2019 SUSTAINABILITY REPORT 2019 Sustainability Report

About the report

Reporting Framework: GRI Standards Approach to GRI: In accordance ‘Core’ Reporting Scope: Parent Bank and subsidiary CitySavings Bank (102-45) Reporting Period: January to December 31, 2019 (102-50) Reporting Cycle: Annual (102-52) “Innovating Together,” the 2019 Previous Report: UnionBank’s 2018 Sustainability Report, “Ahead of the Curve,” Sustainability Report of Union Bank of the published in May 2019 (102-51) (UnionBank) (102-1) discusses how we continue to co-create solutions This report has been prepared in accordance with the GRI Standards: Core option. (102-54) and achieve excellence in terms of our Additionally, it follows the Sustainability Reporting Guidelines of the Securities and Exchange economic, environmental, social, and Commission (SEC). This report can also be downloaded at www.unionbankph.com/sustainability. governance (EESG) performance.

Sustainability reporting at UnionBank allows us to look back and assess our About the cover progress in reconfiguring the digital banking experience to be more responsive Customers, among them the savvy digital natives, inspire us to be change-makers in the era of Banking 4.0—when “one to our diverse customers’ changing needs. Feedback can bank everywhere, but never at a bank.” Guided by years of experience, openness to novel ideas, and compulsion We welcome your feedback on this report. Please contact: More than ever, to innovate, we at UnionBank will keep designing holistic UnionBank is committed and inclusive solutions that work for you. We will meet you Angelica Marie S. Justo (102-53) where you are, we will collaborate with you to enhance the CSR and Sustainability Manager to pursuing innovations banking experience and upgrade our latest technology, Human Resources Group connecting you via our digital platforms at any time. UnionBank Plaza, Meralco Ave., corner Onyx and Sapphire Roads, and ideas that build the , City 1605 (102-3) future, today. A Better World is around the corner when we start Email: [email protected] innovating together.

2 2019 Sustainability Report

2 About the Report 22 People Tech: Building the Skills of the Future Today 41 Purpose: Tech Up Pilipinas 4 About UnionBank 23 Blueprint for Success: Agile Operating Model 43 Direct Economic Value Generated and Distributed

5 UnionBank Network 25 FEATURE: Enabling capacities through UB Xcellerator 44 Banking Innovations with Social Benefits 6 UnionBank Membership in Industry Groups and Associations 26 From Competencies to Capabilities 45 Customer Experience

7 The UnionBank DNA 27 Employee Experience: 1UHub 46 FEATURE: Meet Eve: The ARK’s new robot ambassador 8 Products and Services 28 Building a Retiree’s Nest 46 Customer Service 9 Scope and Materiality of the Report 28 Safety and Health at Work 46 Information Security and Cyber Security 11 Materiality Assessment 29 Learning in the Digital Age 47 Customer Privacy

12 Our Management Approach FEATURE: UnionBank University E-Learning 14 Joint Message of the Chairman and the President &CEO 29 Disaster Risk Reduction 48 Corporate Governance 18 Sustainability Policy and Framework 30 Employee Engagement 58 GRI Index 19 Our Sustainability Framework FEATURE: #OwnYourWellness 51 Annex Sustainable Development Goals 31 Employee Volunteerism Framework for Sustainable Banking Network and Alliance 32 GBC Milestones: A Look Back at 5 Years for Financial Inclusion 35 CitySavings Advocacies 20 Sustainability At A Glance: Our 2019 Scorecard

37 Planet: Making the Choices that Matter

39 FEATURE: Green Infrastructure: Lead through LEED 39 Materials and Resources Management 40 Managing Impacts to the Environment

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About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO About UnionBank

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator UnionBank is a publicly listed universal bank in the Philippines. The Bank caters to a wide range of From Competencies to Capabilities clients, including retail and corporate customers, small and medium enterprises (SMEs), and government Employee Experience: 1UHub institutions. We are committed to empowering the different sectors of the country to encourage inclusive Building a Retiree’s Nest Safety and Health at Work development and positive change. (102-6) Learning in the Digital Age Disaster Risk Reduction Ownership & Legal Form (102-5) Employee Engagement As of 2019, UnionBank’s major shareholders are: Employee Volunteerism GBC Milestones: A Look Back at 5 Years CitySavings Advocacies Aboitiz Equity Ventures, Inc.: 49.34% The Insular Life Assurance Co., Ltd.: 16.32% Planet: Making the Choices that Matter Materials and Resources Management Social Security System: 6.32% Managing Impacts to the Environment PCD Nominee Corporation: 16.88%* Others: 11.14% Purpose: Tech Up Pilipinas *Social Security System (SSS) holds 3.62% of the company’s outstanding capital shares under the PCD Nominee Corporation Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Customer Experience Over the years, UnionBank has created a strong presence in key customer segments and in emerging Customer Service cities, including rural areas through our subsidiaries and affiliates. UnionBank owns 99.79% of Information Security and Cyber Security Customer Privacy CitySavings Bank, Inc. (CitySavings), a thrift bank, and 51% of PETNET Inc. (also known as PERA HUB), the largest Western Union agent network in the country. For more information on our key subsidiaries Corporate Governance and affiliates, please view our 2019 Annual Report. GRI INDEX ANNEX

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About the Report UnionBank Network (as of December 2019) About UnionBank (102-4, 102-7, 102-8)

Scope and Materiality of the Report

Joint Message of the Chairman METRO MANILA including: and the President & CEO Ortigas Central Business District Central Business District Bonifacio Global City Sustainability Policy and Framework LUZON Pampanga Sustainability At A Glance: Zambales 358 UnionBank branches Our 2019 Scorecard Tarlac 137 CitySavings branches Pangasinan Baguio City, CAR 22 LEED-certified Bulacan People Tech: Nueva Ecija Building the Skills of the Future Today Cagayan Ilocos Norte Blueprint for Success: Agile Operating Model Ilocos Sur Enabling Capacities Through UB Xcellerator Isabela La Union From Competencies to Capabilities Albay Employee Experience: 1UHub Camarines Sur 470 UnionBank ATMs* Quezon Building a Retiree’s Nest Cavite plus access to almost 13,000 ATMs 67 CitySavings ATMs* (via Bancnet) Safety and Health at Work Laguna Batangas Learning in the Digital Age Tagaytay City Palawan Disaster Risk Reduction *available 24/7, nationwide Employee Engagement VISAYAS Cebu Employee Volunteerism Iloilo GBC Milestones: A Look Back at 5 Years Bacolod Leyte CitySavings Advocacies Bohol Dumaguete City, Negros Oriental 47 The ARK branches Over 3,000 remittance Planet: Making the Choices that Matter MINDANAO (1 ARK for business, 2 self-service kiosks) centers (under PETNET Inc.) Materials and Resources Management Davao Zambonga del Sur Managing Impacts to the Environment Iligan City Cagayan de Oro Butuan, Caraga Purpose: Tech Up Pilipinas General Santos City, Soccsksargen Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Powering this vast network is a total workforce Customer Experience of 3,525 employees from UnionBank and 1,649 Customer Service from CitySavings Bank. Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

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About the Report UnionBank Membership in Industry Groups and Associations (102-13) About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Core Business • Association Cambiste Internationale Philippines Sustainability Policy and Framework • Association of Certified Fraud Examiners Philippines

• Association of Certified Public Accountants in Commerce and Industry Sustainability At A Glance: Our 2019 Scorecard • Bankers Association of the Philippines • Bankers Institute of the Philippines People Tech: • Credit Card Association of the Philippines Building the Skills of the Future Today Blueprint for Success: Agile Operating Model • Credit Management Association of the Philippines Enabling Capacities Through UB Xcellerator • Fund Managers Association of the Philippines From Competencies to Capabilities • Investment House Association of the Philippines Employee Experience: 1UHub • Money Market Association of the Philippines Building a Retiree’s Nest Safety and Health at Work • National Association of Securities Broker Salesmen, Inc. Learning in the Digital Age • Philippine Association of Stock Transfer and Registry Agencies Disaster Risk Reduction • Philippine Trade Foundation Employee Engagement • Trust Officers Association of the Philippines Employee Volunteerism GBC Milestones: A Look Back at 5 Years CitySavings Advocacies Shared Services • Management Association of the Philippines Advocacy • Association of Bank Compliance Officers • People Management Association of the Philippines • Junior Achievement of the Philippines, Inc. Planet: Making the Choices that Matter Materials and Resources Management • Association of Executive Managers in the Philippines • Philippine Association of Management Accountants • League of Corporate Foundations Managing Impacts to the Environment • Bank Marketing Association Philippines • Philippine Association of National Advertisers • Rotary Club of Manila • Bank Security Management Association • Philippine Institute of Certified Public Accountants • U.S. Green Building Council Purpose: Tech Up Pilipinas • Banker’s Council for People Managers • Tax Management Association of the Philippines • Philippine Business for Social Progress Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits • Clearing Officers Club Customer Experience • Employers Confederation of the Philippines Business and Industry External Initiatives (102-12) Customer Service • Financial Executives Institute of the Philippines • American Chamber of Commerce of the Philippines UnionBank supports the following external initiatives: Information Security and Cyber Security Customer Privacy • Good Governance Advocates and Practitioners of the Philippines • Local business chambers •United Nations Sustainable Development Goal (UN SDGs) • Institute of Entrepreneurial Management • Makati Business Club •Leadership in Energy and Environmental Design (LEED) Corporate Governance • Institute of Internal Auditors Philippines GRI INDEX ANNEX

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About the Report The UnionBank DNA About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman Purpose To co-create innovations for a better world. and the President & CEO

Sustainability Policy and Framework As we co-create the future, we remain rooted to our three core values:

Sustainability At A Glance: Integrity Our 2019 Scorecard I do the right thing at all times. I am trustworthy, transparent, and authentic. I treat everyone with respect. I am fair, honest, and accountable for all my actions. Values People Tech: Magis (102-16) Building the Skills of the Future Today I am obsessed with the customer. I continuously innovate. I learn fast to build capabilities. I achieve great results with an agile Blueprint for Success: Agile Operating Model mindset. Enabling Capacities Through UB Xcellerator Ubuntu From Competencies to Capabilities I collaborate. I seek to understand through courageous conversations. I give feedback, real-time, and on-demand. I communicate Employee Experience: 1UHub clearly and openly Building a Retiree’s Nest Safety and Health at Work Learning in the Digital Age Corporate Brand Idea Powering the future of banking. Disaster Risk Reduction Employee Engagement Distinguishing Beliefs Forward thinking. Innovative. Open. Agile. Employee Volunteerism GBC Milestones: A Look Back at 5 Years Own the future. Co-create innovations. CitySavings Advocacies Employer Brand

Planet: Making the Choices that Matter We are a dynamic Bank committed to bringing the future of banking to the present by being forward thinking, innovative, open, Materials and Resources Management and agile. We seek to provide our customers with the best solutions and experiences. We are committed to driving our customers to Managing Impacts to the Environment Credo success by powering our systems with advanced technology and platforms. We are accelerating their growth by connecting them to a whole new world of opportunities. We are more than a bank. We seek to transform the lives of Filipinos and make their dreams a Purpose: Tech Up Pilipinas reality. Our goal is to co-create innovations for a better world. Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Customer Experience Vision To become one of the top three universal banks in the Philippines by building a bank of enduring greatness. Customer Service Information Security and Cyber Security UnionBank is dedicated to becoming one of the top three universal banks in the Philippines by the year 2020. In fulfilling this Customer Privacy Focus mission, we commit ourselves to five key imperatives to help drive us forward: Financial Value, Operational Excellence, Superior Innovation, Customer Franchise, UnionBank Brand/Experience Corporate Governance GRI INDEX ANNEX

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About the Report Products and Services About UnionBank (102-2)

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model UnionBank CitySavings Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Deposits and Related Services Employee Experience: 1UHub Corporate, Middle-Market, and Consumer Lending Building a Retiree’s Nest Loans Deposits and Related Services Safety and Health at Work - Teacher’s Salary Loan Learning in the Digital Age Cash Management Services - Seafarer’s Loan Disaster Risk Reduction Debit Cards Employee Engagement - Pensionado Loan Precautionary Principle (102-11) Employee Volunteerism Credit Cards - Motorcycle Loan GBC Milestones: A Look Back at 5 Years Prepaid Cards UnionBank distinguishes itself through technology and CitySavings Advocacies - State Universities and Colleges (SUCs)/ Private Universities and innovation, unique branch sales and service culture, Investment Products Colleges (PUCs) Loan and centralized backroom operations. The Bank’s Planet: Making the Choices that Matter Remittance Products and Services Materials and Resources Management Debit Cards technology allows for the delivery of online, real-time Bancassurance Managing Impacts to the Environment Rewards business solutions to meet the customers’ changing Mobile and E-Banking and diverse needs through innovative and customized Remittance Products and Services Purpose: Tech Up Pilipinas Digital Channels (UnionBank Online, The Portal, GlobalLinker) cash management products and service offerings. We Direct Economic Value Generated and Distributed Bancassurance Banking Innovations with Social Benefits ensue that we are compliant with the relevant laws and Mobile Banking Customer Experience take the necessary precautions prior to launching our Customer Service product and service offerings to prevent any harm to Information Security and Cyber Security Customer Privacy our stakeholders.

Corporate Governance GRI INDEX ANNEX

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About the Report Scope and Materiality of the Report About UnionBank (102-42, 102-43, 102-46)

Scope and Materiality of the Report “Innovating Together” presents data primarily on UnionBank’s EESG performance, with additional data Joint Message of the Chairman and the President & CEO on subisidiary CitySavings. This report follows the GRI Reporting Principles of stakeholder inclusiveness, sustainability context, materiality, completeness, accuracy, balance, clarity, comparability, reliability, and Sustainability Policy and Framework timeliness.

Sustainability At A Glance: Our 2019 Scorecard UnionBank’s CSR and Sustainability Unit under the Human Resources Group are the proponents of the report, with oversight provided by the members of the Reputation Council and the Chairman. People Tech:

Building the Skills of the Future Today Reporting Process: Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator 1. Prioritize From Competencies to Capabilities • Engaged key stakeholder groups for the materiality of topics to be disclosed Employee Experience: 1UHub • Consulted key stakeholders about the Bank’s sustainability framework and key interests and expectations in the Building a Retiree’s Nest economic, environmental, and social areas Safety and Health at Work • Aligned the sustainability framework with global sustainability concerns and industry-specific issues Learning in the Digital Age Stakeholder engagement (102-40 102-43, 102-44) • Kick-off meeting, Sustainability learning and working sessions Disaster Risk Reduction 2. Assess Sustainability reporting is an immersive experience requiring a review of significant Employee Engagement • Assessed the overall process for further improvements concerns from our stakeholders—those who are in a position of influence and those who are Employee Volunteerism • Stakeholder engagement exercise GBC Milestones: A Look Back at 5 Years in a position of vulnerability. We take note of their feedback and determine how to address 3. Validate CitySavings Advocacies their concerns effectively. • Ranked the importance of identified topics, as informed by the materiality process, based on perceived scale of impact Planet: Making the Choices that Matter with the reasonable interests of the Bank and our stakeholders Materials and Resources Management • Consultations (Chairman & CEO, members of the Reputaion Council, Unit Heads, and data owners), Story conference, CUSTOMERS Managing Impacts to the Environment One-on-one interviews with business unit heads and subject matter experts TOP CONCERNS: UNIONBANK RESPONSE: 4. Review Access to customer service, product-related inquiries • Online channels (Facebook, e-mail, Purpose: Tech Up Pilipinas • Reviewed the sustainability framework, material topics, and KPIs by the Sustainability Advisory Council and Senior Twitter, Instagram, LinkedIn, Glassdoor, Direct Economic Value Generated and Distributed Management in relation to the strategic interests of the Bank and its units ENGAGEMENT CHANNELS: corporate pages) Banking Innovations with Social Benefits • Gathered data and reported on topics considered of interest to stakeholders Online channels (Facebook, e-mail, Twitter, Instagram, • Customer service hotline Customer Experience • Internal review and assessment LinkedIn, Glassdoor, corporate pages) Customer Service Customer service hotline Information Security and Cyber Security Customer Privacy How we applied the GRI process and principles FREQUENCY OF ENGAGEMENT: Activities conducted by the Bank Daily Corporate Governance GRI INDEX ANNEX

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About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman (102-40, 102-43, 102-44) and the President & CEO

Sustainability Policy and Framework EMPLOYEES REGULATORS, LGUS, GOVERNMENT AGENCIES

Sustainability At A Glance: TOP CONCERNS: UNIONBANK RESPONSE: TOP CONCERNS: UNIONBANK RESPONSE: Our 2019 Scorecard Health and medical benefits; health & safety; loans and • Health and medical assistance (apart from Labor issues, occupational health and safety • Sustainability report government-mandated benefits;inclusion (for example, PhilHealth) are provided to employees • DOLE workplace inspections People Tech: health and safety includes workers in • Safety audits ENGAGEMENT CHANNELS: Building the Skills of the Future Today UnionBank-controlled workplaces) • ERT training Reportorial Submissions • In-house clinics and accredited hospitals Blueprint for Success: Agile Operating Model ENGAGEMENT CHANNELS: • Tutok-Kalusugan FREQUENCY OF ENGAGEMENT: Enabling Capacities Through UB Xcellerator HR Helpdesk • Health programs Annual, or as needed From Competencies to Capabilities • Annual physical exams, Employee Experience: 1UHub FREQUENCY OF ENGAGEMENT: • Health management policies (including flu, Building a Retiree’s Nest Daily (HR services), Bi-weekly (Employee Relations Tuberculosis, Hepatitis A and B, etc.) Safety and Health at Work initiatives) • Eight employees are members of the Health SHAREHOLDERS Learning in the Digital Age & Safety committee Disaster Risk Reduction TOP CONCERNS: UNIONBANK RESPONSE: Employee Engagement Risk mitigation and effectiveness of approach • Investor relations briefings • Sustainability report Employee Volunteerism COMMUNITIES GBC Milestones: A Look Back at 5 Years ENGAGEMENT CHANNELS: CitySavings Advocacies TOP CONCERNS: UNIONBANK RESPONSE: Board and Committee Meetings, Financial results Relevant and continuing community development • GBC briefings Planet: Making the Choices that Matter projects • Blockchain Xcellerator • MS Ambassadors FREQUENCY OF ENGAGEMENT: Materials and Resources Management ENGAGEMENT CHANNELS: • SSS UMID Annual (stockholders’ meeting), Quarterly (financial Managing Impacts to the Environment Assigned account managers per area, website • Pag-Ibig results briefings) • i2i Purpose: Tech Up Pilipinas FREQUENCY OF ENGAGEMENT: • GlobalLinker Direct Economic Value Generated and Distributed Immediate feedback Banking Innovations with Social Benefits (e.g., after a Go Beyond Communities activity is Customer Experience completed) Customer Service Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

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About the Report Materiality Assessment About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO For this 2019 Sustainability Report, UnionBank’s Technical Working Group (TWG) revisited the previous year’s materiality assessment. The process defined a long list of sustainability topics from the Global Sustainability Policy and Framework Reporting Initiative (GRI) Standards, the Sustainability Reporting Guidelines for Publicly Listed

Companies from the Security and Exchange Commission (SEC). Sustainability At A Glance: Our 2019 Scorecard These topics were reviewed in light of the Bank’s previously published sustainability reports. The list of People Tech: topics was validated and cross-referenced against customer feedback, branch customer satisfaction, and Building the Skills of the Future Today Blueprint for Success: Agile Operating Model UnionBank’s transformation strategy and key performance metrics. Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Finally, the material topics were defined and prioritized based on their impact to UnionBank and Employee Experience: 1UHub their importance to stakeholders. The final list of topics are those that have significant impact to Building a Retiree’s Nest Safety and Health at Work UnionBank and are of the highest importance to our stakeholders. Employee and customer feedback Learning in the Digital Age from 2019 were used to update and prioritize the sustainability topics. (102-47) Disaster Risk Reduction Employee Engagement Employee Volunteerism GBC Milestones: A Look Back at 5 Years Employee Experience Environmental Compliance Inclusive Prosperity CitySavings Advocacies (including Training and Development, Compensation and Benefits) Climate Change Issues Financial Performance Planet: Making the Choices that Matter Materials and Resources Management Labor Standards and Human Rights Risk Management for Sustainable Finance PLANET Managing Impacts to the Environment PEOPLE Sustainability Management Diversity and Inclusion Indirect Economic Performance PURPOSE Purpose: Tech Up Pilipinas Customer Experience Business Ethics Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Community Engagement Anti-Corruption Practices Customer Experience Customer Service Employee Volunteerism Procurement Practices Information Security and Cyber Security Customer Privacy Socioeconomic Compliance Risk Management Information Security Corporate Governance GRI INDEX ANNEX (including Data Privacy and Integrity, Cybersecurity and Resilience)

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About the Report Our Management Approach About UnionBank

Scope and Materiality of the Report The Bank cultivates an agile and non-discriminatory workspace for a future-ready, interdisciplinary Our management approaches are determined by our materiality assessment, in line with our workforce. Talent development and employee engagement programs empower UnionBankers to Joint Message of the Chairman Sustainability Policy and Framework, our parent company Aboitiz Group’s sustainability agenda, and the #OwnTheFuture. All UnionBankers are considered sustainability champions and encouraged to and the President & CEO global effort toward the attainment of the United Nations Sustainable Development Goals (UN SDGs). To aid monitoring and evaluation of our sustainability practice, UnionBank releases a sustainability report participate in the Bank’s sustainability initiatives. (103-1) Sustainability Policy and Framework (SR) every year. (103-3)

The Bank integrates human rights in business management and complies with relevant standards and Sustainability At A Glance: Our 2019 Scorecard laws on security and safety. To promote holistic development and work-life balance, UnionBank has People established programs that are geared toward developing the workforce’s physical fitness and well- People Tech: MATERIAL TOPICS (102-47) GRI INDICATORS being; intellectual growth and satisfaction; financial security and peace of mind; and emotional and Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Employee Experience 102-8 Information on employees and other workers spiritual health. GoBeyond Communities, the Bank’s volunteer-driven CSR program, allows employees Enabling Capacities Through UB Xcellerator 401 Employment to shape the social initiatives of UnionBank. (103-2) From Competencies to Capabilities 403 Occupational health and safety Employee Experience: 1UHub 404 Training and education Employee engagement is measured on a year-on-year basis using the Gallup Global Best Practice Building a Retiree’s Nest 403-2 Types of injury and rates of injury, occupational diseases, lost Safety and Health at Work days, an absenteeism, and number of work-related fatalities Score through the Aboitiz Culture and Engagement Survey. Customer service surveys are also in place Learning in the Digital Age to ask our customers how we are doing in serving their banking needs. Community impact assessment Disaster Risk Reduction Labor Standards And 102-41 Collective bargaining agreements and feedback mechanisms inform our outreach programs. (103-1) Employee Engagement Employee Volunteerism Human Rights Planet GBC Milestones: A Look Back at 5 Years Diversity And Inclusion 405 Diversity and equal opportunity CitySavings Advocacies MATERIAL TOPICS (102-47) GRI INDICATORS Environmental Compliance 301 Materials Planet: Making the Choices that Matter Customer Experience 416 Customer health and safety 302 Energy Materials and Resources Management (including Customer Privacy) 417 Marketing and labeling 303 Water Managing Impacts to the Environment 418 Customer privacy 307 Environmental compliance Purpose: Tech Up Pilipinas Community Engagement 203 Indirect economic impacts Climate Change Issues 305 Emissions Direct Economic Value Generated and Distributed Employee Volunteerism 413 Local communities Banking Innovations with Social Benefits Socioeconomic Compliance 419 Socioeconomic compliance Customer Experience Customer Service Risk Management for 102-30 Effectiveness of risk management processes Information Security and Cyber Security Sustainability Management 102-32 Highest governance body’s role in sustainability reporting Customer Privacy

Corporate Governance GRI INDEX ANNEX

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About the Report Our Management Approach About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO UnionBank strives to work in harmony with the environment (103-1). To ensure continued sustainable Committed to bringing the future of banking to the present, UnionBank develops innovative products operations, company headquarters UnionBank Plaza runs on 100% renewable energy through the and services that add value to the lives of our consumers. We promote financial literacy and inclusion, Sustainability Policy and Framework AboitizPower’s Cleanergy brand. UnionBank subscribes to the US Green Building Council’s Leadership in bringing accessibility and banking convenience to the underserved and unbanked. UnionBank’s

Energy and Environmental Design (LEED) certification program, with branches either LEED-certified or business partnerships are targeted to help develop the local economy, improve the customer Sustainability At A Glance: Our 2019 Scorecard LEED-compliant. As a result, UnionBank’s facilities have become more efficient and resource-saving. The experience of banking, and provide a significant return on investment. (103-1) Bank also remains committed to the Aboitiz Group-wide program A-Park, which aims to plant 9 million People Tech: trees by 2020 (103-2). Notable projects include i2i, which extends inter-island banking connectivity and elevates rural Building the Skills of the Future Today Blueprint for Success: Agile Operating Model banking; and GlobalLinker, which provides digital solutions for micro-, small, and medium Enabling Capacities Through UB Xcellerator entrepreneurs. From a macro perspective, UnionBank is also exploring solutions that would further From Competencies to Capabilities Purpose strengthen information security and support anti-corruption and anti-money laundering policies and Employee Experience: 1UHub MATERIAL TOPICS 102-47 GRI INDICATORS procedures. (103-2) Building a Retiree’s Nest Safety and Health at Work Inclusive Prosperity 201 Economic Performance Learning in the Digital Age Financial Performance The Bank undergoes regular self-assessment and is compliant with reporting standards required Disaster Risk Reduction Sustainable Finance by the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, the Philippine Stock Employee Engagement Indirect Economic Performance Exchange, and the Bureau of Internal Revenue. (103-3) Employee Volunteerism GBC Milestones: A Look Back at 5 Years 102-9 Supply chain CitySavings Advocacies Procurement Practices 204 Procurement practices Planet: Making the Choices that Matter Materials and Resources Management 102-16 Ethics and integrity Managing Impacts to the Environment Business Ethics

Purpose: Tech Up Pilipinas Anti-Corruption Practices 205 Anti-corruption Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits 102-30 Effectiveness of risk management processes Customer Experience Risk Management Customer Service Information Security and Cyber Security Information Security 418 Customer privacy Customer Privacy (including Data Privacy and Integrity, Corporate Governance Cybersecurity and Resilience) GRI INDEX ANNEX

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About the Report Joint Message of the Chairman and the President & CEO About UnionBank (102-14) Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Dear Stakeholders, Sustainability Policy and Framework

Despite the massive disruption that the COVID-19 crisis has created, UnionBank’s digital transformation has Sustainability At A Glance: Our 2019 Scorecard bolstered the foundations of the business, allowing the Bank to be resilient while responding to both the challenges and changes brought about by the global crisis. People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model The corona virus pandemic clearly demonstrates the vulnerability of our globally interconnected economies. Enabling Capacities Through UB Xcellerator The virus is not only claiming human lives, it is putting the entire political and psychological immune system From Competencies to Capabilities of globalization to the most severe stress test yet. While we expect UnionBank, like any other bank, will be Employee Experience: 1UHub adversely affected by economic challenges posed by these events, we believe that our digital transformation Building a Retiree’s Nest Safety and Health at Work and capital position will be more than enough to absorb the stress on our balance sheets. Learning in the Digital Age Justo A. Ortiz Disaster Risk Reduction Prudence, capital strength, and a mindset to create innovative solutions will help us steer through the crisis. CHAIRMAN Employee Engagement Innovating Together, the theme of our sustainability report, reflects our parallel efforts to continue with our Employee Volunteerism GBC Milestones: A Look Back at 5 Years digital transformation while co-creating innovative solutions to help make our world better. CitySavings Advocacies More than just Unprecedented Highs and Lows Planet: Making the Choices that Matter integrating Materials and Resources Management Managing Impacts to the Environment Prior to the pandemic, we put the pedal to the metal and boldly go where few have ventured as we leveraged digital into on the expertise of various sectors to come up with out-of-the-box solutions. Your Bank gained momentum Edwin R. Bautista Purpose: Tech Up Pilipinas our everyday and in 2019, we achieved what you would call a good harvest year. Our resources spiked to a five-year high at Direct Economic Value Generated and Distributed processes, we PRESIDENT & CEO Banking Innovations with Social Benefits PhP 770.8 billion, with net revenues at PhP 36.7 billion (from PhP 18.5 billion in 2015), and net income at Customer Experience PhP 14 billion (more than doubled from PhP 6 billion five years ago, and a 104% increase year-on-year). place customers Customer Service Information Security and Cyber Security at the heart of Customer Privacy Then came the back-to-back disastrous events in the first quarter of 2020: the Taal Volcano eruption in January 2020 and Covid-19 which caused a global pandemic by March 2020. Both resulted in disruption of everything that Corporate Governance business operations with the latter culminating in an extended lockdown in Metro Manila and other regions GRI INDEX ANNEX we do.

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About the Report Joint Message of the Chairman and the President & CEO About UnionBank

Scope and Materiality of the Report These events made digital banking become even more relevant. Due to limited access to brick and mortar Joint Message of the Chairman and the President & CEO branches, on account of the enhanced community quarantine (ECQ), customers are compelled to embrace mobile and internet banking. In March 2020 alone, UnionBank had a 160% growth in daily sign-ups on our Sustainability Policy and Framework online and mobile baking portals.

Sustainability At A Glance: Our 2019 Scorecard Among UnionBank’s first initiatives when the ECQ took effect was to start an online fundraising campaign, even providing the option to convert credit card points into cash donations. People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model It is in times of crisis when the Filipino character and the bayanihan spirit shines. UnionBankers win as one, Enabling Capacities Through UB Xcellerator and we act as one. Our employees did not hesitate to extend helping hands to their fellow Filipinos in need From Competencies to Capabilities during the Taal eruption and the Covid-19 outbreak. Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work Through UnionBank’s CSR program, we donated PhP 3.8 million worth of personal protective equipment Learning in the Digital Age to medical frontliners, PhP 1 million worth of food and basic supplies to our host community in San Pedro, Disaster Risk Reduction Laguna, and PhP 1 million to support the nationwide food program of Aboitiz Foundation. Through our in- Employee Engagement house volunteerism program, GoBeyond Communities, our employees have given aid to more than 6,000 Employee Volunteerism UnionBank was the lone Philippine banking institution that participated at the annual Singapore Fintech communities in Metro Manila. UnionBankers have donated both their money and their time—and we cannot GBC Milestones: A Look Back at 5 Years Festival (SFF) held at the Singapore Expo in October 2019. Singapore Prime Minister Lee Hsien Loong chats with CitySavings Advocacies be more proud of them. UnionBank chairman Justo Ortiz and President and CEO Edwin Bautista as he made a stop at the our exhibition – the first booth he visited at the SFF. We showcased the Bank’s technologies, along with those of our fintech Planet: Making the Choices that Matter and thrift subsidiaries UBX and CitySavings, consistent with our relentless drive to extend more affordable and Partner in Innovation Materials and Resources Management accessible financial services to all Filipinos here and abroad.” Managing Impacts to the Environment With UnionBank’s Digital Transformation Strategy, we strive to power the future of banking through supply chain for corporate business, GlobalLinker for SMEs, and i2i for rural banks. Our ever-evolving Purpose: Tech Up Pilipinas innovation, more so in today’s drastically changed landscape. More than just integrating digital into our portfolio of technology initiatives and creative platforms is being designed using our agile operating Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits everyday processes, we place customers at the heart of everything that we do. Innovating together or the model. Once a product is tested and proven viable, we take the first-to-market approach and begin Customer Experience act of co-creating solutions means that the technology we develop is derived from customers’ unique commercializing that product. Recently, we created our subsidiary UBX, which is growing our portfolio Customer Service experiences and perspectives. It has to fit their lifestyle. It has to bear their imprint. of blockchain- and innovation-driven portfolio of products and services. Information Security and Cyber Security Customer Privacy We work with the best professionals—data scientists, engineers, programmers, designers, marketers— One of our award-winning efforts is The Ark, the first fully digital bank branch in Southeast Asia. Corporate Governance to launch industry firsts. We’ve introduced “Rafa” the chatbot for our customers, The Portal financial This 2019, we’ve gone from one state-of-the-art branch to a total of 47 The Ark branches. GRI INDEX ANNEX

15 2019 Sustainability Report

About the Report Joint Message of the Chairman and the President & CEO About UnionBank

Scope and Materiality of the Report We are now designing ARK 2.0, the very first smart branch enabled by 5G technology and the Internet of Joint Message of the Chairman and the President & CEO Things. With a completely digital platform and a highly personalized experience, The Ark is just a preview of what the future of banking holds for the country. Sustainability Policy and Framework

The Power To Transform Sustainability At A Glance: Our 2019 Scorecard We believe in the power of digital to transform lives. We’ve set a target to help 50 million digital People Tech: customers; one million will be entrepreneurs. With our rallying cry of “Tech UP Pilipinas,” we dedicate Building the Skills of the Future Today ourselves to enhancing the country’s technical capabilities. We aim to be a catalyst and leader for Blueprint for Success: Agile Operating Model We believe in the Enabling Capacities Through UB Xcellerator development, and to grow holistically within the framework of our sustainability pillars of Purpose, From Competencies to Capabilities People, and Planet. Employee Experience: 1UHub

Building a Retiree’s Nest power of digital to Safety and Health at Work We would like to conclude by expressing our sincere gratitude to our stakeholders for your continued Learning in the Digital Age support and the confidence you have placed in us. To all our employees, thank you for your hard work Disaster Risk Reduction and dedication to living out the UnionBank DNA and core values of integrity, magis, and ubuntu, which transform lives. Employee Engagement shine in today’s most trying times. Truly, you have earned the accolade “Bank Heroes” as you continue to Employee Volunteerism GBC Milestones: A Look Back at 5 Years provide service to our customers who need financial resources to survive the pandemic. Your individual CitySavings Advocacies and collective contributions are what make UnionBank a great place to work. We are proud to have all of you as part of this organization. Planet: Making the Choices that Matter Materials and Resources Management Managing Impacts to the Environment UnionBankers know our higher purpose, we are already ahead of the curve, and we have seen the value in innovating together to find solutions for pressing problems. We invite you to join us in UnionBank’s Purpose: Tech Up Pilipinas ongoing journey to build a bank of enduring greatness. We will foster collaboration, partnership, and a Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits shared purpose of co-creating innovations for a better world. Customer Experience Customer Service Information Security and Cyber Security Customer Privacy

JUSTO A. ORTIZ EDWIN R. BAUTISTA Corporate Governance GRI INDEX ANNEX Chairman President & CEO

16 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework We strive to We create the conditions that place us Sustainability At A Glance: Our 2019 Scorecard be a Bank of ahead of the curve, ensuring that not one of our stakeholders gets left behind. People Tech: Building the Skills of the Future Today purpose. Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work We harness technology to enable greater Learning in the Digital Age financial inclusion and sustainable Disaster Risk Reduction Employee Engagement prosperity for our customers. Employee Volunteerism GBC Milestones: A Look Back at 5 Years CitySavings Advocacies

Planet: Making the Choices that Matter Materials and Resources Management Managing Impacts to the Environment We also engage our entire workforce, so Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed that we can innovate together, and be Banking Innovations with Social Benefits Customer Experience true champions of sustainability. Customer Service Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

17 2019 Sustainability Report

About the Report Sustainability Policy and Framework About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Our Sustainability Policy guides our corporate decision-making at all levels and provides a frame of reference on how we contribute to sustainable development, while managing the risks and opportunities of a changing world. Sustainability Policy and Framework

Our corporate governance is linked to our sustainability agenda, with our Chairman, the highest-ranking official in the company, providing the sustainability direction. 102-32)( Sustainability At A Glance: Our 2019 Scorecard People Tech: UnionBank commits to: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub Building a Retiree’s Nest Provide products and services that: Safety and Health at Work Learning in the Digital Age Uphold, protect, and respect Disaster Risk Reduction Contribute to enhancing Contribute to the well- Reduce or avoid Demonstrate positive Implement inclusive the environment, human unsustainable Employee Engagement positive social and being of people, impacts to the most business programs Employee Volunteerism rights, and labor standards the environment, and practices important issues environmental impacts and initiatives GBC Milestones: A Look Back at 5 Years the economy of the business CitySavings Advocacies

Planet: Making the Choices that Matter Materials and Resources Management Managing Impacts to the Environment

Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Engage internal and external Foster the development of Customer Experience Communicate transparently stakeholders for continuous in-house learning, management Comply with all national Customer Service about our sustainability improvement and to promote capacity, and leadership on laws and regulations Information Security and Cyber Security performance Customer Privacy cooperation sustainability issues

Corporate Governance GRI INDEX ANNEX

18 2019 Sustainability Report

About the Report Our Sustainability Framework About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Sustainable Development Goals Framework for Sustainable Banking Network Sustainability Policy and Framework PEOPLE and Alliance for Financial Inclusion (102-12)

UnionBank supports the United Nations Sustainable Sustainability At A Glance: The success of our employees is our success. Our 2019 Scorecard Through our culture of innovation and co- Development Goals (UN SDGs) through existing initiatives of In response to the growing demand for financial inclusion We own creation, we ensure that our employees and the Bank, many of which are tied to broader programs in the in the country, the Bangko Sentral ng Pilipinas (BSP), People Tech: the future. partners can #OwnTheFuture. Aboitiz Group and in support of the national agenda of a member of the Sustainable Banking Network and Building the Skills of the Future Today Blueprint for Success: Agile Operating Model the government. Alliance for Financial Inclusion, has begun creating a Enabling Capacities Through UB Xcellerator policy framework for finance. In this new framework, the From Competencies to Capabilities Ultimately, the Bank promotes long-term economic growth BSP is putting the focus on launching capacity building Employee Experience: 1UHub by increasing the capacity of individuals and organizations initiatives, awareness campaigns, and enabling regulations Building a Retiree’s Nest Safety and Health at Work PLANET in wealth management, as well as by empowering small- that prompt banks to reassess and regulate their Learning in the Digital Age We manage our resource use and environmental scale businesses and entrepreneurs. environmental, social, and governance (ESG) impacts. Disaster Risk Reduction impact while encouraging all our stakeholders to Employee Engagement We save lead sustainable lifestyles, with consideration for As a responsible company, UnionBank strives to minimize As an organization under the jurisdiction of the BSP, Employee Volunteerism GBC Milestones: A Look Back at 5 Years resources. the future generation. its environmental footprint by adopting the Leadership in UnionBank will be compliant with the new provisions. CitySavings Advocacies Energy and Environmental Design (LEED), among other UnionBank has long been dedicated to contributing to environmental initiatives to effectively manage the Bank’s positive change in the country. In fact, UnionBank was one Planet: Making the Choices that Matter Materials and Resources Management facilities and resources. of the first to conduct a Sustainability Report long before Managing Impacts to the Environment it was even required. With the implementation of the new PURPOSE guidelines, we are committed to aligning our efforts to Purpose: Tech Up Pilipinas UnionBank has been the country’s pioneer in that of BSP to achieve a unified approach toward Direct Economic Value Generated and Distributed transforming the banking industry. No one Banking Innovations with Social Benefits We co-create sustainable financing. Customer Experience gets left behind as we encourage co-creating Customer Service innovations. innovations for a better world. Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

19 2019 Sustainability Report

About the Report Sustainability At A Glance: About UnionBank Our 2019 Scorecard Scope and Materiality of the Report 2019 RESULTS 2018 RESULTS Joint Message of the Chairman and the President & CEO 5,174 4,769 PEOPLE Job creation (employee headcount) Sustainability Policy and Framework Safe man-hours 7,394,688 (zero lost-time incidents) This was not previously reported.

Average training hours 21 21 Sustainability At A Glance: Our 2019 Scorecard Employee volunteerism 24,595 hours 17,547 hours 4.24 4.23 People Tech: Employee engagement (using Gallup tool) Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator Energy consumption 85,612 GJ 73,075.42 GJ From Competencies to Capabilities PLANET Employee Experience: 1UHub GHG emissions 25,503.19 tCO2e 11,189.84 tCO2e Building a Retiree’s Nest Water consumption 120,787 m3 134,831.74 m3 Safety and Health at Work Learning in the Digital Age LEED-certified branches 22 (UnionBank only) 20 (UnionBank only) Disaster Risk Reduction 74,861 reams 39,461 reams Employee Engagement Paper Employee Volunteerism Ink Toners 11,104 cartridges 8,887 cartridges GBC Milestones: A Look Back at 5 Years CitySavings Advocacies Paperless transactions processed 720,198 This was not previously reported.

Planet: Making the Choices that Matter Materials and Resources Management 4.61 4.28 Managing Impacts to the Environment PURPOSE Customer service satisfaction rating 8,525,817 accounts 8,098.734 accounts Purpose: Tech Up Pilipinas Customer count Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Corporate social responsibility 2,050,373 beneficiaries 1,982,475 beneficiaries Customer Experience 40,000 sign-ups 35,000 sign-ups Customer Service GlobalLinker SMEs Information Security and Cyber Security Customer Privacy Spending on local suppliers PhP 3.3 billion PhP 1 billion (does not include CitySavings)

Corporate Governance GRI INDEX ANNEX

20 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work Learning in the Digital Age Disaster Risk Reduction Employee Engagement Employee Volunteerism GBC Milestones: A Look Back at 5 Years CitySavings Advocacies

Planet: Making the Choices that Matter Materials and Resources Management We come up with disruptive and progressive Managing Impacts to the Environment ideas that challenge what is possible. Purpose: Tech Up Pilipinas Our employees become the Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Bank’s ambassadors in the We hope to bring not just our products and Customer Experience services, but also our values and can-do Customer Service markets and communities Information Security and Cyber Security culture to the community, so that we can help Customer Privacy we serve. uplift the Filipino way of life. Corporate Governance GRI INDEX ANNEX

21 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Building the Skills of the Future Today People Tech: Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator Building the skills of the future today From Competencies to Capabilities We invest heavily in the holistic development of our talents, and continually strive to build a Employee Experience: 1UHub company culture that is based on collaboration, inclusiveness, and excellence. We intend for Building a Retiree’s Nest Safety and Health at Work our talent pool to remain at the forefront of the banking industry through agility and continuous Learning in the Digital Age skills development in the workplace. We aim to develop experts who are competent in the skills Disaster Risk Reduction needed in the world of banking today. Employee Engagement Employee Volunteerism GBC Milestones: A Look Back at 5 Years We practice equal opportunity hiring, promotions, and pay. We also offer training to all our CitySavings Advocacies employees. The main advantages of an Agile environment are adaptive learning, intuitive

Planet: Making the Choices that Matter product and service design, and the ease and speed of receiving feedback leading to accelerated Materials and Resources Management release to market. (103-1, 103-2) Managing Impacts to the Environment Guided by the Agile Workspace, the Bank is focused on developing four pillars to optimize Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed performance: organizational design, capability development, leadership, and culture. AGILE2020 Banking Innovations with Social Benefits marked a significant shift of the organizational structure from a linear and traditional one toward Customer Experience cross-functionality and pluralism among employees, who are empowered to go beyond their Customer Service own fields of expertise by acquiring inter-disciplinary skills. With this framework, we aim to foster Information Security and Cyber Security Customer Privacy a culture of interconnectedness that allows us to collaborate and co-create innovative solutions.

Corporate Governance GRI INDEX ANNEX

22 2019 Sustainability Report

About the Report

About UnionBank Blueprint for Success: Agile Operating Model Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work We inspire our employees to grow beyond their respective departments by adopting a holistic set of Learning in the Digital Age skills, so they can work competently and confidently regardless of the situation. We not only look at the Disaster Risk Reduction Innovating together Employee Engagement demands now, but we also prepare our employees for the many “futures of work.” Employee Volunteerism 2019 2018 GBC Milestones: A Look Back at 5 Years We developed the Agile Operating Model (AOM), a blueprint for how UnionBankers will operate in an CitySavings Advocacies agile environment. The AOM designs the Bank’s interactions, ways of working, and governance. Squads 33 27 Planet: Making the Choices that Matter More importantly, this operating model is designed to build the bank’s capabilities for the future. Materials and Resources Management Managing Impacts to the Environment Teams 75 68 To allow innovations to happen everywhere, we have cross-functional squads and teams coming Purpose: Tech Up Pilipinas from the various chapters. They are empowered, self-organized, agile, and able to collaborate toward Direct Economic Value Generated and Distributed fulfilling their customer missions. Banking Innovations with Social Benefits Customer Experience To future-proof our Bank, and provide opportunities for UnionBankers to innovate • Squads are organized according to tribes of customer segments. Customer Service together, we have also created a supportive infrastructure, alongside processes and Information Security and Cyber Security • Talents are supplied by HR to the squads based on the need. resources, that serve as organizational enablers. Customer Privacy • A strategic investments committee evaluates the business propositions and approves the funding. • Centers of Excellence focus on emerging capabilities and technologies. Corporate Governance GRI INDEX ANNEX • Customer experience delivery channels bring our products and services to the customers.

23 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report Human Capital Profile(102-8, 405-1)

Joint Message of the Chairman and the President & CEO Diverse Talent Pool Talent Management

Sustainability Policy and Framework UnionBank and subsidiary CitySavings builds on the strengths By the end of 2019, very few of our employees were on probationary status; of an agile and diverse workforce. the majority had already been on-boarded as permanent employees. Sustainability At A Glance: Our 2019 Scorecard UNIONBANK CITYSAVINGS BANK UNIONBANK CITYSAVINGS BANK TOTAL HEADCOUNT: 3,525 TOTAL HEADCOUNT: 1,649 People Tech: 36% 64% 82% 18% 62% 38% 58% 42% 93. 6. 95. 4. Building the Skills of the Future Today Permanent Probationary Permanent Probationary Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Young Majority Hiring and Attrition (401-1) Attrition Rate 13.2% Employee Experience: 1UHub Most of our bank employees belong to the 30-50 age range, Building a Retiree’s Nest followed by those below 30 years old. Safety and Health at Work UNIONBANK CITYSAVINGS BANK Learning in the Digital Age UNIONBANK CITYSAVINGS BANK Disaster Risk Reduction 345 463 102 113 Employee Engagement New Hires Resignations New Hires Resignations Employee Volunteerism 1,204 2,025 642 967 <30 years old 30-50 years old <30 years old 30-50 years old As a matter of policy and in compliance with the Labor Code of the Philippines, UnionBank GBC Milestones: A Look Back at 5 Years has zero hires under the age of 18. The Bank also had zero incidents of child labor, forced or CitySavings Advocacies compulsory labor, or human rights violations in 2019. Inclusive Workplace Planet: Making the Choices that Matter We value the contributions of everyone in the UnionBank family, Materials and Resources Management including our minority groups. Managing Impacts to the Environment Potential Successors UNIONBANK CITYSAVINGS BANK Good succession planning ensures that we have ample talents to tap for Purpose: Tech Up Pilipinas senior leadership positions. Direct Economic Value Generated and Distributed > 50 years old 8% 2% Banking Innovations with Social Benefits UNIONBANK CITYSAVINGS BANK Customer Experience Belonging to vulnerable sector (3 PWDs) 0.1% 0% Customer Service 22% 44% Information Security and Cyber Security Employees covered by CBA* (102-41) 19% 47% 40% 33% 13. 26. Customer Privacy Managers Supervisors Managers Supervisors * The CBA lasts for 5 years. However, not later than 3 years after the execution of the CBA, the economic provisions are Corporate Governance renegotiated. The provisions of the active CBA are open for discussion 30 days prior to its expiration date. Any changes that will Complete data on employee demographics can be found in the Annexes GRI INDEX ANNEX affect workers are communicated during scheduled meetings with management.

24 2019 Sustainability Report

About the Report

About UnionBank Enabling capabilities through UB Xcellerator

Scope and Materiality of the Report

Joint Message of the Chairman As digital and emerging technologies such as Blockchain, Data Science, Artificial Intelligence, and and the President & CEO Machine Learning have increasingly been adopted by companies across different industries, there has

Sustainability Policy and Framework also been an increase in demand for talent who are equipped with such technical skills. However, there is a huge gap on the current supply of talent who are proficient on these new technologies. Sustainability At A Glance: Our 2019 Scorecard UnionBank saw the need to create a knowledge center for new technologies with the aim of building People Tech: up the capabilities of Filipino workers, making them tech-ready for emergent digital landscapes. The Building the Skills of the Future Today objective of the program is to create exponential impact through building digitally proficient talents Blueprint for Success: Agile Operating Model by creating mentors, empowering educational institutions and designing new ways of learning like Enabling Capacities Through UB Xcellerator From Competencies to Capabilities innovation garages, hackathons, and the like. Employee Experience: 1UHub Building a Retiree’s Nest We are focusing on educational institutions as they are the prime movers in imparting knowledge and Safety and Health at Work Educational Partners honing the skills of the next generation. By enabling our educational partners, we are able to increase Learning in the Digital Age talents that will bring about innovations and game-changing products. Disaster Risk Reduction STI Education Services Group, Inc. Employee Engagement Employee Volunteerism The objective of the program is to create AMA University GBC Milestones: A Look Back at 5 Years Asia Pacific College CitySavings Advocacies exponential impact through building blockchain Technological Institute of the Philippines Planet: Making the Choices that Matter talents by creating mentors, empowering Materials and Resources Management University of the Philippines Diliman Managing Impacts to the Environment educational institutions and future-proofing University of Makati the Philippines. Purpose: Tech Up Pilipinas University of Santo Tomas Direct Economic Value Generated and Distributed By creating the UB Xcellerator program, which uses rich media and practical applications, we are Banking Innovations with Social Benefits De La Salle - College of Saint Benilde Manila Customer Experience sparking interest on the new wave that is blockchain technology and how impactful it is to modern De La Salle Lipa Customer Service society. Seeding talent in the Xcellerator program that will be proficient in such technology allows Information Security and Cyber Security UnionBank to future-proof the country’s talent pool. Mapua University Manila Customer Privacy

Corporate Governance GRI INDEX ANNEX

25 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO From Competencies to Capabilities

Sustainability Policy and Framework In the ever-changing landscape of banking, today’s search for talent is no longer just about having

a traditional academic background. UnionBank acknowledges that skill and talent can come from Sustainability At A Glance: Our 2019 Scorecard anywhere. With this in mind, we have shifted our focus from competencies to capabilities. We no longer limit our hiring qualifications to degrees alone, but instead look for talents who can provide meaningful People Tech: and creative solutions, regardless of their background. Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator We continue to create channels where talented individuals can be discovered and given career From Competencies to Capabilities opportunities. (413-1) Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work Learning in the Digital Age Tahanang Walang Hagdanan Command Center Uhackademia Zamboanga Disaster Risk Reduction UnionBank operates the Tahanang Walang Hagdanan, Inc. (TWHI) Command Center UnionBank hosted its very first UHack in Zamboanga on October 11 – 12, 2019 with a Employee Engagement where differently-abled individuals are given training on information technology and basic total of 46 participants. Composed of both students and professionals, a total of 11 teams Employee Volunteerism GBC Milestones: A Look Back at 5 Years programming. In partnership with the Information Security Technology Services Group competed during the event and worked to solve the different challenges posed by the CitySavings Advocacies (ITSG), three project hires joined the team and worked remotely from the Command Center Bank. under a one-year contract. Planet: Making the Choices that Matter Materials and Resources Management External Partnerships Managing Impacts to the Environment Data Science and AI Institute (DSAi) UnionBank is also active in working with external partners through sponsorships and job UnionBank launched the Data Science and AI Institute on July 22, 2019 with a six- fairs. In 2019 this included the UP Cursor – Computer Science Summit (September 2019), Purpose: Tech Up Pilipinas week training and mentoring program on data science and artificial intelligence. The Internet of Things Summit Philippines (September 2019), MAP Women’s Forum Expo and Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits UnionBank Data Team, together with For the Women (FTW) Foundation, chose 15 external Job Fair (October 2019), and the ADB Career Fair 2019. Moving away from the traditional Customer Experience candidates and 35 internal candidates as initial mentees. Prior to the batch’s graduation, sign-up protocol, the UnionBank booth engages fair attendees with interactive activities Customer Service the participants presented their Capstone Projects to a panel of UnionBank Executives. such as board games, UnionBank-related puzzle games, and even through a ball pit Information Security and Cyber Security Customer Privacy From the 15 external candidates who were trained under the program, 10 were hired by puzzle-solving experience. UnionBank to become regular employees. Corporate Governance GRI INDEX ANNEX

26 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Employee Experience: 1UHub

Sustainability Policy and Framework Anchored in its design objective of delivering a delightful employee experience through technology, As a result of this obsession with service quality, the Human Resources Group, in partnership with

UnionBank’s centralized digital HR platform and lifestyle app, One UnionBanker Hub (1UHub), offers a the Information Technology Services Group (ITSG), has fully automated 65% of HR processes. They Sustainability At A Glance: Our 2019 Scorecard fast, reliable, secure, and user-friendly channel to access human resource programs and services across reduced the overall turnaround time for HR transactions by 99%, sustained an average service rating the employee lifecycle. of 4.54 out of 5, and realized PhP14.3 million in cost savings by decommissioning of HR legacy systems People Tech: and process streamlining. Building the Skills of the Future Today Blueprint for Success: Agile Operating Model With a monthly average log-in of over 23,000 users in 2019, 1UHub, for example, made it easier for Enabling Capacities Through UB Xcellerator employees to submit employee benefit service requests. Any UnionBanker is able to send a request in Steadfast in this mission of co-creating solutions with stakeholders and championing employee From Competencies to Capabilities less than a minute from their mobile devices or laptops, and this is instantly credited to their nominated experiences, UnionBank was awarded the Achievement in HR Technology by the Asian Banker, and Employee Experience: 1UHub accounts. Excellence in HR through Technology by the Philippine Best Employer Brand Awards in 2019. In Building a Retiree’s Nest Safety and Health at Work addition, the 1UHUB app was also awarded Best Lifestyle App by IDC. Learning in the Digital Age 1UHub produced four iterations in 2019 that focused on key strategic areas including Performance Disaster Risk Reduction Management, Employee Engagement, and Capability Building. Employee Engagement Employee Volunteerism (401-2) GBC Milestones: A Look Back at 5 Years Employee Benefits CitySavings Advocacies UnionBank provides employees with a variety of benefits, going beyond what is mandated by law.

Planet: Making the Choices that Matter Preventive Health Care And Tenure-Related Benefits, Leaves Medical Benefits Educational Pension And Life Insurance Loans And Leases Other Perks Materials and Resources Management Managing Impacts to the Environment • Vacation Leave • Group Health Plan (Group • Educational Aid • Thirteenth-month Pay • Multi-Purpose Loan • Baguio Staff House • Sick Leave Hospitalization Plan • Educational Plan • SSS - Salary Loan Reservation Purpose: Tech Up Pilipinas • Service Incentive Leave Coverage, Out-Patient Subsidy • Pag-Ibig - Emergency Loan • Gym Membership • Parental Leave Reimbursement for Managed • Board Certification • Service Awards - Computer Loan • Events Budget Direct Economic Value Generated and Distributed - Maternity Leave Care) Leave • Separation Pay - Housing Assistance Allocation Banking Innovations with Social Benefits - Paternity Leave • Annual Physical Exam and • Retirement Plan Loan Customer Experience - Solo Parent Leave Executive Check-up (separate from SSS) (separate from Pag-Ibig) Customer Service • Emergency Leave • Annual Medical and Dental • Life Insurance Benefit - Motorcycle Loan Information Security and Cyber Security • Special Leaves for Women Allowance • Leases - Magna Carta Leave (for treatment of Gynecological Disorders) • Optical Care - Laptop/Tablet Customer Privacy - Violence Against Women and Children Leave • Dental Care Reimbursement - Car Lease • Birthday Leave • Employee Vaccination Corporate Governance • Bereavement Leave Program and Subsidy GRI INDEX ANNEX

27 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Building a Retiree’s Nest Safety and Health at Work

Sustainability Policy and Framework Partnering with the Trust and Investment Services Group and employees, the Human Resource The UnionBank Occupational Health and Safety Committee (OHS) Committee is tasked with ensuring

Group (HRG) co-created the Employee Retirement Pension Fund in April 2019 in order to augment compliance with general requirements such as the DOLE-OSH standards, environmental standards, Sustainability At A Glance: BSP requirements, and local laws applicable with our branches located in municipalities that have their Our 2019 Scorecard the Bank’s existing retirement benefit. Embedded in the 1UHub platform, the fund allows employees to contribute a portion of their monthly salary toward investment, enabling them to corresponding ordinances. (103-2) People Tech: achieve their future financial goals. Building the Skills of the Future Today OHS continually monitors and coordinates with the various branches regarding their status and concerns. Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator Through the 1UHub app, they are able to top-up their contribution amount, review the fund’s To streamline this process, the Bank launched a digital tracking and monitoring system that allows the From Competencies to Capabilities historical performance, and watch the growth of their investment from their mobile devices. branches access to their pending OHS concerns. (103-3) Employee Experience: 1UHub

Building a Retiree’s Nest Safety and Health at Work Performance Appraisals and Rewards Banner Year For Safety (403-2) Learning in the Digital Age Through the 1UHub app, UnionBankers are also able to set goals, receive instant feedback, Disaster Risk Reduction engage in performance discussion, request coaching from their line managers, and receive Employee Engagement SAFE MAN-HOURS SAFETY DRILLS performance appraisals. UnionBankers may similarly recognize the everyday successes and Employee Volunteerism 7,394,688 118 GBC Milestones: A Look Back at 5 Years achievements of others by issuing electronic rewards, which they may redeem to over 500 CitySavings Advocacies merchants with over 7,000 establishments nationwide. Good Health and Well-being Planet: Making the Choices that Matter Materials and Resources Management Learning Pathways There were ZERO LOST-TIME Managing Impacts to the Environment Supporting the Bank’s shift from a competency-based to a capability-based learning INCIDENTS at UnionBank in 2019. philosophy, the 1UHub platform augmented the My Learning module to include learning Purpose: Tech Up Pilipinas pathways. Through this, UnionBankers are able to avail a curated set of learning tasks that Direct Economic Value Generated and Distributed No Fatalities Banking Innovations with Social Benefits includes articles, books, e-learning videos, in order to build their digital capabilities, among No Restricted Work Case Customer Experience the other channels used by UnionBank University to push learning across the organization No Medical Treatment Case Customer Service including Microsoft Sway and Sharepoint. Information Security and Cyber Security At CitySavings, there were 48 lost days recorded, mostly for Customer Privacy hypersensitive skin reactions, minor abrasions, headaches, and the like. There were also zero fatalities from the subsidiary. Corporate Governance GRI INDEX ANNEX

28 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Disaster Risk Reduction Sustainability Policy and Framework

UnionBank is vigilant in preparing for potential emergencies. Currently, disaster management Sustainability At A Glance: Our 2019 Scorecard includes a safety drill every month per floor at the UnionBank Plaza head office, an evacuation drill every quarter in each branch, and an earthquake/fire drill twice a year in the head office and People Tech: the various branches. From existing bank-wide policies, OHS hopes to develop and enforce new Building the Skills of the Future Today Blueprint for Success: Agile Operating Model policies that aim to give branch-specific or localized guidelines by Q1 of 2020, and implement the Enabling Capacities Through UB Xcellerator changes by Q2 of 2020. From Competencies to Capabilities Employee Experience: 1UHub UnionBank University E-Learning To strengthen the competencies of UnionBankers, the OHS Committee conducted a series of OHS Building a Retiree’s Nest UnionBank University’s tagline: Growing Leaders. Building Expertise. Innovating Safety and Health at Work training sessions for UnionBank branches in Mindanao in 2019. As a result, overall interest and Learning in the Digital Age Business. Taking learning beyond the classroom, UnionBank University is a web participation in health and safety concerns increased in the Mindanao branches. Building on what Disaster Risk Reduction portal that allows UnionBankers to learn and earn certifications on new banking they had learned from their sessions, the officers took stock of branch-specific risks and formulated Employee Engagement programs and processes (e.g., ARK for Corporate), compliance courses (i.e., e-modules emergency plans. There is also interest in conducting echo seminars to cascade the information to Employee Volunteerism on information security, enterprise risk management, anti-money laundering, and GBC Milestones: A Look Back at 5 Years their co-workers. anti-fraud), as well as advanced e-learning courses on coding and design (e.g., design CitySavings Advocacies thinking, blockchain, and ethical hacking for security testing). Planet: Making the Choices that Matter Materials and Resources Management The University provides UnionBankers with the means to test their potential and Managing Impacts to the Environment learn from different disciplines. All employees are invited to avail of the programs and Average training hours provided to employees (404-1) seminars free of charge. This borderless way of functioning allows for flexibility and Purpose: Tech Up Pilipinas freedom in the personal and career development of our employees UNIONBANK CITYSAVINGS BANK Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits An employee gets an average An employee gets an average UnionBankers are able to complete and be awarded their certifications online, as Customer Experience of 21 training hours of 21 training hours well as be notified and register early for networking opportunities relevant to their Customer Service Information Security and Cyber Security interests and roles. Customer Privacy

Corporate Governance GRI INDEX ANNEX

29 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO #OwnYourWellness

Sustainability Policy and Framework #OwnYourWellness aims to attain a holistic approach on aspects of wellness that are considered to be the Owning Physical Wellness

most important to the employees. Programs are designed to develop the employees’ physical, mental, The Bank actively promotes living a healthy and active lifestyle through Sustainability At A Glance: Our 2019 Scorecard and financial wellness. exercise and nutrition, regular health risk assessment, health education, and preventive measures such as immunization. UnionBank also holds athletic People Tech: UnionBank follows the 3Es in implementing wellness initiatives: tournaments and fun runs (i.e., U Run) to support and promote athleticism Building the Skills of the Future Today Blueprint for Success: Agile Operating Model • Educate employees on being responsible and “owning” their personal wellness. among its employees. Workplace relaxation techniques and daily massages are Enabling Capacities Through UB Xcellerator • Enable employees to pursue wellness within the workplace through wellness activities. also available to the employees to help ease physical stress. From Competencies to Capabilities • Empower employees to sustain these wellness habits, and solidify these practices, within Employee Experience: 1UHub UnionBank’s company culture. Owning Mental Wellness Building a Retiree’s Nest Safety and Health at Work Mental health is considered an important aspect of the overall wellness of our Learning in the Digital Age employees. In October 2019, UnionBank made a monumental step toward Disaster Risk Reduction strengthening its mental health programs with the establishment of a Mental Employee Engagement Health Policy. To help with the stresses of work and everyday life, the Bank Employee Volunteerism GBC Milestones: A Look Back at 5 Years conducts mental health awareness campaigns, and offers mindfulness training, CitySavings Advocacies stress management sessions, counselling sessions, employee assistance programs, and support groups. Recreational activities such as Family Day, Planet: Making the Choices that Matter Materials and Resources Management Halloween and Christmas programs, and other social events are also part of Managing Impacts to the Environment our wellness initiatives.

Purpose: Tech Up Pilipinas Owning Financial Wellness Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits UnionBank considers financial wellness to be an integral part of the lives Customer Experience of individuals. The Bank offers various programs, products, and services to Customer Service educate employees on financial literacy and wellness including a total rewards Information Security and Cyber Security Customer Privacy benefit program, retirement and savings plans, and pension funds. To ensure that our employees are well-equipped to achieve their short-term and long- Corporate Governance term financial goals, the Bank also organizes forums and retirement fairs. GRI INDEX ANNEX

30 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Employee Volunteerism

Sustainability Policy and Framework In the interest of nation-building and development, and in the spirit of Ubuntu, UnionBank continues

to create products—and projects—that are geared toward making a difference in the lives of the Sustainability At A Glance: Our 2019 Scorecard communities we serve. Through company-supported and employee-driven initiatives, UnionBank works together with these communities to create our vision of a better world. We not only provide monetary People Tech: donations, but also contribute the “sweat equity” of caring UnionBankers. Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work Learning in the Digital Age Disaster Risk Reduction Employee Engagement Employee Volunteerism Go Beyond Communities (203-1, 203-2, 413-1) GBC Milestones: A Look Back at 5 Years CitySavings Advocacies The GoBeyond Communities program (GBC), which marked its fifth year in 2019, has become a Planet: Making the Choices that Matter trademark of volunteerism at UnionBank. With an annual budget of PhP 10,000,000, GBC is an Materials and Resources Management employee-driven program that provides the Bank’s workforce with the opportunity to initiate and lead Managing Impacts to the Environment their own CSR initiatives. Employees are encouraged to submit project proposals on their personal

Purpose: Tech Up Pilipinas advocacies for endorsement by the Bank. Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits As an employee-driven initiative, the program also represents a shift in how CSR is practiced by a Customer Experience large corporation. Through GBC, the Bank allows for CSR coverage to be planned from the grassroots, Customer Service Information Security and Cyber Security encompassing a wide range of advocacies that are important to the employees themselves. The GBC Customer Privacy program is considered to be one of the benefits enjoyed by employees, as it allows them to enact initiatives that are in line with their personal values and interests, even as they experience the sense of Corporate Governance GRI INDEX ANNEX belongingness or being one with humanity espoused by the Bank value of Ubuntu.

31 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report Beyond The Bank Joint Message of the Chairman GBC Milestones: Since its launch in 2014, GoBeyond Communities (GBC) has implemented 770 employee-driven projects which have impacted the lives of 1.98 and the President & CEO A Look Back at million beneficiaries in 860 communities nationwide. GBC embodies how UnionBankers truly are part of something bigger than ourselves. Sustainability Policy and Framework 5 Years

Sustainability At A Glance: Our 2019 Scorecard DECEMBER 2013 JULY 8, 2015 APRIL 10, 2018 DECEMBER 2019 In a bid to provide UnionBankers The Bank launches the GoBeyond Communities People Tech: a platform to elevate the lives and Portal, a web-based system that facilitates Building the Skills of the Future Today fulfill the dreams of their immediate Blueprint for Success: Agile Operating Model project proposal, approval, and management. communities, then Chairman and Enabling Capacities Through UB Xcellerator The Portal allows all UnionBankers to submit CEO Justo A. Ortiz encourages the From Competencies to Capabilities The Bank receives the Gold Award for Corporate Social project proposals or to sign up for activities Employee Experience: 1UHub Human Resources Department to Responsibility (CSR) for GoBeyond Communities at the in a convenient and paperless manner. The UnionBank completes “Uplift: Stories that Building a Retiree’s Nest develop an employee-driven social Go Beyond,” a coffee table book celebrating Safety and Health at Work Asian Banking and Finance Retail Banking Awards held Portal also serves as an interactive platform for responsibility program. Learning in the Digital Age in Singapore. The Bank is also recognized as the Silver UnionBankers to share their experiences and five years of life-changing projects that Disaster Risk Reduction Employer of the Year. sustain the volunteerism momentum. seek solutions to community problems , for Employee Engagement publishing and release in 2020. Employee Volunteerism GBC Milestones: A Look Back at 5 Years CitySavings Advocacies

Planet: Making the Choices that Matter MAY 17, 2014 MARCH 10, 2017 MAY 2019 Materials and Resources Management Managing Impacts to the Environment UnionBank officially launches GoBeyond Communities. The launch program, called Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed the “KabUhayan and KaayUsan” campaign, Banking Innovations with Social Benefits helps rehabilitate the “Kariton ng Buhay” The Bank celebrates five years of GoBeyond Communities. As Customer Experience food stalls of select residents of Barangay Customer Service the program hits its milestone year, it has seen 22,918 volunteers Oranbo, Pasig City. In all, 121 volunteers, The Bank receives a Gold Anvil for GoBeyond Information Security and Cyber Security reach 907 communities nationwide. Customer Privacy composed of UnionBank employees and Communities at the 52nd Anvil Awards, organized by their friends and family, committed 726 the Public Relations Society of the Philippines (PRSP) to Corporate Governance honor outstanding public relations programs and tools. GRI INDEX ANNEX hours to the said project.

32 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman In 2019, the GBC program completed 127 of these projects under its four focus areas, which are aligned and the President & CEO with the Bank’s sustainability agenda: (203-1, 203-2, 413-1) Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: EMPLOYMENT & ENVIRONMENT EDUCATION INCLUSION LIVELIHOOD Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Tree planting Maintenance and Education support and Livelihood training and Enabling Capacities Through UB Xcellerator rehabilitation of public wellness activities for workshops From Competencies to Capabilities school facilities (Brigada survivors of domestic Coastal clean-up Employee Experience: 1UHub Eskwela) violence and child Talks on financial

Building a Retiree’s Nest sexual abuse literacy Safety and Health at Work Turtle hatchling release Knowledge and Learning in the Digital Age technology transfers for Visits to a home for the Disaster Risk Reduction schools elderly Employee Engagement IT equipment donations Smile Train PH – access Employee Volunteerism to free cleft palate GBC Milestones: A Look Back at 5 Years surgery CitySavings Advocacies

Planet: Making the Choices that Matter Materials and Resources Management Managing Impacts to the Environment (Some of UnionBank’s GBC projects are multi-pronged. For example, Tahang Walang Hagdanan, Inc. Command Center training in partnership with the ITSG provides livelihood training for differently-abled Purpose: Tech Up Pilipinas individuals and, at its core, promotes inclusion.) Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Customer Experience The year 2019 saw great participation across the Bank’s various departments and ranks. Data has Customer Service shown that the Branch Channel Management has been the most active department in terms of GBC Information Security and Cyber Security Customer Privacy involvement, and that employees with the rank of Officer are the most active in participating in and leading GBC initiatives. Corporate Governance GRI INDEX ANNEX

33 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard MEA Ambassadors: Partners for Digital Literacy (413-1, 203-2) People Tech: Building the Skills of the Future Today Sometimes, even our educators need a learning boost. Microsoft Philippines estimates Blueprint for Success: Agile Operating Model as many as 600,000 teachers, residents of island barangays and isolated areas across Enabling Capacities Through UB Xcellerator the country, who lack the technical tools to teach effectively. Public school teachers, in From Competencies to Capabilities particular, shoulder the extra burden of insufficient governmental support for additional Employee Experience: 1UHub Building a Retiree’s Nest training, materials, and facilities. Safety and Health at Work U Run for Children’s Hour (203-2) Learning in the Digital Age In response to this need, the Microsoft Education Ambassadors (MEA) Program, a Disaster Risk Reduction partnership between Microsoft Philippines and the Department of Education (DepEd), In celebration of GoBeyond Communities’ 5th anniversary, and as part of the Employee Engagement recruits private individuals to educate public school teachers on the use of digital Bank’s wellness program, UnionBank also hosted U Run in August 2019. The fun Employee Volunteerism technologies for the classroom. When paired with GoBeyond Communities, the MEA GBC Milestones: A Look Back at 5 Years run was held as a culmination of a fundraising campaign in support of Children’s Program gives UnionBankers the opportunity to give back to the schools and the CitySavings Advocacies Hour Philippines Foundation, Inc. UnionBankers donated an hour’s worth of their teachers that helped shape them into the professionals they are today. salary to support the Children’s Hour’s education initiatives for Filipino youth. Planet: Making the Choices that Matter They were able to raise PhP 25,500. All donors became eligible to join the annual Materials and Resources Management Under the program, UnionBank’s MEAs are being trained on the use of various Microsoft benefit run, which tied in to UnionBank’s wellness program to promote healthy Managing Impacts to the Environment tools and technologies that help improve productivity, classroom engagement, and activities in the workplace. learning outcomes. UnionBank’s MEAs adopt and train at least one public school. Purpose: Tech Up Pilipinas Microsoft has so far trained two batches of UnionBank MEAs, with the latest being 31 MEA Direct Economic Value Generated and Distributed graduates who adopted at least 40 public schools before graduating in 2019. Aside from Banking Innovations with Social Benefits Customer Experience providing training to teachers, UnionBankers have also donated computer hardware, Customer Service educational software, and other digital tools to their adopted public schools. Information Security and Cyber Security Customer Privacy This partnership with Microsoft Philippines is just one way UnionBank creates technology-driven solutions to promote inclusive development. Corporate Governance GRI INDEX ANNEX

34 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO CitySavings Advocacies (203-2, 413-1)

Sustainability Policy and Framework UnionBank subsidiary CitySavings is known for its outstanding performance in its Corporate Social CitySavings champions projects Responsibility (CSR) initiatives. In 2019, the thrift bank was awarded, for the second time, by the Global Sustainability At A Glance: Our 2019 Scorecard Banking & Finance Review, as the Best CSR Bank Philippines 2019. CitySavings champions projects that that promote financial inclusion and promote financial inclusion and education, particularly in underserved communities in the Philippines. education, particularly in underserved People Tech: Building the Skills of the Future Today communities in the Philippines Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work Brigada Eskwela Learning in the Digital Age Dedicated to uplifting the quality of education of students around the country, Disaster Risk Reduction CitySavings has been a consistent partner of the DepEd’s Brigada Eskwela. Held Employee Engagement annually, the project mobilizes volunteers from the private and public sectors to clean, Employee Volunteerism GBC Milestones: A Look Back at 5 Years repair, and repaint school facilities. CitySavings Advocacies From May 20-25, 2019 a total of 873 CitySavings employees volunteered for the Brigada Planet: Making the Choices that Matter Materials and Resources Management Eskwela, themed “Matatag na Bayan para sa Maunlad na Paaralan,” to ready a total of Managing Impacts to the Environment 230 public schools for the opening of classes nationwide.

Purpose: Tech Up Pilipinas Project TEACH: Educator Empowerment Program Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits In partnership with Alchemy Education Solutions, Inc., CitySavings Bank continues to Customer Experience push forward with its investment in education through its signature program, Project Customer Service TEACH. In 2019, there were 834 teachers empowered in 19 NCR schools. Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

35 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Alternative Learning System (ALS) Project Pink Sustainability At A Glance: Our 2019 Scorecard CitySavings is proud to work hand-in-hand with the DepEd in advancing its A partnership with the Ramon Aboitiz Foundation, Inc. – Eduardo J. Alternative Learning System (ALS) program. Driven by the dedicated team Aboitiz Cancer Center (RAFI – EJACC) and the Department of Education People Tech: of ALS teachers, the ALS advocacy aims to uplift the lives of individuals (DepEd), Project Pink aims to increase public awareness on breast cancer Building the Skills of the Future Today Blueprint for Success: Agile Operating Model by promoting literacy and inclusive education among marginalized by organizing learning sessions, with breast cancer survivors invited as Enabling Capacities Through UB Xcellerator citizens who have limited or no access to formal education. To date, it has speakers, to disseminate critical information to more women. In 2019, 30 From Competencies to Capabilities successfully provided tools like laptops, LCD projectors, pocket wifi, and training sessions were conducted for 2,552 participating teachers. Medical Employee Experience: 1UHub external hard drives to support 4,500 mobile teachers and their students missions have also became part of the program, with 200 teachers from Building a Retiree’s Nest Safety and Health at Work across the country. the Madridejos District in Cebu given clinical breast examination and Learning in the Digital Age pap smear assessments. The examinations were conducted by trained Disaster Risk Reduction Project Synergy volunteer midwives from The Integrated Midwives Association of the Employee Engagement In partnership with the Ramon Aboitiz Foundation Inc. (RAFI) and the Kool Philippines (IMAP) – Cebu Midwife Clinic, Inc. (ICMCI) and RAFI - EJACC. Employee Volunteerism GBC Milestones: A Look Back at 5 Years Adventure Camp (KAC), Project Synergy aims to develop the values and CitySavings Advocacies leadership skills of CitySavings’ various partners through synergistic and Project Peraparasyon experiential learning. The development program aims to equip public Project Peraparasyon is another financial wellness initiative which aims to Planet: Making the Choices that Matter Materials and Resources Management school teachers and non-teaching personnel with the tools to hone their empower public school educators through courses on financial literacy and Managing Impacts to the Environment personal strengths, strengthen their relationship with their co-workers, other relevant topics that fall under the Bangko Sentral ng Pilipinas (BSP) and become better leaders. In 2019, 7 divisions partnered to train 85 school Circular No. 857 (Financial Consumer Protection Framework).The program Purpose: Tech Up Pilipinas principals via Project Synergy. trains public school teachers and non-teaching personnel from the DepEd Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits on simple and practical ways of saving, investing, and managing debts. In Customer Experience 2019, the bank was able to conduct a total of 490 sessions to more than Customer Service 31,600 educators. Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

36 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work Learning in the Digital Age Disaster Risk Reduction We are fully committed to minimizing our carbon Employee Engagement footprint by “greening” our network of branches. Employee Volunteerism GBC Milestones: A Look Back at 5 Years UnionBank Plaza, our headquarters, was the first high- CitySavings Advocacies rise financial center in the Philippines to operate fully Planet: Making the Choices that Matter through a renewable energy source in 2017. Through Materials and Resources Management Our activities have Managing Impacts to the Environment the years, we have turned our bank branches and

Purpose: Tech Up Pilipinas impact and we intend workspaces into sustainably designed structures Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits for the balance to following the principles of Leadership in Energy Customer Experience and Environmental Design (LEED). As individuals, Customer Service Information Security and Cyber Security be on the side of the UnionBankers are also making the choice to lead a Customer Privacy environment. sustainable lifestyle. Corporate Governance GRI INDEX ANNEX

37 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Building the Skills of the Future Today Planet: Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator Making the Choices that Matter From Competencies to Capabilities Innovation is the practice of creativity amid necessity—and this includes transforming the ways Employee Experience: 1UHub we do business to prevent harm to the environment. UnionBank remains committed to the Race Building a Retiree’s Nest Safety and Health at Work to Reduce program (R2R), which highlights the Aboitiz Group’s commitment to manage resources Learning in the Digital Age efficiently. This commitment encourages UnionBank all over the country to reduce consumption Disaster Risk Reduction of water, electricity, and paper. Employee Engagement Employee Volunteerism GBC Milestones: A Look Back at 5 Years UnionBank made a critical choice by institutionalizing sustainability and encouraging CitySavings Advocacies UnionBankers to be protective of the only planet we have and share with the rest of humanity. As

Planet: Making the Choices that Matter we continue with our sustainability journey, and as CitySavings embarks on theirs, together we Materials and Resources Management hope to further improve on our environmental performance. Managing Impacts to the Environment UnionBank’s modest sustainability efforts thus far have caught the eye of industry peers, earning Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed us a place among the Circle of Excellence Awardees for Green Company of the Year at the Asia Banking Innovations with Social Benefits 2018 CEO Awards. Customer Experience Customer Service Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

38 2019 Sustainability Report

About the Report

About UnionBank Green Infrastructure: Lead through LEED

Scope and Materiality of the Report

Joint Message of the Chairman The LEED green building rating system provides the Bank a standard framework for identifying and the President & CEO practical and measurable green building design, operations, and maintenance solutions. Due to LEED

Sustainability Policy and Framework certification, for 10 years we have also committed to report our power and water consumption to the Green Business Certification Institute, besides the statutory self-monitoring required by regulation. Sustainability At A Glance: Our 2019 Scorecard With 22 of our branches LEED-certified and the rest LEED-compliant, UnionBank and all of its facilities People Tech: are committed to ensuring that its operations have minimal impact to the environment. LEED, or the Building the Skills of the Future Today Leadership in Energy and Environmental Design, ensures that our facilities are built and maintained up Blueprint for Success: Agile Operating Model to standard requirements. Better buildings means better lives and UnionBank seeks to use materials Enabling Capacities Through UB Xcellerator From Competencies to Capabilities efficiently, reduce emissions, and save on water and energy resources. Employee Experience: 1UHub Building a Retiree’s Nest Materials and Resources Management Safety and Health at Work Learning in the Digital Age We seek opportunities to conserve our resources, reduce our overhead costs, and avoid any negative Disaster Risk Reduction impacts on the environment. Employee Engagement Employee Volunteerism GBC Milestones: A Look Back at 5 Years CitySavings Advocacies ENERGY CONSUMPTION (302-1) ELECTRICITY (IN GJ) FUEL (IN GJ) UnionBank 58,399 597 Planet: Making the Choices that Matter CitySavings 10,426 16,190 Materials and Resources Management Managing Impacts to the Environment SUBTOTAL 68,825 16,787 TOTAL 85,612 Purpose: Tech Up Pilipinas We are committed to practicing energy efficiency, aided by the Bank’s digital transformation, and our Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits employees’ drive toward a more sustainable lifestyle. Our headquarters continues to be 100% powered Customer Experience by renewable geothermal energy and we are currently tracking our usage. Customer Service The LEED Advantage Information Security and Cyber Security 17,521 kWh saved annually Customer Privacy (per 200sqm branch) Corporate Governance GRI INDEX ANNEX

39 2019 Sustainability Report

About the Report

About UnionBank Green Infrastructure: Lead through LEED

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO As the Best Digital Bank for the third year in a row, UnionBank continues to ease digital processing WATER CONSUMPTION (303-5) 2019 and web-based transactions for safer, faster, more convenient, and more sustainable banking. This Sustainability Policy and Framework UnionBank 90,870 year’s 720,198 paperless transactions at UnionBank not only saved on material resources but also on

CitySavings 29,917 time and energy expended by our customers. We expect that the transition from a paper-dependent Sustainability At A Glance: Our 2019 Scorecard TOTAL 120,787 bank to a digital one will ultimately reduce our paper wastage, although the effects will be seen in the succeeding years. People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Managing Impacts to the Environment Enabling Capacities Through UB Xcellerator The LEED Advantage From Competencies to Capabilities Employee Experience: 1UHub 112 cubic meters saved annually TOTAL GHG EMISSIONS (UNIONBANK & CITYSAVINGS) Building a Retiree’s Nest (per 200sqm branch) (305-4) Safety and Health at Work 25,503.2 tCO2e Learning in the Digital Age Disaster Risk Reduction Given that the demand for water in the heavily populated metropolis is high, our employees are Employee Engagement GHG EMISSIONS (tCO e) SCOPE 1 (Direct) Scope 2 (Indirect) conscientious about water use and have been practicing conservation measures. Our maintenance 2 Employee Volunteerism UnionBank 399.68 12,100.80 GBC Milestones: A Look Back at 5 Years activities also ensure that there are no leaks that result in wastage. Water-saving measures for CitySavings Advocacies UnionBank, in particular, have been successful; we have managed to reduce water footprint to only CitySavings 10,842.42 2,160.30 44% of what it was five years ago, falling to 90,970 liters from 207,016 liters. TOTAL 11,242.10 14,261.10 Planet: Making the Choices that Matter (305-1,305-2) Materials and Resources Management Managing Impacts to the Environment * GHG emission levels were computed using the grid emission factors for the region from the Department of Energy Purpose: Tech Up Pilipinas MATERIALS RENEWABLE (NO. OF Non-renewable (no. CONSUMPTION (301-1) PAPER REAMS) ink toner cartridges) As a responsible corporate citizen, we seek to contribute to mitigating climate change impact by Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits UnionBank 38,523 10,514 monitoring our GHG emissions. We are currently working with our parent company, the Aboitiz Equity Customer Experience CitySavings 36,338 590 Ventures, for the standard formula that we will apply in our tracking program moving forward. Banking Customer Service on a changing world, UnionBank will continue to invest in technology and the knowledge systems to Information Security and Cyber Security TOTAL 74,861 11,104 Customer Privacy stay relevant, competitive, and future-proofed against the environmental risks shared by all.

Corporate Governance GRI INDEX ANNEX

40 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work Learning in the Digital Age Disaster Risk Reduction Employee Engagement Employee Volunteerism Many people ask about digital transformation. GBC Milestones: A Look Back at 5 Years We say it’s not about digital. It’s about people; CitySavings Advocacies it’s about the mind-set; it’s about culture. It’s Planet: Making the Choices that Matter Materials and Resources Management Elevating lives is not about values. And when you get that right, Managing Impacts to the Environment the technology becomes a true enabler, Purpose: Tech Up Pilipinas an after-thought when because most of what needs to be done using Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits designing products and technologies is not just about the knowledge Customer Experience of technology but how the technology can add Customer Service services; it is at the core Information Security and Cyber Security value to society and how that technology can Customer Privacy of the Bank’s strategy. be a real business case. Corporate Governance GRI INDEX ANNEX

41 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard Purpose: We dedicate ourselves to providing the most innovative services in banking so that we may continue to be a bank People Tech: of enduring greatness and to uplift the lives of our patrons and communities. We intend to take the country to the Building the Skills of the Future Today TECH UP Pilipinas next level by moving forward with purpose: “tech up” the Philippines and foster inclusive financial prosperity. Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Our goals are clear-cut: Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work Bring financial services Make financial products Reach out to the unbanked Learning in the Digital Age to the rural areas. accessible to more people. and underbanked. Disaster Risk Reduction

Employee Engagement Employee Volunteerism Financial inclusiveness In an emerging country like the UnionBank serves as a channel GBC Milestones: A Look Back at 5 Years means finding ways to Philippines, a financial product or through which the unbanked/ CitySavings Advocacies elevate the lives of fellow service becomes “inclusive” when underbanked can suggest how to Planet: Making the Choices that Matter men through banking and it can be accessed with the least build on the current products and Materials and Resources Management financial services. Since the cost. We invest in the technological services of the Company, even Managing Impacts to the Environment country is still predominantly infrastructure upon which our as subsidiaries such as UBX and unbanked, this remains as services and products are built, CitySavings provide the financial Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed one of the causes of poverty. and our offerings are meant to be inclusion delivery of the Bank. Banking Innovations with Social Benefits Remote locations in the readily usable by all kinds of end- Customer Experience country should be targeted for users. These products and services Customer Service Information Security and Cyber Security financial inclusivity, as access are made available not only in the Customer Privacy to technology remains limited metropolitan areas, but in the rural within these areas. provinces—so they don’t need to Corporate Governance GRI INDEX ANNEX play catch-up anymore.

42 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman Direct Economic Value Generated and Distributed (201-1) and the President & CEO We believe that wealth generation should not be the only focus; wealth distribution should also be a priority, Sustainability Policy and Framework in our bid for inclusive prosperity.

UnionBank is a Bank of enduring greatness because it extends the value of all kinds of capital: Sustainability At A Glance: DISCLOSURE AMOUNT IN THOUSAND PHP % Change Our 2019 Scorecard financial, human, and knowledge or intelligence capital, to name a few. Tech Up Pilipinas has Economic value generated (revenue and other income) 50,842,840 40% extended the bid for financial literacy to farmers (Tech Up Agri), Grab drivers (Grab-EON), and People Tech: Economic value distributed 36,839,330 25% teachers (Project Peraperasyon). Building the Skills of the Future Today Payments to employees Blueprint for Success: Agile Operating Model 8,070,248 41% Enabling Capacities Through UB Xcellerator Salaries and employee benefits From Competencies to Capabilities Payments to suppliers 7,889,254 7% Employee Experience: 1UHub Building a Retiree’s Nest Occupancy 962,275 13% Safety and Health at Work Depreciation and amortization 1,378,194 24% Learning in the Digital Age Miscellaneous (others) 5,548,785 2% Disaster Risk Reduction Employee Engagement Payments to capital providers 16,019,470 38% Employee Volunteerism Deposit liabilities 10,160,322 15% GBC Milestones: A Look Back at 5 Years Bills payable and other liabilities CitySavings Advocacies 5,859,148 110% Payments to government 4,830,068 6% Planet: Making the Choices that Matter Taxes and licenses 3,052,481 19% Materials and Resources Management Managing Impacts to the Environment PDIC + Supervision fees 1,283,093 32% Tax expense 494,494 -52% Purpose: Tech Up Pilipinas Payments to communities Direct Economic Value Generated and Distributed 30,290 -1% Banking Innovations with Social Benefits Donations Customer Experience Economic value retained 14,003,510 104% CitySavings, for its part, continues to fortify its commitment in advancing business and Customer Service communities to help create opportunities for financial inclusion and elevate the lives of its key Information Security and Cyber Security Customer Privacy stakeholders.

Corporate Governance GRI INDEX ANNEX

43 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman Banking Innovations with Social Benefits and the President & CEO UnionBank utilizes out-of-the-box thinking to design the products and services that are relevant to Institution, or Individual-to-Individual, the project hopes to address the gaps in financial Sustainability Policy and Framework customers today. Ever mindful that sustainability goes beyond the financial need to the ecological and accessibility by connecting rural banks and national commercial banks to the country’s main

systemic demand, UnionBank makes a point of designing products and services that go beyond business banking system. By doing so, citizens are able to gain better access to banking services, Sustainability At A Glance: Our 2019 Scorecard concerns to the underlying problem—be it financial illiteracy, inequity, or simply, lack of accessibility. and remote banks are able to integrate themselves into the domestic financial system. This feat was made possible through the partnership with ConsenSys Solution and the use of People Tech: blockchain technology. To date, 700 rural banks are members of i2i, linking the formerly Building the Skills of the Future Today Blueprint for Success: Agile Operating Model disconnected to the country’s financial network. Enabling Capacities Through UB Xcellerator From Competencies to Capabilities Employee Experience: 1UHub UBX Building a Retiree’s Nest Safety and Health at Work The first to embrace technological innovations to empower customers, UnionBank is leading a financial The Project Adhara Connection Learning in the Digital Age technology (FinTech) revolution by introducing innovations via wholly owned fintech platform UBX Disaster Risk Reduction Philippines Corp. Among the company’s financial inclusion instruments is the “mobile ATM,” which Building on the success of Project i2i, UnionBank partnered with the OCBC Bank, Employee Engagement allows rural banks and financial cooperatives across the country to easily access funds. UBX envisions Employee Volunteerism Singapore’s longest established bank to create a system that would enhance the overall GBC Milestones: A Look Back at 5 Years the removal of barriers to financial services by seamlessly blending them with everyday activities and capabilities in making international bank transfers. Using the Adhara liquidity management CitySavings Advocacies experiences—in this case, embedded in the mobile platform accessible to everyone with a phone. and international payments platform, UnionBank has become the first bank in the Planet: Making the Choices that Matter Philippines to successfully pilot blockchain-based remittance from Singapore to the Materials and Resources Management UBX already taps into the i2i network that includes LBC Express Inc., PeraHub operator Inc., and Cebuana Philippines. The successful pilot launch of this project has shown that faster, cheaper, and Managing Impacts to the Environment Lhuillier Services Corp., but the company will be extending its reach further by linking to other financial more accessible means to make international payment is possible, and that UnionBank institutions and outlets. Purpose: Tech Up Pilipinas can be the one to provide this service to the people. More importantly, it has shown how, Direct Economic Value Generated and Distributed through smart application of technologies, the goal of elevating lives and connecting Banking Innovations with Social Benefits i2i communities has become achievable. Customer Experience UnionBank believes that “no one should be left behind” but despite the fast-moving developments Customer Service in banking technology, around 35% of Filipinos remain unbanked, while 56% still do not have Information Security and Cyber Security Customer Privacy access to any form of financial services. Determined to address the problem, UnionBank launched Project i2i, an initiative serving the thousands of Filipinos who remain isolated from mainstream Corporate Governance payment networks and infrastructures. With “i2i” standing for Island-to-Island, Institution-to- GRI INDEX ANNEX

44 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO UnionBank GlobalLinker Customer Experience With the goal of boosting the capabilities and reach of local entrepreneurs, UnionBank has Sustainability Policy and Framework partnered with GlobalLinker, a digital platform that serves as a one-stop hub where entrepreneurs UnionBank places the customer at the heart of the Bank’s business model. Our process has been to

can run their businesses, promote their brand, products and services, and access essential map out the customer journey, identify key areas where clients experience challenges, and then come Sustainability At A Glance: Our 2019 Scorecard solutions—including financial assistance. GlobalLinker allows MSMEs to build and create online up with innovative solutions. We bring the user experience into the equation as a means of co-creating stores free of charge. With access to more than 10,000 content resources, a network of 40,000 SMEs solutions. People Tech: in the Philippines,270,000 SMEs, and 210 curated industries, it gives its members the opportunity Building the Skills of the Future Today Blueprint for Success: Agile Operating Model to build networks, deepen their supply chain, and gain access to overseas markets. Through this Our customers have been appreciative of our efforts. On our latest customer satisfaction survey—with Enabling Capacities Through UB Xcellerator resource, the project hopes to become a catalyst for creating a positive economic impact on the 37,482 respondents rating 210 branches, an unprecedented turnout—UnionBank’s overall rating is From Competencies to Capabilities country. 4.61, with 5 being the highest possible rating. Employee Experience: 1UHub Building a Retiree’s Nest Safety and Health at Work In essence, besides making it easier or business owners to open and maintain their own bank Learning in the Digital Age account, GlobalLinker also allows entrepreneurs to open a checking account for a minimum fee Disaster Risk Reduction of PhP 5,000. Having a checking account is a boost for the MSMEs, as it helps them gain more Employee Engagement credibility with investors, customers, and other businesses, and keep their accounting records Employee Volunteerism GBC Milestones: A Look Back at 5 Years accurate and organized. On top of this service, GlobalLinker also has bundled-in benefits such as CitySavings Advocacies specialized cost-cutting deals and exclusive offers from the hub’s partners

Planet: Making the Choices that Matter Materials and Resources Management API Platform + UnionBank Developer Portal Managing Impacts to the Environment UnionBank operates the largest application program interface (API) platform among local banks, intended to make online transactions (i.e., bill payments, checkouts, cash payouts, fund transfers, Purpose: Tech Up Pilipinas authentication, etc.) easier for corporate clients, SMEs, and retail clients. In 2019 alone, the platform Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits generated billions of pesos in transactions. The API platform is now open to external parties through the Luzon (137 branches) Visayas (26 branches) Mindanao (11 branches) Customer Experience UnionBank Developer Portal, an enhancement providing an extensive catalogue of APIs to choose from. Customer Service 4.65 Innovators can create highly customized APIs which can then be snapped up by the wide customer base 4.24 4.93 Information Security and Cyber Security Customer Privacy converging on the platform. UnionBank will continue to champion open banking by developing this UNIONBANK OVERALL SCORE (210 BRANCHES) medium further to accommodate more collaboration among Fintechs and other solution providers. 4.61 Corporate Governance GRI INDEX ANNEX

45 2019 Sustainability Report

About the Report

About UnionBank Meet Eve: The ARK’s new robot ambassador

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Information Security and Cyber Security

Sustainability Policy and Framework UnionBank aims to provide clients with a safe space where they can transact and interact with ease.

We develop and maintain robust and reliable systems to guard against cyber threats and security Sustainability At A Glance: Our 2019 Scorecard breaches.

People Tech: Data privacy and information security protocols are already in place to protect our customers’ private Building the Skills of the Future Today Blueprint for Success: Agile Operating Model information. The Bank is certified for the Payment Card Industry Data Security Standard (PCI DSS) Enabling Capacities Through UB Xcellerator version 3.2 (Year 2 PCI-DSS 3.22 Certification), which ensures that even more robust protection of From Competencies to Capabilities financial information is established against identity theft, fraudulent transactions, and other Employee Experience: 1UHub security threats. Building a Retiree’s Nest Safety and Health at Work Learning in the Digital Age Customer service reached a milestone at UnionBank in 2019 with the country’s first “robo ambassador,” UnionBank currently utilizes a security information and event management (SIEM) technology Disaster Risk Reduction dubbed Eve. The state-of-the-art robot functions as a customer service agent, with one Eve deployed system making the cyber environment and digital assets visible through centralizing relevant Employee Engagement data collection and analysis from multiple sources. The Bank also implements an enterprise fraud Employee Volunteerism at each of the four fully digital The ARK branches in Makati City. Currently, the friendly robot serves to GBC Milestones: A Look Back at 5 Years roll out the welcome wagon to visiting customers. Eventually, however, Eve will be programmed to be a management system combining data analytics and real-time alerts, further strengthening detection CitySavings Advocacies fully functional ARK ambassador. Functions would include instructing clients on how to use the self- and monitoring of customer transactions.

Planet: Making the Choices that Matter service machines, and how to register to UnionBank Online. As a bonus, Eve can also be programmed Materials and Resources Management to be both host and entertainer—the robot can pour your coffee and sing (or dance!) while doing it. We have operated our Integrated Operations Center (IOC), which acts as the frontline defense against Managing Impacts to the Environment cyber threat, since 2017.The facility, which houses the Bank’s security operations and business Recognized as the Philippines’ Best Digital Bank, UnionBank has been improving on The ARK model, intelligence hub, integrates all Information Technology-related operations, cybersecurity, and anti- Purpose: Tech Up Pilipinas fraud monitoring and risk management. The IOC was awarded the “Best Cybersecurity and IT Risk Direct Economic Value Generated and Distributed and in 2019 also launched “The ARK for Business.” The new ARK variant is designed for the convenience Banking Innovations with Social Benefits of business clients who may process large transactions on their own terms. These business clients may Management Initiative, Application, or Programme in the Philippines for 2018” by The Asian Banker. Customer Experience “pre-stage” their transactions through The Portal – UnionBank’s newest business banking platform, Customer Service which has a website and mobile version. Services include account viewing, fund transfers through We continue to invest in training and empowering UnionBankers to earn the necessary certifications Information Security and Cyber Security Customer Privacy multiple channels, and payments to government and utilities. Customers are also able to access to be effective cybersecurity champions and information security officers, among them Certified UnionBank’s blockchain-powered financial supply chain system within the platform. The ARK for Information Systems Auditors and Certified Ethical Hackers. Corporate Governance GRI INDEX ANNEX Business also offers a co-working space for clients who may need a temporary office.

46 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard

People Tech: Customer Privacy (103-1, 103-2, 103-3, 418-1) Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator UnionBank respects and values the customers’ right to privacy. We are compliant with all the From Competencies to Capabilities requirements mandated by law, as well as with the generally accepted global data protection Employee Experience: 1UHub standards and regulations. All systems and storage medium or repositories where our customers’ Building a Retiree’s Nest Safety and Health at Work personal data are stored have undergone the appropriate assessments required by law such as Privacy Learning in the Digital Age Impact Assessment, and Information Security, Risk, and Legal Assessments. Disaster Risk Reduction Employee Engagement UnionBank has adopted safeguards to secure our customers’ transactions on our online and mobile Employee Volunteerism GBC Milestones: A Look Back at 5 Years Selyado 2.0 platforms. The Bank ensures continued protection of personal information with our organizational, CitySavings Advocacies physical, and technical measures for data protection, including policies for evaluation, monitoring, and UnionBank, in cooperation with the National Association of Data Protection Officers of review of operations and security risks. Planet: Making the Choices that Matter the Philippines (NADPOP), held a data security executive forum and exhibit in October Materials and Resources Management 2019 to promote a culture of security and privacy consciousness. Dubbed Selyado 2.0, Managing Impacts to the Environment the event drew officials from the Bangko Sentral ng Pilipinas, the National Privacy In 2019, there were no substantiated complaints on customer privacy and loss of customer data. Commission and international thought leaders to discuss frameworks and initiatives in There were also no customers, users, and account-holders whose information was used for secondary Purpose: Tech Up Pilipinas protecting financial and personal data. The Bank’s top enterprise customers from various purposes. There were also no data breaches, including leaks thefts, and losses of data during the Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits industries and internal stakeholders attended the whole-day affair. reporting period. Customer Experience Customer Service Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

47 2019 Sustainability Report

About the Report Corporate Governance About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Good Governance Principles & Guides (102-16) The Bank has established strict laws and policies within the organization to ensure ethical business Sustainability Policy and Framework operations. All employees, management, suppliers, and representatives of the Bank are guided by our

principles and norms of behavior. The Bank also undergoes regular self-assessment based on the ASEAN Sustainability At A Glance: Our 2019 Scorecard Corporate Governance Scorecard and submits an Integrated Annual Corporate Governance Report (I-ACGR). People Tech: Building the Skills of the Future Today Blueprint for Success: Agile Operating Model UnionBank also aligns itself with the local and international standards for best practices. These include Enabling Capacities Through UB Xcellerator the guidelines provided by the Code of Corporate Governance issued by the Securities and Exchange From Competencies to Capabilities Commission, the Bangko Sentral ng Pilipinas Circular No. 969 or the Enhanced Corporate Governance Employee Experience: 1UHub Guidelines for BSP-Supervised Financial Institutions, and the internationally recognized Organization for Building a Retiree’s Nest Safety and Health at Work Economic Cooperation and Development (OECD) principles. Learning in the Digital Age Disaster Risk Reduction UnionBank is committed to leading with transparency and fairness through strong corporate governance. UnionBank Manuals Government Codes Governance Evaluation Mechanisms Employee Engagement The Bank is headed by inspiring leaders and change-makers who are dedicated to creating an organiza- Employee Volunteerism Revised Manual on Good Philippine Financial Reporting Internal Audit – investigates in GBC Milestones: A Look Back at 5 Years tion that is able to push for digital transformation in the Philippines, and contribute to the overall social Corporate Governance Standards 9 (FPRS 9) by the Banko aid of administrative or criminal CitySavings Advocacies and economic growth of the country. Sentral ng Pilipinas proceedings

Planet: Making the Choices that Matter External Audit – checks on whether Materials and Resources Management financial statements are fairly Managing Impacts to the Environment presented in accordance with Governance Structure (102-18) financial reporting standards Purpose: Tech Up Pilipinas The membership of the Board is made up of a combination of varying core competencies. As a whole, the Board Direct Economic Value Generated and Distributed Code of Conduct Sustainability Reporting Guidelines Privacy Impact Assessment - Banking Innovations with Social Benefits demonstrates integrity and adherence with the principles of good governance and accountability to ensure a high standard for Publicly Listed Companies by the manages confidentiality of client Customer Experience of governance and oversight. Individually, members have a spread of skills and experiences that work correspondingly with Securities and Exchange Commission information Customer Service each other. With the Bank’s on-going digital transformation, the Board ensures the security and privacy of the stakeholders’ Information Security and Cyber Security Ethical Standards and Information Security, Risk, and Customer Privacy information through laws and adhering to good governance principles. Governance Policies Legal Assessments – safeguards and secures customer transactions

Corporate Governance More information about our corporate governance practices are available on our website and our Annual Report. GRI INDEX ANNEX

48 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman POLICIES (102-18) and the President & CEO

Sustainability Policy and Framework

Sustainability At A Glance: Our 2019 Scorecard Anti-fraud and anti-theft Anti-money Laundering Anti-Corruption The Bank has invested on sophisticated controls to battle fraud and theft The Bank has been strictly practicing its anti-money laundering culture, UnionBank has zero tolerance for bribery and corruption, and strives People Tech: for its customers. Debit and Credit cards are protected from skimming with practices anchored on (1) compliance with the laws and regulations; to apply the highest standards of corporate ethics and professionalism Building the Skills of the Future Today Blueprint for Success: Agile Operating Model attacks thanks to the EMV chip technology. Aside from the cards, all (2) strict adherence to the know-your-customer (KYC process); (3) in the conduct of business. This zero tolerance approach also means Enabling Capacities Through UB Xcellerator UnionBank ATM machines are EMV- enabled and are equipped with anti- cooperation with law enforcement; (4) information dissemination the Bank is committed to the mitigation, deterrence and detection of From Competencies to Capabilities skimming devices as well, making it difficult for culprits to compromise and continuing education; and (5) implementation of its AML risk bribery, corruption and other unethical practices, by upholding the Employee Experience: 1UHub UnionBank machines and cards. Fraud activities on e-commerce are also management system. Members of the Board and the Bank’s Senior relevant laws on anti-bribery and corruption. Building a Retiree’s Nest Safety and Health at Work now protected as the Bank has completed its migration to 3D Secure Management adhere to the provisions of the AntiMoney Laundering Act Learning in the Digital Age protocol, in which a one time password SMS will be sent to the customer (AMLA) as amended, its Revised Implementing Rules and Regulations, The Board of Directors is ultimately responsible for the Bank’s Anti- Disaster Risk Reduction before an online transaction is completed. The mobile banking platform and its own Money Laundering and Terrorist Financing Prevention Bribery and Corruption Compliance Program, which covers prohibition Employee Engagement of the Bank offers another layer of protection from theft as it has facial Program (MLPP). of receipt of gifts, entertainment and benefits, vendor management, Employee Volunteerism GBC Milestones: A Look Back at 5 Years recognition and fingerprint validation. Plus, customers of the Eon brand whistleblowing, and other related activities. CitySavings Advocacies can lock and unlock their cards through the Eon app. The Bank also In the Bank’s cascading of the rules and regulations, employees— has a designated division to monitor and detect possible fraudulent including new hires—undergo the AMLA Training Program which consists All UnionBankers, as well as business partners (including contractors Planet: Making the Choices that Matter Materials and Resources Management activities on a 24/7 basis, thus providing both security and customer of: (1) an introductory course for new employees; (2) certification and suppliers), are obliged to undergo orientation and, if possible, Managing Impacts to the Environment confidence with our products program for critical branch personnel; (3) annual refresher course to training on anti-corruption policies and procedures. all branch employees; and (4) annual online learning course for all Purpose: Tech Up Pilipinas bank employees. The Bank takes its position in anti-money laundering Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits seriously by establishing the Anti-Money Laundering Act Committee Customer Experience (AMLACOM) to provide management oversight on the implementation Customer Service of existing AML risk management policies and procedures of the Bank. Information Security and Cyber Security Customer Privacy AMLACOM directly reports to the Corporate Governance Committee (CGC), which assists the board in fulfilling its responsibilities on money Corporate Governance laundering and terrorist financing prevention. GRI INDEX ANNEX

49 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman and the President & CEO Procurement Practices Training on Anti-corruption Policies and Procedures (205-2) The Bank is focused on embedding CSR and Sustainability practices in the procurement process Sustainability Policy and Framework through supply chain management, while assessing the impact of any service or product to the

Percentage of employees to whom the organization’s anti- people, environment, and society, whenever applicable. We patronize local as a way of contributing to Sustainability At A Glance: 100% Our 2019 Scorecard corruption policies and procedures have been communicated the local economy, with a significant percentage of our expenditures going to homegrown businesses. Percentage of business partners to whom the organization’s anti- People Tech: 100% corruption policies and procedures have been communicated PROPORTION OF SPENDING ON Building the Skills of the Future Today UnionBank CitySavings TOTAL LOCAL SUPPLIERS (204-1) Blueprint for Success: Agile Operating Model Percentage of directors and management that have received Enabling Capacities Through UB Xcellerator 100% anti-corruption training 5,708,500,000 1,118,232,829.02 6,826,732,830.00 From Competencies to Capabilities Total Procurement Budget Employee Experience: 1UHub 69% Percentage of employees that have received anti-corruption Building a Retiree’s Nest training Spent on local suppliers 2,313,458,000 1,017,667,292.27 3,331,125,292.27 Safety and Health at Work There were zero incidents in which directors and employees were dismissed or Learning in the Digital Age Percentage spend on Disaster Risk Reduction disciplined for corruption. There were also zero incidents when contracts with 41% 91% 48.82% local suppliers Employee Engagement business partners were terminated due to incidents of corruption. Employee Volunteerism GBC Milestones: A Look Back at 5 Years The Bank has a centralized approach to procurement for the management of resources and related CitySavings Advocacies Whistleblowing Policy (102-17) expenses. This is spearheaded by the General Services – Procurement Services Team, led by the Bank’s The Bank has invested on sophisticated controls to battle fraud and theft UnionBank upholds ethical, moral, Procurement Officer. We comply with regulatory requirements and adhere to internal policies, such as Planet: Making the Choices that Matter and legal business conduct with all stakeholders. The Bank does not tolerate violations to its policies and Materials and Resources Management the Procurement Guidelines, Outsourced Services Manual, Guidelines on Accreditation of Supplier and standards and so enforces the Whistleblowing Policy so that individuals may safely report on any malpractice. Managing Impacts to the Environment Service Providers and all related procedures. UnionBank ensures that whistleblowers do not fear retaliation, and that such concerns are treated seriously, Purpose: Tech Up Pilipinas appropriately, and with utmost confidentiality. UnionBank ensures that all suppliers meet the criteria on financial capability, quality, and has no Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits pending legal disputes. Further, the Bank is particular on the supplier’s or vendor’s adherence to The Bank allows reports from those who have established relationships with the Bank (i.e., employees, Customer Experience ethical practices on labor, product sourcing, and supply chain management. Customer Service business, partners, investors, and customers) on the following activities: Information Security and Cyber Security • Unlawful activity Aligned with industry best practices, all business units must comply with procurement procedures. Customer Privacy • Fraud • Corruption These are reviewed by the Outsourced Services Management Committee. While their focus is on Corporate Governance outsourced services, the Committee also reviews the status of suppliers for commodities. (103-3) GRI INDEX ANNEX • Violation of policies and agreements including the Bank’s Code of Conduct

50 2019 Sustainability Report

About the Report Annex I - Employment About UnionBank

Scope and Materiality of the Report

WORKFORCE 2019 102-8, 405-1 By Employee Contract Joint Message of the Chairman and the President & CEO UNIONBANK CITYSAVINGS TOTAL EMPLOYEE COUNT Permanent 3,291 93% 1,580 96% 3,525 1,649 5,174 Probationary 234 7% 69 4% Sustainability Policy and Framework AT A GLANCE (2019) Sustainability At A Glance: By Location HISTORICAL VIEW (2015-2019) Our 2019 Scorecard UNIONBANK CITYSAVINGS UnionBank People Tech: Head Office 1,740 284 Gender distribution 2015 2016 2017 2018 2019 Building the Skills of the Future Today Blueprint for Success: Agile Operating Model Branches 1,785 1,365 Male 1,045 1,166 1,313 1,350 1,342 Enabling Capacities Through UB Xcellerator Regional distribution Head Office 574 627 727 762 790 From Competencies to Capabilities Luzon 3,042 1,046 Branches 471 539 586 588 552 Employee Experience: 1UHub Building a Retiree’s Nest Visayas 317 416 Female 1,708 1,876 2,174 2,250 2,183 Safety and Health at Work Mindanao 166 187 Head Office 747 844 967 962 950 Learning in the Digital Age Disaster Risk Reduction By Gender Branches 961 1,032 1,207 1,288 1,233 Employee Engagement Male to Female Ratio 1:6 1:7 Total 2,753 3,042 3,487 3,600 3,525 Employee Volunteerism GBC Milestones: A Look Back at 5 Years Total 3,525 % of Total 1,649 % of Total CitySavings CitySavings Advocacies Female 2,183 62% 698 42% Gender distribution 2015 2016 2017 2018 2019 Male 1,342 38% 951 58% Planet: Making the Choices that Matter Male 546 590 747 651 951 Materials and Resources Management By Age Head Office 116 118 126 105 137 Managing Impacts to the Environment < 30 years old 1,204 34% 642 39% Branches 430 472 495 546 814 Purpose: Tech Up Pilipinas 30-50 years old 2,025 58% 967 59% Female 451 474 493 518 698 Direct Economic Value Generated and Distributed > 50 years old 296 8% 40 2% Banking Innovations with Social Benefits Head Office 99 108 122 99 147 By Category/Rank Customer Experience Branches 352 366 371 419 551 Customer Service AVPs and up 224 6% 37 2.24 % Information Security and Cyber Security Total 997 1,064 1,114 1,169 1,649 Customer Privacy Managers 1,395 40% 218 13.22% Supervisors 1.164 33% 436 26.44% Corporate Governance GRI INDEX ANNEX Rank and File 742 21% 958 58.10%

51 2019 Sustainability Report

About the Report Annex I - Employment

About UnionBank UnionBank UnionBank

Employee Category 2015 2016 2017 2018 2019 Age distribution 2015 2016 2017 2018 2019 Scope and Materiality of the Report AVPs and Up 130 156 173 219 224 Below 30 years old 847 1,017 1,316 1,290 1,204 Joint Message of the Chairman Head Office 109 133 147 185 188 Head Office 477 578 709 629 585 and the President & CEO Branches 21 23 26 34 36 Branches 370 439 607 661 619 Sustainability Policy and Framework Managers 854 1,109 1,273 1,348 1,395 30-50 years old 1,657 1,796 1,931 2,032 2,025

Head Office 391 534 620 676 713 Head Office 707 768 855 960 1,014 Sustainability At A Glance: Our 2019 Scorecard Branches 463 575 653 672 682 Branches 950 1,028 1,076 1,072 1,011 Supervisors 1,003 1,036 1,227 1,236 1,164 Over 50 years old 249 229 240 278 296 People Tech: Building the Skills of the Future Today Head Office 600 619 733 687 668 Head Office 137 125 130 135 141 Blueprint for Success: Agile Operating Model Branches 403 417 494 549 496 Branches 112 104 110 143 155 Enabling Capacities Through UB Xcellerator Rank and File 766 741 814 797 742 Total 2,753 3,042 3,487 3,600 3,525 From Competencies to Capabilities Employee Experience: 1UHub Head Office 221 185 194 176 171 CitySavings Building a Retiree’s Nest Branches 545 556 620 621 571 Safety and Health at Work Age distribution 2015 2016 2017 2018 2019 Total 2,753 3,042 3,487 3,600 3,525 Learning in the Digital Age Below 30 years old 252 314 365 422 642 Disaster Risk Reduction CitySavings Employee Engagement Head Office 58 70 88 98 168 Employee Category Employee Volunteerism 2015 2016 2017 2018 2019 Branches 194 244 277 324 474 GBC Milestones: A Look Back at 5 Years AVPs and Up 17 20 20 26 37 30-50 years old 705 713 713 713 967 CitySavings Advocacies Head Office 17 20 20 23 32 Head Office 138 135 139 138 175 Planet: Making the Choices that Matter Branches - - - 3 5 Branches 567 578 574 575 792 Materials and Resources Management Managers 154 157 171 192 218 Managing Impacts to the Environment Over 50 years old 40 37 36 34 40 Head Office 46 52 67 74 89 Head Office 19 21 21 21 24 Purpose: Tech Up Pilipinas Branches 108 105 104 118 129 Branches 21 16 15 13 16 Direct Economic Value Generated and Distributed Banking Innovations with Social Benefits Supervisors 244 271 279 284 436 Total 997 1,064 1,114 1,169 1,649 Customer Experience Head Office 73 74 77 81 94 Customer Service Branches 171 197 202 203 342 Information Security and Cyber Security Customer Privacy Rank and File 582 616 644 667 958 Head Office 79 80 84 79 141 Corporate Governance GRI INDEX ANNEX Branches 503 536 560 588 817

Total 997 1,064 1,114 1,169 1,649 52 2019 Sustainability Report

About the Report Annex I - Employment

About UnionBank

Scope and Materiality of the Report

EMPLOYEE NEW HIRES 401-1 Joint Message of the Chairman UnionBank and the President & CEO UnionBank Employment Contract 2015 2016 2017 2018 2019 Sustainability Policy and Framework Permanent 2,601 2,728 3,140 3,339 3,291 Regional Distribution 2015 2016 2017 2018 2019

Head Office 1,228 1,297 1,551 1,593 1,618 Luzon 239 459 783 502 322 Sustainability At A Glance: Our 2019 Scorecard Branches 1,373 1,431 1,589 1,746 1,673 Head Office 155 300 457 346 209 Probationary 152 314 347 261 234 Branches 84 159 326 156 113 People Tech: Building the Skills of the Future Today Head Office 93 174 143 131 122 Visayas 10 30 56 25 18 Blueprint for Success: Agile Operating Model Branches 59 140 204 130 112 Branches 10 30 56 25 18 Enabling Capacities Through UB Xcellerator Total 2,753 3,042 3,487 3,600 3,525 Mindanao 5 18 20 11 5 From Competencies to Capabilities Employee Experience: 1UHub CitySavings Branches 5 18 20 11 5 Building a Retiree’s Nest Employment Contract 2015 2016 2017 2018 2019 Total 254 507 859 538 345 Safety and Health at Work Learning in the Digital Age Permanent 924 970 1,053 1,106 1,580 CitySavings Disaster Risk Reduction Head Office 207 208 232 244 380 Employee Engagement Regional Distribution 2015 2016 2017 2018 2019 Branches 717 762 821 862 1,200 Employee Volunteerism Luzon 185 103 82 64 72 GBC Milestones: A Look Back at 5 Years Probationary 73 94 61 63 69 CitySavings Advocacies Head Office 13 17 23 16 43 Head Office 12 18 14 13 19 Branches 172 86 59 48 29 Planet: Making the Choices that Matter Branches 61 76 47 50 50 Visayas 44 28 41 34 16 Materials and Resources Management Total 997 1,064 1,114 1,169 1,649 Managing Impacts to the Environment Head Office 42 19 22 17 4 Branches 2 9 19 17 12 Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed Mindanao 36 52 33 26 14 Banking Innovations with Social Benefits Head Office - - - - - Customer Experience Customer Service Branches 36 52 33 26 14 Information Security and Cyber Security Total 265 183 156 124 102 Customer Privacy

Corporate Governance GRI INDEX ANNEX

53 2019 Sustainability Report

About the Report Annex I - Employment About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman UnionBank UnionBank and the President & CEO Gender Distribution 2015 2016 2017 2018 2019 Age Distribution 2015 2016 2017 2018 2019 Sustainability Policy and Framework Male 82 213 312 229 152 Below 30 years old 205 379 639 371 233

Sustainability At A Glance: Head Office 50 128 182 161 101 Head Office 123 214 318 216 122 Our 2019 Scorecard Branches 32 85 130 68 51 Branches 82 165 321 155 111

People Tech: Female 172 294 547 309 193 30-50 years old 48 126 217 165 110 Building the Skills of the Future Today Head Office 105 172 275 185 108 Head Office 31 84 137 128 86 Blueprint for Success: Agile Operating Model Branches 67 122 272 124 85 Branches 17 42 80 37 24 Enabling Capacities Through UB Xcellerator From Competencies to Capabilities TOTAL 254 507 859 538 345 Over 50 years old 1 2 3 2 2 Employee Experience: 1UHub CitySavings Head Office 1 2 2 2 1 Building a Retiree’s Nest Branches - - 1 - 1 Safety and Health at Work Gender Distribution 2015 2016 2017 2018 2019 Learning in the Digital Age TOTAL 254 507 859 538 345 Male 125 109 108 69 62 Disaster Risk Reduction Employee Engagement Head Office 25 15 24 21 22 CitySavings Employee Volunteerism Branches 100 94 84 48 40 Age Distribution 2015 2016 2017 2018 2019 GBC Milestones: A Look Back at 5 Years CitySavings Advocacies Female 140 74 48 55 40 Below 30 years old 178 145 112 94 71

Head Office 31 21 22 12 26 Head Office 39 27 34 25 28 Planet: Making the Choices that Matter Materials and Resources Management Branches 109 53 26 43 14 Branches 139 118 78 69 43 Managing Impacts to the Environment TOTAL 265 183 156 124 102 30-50 years old 85 36 42 29 25

Purpose: Tech Up Pilipinas Head Office 14 8 10 8 12 Direct Economic Value Generated and Distributed Branches 71 28 32 21 13 Banking Innovations with Social Benefits Over 50 years old 2 2 2 1 6 Customer Experience Customer Service Head Office 2 2 2 6 Information Security and Cyber Security Branches - - - 1 - Customer Privacy TOTAL 265 183 156 124 102 Corporate Governance GRI INDEX ANNEX

54 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman EMPLOYEE TURNOVER 401-1 and the President & CEO UnionBank UnionBank

Sustainability Policy and Framework Regional Distribution 2015 2016 2017 2018 2019 Gender Distribution 2015 2016 2017 2018 2019

Luzon 199 243 374 370 417 Sustainability At A Glance: Male 86 117 171 187 175 Our 2019 Scorecard Head Office 131 145 206 225 251 Head Office 52 64 80 105 105 Branches 68 98 168 145 166 People Tech: Branches 34 53 91 82 70 Building the Skills of the Future Today Visayas 16 14 24 24 32 Female 148 148 243 219 288 Blueprint for Success: Agile Operating Model Branches 16 14 24 24 32 Head Office 79 81 126 120 146 Enabling Capacities Through UB Xcellerator Mindanao 19 8 16 12 14 From Competencies to Capabilities Branches 69 67 117 99 142 Employee Experience: 1UHub Branches 19 8 16 12 14 TOTAL 234 265 414 406 463 Building a Retiree’s Nest Total 234 265 414 406 463 Safety and Health at Work CitySavings Learning in the Digital Age CitySavings Gender Distribution 2015 2016 2017 2018 2019 Disaster Risk Reduction Employee Engagement Regional Distribution 2015 2016 2017 2018 2019 Male 31 66 78 41 65 Employee Volunteerism Luzon 32 77 56 40 52 Head Office 11 11 17 16 25 GBC Milestones: A Look Back at 5 Years CitySavings Advocacies Head Office 11 15 8 13 15 Branches 20 55 61 25 40 Branches 21 62 48 27 37 Female 28 50 28 27 48 Planet: Making the Choices that Matter Materials and Resources Management Visayas 23 25 40 17 42 Head Office 12 14 10 9 20 Managing Impacts to the Environment Head Office 14 10 19 11 30 Branches 16 36 18 18 28 Branches 9 15 21 6 12 Purpose: Tech Up Pilipinas TOTAL 59 116 106 68 113 Direct Economic Value Generated and Distributed Mindanao 4 14 10 11 19 Banking Innovations with Social Benefits Head Office - - - - - Customer Experience Customer Service Branches 4 14 10 11 19 Information Security and Cyber Security Total 59 116 106 68 113 Customer Privacy

Corporate Governance GRI INDEX ANNEX

55 2019 Sustainability Report

About the Report

About UnionBank OCCUPATIONAL HEALTH AND SAFETY 403-2 Scope and Materiality of the Report UnionBank UnionBank Joint Message of the Chairman Age Distribution 2015 2016 2017 2018 2019 INJURY PYRAMID 2019 and the President & CEO Below 30 years old 106 119 190 198 233 Fatality 0 Sustainability Policy and Framework Head Office 67 73 97 108 123 Lost Time Incidents (LTI) 0 Restricted Work Case (RWC) 0 Sustainability At A Glance: Branches 39 46 93 90 110 Our 2019 Scorecard 30-50 years old 111 118 197 172 194 Medical Treatment Case (MTC) 0 Head Office 55 57 94 94 109 First Aid Case 0 People Tech: Building the Skills of the Future Today Branches 56 61 103 78 85 OTHER STATISTICS 2019 Blueprint for Success: Agile Operating Model Over 50 years old 17 28 27 36 36 Total number of employees 3,525 Enabling Capacities Through UB Xcellerator Head Office 9 15 15 23 19 From Competencies to Capabilities Number of employees who are members of the Health & 8* Employee Experience: 1UHub Branches 8 13 12 13 17 Safety Committee Building a Retiree’s Nest TOTAL 234 265 414 406 463 Safety and Health at Work Percentage of Employees under Health & Safety Committee 0.227% Learning in the Digital Age CitySavings Total work hours 7,394,688 Disaster Risk Reduction Employee Engagement Age Distribution 2015 2016 2017 2018 2019 Total lost days 0 Employee Volunteerism *-Number represents central committee only. The Bank is in the process of training one employee per Branch, to be part of the Health & Below 30 years old 27 77 46 34 57 Safety Committee. GBC Milestones: A Look Back at 5 Years CitySavings Advocacies Head Office 11 18 16 15 26 TYPES OF INJURY AND RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS, 403-1 AND ABSENTEEISM, AND NUMBER OF WORK-RELATED FATALITIES Branches 16 59 30 19 31 Planet: Making the Choices that Matter CitySavings Materials and Resources Management 30-50 years old 29 34 59 31 52 INJURY PYRAMID No. of reported cases Managing Impacts to the Environment Head Office 9 5 10 7 16 Minor wounds/injuries 6 Branches 20 29 49 24 36 Purpose: Tech Up Pilipinas Hypersensitivity reaction 13 Direct Economic Value Generated and Distributed Over 50 years old 3 5 1 3 4 Musculoskeletal strain 0 Banking Innovations with Social Benefits Head Office 2 2 1 3 3 Customer Experience Tension headaches 8 Customer Service Branches 1 3 - - 1 Others 2 Information Security and Cyber Security TOTAL 59 116 106 68 113 Customer Privacy Total lost days: 48 Notes: The above rates were computed by taking the applicable data (i.e. number of reported cases of injuries, lost days, and occupational diseases) and multiplying it to the International Labor Organization’s base figure (200,000) relative to the total hours worked. In order to arrive Corporate Governance at an estimated figure for total man-hours, we referred to the National Wages and Productivity Commission of the Department of Labor and GRI INDEX ANNEX Employment’s publication titled “Formulae on the Computation of the Equivalent Monthly Minimum Wage Rates.”

56 2019 Sustainability Report

About the Report

About UnionBank

Scope and Materiality of the Report

Joint Message of the Chairman TRAINING AND EDUCATION 404-1 Annex II - Materials and Resources Management and the President & CEO UnionBank Average 16.21 THE LEED ADVANTAGE 302-1, 303-5 Sustainability Policy and Framework By Gender BUILDING TYPE POWER CONSUMPTION (kWh) WATER CONSUMPTION

Male 14.25 Non-LEED 28,086 233 Sustainability At A Glance: Our 2019 Scorecard Female 17.40 LEED 10,565 121 By Employment Category Variance 17,521 112 People Tech: Building the Skills of the Future Today Senior Management 13.34 Total 56,172 466 Blueprint for Success: Agile Operating Model Middle Management 16.48 Enabling Capacities Through UB Xcellerator Supervisor 19.09 From Competencies to Capabilities Employee Experience: 1UHub Rank-and-File 11.90 Building a Retiree’s Nest Safety and Health at Work CitySavings Average 25.47 Learning in the Digital Age By Gender Disaster Risk Reduction Employee Engagement Male 22.93 Employee Volunteerism Female 28.00 GBC Milestones: A Look Back at 5 Years CitySavings Advocacies By Employment Category Senior Management 11.16 AVP and up* Planet: Making the Choices that Matter Middle Management 26.92 OA-SM* Materials and Resources Management Managing Impacts to the Environment Supervisor n/a Rank-and-File 25.04 RF (Union & Confi)* Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed *Classifcation by CitySavings Banking Innovations with Social Benefits Customer Experience Customer Service Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

57 2019 Sustainability Report

About the Report GRI Content Index (102-55)

About UnionBank

Scope and Materiality of the Report UNIVERSAL STANDARDS

Joint Message of the Chairman GRI 101: FOUNDATION 2016 and the President & CEO GRI 102: GENERAL DISCLOSURES 2016

GRI STANDARD DISCLOSURE NUMBER DISCLOSURE TITLE PAGE NUMBER DIRECT ANSWER/ STATEMENT OF OMISSION Sustainability Policy and Framework 102-1 Name of the organization 2

Sustainability At A Glance: 102-2 Activities, brands, products, and services 8 Our 2019 Scorecard 102-3 Location of headquarters 2

102-4 Location of operations 5 People Tech: 102-5 Ownership and legal form 4 Building the Skills of the Future Today 102-6 Markets served 4 Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator 102-7 Scale of the organization 5 102-8 Information on employees and other workers 5,12, 24, 51 From Competencies to Capabilities ORGANIZATIONAL PROFILE Employee Experience: 1UHub UnionBank supports local enterprises and local populations to honor the mutually beneficial relationship we have with our host community. Our branch network is designed to encourage 102-9 Supply chain Building a Retiree’s Nest banking locally. We also do our part by investing in the local market, through our suppliers, and Safety and Health at Work through our championship of small and medium enterprises (SMEs). Learning in the Digital Age 102-10 Significant changes to the organization There were no significant changes to the organization for the reporting period. Disaster Risk Reduction 102-11 Precautionary principle or approach 8

Employee Engagement 102-12 External initiatives 6, 19

Employee Volunteerism 102-13 Membership of associations 6

GBC Milestones: A Look Back at 5 Years 102-14 Statement from senior decision-maker 14 CitySavings Advocacies 102-16 Values, principles, standards, and norms of behavior 7

Planet: Making the Choices that Matter 102-18 Governance structure 48 Materials and Resources Management The Board will tackle the new mandate of Bangko Sentral ng Pilipinas, whereby it seeks to GOVERNANCE 102-30 Effectiveness of risk management processes integrate the Sustainable Finance Policy from Board agenda to the bank’s performance appraisal. Managing Impacts to the Environment UnionBank will provide more details in the next report.

102-32 Highest governance body’s role in sustainability reporting 18 Purpose: Tech Up Pilipinas Direct Economic Value Generated and Distributed 102-40 List of stakeholder groups 9-10 Banking Innovations with Social Benefits UnionBank Employees’ Association (UBEA) is the recognized association of the employees Customer Experience 102-41 Collective bargaining agreements 24 comprising 670 members. The Bank has collective bargaining agreement with UBEA and is Customer Service subject for renewal every 5 years (economic and political) and every 3 years (economic). STAKEHOLDER ENGAGEMENT Information Security and Cyber Security 102-42 Identifying and selecting stakeholders 9 Customer Privacy 102-43 Approach to stakeholder engagement 9-10

Corporate Governance 102-44 Key topics and concerns raised 9-10 GRI INDEX ANNEX

58 2019 Sustainability Report

About the Report GRI STANDARD DISCLOSURE NUMBER DISCLOSURE TITLE PAGE NUMBER DIRECT ANSWER/ STATEMENT OF OMISSION About UnionBank 102-45 Entities included in the consolidated financial statements 2

Scope and Materiality of the Report Report content is limited to data from UnionBank and subsidiary CitySavings. Each material 102-46 Defining report content and topic Boundaries 9 topic’s boundary falls within the organization, except for the following topics whose boundary extends outside the organization: 203 (Indirect Economic Impacts) and 413 (Local Communities).

Joint Message of the Chairman 102-47 List of material topics 11-13 and the President & CEO Statistical employee and other corporate data previously reported in the 2018 ASR have been recomputed to include CitySavings data (both Head office and branch network figures), for 102-48 Restatements of information a more complete picture of our impacts. Sustainability Scorecard figures pertaining to 2018 Sustainability Policy and Framework outcomes follow this same principle.

This 2019, we included the SEC Sustainability Reporting Guidelines for Publicly Listed Companies Sustainability At A Glance: in our reporting framework, alongside the GRI Standards. As has been our practice every year 102-49 Changes in reporting since we started reporting, UnionBank conducted a materiality assessment and reported on the Our 2019 Scorecard material topics that were considered most significant. There is a slight variance in material topics REPORTING PRACTICEEREP as we only reported on the highest ranked for the period. People Tech: Building the Skills of the Future Today 102-50 Reporting period 2

Blueprint for Success: Agile Operating Model 102-51 Date of most recent report 2 Enabling Capacities Through UB Xcellerator 102-52 Reporting cycle 2 From Competencies to Capabilities Employee Experience: 1UHub 102-53 Contact point for questions regarding the report 2 Building a Retiree’s Nest 102-54 Claims of reporting in accordance with the GRI Standards 2 Safety and Health at Work Learning in the Digital Age 102-55 GRI content index 58-60

Disaster Risk Reduction 102-56 External assurance This report did not undergo external assurance. Employee Engagement GRI 200 ECONOMIC STANDARD SERIES 2016 Employee Volunteerism GBC Milestones: A Look Back at 5 Years 103-1 Explanation of the material topic and its Boundary 12-13

CitySavings Advocacies GRI 103: MANAGEMENT APPROACH 103-2 The management approach and its components 13 2016

Planet: Making the Choices that Matter 103-3 Evaluation of the management approach 13 Materials and Resources Management GRI 201: ECONOMIC PERFORMANCE 201-1 Direct economic value generated and distributed 43 2016 Managing Impacts to the Environment 203-1 Infrastructure investments and services supported 31, 33 GRI 203: INDIRECT ECONOMIC IMPACTS 2016 Purpose: Tech Up Pilipinas 203-2 Significant indirect economic impacts 31, 33, 34, 35

Direct Economic Value Generated and Distributed GRI 204: PROCUREMENT PRACTICES 204-1 Proportion of spending on local suppliers 50 Banking Innovations with Social Benefits 2016 GRI 205: 205-2 Communication and training about anti-corruption policies and procedures 50 Customer Experience ANTI-CORRUPTION 2016 Customer Service Information Security and Cyber Security Customer Privacy

Corporate Governance GRI INDEX ANNEX

59 2019 Sustainability Report

About the Report

GRI STANDARD DISCLOSURE NUMBER DISCLOSURE TITLE PAGE NUMBER DIRECT ANSWER/ STATEMENT OF OMISSION About UnionBank GRI 300: ENVIRONMENTAL STANDARDS SERIES 2016

Scope and Materiality of the Report 103-1 Explanation of the material topic and its Boundary 13 GRI 103: MANAGEMENT APPROACH 103-2 The management approach and its components 13 2016 Joint Message of the Chairman and the President & CEO 103-3 Evaluation of the management approach 13

GRI 301: MATERIALS 2016 301-1 Materials used by weight or volume 40 Sustainability Policy and Framework 302-1 Energy consumption within the organization 39, 57 GRI 302: ENERGY 2016 Sustainability At A Glance: 305-1 Direct (Scope 1) GHG emissions 40

Our 2019 Scorecard GRI 305: EMISSIONS 2016 305-2 Energy indirect (Scope 2) GHG emissions 40

People Tech: 305-4 GHG emissions intensity 40 GRI 307: ENVIRONMENTAL Building the Skills of the Future Today 307-1 Non-compliance with environment laws and regulations There were no incidents of non-compliance with environmental laws and regulations. COMPLIANCE 2016 Blueprint for Success: Agile Operating Model Enabling Capacities Through UB Xcellerator GRI 300: ENVIRONMENTAL STANDARDS SERIES 2018 From Competencies to Capabilities GRI 303: WATER 2016 303-5 Water consumption 40, 57 Employee Experience: 1UHub Building a Retiree’s Nest GRI 400: SOCIAL STANDARDS SERIES 2018 Safety and Health at Work Learning in the Digital Age 103-1 Explanation of the material topic and its Boundary 12, 22 GRI 103: MANAGEMENT APPROACH Disaster Risk Reduction 103-2 The management approach and its components 12, 22 2016 Employee Engagement Employee Volunteerism 103-3 Evaluation of the management approach 12

GBC Milestones: A Look Back at 5 Years 401-1 New employee hires and employee turnover 24, 53-56 GRI 401: EMPLOYMENT 2016 CitySavings Advocacies Benefits provided to full-time employees that are not provided to temporary 401-2 27 or part-time employees GRI 403: OCCUPATIONAL HEALTH Types of injury and rates of injury, occupational diseases, lost days, an 403-2 28, 56 Planet: Making the Choices that Matter AND SAFETY 2016 absenteeism, and number of work-related fatalities Materials and Resources Management GRI 404: TRAINING AND EDUCATION 404-1 Average training hours 29, 57 2016 Managing Impacts to the Environment GRI 405: DIVERSITY AND EQUAL 405-1 Diversity of governance bodies and employees 24, 51 OPPORTUNITY 2016 Operations with local community engagement, impact assessments and Purpose: Tech Up Pilipinas GRI 413: LOCAL COMMUNITIES 2016 413-1 26, 31, 33, 34, 35 development programs Direct Economic Value Generated and Distributed GRI 416:CUSTOMER HEALTH AND Incidents of non-compliance concerning the health and safety impacts of There were no incidents on non-compliance concerning the health and safety impacts of 416-2 Banking Innovations with Social Benefits SAFETY 2016 products and services products and services. GRI: 417: MARKETING AND LABELING 417-3 Incidents of non-compliance concerning marketing communications There were no incidents on non-compliance concerning marketing communications. Customer Experience 2016 Substantiated complaints concerning breaches of customer privacy and loss Customer Service GRI 418: CUSTOMER PRIVACY 2016 418-1 47 of customer data Information Security and Cyber Security GRI 419: SOCIOECONOMIC Non-compliance with laws and regulations in the social and economic There were no incidents of non-compliance with laws and regulations in the social and economic 419-1 Customer Privacy COMPLIANCE 2016 arena arena.

Corporate Governance GRI INDEX ANNEX This report has been prepared by Drink Sustainability Communications

60 2019 SUSTAINABILITY REPORT