kilometers, bringing the substation capacity to 17,198 MVA and total The road map to the future also includes circuit line length to 18,013 kilometers. transformations and technological innovations amongst power utilities — the smart grid, MERALCO also relocated 803 poles where the power and telecommunications grids and accessory attachments affected by converge. public and private partnership (PPP) infrastructure projects, including road Investments in the power generation sphere widening projects of the Department of is strategic to MERALCO’s ability to fulfill its Public Works and Highways (DPWH). mandate to ensure the provision of adequate, Power 41

reliable, and competitive power supply to the planned commercial operations (COD) in growing number of customers in its franchise 2019; (ii) Redondo Peninsula Energy, Inc. (RP area and as well, to the rest of the Luzon Grid. Energy), a 2x300 MW circulating fluidized bed (CFB) power plant in Subic, Zambales, with a In 2016, MERALCO sourced 42% of the energy COD in 2020; and (iii) a 2x300 Atimonan One distributed from natural gas plants, while 38% Energy Inc. (A1E) a 2x600 MW ultra-supercritical was sourced from coal-fired plants. The balance coal-fired power plant in Atimonan, Quezon, was multi-fuel, which included purchases the first power plant in the country to use from the Wholesale Electricity Spot Market, such technology, with a COD in 2021. the fuel source of which was a combination of geothermal, hydro, coal and biomass plants. Investments in modern and more efficient coal- powered plants that will use supercritical and In 2012, MERALCO decided to re-enter power ultra-supercritical technology will require less generation as part of its strategic investment coal per kWh of electricity resulting in lower plan. Recognizing its franchise obligation of emissions and lower fuel costs per kWh. delivering adequate and reliable power at least cost, Meralco, through MERALCO PowerGen MERALCO has also been exploring renewable Corporation (MGen) began development of coal- energy technologies including wind, solar, fired plants using the latest technology which biomass and hydroelectric power through MGen addresses environmental concerns. The additional and a wholly-owned subsidiary, MSpectrum, capacity is likewise pivotal to helping the economy Inc. MSpectrum, Inc. signaled MERALCO's continue its growth at its current trajectory. formal entry into the solar energy space and other technologies through partnerships, Meanwhile, MERALCO subsidiary MGen as part of its commitment to sustainability is building a portfolio of new, highly fuel- and responsible corporate citizenship. efficient and highly-reliable power generating facilities of up to 3,000 MW to support growing electricity demand of Luzon. In line with the G4-EN23 country’s long-term vision under Ambisyon Natin 2040, the Department of Energy (DOE) Hazardous solid Hazardous liquid forecasts electricity demand in Luzon to grow at waste waste annual average of 5% or three times the 2016 level of 9,726 MW by 2040. To meet demand projections, Luzon will need an additional 24,385 MW of generation capacity by 2040. The new plants will contribute approximately 0.015 MT 916.74 MT 12% of the additional generation capacity. busted florescent lamps used motor oil and transformer oil 12.662 MT These include the (i) San Buenaventura Power used lead acid batteries Ltd. Co. (SBPL), a 455 MW power generation 701 kg medical wastes plant in Mauban, Quezon, the first supercritical 916.74 MT used oil coal-fired power plant in the Philippines with 42 Sustainability Report 2016 Metro Pacific Investments

G4-PR5 Service Excellence

MERALCO continues its transformation into a Customer Satisfaction Index Results highly customer-centric organization providing reliable services to customers with sustained Segments 2015 2016 upgrades in quality, competence, and performance Residential 8.13 8.19 culture. The Company brought down the number General Services 7.99 8.36 of employees to 5,569 at end-2016 from 6,203 in Local Government Units 8.05 8.44 2010, while achieving significantly more electricity sales and serving significantly more customers, Businesses 8.13 8.35 indicative of continuous record productivity. Corporate 8.29 8.35 National Government The Company is also in the process of 8.05 8.21 Offices updating its Customer Management System (CMS), the central repository of all customer Overall 8.18 8.29 transactional records, and replacing it with a robust Customer Information System (CIS). Key projects in 2016 included: The change to CIS, which had already been approved by the Energy Regulatory Commission Energizing Partnerships. With the Energizing (ERC), utilizes new technologies and bring partnerships program, Local Government MERALCO’s data capture system forward. Once Units (LGUs) work with MERALCO for smarter full migration to CIS is complete, customers strategic planning and direct the resources can expect initial service improvements such of the cities and municipalities for concrete, as a more informative billing statement, better effective, and sustainable projects that benefit handling of customer concerns, and account- citizens. The distribution utility also assists based handling of payments and credits. LGUs to ensure that progress is enjoyed across all homes in the city or municipality through MERALCO conducts surveys of customer its community electrification program. satisfaction and does a bi-annual study that measures the degree of customer’s happiness MERALCO’s technical expertise has also been with how well the Company is able to meet instrumental in planning, building and maintaining their needs. The Customer Satisfaction Index energy infrastructures that power emerging survey and study is conducted by a third party economic hubs. To encourage entrepreneurship, research agency and covers all MERALCO MERALCO closely works with LGUs to reduce customer segments: residential, businesses, local the processing time for the Certificate of Final government units, and national government Electrical Inspection (CFEI) so that entrepreneurs offices. Tracking what is important to its can get their business energized in the soonest customers and how well the Company is meeting possible time. The LGUs’ environmental their needs gives MERALCO direction on how conservation efforts are actively encouraged to make the customer experience better. by MERALCO, which advocates the use of electric vehicles to minimize air pollution and The 2016 study showed across the board consumer dependence on imported fossil fuels. improvement at all customer sectors, with an overall improved score from 8.18 in 2015 to In 2016, MERALCO sealed partnerships 8.29 in 2016. with 14 LGUs within its franchise area. Power 43

Prepaid Electricity Service. MERALCO Kuryente With no collection risk, MERALCO’s prepaid Load (KLoad) had created what Harvard Business application requirements were relaxed allowing Review refers to as shared value, by generating disenfranchised households to secure their economic value that also produces value for own electricity service. Households with illegal society by addressing its challenges. Electricity connections now prefer subscribing to KLoad. consumption becomes more manageable with While illegal connections provide free power, electronic load denominations as low as ₱100. they cause fires and generate scorn from Leveraging on the extensive network of cellular neighbors. KLoad makes them responsible users service electronic loading channels, customers of electricity, with a renewed sense of dignity. can reload 24/7. Ideal for a sachet market such as the Philippines, KLoad provides flexibility Some 41,000 customers had signed up by for daily wage and weekly wage earners, year-end. As of December 31, 2016, the students and young professionals living away service is available in cities of Manila and from home, start-up families and households Mandaluyong, municipalities of Angono, Cainta, who are strapped for cash since they are not Binangonan, and Taytay in Rizal, and parts constrained to pay their electricity bill in one go. of Pasig, San Juan, Parañaque, Novaliches, Caloocan, Cavite, Tagaytay and Bulacan. The first of its kind in the world to integrate the electricity network with mobile infrastructure, daily Customer satisfaction for MERALCO’s postpaid account monitoring via SMS allows customers service may have reached an all-time high to manage and control their consumption. in 2016 at 8.19, but satisfaction for prepaid Households who switched from postpaid to is even significantly higher at 8.28 — proof prepaid were able to save an average of 18% (as that the shared value created is reflected in of June 2017). Savings could be used to purchase the customers’ appreciation of the service. A new appliances they have long wished for, drill down of attributes that drive satisfaction which translates to an improved quality of life. shows decline in importance for rates and

— 44 Sustainability Report 2016 Metro Pacific Investments

meter reading and increase in importance Ultimately, the MERALCO Orange Tag is the end for customer communication and payment result of simplifying technical power-related data procedures. Through its daily communication into accessible and understandable information with its customers via SMS, MERALCO is able for the benefit of customers. With just one to gain their trust and change the way they look, the Orange Tag’s customer-centric values view the Company and the service it delivers. speak the language of the typical household.

Orange Tag. Filling the information gap to help Power Up Forum Series. The Power Up Forum is customers understand the monetary equivalent a program that provides an arena for customers of appliance usage, the MERALCO Orange to leverage on MERALCO’s experience and best Tag was introduced in 2015. Each orange tag practices which in turn help address its various provides information about the estimated cost operational energy related challenges. This to operate an appliance or electric gadget, exclusive workshop also enables MERALCO down to the specific brand, model and stock to engage its customers and understand the keeping unit. The costs are derived from tests unique nature of their businesses and develop conducted at the MERALCO Power Lab, based on energy solutions customized based on customer how customers generally use their appliances, or industry needs. It is also a platform wherein as established in a third-party survey. customers are guided on the latest industry and regulatory developments that have a direct MERALCO partners with appliance manufacturers impact on their company’s bottomline. It has and negotiates to ensure that display units become an invaluable program for ensuring found at popular appliance stores feature the power reliability, dependability and safety MERALCO Orange tag to help customers make for all customers sourcing their power needs informed decisions on which appliance brands through MERALCO’s distribution network. or models to purchase, not just based on their appliance budget, but also considering how Strategic Planning Sessions. For corporate much they will have to pay for the electricity it customers, power quality and reliability are will consume. A typical 1HP air-conditioner was crucial in maintaining business operations. As our tested to cost ₱4.50 per hour of use, although customers’ energy partner, the Company conducts in a separate study most customers believed joint strategic meetings with said customers to it to cost over ₱50 per hour. For customers anticipate their long-term energy requirements with existing appliances, a list of tested units to support future expansion plans through the is readily available in the MERALCO website. latest power solutions and technologies.

With more accurate information on appliances’ MERALCO’s subsidiaries specialize in beyond-the- operating costs, customers can better calibrate meter energy services such as solar solutions, their use according to their budget and become value engineering, operations and maintenance more responsible and empowered to make and civil works for large electrical infrastructure. smart decisions when it comes to purchasing energy-efficient appliances and managing their household electric consumption. Power 45

G4-10 Engaged and safe workplace

MERALCO employs a total of 5,569-strong workforce, a good 56% of whom are within the 30-50 age group and who occupy 14.8% of the Management rank.

Notably, each one of MERALCO’s employees received developmental training in 2016. An average of 42.5 training hours per employee was completed at Managerial Level, 15.4 average training hours at Supervisory Level and 28.2 average training hours at Rank and File Level.

Employees by Rank Employment by Age Range

1,333 605 1,333 1,117

635 Rank and File Over 50

Executives 30 to 50

Middle Management Under 30

4,329 3,119

3,119 MERALCO works to deliver electricity efficiently The Safety, Occupational Health and Environment and safely, while looking after its employees, Management Office works relentlessly to improve customers, suppliers, contractors, the public and the Company’s safety culture. Focusing on caring the environment. The Company continuously for people and leadership commitment, the strives to improve safety and resiliency Networks Operational Safety Council was created performance throughout the industry. to ensure that specific tasks involving significant hazards are properly assessed and addressed. MERALCO’s Zero Lost Time Incident (LTI) Program is aligned with the Department of Labor and As one of the largest utility providers in the Employment (DOLE) requirements through the country, MERALCO aims to further strengthen reclassification of incidents and improvements safety and develop organizational resiliency in incident management. Certified for the OHSAS through the creation of the Business 18001 and ISO 14001 standards, the Company Continuity Management organization continues to improve its ESH Management focusing on the strategy and governance of System at par with global best practices. the company’s business continuity plans.

2016 Safety Performance No. of safety drills conducted Man-hours Exposure Fatality Severity Rate

62 safety drills; 22 emergency 11,677,986 0 32.11 drills (sectors/subtransmission More than 11 Million man-hours exposure with zero fatality and 97.24% improvement on severity services); 38 emergency drills rate* to 32.11 in 2016 from 1,164.61 in 2015. (business centers/auxiliary); 2 emergency drills (MERALCO * Severity Rate is the total days of disability multiplied by one Million over the total man-hours of operating center) exposure (total days lost x 1,000,000 / employee hours of exposure) 46 Sustainability Report 2016 Metro Pacific Investments

G4-SO1 SOCIAL RESPONSIBILITY

As MERALCO continues to address the One MERALCO Foundation through its various growing needs for energy of its more than social development programs nationwide. six Million customers, it also aspires to be a partner in progress for the country. MERALCO The Foundation strengthened and developed embraces this mission by embedding programs focusing on its four pillars: community sustainability and by creating shared value electrification, grassroots partnerships, youth that benefit both business and society. development, and emergency preparedness and disaster response. Through proper Corporate Social Responsibility (CSR) in MERALCO alignment of CSR thrusts with MERALCO’s is about enabling opportunities for many Filipinos business goals and strategies, and by involving to be empowered and rise above the challenges stakeholders in the process of designing of poverty. Many of its concrete expressions and implementing development initiatives of nation-building are led and sustained by in their own communities, the Foundation plays a critical role in social development. Power 47

For its Community Electrification initiatives in electrification target for the entire country by 2016, One MERALCO Foundation continued 2020 as part of its vision to spread the benefits its partnership with MERALCO’s Customer of economic growth to the grassroots level. Retail Service group to energise 6,756 low income households in MERALCO’s franchise The foundation also worked with a group of area. This was 135% of the original target university students for “Project Liwanag,” which of 5,000 households for the year, driven energized 125 Aeta households in Sitio Bilad mainly by the strengthened relationships with and Sitio Caoayan, Capas, Tarlac through solar various local governments, partnerships with photovoltaic (PV) system. The foundation also urban poor homeowners’ associations and enhanced the electrification of Green Earth more disciplined project management. Heritage Farm in San Miguel, Bulacan as well as installed streetlights for 240 households in Twenty-nine out of the 38 MERALCO business the transition housing for families displaced by centers and auxiliary business centers participated Typhoon Yolanda in Tacloban in cooperation with in this year’s program with a total of 132 projects the Philippine Disaster Resilience Foundation. approved with an average of 52 households per project. Sitio Camcam in Barangay Canlalay, Meanwhile, the foundation’s School Electrification Binan, Laguna was the single biggest project initiatives reached a milestone of 170 schools of 2016 with 452 households energized and energized, 50 of which were accomplished in another 48 households to be completed by 2016. These schools are located in 12 provinces, the end of 2017. This was followed by the namely: Iloilo (9), Rizal (7), Davao del Sur (6), Bohol 234 households of Taytay Sunrise Residents (6), Camarines Sur (5), Masbate (5), Tawi-tawi and Planters Association in Taytay, Rizal. (3), South Cotabato (3), Palawan (2), Occidental Mindoro (2), Oriental Mindoro (1) and Camarines This program also supported MERALCO’s prepaid Norte (1). These schools serve a total of almost electricity program by bringing in 2,500 customers 23,000 students in the elementary and secondary located in Rizal (Taytay and Cainta), Manila levels. The programs also enabled 666 teachers (Sampaloc, Sta. Cruz, Sta. Mesa, Sta. Ana, Tondo, to use educational multi-media equipment and Baseco), Pasig (Sta. Lucia)and Novaliches. donated by MERALCO employees through the The prepaid metre system allows customers to MERALCO Employees Fund for Charity (MEFCI). monitor their electricity consumption, helping them budget their consumption and expenses. As the School Electrification programs has been With prepaid meters installed, customers are running since 2012, the foundation decided to able to save up to 20 percent in terms of cost. commission the University of the Philippines Public Administration Research and Extension This project was further strengthened with the Services Foundation, Inc. (UPPAF) to conduct call of Philippine President Rodrigo Duterte for an impact evaluation on the programs. Some various power distribution utilities to beef up insights from the study are the following: electrification for low-income households all over the country. President Duterte asked MERALCO • Technology has complemented the traditional to look into Aroma Compound in the Baseco Area teaching methodologies and yielded learning of Manila and the Foundation responded with gains, and teachers are now able to offer the electrification of 507 households in 2016. topics they could not teach before. The Duterte administration has set a 100 percent 48 Sustainability Report 2016 Metro Pacific Investments

• Productivity increased since teachers and to Banaue in Ifugao, among others. The lamps students are able to use various equipment. were also given to schools severely affected As a result, students’ skills are enhanced and by different typhoons such as Typhoon Ferdie students become more creative and innovative in Batanes and Typhoon Lawin in Cagayan. in their schoolwork and assignments. As an annual activity, MERALCO network engineers • Record keeping and report preparation have also visit and check the electrical facilities of also become easier for teachers since they public schools within MERALCO’s franchise area can utilize digital tools. as part of its “Safe Ang School Ko” campaign during the “Brigada Eskwela” program of the • Electrification opened up more opportunities DepEd. In 2016, MERALCO engineers visited for the schools since donors are encouraged 400 public schools for electrical safety checks. to donate especially electronic equipment because of the availability of electricity. Coupled with the electrification of schools is the development of learning programs aimed at 2016 also saw the implementation of the “One improving the appreciation of teachers, students Child, One Lamp” program, in partnership with the and their families of energy issues affecting Department of Education (DepEd). The program people’s lives. In 2016, the foundation released provides one solar lamp per student in remote Energy Education kits which contained at least public schools with a population of 100 and below. 150 lessons on the science of energy integrated in various subjects. More than 200 teachers and After raising funds for solar lamps from an 73,359 students are now able to use knowledge, employee-Christmas campaign in 2015, 10,000 activity and project-based learning flashcards to solar lamps were distributed to 140 public introduce and strengthen lessons in energy. schools in 24 provinces. Employees from various interest groups volunteered to help Energy camps for teachers were held in Subic, in the distribution: the mountaineering club Zambales and in Pasig City to help them distributed to schools in the mountains of Sagada integrate these in their regular lesson plans. in Benguet province, a biking club brought lamps Power 49

This was a follow-up to the two energy camps Meantime, also running for five years now, the held in Dumaguete City (Visayas) and Cagayan MERALCO Basketboys Program has engaged De Oro (Mindanao) in 2015. In 2017, at least thousands of underprivileged children in a thousand energy kits will be distributed marginalized communities to improve their to various public schools nationwide. basketball skills and become better team players in their schools and communities. Similarly, For its Grassroots Partnerships, the foundation it continued to help the Football for Peace partnered with MERALCO’s business centers and Program, which attracts children in conflict network offices in helping local governments, areas in Mindanao to be trained by our Loyola foundations, and social services institutions MERALCO Sparks Football team so they can deliver various programs in their respective focus on their football skills rather than be drawn communities in the franchise area. In 2016, into armed conflict. In the last four years, over 92 community relations projects were either 1,322 youth from the Autonomous Region of initiated or supported. These projects range from Muslim Mindanao participated in this program, medical missions, donation of school and office in partnership with the Philippine Marines. equipment, participation in local sports fests, The MERALCO Sparks traveled all the way to donation of sports equipment, tree-planting Bongao, Tawi-tawi to reach out to children in activities, relief goods for fire victims, etc. the farthest communities in the country.

As for its Youth Development focus, the foundation Young Filipinos with passion for the performing contributes through programs that promote arts, specifically, a cappella singing, have a avenue excellence in education, sports and the arts. to showcase their talents and polish them under the annual “Akapela Open” competition. After An example is its MVP Academic Achievement being exposed to various MERALCO customers, Awards that started five years ago, which has the finalists have now used their singing talents recognized over 1,407 student dependents to earn extra income by performing in corporate of MERALCO’s supervisory and rank and file and community events as well as festivals. In employees. These dependents, who have excelled fact, its first champion, Acapellago from Malolos, academically, receive educational grants. 50 Sustainability Report 2016 Metro Pacific Investments

Bulacan won top prize in the International A in need. This has been true in Typhoon Pablo Capella Championship in Singapore in 2015. (2012), Typhoon Santi (2013), Typhoon Yolanda (2013), Typhoon Glenda (2014), Typhoon In terms of Disaster Response, MERALCO is Nona (2015), Typhoon Ferdie (2016), Typhoon determined to serve, especially in areas of its Lawin (2016) and Typhoon Nina (2016). expertise. MERALCO linemen are sent as power restoration teams to various local electric On top of the power restoration, the response cooperatives affected by major typhoons of the rest of the MERALCO employees is that hit the country each year. MERALCO is reliably immediate. The Foundation does not quick to respond, bringing technical expertise, fall short of volunteers who willingly gave their manpower and equipment to hard hit provinces time, effort, money, and help in gathering, and helps restore electricity service within a packaging and distributing relief goods to those week. Even in areas outside its franchise area, communities hit by calamities and disasters. MERALCO’s commitment is to serve the Filipino Power 51

Making a teacher's dream come true

The Mangyan tribes of Mindoro are among a For the most part of the school year, he and his few indigenous communities in the Philippines fellow teachers are left without a choice but to which have managed to keep their population teach computer and IT concepts, ironically, the stable and hold on to their traditional ways of old and theoretical way. living for hundreds of years. This changed in 2016, when the school Known for being gentle and peace-loving, they received a donation of a 1-kilowatt solar are at times defrauded and cheated because photovoltaic equipment from One MERALCO they lack knowledge and sophistication to Foundation. defend themselves from scrupulous people. Fortunately, more and more young Mangyans Waring Elementary School was among the are stepping up, seeking education and 50 remote public schools benefited by the learning more about what lies beyond the foundation’s school electrification program confines of their community — to be better in 2016. The five-year-old advocacy provides able to defend their rights as indigenous an alternative source of electricity to schools peoples. located outside of the electric grid, whether within or outside of the MERALCO franchise However, education is a tough challenge for area. those living in the remotest communities in upland barangay which mostly have no Since 2012, the program has already enabled schools, and the very few that do not have technology-aided learning through solar power access to electricity. in 170 schools nationwide, the farthest of which is a school in the island municipality of Such is the case of Waring Elementary School Sitangkai, Tawi-Tawi. It is the farthest island in in Bulalacao, Oriental Mindoro, where about southwestern Philippines and is, in fact, closer a hundred Mangyan pupils are tutored by to Malaysia than to mainland Mindanao. seven teachers headed by Warlito Agustin, the school’s principal. After earning a degree Apart from the solar equipment, every school in education, one of his toughest assignments energized by the foundation also received as a newbie teacher was in Waring. Without a multimedia package consisting of a laptop paved roads, the community is not accessible computer, 45-inch LED TV, and a printer- by motorised vehicles. The only way to go there scanner - photocopier machine donated and back is to hike for at least three hours. through monthly contributions by MERALCO employees. The young teacher took it as a personal mission to help the Mangyan youth to widen With electricity now available in their school, their knowledge about the modern world coupled with the continued dedication of and change how they view their future as an Agustin and their teachers, Waring Elementary indigenous people. However, without electricity School pupils are finally able to experience in the community, Agustin’s dream of bringing technology and learn in the same way most progress to this part of the world remains dim. children across the world do. 52 Sustainability Report 2016 Metro Pacific Investments

GLOBAL BUSINESS POWER CORPORATION

Global Business Power Corporation (GBP) — Daanlungsod, Toledo City, and a 40MW diesel- a joint venture among Beacon PowerGen Holdings, fired power plant located in Carmen, Toledo Inc. (56%), JG Summit Holdings, Inc. (30%) and City. Under the tutelage of the engineers of CMS MERALCO PowerGen (14%) — is a leading energy Generation Company, and later of Mirant, TPC company in the Visayas Region and Mindoro brings with it more than 30 years of technical Island. expertise following world-class standards. In 2014, TPC switched-on its 82 MW TPC1A Expansion The company produces adequate, reliable and Project, to provide the energy requirements of cost-efficient power supply through its five Carmen Copper’s mining expansion projects. subsidiaries that operate eleven power generation facilities: Panay Power Corporation (PPC) owns and operates four diesel-fired power plants. In Iloilo The Cebu Energy Development Corporation City, it has the 72 MW Iloilo 1, and the 20 MW Iloilo (CEDC) owns and operates a 246MW clean coal- 2 facilities. In Aklan, it operates the 7.5 MW Nabas fired power plant located in Toledo City, Cebu, plant and the 5 MW New Washington plant. The 72 which started commercial operations on February MW diesel-fired power plant, formerly belonging to 26, 2011. CEDC is a consortium composed of GBP, First Generation Holdings and First Private Power, Aboitiz Power Corporation, and Vivant Energy began commercial operations in 1998 and supplies Corporation. The CEDC Plant utilizes the latest power to Iloilo City. Meanwhile, the Aklan power Circulating Fluidized Bed (CFB) boiler technology, plants began commercial operations in 2005 to setting the beginning of a cleaner transitional serve the needs of the Municipalities of Nabas and technology that not only supports the fast-growing New Washington as well as the Boracay Island. economy of Cebu but also addresses the region’s need for improved environmental management. GBH Power Resources, Inc. (GPRI) owns and operates a 7.5MW diesel-fired power plant The Panay Energy Development Corporation in Pinamalayan, Oriental Mindoro. Built by (PEDC) owns and operates a 164 MW clean coal- Mirant, the plant services in part, the power fired power plant located in Brgy. Ingore, La Paz, requirements of the province through the Iloilo City, which started commercial operations Oriental Mindoro Electric Cooperative, Inc. on March 26, 2011. The PEDC plant uses the It was officially acquired by GBP in 2003, same state-of-the-art clean coal technology of and subsequently acquired its Integrated the CEDC Plant. With the emergence of PEDC in Management System accreditation in 2010. the market, it has effectively reduced the cost of electricity and addressed the electric power Aside from these five power generating shortfall in the Visayas region. The company is subsidiaries, GBP also has the Global Energy undertaking the 150 MW PEDC Unit 3 Expansion Supply Corporation (GESC) which is its licensed Project that will supply the growing energy Retail Electricity Supplier (RES) and the official needs of Panay and the rest of the Visayas. retail energy arm of GBP. The deregulation of the power industry has enabled GBP to actively The Toledo Power Co. (TPC) owns and operates participate in Retail Competition and Open a 60 MW coal-fired power plant located in Access. In this stage of the deregulated market, Power 53

GESC is able to trade energy directly to qualified a menu of service options at competitive rates customers — industrial and commercial end users. and flexible schemes that can be customized depending on one’s power requirements. GESC provides sound energy solutions to meet the varying needs of the contestable As of December 31, 2016, MPIC’s effective customers. GESC, sourcing supply from GBP’s ownership in GBP was at 47.1% through Beacon power generation facilities that are capable of PowerGen Holdings Inc., and through MERALCO supplying base, intermediate, peak load and PowerGen. ancillary services to the grid, is capable of offering 54 Sustainability Report 2016 Metro Pacific Investments

G4-EN15, G4-EN16 SUSTAINABILITY HIGHLIGHTS

Contributed to the doubling of Iloilo City’s electricity Forced outages of consumption in a span of coal-fired plants 7 years decreased by 57.5% Customer Satisfaction Rating at 4.58 (highest) and 4.25 (lowest)

With 983 Capital expenditures of employees, and ₱3.79 Billion 5 Million Total Scope 1 total manhours GHG Emissions - for employees Adopt-a-Health Center and contractors 3,771,370 t CO and medical missions 2 and Scope 2 GHG Emissions benefited over 160,019,258 t CO 46,000 people 2 Operational Efficiency Duration of Forced Outages GBP has carefully chosen the location of its No. of Days 50 plant facilities. Understanding the limitations

of transmitting power from island to island, 40 GBP has installed its generation facilities within high growth areas in the Visayas and near its 30 key offtakers. This reduces chances of supply disruptions and allows the Company to deliver 20 adequate, reliable and cost efficient power supply. 10

GBP strives to be the leading and most efficient 0 CEDC U1 CEDC U2 CEDC U3 PEDC U1 PEDC U2 energy provider in the country by using TPC 1A Duration 2015 Duration 2016 technologically advanced circulating fluidized

bed boiler technology in its Cebu and Iloilo Frequency of Forced Outages facilities and at the same, continually improving Occurrences its plant operations, business processes and 15 systems. Having relatively new coal-fired generation facilities that are equipped with 12

the latest technology, GBP has relatively 9 low operating costs due to efficient use of

fuel and lesser operational maintenance. 6

In 2016, the duration of forced outages of 3 coal-fired plants decreased by 57.50% while 0 frequency decreased by 50%, mainly due CEDC U1 CEDC U2 CEDC U3 PEDC U1 PEDC U2 TPC 1A to fewer incidents of boiler tube leaks. Frequency 2015 Frequency 2016 Power 55

GBP also takes pride in having business The Company also adopted the best practices processes that are aligned with global efficiency in running coal-fired and diesel-fired power standards. The Company follows processes plants when GBP acquired TPC from Atlas that support strong customer focus and Mining and Panay Power Corporation from continual improvement, as a recipient of ISO the Lopez Family. The operations under TPC 9001:2008 certification for its power plant has given more than 30 years of technical facilities and corporate office. Below is the list of expertise in operating coal-fired power plants. certifications under quality, environmental and occupational health and safety management: For operations in Iloilo, dredging of the south channel of Iloilo Strait was completed in April Company Certifications 2016 to accommodate bigger coal shipments and reduce fuel cost. Delivery through the Corporate • ISO 9001:2008 Quality dredged channel commenced last March 17, Office Management System 2017 and has translated to freight cost reduction GPB to USD 10/MT from USD 16/MT, effectively Operating • ISO 9001:2008 Quality decreasing PEDC’s electricity fees by ₱0.2/kWh. Plants Management System PEDC, PPC, • ISO 14001:2004 GPRI, TPC, Environmental CEDC Management System • OHSAS 18001:2007 Occupational Health and Safety Assessment Series 56 Sustainability Report 2016 Metro Pacific Investments

SERVICE EXCELLENCE

GBP is committed to provide adequate, reliable Western Visayas Regional Growth Rate vs. Electricity and cost-efficient power supply to fuel the distributed to Iloilo City development of existing and emerging markets 60,000 in the country. Back in 2008, the Visayas region 8.30% experienced rotating brownouts due to tight 50,000 power supply. GBP immediately addressed the 40,000 5.20% increasing energy requirement in the region by 30,000 3.40% putting up a 3x82 MW clean-coal power plant 20,000 facilities in Cebu through CEDC and a 2x82 10,000 MW plant facilities in Iloilo through PEDC. 2010 2011 2012 2013 2014 2015 2016 With the establishment of PEDC, the contract of Iloilo City’s distribution utility Panay Western Visayas GRDP Electric Company (PECO) with PPC (diesel) MWh Delivered to PECO was replaced with PEDC (coal) to lower down the cost of electricity by ₱3/kwh. GBP keeps an open line of communication with its customers. One way it does this is through its The commercial operations of CEDC and annual Customer Forum in Cebu and Iloilo where PEDC’s baseload facilities in the first quarter of GBP convenes its customers and shares updates 2011 not only ended the rotating brownouts about the Company’s plant and commercial in the Visayas but also spurred growth in operations. GBP invites industry players as guest business and commercial activities. speakers to keep customers abreast to industry developments and new regulations. Below are the With the assurance of stable and cost efficient topics discussed during the Customer Forum 2016: power supply, major industries in Cebu like the mining, tourism, and retail shopping industries flourished. Iloilo similarly witnessed a dramatic 2016 Customer Forum Topics resurgence of business and emergence of new industries like business process outsourcing Cebu (BPO). Retail shopping Centers, hotels and Cebu Chamber of Metro Cebu infrastructure projects were built rapidly. Commerce and Developments Investments from top property developers such Industry as Megaworld, Ayala Land and the Metro Retail Department of Energy Demand/Supply Stores Group also began to pour in. In merely Scenario and Effects seven years, Iloilo City’s electricity consumption of Renewable Energy doubled, from 23,533,485 kwh in January Plants Entry 2010 to 49,330,449 kwh in December 2016. National Grid Transmission Corporation of the Development Plan and Philippines Updates Power 57

Department of Energy ER 1-94 Orientation Meanwhile, the commercial group launched the web-based Automated Trading System dubbed GETAPP or Global Energy Trading Application. Energy Regulatory RCOA Implementation Developed by Acasiasoft, GETAPP is designed Commission to make the trading process — including Daily Philippine Electricity Visayas Market Updates Generation Timetable (DGS) Nominations Market Corporation and Bilateral Contracted Quantities (BCQ) Declarations — faster and more efficient. GETAPP is also capable of generating nomination Iloilo summary reports. Initial implementation is Impact of Distribution Systems with Distributed set on February 2017. In line with its trial Renewable Energy Sources operations various roll out sessions were conducted in both Cebu and Panay sites.

GBP’s commitment to develop the skills of GBP values the feedback of its customers its people has also extended to its partner and conducts customer surveys twice a distribution utilities and electric cooperatives, year to measure how the customers rate its which, in the long run, benefits the consuming technical/operational performance, power public. GBP has been conducting technical generation billing, and customer care: and non-technical trainings to its customers to improve their business systems and operations, Subsidiary 2016 2015 providing them supplemental skills and knowledge which they can apply to their daily operations. PEDC 4.25 3.80 CEDC 4.56 4.25 In Cebu, two non-technical trainings were TPC 4.58 4.68 conducted for both CEDC and TPC customers 5 being the highest and 1 being the lowest in cooperation with AGF Consulting Group. Topics included Customer Service Excellence and Supervisory Skills Development. In partnership with the MERALCO Power Academy (MPA), GBP also conducted a technical training on Distribution Impact Study. Likewise, MPA conducted customer- centricity trainings in Iloilo for the customers of PEDC and PPC. The trainings involved lectures and workshops designed to engage the participants, who provided positive feedback and cited the trainings’ usefulness in their day-to-day operations. 58 Sustainability Report 2016 Metro Pacific Investments

Engaged and safe workplace

GBP recognizes the crucial role its people play At present, the company maintains employee in the attainment of the Company’s goals, and engagement through various HR and ER programs has continuously invested in the development of which are conducted at all sites on an annual basis. its workforce’s skills. To this end, the Company These include activities such as team building is developing the GBP Training Institute (GTi) in activities, sportsfests, anniversary celebration, and Iloilo, the country’s first and premiere training Christmas parties for employees. The company facility dedicated to foster technological also has wellness programs that include the advancement in the power generation industry. employee Annual Physical Examination (APE)/ At the heart of GTi will be the Circulating Fluidized Executive Check-up (ECU). The company gives Bed (CFB) boiler simulator that seeks to promote out health advisories and reminders regularly, better understanding of clean coal technology. and at every flag ceremony, office exercises The institute shall also serve as the hub of are routinely taught and practiced together. GBP’s learning and development programs, and will house training facilities related to GBP’s operations and maintenance practices. Power 59

G4-10, G4-LA5

Employment by Gender Employment by Rank Employment by Age

173 810 547 57 232 198

358

553

Male Rank and File Over 50

Management and Senior 30 to 50 Female Management Officer

Officer Under 30

Executive

Total Workforce in Health and Safety Committee GBP ensures that necessary measures are in place to assure the safety and security of the workplace. A hazard-free environment is the company’s aim No. of Employees Representation Percentage at all times. Management and employees work together to ensure that people have the knowledge 810 male 122 and support systems necessary to maintain a safe employees 15% workplace and a safety-empowered workforce.

173 female 26 employees 15% 60 Sustainability Report 2016 Metro Pacific Investments

GBP strictly implements a structured Safety electrical personnel who are expected to work Program across all its subsidiaries and plant sites in close proximity with hazardous voltages. which begins even before people step onto a site. First, new entrants are inducted on the Site’s The Behavioral-Based Safety (BBS) program Safety policies prior to entry in the power plants. is GBP’s proactive approach to preventing This ensures proper communication of various accidents. Each GBP employee and/or contractor hazards and safety procedures, and strengthen is engaged to identify unsafe acts and conditions implementation and compliance for all visitors and and is authorized to intervene so as to avoid employees. The Safety Induction is a requirement any untoward incident. A Safety Observation to gain entry to any GBP power generation plant. System is implemented to report and document hazards flagged by an employee/contractor so The plants likewise practice Hazard Zoning and that proper actions are put in place. Safety is Personal Protective Equipment (PPE) mapping also incorporated in the Company’s Individual by classifying areas according to degree of Work Performance Appraisal System. hazards. This system also defines the applicable PPE in specific areas. In line with the Company’s Mandatory safety trainings safety communication policies, safety signs are strategically placed to convey prevailing hazards are established for those and corresponding warnings. Activities inside employees and contractors any GBP power plant, which may pose hazard, are governed by a Permit-To-Work process, and who may be exposed to a No Permit-No Work policy is strictly observed. hazardous conditions.

GBP also communicates its Life Saving Rules A Training Passport (LSRs) as clearly and frequently as possible. system is implemented to The LSR are safety rules relevant to the company’s operations that require mandatory identify and monitor the implementation and for which there will be compliance with GBP’s safety minimum tolerance. Non-observance of an LSR exposes a person to a life-threatening situation. training requirements.

Only qualified personnel are authorized to work All contractor activities are covered by established on electrical systems whether energized or non- safety policies, and GBP carefully integrates its energized and a firm “No Working Alone” policy safety requirements in its contractor selection and is enforced alongside strict observance of Life evaluation process. All contractors go through Saving Rules within Company premises. GBP the site safety orientation to ensure all relevant has set a rigid competency requirement for its GBP policies are communicated accordingly. Power 61

As pro-active Emergency Prevention and Response, All GBP sites are OHSAS 18001 Certified. Internal, each plant and facility has a variety of fire external and corporate audits are conducted suppression, alarm, and detection systems that are periodically to ensure each plant is compliant to regularly inspected, tested and maintained to be regulatory and corporate policies. Site inspections ready and available in times of need. Emergency are also performed at intervals by each site’s ESH response procedures are established per site and Committee. All results of audits and inspections necessary trainings and drills are undertaken. are subject to review by the respective Site Management teams and the ESH Committee. The Company has also established a hearing conservation program for all employees, Many of these safety policies and programs contractors and visitors. This seeks to prevent have begun gaining recognition from various hearing loss from exposure to hazardous noise regulatory bodies. In 2016, GBP subsidiary Panay levels associated with the Company’s operations. Power Corporation (PPC) was recognized by the Department of Labor and Employment (DOLE) GBP similarly enforces strict requirements at the 10th Gawad Kaligtasan at Kalusugan for the use of company vehicles. Authority (GKK) Awards as a Silver Awardee in the Power to Drive is given only to employees and Generation Industry. The biennial GKK is a contractors who have successfully passed national award given to organizations and the Company’s driver assessment process. individuals who have shown exemplary practices Each site also follows an established road in responding to the safety and health needs safety and travel management program. of workers, workplaces, and communities. Selection of winners is based on a rigorous In the same proactive approach, GBP incentivizes criteria covering various facets of workplace groups and individuals who make significant safety, such as Occupational Health and contributions to promoting safety in the Safety (OSH) Policy, Safety Control, Emergency workplace. These recognition programs are Preparedness, Industrial Hygiene, Occupational established per plant facility, and form the Health, Environment Protection, OSH Capability backbone of the Company’s safety culture. Building and Information, Social Accountability and Community Relations, and OSH Management. This safety culture extends to GBP’s neighboring communities. As part of GBP’s community Meanwhile, CEDC also received a Certificate development programs, each site conducts of Recognition from the Workplace periodic trainings and drills involving residents Advocates on Safety in the Philippines, in surrounding areas. GBP also conducts joint Inc. for having achieved Zero Lost Time emergency exercises with the local emergency Incident from January to December 2015. response units to strengthen their response capability for accidents and disasters. 62 Sustainability Report 2016 Metro Pacific Investments

G4-SO1 Social Responsibility

GBP believes in developing sustainable Iloilo City Bird Sanctuary and Wetland Park that communities. Together with its partners, GBP covers 35 hectares of mangrove area adjacent creates opportunities for growth through social to its power generating facilities. The project development programs that aim to create a also includes the nine-hectare GBP Eco Park. brighter future for its host communities. Completed in 2015, the GBP Eco Park is another carbon sink project featuring a fishpond, an Environment is a key pillar for GBP’s social orchidarium, an organic vegetable, and medicinal development programs. The Company is garden, and a bambosetum housing 12 different committed to the care of forests and watersheds, species of bamboo. The park further aims to and stewardship of natural resources for the foster an environment-conscious community. benefit of the next generation. It is fitting, therefore, that GBP’s flagship carbon sink For its tireless efforts to promote protection and programs are termed after the vernacular conservation of the environment, GBP has earned equivalent of “legacy” in its areas of operations— various recognition from both the public and Kabilin in Cebu and Handumanan in Iloilo. private sectors. In 2015 during the Environmental Congress, Cebu Energy Development Corporation Under Kabilin, GBP has rehabilitated 100 hectares (CEDC) was awarded the Sustainability Champion of forestland in the Malubog Watershed Area in Award and the Climate-Smart Leadership Award Cebu, which supplies the water requirements of jointly conferred by the DENR, the Department Toledo City and other neighboring communities. of Trade and Industry (DTI), the Department As part of its biodiversity and aquifer conservation of Tourism (DOT), the Department of Science efforts, the Company, through Handumanan, and Technology (DOST), and the DOE. has also spearheaded the development of the Power 63

Helping students reach their potential

Meanwhile, the company’s multipartite monitoring Marvin Natural, presently a Grade 10 teams (MMT) for its Iloilo and Toledo operations, student in Toledo National Vocational composed of various government and community School in Toledo City, Cebu joined GBP’s stakeholders of the plants, were awarded Best scholarship program when he entered High Management Practice on Conflict and Best School. Marvin still recalls that he used to Management Practice on Reporting, respectively, be an average student. “My grades were during the 2015 MMT National Convention. mostly in the line of 80+ when I was in elementary,” Marvin said. Since he became Education is also central to GBP’s social part of the scholarship program, Marvin development programs. Through GBP’s Education was able to focus more on his studies and Assistance Program, deserving elementary and was motivated to achieve higher grades. high school students are given grants in the Today, Marvin’s grades are mostly in form of school supplies, uniforms, books, and the line of 90+ and is one of the school’s financial assistance. The program has already honor students. He is among the 662 provided for 662 students during school year deserving students supported by GBP. 2016-2017. GBP also supports the Department of Education’s annual Brigada Eskwela program. N.J. Elementary School’s School Coordinator and Teacher I Renan Sipe expressed the The Company’s subsidiaries also support its school’s gratitude to GBP for providing customers in the conduct of their own social essential assistance to the students. responsibility programs. In the past, CEDC “NJ Ingore Elementary School is very partnered with Mactan Electric Company, fortunate to be one of the adopted Inc. for the latter’s school bag distribution schools in the Division of Iloilo City. As project. The school bag distribution project our partner, GBP supports our school and has reached out to 300 Grade 1 students our pupils in realizing the Department of of Punta Engano Elementary School. Education’s mission and vision, through their scholarship programs,” said Sipe. GBP also regularly conducts teacher trainings to enhance teachers’ skills and provide them “I have witnessed how motivated GBP with applicable learning methods appropriate scholars are because of the provisions given to the grade level they teach within K-12 to them. Apart from the improvement in education program. academic performance, I have also seen the effect in their personal attitude. The Education Assistance Program Investments program has indeed contributed greatly to and Beneficiaries the development of the child’s good study habits and self-discipline,” he added. Scholarships Teacher’s Training GBP’s Education Assistance Program not only provides for the students’ needs but, just as important, it helps the school in furthering professional growth of the teachers. 662 122 They conducted seminars, workshops, and did benchmarking. The program also TOTAL donated provisions for school facilities. 784 64 Sustainability Report 2016 Metro Pacific Investments

Patients Served per Age Group Under the Social Development Program (SDP)

12,000 of GBP, the Company attends to some of the 11,370 most basic needs of its beneficiary communities. 10,000 8,550 Through continuous consultation with local 8,000 government units and residents, the Company 6,000 was able to identify that public access to health 4,583 4,692 4,151 3,721 3,418 facilities is a key concern in most of its adopted 4,000 2,624 2,000 barangays. As such, GBP’s Social Development Program in 2016 focused primarily on the 0 0-6 7-14 15-24 25-34 35-44 45-54 55-6465 and Up rehabilitation and repair of health centers in the Iloilo, Aklan and Mindoro provinces. TOTAL: 43,109 GBP also recognizes the crucial role it plays in Health is another key area where GBP focuses disaster response and risk management. In its social development initiatives. To help ensure 2013, GBP immediately responded to the victims the health and well-being of its communities, of the7.2-magnitude Bohol Earthquake and GBP conducts medical missions and provides Typhoon Yolanda in the Visayas. In October, GBP free medicines to its adopted barangays. provided 1,500 relief bags each to Cebu and Main health initiatives in 2016 included the Bohol for families affected by the earthquake. continuation of its flagship Adopt-a-Health When Typhoon Yolanda ravaged Leyte, Samar, Center program, with 43,109 beneficiaries, Northern Cebu and Northern Iloilo on the and training for barangay health workers. same month, GBP was able to distribute 5,200 relief bags in Iloilo, Cebu, Aklan and Capiz This approach ensures that community residents through the generous donations received have access to common over-the-counter from GBP employees, friends and relatives. medicines, particularly in times of illness, lessening unanticipated household financial Typhoon Yolanda toppled power and burdens and directing focus to healing. communication lines paralyzing the affected provinces. GBP assisted electric cooperatives Health Initiative Investments and Beneficiaries in these areas for the immediate repair and restoration of electricity lines. GBP sent boom Adopt a Medical Barangay Health trucks and coordinated with MERALCO in Health Center Missions Workers’ Training sending out technical teams to various service areas for assistance. CEBECO II, one of GBP’s serviced electricity cooperatives, was able to fully reconstruct its 69kV sub-transmission line in just 13 days. Power supply to most of the Company’s service areas were restored within 40 days. 43,109 2,922 123

TOTAL 46,154 Power 65

In recognition of its efforts to support its Social Development Programs communities, both CEDC and TPC have been given Special Citations for their corporate Toledo social responsibility programs during the Cebu • Streetlighting Project Grand Chamber Awards in 2015. The Special • Gym Lighting Project Citation is given to organizations with multitude • Footpath mixed with Fly Ash Project of relevant projects to their communities. • Provision of Water Pumps

Beneficiaries of Community Service Program Iloilo • Day Care Center Rehabilitation Project • Construction of Health Centers • Enhancement and Repair of Existing Health TOTAL Centers • Improvement of public CR, with water supply

16,482 26,627 provision Total 43,109 • Installment of street signages • Provision of streetlights

Mindoro Aklan Aklan • Streetlighting Project 479 658 • Rehabilitation of Barangay Health Center Total 1,137 2,043 3,251 Total 5,294 • Provision of Water Pump for Elementary School Iloilo Toledo Mindoro 12,122 20,323 1,838 2,395 • Repair of Basketball Court Light post Total 32,445 Total 4,233 • Rehabilitation of Health Center Extension Office • Construction of School stage WATER

68 Sustainability Report 2016 Metro Pacific Investments

Maynilad

Maynilad Water Services, Inc. (Maynilad) is the water and wastewater services provider for the West Zone of the Greater Metro Manila area, providing customers with piped-in water supply that meets the Philippine National Standards for Drinking Water of the Department of Health. It is the largest water concessionaire in terms of customer base in the Philippines.

Maynilad is managed by Maynilad Water Holding Company, Inc. which is owned and operated by MPIC, and DMCI Holdings Inc. (DMCI) and Marubeni Corp. The MPIC-DMCI consortium took control of Maynilad on January 24, 2007. As of year-end 2016, effective MPIC ownership of Maynilad was at 52.8%.

Maynilad is an agent and contractor of the Metropolitan Waterworks and Sewerage System (MWSS) for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (certain areas), Quezon City (certain areas), Makati (certain areas), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon—all in Metro Manila; and the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta and Rosario—all in Cavite Province. Maynilad’s concession area covers over 540 Aside from delivering potable water, Maynilad square kilometers. It operates and maintains provides sewerage services to its customers. 3 water treatment plants, 20 wastewater Currently, only residents and establishments plants, 30 pumping stations, 30 reservoirs, in Tondo, Sampaloc, South Manila, Malabon, 5 mini-boosters, 30 on-line boosters and Navotas, Caloocan, Projects 7 and 8 in Quezon City, 7,637 kilometers of water pipelines. Magallanes Village in Makati and parts of Muntinlupa may connect to Maynilad’s sewerage system. Maynilad’s customer base has expanded to 1,312,223 service connections or more than 9 Customers in areas not covered by Maynilad’s Million people. 98.2% of Maynilad customers enjoy sewerage network dispose of their wastewater 24-hour uninterrupted water supply, while 100% through their own septic tanks or sewerage are provided with water service at an average treatment facilities (for big commercial and of 7 pounds per square inch (psi) of pressure. industrial customers). Residential and semi- business customers who are located outside After launching one of the largest and most sewered areas and who maintain their ambitious NRW (non-revenue water) reduction own septic tanks may avail of Maynilad’s programs in Asia, Maynilad successfully brought septic tank cleaning (desludging). down its NRW level to 29.9% by the end of December 2016. The company replaced a total Water 69

of 196 kilometers of old pipes in 2016, bringing Maynilad’s huge investment in NRW reduction the total length of pipes replaced within its represents its full commitment to rehabilitating the concession area to 1,709 kilometers—about the water delivery network in Manila, especially its oldest same distance from Manila to Hanoi, Vietnam— districts, such as Malabon, Tondo and Sampaloc. since the company’s re-privatization in 2007. The company’s ultimate goal is to bring Maynilad invested ₱1.85 billion for its pipe NRW down to 20 percent by the current end replacement projects in 2016 alone. The old date of concessions with MWSS in 2022. pipelines rehabilitated last year were located mostly in Quezon City, Manila, and Bacoor City, Maynilad has generated approximately 228,000 where “pipe age” ranged from 30 to 40 years. jobs since its re-privatization in 2007. It has This allowed Maynilad to recover some 48 Million invested almost ₱100 billion in rehabilitating litres per day (MLD) of potable water, which is and expanding its water distribution network, enough to supply about 79,736 households. upgrading facilities, and enhancing wastewater services. These projects required the employment In 2016, Maynilad was able to generate 5,660 of more than 228,000 people to date, including jobs from its pipe replacement projects. those hired by contractors and suppliers that These jobs include those generated by the rely on Maynilad as their major client. contractors and suppliers of the company. 70 Sustainability Report 2016 Metro Pacific Investments

Sustainability Highlights

The Philippine company with the most number of ISO certificates passed across multiple sites for 56 offices and facilities

2,229 Total Employees

4,208,092 Man Hours No Lost Time Accident

110,000 Youth Participants in Daloy Dulong to Date • Service Coverage: 94.3% • Maynilad Concession • La Mesa Watershed

19,400 Beneficiaries of Samahang Tubig Maynilad to Date Water 71

G4-EN8

2015 2016

Total Water Withdrawn Total Pipe Network

7,575 km 7,637 km

847 Billion 907 Billion litres litres

New Pipes Laid Total Water Produced

117 km 62 km 822 865 Billion Billion litres litres

Non-Revenue Water (NRW) Man Hours No Lost Time 31.1% 29.9% Accident (MHNLTA) 3,847,628 4,208,092 Total Population Served

9.2 Million 9.3 Million

Pollution Prevented Treated Water Discharge Productivity Index 57.1 Billion litres 8.5 Million kg 1.7 persons/ 57.9 Billion litres thousand 6.5 Million kg connections

1.7 persons/ CAPEX thousand ₱9.4 Billion connections ₱10.1 Billion 72 Sustainability Report 2016 Metro Pacific Investments

Operational Efficiency

Maynilad fully appreciates the importance of Maynilad organized a “Green Team” — a cross- ensuring the sustainable relationship of its functional team composed of employees from operations with the environment, because it different operating units — to ensure that the draws on natural resources to supply water to its inventory plan and emissions calculations cover customers, and its wastewater services directly the entire organization. These select employees impact the state of waterways and river systems. received technical training and assistance from the Philippine Business for the Environment Certified for ISO 14064:2006 since 2009, (PBE) and Clean Air Initiative - Asia so they could Maynilad has been implementing an Inventory develop the necessary framework and processes Management Plan that includes the conduct of for determining the company’s emissions. an annual GHG and Air Pollutants Inventory. With this, the company can set accurate targets, Though Maynilad’s total emissions increased due systematically monitor reductions, and develop to water service coverage expansions and the a fair comparison for assessing the impact of rehabilitation of wastewater treatment plants, the its reduction initiatives. Moreover, this also company was able to make its operations more sets in place protocols that would verify and efficient. Maynilad benchmarks its emissions validate its GHG/AP emission findings. against select companies all over the world engaged in water production and distribution. Maynilad uses the Operational Control Approach for defining its organizational boundaries, As part of its commitment to its stakeholders, or those that distinguish which emissions it Maynilad continues to innovate in order to directly and indirectly produces. This means improve operational efficiency and optimize that Maynilad accounts for all emissions from its carbon emissions. It seeks to sustain the sources that it controls operationally. decreasing trend in its GHG intensity, to lessen detrimental impacts to the environment. Water 73

Case in point is Maynilad’s uniquely designed These certifications confirm that Maynilad unified IT (information technology) and OT meets international standards in its NRW- (operational technology) system called Field related systems and processes, which cover MOUS (Field Monitoring User System). It is a set pipe replacements, leak detection and repair, of software modules designed for plantwide and metre management. In fact, the company monitoring and analysis. It also comprises a has reduced its NRW from 31% to 30% in 2016 system data archive that handles the collection, which is equivalent to 9 Million litres per day. This storage, and retrieval of data and also acts recovered volume is enough to fill up roughly 3.5 as a data repository for all applications. Olympic-size pools every day, and supply about 1.5 Million households with potable water. Ultimately it allows management to understand where the business stands operationally at Maynilad’s NRW Reduction Program includes any given moment in time. Field MOUS is the regular replacement of old pipes. Since Maynilad’s IoT platform, enabling sensor data 2008, the company was able to replace a total to be viewed, virtually in real time, at the central of 1,709 kilometers of pipes, which is about control room. With innovations such as this, 43% of the total water network Maynilad Maynilad was able to obtain an ISO 20000:1 inherited after re-privatization in 2007. certification for its information technology service management system, and also received the Moreover, the company continues to operate SAP Customer Center of Expertise certification state-of-the-art leak detection technologies. for its efficient business processes. This enabled Maynilad to repair 27,936 pipe leaks in 2016 alone, bringing the total number Another path to operational efficiency has been of leaks repaired to 290,180 since 2008. the company’s massive metre replacement (MMR) program in support of the NRW drive. The program Maynilad’s NRW reduction program also includes focuses on replacing faulty meters to achieve metre and pressure management, active leakage correct metre sizing relative to true consumption. control, primary line assessment, selective pipe The MMR program was put in place under replacement, and District Metreed Area (DMA) Maynilad’s Integrated Metre Management system. management. The company has spent some ₱18.95 billion for this program since 2008. The Central Non-Revenue Water (CNRW) Division which oversees the company's water loss As a testament to its earnest pursuit of reduction program, recently secured three ISO operational efficiency, Maynilad holds a total certifications from international auditing and 209 ISO certifications as of end 2016 — including certification body TUV Rheinland Philippines. a company-wide ISO certification received in 2015. Currently, it holds the distinction of A total of nine certificates were awarded to being the Philippine company with the most three CNRW sites—its headquarters in Makati, number of ISO certificates passed across Leak Detection Management office in Manila, multiple sites for 56 offices and facilities. and Integrated Metre Management laboratory in Pasay—after passing the strict audit for For 2016, it was conferred the ISO 50001:2011, three management system standards: ISO certifying the Energy Management System of 9001:2008 (Quality Management System), Maynilad to be world class with regard to La Mesa ISO 14001:2004 (Environmental Management Treatment Plants 1 and 2, the pumping stations System) and BS OHSAS 18001:2007 (Occupational at La Mesa, Villamor, Pagcor City and Pasay, as Health and Safety Assessment Series). well as the Tondo Sewage Pumping Plant—all considered vital facilities for operations. 74 Sustainability Report 2016 Metro Pacific Investments

G4-PR5 Service Excellence

Overall Customer Satisfaction Rating The ₱428 Million North A Pumping Station Annex will serve more than 84,000 households 2015 2016 in Barangays Greater Lagro and Pasong Putik in Quezon City; and Barangays Deparo I and II, Bagumbong, Urduja, Malaria, Barracks, 2.99 / 4.00 3.36 / 4.00 Tala, Miramonte Heights, Mountain Heights, Congressional Housing, Bagong Silang, Zabarte, and Camarin Area A, B, C and D in Caloocan City. Of these over 84,000 households, some 10,000 households will be new customers. Aiming to transform its service culture into one that prioritizes customer satisfaction above all With this new facility, existing Maynilad key result areas, the company launched the Higit customers in these areas will experience an sa Tubig: Isip, Puso at Gawa (“Beyond Water: Mind, increase in water pressure from 7 pounds per Heart and Action”) program in 2015. Then the square inch (psi) to 16 psi. The North A Pumping company designed a comprehensive three-year Station Annex will also enable Maynilad to roadmap from 2016-2018 and is now executing bring potable surface water to households that the strategies to transform itself into a cohesive still rely on deep wells, thus improving water organization that is stakeholder-centric, focused quality and availability for the residents. on delivering service-obligation targets. The construction of this supplementary The company rolled out organizational changes facility involves the installation of four new and capacity enhancement, upgrading both pumps to support the existing six pumps of personnel and facilities in accordance with the North A Pumping Station, thus increasing roadmap that would lead it beyond water provision its daily water discharge capacity from 150 and into a full-line water solutions company. Million litres per day (MLD) to 430 MLD.

Facility upgrades included the building of a Maynilad has allocated ₱883 Million for the supplementary pumping station inside La Mesa construction of new pumping stations. Other Compound in Quezon City to improve water pressure pumping stations currently under construction and expand coverage in Quezon City and Caloocan. are in Victoria Homes, Muntinlupa City, and in Water 75

Magdiwang, Bacoor, Cavite. At present, Maynilad Agency (JICA), the project is part of Maynilad’s has 30 pumping stations located in strategic program to expedite the provision of sewerage locations throughout its West concession area— and sanitation services in Metro Manila. up from only seven operational pumping stations in 2006 before the company was re-privatized. Meanwhile, for its Septage service, Maynilad reports having cleaned a total of 96,594 The company is also currently constructing septic tanks from around 175,045 households six new reservoirs in various locations within in 2016—a 53% increase from 2015. This its West Concession area to help improve enabled the company to collect and treat over water supply and pressure for its customers, 168,047 cubic meters of septage, in line with particularly those living in elevated portions. its goal of protecting the environment. Since 2007, Maynilad has already built 30 reservoirs—up from only eight reservoirs Maynilad also has a meter laboratory, the first before the West Concession was re-privatized. in South East Asia, which is capable of testing large meters ranging from 15mm to 300mm. The The new reservoirs are located in Quezon City, facility is also then able to provide testing services Muntinlupa, Imus City, Cavite City, Bacoor for companies that supply water meters in areas City, and Noveleta in Cavite Province. Once outside Metro Manila. The laboratory features completed around the last quarter of 2017, the an advanced meter test bench that determines impounding facilities will add 23% or 140 Million the metre accuracy by comparing the volume litres per day (MLD) to Maynilad’s water-holding of water passing through it with its registered capacity. This volume of stored water combined reading. This technology enables fast, efficient, and is enough to meet the supply requirements precise measurements of water consumption. of about 1.3 Million Maynilad customers. Futhermore, Maynilad runs a Central Laboratory, On the other hand, Maynilad’s Sewerage service which monitors and tests the quality of water also continues its pursuit of excellence as it and wastewater in the West Zone. The Central is currently laying a sewer network that will Laboratory has passed the stringent assessment benefit some 516,000 people in nine barangays of DENR which was conducted in the last quarter and 95 subdivisions in Parañaque City. of 2015, underlining the lab’s high standards when it comes to the quality, accuracy and The project involves the laying of about 65 kilometers precision of chemical and microbiological testing. of sewer pipes with diameter sizes ranging from 200mm to 1,500mm. The project is targeted As such, Maynilad is now authorized by DENR for completion by the third quarter of 2017. to generate environmental data in connection with the Environmental Impact Assessment The Parañaque sewer network will catch, (EIA) system, environmental monitoring, and collect, and convey wastewater generated research activities to be used by the government by households in Barangays La Huerta, San for environmental planning and policy-making. Dionisio, BF Homes, Don Bosco, Marcelo Green Village, Moonwalk, San Antonio, and San Isidro Prior to the DENR accreditation, Maynilad’s Central to the company’s Sewage Treatment Plant. Laboratory was conferred with the ISO 17025:2005 This will ensure the proper removal of harmful by the Department of Trade and Industry (DTI)- elements from the wastewater, thus protecting Philippine Accreditation Bureau (PAB). It is also community health and the environment. accredited by the Department of Health (DOH) as a laboratory for drinking water analysis. Funded by the Development Bank of the Philippines and Japan International Cooperation 76 Sustainability Report 2016 Metro Pacific Investments

G4-11, G4-LA9 Engaged and safe workplace

Employment by Gender Employment by Rank Employment by Age Range

550 611 616 304

401

1,679 1,466 1,002

Male Rank and File Manager Over 50 Female Supervisor Executive 30 to 50 Under 30

Average Training Hours 2015 2016 Rank Executive 68.09 65.62 Manager 48.44 50.59 Supervisor 34.13 40.65 Rank and File 15.18 22.50

For 2016, Maynilad’s manpower headcount was whose compliance is consistently high at around 99% 2,229 strong. and an annual vaccination program that negotiates significantly discounted rates for employees and The workforce gender distribution still toes the their dependents. This year, there were only industry’s traditional line and is predominantly six cases of flu and 65 cases of pneumonia. composed of male employees, at 75% of the population, while the remaining 25% is Maynilad also maintains a drug-free policy, which female. At the Management and Executive prescribes the conduct of random drug testing for positions, though, the percentage of ranking all employees. These drug tests have a compliance women goes higher at over 36%. of 99 percent. The company provides support for employees that tested positive for drug use Majority of our employees (75 %) are covered through a rehabilitation program in partnership by Collective Bargaining Agreements that are with a DOH rehabilitation and treatment facility. spearheaded by two employees’ associations, namely Maynilad Water and Sewerage Union- The company also closely monitors employees who Philippine Trade and General Workers’ are at higher risk for hazard exposure, providing Organization (MWSU-PTGWO) and Maynilad preventive measures to ensure safety. 2016 posted Water Supervisors Association (MWSA). 100 % compliance of at-risk employees undergoing blood tests for various chemical components. Ensuring the health and safety of its workforce, These yielded results within the acceptable limits. Maynilad constantly creates and strengthens employee-focused programs that show the The safety of Maynilad’s employees is of utmost company’s genuine concern for people’s physical, importance to the company’s top management who emotional, and professional well-being. This includes make concerted efforts to ensure that all precautions an Annual Physical Examination (APE) program and measure are taken. Maynilad was recognized Water 77

by the Safety Organization of the Philippines, Inc. to innovative thinking. And as management (SOPI) for attaining an all-time high record of 20 adopted innovation as a core business strategy, Million Man Hour No Loss Time Accident (MHNLTA) cultivating an engaged workforce steeped in in all of its facilities and offices. The outstanding a culture of innovation became essential. safety achievement is a testimony to Maynilad’s uncompromising commitment to strict health, Maynilad has a workforce composed mostly — safety, and environment standards and practices. over 90% — of engineers, many of whom have been with the company for more than 10 years. SOPI presented an Award of Excellence to And believing that the best people to identify Maynilad during the 10th Gawad KKK (Kaligtasan. and find solutions for operational gaps are Kalusugan. Kapaligiran.) ceremony held in those who handle the operations themselves, Diliman, Quezon City. The award recognizes the company decided to sponsor an annual SOPI member-institutions that provide and competition called “Think Maynilad Innofest” that maintain a safe and healthy workplace that either encourages innovative thinking among employees. result to a Zero Lost Time Accident Record or a significant drop in accidents and injuries. This year, winning ideas were: a lightweight but heavy-duty chamber made from special steel that Maynilad is the only SOPI member- organization can serve as a replacement to conventional concrete that has posted 20 Million man-hours without chambers, and a maintenance-free enclosure any incident or Loss Time Injury (LTI). that protects air valves from water penetration.

Increase in safety translates to increase in efficiency, producing an environment conducive 78 Sustainability Report 2016 Metro Pacific Investments

G4-SO1 Social Responsibility

Maynilad has made Corporate Social Responsibility (CSR) an integral part of its business strategy, championing initiatives that promote poverty alleviation, sustainable water management, and community development. At the same time, the company cultivates partnerships for enhanced environmental awareness and extends assistance during times of calamity.

Maynilad’s CSR programs and projects focus on four major areas: Sanitation and Health Promotion, Community Empowerment, Disaster Relief and Response, and Environmental Stewardship.

For Sanitation and Health Promotion, Maynilad’s Daloy Dunong program aims to increase appreciation about the value of water through the conduct of fun and meaningful activities that promote proper hygiene, good health, and environmental responsibility among the youth. More than 350 schools have hosted the program since 2012 and there have been more than 50 off campus engagements. Close to 110,000 youth have been program participants.

Maynilad also has a program called Lingkod Eskwela which is intended for West Zone public schools that have no access to potable water. It involves the construction of drinking fountains, clean-up of water reservoirs or tanks, and regular sampling of drinking water to ensure its quality. To date, 44 public schools have been recipients of this initiative.

Meanwhile, the company has several initiatives for Community Empowerment, including putting up Water Cooperatives. Maynilad For instance, Maynilad’s Samahang Tubig and civil society groups partnered to address Maynilad (STM) gives underserved communities the problems of water inaccessibility and access to potable and affordable water. irresponsible water use in the company’s The 13th STM was launched at Riverview in concession area. Under the project, residents Barangay Batasan Hills, benefitting 60 informal of urban poor communities are organised and settlers’ families. The program works by given training to make sure that they are capable organizing an informal settlers’ community of sustaining water management programs. into a cooperative-basedw organization. Public faucets are then installed in the program area. The company provides additional support in Water 79

the form of values formation and skills training Also addressing Community Empowerment is the on the proper management of faucets. Habing Buhay project which taps communities for gathering fast growing water lilies in waterways About 19,400 people have benefited from and utilizing them as raw material for craft- STM since its inception in 2009. Significant making. Conducted in partnership with the Villar family savings are at ₱300-₱500 a month per Foundation, which has expertise in turning dried household as they no longer need to buy illegally water lily leaves into sellable items, the project tapped water. Other STM sites are located in now benefits the residents of Barangay Putatan in Manila, Caloocan, Malabon, and Quezon City. Muntinlupa. The participants gained the necessary 80 Sustainability Report 2016 Metro Pacific Investments

knowledge to repurpose the fibers of the water As for Environmental Stewardship, Maynilad lily plant into functional pieces. The enterprise maintains its program called Plant for Life. has grown to include bags, baskets, boxes, and Originally created to reforest the watersheds in mats that are appreciated by a higher market Angat, Ipo and La Mesa, the Plant for Life program base. Habing Buhay products were also part of is now a multi-site reforestation and afforestation the company’s 2016 corporate giveaways. program that includes the areas along the coastlines of Laguna Lake and Manila Bay. For In addition, there is also the Sining Ipo 2016, Maynilad planted a total of 95,700 trees. program that engages the community of Dumagats in the Ipo Watershed area. Sining Last year, over 1,500 volunteers from Maynilad Ipo provides an alternative livelihood to and its partner organizations planted a total the slash-and-burn farming that Dumagats of 70,700 indigenous trees over 58 hectares of typically live on by fostering their artistic skills the Ipo Watershed, as well as 25,000 mangrove as sculptors. The project held a successful propagules along the Manila Bay coastline in exhibit, Sungka Series which was subsequently Cavite City, Bacoor City, and the municipalities followed by mentorship from artist Tata Raul of Noveleta and Kawit in Cavite Province. Funilas. Dumagat sculptors further learned to produce exquisite wine holders from To date, Maynilad has planted around 486,300 driftwood. These art pieces were also among saplings—using indigenous trees like Narra, Maynilad’s 2016 Christmas giveaways. Cupang, Acacia and Alibangbang—in the Ipo Watershed since 2007. Moreover, a total of For Disaster Relief and Response, Maynilad 112,000 mangrove propagules have already been is committed to its Mission Ginhawa, a planted in the Cavite coastal areas since 2013. program which provides donations of clean water, compact micro-filtration systems and Also in 2016, Maynilad, its Parañaque Business technical assistance, the company strives Area, and the Parañaque City Government to deliver relief to those who need it most. inaugurated 12 FAITH (Food Always in the The Mission Ginhawa team visited areas in Home) Gardens. FAITH Gardens is a home food Kalinga, Apayao, Tuguegarao, and Penablanca, security program with that aims to provide Cagayan after super typhoon Lawin struck the a steady source of fresh vegetables to the region. In addition to providing water relief Department of Social Welfare and Development’s to the communities hit by signal number 5, 4Ps beneficiaries, senior citizens and other community residents were also taught on marginalized groups within the city. For its part, the proper use of water filters donated. Maynilad installed 260-gallon overhead water tanks and drip irrigation systems, and provided Maynilad and its Business Areas (BAs) also technical assistance in the setting up of each responded to a minimum of 12 fire incidents community garden. The company also conducted in 2016, and essential water supplies were Ginhawa Gardening Workshops so residents are given in aid to the survivors. Furthermore, relief equipped with the right knowledge in starting effort partnerships with the MVP CSR Council backyard gardens with or without a plot of land. continued in El Nino-stricken areas in Mindanao. Water 81

Community spirit brings Estero de Paco back to life

Back in 2010, Samuel Macabare was feeling areas of the river and take care of the anxious when he heard that Maynilad vegetation around it. was starting a wastewater project in their area in Paco, Manila. “They’re putting a Along with concerned volunteers such treatment plant here? So they’re bringing as Samuel and Angelita, there are other wastewater here?” was his worried thought. organizations who have been helping keep Estero de Paco clean. Aside from PRRC and The Paco Wastewater Treatment plant Maynilad, there is the Asian Social Institute, was built by 2012, with capacity to clean Samahan at Ugnayan ng Mamamayang over 410,000 litres of wastewater from Makakalikasan, and other private residential areas every day. organizations.

Samuel was among the 2,000 residents Another big factor was the readiness of around Estero de Paco who benefited the community around the Estero to help from the refreshed environs that was out and cooperate with clean-up initiatives. brought about by the operation of the new “People around here help out in cleaning facility. Aside from its usual operations, and planting. Whenever you ask for help, Maynilad also put in place additional they are always willing to do their part,” wastewater infrastructure to ensure said Angelita. the maintenance of cleanliness for the community’s waterway. In fact, the community has successfully maintained its initiative of assigning families “All the dirty water from the septic for the upkeep of their gardens by the tanks and the houses were being Estero. Today, the gardens are producing filtered and brought to the plant,” said fruits and vegetables that can be harvested Angelita Imperio, a 60-year old Education by the families. graduate and retired teacher who is now a River Warrior from the Pasig River The Paco Wastewater Treatment Plant is Rehabilitation Commission (PRRC). “It one of the keys to maintaining cleanliness was really a good thing. In the past, so of waterways, especially since 80% of water much dirty stuff float down the river, you consumption in residential areas become just couldn’t clean it up! But ever since wastewater. It is through the cooperation Maynilad’s project, we couldn’t find any of government, private companies like more wastes going downstream.” Maynilad, civil society groups and the community that the continued health and An Education graduate of Polytechnic cleanliness of waterways such as the Estero University of the Philippines and a retired de Paco is ensured. teacher, River Warrior Angelita has been a regular volunteer who went down the river “Since I was eleven, I’ve always dreamed to gather trash and cut overgrowing plants. that we can clean up our Estero. Now it’s a She also helped clean the surrounding reality,” said Angelita. TOLL ROADS

84 Sustainability Report 2016 Metro Pacific Investments

TOLL ROADS

MPIC holds the majority of its toll road assets Subic Bay Freeport, the Clark Freeport Zone, through its wholly owned subsidiary, Metro and the Central Techno Park in Tarlac. Pacific Tollways Corporation (MPTC). MPTC holds a 75.60% effective interest in Manila North Tollways Management Corporation (TMC) Tollways Corporation (MNTC), which holds the is primarily engaged in carrying out the concession rights to construct, operate, and operations and maintenance of toll roads, toll maintain the North Luzon Expressway (NLEX) road facilities, interchanges and all related and Subic-Clark-Tarlac Expressway (SCTEX). works. First invested in 2008, effective MPIC ownership of TMC is at 60% as of year-end 2016. Also under the umbrella organization of MPTC are the Tollways Management Corporation TMC operates and maintains the 95-kilometer (TMC); and the CAVITEX Infrastructure NLEX and the 94-kilometer SCTEX. With Corporation (CIC) which holds the concession uncompromising commitment in serving rights for the operation and maintenance of the Filipino people, TMC is committed to the Manila-Cavite Toll Expressway (CAVITEX). delivering world-class service to motorists and commuters in North Luzon. Manila North Tollways Corporation (MNTC) is primarily in the business of developing, designing, In 2016, MNTC opted to change its name to constructing, financing, operating, and managing North Luzon Expressways Corp. (NLEX Corp.) toll road projects. As builder-concessionaire of and leadership decided on a merger with toll roads, MNTC runs the 95-kilometer NLEX TMC. These initiatives gained Board approval and the 94-kilometer SCTEX, which set the pace on October 19, 2016 and November 17, 2016, of world-class tollways in the Philippines. and were subsequently ratified and adopted by NLEX Corp. stakeholders on November 17, NLEX is the country’s showcase for toll road 2016. Meanwhile, TMC stakeholders ratified and operations, management and maintenance adopted the same on December 15, 2016. and customer service with standards comparable to modern toll roads elsewhere As the absorbing entity, NLEX Corp. is seen to in the world. NLEX is the main road artery that benefit from the synergies brought about by its connects Metro Manila to some 15 Million merger with TMC, deriving an enhanced capability people in North and Central Luzon and serves to deliver critical public service to motorists approximately 220,000 vehicles per day. plying the Northern routes. This is particularly true in aspects of managerial effectiveness and In October 2015, the Bases Conversion and increased capitalization. The Merger is still pending Development Authority (BCDA) turned over regulatory approval as of March 28, 2017. the management, operation and maintenance of the Subic-Clark-Tarlac Expressway (SCTEX) For purposes of this Report, MNTC and TMC to MNTC. SCTEX, which is accessed by an will be collectively referred to as NLEX Corp. average of 45,000 vehicles per day, seeks to transform Central Luzon into a world-class Meanwhile, MPTC’s Cavite Infrastructure logistics hub in the Asia-Pacific region through Corporation (CIC) is charged with the the integration of economic activities in the management of the Manila-Cavite Expressway Toll Roads 85

TOLL ROADS

(CAVITEX). MPIC’s effective ownership of The establishment of CAVITEX has eased vehicular CIC stands at 100% as of year-end 2016. traffic on a major stretch of road towards Cavite province where an export processing CAVITEX is a 14-km expressway along the coast of zone is located, along with other businesses Bacoor Bay after south of Roxas Boulevard which and factories as well as residential areas. Travel exits to Bacoor City and Kawit. It connects people time going to and from the province of Cavite and enterprise from the southern and western via CAVITEX has been considerably reduced, parts of Metro Manila to the provinces of Cavite, benefiting residents and enterprises in the Batangas, Laguna and vice-versa. Among regular area as well as surrounding municipalities. travelers, it is also known as the Coastal Road. SUSTAINABILITY HIGHLIGHTS

Collectively, NLEX, SCTEX, and NLEX-SCTEX NLEX Corp. and CAVITEX, served Integration reduced CIC employs approximately travel time through 1,346 people 495,805 the expressway by vehicles per day 40 minutes

The Gusto Ko, Ligtas Tayo program by A ₱2.6 Billion road-widening NLEX Corp. taught road safety awareness project covering Segments 2 and 3 of to 1,758 participants from 14 NLEX is on-going elementary schools and 9 barangays

CIC CIC is the first Toll Road in the Philippines The Road Safety Advocacy called Tropang to use the Radio Frequency Cavitex gave lectures on safe expressway Identification (RFID), known as driving to 382 buses, trucks, PUJs and EasyDrive, an electronic payment other service drivers. system which improved vehicle throughout thereby improving lane efficiency by reducing transaction time. 86 Sustainability Report 2016 Metro Pacific Investments

Operational Efficiency

NLEX Corp. officially finished the NLEX-SCTEX SCTEX were also converted into a unified Integration Project on March 21, 2016. It was made system. Toll collection stops from Balintawak fully operational just before Holy Week, bringing to Subic and back have been reduced from five immediate relief to the anticipated increase in to two, while Balintawak to Tarlac and back traffic volume. Annually, during this travel period, have been reduced from four to two stops. traffic volume increases from between 10% to 15%. Seven new toll plazas were also constructed Providing motorists a faster, more convenient throughout the northern expressways to further and efficient travelling experience, the project streamline travel. These include toll plazas in is the first integration among expressways Tarlac, Subic-Tipo, Sta. Ines, and the northbound in the country. Completed at a cost of ₱650 and southbound sides of Dau and Mabiga. As a Million, the toll collection systems of NLEX- result of the NLEX-SCTEX integration, the NLEX Toll Roads 87

Dau and SCTEX Mabalacat barriers have been two-lane portion of NLEX between Sta. Rita removed to support the smooth flow of traffic. and San Fernando to three lanes on both the northbound and southbound sides. The current Utilizing a common transit ticket system for one-lane stretch between Dau and Sta. Ines will both the closed system of NLEX and that of also be expanded to two lanes on both sides. SCTEX, a single official receipt is now issued to expressway users. The receipt through In other parts of the NLEX, a heavy maintenance still provides a breakdown of the NLEX program, which was also began in 2016, is and SCTEX toll charge portions. Electronic halfway to completion as of year-end 2016. This payment option Easytrip, previously available ₱113 Million project involves road patching of in NLEX, can now also be used in SCTEX. north bound and south bound portions of the expressway from Valenzuela to Sta. Ines. Due to the integration and faster queues at the toll plazas, travel time was cut down by as Also progressing is the expansion of the much as 40 minutes. More importantly, the NLEX Bocaue Toll Barrier from 25 toll lanes integration ultimately benefits commerce as a to 33 toll lanes. Costing an estimated ₱200 more expedient delivery of goods and services Million, this expansion will substantially is made possible through the seamless flow enhance the mobility of motorists passing of traffic in the northern expressways. through the Bocaue southbound toll plaza.

NLEX Corp. is also improving the full 94-km Rehabilitation or replacement of the equipment in stretch of the SCTEX. This is to bring it to the toll booths in all SCTEX plazas is also in order. Once same international quality of the NLEX. Asphalt completed, this will enrich customer experience. overlay and road patching began in 2016. This The NLEX Corp has also allotted is ₱47 Million is part of a three-year, ₱1 billion pavement of capital expenditure for system and software, improvement project. It is initially focused traffic devices, and facility improvements. on rehabilitating the stretch of the road from Porac, Pampanga to Concepcion, Tarlac. As of Meanwhile, CAVITEX has begun the strategic year-end 2016, 39 out of 122 lane kilometers conversion of cash lanes to RFID lanes. CAVITEX have been paved at the mainline, while 16 has earlier launched the EASYDRIVE RFID out of 61 lane kilometers have been paved (Radio Frequency Identification) for Class 1, 2 at the outer shoulder of the expressway. and 3 vehicles and is now pushing for its wider use among motorists. A free RFID promo was While NLEX is already of best in class quality, launched in early 2017 to induce RFID use and upgrades are set to continue. A ₱2.6 billion lane trial by motorists who were largely used to road-widening project covering Segments 2 paying cash. The promo was successful as the and 3 of the expressway is underway. This will company noted a substantial increase in cashless provide better free flow among the growing transactions, which served to improve lane number of vehicles plying the tollway. Begun in efficiency and capacity and decreased queueing March 2016, the project will expand the existing time during morning and evening peak hours. 88 Sustainability Report 2016 Metro Pacific Investments

G4-PR5 SERVICE EXCELLENCE

NLEX Corp conducts a customer satisfaction The average overall satisfaction rating obtained survey during the last 10 days of every month through these surveys for the period of November throughout NLEX-SCTEX. Face-to-face interviews 2015 to October 2016 was at 90.35 out of 100. were conducted by a third party guided by a The surveys will resume in January 2017. structured questionnaire. Respondents range from private motorists to light public utility motorists to bus drivers, truck drivers, and business operators.

Nov 2015 - Jan 2016 Feb - Apr 2016 May - July 2016 Aug - Oct 2016

89.9% 90.3% 90.6% 90.6% OVERALL OVERALL OVERALL OVERALL SATISFACTION SATISFACTION SATISFACTION SATISFACTION

To ensure accessibility to its customers, Similar to the NLEX, Customer Service Centers NLEX maintains Customer Service Centers are situated along Cavitex. Located at the south strategically located along the expressway. bound and north bound of the Parañaque toll These centers attend to walk-in customer plaza. A one-stop-shop where motorists may inquiries, complaints and purchase of NLEX walk in to inquire, file their comments, feedback products. NLEX also maintains a 24-hour hotline and concerns, transact payments and other service which responds to customer concerns. fees, purchase and reload the EASYDRIVE RFID. Concerns may also be raised via its social A customer service is always present to attend media accounts on Twitter and Facebook. to the needs of any motorists who visits.

CIC, on the other hand, follows a different process The more common interactions are done to monitor and capture customer experience through frontliners such as toll tellers, patrol and handle performance. On a quarterly basis, crew, and security guards who are trained internal audits are conducted and these include: to initially attend to motorist inquiries and concerns within their scope. Motorists may also • Quality Assurance. In-house audit contact the customer service hotline 165-8888 and inspection directed to the or communicate via the Cavitex Facebook and appropriate reporting of procedural Twitter which are jointly attended to by the and behavioral deviations. Customer Service Department, Traffic Control Room Personnel, and the Communications • External Audit. Conduct of situational and Stakeholder Management teams. audits inclusive of lane processing improvement, customer satisfaction, Great CAVITEX customer experiences are and contract compliance. captured through its Online Customer Concern Management System (OCCMS). This is where CIC • Revenue Assurance. Toll audit of Customer Service receives and inputs various compliance to SOP including cash handling, customer feedback. All registered complaints revenue, exceptional transactions, receive an acknowledgement from the concerned and/or procedural deviations. Toll Roads 89

department within 24 hours of system encoding. respond in a rapid and efficient manner to any Resolution turnaround time is normally achieved disturbance or emergency situation within the within five calendar days. For specific concerns NLEX and SCTEX. The expected response rate to its RFID brand EASYDRIVE, motorists are is 20 minutes on average for all calls received referred to Easytrip Hotline 555-75-75. or routed to the Traffic Control Room.

In addition to these initiatives to monitor Patrol crews are trained and authorized to conduct customer experience, NLEX-Sctex and CAVITEX road accident investigations with the option to also maintain an annual Heavy Maintenance further endorse cases to the Philippine National Program. The expressways undergo repairs like Police. Road safety remains the primary objective crack mapping and sealing, pothole patching, of the Patrol Crew. Even as they assist road users, milling and overlay, among others. The program is they may order the immediate clearing of debris geared towards optimizing ideal road conditions and vehicles that may be impeding the smooth to extend service life of the roadway asset. flow of traffic or posing as a danger to motorists.

Road safety is another concern the company An Emergency Medical Service (EMS) provider focuses on. For instance, TMC has published is also on stand-by 24/7 in case crucial first-aid, an affordable New North Luzon Expressway emergency life-line support and/or pre-hospital Motorist’s Handbook as a guidance manual to care are needed. The paramedic response ensure a safe and convenient travel experience unit is competent in the application of invasive on the NLEX. The guidebook includes general tips maneuver appropriate to emergency care. The for driving in the NLEX, handling emergencies, EMS team is linked to a network of medical understanding road signs and signals, observing aid specialists who have extraction and air traffic rules and regulations, and a linear transport capability for accident victims. map for motorists traversing the Balintawak Toll Barrier up to the Sta. Ines interchange. Advanced Life Support (ALS)-equipped ambulances Emergency hotline numbers were also clearly are available should a situation arise where a road indicated at the end portion of the handbook. user is severely injured or whenever critical care may be necessary. Emergency medical protocols What’s more, TMC has a 24/7 Traffic Management are followed with due consideration given to and Safety Department which is committed to pertinent circumstances unique to every situation. 90 Sustainability Report 2016 Metro Pacific Investments

Partnered with the ALS Ambulance is an extrication/ Most incidents are categorized as either a recovery vehicle. Response time is the same vehicular breakdown or a vehicular crash. as the Patrol Crew, averaging 20 minutes from receipt of call by the Traffic Control room (TCR). Upon arrival at the accident site, the TAIs immediately request the necessary assistance Meanwhile, NLEX and SCTEX outsourced security from concerned units, prioritizing injured personnel are on circuit duty 24/7. They ensure motorists. Saving lives takes precedence over regular roving inspections and remain in an investigation. communication by means of handheld radios for timely and efficient communications. Logbook An investigation on damage to property follows. records are strictly maintained for monitoring Traffic violators are issued a citation by a TAI purposes. Further, the NLEX and SCTEX are both as they are deputized to do so by the Land equipped with CCTV System with monitoring Transportation Office (LTO). Coordination with cameras strategically installed throughout its appropriate local traffic management units is buildings and carriageways. The monitoring made by a TAI for accidents resulting in injury of the CCTV System is handled by the TCR. or fatality. CAVITEX traffic accident reports become part of any ensuing investigation Similarly, CAVITEX, has contractual arrangements by the Philippine National Police (PNP). with a third party security service provider and Emergency Medical Services provides who have Meanwhile, damage to CAVITEX property are personnel on standby 24/7. Ready for deployment inspected and evaluated by Facilities Maintenance at a moment’s notice, there is an appropriate while payment collection from concerned ratio of active duty security guards to relievers. parties is handled by the Finance department. All traffic incidents within the corridor of CAVITEX are reported to the TCR. Reports are made by In pursuit of always improving safety and responding Patrol Officers, Traffic Marshalls, security for motorists, CIC will be undertaking Roadway Security, or by concerned motorists. installation of advanced analytical CCTV cameras within CAVITEX and has recently acquired digital As practiced in the NLEX and SCTEX, Patrol and radios with GPS capabilities. Response time to Traffic Accident Investigators (TAI) are also on traffic incidents is expected to improve with duty 24/7. They are immediately dispatched as the added adoption of these innovations. soon as the TCR receives an accident report or detects an incident through the CCTV. The TCR With their dedicated and committed focus on safety then makes an assessment of the nature of the and security, both NLEX Corp. and CIC regularly traffic and deploys a response unit according receive personnel commendations for its response to the situation. Incident response units are and rescue services, many of which are received comprised of EMS (Aeromed), Emergency Roadside through social media. Motorists express their Towing Services (ERTS), Incident Response, gratitude for NLEX Corp. and CIC staff who provided and Traffic and Security Operations personnel. them unconditional help, rapid response, mechanical knowledge, courtesy, and bribery-free aid.

NLEX Corp CIC

12 minutes 15 minutes 12 minutes Patrol Assistance Medical Service Traffic Incident Average Response Time Average Response Time Average Response Time Toll Roads 91

Restoring faith through public service CAVITEX

Social Media is where consumers are able to freely express their unfiltered sentiments and opinions about the different services they receive from various companies and agencies. Social media is where the average motorist is able to express their genuine feelings toward their experience on the road.

It is notable, therefore, how the Cavitex Highway Patrol officers have shown that through professional and wholehearted public service, the motoring public that they serve will benefit greatly and appreciate it deeply.

Throughout the year, Cavitex has been receiving Social Media shout outs for officers who have delighted people who have been helped in their time of distress, such as those who suffered vehicle breakdowns and flat tires. The fast and expert response of the officers to situations on the road made them feel safe and in good hands.

“This is to express my sincere appreciation to your kind and honest Patrol and Towing Officers for their dedication and immediate response to help, without asking for anything in return, defying the stereotype practices among men in uniform. I salute all the personnel and patrol officers of Cavitex. More power and may God bless you more!” wrote one motorist as he commended Patrol Officer Pangilinan.

Among those who have received public commendations from the people they have assisted were PO Calanno, PO Jaramilla, PO Abad Reyes, PO Batuigas, PO Gantan, PO Baria, PO Azarcon, PO Mahayag, PO Comala, PO Lim, PO Pangilinan, PO Garcia, PO Plan, PO Julianda, and TCR Specialist Bula.

The commendations all highlighted the fact that the officers refused any monetary rewards and insisted that they are simply happy to do their duty and help out whenever needed. The Social Media posts also expressed hope that others would emulate the good example set by the officers of Cavitex. 92 Sustainability Report 2016 Metro Pacific Investments

G4-10 Engaged and safe workplace

The Toll Roads group employs a combined staff of 1,346 people, most of whom are with TMC (1,120). The ratio of male to female employees is nearly equal. More than half of its employee base belongs to the 30-50 age group. NLEX Corp. employs more employees than that of CIC as the stretch of the expressway it manages and operates is significantly longer.

MNTC Employment by Status

121 Regular

Probationary

3 Contractual 2 Project-based

60 TOTAL: 186

Employment by Gender Employment by Rank Employment by Age Range

72 70 19 53 20

114 43 113

Male Rank and File Over 50

Female Supervisors 30 to 50

Middle Managemement Under 30

Senior Management Toll Roads 93

Engaged and safe workplace

TMC Employment by Status

930

Regular

Probationary

Contractual

23 TOTAL: 1120

167

Employment by Gender Employment by Rank Employment by Age Range 3 36 16 557 77 454

563 1,004 650

Male Rank and File Over 50

Female Supervisors 30 to 50

Middle Managemement Under 30

Senior Management 94 Sustainability Report 2016 Metro Pacific Investments

CIC Employment by Status

Regular

Project-based

TOTAL: 40 32

Employment by Gender Employment by Rank Employment by Age Range 1 16 20 6 7

18 20 24

Male Rank and File Over 50

Female Supervisors 30 to 50

Middle Managemement Under 30

Senior Management

NLEX Corp. and CIC prepare and train all the expressways which can bring road visibility personnel for hazards and risks inherent to down to zero. At such times, alert, knowledgeable operations. Service providers and staff are given and rapid response by toll personnel is an safety orientations and are provided personal important factor to avoid accidents and keep protective equipment (PPE). Safety inspections motorists safe. Training on bomb threat scenarios are made on a regular basis for the proactive are also regularly covered during the drills. prevention of accidents. Should a safety incident occur, accident reports and investigations are Beyond safety, the well-being of the staff is thoroughly conducted to prevent recurrence. likewise valued. Employees are given annual physical exams and CIC and NLEX Corp. extend Additionally, fire and earthquake drills are regular access to a gym within office premises conducted during the course of the year. to promote wellness. At least once a year, Blood Fire drills are held on a bi-annual basis and Letting Programs are held and employees are include an orientation on the proper use of fire encouraged to volunteer. Annual Sportsfests are extinguishers to ensure proper fire response at also held and are usually conducted together all times. Occasionally, bush fires occur along with residents of neighboring communities. Toll Roads 95

G4-SO1 Social Responsibility

MPTC believes infrastructure development leads to social progress, progress that is further supported with responsible corporate citizenship. At the core of its CSR principles is “Doing Well” or the delivery of excellent service, getting fair return so that the company can continue doing excellent service. The other part is “Doing Good” which is the undertaking of programs that support the company’s core business and promote people’s welfare and wellbeing.

NLEX Corp. therefore acts on this belief and does its part as a responsible corporate citizen by working with and engaging host communities and helping make a real difference in their lives.

For one, there is Usapang Driver — a drivers’ education program specific to drivers plying the NLEX. It is an interactive forum where drivers of bus, trucks and jeepneys learn about safe driving practices along the expressway — causes and prevention of accidents, safety features of NLEX, rules and regulations, relevant legislations implemented in NLEX, and other information pertinent to the use of the NLEX.

Usapang Driver is also a venue for constructive dialogue between the public transport sector and the NLEX concessionaire (MNTC) and operator (TMC) where concerns and issues are aired, clarified and addressed. The company’s Customer Satisfaction Task Force also uses Usapang Driver as a medium to directly communicate and address sources of low satisfaction as revealed in the Customer Satisfaction surveys.

Companies who are given Usapang Driver seminars are sourced by MNTC through interaction and courtesy calls with top bus and truck companies. TMC, meanwhile, suggests participants from a list of top traffic violators. Fleet drivers are given the program in a classroom set-up, and the seminar is moderated by TMC representatives. 96 Sustainability Report 2016 Metro Pacific Investments

Another significant project was the NLEXcellence for personal interaction with business leaders in Safety Awards which aimed to give due the transportation industry, the forum is a half- recognition to bus and trucking companies day event that addresses the major forces driving that excel and strictly adhere to road safety trucking industry: emerging technologies, evolving standards consistent with the NLEX principles of consumers, economy and finance and more. customers’ safety and protection at all times. The NLEX Leaders’ Forum aims to provide a The NLEXcellence Safety Awards consist of three dialogue and discussion that will: categories: Vehicle Quality, Driver’s Professionalism, and Company Operational Excellence. • Inform, challenge and inspire on leadership, business excellence, and related government/ Nominations are open to any bus company public policy or trucking firm with at least 20 vehicles, at least 50 percent of its trips coming to and • Explore trends, issues, and ideas shaping from North Philippines, and 30 percent the economy of these trips are taken on the NLEX. • Build relationships, partnerships, and It is a way of recognizing NLEX users who share the develop a sense of belongingness by company’s dedication and commitment to safety. sharing a common experience

Being given this award heralds the awardees as Another safety initiative is the Gusto Ko, Ligtas role models for other companies to emulate Tayo (GKLT) program, a road safety education for their best practices in company operations program designed to increase awareness on and road safety. good road safety practices in host barangays and schools. In 2016, total attendees numbered All activities pertaining to the awards are 1,758, with participants coming from 14 spearheaded by MNTC Marketing -Toll Comm elementary schools and 9 barangays. Section. After nomination, a third-party research agency conducts a site audit at the nominees’ Meanwhile, CIC also has its Transportation garages and offices to verify statements and claims organizations Promoting Advocacies on Road declared in the nomination form. Nominations Safety Guild or Tropang CAVITEX, which is are shortlisted based on the quantitative and a dedicated group of CIC employees fully qualitative criteria, before a final selection is made committed to a safety campaign. Lectures on for each award category. Awardees are then feted safe expressway driving are given to drivers of in a prestigious awards ceremony where their best buses, trucks, PUJs and services. Emergency practices are featured. A post-event campaign preparedness, personal and community then follows to inform the general motorists and safety count among other topics covered. public of the NLEXcellence Safety Awardees. For 2016, MNTC launched two new CSR programs 2016 also saw the birth of the NLEX Leaders’ namely: “Tullahan River NLEX Junior Patrol” and Forum — an interactive meeting of leaders “NLEX-SCTEX Ganda Mo, Hanap Buhay Ko.” and important players within the transport industry. It is an exclusive opportunity for The company began the initiatives for the trucking companies who put value in learning river clean-up in 2010 with its “Tullahan River: and company development to have a productive Cleaning it up, Keeping it Clean” CSR program. interaction with the movers and shakers from The 1.5-kilometer-stretch of the Tullahan both public and private sectors. An opportunity River is important as it spans three barangays: Toll Roads 97

Barangay Talipapa in Quezon City, Barangay Projects include support for the Las Piñas- Ugong in Valenzuela City and Barangay 164 in Parañaque Critical Habitat and Ecotourism Area Caloocan City. To sustain the cleanup program, (LPPCHEA) that is situated along the Las Piñas- the company launched the NLEX Junior Patrol. Parañaque carriageway which CAVITEX traverses. LPPCHEA is the last natural mangrove area south The program aims to educate children on the of Metro Manila. It is home and feeding ground importance of protecting and preserving the for countless migratory bird species from Russia environment, specially the the river. Its goal is to and China. LPPCHEA reached a critical point train children aged 11-12 of the three Tullahan after long being a dump site for garbage and communities to be the watchers of Tullahan River. A solid wastes, which caused oxygen deprivation total of 67 children completed the two-day workshop and placing dependent flora and fauna at risk. and were vested as official NLEX Junior Patrol. CIC initiated Living in an Environment of Aqua Flora Another CSR program is the skills training and and Fauna (LEAF) in support of LPPCHEA. LEAF is a livelihood program launched in October 2016. holistic program established for hazard prevention, The program called “NLEX-SCTEX Ganda Mo, pollution control, and habitat protection. It is Hanap Buhay Ko” is a basic cosmetology training also CIC’s response to the National Greening program in partnership with the Ang-Hortaleza Program. Under LEAF, endemic mangrove species Foundation. This program aims to provide skills are propagated, planted, and grown along the training that will supplement the household embankments of CAVITEX and in surrounding income of residents of NLEX-SCTEX communities. coastal waters. Growth of planted mangroves is recorded and monitored by DENR. Flora are geo- The program was pilot-tested to selected tagged so that volunteer planters/growers can unemployed women in Segment 10 communities do their own monitoring through Google Maps. (Barangay 26, 29 and 63 in Caloocan City) who will be relocated to Pandi, Bulacan to CIC’s Care for the Restoration of Environment provide an alternative livelihood opportunity. (CARE) is the implementing vehicle of its CSR Twenty-five residents have benefited from the activities. At its core is employee volunteerism. program. Success stories were heard during the Activities include, but are not limited to, relief “Kamustahan” session, held after two months of operations for disaster victims (particularly their training. Eighty percent of the participants flood and fire), medical missions to host were able to apply the skills they have learned communities, tree-planting initiatives, coastal and already earn additional income to help out clean-ups with partners, and participation their family. The Kamustahan is also the final in local and international environmental evaluation of Ang Hortaleza if they will grant groups such as LPPCHEA, Alliance for another training session to their partners. Stewardship and Authentic Progress, Save Freedom Island movement, Ocean Diversity Meanwhile, CIC’s CSR programs includes a host International, and Earth Day International. of projects geared towards environmental management. CAVITEX is among those facing the challenges and hazards of environmental calamities such as storm surges, being an expressway running through a coastal area. RAIL

100 Sustainability Report 2016 Metro Pacific Investments

LIGHT RAIL CORPORATION (LRMC)

Light Rail Manila Corporation (LRMC) is a joint • Improve the safety of the riding public. venture company of MPIC’s Metro Pacific Light Rail Corporation (MPLRC), Ayala Corporation’s • Extending the track by 11 kilometers AC Infrastructure Holdings Corporation (AC from Baclaran to Niog, Bacoor, Cavite to Infra), and the Philippine Investment Alliance increase the reach of this particular mode of for Infrastructure’s Macquarie Infrastructure transportation to a greater number of people Holdings (Philippines) PTE Ltd. (MIHPL). MPIC south side of Manila. holds a 55% effective ownership of LRMC as of end December 2016. • Rehabilitating all the stations to improve the overall light rail experience. LRMC was incorporated in 2014 with the business purpose of financing, constructing, operating It will extend the present system from the and maintaining the Light Rail Transit (LRT) Line 1 Baclaran Station to the Niog area in Bacoor, Cavite Extension and Operation and maintainance Cavite. This new route will comprise eight project. LRMC has taken on the operations and stations—Redemptorist, MIA, Asia World, Ninoy maintenance of the Existing System of LRT-1. Aquino, Dr. Santos, Las Piñas, Zapote, and Niog. After winning the project via the lone bid with These additional stations are envisioned to help a bid premium of ₱9.35 billion. This covers the ease the worsening traffic conditions in the original 18 passenger stations from Baclaran to Parañaque-Las Piñas-Cavite corridor. The Cavite Monumento and the North Line Extension (NLE) Extension Works will begin within 2017. The which has passenger stations at Balintawak and extended rail line is expected to help increase Roosevelt. the capacity of LRT-1 from 500,000 to 800,000 passengers daily and benefit more than four On October 2014, LRMC signed the Concession Million residents in the southern part of Metro Agreement with the Department of Transportation Manila and of Cavite. The projected commercial and Communications (DOTC) and the Light Rail development around the rail stations is expected Transit Authority (LRTA) that included a ₱65 to benefit surrounding communities as well. billion LRT-1 Cavite Extension, Operation and Maintenance Project which is part of the 2011- LRMC is in the process of refurbishing existing 2016 Philippine Development Plan to accelerate trains and purchasing new ones for the infrastructure. Under its Concession Agreement, comfort of passengers and to increase capacity. the service obligations of LRMC include: Replacement of the entire track system is being done in strategic phases. • Improving the efficiency, safety and overall riding experience of the Filipino public. The company’s project investment is set at ₱35 billion. Financing is mainly through a 15-year ₱24 • Expanding the capacity of the trains to lessen billion Omnibus Loan and Security Agreement waiting time. (OLSA) with local banks SB Capital Investment Rail 101

Corporation, First Metro Investment Corporation, Station in Parañaque City in September 2015, and RCBC Capital Corporation which will fund monthly ridership has increased from 11.7 Million the LRT-1 Cavite extension project and the in August 2015 to 12.3 Million in December 2016. rehabilitation of the existing LRT-1 system. Passenger capacity of LRT-1 also increased from 13,500 to 17,000 per hour per direction (northbound/ Since assuming operations and maintenance southbound) over the same period, following the of the 20-kilometer existing rail system from increase of light rail vehicles (LRVs) from 77 in Roosevelt Station in Quezon City to Baclaran September 2015 to 100 in December 2016. 102 Sustainability Report 2016 Metro Pacific Investments

G4-EN3, G4-EN5, G4-EN8, G4-EN16, G4-EN23 SUSTAINABILITY HIGHLIGHTS

Total Ridership 2015 2016 141.3 Million 147.7 Million

Average Daily Ridership 409,785 429,000

Water Consumption Train Cycle Time Train Queuing Time 6 mins 118 mins 46,900 m3 4 mins 100 mins

GHG Emissions

25,010 tCO2e

Operating Light Rail Vehicles

77 Biodegradable Non- Waste biodegradable Waste 100

7,311 kg 16,407 kg Total Employees 1,267 Recyclable Waste 1,469 7,935 kg

Hazardous Waste Electrical Consumption (MWh) Electricity Intensity

kWh per 16,254 kg 42105 258 train trip Rail 103

Operational Efficiency

The work towards the goal of raising the LRT- decrease the wear and tear of LRVs and improve 1 to world-class standards began immediately the reliability of the whole system. Quality rails when LMRC took the helm. The Company and optimum speed will result to an increase is committed to deliver a safe, reliable, in the life span of LRT-1 trains. Residents of and world-class rail system at par with the communities near the station will experience better commuter railway hubs in Asia. the added benefit of significant reduction in the vibration and noise levels previously experienced. Initial enhancements to the train line have included the replacement of rails, the LRMC has engaged four of the world’s best in restoration of elevators and escalators, and rail development to share their professional the refurbishment of the 20 existing stations. expertise as the company’s global partners.

As of yearend 2016, the number of running RATP (Régie Autonome des Transports Parisiens, light rail vehicles (LRVs) has increased to on: Autonomous Operator of Parisian Transports) 100, reflecting an additional 23 light rail serves as Technical Advisors for managing/ vehicles (LRVs) rehabilitated and functioning operating the existing LRT-1 Train Operations and since LRMC's assumption of operations and Engineering. RATP is dedicated to the operation maintenance in September of 2015. and maintenance of all modes of urban transport and operates the world’s largest metro, bus, The hard work of LRMC’s engineering team has suburban, heavy-rail and light-rail integrated also given rise to an increased passenger capacity, public transport network in France (Ile-de-France). serving a daily average of 420,000 passengers. LRT-1 is able to deploy up to 30 trains daily. Bouygues Travaux Publics is the Technical Cycle time (time for a train to complete a loop) Advisors with focus on infrastructure construction improved from 118 minutes to 108 minutes, for the Cavite Extension Works project. The effecting a decrease in average passenger company is a world-renowned civil and railway queueing — from 6 minutes down to 4 minutes. construction company, headquartered in France. Bouygues specializes in underground Meanwhile, in the Railway Enhancements Phase 1, works, complex civil engineering projects the replacement of LRT-1’s 32-year-old rails is also and engineering structures, as well as road, underway, with a total of 10,583 meters or 40% public transport and port infrastructures. completed as of year-end. The rail replacement project runs a total of 26 kilometers from Baclaran Alstom is the Technical Advisors for the on rail- to 5th Avenue stations, and is targeted to finish related equipment and signaling systems of by the end of 2017. As to the southbound tracks, the LRT-1 Cavite Extension. Alstom is a world- 23 kilometers have been replaced as of December class rail solutions supplier that develops of 2015. This is in addition to eight kilometers and markets a complete range of systems, replaced prior to LRMC’s assumption of operations. equipment and service for the railway industry.

Once complete, the new tracks are expected Systra, a French structural consulting group, to allow trains to increase their speed from is designing the Cavite Extension Works. the current 40 kph to 60 kph. They will also 104 Sustainability Report 2016 Metro Pacific Investments

LRMC will pursue ISO:9001-2015 (Quality All potential vendors go through an accreditation Management System) and ISO 14001:2015 process that involves an ocular inspection by (Environmental Management Systems) project proponents and the Health, Safety, accreditations in 2017. LRMC’s procurement Environment, and Quality (HSEQ), a financial process helps the company maintain continuous stability study care of LRMC Finance, a thorough operations, safeguard structural integrity of its review of relevant and current permits and facilities and ensure that passengers benefit from licenses, and undertaking regulatory accreditation a reliable, convenient and secure journey. as required. Rail 105

Accredited vendors must meet a host of criteria Contractor HSEQ Management Procedure with which they will be regularly evaluated against: • Initiation • Vendor Selection Quality and Safety, Timeliness, Total Acquisition • Scoping • Tendering Cost, and Customer Service Satisfaction. Regular • Design Review appraisal of Vendor of Goods and Services involve manual evaluations and there is an assessment of every Project Completion (or per progress billing). Violations are recorded and marked on a Vendor’s evaluation form and protocol directs four violation Risk Assessment HSEQ requirements stages—verbal notification, notice of violation, Compliance in Contracts notice of suspension, and banning. to regulatory HSEQ Criteria in requirements prequalification All contractors are required to complete a Safety Orientation conducted by LRMC HSEQ. They should be current and compliant in their Work Permit/Clearances Applications, including a Job Lessons Learned Method Statement Hazard Analysis Submission. Continuous Review Improvement Job Hazard Analysis HSEQ developed the Contractor HSEQ Recognition Orientation Management Procedure to establish a proactive Permit to Work and systematic approach to manage and control risks arising from work performed by contractors in LRMC. Work standards are obligated to meet HSEQ standards. Oversight is by a cross-functional • Project • Execution team composed of LRMC Contractor Sponsors Completion • Monitoring and Audit (e.g. Project Managers), Procurement, HSEQ, • Post Job Evaluation Engineering, and Legal. Major works undertaken by contractors include the main line rail replacement and station and depot improvements. 106 Sustainability Report 2016 Metro Pacific Investments

Service Excellence

Light Rail Transit Line 1 (LRT-1) used to be known ridership, extended operating hours, increased for poorly maintained trains, long queues and customer satisfaction and the achievement of negative customer experience as reflected in ISO certifications for quality management and the negative media coverage and social media environmental management, all unprecedented impressions. But, in less than two years since milestones in the 32-year history of Manila’s oldest assuming management of LRT-1, LRMC was able light rail system. to improve efficiencies and introduce innovations that resulted in increased number of trains and The achievements of the LRMC management trips, reduced passenger waiting time, improved team bodes well for the Philippine Government's safety and cleanliness of the stations, increased program to accelerate infrastructure and Rail 107

contribute to inclusive growth and poverty LRMC likewise introduced innovations and reduction in Metro Manila. The synergy of these improvements in track management. When parties demonstrate that the public and the it assumed operations in September 2015, private sectors can work together to provide the average cycle time was at 118 minutes. By public with safe, e client, reliable and comfortable initially increasing the speed at the LRT-1 north services. extension(Roosevelt, Balintawak and Monumento) and deploying sliders to reduce reversing time in A major program that LRMC has undertaken to Baclaran and Roosevelt, average cycle time was addressed the challenges of an aging railway reduced to 100 minutes. system was the systematic replacements of rails and other rail components to keep the LRT- The improved cycle time and the increase in LRV’s 1functioning at optimum quality and enable trains has allowed LRMC to improve the timetable and peed to be increased from 40kph to 60kph. This increase the number of trips. Average number will also result in increased life span of LRT-1 as the of daily trips has now increased from 498 to rail replacement is expected to minimize wear and 554trips on weekdays and from 443 to 472 trips on tear for the rolling stock and increase the reliability Saturdays. of the whole train system. The project will also benefit communities in close proximity to the The innovation of the new timetable has decreased stations as the new set of tracks will significantly passenger queueing time and headways in reduce the vibration and noise levels along the between trains from 5-6 minutes in 2016 to less vicinity of the line. The project was completed in than 3.5 minutes this year. August 2017, with commissioning timetabled in Q42017 and increase of speed to 60kph by Q1 LRMC has also extended the train service to 2018 accommodate early and late night commuters. First trip is now earlier at 4:30 a.m. from the Following the replacement of the rails, LRMC also previous 5:00 a.m. Five trips were also added to embarked on the P1-billion project to repair the extend the last trip from 9:30 p.m. to 10:15 p.m. structural defects caused by wear and tear on the parapets and the guideways over the last 32 years. According to a customer satisfaction survey commissioned by the Light Rail Transit Authority To increase passenger capacity, LRMC invested (LRTA) in December 2016, customer ratings for in the P1-billion rehabilitation of light rail vehicles LRT-1 are significantly higher than the previous (LRVs) which included the refurbishment of interior year. For overall weighted satisfaction on a scale walls, floors and seats, exterior car body repairs, of 1-7 points, customers’ rating of LRT-1 increased and finding the original equipment manufacturers from 4.86 points to 5.63 points. in Europe for the replacement of obsolete spare parts. From 77 LRVs in September 2015, LRT-1 has 100 LRVs by end of 2016 and the number is expected to increase by end-2017. 108 Sustainability Report 2016 Metro Pacific Investments

International recognition

In 2016, LRMC has been recognized for its • 2016 Asia Pacific Infrastructure Deal of the commitment to accelerate improvement in Year | Project Finance International Awards Manila's railway systems, foremost of which is (United Kingdom) the operation and management of LRT-1 and the • 2016 Asia Pacific Rail | IJ Global Awards construction of the LRT-1 Cavite Extension. While (Singapore) prioritizing this commitment to the Philippine • Transport Deal of the Year | The Asset Asian Government and the LRT-1 customers, it has Awards (Hong Kong) also been acclaimed for its programs to enhance passenger safety as well as environmental • Gold Anvil and Silver Anvil Awards for protection and community engagement: Passenger Safety Education | 52nd Anvil Awards • 2016 Best Project Finance Deal | 10th Alpha • Silver Anvil Award for Corporate Social Southeast Asia Awards (Malaysia) Responsibility | 52nd Anvil Awards Rail 109

Pioneering Achievements

More upgrades and comfortable journeys ISO certification 9001:2015 and 14001:2015 LRMC has increased the number of light rail The ISO audit process required LRMC to document vehicles (LRVs) from 77 in September 2015 to 100 its quality and environmental policies, procedures as of December 2016. Replacement of the LRT- and other documentation required to meet its 1’s 32-year old rails started in August 2016 and quality and environmental objectives, targets and will be completed in September 2017 resulting to programs. The certification body, TUV Rheinland, safer, smoother rides and enable trains to increase then conducted a Pre-Assessment Audit as speed from the current 40kph to 60kph from an initial step followed by Stage 1 and Stage 2 Baclaran to Monumento Stations. Audits which involved going through selected documentation and on a sampling basis, check if More efficient train and traffic management the actual execution of the procedures or work system instructions involved comply with what is written IMPROVED CYCLE TIME: Cycle time is the time it in the documentation being audited. Challenges takes for one train to complete one loop. LRMC we had to overcome included completing the reduced the cycle time from an average of 118 documentation of the mandatory policies, to 100 minutes by increasing the speed from procedures and forms to be covered by the Roosevelt to Monumento. Further, LRMC also certification audit, training the various personnel deployed train sliders to reduce turnback times in performing their work according to these and increase efficiency of traffic management. documents and equally important, rallying the critical mass of employees to confidently prepare • REDUCED QUEUEING TIME: More efficient for the certification process. The whole process deployment of trains has significantly reduced of preparation was led from the very top by no passenger queueing time and headways in less than the President/CEO and the Management between trains from 5-6 minutes to less than Committee, which sent a clear message to all four minutes. employees that ISO certification was an important strategic milestone for LRMC, not just a compliance • MORE TRIPS: In June 2017, LRMC implemented with one of the Concession Agreement obligations. a new timetable which increased the number Consequently, the audit findings included a of trips from the current 512 to 554 trips on recognition on LRMC’s top management team that weekdays and from 443 to 472 on Saturdays. says, “Leadership and commitment to the effective implementation of the management system are Extended revenue hours well demonstrated.” LRMC has opened all 20 passenger stations at 4:00 a.m., with train service starting 4:30 a.m.at Baclaran and Roosevelt Stations. Five trips were also added to accommodate late night commuters; from the previous last trip timetable of 9:30pm, northbound trains now leave Baclaran Terminal at 9:40 p.m., 9:50 p.m. and 10:00 p.m. and southbound trains leaving Roosevelt Terminal at 10:10 p.m. and 10:15 p.m. 110 Sustainability Report 2016 Metro Pacific Investments

Engaged and Safe WorkPLACE

In 2016, LRMC undertook “Project Arangkada” which is a project aimed at attracting and recruiting the right people for the company’s needs. Through “Project Arangkada”, the company successfully hired 105 station tellers, 25 station supervisors, and 30 train drivers in total.

Employment by Gender

Senior Management Middle Management Rank and File

917 7 21 454

25 Male Male Male 45 Female Female Female

Employment by Age Group

Senior Management Middle Management Rank and File

13 8 275 184

Over 50 20 Over 50 Over 50

19 30 to 50 30 to 50 30 to 50

Under 30 Under 30 Under 30 38 913

As part of the hiring process, new hires go through The company is embedding health and aptitude tests and training on their technical safety initiatives and guidelines in all training competence and skills. For instance, driver hires are and development opportunities given to its required to complete a specialized training course employees, espousing smarter choices that lead on technical and practical aspects of their work — to improved health, security and productivity. including safety communications, incident/accident LRMC emphasizes personal accountability and management, fault reporting, basic train driving and encourages employees to undergo lifestyle intervention, and hauling procedures. changes that will have long-term positive impact on their lives. Average Training Hour HSEQ conducted an employee survey that

0.39 0.57 generated responses from 551 employees or around 40% of the total employee population. Rank and File 79% of the respondents gave positive marks for Middle Management LMRC as a workplace that engender self-worth Senior Management among employees and as an organization that

0.61 evoke a sense of belonging. The most positive Rail 111

response came from 84% who felt that their Department. It shares with all LRMC employees supervisors “cared for them as a person”. the accomplishments and ongoing projects to address various issues on employees’ The survey also revealed opportunities for and customers’ health and safety. It also improvement in terms of increasing safety includes articles on the forward direction of conversations and practice along with the company, fostering a safety mindset and availability of PPE and materials needed to work work safety culture and recognition of safety safely. The Management Committee reviewed stewards in LRMC. the results of the survey and several action points were agreed to be taken in response, In terms of training, the company conducted including: providing shuttle services for Shifts 1 several that focused on strengthening the and 3 employees going to and from work during safety culture in the workplace. The Fire Safety early morning and late evening hours, assigning Enforcement agency of the Bureau of Fire employees to stations near their homes, Protection conducted a Fire Safety Practitioners conducting semi-annual safety refreshers for Competency Training attended by 31 employees all employees, and for all HODs to start their representing 6 departments. Participants were meetings with a safety moment. familiarized with RA 9514 or the Revised Fire Code of the Philippines and its implementing As an additional communication tool, the rules and regulations in line with LRMC’s on- company publishes its LRMC for L.I.F.E (Living going thrust to strengthen its fire prevention in an Incident-Free Environment) which is and response capabilities. a monthly newsletter initiative by LRMC’s Health, Safety, Environment and Quality (HSEQ) 112 Sustainability Report 2016 Metro Pacific Investments

G4-SO1 Social RESPONSIBILITY

In September 2016, LRMC has launched a coalition LRMC targeted these communities as they are to revitalize and rehabilitate Manila's longest also the closest to the LRT-1 Depot located along creek, Estero de Tripa de Gallina (ETG). With ETG’s Andrews Avenue in Pasay City. Barangays 188, massive impact on the health, environment, and 189, and 190 have a total population of 11,192, social aspects of residents living along it, it has comprised of 2,020 households. become imperative to take action to restore life to the estero. Through community engagement According to the Social Perception Survey backed by partnerships, research, and education conducted by LRMC, these people generally think drives, Light Rail Manila Corporation (LRMC) that ETG is dirty due to people throwing their was able to execute a campaign called Live for rubbish in its waters. A total of119 of the 139 the Rivers Movement Coalition that moved people surveyed signified that they are willing communities to infuse new life to Metro Manila’s to help clean ETG. However, no consolidated, longest creek. centralized program is yet in place to enable them to do so. Given that they are willing to do their part The Program sought to achieve the following: to improve ETG’s current state, LRMC implemented this program to finally educate and move the 1. Seal a strategic alliance with local and national communities to action. agencies to help LRMC enrich research and improve governance on the ETG system. The program also involved the youth, with LRMC tapping two academic institutions in the area: 2. Determine the level of awareness, the City University of Pasay (CUP) and the Asian perception, and engagement of community Institute of Maritime Studies (AIMS). stakeholders, particularly residents living in Pasay City’s Barangays 188, 189, and 190, on Results the importance of clean esteros to health, environment, and social aspects. 1. Partnership with local and national stakeholders — LRMC formed the Live for 3. Engage the youth in the symposia, river the Rivers Movement Coalition, a strategic cleanup proper and the sustaining activities partnership with local and national agencies supporting the program. tp empower the communities in ensuring the rehabilitation of the ETG.. These partners 4. Secure the commitment of the community and include the DENR, the City Government of government stakeholders to become stewards Pasay, DOST, DILG, DOH, DPWH, MMDA, and of sustainable care for ETG. the affected barangays (Barangays 188, 189, 190) and universities in the ETG vicinity (City The program is directed at residents of Pasay City’s University of Pasay and Asian Institute of Barangay 188, 189, and 190. They were chosen Maritime Studies). as they were living along ETG, in the area also monitored by LRT 1 operator Light Rail Manila 2. Social perception survey and Symposia — Corporation (LRMC). Through the social perception survey conducted by LRMC in the barangays, as well Rail 113

as the symposia held in the communities and universities, LRMC was able to measure the level awareness of the residents on the state of ETG and their willingness to be part of clean up efforts. The research provided the baseline on which the Program, its tools and tactics, were designed.

3. Support and commitment of the partner communities and agencies to make the clean up sustainable — The volunteers who were all involved in the program have signified their commitment to work with LRMC to ensure that initial efforts for the clean up of ETG will be sustainable.

Through the MOA signing with the partner agencies, and the letter of intent submitted by the barangays, the River Guardians have all pledged to be stewards of the estero in their own ways. HOSPITALS

116 Sustainability Report 2016 Metro Pacific Investments

Hospitals

Metro Pacific Hospital Holdings, Inc. (MPHHI) was established to invest and operate a portfolio of Healthcare assets. As of end 2016, MPIC's ownership in MPHHI's common shares was at 85.6%, with the remaining common share owned by GIC. In addition, GIC holds an exchangeable bond issued by MPIC which can be exchanged into a 25.5% stake in MPHHI in the future, subject to certain conditions.

MPIC ventured into the hospital business in 2007 with its investment in premier Makati Medical Center. The group, through MPHHI, has since then poured in about ₱12 billion of capital expenditures into the hospital industry, principally to expand and improve facilities and to purchase the latest medical equipment.

Over the past ten years, it has successfully built a very profitable chain through the acquisition of both underperforming and healthy hospitals, implementation of management efficiencies and the upgrade and expansion of facilities and equipment. MPPHI is now the largest private hospital network in the Philippines with over 2,900 beds from a total of 13 hospitals all over the country.

In addition to its network of hospitals, the Company has also invested in mall-based diagnostic and surgical Center Megaclinic in SM Megamall and formed a joint venture with Sanitas International in June 2016 to establish a nationwide network of primary care clinics. They are targeting to build and/or acquire approximately 30 clinics all over the country by 2021.

New hospital acquisitions in 2016 were Manila Doctors Hospital, Sacred Heart Hospital of Malolos Inc., and Marikina Valley Medical Center. MPHHI will continue investing in hospitals and expanding existing ones to achieve its 5,000- bed target in the next three to five years. Hospitals 117 118 Sustainability Report 2016 Metro Pacific Investments

MPHHI is also finalizing discussions with foreign hospital stands on a 17,250-square metre technical strategic partners to establish a centralized campus, carefully planned and specially designed laboratory which will be equipped to handle the by the architectural firm Anshen and Allen, a requirements of its hospitals in Metro Manila. United States firm recognized for sustainable building practices and outstanding architectural Meanwhile, MPHHI is now studying the possibility design for healthcare and academic markets. of investing in the construction of new Greenfield hospitals, in addition to its original strategy of Makati Medical Center (MMC) investing in existing hospitals, mainly because of the limited number of hospitals available for acquisition. Located at the heart of the country’s primary central business district, MakatiMed has a For the purposes of this Sustainability Report, 565-bed capacity and delivers quality and we shall be sharing information on three of compassionate service through its network of the larger hospitals, namely Asian Hospital highly skilled and board-certified physicians, and Medical Center (here presented as Asian compassionate nurses, competent allied Hospital Inc. or AHI), Makati Medical Center, healthcare professionals, and management staff. and Cardinal Santos Medical Center. This is well-complemented by modern facilities and cutting-edge medical equipment and technology. Asian Hospital Incorporated (AHI) Cardinal Santos Medical Center (CSMC) Asian Hospital Incorporated is a tertiary hospital strategically located in Filinvest City in Alabang, Cardinal Santos Medical Center (CSMC) is a Muntinlupa City—only 10 kilometers from the modern, 245-bed tertiary general hospital located country’s central business district Makati City, in a 3-hectare area within an exclusive residential a mere 20-minute drive from the International enclave of Greenhills West and is one of the and Domestic airports, and less than a kilometer country’s most sought-after medical centers for from the South Luzon Expressway (SLEX). The professional and excellent healthcare service. Hospitals 119

SUSTAINABILITY HIGHLIGHTS

Collectively, the three hospitals

Performed over 40 medical missions and Employ almost outreach activities, 5,000 people with more than 11,000 beneficiaries

AHI MMC CSMC

Reaccredited by the Developed an Awarded Gold in Joint Commission integrated, digital the Asian Hospital International system to handle Management Awards an increase in patient volume

Opened its Asian Better complaints Initiated several Cancer Institute in management through environmental 2015 ACTS (Automated initiatives, particularly Complaints Tracking a remarkable waste System) management program 120 Sustainability Report 2016 Metro Pacific Investments

ASIAN HOSPITAL AND MEDICAL Center Operational Efficiency

AHI's building design has built-in safety features The results of the programs AHI has been that include power and water reserves for 5 implementing are encouraging, and illustrates to 7 days. Standard fire safety features are that the hospital is in the right direction. AHI’s ER complemented by magnetically held doors average length of stay was 3.2 hours in 2016. This that are linked to the Fire Detection and Alarm is 1.2 hours below the 4.4 hour average of the top Systems (FDAS). The doors will automatically close 100 hospital in the US. The hospital’s unplanned to isolate areas and elevators during a fire. The readmission rate was at 0.04 patients per 1000 elevators in the hospital are likewise equipped Emergency Department consults, lower than the with an earthquake detection device that, when benchmark set by the International Journal of triggered, brings the elevator car to the nearest Emergency Medicine in 2016 at less than 1%. floor to ensure patient safety. Asian Hospital is a Meanwhile, AHI nurses have been undertaking Magnitude 7, Intensity 8 earthquake ready facility. great effort in preventing patient falls’. Regular On September 16, 2016, the Asian Hospital was assessments of a patients’ fall risk are done by reaccredited by the Joint Commission International the nursing staff so that preventive actions may (JCI) — a United States-based international be applied. The hospital’s inpatient fall rate was accreditation body which aims to help Healthcare at an average of 0.38 falls per 1000 inpatient days organizations globally deliver the highest quality in 2016, well below the international benchmark of patient care services. It was a testament to the of 2.75 falls per 1000 inpatient days as according Asian Hospital’s relentless vision to provide the to the National Database of Nursing Quality highest safety and quality standards for its patients. Indicators (NDNQI) for the year.

Among its notable initiatives in pursuit of efficiencies, The APAC Business Insider Awards 2016 heralded Asian Hospital partnered with Healthcare Information AHI as the “Best Tertiary Healthcare Facility - and Management Systems Society (HIMSS) in March Philippines” counting the company as among the 2015 for the full digitisation of its electronic medical outstanding and innovative healthcare businesses records. Under the new system, admission, paper, and in the Asia Pacific. billing processes have transitioned to faster processes. Hospitals 121

ASIAN HOSPITAL AND MEDICAL Center 122 Sustainability Report 2016 Metro Pacific Investments

Service Excellence

Asian Hospital’s Patient Experience Survey working with Novostorm on the solution’s full is an adaptation of the Hospital Consumer hospital deployment, as well as taking lead Assessment of Healthcare Providers and Systems on focused improvements on areas pointed (HCAHPS) survey and is an integral part of the to by data. Indeed, Asian Hospital continues hospital’s quality management. Year-end results to live by its Innovation Leadership mission, in 2016 were at 95% for inpatients and 98% for using technology, data analytics and Lean Six outpatients. Both reflected a 23% percentile Sigma approach as essential pillars in taking its increase from previous results in August of 2015. healthcare service delivery to the next level.

AHI has partnered with Novostorm Technologies One good example is the hospital’s care for Cancer Inc., a Philippine-based healthcare technology patients. Cutting-edge, innovative and evidence- solutions provider, to pilot a Patient Flow based treatment follows a Multidisciplinary Monitoring System in our Emergency Team (MDT) approach where joint expertise is Department. The partnership approach uses leveraged to the benefit of the patient. The Asian proven data capture technology to simplify Cancer Institute opened in July 2015, a “one-stop data collection, organize data into useful shop” setup that centralizes cancer prevention dashboards, and use information to generate and management where the most advanced actionable insights and validate improvements. cancer therapy technology and leading oncology As such it embodies a true people-process- professionals are accessible in one facility. technology synergy, first pilot-started in 2015, the first of its kind in the Philippines. The Institute offers the most advanced Radio Therapy services with its state-of-the-art, image- After initial feedback and enhancements, Asian guided, new TomoDirect™ Tomotherapy HDA-H Hospital redeployed Novostorm’s RFID-based Series machine system that treats a full spectrum Patient Flow solution in its Emergency Department of patients without compromise and ensures in June 2016. RFID tags are used to capture critical the highest standards of precision and safety. In patient care steps as they happen, by tapping of addition, it has an advanced High Dose Rate capable RFID tags on strategically located RFID sensors. Brachytherapy system and MX16 Evo CT scans. Consequently, such implementations have led to positive outcomes as evidenced by the In 2016, the Asian Cancer Institute hosted improvements in the Emergency Department’s the Implementation of Optimisation As Low Patient Average Length of Stay (ALOS). This also As Reasonable Achievable (ALARA) Principles translates to a 12% reduction in wait times for and Radiation Protection Program for Medical patients served at the Emergency Department. Applications. This was in partnership with the International Atomic Energy Agency (IAEA), The Joint Commission International (JCI) the Philippine Nuclear Institute (PNRI) and the Accreditors, in its latest hospital assessment in Department of Science and Technology (DOST). September 2016, commended its deployment as The event was the first of its kind to gather a key enabler to its care coordination and access Radiologic Technologist from the Middle East, to care standards. Currently, Asian Hospital is South and South East Asia, and Oceania.

Hospitals 123

Productivity toward Quality of Life

Healthcare in the Philippines is one of the Mang Raul, a bread winner and a linen staff biggest problems in the country. Because in a public hospital, suffered from Coronary of poverty, many Filipinos are not able Artery Disease and needed an Angiogram for to give importance to their health. Their further medical evaluation. He was advised lack of awareness leads to ignorance that to take a leave without pay from work until compromises their health condition and he is cleared from his health condition. This even worst causes death. arrangement added to the family’s burden because they have no other source of income The Asian Hospital and Medical Center to sufficiently support their needs and his (AHMC) being true to its mission of medications, his wife is jobless, and they providing access to its quality Healthcare have 2 kids who go to school. extends its facilities to indigent patients who are in dire need of medical assistance Aling Ligaya, a dedicated housewife with 2 to help restore their health, live their children, suffered from Stage II Breast Cancer lives to the fullest, and more importantly and needed Chemotherapy sessions. She felt continue to provide for their families for a weak each day and couldn’t closely monitor decent living. and take care of their children because of her condition. Her anxiety to raise the much Asian Hospital Charities, Inc. (AHCI), the needed money for her treatment disturbed official charity arm of AHMC gives hope her during moments when she was alone. to sick individuals by facilitating access to AHMC. The moment the patient comes to After the medical assistance is provided, the AHCI for assistance, it strives to consistently MSW monitors their recovery and arranges deliver a fair and careful pre-assessment, for home visits. What happens during the provides family conferences with the visit? The MSW stays for a few hours to talk specialists for clear understanding of what to the patients makes sure that the other the patient will undergo and expect from his family members are also there during the treatment/procedure, treats them with the “kumustahan”. The MSW is more like a same level of care, and the most important relative or close friend visiting them. MSW part of the process is the home visits done confirms her pre-assessment during her visit. by the Medical Social Worker (MSW). Mang Raul is back to work as Linen staff and The home visit is AHCI’s way of measuring even better as he and his family opened a its success after the medical assistance is small Lugawan in front of the house they’re provided. This is unique to AHCI because renting. Aling Ligaya continues to recover the assistance to the patient doesn’t stop from her last chemotherapy session but feels after the treatment, it continues until stronger and better now and slowly helps in they reach their homes and get back to her mother-in-law’s small sari-sari store. their routine. We build relationships and motivate the patients to regain their self- AHMC together with AHCI helped restore worth after their illness. They slowly go their health, regain their self-worth, and back to their productive self, and eventually rebuild a productive and quality of life. live a quality life. 124 Sustainability Report 2016 Metro Pacific Investments

G4-10 Engaged and safe workplace

AHI focuses on staff development and promotion GENDER through empowerment programs, such as: 471 Leadership Learning Series with the CEO, COOLER Talks, Employees’ Recognition Day, physical and spiritual wellness activities, and the like. Male

AHI has regular performance and career Female development reviews with employees. Management support to Employee Training and Development 1,844 at AHI is total; not only are staff member’s knowledge and skills advancement, focused on, character formation is also held in high regard. STATUS

Majority of the training undertaken by employees 170 necessarily relates to health, raising ability levels, and/or basic to advanced specialty courses as Regulatory with the nature of services AHI renders. On top of these, at AHI the pursuit of higher learning and/ Probationary or trainings in management and administration is given equal support and appreciation. 1,145 Hospitals 125

G4-SO1 Social Responsibility

In line with the hospital’s mission to provide assistance to the communities it serves, the AHI’s Corporate Social Responsibility (CSR) unit and its official charity arm, Asian Hospital Charities, Inc. (AHCI), have successfully implemented health awareness and wellness programs to select underprivileged patients and communities in the Southern Tagalog region.

AHCI partnered with the Gender and Development (GAD) Office of the City of Muntinlupa to subsidize the Breast Ultrasound and Digital Mammography of GAD-referred patients. The partnership launched last September 2016. AHCI further extended medical assistance to four (4) qualified charity patients with high intensity cases. Included are two kids with congenital heart disease — one for open heart surgery, and one with chronic kidney disease.

In collaboration with Icanserve and Muntinlupa City Gender and Development Office, Asian Hospital and Medical Center conducted a free breast screening and workshop last March 2016. This was done in partnership with the Barangay Health Workers of Muntinlupa and its constituents at the different health centers within the city. Indigent patients were provided with free breast screening procedures to increase the awareness and early detection of breast cancer, the most prevalent cancer in the Philippines.

A number of health education programs were also cascaded to communities and schools in 2016 focusing on Heart-Healthy Diet and Nutrition, Women’s Health, the Zika and Chikungunya Viruses, Cancer, and even Sports Coaching. Medical equipment were also donated to the Jose Escaler Memorial School. Non-health related activities were also set, such as Christmas related outreach including a sponsored Children’s Christmas Party.

These activities were on top of the Medical Missions conducted at the nearby Parañaque Elementary School and in Brgy. Dela Paz in Laguna where for the latter 1,000 patients were seen to attend the event. 126 Sustainability Report 2016 Metro Pacific Investments

Makati Medical Center

Operational Efficiency

Makati Medical Center is unwaveringly development in cancer care. TomoTherapy utilizes dedicated to upgrading the level of patient the latest form of image-guided radiation therapy safety in the Philippines, with expansion of to correctly identify and locate tumor sites before its services, worthy investment in advanced each radiation session, thus making treatment equipment and facilities, and innovation in more precise. It also reduces many common side processes through the use of technology. effects associated with radiation treatment.

In 2011, MakatiMed received its Joint Commission TomoTherapy was launched in 2012, along International (JCI) accreditation, and only the with the inauguration of MakatiMed’s Cellular 4th hospital in the country to be so accredited. Therapeutics Center, which made MakatiMed one This 2017, MakatiMed will undergo its triennial of only four hospitals that received accreditation survey for the 6th edition of the JCI standards. from the DOH as a hospital-based facility engaging in cell-based therapy in the Philippines. In 2010, MakatiMed launched MakatiMed On- Call, the very first dedicated in-house hospital In 2014, MakatiMed rolled out the CAB (Computer call center in the country. The call center at Bedside), a mobile medication delivery system manages inbound calls, handles appointment to aid nurses in the safe administration of bookings for various outpatient services, medication and in accessing accurate patient makes outbound goodwill calls to patients information without leaving the patient’s bedside. for continuity of care and management. A CAB is a computer on a mobile cart that nurses can easily wheel from one patient room to To better support the increase in the volume of another. This mobile facility contains software hospital patients and transactions, MakatiMed and programs that help doctors and nurses entered into an agreement with leading administer the correct medication, ensuring information technology company Indra in 2011 to efficient, accurate, and quality patient care. develop an integrated system that would replace MakatiMed's 15-year-old Magic (outpatient) Meanwhile, in line with its commitment to patient and Harmony (inpatient) systems. iHIMS, an safety, MakatiMed expanded its partnership with integrated system that handles services including MIMS, a leading provider of drug information and patient registration and administration, inpatient medical education for healthcare professionals, admission, discharge and transfer, appointment with MIMS Integrated, which enables medicine scheduling, outpatient management, and billing information and decision support data to be and cashiering, went live on April 15, 2013. embedded within the hospital’s prescription workflow. This enables doctors, pharmacists, and MakatiMed is also the first hospital in the country nurses to have point-of-care access to medicine to offer TomoTherapy treatment, a revolutionary information and medication safety alerts. Hospitals 127

Makati Medical Center

MIMS Integrated will interface with MakatiMed’s by international standards and MakatiMed’s iHIMS, and will be a vital component of commitment to total patient satisfaction. the hospital’s Electronic Medical Records (EMR) Project. In EMR, which will be rolled The MMC Health Hub offers packages that were out this year in MakatiMed’s inpatient also remodeled to fit the changing health and units, doctors enter medication orders lifestyle needs of patients. All patients begin electronically instead of on paper. with the Health Investment Essentials, a basic package that includes a physical examination, With MIMS Integrated in place, doctors will receive complete blood count, urinalysis, fecalysis, and medication safety alerts such as drug interactions, chest X-ray. Specific health packages or riders drug allergies, drug duplications, overdoses, can be added to the basic package to give a contraindications and more, at the point of data patient a complete and clearer picture of his or entry, allowing the medical professional to make her health profile. Post-menopausal women, for the necessary changes prior to prescription instance, can choose from a roster of Female and greatly reducing medication errors. Rider procedures, while diabetics can include tests from the Diabetes Rider. There are also In 2016, MakatiMed also launched the MMC riders that are specific for males and teenagers, HealthHub, located at the 1st Floors of Towers a total health screening package for those who 1 and 2. These were benchmarked against want to have everything checked, and health international healthcare practices, guided screenings focused on the heart and abdomen. 128 Sustainability Report 2016 Metro Pacific Investments

For those who do not want to create a screening individuals and company providers engaged in plan, the HealthHub offers pre-designed packages. the referral business for health services abroad to help reach Filipinos and foreigners needing The inpatient MMC HealthHub, known as MMC world-class compassionate medical care. HealthHub Premier, located at the 1st Floor of Tower 2, is situated on 505.6 square meters MakatiMed reached another milestone in with 14 new inpatient rooms (Large Private) nursing education with the accreditation of its dedicated to this service. Now, every patient Nursing and Patient Care Services Division as is assigned an Executive Liaison Officer (LO) to a Continuing Professional Development (CPD) personally guide him or her through every step Provider. This was the first nursing education of the patient’s pre-planned medical itinerary. accreditation received by the MakatiMed nursing division. It is also the first accreditation for a Makati Med also has a program called the Strategic hospital-based CPD Nursing training program. Hospital Alliance Program, or SHAP, which it has been implementing since 2010. Managed This was followed by the accreditation of the by the Marketing and Sales Services Division, Department of Pharmacy as a Continuing SHAP is geared toward sharing MakatiMed’s Professional Development (CPD) Provider services to the rest of the country by establishing in Pharmacy Training by the PRC. PRC partnerships with hospitals, clinics and facilities awarded the accreditation on December located in other cities and the provinces across 12, 2016, which is valid until 2019. the Philippines. It has also partnered with several

Service Excellence

Knowing that complaints handling is at the heart The hospital is also the first of its kind in the of service excellence, MakatiMed launched the country to offer TomoTherapy treatment, Automated Complaint Tracking System (ACTS), a considered a revolutionary development in hospital-wide database and monitoring system for cancer care. TomoTherapy utilizes the latest patient complaints in 2015. All reported complaints, form of image-guided radiation therapy correctly investigation data, resolution and correspondences identifying and locating tumor sites before a with the patient or complainant will be logged radiation session. Treatments are therefore more in this system. All, as in every single one, of the precise and common side effects associated complaints can be accessed and monitored all with radiation treatment are lessened. the way up to the level of the President and CEO who ensures that no concern or issue raised by MakatiMed’s Cellular Therapeutics Center was a patient falls through the cracks. Resolution launched the same year as TomoTherapy. This and turn-around time for complaints are kept made MakatiMed one of only four hospital at eight (8) days at most for complex cases. based facilities in the country to receive accreditation by the DOH for cell-based therapy. Hospitals 129

‘MakatiMed has long been the hospital of choice for me’

I am writing to commend the doctors, nurses and staff who saw to my cure and comfort while I was confined at MakatiMed due to a serious urinary problem.

Hands down, I would give my highest praise to your consulting urologist, Dr. Stephen Nazareth. He adds a touch of humor in his explanations and said that his philosophy includes the doctor should also dispel fear from the heart of the patient.

I would like to next commend the nurses who made our stay a warm and pleasant experience: Emily Sy, RN; Ria Nicole Arroyo, RN; and Nathaniel Flloyd Furtuno, RN.

Other nurses whom I remember fondly with their faithful and compassionate services were Ma Erica Victoria ‘Via’ Vizcarra, RN, Janine Antennor-Cruz, RN, and Kathleen Marie Monroy, RN. Special mention to Ronilie Mercado, RN who was thoughtful to have me sign the CF2 as early as 5 am to have my papers processed before the morning rush.

All of these are a tribute to the leadership of the supervising nurse for those night shifts, Lina Hemady, RN. Commendation should also go to Charge Nurse Ma. Ofelia Katrina Agapito, RN.

Non-medical personnel who made my stay a positive rather than a sour experience: Rowena ‘Weng’ Bascos, nursing aide; Clinical Pharmacist Mary Ann Benjamin; Alma Nalaza of Housekeeping; and Ward Clerk Mariel Pajarillo.

May I end this letter by saying that MakatiMed has long been the hospital of choice for me, my family and my in-laws. That my stay from September 25 to 29 has relieved my immediate distress and ended with long-term solutions, and assured of further compassionate and competent care should future medical issues crop up, will be one of my highlights this year. We look forward to continue patronizing your excellent hospital.

Very truly yours,

Nelson T. Dy 130 Sustainability Report 2016 Metro Pacific Investments

G4-10 Engaged and safe workplace

MakatiMed’s workforce was 2,597 strong in 2016, a good 68% of whom are female. It was also a young and energetic staff, with about 63% of the employees were aged 30 years and younger.

Employment by Gender

828

Male

Female

1,769

Employment by Rank 19 79

525 Rank and File

Supervisors

Middle Managemement

Senior Management

1,974

Employment by Age Range

101 861

Over 50

30 to 50

Under 30

1,635 Hospitals 131

As a dynamic organization seeking to be always Type of Program at the forefront of medical knowledge and new technology applications, training and Advanced Cardiac Life Support (ACLS) development for all personnel is key. Therefore, Once to twice 184 specialist training across the ranks is given a month Participants every year and regular employees receive performance and career development reviews.

Non-standard training is provided to employees Paediatric Advanced Life Support (PALS) to increase their competency levels and Once a month 108 response readiness for situations where Participants immediate care is critical. Included in this are certification programs that empower them primarily as healthcare practitioners and Neonatal Resuscitation Simulation (NRS) secondarily as MakatiMed employees. Once a month 45 Participants 132 Sustainability Report 2016 Metro Pacific Investments

G4-SO1 Social Responsibility

MakatiMed employs a three-pronged approach to doctors and discounts on selected medical provide much needed services to indigent patients. procedures as required by the MakatiMed’s This is through the annual conduct of medical residency program. The HSP is managed missions within its community and in reasonably by a dedicated HSP department composed reachable cities and provinces, the Hospital mostly of social workers and nursing aides. Service Program (HSP), and various CSR initiatives under the arm of the hospital’s foundation, HSP served a total of 32,052 patients for Makati Medical Center Foundation (MMCF). consultation in 2016, with 1,011 availing themselves of discounted outpatient procedures, In 2016, it participated in a total of seventeen and 1,286 patients admitted with doctors’ (17) medical missions reaching communities professional fees waived. A major thrust of in the cities of Makati, Muntinlupa, Parañaque, MMC’s Foundation is its aim to help other Manila, Mandaluyong and Marikina, and the (mostly government) hospitals in terms of provinces of Laguna, Cavite, Pampanga and management and application of best practices. Isabela. Health concerns addressed were those The Foundation also lends a hand to help related to General Medical, Ophthalmology, raise funds from sponsors benefitting MMC Obstetrics and Gynecology, Paediatrics, ENT, patients under its charity programs. Minor Surgery, and Dental concerns. In collaboration with the MMC Foundation, the For indigent patients qualified and able to go to Philippine Disaster Resilience Foundation (PDRF) the facility, MMC has a Hospital Service Program launched mobile eHealth Centers in Biliran (HSP) which gives support to patients who cannot province and Tacloban City, Leyte. These are afford the full cost of medical treatment. This areas hit by super typhoon Yolanda (Haiyan) also provides support for the continuing medical in 2013. MMC Foundation’s commitment is the education and training of MakatiMed residents, provision of free telemedicine services—medical interns and other health practitioners. Covered consultations coursed through telecommunication, under HSP is free consultation with MakatiMed video and information technologies. Hospitals 133

The collaboration between MMC Foundation, served 107,978 senior citizens and 10,483 PWDs the PDRF and other project partners align for both inpatient and outpatient services, with the rebuilding phase post Yolanda. translating to almost 13% of total hospital patients. The hospital is fully compliant with A eHealth Center is a re-purposed container van the rules of the DOH and respectful to senior outfitted with medical equipment. Each eHealth citizen and PWD rights to applicable discounts. Center is a “doctor-less” facility manned by trained nurses and LGU personnel. Through video- conferencing technology, patients are able to consult with specialists at the MakatiMed. There is a dedicated studio located at the HSP, where a rotation of doctors and specialists provide daily consult. Even patients living in remote places benefit from this combination of technology and expertise thus receiving quality care without the expense and stress of travelling far.

In the immediate aftermath of Yolanda, a 24-person medical team gave on-the-ground medical aid to approximately 4,000 of Yolanda survivors. Assisted by then AFP Chief of Staff General Emmanuel Bautista and his team, MakatiMed also released and distributed 1,000 emergency family health kits through the MMC Foundation in coordination with the Professional Regulation Commission. Yolanda donations raised by MakatiMed reached close to ₱10 Million.

More recently, Philex Petroleum, through MMC Foundation, donated ₱1 Million worth of brand- new hospital equipment to two military medical facilities in Palawan in August 2016. These were the Camp General Artemio Ricarte Station Hospital of the Philippine Air Force and the Medical Dispensary of the Naval Forces West of the Philippine Navy. Efforts are ongoing to improve their station hospital and sick bays. This is an allied project of MMC Foundation and SM Foundation.

In addition, senior citizens and PWDs (persons with disabilities) comprise a sizeable segment of MakatiMed’s patients. In 2016, MakatiMed 134 Sustainability Report 2016 Metro Pacific Investments

Cardinal Santos Medical Center

Operational Efficiency

We are in the business of saving and improving • Annual gross revenue growth of 10%, NPAT the quality of life. This mission-based growth of 30% vocation is powered by our Caring Cardinal Leaders - credentialed doctors, competent, Leading through our Best-In Class Services professional and highly engaged employees and dependable partners committed to deliver At Cardinal Santos Medical Center, we put the the highest quality of care to our patients, safety and convenience of our people first. We partners and the communities we serve. exist to provide the best service for our patients and customers. We care for our patients the way Delivering Superior Health Outcomes we would take care of our own family members. Strides to continue the path towards innovating for • An average of 97.38% of our inpatients are and with our customers are evident in CSMC’s best discharged due to improved health outcome ading through our Best-In Class • Low mortality rate of 2.28% vs 3% limit • First and Most Trusted GAMMA Knife Center • Controlled infection rate of 0.52%- better in the Philippines than 2% limit Known for its success and state of the art technology in the fields of Neurosurgery, Improving Capacity to Serve More Cardiology, Oncology, Rehabilitation Medicine and Minimally Invasive Surgery, CSMC is also • More patients served with an average increase the only hospital in the country to offer a of 8% in the last 3 years (2014-2016) and an Gamma Knife Center which caters to “surgery average inpatient bed utilization rate of 80% without incision” procedure for treating brain tumors and vascular malformations, heralded • Increasing bed capacity by 23% (46 new by experts for its extreme accuracy, efficiency, rooms) and the construction of a 5-level and outstanding therapeutic response. steel parking facility to accommodate an additional 347 slots for our customers • Pioneering Deep Brain Stimulation System and Motion Robotic Solutions • 38,929 indigent patients served from 2012 We take pride for being the hospital in to 2015 the country which pioneered Deep Brain Stimulation (DBS) for the treatment of • Adopted and partnered with 4 San Juan Parkinson’s disease, essential tremor, and barangays, 4 parishes, 3 NGOs and 2 schools Dystonia through the Movement Disorder • Progressive and comprehensive employee Surgery Center. We also take pride in being the remuneration package improving by first and only hospital today to offer in motion 8% annually robotic solutions for rehabilitation therapy. Hospitals 135

Cardinal Santos Medical Center

• Contributing to the Profession through the compliance, increase recyclable collection Philippine Center for Advanced Surgery Minimally and decrease hazardous waste collection. Invasive Surgery Training Center (PCAS-MIS) This is one of Asia’s Minimally Invasive Surgery An awareness campaign, “Waste Management (MIS) training facilities and the first of its kind in is Everyone’s Responsibility” was implemented the Philippines. It is designed to grant medical and the topic of Proper Waste Management experts, here and abroad, access to modern was officially incorporated in the New surgical facilities and technologically enabled Employee Orientation Program. learning sessions facilitated by internationally acclaimed medical professionals in the field Connected to the recycling effort is the project of advanced surgery. This facility of CSMC will “Vegetables for a Cause” where vegetables provide educational opportunities available such as pechay, saluyot and okra are grown in for Filipino Surgeons so that more and more empty alcohol dispensers and sold to hospital patients will gain access to the advancement employees. Proceeds are donated to the CMCFI. of Minimally Invasive Surgery (MIS), a service that improved the average health outcome. Like a man on a mission, the best for Cardinal Santos Medical Center and its army of Caring Green Initiatives Cardinal Leaders is truly yet to come.

The hospital converted to LED lighting (from CFL) • Investors in People Silver helping reduce emissions by 0.85 metric tons annually. There are also plans to install variable • Finalist: Excellence in Social frequency drivers for all of its motor driven Responsibility (2016 IIP Awards, UK) equipment. • Gold Award: 2016 Asian Hospital Management CSMC organized a Waste Management Committee, Awards for Integrated Media Engagement coming from different departments, to ensure Program (IMEP), Marketing, PR, Online Presence organizational-wide reach of programs. The Category Committee has identified three targets, namely: • People Management Association of the to increase waste segregation awareness and Philippines’ Employer of the Year for 2016 136 Sustainability Report 2016 Metro Pacific Investments

Service Excellence

Everyone in CSMC aims to be their best every discharge can now be processed because of the day. The services we provide ensure integrity, empowerment and authority given to nurses teamwork, excellence, malasakit and servant and frontliners to complete paper requirements leadership. Being a Caring Cardinal Leader is from within 30 minutes to 3 hours. In 2016, integral in the makeup of every Cardinal doctor 50% of patients discharge are now spread and employee; caring service is at the core outside the peak hours (10am to 2pm). of the hospital and is fueled by the passion of giving excellent customer care always. Value-Added Services Driving Continuity of Care

Innovating for and with our Customers Together with the patients, we actively involve family members in the overall care plan so that the Innovating for our customers is institutionalized continuity of the treatment and the service through our Discharge Anytime Program where is assured when they are back in their an inpatient can be discharged anytime of the day own homes. It is this wanting to serve and as soon as his doctor gives the clearance. A cross- provide care even outside the halls of our functional team of Admitting, Billing, Nursing and hospital which led us to innovate through Medical teams had to collaborate and challenge our Cardinal on Wheels (COW) service. existing practices to put this in place. Because of their efforts, this program now gives convenience The COW is a mobile diagnostic and after-care and cost efficiency to inpatients and allows the service in the convenience of our patients’ hospital to free up rooms and reduce waiting homes. This service is also for our geriatric time for admissions, transfers, and discharges. and senior citizen patients who may not be as mobile to go through the rigours of traffic just With the Discharge Anytime Program, to reach our hospital. Instead, we bring the discharge procedures and resources are caring service of Cardinal Santos Medical Center aligned towards achieving the desired patient to them through our Cardinal on Wheels. experience. With this innovation, a patient’s Hospitals 137

Caring Cardinal Leaders

At Cardinal Santos Medical Center (CSMC), the Dr. Porquez put together a team of doctors healthcare staff acts as multidisciplinary team, including the Neurosurgeon Team of Doctors constantly and consistently communicating Eduardo Mercado, Michael Louis Gimenez and with each other to address patient needs. Gilbert Rañoa, the team of Ophthalmologists Dr. Jo Anne Hernandez and Dr. Mark Anthony An example of how this multidisciplinary team Imperial and Anesthesiologist Dr. Editha approach works is a very interesting case of a Fernandez. Michael was monitored daily by Michael (not his real name) who had a freak this team of doctors and was provided with accident in the gym. Michael was lying down good patient care by all nurses. on a bench press area when his fitness trainer accidentally knocked over a 105-lb barbell “My surgery was set within a week of the that was resting above his head. The barbell accident. The day after the surgery, I woke up fell on his face. with 20/20 vision on both eyes, my brain was cleared from danger and damage and my face He reported hearing a cracking sound and felt was successfully reconstructed!” himself on the verge of blacking-out. “Blood was flowing from my head like a fountain “Everyone’s expert care and comforting way and I noticed only one eye was functioning of dealing with the patient made my road to normally,” Michael said. Through all the recovery a comfortable and reassuring one.” panic of the people in the gym, he specifically instructed them to bring him to Cardinal Less than two months after, Michael was Santos Medical Center in San Juan. already travelling to Korea to attend the Korean International Film Festival. “I had no Minutes after arriving at the Emergency problems with the high altitude during my Room, his family doctor Dr. Perfecto Palafox plane trip and I felt strong and healthy as if I arrived. After seeing him, Dr. Palafox never had a life threatening accident merely immediately contacted ENT specialist Dr. John two months earlier.” Michael Porquez, who did the proper first aid interventions. True to its leadership brand of “Caring Cardinal Leaders”, CSMC ensures availability It was only the first step for Michael’s healing. of resources — competent professionals, “I thought I merely broke my nose from state-of-the-art medical equipment, and high- the impact. It was only when Dr. Porquez end facilities — and creates an environment explained my situation that I realized the that promotes holistic healing of its patients. gravity of the damage. The impact left a crack on my forehead, exposing my brain and the entire mid area of my face caved in. My left eye was also displaced from the socket.” 138 Sustainability Report 2016 Metro Pacific Investments

G4-10 Engaged and Safe Workplace

Conquering Challenges through Our Values in attendance to show that there is no exemption Action in our WHL reduction program.

In 2015, we had a problem with tardiness and After 12 months of implementation we achieved absenteeism increasing to 18% vs 2014, costing a 24% reduction in WHL for 2016 vs 2015, a feat the hospital and the employees monetary losses higher than the original target of 10% reduction. equivalent to ₱715,000 increase from the previous This is further translated to 17% decrease in losses year. Staff morale was affected especially when vs 2015 or a savings of ₱793,000. those who came in early found themselves at a disadvantage having to cover for those who were In 2016, CSMC’s workforce was 1,053 strong, tardy or absent. Service was affected and posed majority of whom are female at around 64% of several risks to our patients when nurses must the population. This ratio is maintained even at extend their shift. Personal time with the family leadership positions where women hold about 61% was sacrificed when our nurses on time-off were of the positions in Middle and Senior Management. recalled and were asked to report for duty because another staff was absent. Employment by Gender 381 We decided to bring to life our leadership brand and show how we can be servant leaders - modelling the way across all levels most especially Male at the top. Team Clockwork, a cross-functional Female team was formed, to come up with an integrated program to address Work Hour Losses (WHL). They 672 talked to leaders and employees about the root causes of the problem and came up with several solutions to be driven across the organization. Two Employment by Rank major changes were made: 10 31 67 Rank and File • A Team Rewards Program - Reduction of WHL is a key performance indicator (KPI) for every Supervisors department’s Quarterly Performance Reward. 945 Middle The amount of reward the team gets is based Managemement on how well they performed against their KPIs Senior Management which included WHL reduction. Leaders had to coach daily and rally their teams to keep to the goals. They had to have difficult conversations Employment by Age Range and encourage employees to be more mindful of team outputs. 67 Over 50 • Set the Tone at the Top — every leader took 30 to 50 responsibility for the change of culture in their division by modeling the right behavior and Under 30 555 431 engaging their team to commit and live our values of integrity and teamwork. Executives, managers and supervisors themselves monitored their own performance and Hospitals 139

Our hospital will not run without our people. to learn at their own pace and time, lunch and The employees who work 24/7 to ensure that learn sessions and one-point lesson programs to operations are smoothly flowing and that patient help build a culture of learning something new care and safety is foremost is the bloodline that every day. keeps the heart of the hospital beating. That is why when we approach the company’s goals, objectives Building a Culture of Safety Based on Mutual Trust and strategies, we ensure that our people are and Genuine Concern for People our number one strength. Investing with and for our people have proven to be a fulfilling venture At Cardinal Santos, people and physicians and a win-win proposition for our employees, our are developed holistically. We provide them partners and our organization. with continuous learning and development opportunities that would encourage career and Innovating for Our People personal growth. We partner with our in house chaplain to enrich our people’s spiritual growth In 2012, we have implemented an alternative work through different retreats, recollections and chapel scheme for our nurses in the General Nursing activities. Our CSR programs are driven by our Wards consistent with the 40-hour workweek volunteer group of employees and doctors who requirement which provided our patients lead and implement activities that reach out to the with better continuity of care through lesser communities around us. endorsements, and provided our nurses with flexibility of time to pursue their own interests Internally and externally, we conduct and engage and passions, spend more time with their loved in a lot of benchmarking activities. This allows ones and save on their meal and transportation us to always be mindful of current technologies, expenses. On its fourth year, the same practices being used and done in other arrangement is being piloted in other areas of institutions, improve our systems and practices our organization in response to the current traffic by learning from others. All of these things are congestion in the Metro and the developing state being done in order to give the greatest value and of our public transportation system. service to our customers.

Investor in People Since 2013, we have graduated an average of 46 doctors in our post graduate internship training Growing our organization well into the future program. Our Out Patient Department trains our will only be viable and sustainable if we continue residents as they oversee the OPD operations. to grow and invest in our people. We have Every year, we strive to implement at least two (2) systematized and institutionalized a curriculum new health service initiatives to be able to offer type of learning and development program a wider range of services. This practice helps for our employees, especially as they build their them hone their skills and gets them exposed to technical expertise in our organization. We have a variety of medical cases that would enrich their introduced fresh learning methodologies study and knowledge of their field. such as Ed Talks (or Educational Talks) where anyone can take the center stage to hone his/her Transparency, respect for people, professional platform skills and confidence in public speaking humility and open communication even when we while sharing their expertise with the rest of the disagree are essential to how relationships are community, e-learning to allow our employees built and enhanced in our hospital. 140 Sustainability Report 2016 Metro Pacific Investments

G4-SO1 Social Responsibility

Sustainable Partnership with the Community Cardinal Santos Medical Center (CSMC) plays a major part in the advancement of CSMC’s Medical Training Program is one of its this national mission for the benefit of the bests, it goes beyond shaping excellent medical communities we serve. Through the Cardinal experts as it supports the organization’s Medical Charities Foundation Inc (CMCFI), the undertaking to serve the underprivileged CSR arm of Cardinal Santos Medical Center, through the Cardinal Medical Charities we implement an organized, progressive, Foundation Inc. (CMCFI). and sustainable Social Responsibility (SR) program that leverages on our core services, CMCFI is a portal of opportunity for benefactors geared towards better health outcomes, and experts to extend their generosity to the responsive health services and programs. indigent communities primarily of San Juan City and afford them access to the expertise and We collaborated with the Local Government of specialized care that CSMC can deliver. CSMC’s San Juan, the City Health Office and the Division partnership with CMCFI is a potent source of of City Schools to identify areas where relevant composite medical cases for medical trainees and urgent interventions are needed. Through and an avenue in providing the destitute comprehensive community-based researches, we communities with quality Healthcare at no cost. discovered that poverty and low health literacy Thus, making medical learning curriculum and are strong needs for many areas in the local experience meaningful, rich and fulfilling for community. Our direction in SR is to improve the aspiring medical doctors, for CSMC as an the low level of health literacy, grant easy and organization and the communities that we serve. affordable access to medical services, and improve health conditions of underserved communities. For many Filipinos, it can be challenging to spend thousands to Millions of pesos to pay for either Our approach involves our people to take an a dialysis or a heart surgery. As a developing active part in our SR programs. They serve as nation, the Philippines is on the journey of subject matter experts and facilitators of health- improving its healthcare system to make it more learning programs for communities. We have affordable for the underprivileged population. the San Lorenzo Ruiz Ward and a dedicated-Out Hospitals 141

Patient Department who prioritizes our charity Through the program’s integrated approach patients. Our people donate a percent of their utilizing community lecture, Focused Group salaries to support the feeding program for Discussions and referral system, health malnourished children which served 550 children understanding in the community significantly from 2013-2016 active community engagement. improved. This is evidenced by the locals’ active participation in community health lectures and Health Advocacy and Literacy an increase in numbers of consultations at the Barangay Health Center, including patient referral As a responsible health institution with highly to our Out-Patient Department that resulted to credentialed medical professional and staff actual medical management and treatment. equipped with modern medical facilities, we took advantage of our expertise and reached Doing Well and Doing Good out to vulnerable members of the community through the Health Advocacy and Literacy (HEAL) Exceptional to Cardinal Santos Medical Center is Program. The HEAL Program is the proactive the inclusion of Corporate Social Responsibility response of Cardinal Santos Medical Center component in our performance scorecard. We (CSMC), to the worsening health situation among recognize and continue to affirm that the very underserved communities. cognizant that foundation by which our hospital was built is to limited health literacy has negative implications serve the unserved, the underserved and the for health outcomes, Healthcare quality and marginalized in our society. Year on year, we Healthcare costs. The HEAL Program is our increase our target of servicing indigent patients. integrated community health education program. The program is designed to equip residents The hospital’s balance scorecard is focused of Brgy. Corazon De Jesus (CDJ) in San Juan City on programs for patient safety, people, with correct and relevant health information to customer and social responsibility believing positively influence their health practices and that financial objectives will follow when choices towards better health outcomes. the core areas of service are strong. 142 Sustainability Report 2016 Metro Pacific Investments

GRI Content Index

General Standard Page Number/ Description Disclosures Remarks STRATEGY AND ANALYSIS G4-1 Statement from the most senior decision-maker of the organization 4 18, 19, 26 (more information on risk G4-2 Key impacts, risks and opportunities management section in MPIC's 2016 Annual Report) ORGANIZATIONAL PROFILE G4-3 Name of the organization 2 G4-4 Primary brands, products, and services 6 G4-5 Location of organization's headquarters 3 Number of countries where the organization operates, G4-6 and names of countries where either major operations or that are 18 specifically relevant to the sustainability issues covered in the report G4-7 Nature of ownership and legal form 6 Markets served (including geographic breakdown, sectors served, and G4-8 8 types of customers/beneficiaries) G4-9 Scale of the reporting organization 22, 30 30, 45, 59, 76, 92, G4-10 Size and composition of workforce 124, 130,136 G4-11 Percentage of employees covered by collective bargaining agreements 76 Not significant as the group does G4-12 Describe Organization's supply chain not manufacture products None for the G4-13 Significant organizational changes during the reporting period reporting year G4-14 How precautionary approach is addressed by the organization 26

For MPIC’s first Sustainability Report (SR) covering the year ended December 31, 2016, the Company did not obtain external assurance. For its subsequent SRs, the Company intends to procure appropriate external assurance services.

143

General Standard Page Number/ Description Disclosures Remarks Externally developed economic, environmental, and social charters, G4-15 principles, or other initiatives to which the organization subscribes or N/A endorses N/A (not significant for head office / holding company operations); MPIC’s operating companies Memberships in associations (such as industry associations) and/ have memberships in their respective G4-16 or national/international advocacy organizations in which the industries’ organization is represented associations (please refer to MPIC’s operating companies’ annual reports and websites) IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES Only 10 significant MPIC investees are covered in this report as discussed on page 3. Refer to Notes List all entities covered in consolidated financial statements and not 11 and 42 of MPIC's G4-17 covered in the report 2016 Audited Con- solidated Financial Statements for the full list of associates and consolidated investees. G4-18 Process for defining report content and aspect boundaries 20 G4-19 List of material aspects identified 13, 20-21 G4-20 Aspect boundary within the organization 13 G4-21 Aspect boundary outside the organization 14 Any restatements of information provided in previous reports, and G4-22 N/A reason for such restatements N/A (this is MPIC's Significant changes in scope and aspect boundaries from G4-23 first sustainability previous reports report)

144 Sustainability Report 2016 Metro Pacific Investments

General Standard Page Number/ Description Disclosures Remarks STAKEHOLDER ENGAGEMENT G4-24 List of stakeholder groups engaged by the organization 18 Basis of identification and selection of stakeholders with whom G4-25 14 to engage G4-26 Organization's approach to stakeholder engagement 18 Key topics and concerns raised through stakeholder engagement and G4-27 18 how organization responded to those key topics and concerns REPORT PROFILE G4-28 Reporting period for information provided 3 This is the first G4-29 Date of most recent previous report sustainability report of MPIC G4-30 Reporting cycle Annual G4-31 Contact point for questions regarding report or its content 3 Description of the report's compliance with GRI “core” G4-32 3 reporting option N/A (please refer on G4-33 Independent assurance statement the footnote below) GOVERNANCE Governance structure of organization, including committees of the G4-34 28 highest governance body ETHICS AND INTEGRITY G4-56 Organization's values, principles, codes of conduct and codes of ethics 2 SPECIFIC STANDARD DISCLOSURES ECONOMIC 22 (more information in MPIC's 2016 G4-EC1 Direct economic value generated and distributed Annual Report and MPIC's 2016 Audited Financial Statements)

145

General Standard Page Number/ Description Disclosures Remarks 16, 17, 26 (more information on risk G4-EC2 Financial implication and other risks due to climate change management section in MPIC's 2016 Annual Report) G4-EC5 Coverage of the organization's defined benefit plan obligations 30 ENVIRONMENTAL G4-EN3 Energy consumption within the organization 32, 39,102 G4-EN5 Energy Intensity 39, 102 G4-EN8 Total water withdrawal by source 32, 71, 102 G4-EN15 Direct GHG emissions by weight (Scope 1) 54 G4-EN16 Indirect GHG emissions by weight (Scope 2) 32, 54, 102 G4-EN23 Total weight of waste by type and disposal method 41, 102 Monetary value of significant fines for non-compliance with G4-EN29 None environmental laws and regulations SOCIAL G4-LA2 Benefits provided to full-time employees 30 Percentage of total workforce represented in health and safety G4-LA5 59 committee G4-LA9 Average hours of training per year per employee by employee category 76 Composition of governance bodies and breakdown of employees G4-LA12 according to gender, age group, minority group, and other indicators 30 of diversity Percentage of operations with implemented local community 32, 46, 62, 78, 95, G4-SO1 engagement, impact assessment, and development programs 112, 125, 132, 140 Monetary value of significant fines for non-compliance with laws G4-SO8 None and regulations Number of non-compliance issues with voluntary codes governing G4-PR4 None product / service information G4-PR5 Results of surveys measuring customer satisfaction 42, 74, 88 G4-PR7 Incidents of non-compliances to marketing laws and codes None