Fueling the power of connectedness
Building the information and data highway for the Philippines towards unlocking new opportunities, creating new possibilities and redefining experiences for Filipinos.
The combined synergies of human minds have unparalleled potential. We envision to create infrastructure and services that leverage the collective power of technology to galvanize economic progress and collective success. We see Globe’s digital and internet services as enablers of personal and social fulfillment that strive to unlock innovative solutions to create a shared value story for Globe’s customers, the nation and the planet.
You may access and download this Integrated Report through this QR Code.
Meanwhile, Globe’s 2019 Audited Consolidated Financial Statements released and filed to relevant regulators on February 27, 2020, may be accessed from www.globe.com.ph.
For further information regarding this Integrated Report, please contact [email protected] or [email protected].
2 Fueling the power of connectedness Contents
4 Business Overview About Globe Conglomerate Map Globe Presence 2019 at a Glance 2019 Awards and Recognition About this Report 18 Leadership Message from the Chairman Message from the President Corporate Governance Board of Directors Risk Management Management Discussion & Analysis 82 Strategy Strategy Map Stakeholder Engagement Materiality How Globe Creates Value 94 Capitals Financial Manufactured Intellectual Human Social and Relationship Natural 164 Statutory Reports Certificates of Compliance Board Committee Reports External Assurance Statement Audited Financial Statements Overview
3 Globe Telecom 2019 Integrated Report Business Overview
4 Fueling the power of connectedness 5 Globe Telecom 2019 Integrated Report About Globe Telecom, Inc.
Globe Telecom, Inc. (“Globe” or the “company”) is a leading Globe keeps Filipinos connected wherever they may be in full-service telecommunications company in the Philippines the world, through its tie-up with 776 roaming partners in 237 and is listed in the Philippine Stock Exchange under ticker calling destinations worldwide. symbol GLO. The company serves the telecommunications and technology needs of consumers and businesses across Its principals are Ayala Corporation and Singapore Telecom, an entire suite of products and services including mobile, both acknowledged industry leaders in the country and in fixed, broadband, data connectivity, internet and managed the region. services. It has major interests in financial technology, digital marketing solutions, venture capital funding for startups, and In 2019, Globe became a signatory to the United Nations virtual healthcare. Global Compact, committing to implement universal sustainability principles. Supported by over 8,000 employees and over 1.2 million retailers, distributors, and business partners nationwide, The company’s headquarters is located at The Globe Tower, the company currently has 94.2 million mobile subscribers, 32nd Street corner 7th Avenue, Bonifacio Global City, Taguig both prepaid and postpaid, and more than 2 million home City 1634, Metro Manila, Philippines. For more information, broadband customers. visit www.globe.com.ph.
Follow @enjoyglobe on Facebook, Twitter, Instagram and YouTube.
Vision Mission We see a Philippines where families’ We create wonderful experiences for dreams come true, businesses flourish people to have choices, overcome and the nation is admired. challenges and discover new ways to enjoy life.
Values We put customers first. We value people together, we make the difference. We act with integrity. We care like an owner. We keep things simple. We move fast, we are better, everyday.
6 Fueling the power of connectedness Circle of Happiness EMPLOYEES are empowered and find meaning in work.
CUSTOMERS are special and valued.
SHAREHOLDERS are confident and rewarded.
7 Globe Telecom 2019 Integrated Report Conglomerate Map
The Globe Group
GLOBE TELECOM, INC
INNOVE 100% TechnoGlobal1 49% ASTICOM 100%
GTIBH 100% Globetel European Limited GTI Corp. GTHK Globetel Singapore 100% 100% 100% 100%
UKGT3 100%
GMI3 100%
GIEE2 GTowers6 100% 100%
Kickstart 100% Flipside5 40%
Globe Capital Venture Holdings, Inc. Adspark Holdings Konsulta1 Globe Fintech4 100% 100% 50% 46%
Adspark Inc. Fuse4 100% 100%
Socialytics G-Xchange, Inc.4 7 Yondu 70% 100% 100%
Bayantel 98.58% RCPI TelicPhil6 Sky Internet Globetel-Japan NLI 91% 58% 100% 100% 70.38% Taodharma 67%
VTI1 50%
BAHC1 50%
BHC1 50%
EC Pay7 77% 1Accounted for as Joint Ventures 2Liquidated in 2019 BMPL1 3Liquidated in 2018 4Deconsolidated in 2017 due to loss of control 10% (Accounted as Joint Ventures) 5Ceased Operation 6Incorporated in 2018 7Consolidated in 2019 8 Fueling the power of connectedness The 2019 consolidated financial statements include the accounts of Globe Telecom and the following subsidiaries:
Parent Company’s Name of Place of Principal percentage of Subsidiary Incorporation Activity Ownership 2019 2018 Subsidiaries Innove Philippines Wireline voice and data communication services 100% 100% GTI Philippines Holding company 100% 100% GTIC United States Wireless and data communication services 100% 100% GTHK Hong Kong Marketing and distributing company 100% 100% GTSG Singapore Wireless and data communication services 100% 100% GTEU United Kingdom Holding company 100% 100% UKGT*** United Kingdom Wireless and data communications services - - GMI*** Italy Wireless and data communications services - - GIEE** Spain Wireless and data communications services - 100% KVI Philippines Venture capital company 100% 100% FPSI* Philippines E-book solutions 40% 40% Asticom Philippines Support and shared services provider 100% 100% GCVHI Philippines Holding company 100% 100% GFI**** Philippines Holding company 46% 45% Fuse**** Philippines Lending company 100% 100% GXI**** Philippines Fintech company 100% 100% AHI Philippines Holding company 100% 100% AI Philippines Advertising company 100% 100% Socialytics Philippines Advertising company 70% 70% BTI Philippines Wireline voice and data communication services 99% 99% RCPI Philippines Wireline communication services 91% 91% Telicphil* Philippines Telco equipment administration and maintenance 58% 58% Sky Internet Philippines Data communication services 100% 100% GlobeTel Japan Japan Wireless and data communication services 100% 100% NLI Philippines Land holding company 70% 70% Tao Philippines Distributing company 67% 67% G. Towers Inc.***** Philippines Tower company 100% 100% Yondu****** Philippines Information technology and software development 100% 49% EC Pay****** Philippines Information technology and electronic services 77% -
Details of the Globe Group’s investments in associate and joint ventures and the related percentages of ownership as of December 31, 2019 and 2018 are shown below: Associates Yondu******* Philippines Mobile content and application development services 100% 49% AFPI Philippines Construction and establishment of systems, infrastructure - 20% Joint Ventures VTI Philippines Telecommunications 50% 50% BAHC Philippines Holding company 50% 50% BHC Philippines Holding company 50% 50% Konsulta Philippines Health hotline facility 50% 50% TechGlobal Philippines Installation and management of data centers 49% 49% GFI/Mynt******** Philippines Holding company 46% 45% BMPL Singapore Mobile technology infrastructure and common service 10% 10%
* Ceased Operations ***** Incorporated in 2018 ** Liquidated in 2019 ****** Consolidated in 2019 *** Liquidated in 2018 *******A subsidiary of Globe Telecom through GCVHI until September 2017 **** Deconsolidated in 2017 due to loss of control ********An associate of Globe Telecom until September 2019 9 Globe Telecom 2019 Integrated Report Globe Value Map
Brands, Products and Services Partners
Globe Postpaid Over 1.2 million AMAX retailers, distributors and business partners nationwide
Prepaid Globe Prepaid TM Corporate Offices Valero Telepark Fixed Line and Home Home Broadband TGT (The Globe Tower) Broadband Business Corporate Data W City Center Fixed Line Voice GTPlaza 1 and GTPlaza 2 International Long Distance Services GTITPlaza Lahug TGT-Cebu Mandalagan Bacolod Customers JM Basa Iloilo 94.2 million over 2 million CDO Gateway Corp Office mobile home broadband Davao Abreeza customers customers Employees 8,048 Globe employees
Vendors 840 234 local international vendors vendors
Globe Stores AYALA CENTRIO CDO KCC MALL KORONADAL SM TARLAC PD FISHERMALL CDO LIMKETKAI GOS MIDSAYAP PD IBA ZAMBALES PD ROBINSONS MAGNOLIA QC VALENCIA SM GENERAL SANTOS PD BALANGA BATAAN SM MASINAG SM CDO PD TACURONG SM TELABASTAGAN SM ANGONO PD GINGOOG MISAMIS ORIENTAL PD KIDAPAWAN SM CLARK SM TAYTAY PD MALAYBALAY, BUKIDNON PD KCC MALL GENSAN SM SAN FERNANDO PD MONTALBAN RIZAL PD SM CDO PREMIER TUGUEGARAO SM PAMPANGA PD ROBINSONS PLACE ANTIPOLO GAISANO BUTUAN PD SANTIAGO PD MARQUEE MALL PD SM SAN MATEO PD SAN FRANCISCO PD ILAGAN ISABELA SM BALIUAG PD TANAY RIZAL PD TANDAG PD ROXAS ISABELA SM MARILAO ROBINSONS GALLERIA PD SURIGAO PD SOLANO PD GRACELAND MALOLOS SM EAST ORTIGAS OZAMIS PD SM CAUAYAN PD SM SAN JOSE DEL MONTE SM MARIKINA GAISANO ILIGAN PACIFIC MALL CABANATUAN PD STARMALL SAN JOSE DEL MONTE AYALA 30TH PAGADIAN MS SM CABANATUAN PD PLARIDEL PD LUCKY GOLD ZAMBOANGA WALTERMART GAPAN PD STA. MARIA PD STA. LUCIA PD DIPOLOG PD BALER, AURORA SM VALENZUELA GREENHILLS PD OROQUIETA CANDON PD ROBINSONS TOWN MALL MALABON SHANGRI-LA PD ZAMBOANGA VIGAN PD SM CENTER SANGANDAAN SM MEGAMALL PD SINDANGAN PUREGOLD LAOAG PD VALENZUELA TOWN CENTER ALABANG TOWN CENTER DAVAO ABREEZA SM BAGUIO FAIRVIEW TERRACES AYALA FESTIVAL SUPERMALL TAGUM PD LA TRINIDAD SM FAIRVIEW SM SOUTHMALL SM DAVAO DAGUPAN SM NOVALICHES SM MUNTINLUPA SM LANANG SAN FERNANDO, LA UNION SM NORTH EDSA PD SM CENTER LAS PINAS PD MATI SM ROSALES TRINOMA GLORIETTA PD GAISANO DIGOS SM URDANETA UP TOWN KATIPUNAN GREENBELT 4 PD PANABO PD AGOO PD CONGRESSIONAL AVE QC ROCKWELL PD DAVAO GAISANO HARBORPOINT MS ALI MALL TOWER ONE PD TORIL DAVAO SM OLONGAPO EASTWOOD MALL PD CASH & CARRY COTABATO CITY SM OLONGAPO CENTRAL GATEWAY AYALA MANILA BAY
10 Fueling the power of connectedness Globe Stores Globe Corporate Offices
Globe Stores SM BF HOMES SM BACOOR PD GAISANO CARCAR BORACAY (DMALL) SM BICUTAN SM ROSARIO PD ICM LAPU-LAPU ROBINSONS ROXAS SM SUCAT SM MOLINO PD PARK MALL CEBU PD SAN JOSE, ANTIQUE PUERTO PRINCESA AYALA ARVO KIOSK AYALA CENTER CEBU PD GAISANO ROXAS SM MALL OF ASIA AYALA IMUS MS ELIZABETH MALL PD KALIBO PD CORON PALAWAN PD ROBINSONS IMUS GAISANO TABUNOK GAISANO ILOILO BINONDO PD SM TRECE MARTIRES SM CEBU SM ILOILO ROBINSONS PLACE MANILA CITIMART BAUAN SM SEASIDE CEBU SM DELGADO SM SAN LAZARO ROSARIO BATANGAS PD ROBINSONS CYBERGATE CEBU PD PASSI ILOILO SM STA. MESA LEMERY PD ROBINSONS GALLERIA CEBU CITY MALL BORACAY SM MANILA SM BATANGAS CATBALOGAN ATC ACTIVITY CENTER PD TUTUBAN CENTER MALL SM LIPA CALBAYOG GREENBELT ODYSSEY ICONIC PD NASUGBU BATANGAS MAASIN GREENBELT BRIDGEWAY MARKET MARKET PD TANAUAN TACLOBAN MARKET MAIN CONCIERGE SM AURA PINAMALAYAN PD ORMOC MARKET STARBUCKS GLOBE HQ, TAGUIG CALAPAN PD NAVAL MARKET TIME STUDIO UPTOWN BGC LUCBAN QUEZON LOPUES EAST GLORIETTA LANDMARK PD TAGUIG SM LUCENA ROBINSONS BACOLOD GLORIETTA OLD ACTIVITY CENTER CALAMBA PD BOAC MARINDUQUE SM BACOLOD TRINOMA 2F SAN PABLO AYALA LEGAZPI AYALA BACOLOD TRINOMA ACTIVITY CENTER SM STA. ROSA SM LEGAZPI PD GAISANO SAN CARLOS, NEGROS OCC TRINOMA LOTTO AREA PD NUVALI SM NAGA PD CADIZ NEGROS OCC PD SM MINDPRO ZAMBOANGA PD ROBINSONS SAN PEDRO PD TUGBO MASBATE PD LA CARLOTA, NEGROS OCC AYALA CAPITOL BACOLOD PD STA. CRUZ PD LIGAO ALBAY GALLERIA LUISA PD SM GRAND CENTRAL PD WALTERMART CABUYAO PD SORSOGON ISLAND CITY MALL CENTRAL MALL CAVITE PD DAET DUMAGUETE SM DASMARINAS J.CENTER MANDAUE PD KABANKALAN NEGROS OCC PD SERIN TAGAYTAY SM CONSOLACION PD TANJAY PD WALTERMART CARMONA PD BOGO PD BAYAWAN
11 Globe Telecom 2019 Integrated Report 2019 at a Glance
Five-Year Financial Highlights
Globe Telecom, Inc. 2015 2016 2017 2018* 2019
(in Billion Pesos) 113.679 120.588 127.906 132.875 149.010 Gross Service Revenues (up 12% YoY)
(in Billion Pesos) 45.961 49.978 53.326 65.127 76.031 EBITDA (up 17% YoY)
22.284 Net Income After Tax (in Billion Pesos) 16.484 15.888 15.084 18.626 (up 20% YoY)
Return on Equity (in %) 28.9 25.9 23.2 26.7 28.9
CAPEX (in Billion Pesos) 32.130 36.745 42.541 43.259 51.024
Dividend Payment to Common 11.017 11.682 12.092 12.105 12.118 Shareholders (in Billion Pesos)
Market Capitalization (in Billion Pesos) 245.840 200.333 252.542 252.801 269.081
*Figures are Post-PFRS 9 and 15
CAPEX to Revenue ratio
2015 2016 2017 2018 2019
CAPEX (in billion Pesos) 32,130 36,745 42,541 43,259 51,024
Revenue (in billion Pesos) 113,679 120,588 127,906 132,875 149,010
CAPEX to Revenue ratio 28.3% 30.5% 33.3% 32.6% 34.2%
2020 Consolidated Outlook
Service Revenue Mid to high single digit growth
EBITDA Margin Low 50s
CAPEX 63 billion / US$1.2 billion
Gearing Remain within covenant levels
Cost Considerations • Increased interest expenses from additional debt to support ongoing CAPEX program • Upswing in depreciation charges Globe Telecom makes Philippines the first country to experience commercial 5G fixed wireless internet in due to elevated level of CAPEX Southeast Asia. (L-R) Gil Genio, Chief Technology and spending Information Officer and Chief Strategy Officer; Ernest Cu, President and CEO; Martha Sazon, SVP and Head • Globe’s share in equity losses of Broadband Business; Alberto de Larrazabal, Chief of Mynt as expansion initiatives Commercial Officer continue
12 Fueling the power of connectedness Economic Supply Chain • Over 1.2 million AMAX retailers, distributors and business Financials partners nationwide • 149.0B Gross Service Revenues (up 12% YoY) • 86.5B business to local suppliers • 76.0B EBITDA (up 17% YoY) • 22.3 Net Income (up 20% YoY) Subsidiaries • 34.2% CAPEX to Revenue Ratio • TELEHEALTH • 12.1B Dividend Payment to Common Shareholders »» 12,429 health-related consultations through KonsultaMD • 28.9% Return on Equity »» 699,414 customers with access to KonsultaMD • 11% Shareholder Return (based on a closing share price of • FINANCIAL TECHNOLOGY 2,020 as of December 27, 2019) »» 75,000 QR Merchants Customers »» 30,000 Cash-In points • 94.2M mobile customers (up 27% YoY) »» 400 partner billers accepting GCash payments »» 91.5M Prepaid customers »» Financial inclusion for over 20M Mynt customers »» 2.7M Postpaid customers • VENTURE CAPITAL • 2.0M home broadband customers (up 25% YoY) »» Invested US$15.8M in five (5) new portfolio companies • 38.4 Transactional Net Promoter Score (NPS) score versus and in follow-on rounds for five (5) high-performing earlier 34.5 in 2018 investments Network and IT Infrastructure »» Raised a new US$195M venture capital fund, mostly from • 51.0B (US$989M) Capital Expenditures (CAPEX) non-Globe investors, broadening our investment influence. • 1,699 petabytes of mobile data traffic (78% increase YoY) Kickstart is now the largest venture capital fund in the • New Cell Sites put up in 2019: 139% more vs FY 2018 Philippines, with more than US$250M AUM. • Base Stations Expansion in 2019: 69% more vs FY 2018 • Over 2,500 locations with GoWiFi access nationwide More information may be found at the Financial Capital (pages 96-99), • Invested US$60M since 2015 in privacy and cybersecurity Manufactured Capital (pages 100-109) and Intellectual Capital sections capabilities (pages 110-119) of this report
Environment Effluents and Waste • 655 tons of paper saved from 40.9M customers with Enterprise-wide Integrated Management Systems (IMS) paperless billing Certification on Environmental Management, Occupational • Over 343,000 kilograms of e-waste recycled Health and Safety and Business Continuity Biodiversity Energy • Marine Protection Program for Boracay and Siargao Islands • Achieved carbon neutrality for select Globe Corporate Offices • Inclusion of Social Innovation in Marine Biodiversity Program • 6,948 Green Network Solutions deployed Emissions
Emissions More information may be found at the Natural Capital section of this report • 627,226 seedlings planted since 2010 (pages 152-163)
• 40% of workforce or 3,192 employees volunteered for social Social development causes Employment »» 6,172 total volunteers (of which 2,980 are from the • 8,048 regular employees (53% male and 47% female) Ayala Group of Companies’ employees for the Ayala 185 • Collective Bargaining Agreement, 2016-2020 (3.72% of Program) workforce covered by CBA) »» 21% of workforce or 1,728 employees are members of over 20 employee interest clubs Employee Engagement • 91% Sustainable Engagement Index Score in 2018 (net of Learning and Development retention score) • 65M invested in learning and development • 88% Organizational Health Index Score in 2019 • average of 40 training hours per employee • Purpose Survey Indicators »» Role and Work contribution to Globe Purpose: 91 in 2019 Occupational Health and Safety vs 87 in 2018 • Zero fatality rate and zero man-hours lost due to work- »» Personal Purpose contribution to Globe Purpose: 88 in related accidents 2019 vs 87 in 2018 • 7.8% of workforce or 564 employees trained on related »» Employer Net Promoter Score (NPS): Likeliness to occupational safety and health lessons recommend Globe as an employer: 53.40 vs 43.38 in 2018 More information may be found at the Human Capital section of this report (pages 120-135)
•• Conducted Plastic Xchange in seven (7) barangays in Metro Community Manila, in partnership with Ayala Land and Green Antz •• Social Return on Investment (SROI) Governance Framework •• Public service stations and relief operations for •• Nationwide roll-out of Digital Citizenship and Responsibility, disaster‑affected communities in partnership with the Department of Education (DepEd) •• Toll-free hotline for Bantay Bata 163, in partnership with •• Five (5) Social Innovators supported through the Globe ABS‑CBN Lingkod Kapamilya Foundation Inc Future Makers Program •• Turned over New Life Center to the Cebu Provincial •• Almost 2 million raised for Hineleban Foundation, through Government Globe Rewards More information may be found at the Social and Relationship Capital section of this report (pages 136-151)
13 Globe Telecom 2019 Integrated Report About this Report
Progressing from Sustainability •• Reference to the Global Reporting Reports to Integrated Reports, Globe Initiative (GRI) standards Telecom publishes its third Integrated •• Task Force on Climate-related Report prepared in accordance with Financial Disclosures (TCFD) the
14 Fueling the power of connectedness Third Party Assurance governments of the Philippines; the impact of legal or other proceedings; and Disclaimer company’s expectations as to the loss of suppliers or disruption of Globe’s Integrated Report 2019 launch and roll out dates for products, supply chains; developments in has undergone third-party external services or technologies; expectations the company’s financial condition, assurance conducted by DNV- regarding the operating environment earnings and distributable funds GL. Navarro Amper & Co. is the and market conditions; growth in and other factors that the Board independent auditor of the company’s customers and usage; and the rate takes into account when determining financial statements. In accordance of dividend growth by the company. levels of dividends; the company’s with the regulations issued by the Forward-looking statements are ability to satisfy working capital Securities and Exchange Commission sometimes, but not always, identified and other requirements; changes and the Globe Audit and Related by their use of a date in the future in statutory tax rates or profit mix; Party Transactions Committee or such words as “will”, “anticipates”, and/or changes in tax legislation or Charter, the audit partner principally “aims”, “could”, “may”, “should”, final resolution of open tax issues. All handling the company’s account is “expects”, “believes”, “intends”, subsequent oral or written forward- to be rotated every five (5) years or “plans” or “targets” (including in looking statements attributable to sooner. The following documents can their negative form). By their nature, the company or any member thereof be found on the Statutory Reports forward-looking statements are or any persons acting on their behalf section of this Integrated Report: inherently predictive, speculative and are expressly qualified in their entirety involve risk and uncertainty because by the cautionary statements above •• External Assurance Statement they relate to events and depend on and below. Globe expressly disclaims •• Certificates of Compliance circumstances that may or may not any liability in respect of the content •• Board Committee Reports occur in the future. There is a number of any forward-looking statement •• Audited Financial Statements of factors that could cause actual and also expressly disclaims any Overview results and developments to differ obligation or undertaking to materially from those expressed or disseminate any updates or revisions implied by these forward-looking to any forward-looking statements Responsibility Statement statements. These factors include, contained herein or to reflect any The Board collectively acknowledges but are not limited to, the following: change in their expectations with the contents of this report and changes in economic or political regard thereto or any change in believes that this report presents conditions in markets served by events, conditions or circumstances a fair representation of the operations of the company; greater on which any such forward-looking overall financial, operational and than anticipated competitive activity; statement is based. sustainability performance of Globe higher than expected costs or capital in 2019. expenditures; slower than expected Risks and Impact of COVID-19 on customer growth and reduced Globe’s Business Operations Forward Looking Statements customer retention; changes in the Globe recognizes the critical risks This report which presents annual spending patterns of new and existing that a disruption from an Emerging results for Globe for the year ended customers; the company’s ability Infectious Disease (EID) as outlined in December 31, 2019 contains forward- to expand its spectrum position or its Business Continuity Plan can bring looking statements, which have not renew or obtain necessary licenses; to its operations. Workforce health been reviewed or reported on by the the company’s ability to achieve and safety, supply chain disruption company’s auditors, with respect to cost savings; the company’s ability and the need to provide seamless the company’s financial condition, to execute its strategy in fiber connectivity are some of the critical results of operations and businesses deployment, network expansion, new aspects that the company should and certain company plans and product and service roll-outs, mobile prepare for. On March 16, 2020 the objectives. In particular, such data, Enterprise and broadband; Philippine government declared an forward-looking statements include changes in foreign exchange rates, as enhanced community quarantine statements relating to: the company’s well as changes in interest rates; the covering the whole of Luzon including future performance; future company’s ability to realize benefits the National Capital Region (NCR) capital expenditures, acquisitions, from entering into partnerships in light of COVID-19, which was divestitures, expenses, revenues, or joint ventures and entering declared a pandemic by the World financial conditions, dividend policy, into service franchising and brand Health Organization on March 11, and future prospects; business and licensing; unfavorable consequences 2020. The magnitude of its impact management strategies relating to to the company of making and to the company’s overall business the expansion and growth of the integrating acquisitions or disposals; operations and the whole economy company; the effects of regulation changes to the regulatory framework will have to be assessed further. of the company’s businesses by the in which the company operates; the
15 Globe Telecom 2019 Integrated Report Awards & Recognitions
54th Anvil Awards •• Silver Anvil for Public Relations Tools: Exhibits and Conferences, Lead-In
9th Asian Excellence Awards •• Best Investor Relations Company in the Philippines •• Asia’s Best Chief Finance Officer in Investor Relations, Rosemarie Maniego-Eala •• Best Investor Relations Professional in the Philippines, Jose Mari Fajardo
Adobo Design Awards •• Silver in Best Copywriting for Craft: Renato Jiao, Chief Human Resource Officer (left) receives the Gold Stevie for “Employer of the Year in Telecommunications” at the Stevie Awards Night in New York Design/Outdoor/Print, National Teachers’ Month - Manila Paper •• Silver in Press and Poster, National •• Philippines Mobile Data Service Business Thematic Campaign Teachers’ Month Provider of the Year and Leadership Innovation Forum •• Bronze in Best Copywriting for •• Philippines Telecoms Service (Lead-In) Craft: Design/Outdoor/Print, Provider of the Year National Teachers’ Month - International Finance Magazine Overhead Projector HR Asia Awards Awards •• Finalist for Creative Purpose: •• Best Company to Work For in Asia •• Best Telecommunications Corporate Social Responsibility, •• Asia Corporate Excellence and Company of the Year National Teachers’ Month Sustainability Awards (ACES) •• Best Telecom Service Provider •• Finalist for Press and Poster, •• Asia’s Best Workplace of the Year Football •• Industry Champion Kidlat Awards •• Finalist for Film, National Teachers’ •• Silver for Best Copywriting, Month - Farewell Letter Institutional Investor Magazine’s National Teachers’ Month - 2019 All-Asia Executive Team Farewell Letter ASEAN Corporate Governance •• 2nd in the Best Chief Finance •• Bronze for Best Copywriting, Scorecard (ACGS) Officer (CFO) Category for the National Teachers’ Month - Manila •• One of the Top Performing Emerging Markets - Winners by Paper Publicly-Listed Companies in the Country (Philippines), Rosemarie •• Finalist for Corporate Social Philippines Maniego-Eala Responsibility, National Teachers’ •• 4th Most Honored Company for Month - Farewell Letter Asia Pacific Tambuli Awards - the Emerging Markets - Winners Creative and Effective Brands with by Country (Philippines), Globe PANAta Awards Purpose Telecom •• Silver in Brand Corporate Social •• Bronze for Integrated Media, Responsibility, #SeeYouTomorrow #SeeYouTomorrow International Business Awards Mental Health Campaign •• Bronze for Social Media, •• Gold Stevie for PR Campaign of •• Silver in Brand Corporate Social #SeeYouTomorrow the Year, Project Eagle: The Globe Responsibility, National Teachers’ •• Bronze for Integrated Digital, Business Thematic Campaign Month Campaign #SeeYouTomorrow and Leadership Innovation Forum •• Silver in Customer Empowerment, (Lead-In) #TimePlease Volunteer Program Asia Pacific Stevie Awards •• Bronze Stevie for Brand Experience •• Bronze in Brand Corporate Social •• Gold Stevie for Innovation in Cross- of the Year, Project Eagle: Responsibility, #SeeYouTomorrow Media Marketing, Project Eagle The Globe Business Thematic Mental Health Campaign •• Frost & Sullivan Asia Pacific Best Campaign and Leadership •• Bronze in Customer Practices Awards Innovation Forum (Lead-In) Empowerment, #TimePlease •• Philippines Mobile Services •• Bronze Stevie for B2B Event, Volunteer Program Provider of the Year Project Eagle: The Globe
16 Fueling the power of connectedness Globe receives the highest honors at the Asia Corporate Excellence & Sustainability (ACES) Awards 2019, for its awards in “Top Workplaces in Asia” and “Industry Champion” (Left) Emil dela Cruz, Communications Expert (second from left) Nicolette Bambao, Employee Engagement Director, (center) Rosemarie Maniego- Eala, Chief Finance Officer, (rightmost) Abelyn Evangelista, Sustainability Manager, with ACES judges and committee
Tambuli Awards TM Forum YouTube Ads Awards •• Bronze for Integrated Digital, •• Champion for Catalysts - Digital •• Bronze for Tech, eCommerce, Telco Project Hope Twin Category, Umuwi Ka Na Baby •• Bronze for Integrated Media, •• Bronze for Effectiveness Category, Project Hope World CSR Day and EasySurf Series •• Bronze for Social Media, Project World Sustainability •• Bronze for Best in 5-second Intro Hope •• 101 Most Impactful Leaders (A Category, One Tap •• Bronze for Youth Brand, Rinbee + Global Listing), Maria Yolanda C. GladiaTWO Crisanto
Memberships
•• American Chamber of Commerce Management Association of the •• Philippine Chamber of of the Philippines, Inc. (AmCham) Philippines (HIMAP) Telecommunications Operators •• Asia-Pacific Telecommunity •• Infocomm Technology Association (PCTO) Canadian Chamber of Commerce of the Philippines (ITAP) •• Philippine Management of the Philippines (CanCham) •• International Association of Privacy Association of the Philippines •• Business for Sustainable Professionals (IAPP) (PMAP) Development (BSD), formerly •• IT and Business Process •• Philippine Disaster Resilience Philippine Business for the Association Philippines (IBPAP) Foundation (PDRF) Environment (PBE) •• Makati Business Club (MBC) •• Philippine Retailers Association •• Canadian Chamber of Commerce •• Management Association of the •• Philippine Software Industry Philippines Philippines (MAP) Association (PSIA) •• Contact Center Association of the •• Internet and Mobile Marketing •• Semiconductor and Electronics Philippines (CCAP) Association of the Philippines Industries in the Philippines •• DPO in the Asia Pacific Privacy (IMMAP) Foundation, Inc. (SEIPI) Authorities (APPA) 52 Working •• International Telecommunication •• Supply Chain Management Group Union (ITU) Association of the Philippines •• DPO in the Cross-Border Privacy •• National Disaster Risk Reduction (SCMAP) Rules (CBPR) Working Group Management Council (NDRRMC) •• Telecommunications and •• Employee Confederation of the •• Philippine Association of National Broadcast Attorneys of the Philippines (ECOP) Advertisers (PANA) Philippines, Inc. (TELEBAP) •• European Society for Opinion and •• Philippine Cable Television •• United Nations Global Compact Marketing Research (ESOMAR) Association (PCTA) (UNGC) •• Financial Executives of the •• Philippine Chamber of Commerce •• Venture Capital and Private Equity Philippines (FINEX) and Industry (PCCI) Association of the Philippines •• GSM Association (GSMA) •• Pollution Control Association of (VCAP) •• Healthcare Information the Philippines, Inc. (PCAPI)
17 Globe Telecom 2019 Integrated Report 18 Fueling the power of connectedness Leadership
19 Globe Telecom 2019 Integrated Report Message from the Chairman
“In 2019, Globe achieved an important milestone when it launched the Globe At Home AirFiber 5G postpaid plans. This made the Philippines the first Southeast Asian country to experience the fifth generation (5G) fixed wireless broadband.”
20 Fueling the power of connectedness JAIME AUGUSTO ZOBEL DE AYALA Chairman
21 Globe Telecom 2019 Integrated Report Message from the Chairman
I am delighted to present Globe’s service revenues compared to 61% “In our quest to third integrated report based on reported last year. We have also been
Despite the country’s dampened DIGITALIZATION INITIATIVES TO economic growth in the global ENHANCE CUSTOMER EXPERIENCE and domestic front, Globe had a AND TRANSFORM BUSINESSES record performance with a 12% improvement in service revenues In our desire to digitally transform year-on-year. In line with the past businesses, we acquired a 77% year’s trends, revenue growth has equity interest in EC Pay, Inc., whose been predominantly driven by platform will enable small business strong data consumption. Total data owners to offer more products and revenues accounted for 71% of total services. This move will also future-
22 Fueling the power of connectedness proof Globe’s distribution network, on building the resilience of our value service delivery. With the substantial bringing the company a step closer chain to extreme weather events strengthening of our infrastructure to its vision of a digitally enabled and ensuring protection of the Globe capabilities, coupled with our brand Philippines. Additionally, our GCash network in times of disasters. While value composition, Globe has been partnership with CIMB Philippines focusing on climate adaptation, our able to fortify its market leadership reached a milestone of 1 million strategy also contributes towards position. GSave accounts opened after only climate change mitigation through 8 months from launch. Moreover, fostering an organizational culture of I look forward to walking alongside together with our operators, we resource conservation and actively all of you in our journey towards entered into a consortium with taking part in reforestation activities. sustainable value creation for our Syniverse for Mobile Number Globe is also committed to resource country and all our fellow Filipinos. Portability. usage optimization and waste minimization with a focus on effective COMMITMENT TO UN SUSTAINABLE e-waste management. DEVELOPMENT GOALS The robust performance we We became a signatory to the United witnessed this year serves as Nations Global Compact, committing a testament of our integrated to implement universal sustainability approach to value creation and our principles and contribute to commitment to adopting a holistic the United Nations Sustainable approach to risk management. Development Goals. Our focus areas Globe installed a dedicated Board Jaime Augusto Zobel de Ayala in this vision include education, Risk Oversight Committee (BROC) Chairman environmental conservation, digital in April 2019. The BROC was inclusion and development. We established to assist the Board of have rolled out various programs to Directors in fulfilling its oversight realize our vision. We also expanded responsibilities. This allowed us the reach of DTP via the National to balance risk governance and Summit on Digital Citizenship and define risk-taking responsibility and Responsibility (NSDCR) in partnership authority while ensuring the effective with the Department of Education functioning of the Enterprise Risk last September. Over 400 curriculum Management framework. This step experts on Values Education and ICT will play a crucial role in enhancing from DepEd were in attendance and the robustness of the company help them become responsible online by proactively managing risks citizens. We also encourage social and thereby ensuring continuous innovators, using ICT through the stakeholder value generation. regional Future Makers program. CLOSING REMARKS COMMITMENT TO HOLISTIC VALUE CREATION The transformative growth and progress we have been able In line with Globe’s commitment to achieve in upgrading digital to holistic value creation, we have infrastructure and capabilities has the made considerable progress in potential to fundamentally change our environmental stewardship the way people live in our country. programs. This year, we rolled out Globe has always been a people our Marine Protection Program for focused business, with our employees Boracay and Siargao Islands aimed taking the lead to devise creative towards biodiversity conservation. solutions to meet the emerging In recognition of the material risks needs of customers. The timely and opportunities climate change delivery of services with high-quality presents, we have devised a dedicated standards has helped Globe make climate strategy. Our strategy focuses the issue of quality a hallmark of its
23 Globe Telecom 2019 Integrated Report Message from the President
“In 2019, Globe became a signatory to the United Nations Global Compact and we commit to implement universal sustainability principles and integrate these into the business.”
24 Fueling the power of connectedness ERNEST L. CU President & CEO
25 Globe Telecom 2019 Integrated Report Message from the President
The year 2019 has been a year and upload speeds, and lower “For us at Globe, of remarkable growth, driven latency as confirmed by a third party by innovative customer-centric network quality test provider. We the true value we solutioning, paving the way to have also extended our partnerships create lies in the enabling fast-tracked digital with leading providers of content, transformation of the economy. mobile messaging, social media impact we have on The year in focus has been special and other popular OTT applications the lives of people for all of us at Globe, as we launched in order to provide products and - our customers, 5G in June 2019. This strengthens services that anticipate and cater to our service delivery of broadband shifting customer preferences. As our employees, business via fixed wireless access technology. customers realize the potential of associates, Having made a record investment of digitization, our service proposition 51.0 billion, we have made strong will focus on “owning our customers” suppliers, vendors strides aligned with our vision of through superior service experience. and Filipinos redefining customer experience, We anticipate enhanced customer at large. Our enabling last mile connectivity and delight, given our improved service revitalizing the digital economy of delivery capabilities, coupled with employees are at the country. We were able to deliver unique offerings encompassing the forefront of strong financial performance, while personalized plans and attractive making a substantial positive impact product/device bundles. helping us achieve on our society and environment. our goals and For us at Globe, the true value we vision of ensuring Our company emerged with strong create lies in the impact we have on performance despite market the lives of people - our customers, that we create changes, and the domestic and global employees, business associates, value for all our economic slowdown of the economy. suppliers, vendors and Filipinos at We posted a service revenue of large. Our employees are at the stakeholders. 149.0 billion, 12% higher compared forefront of helping us achieve our They share our to 2018. This growth was primarily goals and vision of ensuring that we fueled by the gains from data services create value for all our stakeholders. desire to do -spanning mobile, broadband and They share our desire to do sustainable corporate data. Total data revenues sustainable practice and are key to practice, and are at the end of 2019 accounted for 71% furthering our sustainability agenda. of total service revenues, evidencing We make it known to our employees key to furthering more Filipinos embracing a digitally that the ideas and innovation they our sustainability enabled lifestyle. bring to the company are central to the success we achieve year on agenda. We make It is a matter of immense delight that year. In recognition of our employee- it known to our today, we are the service provider of centric organizational culture, we employees that choice for over 96 million customers have achieved 91% Sustainable nationwide. This positions us as Engagement Index Score in 2018 the ideas and an important player in connecting (net of retention score) and 88% on innovation they minds and inspiring ideas across Organizational Health Index Score the Philippines through digitization. in 2018. bring to the With an increasing customer base company are central and emerging customer needs, Globe aspires to be an industry leader we made substantial investments with purpose, helping customers to the success towards building our infrastructural discover new ways to enjoy life. As we achieve year prowess. As of December 2019, a company driven by passion and on year.” we put up 139% more sites and purpose, we are proud to share the 28% more 3G and 4G base stations result of our Purpose Survey with 3 compared to 2018. These investments Purpose Index Indicators as follows: have translated to more customers (1.) Role and Work contribution enjoying higher data speeds, to Globe Purpose: 91 in 2019 vs specifically improved LTE download 87 in 2018; (2.) Personal Purpose
26 Fueling the power of connectedness contribution to Globe Purpose: 88 our expansion and capability building experience with a committed spending in 2019 vs 87 in 2018; (3.) Employer in a manner that exerts minimum of 63.0 billion in capital expenditures NPS is the likeliness to recommend impact on the environment. We strive in 2020. Our acquisitions and Globe as an employer: 53.40 vs 43.38 to find innovative avenues to offset partnerships in the area of electronic in 2018. The Purpose Survey serves the impact we could have on the payments (EC Pay) and IT (Yondu) as a gauge to determine how our environment. We have focused on points toward how we intend to grow employees resonate with the Globe deploying green network solutions new businesses by leveraging our Purpose and their insights on factors and have rolled out almost 7,000 core assets. For 0917 Lifestyle, we are that contribute to how they can solutions in 2019. Indeed, we are excited for the next year, as we expand live out Purpose in Globe including now living in times where we are outside our Globe stores and online culture, clarity and ways of working. experiencing the impacts of climate shop, to open our first flagship 0917 change. We have worked towards Store in Makati. Our flagship store will Aside from our employees, our instating a robust Business Continuity be carrying our exclusive Vanguard business partners, vendors and Management Plan to mitigate the collection - infusing Fashion and Tech suppliers play a vital role in furthering risks arising from extreme weather in our Apparel collection, as well as key our business in a sustainable manner. events and climate linked risks. collaborations to give life to our vision We have formed an ecosystem We are also actively contributing for 0917 to become a Fashion and that creates a mutually inspiring to climate change mitigation. For Tech Brand that consumers desire. atmosphere to achieve greater instance, we have been able to save integration of sustainability in over 650 tons of paper through I hope you find this integrated business. customers shifting to paperless report informative, relevant and billing. In addition, by automating engaging. This report will enable This year, we reinforced our position and migrating to a paperless process, you to understand our shared as a change agent, leading Filipinos we were able to save over 20 tons value creation story and approach to a digitally-enabled lifestyle by of paper, equivalent to saving 480 toward entrenching the culture incubating, developing, and operating trees. We also institutionalized the of sustainability in our business new non-telecom businesses. By avoidance of Single-Use Plastics endeavors. leveraging on Globe’s strengths and (SUP) in our office and engaged assets, these startups are nurtured our concessionaires to look for SUP Thank you. by Globe to maximize the value alternatives. Last September, we they generate. We launched a new held the Plastic Exchange Program subsidiary, 917 Ventures, that will in seven (7) barangays in Metro hold all of Globe’s incubated startups Manila in partnership with Ayala that are beyond telecommunication. Land and Green Antz. Over 31,000 917 Ventures will also now house pieces of single-use plastic waste Globe Fintech Innovations (Mynt), were collected which were turned the company that operates mobile into 24,500 ecobricks by Green Antz wallet GCash; AdSpark Holdings, a Builders, Inc. The ecobricks will be digital advertising firm; and Konsulta used to build community gardens and MD, a telehealth firm. Globe’s push benches, a waste segregation facility Ernest L. Cu for new digital businesses is seen to and a creek fence. It would also be President and CEO play an important role in actualizing used for rehabilitation for daycare the company’s vision, while sealing centers. its future growth trajectory. Through this initiative, we are confident that In 2019, Globe became a signatory to the Philippines can catch up with the United Nations Global Compact, the rest of the region in terms of ICT and we commit to implement adoption, especially in areas of great universal sustainability principles and importance like advanced medicine, integrate these into the business. health and wellness, delivery of basic services, and education. For the global telecom sector, interesting and promising times lie As natural resources play an ahead. To sustain the momentum indispensable role in the well-being we have gained, we will ramp up of the society, we strive to conduct infrastructure to improve network
27 Globe Telecom 2019 Integrated Report Board of Directors
Jaime Augusto Zobel de Ayala Chairman, Non-Executive Director
Fernando Zobel de Ayala Co-Vice Chairman, Non-Executive Director
Lang Tao Yih, Arthur Co-Vice Chairman, Non-Executive Director
Ernest L. Cu Executive Director, President and Chief Executive Officer
Romeo L. Bernardo Non-Executive Director
Delfin L. Lazaro Non-Executive Director
Samba Natarajan Non-Executive Director
Jose Teodoro K. Limcaoco Non-Executive Director
Rex Ma. A. Mendoza Non-Executive and Lead Independent Director
Saw Phaik Hwa Non-Executive and Independent Director
Cirilo P. Noel Non-Executive and Independent Director
28 Fueling the power of connectedness Jaime Augusto Zobel de Ayala Chairman, Non-Executive Director
Committee memberships: which he chairs. He is Chairman Emeritus of the Asia Executive Committee (Chairman) Business Council, a member of the Global Board of Adviser of the Council on Foreign Relations, and Co- Filipino, 60, has been the Chairman of the Board since Vice Chairman of the Makati Business Club, Chairman December 1996 and Director since March 1989. Among of Endeavor Philippines, and a board member of other current positions, he is also the Chairman and Eisenhower Fellowships. Chief Executive Officer (CEO) of Ayala Corporation; Chairman of Integrated Micro-Electronics, Inc.; and Mr. Zobel was awarded the Presidential Medal of Merit Bank of the Philippine Islands; and Vice Chairman of in 2009, the Philippine Legion of Honor with rank of Ayala Land, Inc.; Manila Water Company, Inc.; and AC Grand Commander in 2010, and the Order of Mabini Energy Philippines, Inc. He is also the Chairman of with rank of Commander in 2015 by the President of Ayala Retirement Fund Holdings, Inc.; AC Industrial the Philippines in recognition of his outstanding public Technology Holdings, Inc.; AC Ventures Holding Corp.; service. In 2017, he was recognized as a United Nations AC Infrastructure Holdings Corporation; and Asiacom Sustainable Development Goals Pioneer by the UN Philippines, Inc.; Co-Chairman of Ayala Foundation, Inc.; Global Compact for his work in sustainable business Inc.; and Ayala Group Club, Inc.; Director of Alabang strategy and operations. The first recipient of the award Commercial Corporation; Ayala International Pte. Ltd.; from the Philippines, he was one of 10 individuals AC Energy, Inc.; Ayala Healthcare Holdings, Inc.; Light recognized for championing sustainability and the Rail Manila Holdings, Inc.; and AG Holdings Ltd. pursuit of the 17 SDGs in business.
Skills and experience: He graduated with B.A. in Economics (Cum Laude) from Outside the Ayala group, he is a member of various Harvard College in 1981 and obtained an MBA from the business and socio- civic organizations in the Philippines Harvard Graduate School of Business in 1987. and abroad, including the JP Morgan International Council, JP Morgan Asia Pacific Council and Mitsubishi Directorship in other publicly listed companies: Corporation International Advisory Council. He sits on Ayala Corporation; Ayala Land, Inc.; Bank of the the board of the Singapore Management University, Philippine Islands; Integrated Micro-Electronics, Inc.; and on various advisory boards of Harvard University, Manila Water Company, Inc.; and AC Energy Philippines, including the Global Advisory Council, HBS Board of Inc. All of which are listed on the Philippine Stock Dean’s Advisors, and HBS Asia-Pacific Advisory Board, Exchange.
29 Globe Telecom 2019 Integrated Report Board of Directors
Fernando Zobel de Ayala Co-Vice Chairman, Non-Executive Director
Committee memberships: Ayala Retirement Fund Holdings, Inc.; and AC Venture Compensation and Remuneration Committee Holdings Corp.; Honda Cars Philippines, Inc.; Isuzu Finance Committee Philippines Corporation; and Manila Peninsula.
Filipino, 59, has served as Director since October Skills and experience: 1995. He has been the President and Chief Operating Mr. Zobel holds a liberal arts degree from Harvard Officer (COO) of Ayala Corporation. He is the Chairman College and a CIM from INSEAD, France. He is also of AC International Finance Ltd.; Liontide Holdings, Chairman of Habitat for Humanity’s Asia Pacific Inc.; AC Energy, Inc.; AC Energy Philippines, Inc.; Capital Campaign Steering Committee and a Ayala Healthcare Holdings, Inc.; Automobile Central Member of Philippine-Singapore Business Council, Enterprise, Inc.; Alabang Commercial Corporation; Tikehau International Advisory Board, INSEAD Board, Accendo Commercial Corp.; and Hero Foundation, Georgetown University Board, World Presidents’ Inc. He is also Co-Chairman of Ayala Foundation, Organization, and Chief Executives Organization. He is a Inc. and Ayala Group Club, Inc. He is Vice-Chairman Member of the Board of Trustees of Caritas Manila. of AC Industrial Technology Holdings, Inc.; ALI Eton Property Development Corporation; Ceci Realty Inc.; Directorship in other publicly listed companies: Fort Bonifacio Development Corporation; Bonifacio AC Energy Philippines, Inc.; Ayala Corporation; Ayala Land Corporation; Emerging City Holdings, Inc.; Land, Inc.; Bank of the Philippine Islands; Integrated Columbus Holdings, Inc.; Berkshires Holdings, Inc.; and Micro-Electronics, Inc.; Manila Water Company, Inc.; and Bonifacio Art Foundation, Inc. He is a Director of LiveIt Pilipinas Shell Petroleum Corporation. All of which are Investments, Ltd.; AG Holdings Ltd.; AC Infrastructure listed on the Philippine Stock Exchange. Holdings Corporation; Asiacom Philippines, Inc.;
30 Fueling the power of connectedness Lang Tao Yih, Arthur Co-Vice Chairman, Non-Executive Director
Committee memberships: a board member of Airtel Africa, NetLink NBN Trust, the Executive Committee Land Transport Authority of Singapore, the National Compensation and Remuneration Committee Kidney Foundation Singapore, the Straits Times Pocket Money Fund, Bharti Infratel Limited, and the Advisory Singaporean, 47, has served as Director since April Board of the Lee Kong Chian School of Business, 2017. He is the CEO International of Singapore Singapore Management University. Telecommunications Limited. His main responsibilities are to oversee the growth of the Group’s regional Mr. Lang received the Best CFO of the Year Award, for associates across India, Indonesia, the Philippines, listed companies with market capitalization of S$1 Thailand and 14 countries in Africa, strengthen its billion and above, at the Singapore Corporate Awards relationship with overseas partners, and drive regional in 2015. initiatives, such as the mobile financial services, video gaming businesses and Esports, for scale and synergies. Mr. Lang has a Master of Business Administration from the Harvard Business School and a BA in Economics Skills and experience: (magna cum laude) from Harvard University. He was formerly the Group CFO of CapitaLand Limited, one of Asia’s largest real estate companies. Prior to Directorship in other publicly listed companies: joining CapitaLand, he was at Morgan Stanley having Bharti Infratel Limited that is listed on the National been the co-head of the Southeast Asia investment Stock Exchange of India Ltd.; NetLink NBN Trust that banking division and the Chief Operating Officer for the is listed on the Singapore Stock Exchange; and Airtel Asia Pacific investment banking division. Mr. Lang is also Africa that is listed on the London Stock Exchange.
31 Globe Telecom 2019 Integrated Report Board of Directors
Ernest Cu Executive Director, President and Chief Executive Officer
Committee memberships: Executive Committee Skills and experience: Filipino, 59, has served as Director since April 2009. He Prior to Globe, he was President and CEO of SPi is the President and Chief Executive Officer (CEO) of Technologies from 1997 to 2008. At the cusp of the Globe Telecom, Inc. He joined Globe in October 2008 new millennium, he spurred the beginning of the BPO as Deputy CEO, and was officially appointed President business model for the Philippines, earning him the and CEO on 2 April 2009. Since then, Mr. Cu has been recognition as one of the founding fathers of BPO in the passionately driving a sweeping transformation across country. Lauding his pioneering spirit, Ernst & Young the company, including modernizing its network and named him ICT Entrepreneur of the Year in 2003. In IT infrastructure, developing a strong collaborative 2017, he was hailed as the Philippines’ Best CEO by and service-oriented culture, and creating product Finance Asia. A second for Cu, he first received the innovations in its core business segments. Globe has award in 2010. Also in 2017, for the fifth straight year, since outperformed industry growth, with the company Cu was recognized as one of the 100 most influential breaking records across all key product groups, brands telecom leaders worldwide by London-based Global- and market segments, catapulting Globe as the Telecoms Business Magazine Power 100. Frost & number 1 mobile brand in the country. Sullivan Asia Pacific has also named him CEO of the Year twice, first in 2012, and again in 2017. Under Mr. Cu’s visionary leadership, Globe embarked on a purpose-led transformation in 2016 to create a more Mr. Cu has a Bachelor of Science Degree in Industrial sustainable organization. With its renewed mission, Management Engineering from De La Salle University vision, and core values, collectively embodied in the new in Manila, and an M.B.A. from the J.L. Kellogg Graduate Globe Purpose, the company is now setting its sights School of Management in Northwestern University. on serving as a catalyst in driving the nation forward. In 2019, Globe became a signatory to the United Nations Mr. Cu is not a Director or an executive in any other Global Compact, committing to implement universal publicly listed company. sustainability business principles.
32 Fueling the power of connectedness Ernest Cu Romeo Bernardo Executive Director, President and Chief Executive Officer Non-Executive Director
Committee memberships: He previously served as Undersecretary of Finance Audit and Related Party Transactions Committee and as Alternate Executive Director of the Asian Finance Committee Development Bank. He was also an Advisor of the World Board Risk Oversight Committee Bank and the IMF (Washington D.C.).
Mr. Bernardo holds a degree in Bachelor of Science Filipino, 65, has served as a Director since September in Business Economics from the University of the 2001. He is also the Managing Director of Lazaro Philippines (magna cum laude) and a Master’s Degree Bernardo Tiu and Associates (LBT), a financial advisory in Development Economics at Williams College from firm based in Manila. He is a GlobalSource economist in Williams College in Williamstown, Massachusetts. the Philippines. He is also the Chairman of ALFM Family of Funds. Directorship in other publicly listed companies: Aboitiz Power Corporation; Bank of the Philippine Skills and experience: Islands; RFM Corporation. All of which are listed on the He is a member of the Philippine World Bank Advisory Philippine Stock Exchange. Group and a member of the Panel of Conciliators of the International Centre for Settlement of Investment Disputes.
33 Globe Telecom 2019 Integrated Report Board of Directors
Delfin Lazaro Non-Executive Director
Committee membership: Skills and experience: Finance Committee He earned his Bachelor of Science in Metallurgical Engineering from the University of the Philippines Filipino, 73, has served as Director since January 1997 in 1967, and his Masters of Business Administration and a member of the Finance Committee. His other (with distinction) from the Harvard Graduate School of significant positions include: Chairman of Atlas Fertilizer Business in 1971. & Chemicals Inc.; Vice Chairman and Non-Executive Director of Asiacom Philippines, Inc.; Chairman and Directorship in other publicly listed companies: Non-Executive Director of A.C.S.T. Business Holdings, Ayala Corporation; Ayala Land, Inc.; Integrated Micro- Inc.; and AYC Holdings, Inc.; Non-Executive Director Electronics, Inc.; and Manila Water Company, Inc. All of of AC International Finance Limited; AC Industrial which are listed on the Philippine Stock Exchange. Technology Holdings, Inc.; and AC Energy Holdings, Inc. He is also a member of BPI Advisory Council.
34 Fueling the power of connectedness Samba Natarajan Non-Executive Director
Committee memberships: role with McKinsey, he was the Leader of Southeast Executive Committee Asia TMT practice, consulting with C-level executives in Finance Committee the areas of growth, transformation, corporate finance and commercial operations. Mr. Natarajan sits on the US citizen, 54, has served as Director since 7 April 2015, board of several digital subsidiaries of the Singtel group, a member of the Finance and Executive Committee. including Amobee, HOOQ and Trustwave. He also sits He has been the CEO of Group Digital Life, Singtel on the advisory board of the McKinsey Digital Campus since April 2015. Group Digital is the digital innovation and on the Board of Governors of the Singapore business for the Singtel group and is currently focused American School. on capturing opportunities in three (3) main areas: Digital Marketing, Over-the-top Video and Data He holds a Bachelor of Engineering degree in Electrical analytics while also managing the corporate venture Engineering with distinction from the Birla Institute of fund, Innov8, that invests in cutting edge technologies. Technology and Science in Pilani, India, a Post Graduate He joined Singtel in May 2014 as Managing Director of Diploma in Management from the Indian Institute of Digital Enterprise leading a team focused on identifying, Management in Ahmedabad, India where he was an executing, and operationalizing enterprise growth industrial scholar, and an MBA from the Wharton School opportunities from emerging technology trends. He of the University of Pennsylvania, USA, where he was a brings more than 25 years of corporate and consulting Hope Fellow, Ford Fellow and Palmer Scholar. He was experience across a wide range of senior roles in the profiled in “Leaders for the Global Markets”, Wharton areas of strategy, business development and finance. School, 1999–2000.
Skills and experience: Mr. Natarajan is not a Director in any other publicly listed He worked for Citibank from 1988 to 1997 and company. McKinsey & Company from 1999 to 2014. In his last
35 Globe Telecom 2019 Integrated Report Board of Directors
Jose Teodoro Limcaoco Non-Executive Director
Committee membership: BPI Capital Corporation, Officer-in-Charge for Ayala Executive Committee Life Assurance, Inc. and Ayala Plans, Inc., Trustee and Treasurer of Ayala Foundation, Inc., President Filipino, 57, has served as Director since 13 April 2016. of myAyala.com, and CFO of Azalea Technology Mr. Limcaoco is also Chief Finance Officer (CFO), Chief Investments, Inc. He served as the President of the Risk Officer (CRO), Chief Sustainability Officer and Chamber of Thrift Banks from 2013-2015. Finance Group Head of Ayala Corporation. He is the Chairman of Darong Agricultural and Development He was named as the ING-Finex CFO of the Year in Corporation and Zapfam Inc. He is the President and 2017. He has held prior positions with JP Morgan & Co. CEO of AC Ventures Holdings, Inc. (formerly Water and with BZW Asia. Capital Works, Inc.); AYC Finance Limited; Bestfull Holdings Limited; and Purefoods International Limited. He graduated from Stanford University with a BS He is the Vice Chairman of Lagdigan Land Corporation. Mathematical Sciences (Honors Program) in 1984 He is the President of Liontide Holdings, Inc. and and from the Wharton School of the University of Philwater Holdings Company, Inc. He is a Director of Pennsylvania with an MBA (Finance and Investment Ayala Hotels, Inc.; AC Energy, Inc.; Ayala Healthcare Management) in 1988. Holdings, Inc.; AC Infrastructure Holdings Corporation; Ayala Aviation Corporation; AC Education, Inc.; Asiacom Mr. Limcaoco, Ayala’s Chief Finance, Risk, and Philippines, Inc.; AG Counselors Corporation; Michigan Sustainability Officer, was a catalyst in the creation Holdings, Inc.; AC Industrial Technology Holdings, Inc. of the Ayala Sustainability Blueprint: Bridging the (formerly Ayala Automotive Holdings Corporation); Filipino to 2030. The blueprint outlines the business A.C.S.T. Business Holdings, Inc.; LICA Management Inc.; units championing UN Sustainable Development Goals and Just For Kids, Inc. He is also the Treasurer of Ayala across three journeys and the targets they commit to Retirement Fund Holdings, Inc. attain by 2030. The targets outlined in the blueprint will be included in the scorecards of CEOs across the group. Skills and experience: Mr. Limcaoco joined Ayala Corporation as Managing Directorship in other publicly listed companies: Director in 1998. Prior to his appointment as CFO in Bank of the Philippine Islands, Integrated Micro- April 2015, he held various responsibilities including Electronics, Inc. and SSI Group, Inc. All of which are President of BPI Family Savings Bank, President of listed on the Philippine Stock Exchange.
36 Fueling the power of connectedness Rex Ma. Mendoza Non-Executive and Lead Independent Director
Committee memberships: of Ayala Land International Sales, Inc., President of Nomination and Governance Committee (Chairman) Ayala Land Sales, Inc. and Avida Sales Corporation. Compensation and Remuneration Committee (Chairman) Audit and Related Party Transactions Committee Mr. Mendoza was awarded Most Distinguished Alumnus Board Risk Oversight Committee of the University of the Philippines’ Cesar E.A. Virata School of Business last December 2013. He is also a Filipino, 57, has been Independent Director since fellow with distinction at the Life Management Institute April 2014. He is the President and CEO of Rampver of Atlanta, Georgia, U.S.A., a Registered Financial Financials, a financial services firm and the leading Planner and a four-time member of the Million Dollar non-bank mutual funds distributor in the country. He Round Table. is also the lead Independent Director of Ayala Land Logistics Holdings Corporation and a Director of Esquire Mr. Mendoza was a professor of Marketing and Financing, Inc.; the Cullinan Group; TechnoMarine Computational Finance at the De La Salle University Philippines; Seven Tall Trees Events Company, Inc.; and Graduate School of Business. He taught strategic Mobile Group, Inc. He is the author of two (2) books, marketing, services marketing and services strategy. He “Trailblazing Success” and “Firing on All Cylinders”, both has served as Chairman of the Marketing Department certified national bestsellers. and was awarded as one of the University’s most outstanding professors. Skills and experience: Mr. Mendoza was previously the Senior Adviser to the He earned his Master’s Degree in Business Management AIA Group CEO for Marketing and Distribution. AIA with distinction from the Asian Institute of Management Group Limited is the leading Pan-Asian insurance in 1986 and was one of the 10 Outstanding Graduates company and is the parent firm of the Philippine of his batch at the University of the Philippines where American Life and General Insurance Company he obtained a BSBA degree with a double major in (PhilamLife). Prior to this position, he was the President marketing and finance in 1983. and CEO of Philam Life, Chairman of The Philam Foundation, Inc. and Vice Chairman of BPI Philam Life Directorship in other publicly listed companies: Assurance Company. Prior to rejoining Philam Life, AyalaLand Logistics Holdings Corporation and National he was Senior Vice President and Chief Marketing and Reinsurance Corporation of the Philippines. Both are Sales Officer of Ayala Land, Inc. He was also Chairman listed on the Philippine Stock Exchange.
37 Globe Telecom 2019 Integrated Report Board of Directors
Saw Phaik Hwa Non-Executive and Independent Director
Committee memberships: January 2012, Singapore’s first multi-modal public Nomination and Governance Committee transport service provider. During her tenure, she Compensation and Remuneration Committee enhanced the public travel experience in Singapore by Audit and Related Party Transactions Committee introducing commuter-centric initiatives and adding Board Risk Oversight Committee (Chairman) lifestyle conveniences at stations to make public transport a choice mode of travel for all. She was also Singaporean, 65, has been an Independent Director instrumental in broadening SMRT’s geographical since 7 April 2015. Ms. Saw was the Group CEO of Auric footprint as well as establishing SMRT’s presence Pacific Group, listed on the Mainboard of the Singapore overseas with the opening of offices in the Middle East Exchange, which has diverse business interests ranging and China which serve as springboards to opportunities from distribution of fast-moving consumer food, in those regions. From 1984 to 2002, she was the food manufacturing and retailing, management of Regional President in charge of businesses in Singapore, restaurant and food court operations to other strategic Indonesia, and Malaysia for DFS Venture Singapore. investments including fund investment. The Group operates in various countries throughout Asia including Ms. Saw holds a Second Upper Class Honours in Singapore, Malaysia, Indonesia, Hong Kong and China. Biochemistry from the University of Singapore and Ms. Saw retired as its CEO on 1 May 2015. attended the Advanced Management Programme at the University of Hawaii. Skills and experience: Prior to this, Ms. Saw was the President and CEO of Ms. Saw is not a Director in any other publicly listed SMRT Corporation Ltd between December 2002 to company.
38 Fueling the power of connectedness Cirilo Noel Non-Executive and Independent Director
Committee memberships: of the EY Global Delivery Network (GDN), which offers Nomination and Governance Committee Advisory Services including Performance Improvement, Compensation and Remuneration Committee Risk, and Advisory Support capabilities to EY clients around Audit and Related Party Transactions Committee (Chairman) the world. GDN Philippines also offers IT services, business Board Risk Oversight Committee and creative services focused on administrative support, creative design, as well as knowledge services. In 2010, the Filipino, 62, has been an Independent Director since 17 Asia-Pacific Talent Hub was established as a cross-border April 2018. He also serves as a Board of Trustee/Director teaming resource. Within the global EY organization, he at St. Luke’s Medical Center and St. Luke’s Foundation and was a member of the EY Global Advisory Council and the St. Luke’s Medical Center College of Medicines. He is also EY Asia Pacific Advisory Council for two (2) terms or six (6) the Head of the Tax Committee of the Makati Business years. He was also the Presiding Partner of the EY Far East Club. Mr. Noel sits in the Board of the following companies: Asia Advisory Council and the EY ASEAN Partners Forum. LH Paragon Inc.; Cal-Comp Technology (Philippines), Inc.; He served as ASEAN Sub-Area Tax Head and the Far East Amber Kinetics Holding Co. PTE LTD, Eton Properties, Area Business Tax Services Leader. He is a former member Inc.; and Transnational Diversified Group Inc. (TDGI). He of the Board of Trustees and the audit committee chair of is also the Chairman of the Board of Palm Concepcion the Philippine Business for Social Progress and a former Power Corporation. He is a founding board member of the governor of the Management Association of the Philippines. US-Philippines Society as well as a member of the ASEAN He also served as president of the Harvard Law Alumni Business Club. Association of the Philippines and as a member of the Board of Trustees of the Harvard Club of the Philippines. Skills and experience: As a certified public accountant (CPA) and lawyer, Mr. Noel’s Mr. Noel graduated from the University of the East in areas of expertise include international tax for inbound Manila with a degree in Business Administration and holds and outbound investments, tax advisory and planning, tax a Bachelor of Laws degree from the Ateneo de Manila advocacy, litigation, investment and trade laws. He was, for University Law School. He obtained his Master’s degree many years, the Head of SGV’s Tax Division. He was also in Law from Harvard Law School and is a fellow of the a Senior Advisor to the Ernst & Young Global Limited (EY) Harvard International Tax Program. He also attended the Global Delivery Services (GDS) Philippines. Management Development Program at the Asian Institute of Management. In June 30, 2017, Mr. Noel retired as Chairman and Managing Partner of SyCip Gorres Velayo & Co. (SGV), Directorship in other publicly listed companies: the Philippine member firm of EY. When he assumed the Security Bank Corporation; J.G. Summit Holdings, Inc.; and post as Chairman and Managing Partner from February 1, San Miguel Food and Beverage Inc. All of which are listed 2010 to December 31, 2016 and Managing Partner from on the Philippine Stock Exchange. January 2009 to December 31, 2016, SGV became part
39 Globe Telecom 2019 Integrated Report Corporate Governance
2019 was another stellar year under the ASEAN Corporate the top publicly listed companies for Globe Telecom’s corporate Governance Scorecard (ACGS), category. The company also received governance (CG) standards and presented by the country’s Institute recognition for the Best Investor initiatives. Last June 11, Globe of Corporate Directors (ICD). Relations Company in the Philippines Telecom received recognition as Globe Telecom was the only telco from the 9th Asian Excellence Awards a top-performing publicly listed recognized among six (6) others in of Corporate Governance Asia in July. company (PLC) in the Philippines
Globe Telecom’s Senior Vice President - Law and Compliance, Chief Compliance Officer, and Assistant Corporate Secretary, Atty. Marisalve Ciocson-Co, received the ACGS recognition on behalf of Globe. Beside Atty. Ciocson-Co are [left] Mr. Alfredo E. Pascual (President and Chief Executive Officer of the Institute of Corporate Directors) and [right] Atty. Emilio B. Aquino (Chairman of the Philippine Securities and Exchange Commission).
Notwithstanding the CG awards the Management, the officers, and all including the principal duties of the and recognition, Globe proactively of Globe’s employees commit to the members of the Board with emphasis adopts policies and practices that principles and best practices of CG on the governance structure, are beyond minimum requirements in the attainment of corporate goals composition, and diversity in the of applicable laws and regulations, aligned with the company’s strategic Board, ensuring that duties and and persevere to sustain good CG direction. responsibilities are performed in a standards embedded in our corporate manner that safeguards the interests culture and business conduct Globe’s CG practices are principally of the company and protects Globe’s alongside providing quality products contained in the Articles of stakeholders amidst an increasingly and services to our subscribers and Incorporation (AOI) and By-Laws, competitive environment. customers. Globe realizes its strategic complemented by the Manual influence in the capital market of Corporate Governance (MCG), Globe is likewise dedicated to and, thus, continues to balance its company policies, Committee maintaining the organization’s aggressive business environment charters, the Board’s charter, and compliance with the Securities with upholding a culture of good the Code of Conduct and Ethics and Exchange Commission’s (SEC) governance. (CoC). The AOI and By-Laws maintain Code of Corporate Governance, all the basic structure of CG while listing rules of the Philippine Stock As strong advocates of fairness, the MCG, charters, policies and Exchange (PSE) and other regulations accountability, transparency, integrity CoC act as supplements. These issued by the SEC, among other and sustainability in all aspects of legal documents outline the core regulatory agencies. An annual the business, the Board of Directors, of Globe’s operational framework Certification of Compliance with the
40 Fueling the power of connectedness company’s MCG is issued and signed continuous regulatory compliance, Globe does not discriminate by by the Chief Compliance Officer with CG enables Globe business to operate reason of gender, age, disability, the President and CEO. An annual aggressively while ensuring the ethnicity, nationality or political, Certification of Compliance with the interests of the company’s customers religious, or cultural backgrounds CoC is issued and signed by the Chief – internal and external stakeholders – on its directors or candidates for Human Resource Officer (CHRO). are protected and addressed. directors, officers and employees. These Certifications are also posted on Globe’s Board diversity policy remains the company website’s CG page and BOARD OF DIRECTORS up-to-date and enforced. As a result, included in this Report on page 166. the board members have different Board Composition expertise, corporate qualifications Globe also continues to align the The Board of Directors (Board) is and academic backgrounds. The company’s policies and practices with the supreme authority in matters directors have diverse professional the ASEAN Corporate Governance of governance and management backgrounds and experience in Scorecard (ACGS), which adopts over the business of Globe Telecom. various industries other than the telco international CG best practices and Within their chartered authority, industry such as law and litigation, standards including the CG principles the directors acting as a Board international tax, tax advisory and of the Organisation for Economic Co- have the fullest powers to regulate planning, tax advocacy, investment operation and Development (OECD). the concerns of the company and trade laws, accounting and The company website is maintained according to their best judgment. audit, finance and investment to ensure investor-friendliness and 11 board members are elected by management, sales and marketing, the convenient access of information the shareholders during Globe’s network operations, IT solutions, for all of Globe’s shareholders and Annual Stockholders’ Meeting (ASM) customer and services management, various stakeholders. The company and hold office for the ensuing year CG and strategic planning. The website contains comprehensive until the next ASM. The President directors also come from various information about Globe’s business, and Chief Executive Officer (CEO) educational backgrounds that products and services, disclosures and is elected as the sole executive include biochemistry, business reports, CG scorecard, surveys and director while the other members as administration, marketing and reports, press releases and an archive non-executive directors (NEDs) who finance, and metallurgical thereof, as well as the corporate are not involved in the day-to-day engineering, accountancy and law, policies, charters and manuals, vision, management of business. and mathematical sciences, among mission, core values, investor relations others. program, sustainability and corporate Among the board members are three social responsibility activities, (3) independent NEDs, one of whom The Globe Board has at least one among others. Globe ensures that all is the lead independent director (ID). (1) female independent director in information included in the company In 2019, Mr. Rex Ma. A. Mendoza the Board. The Board is composed website are accurate, relevant and was appointed the lead ID. Mr. of directors with a wide age range, up-to-date. Mendoza chaired the Nomination and from 40s to early 70s. None of the IDs Governance Committee as well as serve in more than five (5) boards of Globe’s MCG, likewise, complies the Compensation and Remuneration PLCs and have served the company with the SEC’s Code of CG and is Committee. Globe’s IDs, as defined in in the same capacity for more than aligned with the CG best practices the company’s MCG, are independent nine (9) years. The executive director espoused in the SEC’s Integrated of the company, from Management does not serve any other PLC’s Board. Annual CG Report (i-ACGR). The and major/substantial shareholders The board members also come from Charter of the Board of Directors and are free from any business or different ethnic backgrounds and and different Board Committee relationship that could materially are a mix of different nationalities. Charters undergo regular review interfere in their exercise of Apart from the Philippines, Globe has and enhancement in accordance independent judgment in carrying out a director from Singapore and the with the company’s MCG, the ACGS their responsibilities as directors. United States of America. and the SEC Code of CG, among other guidelines and regulatory Board Diversity and Skills Matrix issuances. Through keeping these As part of the company’s CG best CG structures effectively working practices and in implementation of and updated in place, coupled with the diversity policy in the workplace,
41 Globe Telecom 2019 Integrated Report Corporate Governance
Jaime Lang Fernando Jose Saw Cirilo Industry Knowledge/ Augusto Ernest Delfin L. Samba Romeo L. Rex Ma. A. Tao Yih, Zobel de Teodoro K. Phaik P. Zobel de L. Cu Lazaro Natarajan Bernardo Mendoza Experience Arthur Ayala Limcaoco Hwa Noel Ayala Technology/digital √ √ √ √ √ √ √ √ √ √ √ expertise Industry experience – √ √ √ √ √ √ √ √ √ √ √ Conglomerate Understanding of √ √ √ √ √ √ √ √ √ √ √ business environment
Telco experience √ √ √ √ √ √ √ √ √ √ √
Experience, Skills, Expertise
Local market experience √ √ √ √ √ √ √ √
Finance experience √ √ √ √ √ √ √ √ √ √
Finance and accounting √ √ √ √ √ expertise Business process √ outsourcing
Marketing √ √ √
Business management, strategy and √ √ √ √ √ √ √ √ √ √ √ administration
Legal and regulatory √
International expertise √ √ √ √ √ √ √
Audit and internal √ √ √ √ controls Business strategies and √ √ √ √ √ √ √ √ √ √ √ planning
Economics √ √ √
Engineering √ √ √
Financial investments √ √ √ √ √ √ and investment banking
Liberal Arts √
Biochemistry √
Sustainability and √ √ √ √ √ √ √ √ √ √ √ Corporate Governance
Board Diversity
Racial diversity √ √ √
Gender diversity √
Board tenure (years) 30 3 24 10 22 4 18 3 5* 4* 1*
Age (years old) 60 47 59 59 73 54 65 57 57 65 62
* For IDs, tenure as ID is reckoned from 2012 in compliance with SEC Memorandum Circular No. 9, Series of 2011
42 Fueling the power of connectedness Key roles and responsibilities and CoC. The Board also encourages Secretary, supported by the Assistant The Globe Board of Directors is the environmental concern, sustainability Corporate Secretary, presents all highest governance body in the and social responsibility among nominations to the Committee organization. The Board establishes Globe employees and stakeholders. together with profiles of each the company’s vision, mission, It motivates the company to nominee that include, among and strategic direction, as well as participate in domestic and regional others, their qualifications, expertise monitors the implementation of the CG forums, conferences, fellowships beneficial to the business, academic corporate strategy and the overall and initiatives. It is instrumental in and professional backgrounds and corporate performance of the encouraging sustainable development notable corporate exposures relevant company to ensure transparency, and empowering the organization for to Globe’s business. accountability, integrity and fairness, responsible business operations and and to protect the long-term interests working alongside local government Prior to the election of directors of all stakeholders. The Board, and other institutional partners at the ASM, the Nomination and through the Board Risk Oversight to contribute to solving complex Governance Committee, chaired Committee (BROC) with support from global challenges that may affect the by an ID, reviews the qualifications the various committees, also oversees company. The Board sets the tone of each nominee. In addition to the and conducts a review of the overall and makes a stand against corrupt qualifications and disqualifications risk management (RM) systems, practices reflected through Globe’s stated in the Board and Nomination and material controls, covering anti-corruption policy and program Policy, the Committee also considers operational, financial and compliance espoused in the Globe CoC coupled other factors in the evaluation of areas, and overall RM-related systems. with Globe’s whistleblower policy and nominee directors for election such Finally, the Board approves corporate channels. as record of integrity and good operation and capital budgets, major repute and ability to promote smooth acquisition and disposal of assets, The Board, in its decision-making interaction among Board members, major investments, and changes in function, is also encouraged to decide among others that are in accordance authority and approval limits. An with integrity, accountability and on with good CG principles and annual review of the Globe mission, behalf of the good interest of the standards as well as the Nomination vision, and values, together with the organization and all its stakeholders. and Governance Committee company’s business strategies, is Among relevant considerations Charter. As necessary, Globe uses conducted to stay relevant to the when carrying out its duties, the professional search firms or other growing needs of the business and Board is aware of its duty as the external sources of candidates (such stakeholders. The Board performed governing body of a public utility as director databases set-up by this exercise again in 2019. rendering public service. Meanwhile, director or shareholder bodies) when Management is entrusted with searching for candidates to the Board The thrust for a CG proactive business implementation and close monitoring of Directors. Furthermore, Globe’s culture emanates from the top. The of Board-approved business board diversity policy states that no Board, as part of its functions and strategies, and is likewise tasked to director or candidate for director responsibilities, leads, develops and conduct the company’s business shall be discriminated upon by reason reviews Globe’s strategic direction with the highest CG standards and of gender, age, disability, ethnicity, and business strategies regularly. The conduct. nationality or political, religious, or Board created various committees to cultural backgrounds. support Board functions and serve as Nomination and election of directors venues to discuss business strategies, The board members are highly The profiles of the nominee directors CG responsibilities and Globe’s qualified and have the ability to are also provided in Globe’s Definitive strategic direction, among other thoroughly examine issues and Information Statement (DIS or business matters. These committees matters that affect Globe’s business. SEC Form 20-IS), which is annually also serve as venues to discuss In accordance with Globe By-Laws, submitted to pertinent regulators, matters in relation to the specific MCG and company policies, any disseminated to shareholders and responsibilities of each committee. shareholder, including minority posted on the company website shareholders, may submit to the at least 28 days before annual In upholding good CG within Globe’s Nomination and Governance stockholders’ meetings (ASMs). The corporate culture, the Board also Committee the names of the profiles of the Board are included in adheres to its own Charter, as a nominees to the Board of Directors this report as well on pages 28-39. supplement to Globe’s By-Laws, MCG including the IDs. The Corporate
43 Globe Telecom 2019 Integrated Report Corporate Governance
Globe Telecom Board of Directors Director Position Nature of Appointment Jaime Augusto Zobel de Ayala Chairman Non-Executive Fernando Zobel de Ayala Co-Vice Chairman Non-Executive Lang Tao Yih, Arthur Co-Vice Chairman Non-Executive Ernest L. Cu Director, President and CEO Executive Delfin L. Lazaro Director Non-Executive Samba Natarajan Director Non-Executive Romeo L. Bernardo Director Non-Executive Jose Teodoro K. Limcaoco Director Non-Executive Rex Ma. A. Mendoza Lead Independent Director Non-Executive Saw Phaik Hwa Independent Director Non-Executive Cirilo P. Noel Independent Director Non-Executive
The full discussion of the procedures and criteria for election of the directors are included in the Globe By-Laws, MCG, company policies, and respective Board and Committee Charters. All of which are available on the company website.
Board Committees The Board may create committees as it deems necessary, in accordance with the company’s By-Laws, MCG, and Charter of the Board of Directors to support it in the performance of its functions and to aid in CG responsibilities, among others. The eleven Board members are also members of the different Board Committees created. Appointments of directors to their respective Committees are completed at the organizational meeting held after the ASM. There are six (6) Board Committees subject to the authority of the Board as a whole. These committees are the Executive Committee, Audit and Related Party Transactions (RPT) Committee, Compensation and Remuneration Committee, Nomination and Governance Committee, Finance Committee, and Board Risk Oversight Committee (BROC).
All the Committees have their own charters that are aligned with the objectives and responsibilities of each Committee. All charters are posted on the company website.
Board Committee Role Members Executive Provides guidance to management in: Chairman: (a) formulating the basic strategies for achieving targets set Jaime Augusto Zobel de Ayala by the Board; (NED) (b) putting in place the infrastructure for control and operational RM systems that assess risks on an integrated cross-functional approach, and review and Members: assess the adequacy of Globe Telecom’s operational Lang Tao Yih, Arthur (NED) RM process, specifically on strategic, technology, and Jose Teodoro K. Limcaoco operational risk, jointly with Management. This function (NED) shall include receiving from senior management periodic Ernest L. Cu (ED) information on risk exposures and RM activities; Samba Natarajan (NED) (c) considering and/or completing mergers, acquisitions and strategic investments; and, (d) undertaking strategic projects and significant transformation initiatives that include corporate governance campaign, regulatory compliance and sustainability programs.
44 Fueling the power of connectedness Audit and Related Provides assistance to the Board of Directors in fulfilling its Chairman: Party Transactions oversight responsibility to the shareholders relating to: Cirilo P. Noel (NED, ID) (ARPT) (a) the integrity of the financial statements and the disclosures; financial reporting process and principles; Members: (b) internal controls; Saw Phaik Hwa (NED, ID) (c) policies and processes on external/independent auditor’s Rex Ma. A. Mendoza* (NED, ID) appointment, enhancing independence and audit quality, Romeo L. Bernardo (NED) remuneration, and assessment of performance of the external auditors; (d) adequacy and effectiveness of the internal audit function; (e) compliance with legal, regulatory, and corporate governance requirements; (f) assessment, review, approval and disclosure of related party transactions according to Globe Telecom’s RPT policy.
Compensation and Provides assistance to the Board of Directors in governance Chairman: Remuneration matters relating to compensation and benefits of directors, Rex Ma. A. Mendoza* (NED, ID) key officers, personnel, and other employees of Globe. Members: Fernando Zobel de Ayala (NED) Lang Tao Yih, Arthur (NED) Saw Phaik Hwa (NED, ID) Cirilo P. Noel (NED, ID)
Nomination and Provides assistance to the Board of Directors in relation to: Chairman: Governance (a) installing and maintaining a process to ensure that all Rex Ma. A. Mendoza* (NED, ID) directors to be nominated for election at the next Annual Regular Stockholders' Meeting have the qualifications Members: and none of the disqualifications for directors stated in Saw Phaik Hwa (NED, ID) the company's By-Laws, MCG and in relevant laws, rules Cirilo P. Noel (NED, ID) and regulations; (b) selecting a mix of competent directors, each of whom can add value and create independent judgment as to the formulation of sound corporate strategies and policies; and (c) previewing and evaluating the qualifications of all persons nominated to positions in the corporation, which require appointment by the Board.
Finance Oversees Globe’s financial policy and strategy, including Chairman: capital structure, dividend policy, acquisitions and Delfin L. Lazaro (NED) divestments, treasury activities, tax strategy and compliance, retirement fund contributions, and financing proposals Members: brought to the Board of Directors for approval. Fernando Zobel de Ayala (NED) Romeo L. Bernardo (NED) Samba Natarajan (NED)
45 Globe Telecom 2019 Integrated Report Corporate Governance
Board Committee Role Members Board Risk Provides assistance to the Board of Directors in relation to Chairman: Oversight risk governance in Globe, which include, among others: Saw Phaik Hwa (NED, ID) Committee (a) ensuring that there is an effective, efficient and (BROC) integrated risk management (RM) process working in Members: place; Rex Ma. A. Mendoza* (NED, ID) (b) enabling the identification, analysis, and assessment of Romeo L. Bernardo (NED) key risk exposures, its impact to Globe’s strategic and Cirilo P. Noel (NED, ID) business objectives, as well as the formulation of an effective RM strategy; (c) cultivating of a sound organizational structure with an effective enterprise RM (ERM) framework working in place; (d) establishing clear definition of risk-taking authority, ownership, accountability, and proper segregation of duties; and, (e) fostering a risk-aware culture that is pervasive throughout Globe and ensure transparency in reporting of key risks to relevant stakeholders.
* Lead ID Notes: Non-Executive Director (NED), Independent Director (ID)
Board Meetings and Attendance Board meetings are scheduled before the start of the financial year and the schedule is posted under the CG section of the company website. Committee meetings are scheduled by the respective Committees. Consultation with, reports from and discussion with Management on specific financial and operational matters take place as needed. In accordance with CG best practice and the Globe MCG, the Board receives board documents and materials containing reports on Globe’s strategic, operational, and financial performance, and other regulatory and relevant matters, at least seven (7) business days in advance of Board meetings.
In 2019, the Board of Directors had a total of seven (7) Board meetings. Attendance of each director in Board meetings held in 2019 is enumerated below:
Attendance of Board of Directors 2019 Board Member Meetings Attended Meetings held Percent Present Jaime Augusto Zobel de Ayala 7 7 100% Lang Tao Yih, Arthur 7 7 100% Fernando Zobel de Ayala 7 7 100% Ernest L. Cu 7 7 100% Romeo L. Bernardo 7 7 100% Samba Natarajan 6 7 86% Delfin L. Lazaro 6 7 86% Jose Teodoro K. Limcaoco 7 7 100% Rex Ma. A. Mendoza 7 7 100% Saw Phaik Hwa 7 7 100% Cirilo P. Noel 6 7 86%
46 Fueling the power of connectedness The average rate of attendance of the Board of Directors was ninety-six percent (96%) in 2019, which is more than compliant with the SEC’s minimum attendance requirement of fifty percent (50%). Meanwhile, the average attendance rate of the IDs was ninety-five percent (95%) for the same year.
The attendance of each Director according to their respective Committee meetings is enumerated below:
Total Meetings Board Committee Members Present Absent 8 Executive Jaime Augusto Zobel de Ayala 8 - Lang Tao Yih, Arthur 7 1 Jose Teodoro K. Limcaoco 7 1 Ernest L. Cu 8 - Samba Natarajan 7 1 4 Audit and Related Party Cirilo P. Noel 4 - Transactions Saw Phaik Hwa 4 - Rex Ma. A. Mendoza 4 - Romeo L. Bernardo 3 1 3 Compensation and Remuneration Rex Ma. A. Mendoza 3 - Fernando Zobel de Ayala 2 1 Lang Tao Yih, Arthur 2 1 Saw Phaik Hwa 3 - Cirilo P. Noel 3 - 5 Nomination and Governance Rex Ma. A. Mendoza 5 - Saw Phaik Hwa 5 - Cirilo P. Noel 4 1 5 Finance Delfin L. Lazaro 5 - Fernando Zobel de Ayala 3 2 Romeo L. Bernardo 5 - Samba Natarajan 4 1 2 Board Risk Oversight Saw Phaik Hwa 2 - Rex Ma. A. Mendoza 2 - Romeo L. Bernardo 1 1 Cirilo P. Noel 2 -
Discussions with independent views adviser to directors regarding their as directors and members of during meetings are encouraged, responsibilities and obligations, and committees of the Board of Directors. given due consideration and properly oversees the flow of information documented through the minutes of prior to meetings. The Board is also Globe Telecom’s directors receive meetings. assisted by the Chief Compliance P200,000 per diem remuneration Officer to ensure regulatory for every Board meeting and The NEDs also meet separately compliance and sustain engagement stockholders’ meeting attended. This during the year without any on CG-related matters, among other rate was based on a benchmark study executives present. The NEDs held duties and responsibilities. against industry rates as well as a their meeting in December, which was previous study in 2010 to standardize led by Mr. Rex Ma. A. Mendoza, the Board Remuneration the pay of Board of Directors across lead ID. All NEDs were present at the The Board’s remuneration is set the Ayala Companies. Per diem meeting. Among the agenda items at an optimum level to attract remuneration of directors remains covered during the meeting were and retain high caliber directors at P100,000 for every committee updates on talent management, and a who continuously and effectively meeting attended or such meetings discussion on sustainability. deliver services. In accordance with other than those mentioned above. Globe’s By-Laws, the Board may Globe’s stockholders ratified this The Board has access to the receive, pursuant to a resolution resolution at the regular ASM in Corporate Secretary who, among his of the stockholders, fees and other April 2014. duties and responsibilities, acts as compensation for their services
47 Globe Telecom 2019 Integrated Report Corporate Governance
In accordance with the MCG and the director’s attendance at Board and place dedicated to evaluating and Charter of the Board of Directors, no committee meetings, participation in discussing matters concerning the director participates in discussions or boardroom discussions, and manner Board, including evaluating Globe’s deliberations involving his/her own of voting on material issues. performance and an independent remuneration. The directors, including review of its Management team. the IDs, do not receive options, The self-assessment exercise, through performance shares or bonuses other a self-assessment questionnaire, is There is likewise an annual strategy than their per diem remuneration as given to each director to ensure the workshop held at the beginning of directors. Meanwhile, the executive effectiveness of their governance, the year to discuss Globe’s strategic director does not receive per diem to reflect on the performance of top direction for the entire year. remuneration in addition to his management including the President remuneration as part of the Globe and CEO, to highlight specific Training and Continuing senior management in his role as the strengths, and to identify areas of Education Program President and CEO. improvement. It also provides a venue To execute their roles well, training for the Board members to identify on CG is given to directors prior The following NEDs, who were priorities for the Board and the to assuming office. This is also elected at the ASM on April 23, company for the succeeding year. The institutionalized in the MCG and received gross per diem remuneration assessment is comprised of appraisal Charter of the Board. The Board, for attending Board and Committee of the Board, of individual directors, of together with the key officers, meetings in 2019: the different Board Committees, the also actively attend training Management and of the Chairman of programs annually to keep abreast Gross Per Diem the Board. of updates in CG standards and Remuneration relevant discussions to support their Director (in Php) The questionnaire covers a leadership roles in Globe that cover issues and relevant market trends, Jaime Augusto 2,200,000.00 thorough evaluation criteria new laws and regulations that can Zobel de Ayala focused on structure, efficiency, and effectiveness of the Board, affect the business, sustainability and Lang Tao Yih, 2,300,000.00 participation and engagement of CG matters, among others. Arthur each Board member, contribution Fernando Zobel 1,900,000.00 of each Board member to their The directors and key officers de Ayala respective Committees as well as attended various CG seminars Delfin A. Lazaro 1,700,000.00 the performance of Management conducted by SEC-accredited CG Samba Natarajan 2,300,000.00 and the Chairman of the Board. The training providers throughout 2019. Jose Teodoro K. 2,100,000.00 criteria also reflect the specific duties, On June 28, a couple key officers Limcaoco responsibilities, and accountabilities participated in a CG seminar series of each Board member assessed with an esteemed list of speakers Romeo L. 2,300,000.00 in line with Globe By-Laws, MCG, conducted by the Philippine Institute Bernardo Charters and governing policies. For of Corporate Directors (ICD), a SEC- Rex Ma. A. 2,800,000.00 transparency and an additional layer accredited CG training provider. Topics Mendoza of feedback mechanism for Globe discussed during the seminar included Saw Phaik Hwa 2,500,000.00 shareholders, the questionnaire culture of innovation and technology, Cirilo P. Noel 2,800,000.00 criteria is posted on the company and culture and corruption. On TOTAL 22,900,000.00 website. August 9, members of the Board and the key officers attended the first Board Performance The self-assessment exercise is Integrated CG, RM and Sustainability The Board values inputs and facilitated by the Chief Compliance Summit conducted by the Ayala suggestions that feedback Officer. Every three (3) years, the Group in collaboration with the mechanisms provide to assist them assessment shall also be supported ICD. The Summit was a whole-day as they reflect on their performance by an external facilitator selected event of CGRM and Sustainability- as individual directors and as a for this purpose. Aon Hewitt Pte Ltd. related plenary sessions and panel governing body. As such, the Board is the external facilitator engaged discussions. Topics and discussions of Directors participates in an by Globe to support the self- during the event included the launch annual self-assessment exercise assessment exercise for the Board of of the Group’s Sustainability plans to assess their individual and Directors covering their performance and blueprint, updates from the collective performance. This exercise and service for the year 2019. An Securities and Exchange Commission, also provides a means to assess a annual executive session also takes task force on climate-related
48 Fueling the power of connectedness financial disclosures (TCFD) and November 6, which was conducted by annually. Globe programs, practices reporting, impact investing, and Risks, Opportunities, Assessment and and activities implementing company market trends and sustainability. Management (ROAM), another SEC- policies and standards on employee The afternoon program featured accredited CG training provider. The training and development are also plenary sessions specific to CG, RM seminar program included discussions included in this Report. and Sustainability. The CG sessions on SEC and other CG-related were on how boards tackle CG trends, regulatory updates, sustainability MANAGEMENT priorities and challenges, and on reporting guidelines for publicly listed accountability, stewardship, and value companies, the Revised Corporation The President and CEO is accountable creation. Meanwhile, the RM sessions Code of the Philippines released to the Board for the development discussed brand management and this year, ease of doing business and and recommendation of strategies, reputation risk in times of crisis efficient government service delivery and the execution of the defined as well as measuring its impact to act, case studies of recent corporate strategic imperatives. Through the organizations and understanding scandals, economic statistics, Board and Executive Committee, the alternative risk transfer solutions. Data Privacy Act compliance, and President and CEO is able to update The Sustainability sessions included CG global and regional trends for and inform the Board of Globe’s Morgan Stanley Capital International the year. business strategies and plans, CG (MSCI) on sustainability and and sustainability initiatives and investors, and a discussion on why The attendance of the Board and key requirements, among other economic integrated reporting matters. Events, officers to the CG training programs matters relevant in the performance collaborations and partnerships such and seminars are properly and of the business. as this, within the conglomerate, timely disclosed through posting of manifest the stronghold of CG in the the Certificates of attendance and After ASMs, the newly-elected business’ governance framework. completion on the Globe website Board of Directors convenes an It is crucial to sustain this for the and the inclusion of the same in organizational meeting to set-up its long term such that all members of the company’s i-ACGR. All training board committees and appoint key the Globe community, its partners programs and seminars attended by officers. After the ASM on April 23, and stakeholders are able to benefit the directors and key officers fulfill the key officer appointments and from the initiatives and thrust of the compliance with the SEC directive for board committee members were CG culture. all key officers and members of the disclosed to pertinent regulators Board of publicly listed companies accordingly. An in-house CG seminar was also to attend a program on CG at least attended by other directors on
Globe Telecom Key Officers Name Position Ernest L. Cu President and Chief Executive Officer (CEO) Alberto M. de Larrazabal Chief Commercial Officer (CCO) Rosemarie Maniego-Eala Chief Finance Officer (CFO), Treasurer, and Chief Risk Officer (CRO) Carmina J. Herbosa Chief Audit Executive (CAE) Gil B. Genio Chief Technology and Information Officer (CTIO), and Chief Strategy Officer (CSO) Maria Aurora Sy-Manalang* Chief Information Officer (CIO) Rebecca V. Eclipse Chief Customer Experience Officer (CCEO) Renato M. Jiao Chief Human Resource Officer (CHRO) Vicente Froilan M. Castelo General Counsel Bernard P. Llamzon Executive Vice President – Channel Management Solomon M. Hermosura Corporate Secretary Marisalve Ciocson-Co Senior Vice President – Law and Compliance, Chief Compliance Officer, and Assistant Corporate Secretary
*Effective January 1, 2020, Carlomagno E. Malana has been appointed as Chief Information Officer while Ms. Sy-Manalang will assume a new role in GFI as Chief Technology and Operations Officer. 49 Globe Telecom 2019 Integrated Report Corporate Governance
The President and CEO is assisted by the senior management. The Chief Audit Executive (CAE) assists in discussions with and updates to the Board through the Audit and RPT Committee while the CRO, Treasurer, and CDO reports and updates through the Finance Committee, Audit and RPT Committee, and BROC. Meanwhile, the Chief Compliance Officer assists the President and CEO to the Board through the Nomination and Governance Committee and Executive Committee with regard to CG, compliance, and sustainability strategies and matters. Support from the CHRO is most evident in the Compensation and Remuneration Committee. The General Counsel provides high-level legal consultation and updates to the Board together with the Corporate Secretary. Other executive officers are invited during Board and Board Committee meetings as necessary.
Ernest L. Cu President and CEO
Rebecca V. Vicente Renato M. Gil B. Genio Rosemarie Alberto M. Carmina J. Eclipse Froilan M. Jiao Chief Information Maniego-Eala de Larrazabal Herbosa Chief Customer Castelo Chief Human and Technology Chief Finance Chief Chief Audit Experience General Resource Officer, and Officer, Commercial Executive Officer Counsel Officer Chief Strategy Treasurer, and Officer Officer Chief Risk Officer
Marisalve Maria Aurora Bernard P. Ciocson-Co Sy-Manalang* Llamzon Senior Chief Information Executive Vice President - Officer Vice President - Law and Compliance, Channel Chief Compliance Officer, Management and Assistant Corporate Secretary
*Effective January 1, 2020, Carlomagno E. Malana has been appointed as Chief Information Officer while Ms. Sy-Manalang will assume a new role in GFI as Chief Technology and Operations Officer.
50 Fueling the power of connectedness Meanwhile, the Chief Sustainability In addition, the Office of Strategy Corporate Objectives Officer (CSO), Ms. Maria Yolanda C. Management (OSM) reports to the Globe is not simply a telco company. Crisanto, was appointed to monitor President and CEO and oversees Globe is an organization that creates and report on the environmental, Globe’s strategy management and enables digital life for the sustainability and social impacts of processes from strategy formulation Philippines, so Filipinos can access the business operations. Ms. Crisanto to execution and performance choices, overcome challenges, and and the Sustainability team also tracking linked to the company’s discover new ways to enjoy life. Globe help ensure that Globe continues rewards system. Globe reviews achieves this through obsessing to do its part in recognizing Globe’s and formulates the company’s about its customers, digitally environmental and social impacts strategic priorities annually, which transforming businesses, building the as well as in maintaining the then guide the formulation of the network of choice, and empowering company’s commitment to carrying key business strategies and goals its people. Globe continues to out responsible business operations. for the year. Using the balanced provide meaningful support to all its The CSO also reviews economic scorecard framework, each business stakeholders and creates wonderful aspects, environmental and social group identifies financial and non- channels to the digital lifestyle for aspects for the annual Integrated financial objectives, and sets targets Filipinos and all stakeholders. Report. Part of Ms. Crisanto’s duties and initiatives to achieve them as and responsibilities as the CSO is to reflected in the groups’ terms of The strong thrust towards communicate sustainability concerns reference (TOR). To ensure line of information and communications and initiatives from the management sight, the group TORs are cascaded technology (ICT) infrastructure to the Board through the President to all employees, making sure growth and network upgrades and CEO, who empowers Globe’s that everyone understands and continued in 2019. Globe followed advocacy for sustainability and appreciates their contribution to the through with the building and CG. The CSO is also Globe’s Senior group goals. deployment of cellular towers in Vice President for Corporate the country throughout the year, Communications, who reports directly Key programs, projects, and major spending roughly 45% of its annual to the President and CEO and is part organizational initiatives are taken income on telco infrastructure. of senior management. up by the senior management, composed of the President and CEO, The company continues to believe Supporting the office of the CTIO and the heads of each major business that providing data services is and CSO, the Data Protection Officer units and support groups. All budgets crucial towards true progress. Globe (DPO), Atty. Irish Krystle Almeida, and major capital expenditures must will continue to push its network performs her function in accordance be approved in accordance with expansion to meet its customers’ with Philippine Republic Act 10173 Globe’s limits of authority and by growing demand for data. The or the Data Privacy Act of 2012 and the CEO prior to endorsement to company committed to spending its relevant implementing rules and the Board for approval. The senior P63.0 billion in capital expenditures circulars. As DPO, she also functions management consults with the chief in 2020, which includes spillover of as the key liaison with the National advisors to provide sound inputs and CAPEX commitments from 2019. Privacy Commission. Mr. Anton advice as required. They all meet at Globe is set to fulfill its commitment Reynaldo M. Bonifacio, the Chief least once a week. to provide two million homes with at Information Security Officer (CISO), least 10 Mbps connectivity by the end leads the Information Security and Management is mandated to provide of 2020. Data Privacy Division (ISDP), which complete and accurate information is a fully-operationalized group that on Globe’s operations and affairs Remuneration of Executive Director focuses on Globe’s data privacy and in a timely manner. Management is and Senior Management cybersecurity matters. The Board, also required to prepare financial Globe’s remuneration philosophy, through the ARPT Committee and statements for each preceding policy and framework is designed to the BROC, is provided regular updates financial year in accordance with attract, retain and engage talents. It on information security and data Philippine Financial Reporting is designed to support the business privacy matters by the CISO to ensure Standards (PFRS). Management’s strategies and enhance value of the that cyber risks and technology or statement of responsibility with organization. The policy specifies the digital threats to the business and regard to the company’s financial relationship between remuneration the customers are prepared for, statements and the fair and truthful and performance, including but not addressed and managed effectively. preparation thereof is included in this limited to, specific financial and non- annual report. financial metrics.
51 Globe Telecom 2019 Integrated Report Corporate Governance
•• Encourage and nurture a strong Remuneration is also reviewed vis- experience that the employee brings performance-oriented culture; à-vis market rates and the financial into the company. The year-on- •• Recognize and reward talents who capability is considered for any year increases are determined by demonstrate and create value for incentive payout. Performance individual performances, prevailing the organization; evaluations for senior management market rates on annual salary •• Position the company as a were made according to these increases, pay positioning, economic preferred employer in providing considerations and in accordance indicators, and Globe Telecom’s compelling total rewards with the Charter of the Compensation financial capability. experience encompassing and Remuneration Committee. In continuous learning and 2018, the HR Group participated in Benefits development; Willis Towers Watson’s Compensation Globe benefits are consistent with •• Competitive and market-driven Survey as part of its enterprise-wide local market practice and are relevant compensation; remuneration benchmarking exercise. to meet the personal and family •• Pay for performance; and, needs of employees. Included here •• Core and innovative benefits to Current remuneration initiatives are medical benefits for in-patient meet personal and family needs. allow for certain incentives to be and out-patient care, life insurance, withheld or deferred in any year retirement benefits, club membership, In order to support the rewards should an executive fail to meet and car and car-related expenses. philosophy, the targeted reward performance requirements or be strategies are as follows: involved in any misconduct and are Short-Term Incentives given a disciplinary action resulting to (Performance Bonus) •• Adopt a total rewards approach, suspension or demotion. The short-term incentive plan using both the tangible and is Globe Telecom’s Variable Pay intangible aspects of rewards Remuneration Components Program for non-sales employees. to drive the Globe employment The remuneration structure of The incentive is determined by the experience Globe is composed of four (4) main achievement of performance targets •• Market driven to attract and retain components – Fixed Remuneration, that are set at the beginning of top talent in the business Benefits, Short Term Incentives the performance year. It considers •• Promote relevant reward programs (Performance Bonus) and Long Term delivery of corporate, business unit, that will be sensitive to employee Incentives. The structure is designed and individual performance targets lifecycles and experiences such that the variable component that are defined annually. This is •• Practice transparency, clarity, and increases as the employee moves usually paid out to employees within consistency in the reward delivery up in our corporate ladder. This only the second quarter of the year applies to the employees, including following the confirmation of all The benchmark for remuneration the executive director. Meanwhile, performance targets and individual is developed through a rigorous non-executive directors of the Board performance. review and evaluation by the Human receive per diem remuneration Resources (HR) Group according approved by the shareholders. The Corporate and Business unit targets to a comprehensive criteria that Compensation and Remuneration are financial/operational targets consider numerous factors including Committee establishes the formal set in order to support the overall market trends, employee roles in and transparent procedure for business goals and thereby increasing the organization, applicable laws developing policy on executive value as a company. This incentive and rules, and business competitors, remuneration and for fixing the plan drives employees to work among others. Through these annual remuneration packages of employees together towards achieving common sessions, the HR Group compares as provided in the Charter of the goals and encourages performance Globe remuneration criteria, Committee. in the company. The award size for packages and plans against top this incentive is differentiated by the companies across industries such Fixed Remuneration employee’s level such that higher as fast-moving consumer goods, The fixed remuneration is composed incentive multiple is at stake as the telecommunications, banking and of the base salary and is reflective of employee moves up the organization. financial services, to name a few. the value of the role in the prevailing These reviews also consider the market and the value of the role On the other hand, sales employees company as a whole, business units’ compared to the other roles in are part of the Sales Incentive contribution to the organization Globe Telecom. Other factors that Program. The incentive is determined and individual performance. come into play in the base salary are by the achievement of sales targets individual performance, qualifications, that are likewise set at the beginning
52 Fueling the power of connectedness of the performance year. It considers ACCOUNTABILITY AND AUDIT of management, as needed, based on delivery of business targets, typically, the meeting agenda. on revenue, acquisition etc. Similarly, To support the Board in the discharge the award size varies by employee of its functions, primarily on internal During these meetings: level and increases as the employee controls, material related party •• The Committee reviews the moves up the organization. transactions (RPTs) and other key financial statements and all corporate governance matters, it is related disclosures and reports Long-Term Incentive Plan the policy of Globe to constitute and prepared and presented by the The Long-Term Incentive Plan’s maintain a competent and working CFO and released to the public primary objective is to drive long term Audit and RPT Committee in fulfilling and/or submitted to the SEC for performance in a highly competitive their oversight responsibility to compliance with both the internal market by aligning management the shareholders relating to: a) the financial management handbook interest with the shareholders’ integrity of the financial statements and pertinent accounting interest. It also aims to motivate and disclosures, financial reporting standards, including regulatory participants to sustain high levels principles, processes, policies and requirements. The Committee, of contribution. Furthermore, it is systems; b) internal controls; c) after its review of the quarterly designed to attract and retain key policies and processes on external unaudited and annual audited executives whose contributions auditor’s appointment, enhancing consolidated financial statements are essential to Globe’s growth independence and audit quality, of Globe Telecom, Inc. and and profitability through a rewards remuneration, and assessment Subsidiaries, including key audit scheme that fosters a sense of of performance of the external/ matters, endorses these to the genuine loyalty among employees independent auditors; d) adequacy Board for approval. The Board and belongingness within the Globe and effectiveness of the internal audit of Directors, in turn, reviews, community thereby retaining these function; e) compliance with legal, approves and affirms the true and talents even after payouts are given regulatory, and corporate governance fair representation of the annual out. Lastly, the plan should propel requirements; and f) assessment, audited consolidated financial shareholder value through superior review, approval and disclosure statements and presents the same business performance driven by of related party transactions in the ASM. happy and satisfied employees. according to Globe Telecom’s RPT policy. Management however, has •• The Committee approves the work The incentive is delivered through primary responsibility for financial plan of Globe Internal Audit (IA), as a performance share, based plan statements and disclosures, financial well as the overall scope and work where it awards executives with reporting process, internal controls, plan of the external auditors. The company shares contingent upon the legal and regulatory compliance, Committee meets with the internal achievement of specified long-term and risk management. The Audit auditors and external auditors to goals over a specified performance and RPT Charter approved by the discuss the results of their audits, period. Board defines clearly the roles and ensuring that management is responsibilities of the Audit and RPT taking appropriate corrective The plan allows for overlapping Committee. actions on internal control issues performance periods to support and areas for improvement in a rolling multi-year business plans and The Audit and RPT Committee is timely manner. employee retention. It has a 3-year composed of four (4) directors, performance period to support three (3) are independent and non- •• The Committee ensures tenders business planning cycle. executive including the Chairman. for external audit services are The Board appoints all members of conducted every five (5) years, To ensure alignment of executives’ the Committee. or when the need arises as interest to that of Globe’s, the decided by the Audit and RPT plan includes a stock ownership The Audit and RPT Committee Committee. The Committee requirement where the executives meets at least four (4) times during recommends the appointment, are required to maintain shares the year and invites the President retention or discharge of the equivalent to 50 or 75 percent to and Chief Executive Officer (CEO), external auditors, reviews audit 100 percent of their annual base Chief Finance Officer (CFO) and fees or the remuneration of the salary, depending on the rank of the concurrently the Treasurer and Chief external auditors and endorses to executive and specific internal HR Risk Officer (CRO), external auditors, the full Board. The Board, in turn, policies. internal auditors, and other members submits the appointment of the
53 Globe Telecom 2019 Integrated Report Corporate Governance
external auditors and audit fees for Globe Telecom’s RPT Policy, and effectiveness. The CRO provides approval of the stockholders at the including write-off of exposures, the Audit and RPT Committee with ASM. The amount of audit fees is policies on conflicts of interest periodic reports on risk exposures disclosed in this Integrated Report. (COI) or potential COI to the and risk management activities Board of Directors and ensures by management, while Globe IA •• The Committee reviews the appropriate disclosure. Likewise, provides reasonable assurance on the external auditors’ performance the Committee oversees the effectiveness of internal controls and and assesses the external auditor’s implementation of the system for compliance systems and processes. qualifications, skills, resources, identifying, monitoring, measuring, effectiveness, and independence. controlling, and reporting RPTs, The Audit and RPT Committee To limit the possible risk of and periodically reviews RPT reports regularly to the Board of impairment of independence, policies and procedures. All Directors on our internal controls, the Committee also reviews and relevant RPTs were reported material RPTs, compliance, and other approves in advance, audit vs. to, reviewed, and approved by key corporate governance matters. non-audit services performed the Audit and RPT Committee by the external auditors, and last February 3, 2020. All RPTs With guidance provided by the Board, the corresponding fees paid, in are done at arm’s length and in management remains primarily relation to the SEC regulation on accordance with the RPT policy. responsible for the development and “permitted” vs. “not permitted” For a disclosure of the RPTs, implementation of risk management services and the significance of please refer to the 2019 Audited strategies, policies and systems. the fees to the external audit Consolidated Financial Statements. firm’s total service revenues and The Audit and RPT Committee Globe Telecom’s total consultancy The overall responsibility over reports after each meeting and expenses, respectively. our risk management oversight provides a copy of the minutes rests with the Board of Directors. of its meetings to the Board. To •• The Committee assesses the Various Board committees have ensure compliance with regulatory adequacy and effectiveness of been designated with oversight for requirements and assess the the internal audit function by specific risk areas. The Executive appropriateness of the existing reviewing and approving Globe Committee has oversight on Charter for enabling good corporate IA’s scope of work, authority, corporate strategic risks, technology, governance, the Audit and RPT independence, compliance to and operational risk management, Committee also reviews and assesses professional standards, reporting putting in place the infrastructure the adequacy of its Charter annually, relationships, key responsibilities, for risk management systems seeking Board approval for any and changes in their work plan. that assess risks on an integrated amendments. The most recent cross-functional approach; reviews Charter review and assessment was •• The Committee reviews the and assesses the adequacy of our done on August 1 and the Audit results of management’s annual strategic, technology, and operational and RPT Committee approved risk assessments based on risk management processes, jointly the retention of the existing reports provided by CRO covering with Management. The Finance Charter (approved by the Board on information on risk exposures and Committee oversees our financial risk August 2, 2019). risk management activities, and as management, including risks related supported by the results of internal to capital structure, acquisitions To ensure the Audit and RPT audit reviews. and divestments, treasury activities, Committee effectively fulfills its tax strategy and compliance. The responsibilities according to global •• The Committee reviews and Audit and RPT Committee provides best practices and expectations set discusses with management, the oversight of the financial reporting out in the approved charter, Globe internal and external auditors; and operational risks specifically on Telecom’s MCG, SEC Memo Circular and reports annually to the Board financial statement and reporting, No. 4 (Series of 2012), ACGS and SEC of Directors, the adequacy and internal controls, legal and Memo Circular 19 (Series of 2016) effectiveness of the company’s regulatory compliance, corporate or Code of Corporate Governance internal controls in all material governance, fraud risks and related for Publicly-Listed Companies, the respects. party transactions. The BROC was Committee conducts an assessment established and organized to assist of its performance and undergoes •• The Committee assesses, reviews, the Board for the oversight of our training, at least annually. The results approves and discloses all covered Enterprise Risk Management (ERM) of the assessment and any ensuing and material RPT defined in system to ensure its functionality action plans are reported to the Board.
54 Fueling the power of connectedness On an annual basis, our President and To perform its auditing functions Telecom’s Code of Conduct. The CAE CEO, CFO, and CAE provide a written effectively, Globe IA maintains its is responsible for overall conformance certification to the Audit and RPT independence from management and with the Standards. To assess Committee confirming the reliability controlling shareholders by reporting whether the purpose, authority and of financial statements for the year; functionally to the Board, through responsibility of internal audit, as full compliance with financial, legal the Audit and RPT Committee and defined in the IA Charter continue and regulatory requirements and administratively, to the President and to be adequate and effective in reporting; attestation on Globe CEO. The Audit and RPT Committee, enabling the internal audit function, Telecom’s sound internal controls and having appointed the CAE, also the CAE develops, maintains, and compliance system; and confirmation concurs in his/her replacement, communicates an appropriate and that the CAE reports functionally to reassignment, or dismissal. effective quality assurance and the Audit and RPT Committee and improvement program (QAIP) that administratively to the CEO allowing Working closely with the Audit and covers all aspects of internal audit Internal Audit to independently fulfill RPT Committee, the CAE maintains reviews and activities. The Audit its responsibilities. an effective internal audit function and RPT Committee also receives by managing the entire operations, periodic reports on the status of INTERNAL AUDIT and strongly supports the attainment internal audit activities, achievement of corporate objectives through of key performance indicators, and The establishment of an Internal coverage of the most critical QAIP. Globe IA periodically undergoes Audit (IA) function is a fundamental processes in the conduct of risk- an independent external Quality part of Globe Telecom’s CG practices based assurance reviews. The CAE Assurance Review (QAR) to ensure and policies. An IA Charter, approved reports the results of audit reviews consistent conformance with the by the Audit and RPT Committee/ and other activities in a manner that Standards. The last external QAR Board, establishes the mission, scope helps management take appropriate was done in 2018, where Globe IA of work, authority, independence, action on identified risks/issues obtained “Generally Conforms”, the compliance to professional standards, within a reasonable period of time. highest rating that can be given in an reporting relationships, and key Management remains primarily external QAR process. The Standards responsibilities of the IA function. responsible for resolving the risks/ require an external assessment at issues. The CAE continuously least once every five (5) years. IA is a service, providing an improves the internal audit operating independent and objective assurance process and standards and ensures Globe IA adopts a risk-based and consulting function within Globe strict compliance with International audit approach in developing its that shares our common goal of Standards for the Professional annual work plan ensuring that creating and enhancing shareholder Practice of Internal Auditing (the risks, mapped to eTOM (enhanced value and improving the company’s Standards) of the Institute of Internal telecommunications operations map) operations. This is done through a Auditors (IIA) and ensures alignment based processes, with integrated risk systematic, disciplined, and risk-based to global best practices. Among other assessments for processes across approach in evaluating and improving responsibilities, the CAE strengthens the enterprise, are captured in the the effectiveness of risk management, leadership and talent bench, uplifts audit universe. Globe IA’s annual control, and governance processes. performance management and work plan is reassessed quarterly Globe IA provides reasonable manages internal costs. or earlier to consider emerging assurance to the Board, management risks and the changing dynamics of and the stockholders on the Globe IA maintains, reviews, and the telecommunications business, adequacy and effectiveness of assesses the adequacy of its Charter thereby allowing maximum and controls encompassing Globe annually to ensure conformance with timely coverage of key/critical risk Telecom’s governance of the Standards and SEC regulations. areas. The Audit and RPT Committee operations, information systems, The result of the periodic assessment reviews and approves the annual work reliability and integrity of financial and any arising revisions are reviewed plan and all deviations. The Audit and management information, and approved by the Audit and RPT and RPT Committee also ensures effectiveness and efficiency of Committee, with concurrence by the that audit resources are allocated operational systems and processes, Board. The latest charter review was adequately and focused on the areas safeguarding of resources and performed on August 1. of highest risks. effective utilization, and compliance with laws, rules and regulations. Globe IA governs its internal audit To promote excellence, Globe IA activities in conformance with the provides for continuing professional IIA’s Code of Ethics, and Globe and personal development for all
55 Globe Telecom 2019 Integrated Report Corporate Governance
internal auditors to equip them in independence and improve its audit Globe Telecom, Inc. and Subsidiaries the conduct of reviews, with focus quality. The external auditors are (Globe Group) for the calendar year on acquiring expertise on Globe directly responsible to the Audit and 2019. NA/DP has been the external Telecom’s business processes, RPT Committee in helping ensure the auditor of Globe Group since 2015. In network and IT systems, internal integrity of the company’s financial accordance with regulations issued controls, new accounting and statements and reporting process. by the SEC and the Audit and RPT auditing standards, data analytics and Committee Charter, the audit partner regulatory updates. The audit team is The last tender bid process for the principally handling the company’s composed of professionally certified external auditor’s annual statutory account shall be rotated every five accountants, internal auditors, IT and audit was conducted in Q2 2019. (5) years or sooner. The most recent information security auditors, control The Audit and RPT Charter requires rotation occurred in 2019. self-assessors, licensed engineers, bid tenders every five (5) years or and data experts, among others. In as the need arises as decided by the There were no disagreements with addition, Globe IA has been actively Audit and RPT Committee. Annually, NA/DP on any matter of accounting participating in Ayala Group and the company conducts an external principles or practices, financial Singtel Internal Audit Networks auditors’ performance appraisal. statement disclosures, auditing scope and learning from international From the results, the Audit and RPT and procedures. knowledge and thought experts to Committee evaluates and proposes benchmark and adopt leading-edge to the Board for endorsement and Fees approved in connection with global best practices on methodology, approval of the stockholders, the the audit and audit-related services process improvement and audit tools appointment of the external auditors. rendered by NA/DP pursuant for digitalization to develop a team The endorsement is presented to to the regulatory and statutory of world class, multi-skilled, internal the stockholders for approval at the requirements for the years ended 31 audit professionals. ASM. Representatives of the external December 2019 and 2018 amounts auditors are expected to be present at to ₱20.16 million and ₱55.38 million To keep up with the dynamic risk the ASM to have the opportunity to respectively, inclusive of 7.5% out-of- environment and rapidly changing make a statement on the company’s pocket expenses (OPE). regulatory and industry requirements, financial statements and results Globe IA has also adopted of operations and be available to In addition to performing the audit of technology-driven audit processes respond to appropriate questions Globe Group’s financial statements such as Continuous Auditing (CA), during the meeting. and audit-related services, NA/DP was Robotics Process Automation also contracted to provide tax and (RPA), Simple, Digital, Agile (SDA) In line with Globe Telecom’s MCG, non-audit services in accordance with auditing, among others, to improve the Audit and RPT Committee has established procurement policies. overall audit efficiency and enhance an existing policy to review and organizational value. pre-approve the audit and non- The aggregate fees billed by NA/DP audit services rendered by Globe are shown below: Globe IA also continuously facilitates Group’s external auditors. It does not self-assessment activities among allow the Globe Group to engage 2019 2018 various business groups to aid the external auditors for non-audit (Amount in millions of Pesos) management and to foster increasing services prohibited expressly by Audit and Audit- ₱20.16 ₱55.38 controls awareness and maturity at SEC regulations to be performed by Related Fees* Globe. external auditors for its audit clients. Tax and Non- 30.52 6.89 This is to ensure that the external Audit Fees The Audit and RPT Committee auditors maintain the highest level of Total ₱50.68 ₱62.27 regards Internal Audit as a vital independence from the Globe Group, support in the effective discharge of both in fact and appearance. *Excludes 2019 audit fees rendered by external the Committee’s oversight role and auditors other than NA/DP: GTI HK, ₱730K (₱640K in 2018) performed by responsibilities. In the ASM last April 23, the Deloitte HK shareholders voted to appoint GT EU, ₱349K (₱249K in 2018) performed by EXTERNAL AUDIT the accounting firm of Navarro Wellden and Turnbull LLP Amper & Co./Deloitte Philippines GT SG, ₱304K (₱307K in 2018) performed by Ardent The Audit and RPT Committee (NA/DP), an affiliate of Deloitte Taodharma, Inc., ₱345K (₱288K in 2018) ensures that Globe has set Southeast Asia Ltd. (a member performed by Punongbayan and Araullo appropriate policies and processes firm of Deloitte Touche Tohmatsu ECPAY, Inc., ₱357K performed by Punongbayan that strengthen the external auditor’s Limited) as the external auditor of and Araullo
56 Fueling the power of connectedness Audit Fees represent audit of Globe including, but not limited to, conflict •• Continuously assess all health and Group’s annual financial statements of interest, whistleblowing, insider safety hazards in the workplace and review of quarterly financial trading, RPTs, anti-corruption, and provide programs towards its statements in connection with protection of intellectual property eliminations; statutory and regulatory filings or rights and data privacy, and health, •• Comply with all occupational engagements for the years ended safety and welfare of employees. safety and health news and 2019 and 2018. Globe also has existing formal policies regulations applicable to telco concerning unethical, corrupt, and business; Audit-related Fees. NA/DP was not other prohibited practices covering •• Train and motivate employees engaged to perform audit-related its employees, Management and to work in a safe manner and services for 2019. Audit-related fees members of the Board. These policies encourage business partners to in 2018 represent quality assurance serve as guide to matters involving adopt these principles; review of data clean-up activity work performance, dealings with •• Report occupational safety performed by a third party for Globe. employees, dealings with customers and health performance to and suppliers, handling of assets, stakeholders; Tax Fees in 2019 amounting to ₱0.78 records and information, avoidance •• Conduct a regular review of million refers to tax advisory services of conflict of interest situations management systems to ensure for Kickstart Ventures, Inc. There were and corrupt practices, as well as that the commitments of this no tax fees incurred for 2018. the reporting and handling of policy are being delivered and that complaints from whistleblowers. the same are included in Globe’s Non-Audit Fees represent These documents support and assist continual improvement. services rendered for the Finance maintain the balance of business Transformation and Ariba Phase 2 and governance in Globe. These are Globe programs, practices and projects in 2019, totalling ₱29.74 also on the company website, under activities implementing policies and million. Non-audit fees in 2018 ‘Company Policies’ (https://www. standards on employee welfare, pertain to services rendered in globe.com.ph/about-us/corporate- health and safety are also included in relation to the adoption of Philippine governance/company-policies.html), this report. Financial Reporting Standards (PFRS) for the reference of investors and 16: Leases which includes trainings, other stakeholders. Rewards or Compensation Policy impact assessment, advisory services Globe attracts, retains and (e.g., guidance and recommendations Customer Welfare engages talents to support its with regard to its implementation) Globe puts customers first. Globe business strategies and enhance and agreed-upon procedures truly makes a difference through value of the organization through on data gathering from existing superior, end-to-end customer its remuneration philosophy lease contracts as part of the pre- experience brought to life by a and framework. Globe puts a implementation activities. genuine culture of service and caring. premium on workplace diversity, Service is embedded into Globe just compensation and benefits, NA/DP has confirmed to the culture, as well as with the company’s engagement, safety and well-being, Committee that the 2019 non- vendor partners, sustaining the human rights, and continue to audit services rendered by them are momentum of Globe’s Circle of promote learning for every employee. allowed to be provided to an audit Happiness where happy employees client under existing SEC regulations create happy customers. Policy on Suppliers and Vendor Audit and the Code of Ethics of Professional Globe follows socially responsible Accountants in the Philippines Employee Welfare, procurement practices for vendors. and do not conflict with their role Health and Safety The team maximizes value through as Independent Auditors of the Globe is committed to provide the commodity management, selection company. best protection for the health and of best-in-class suppliers, and pursuit safety of all employees. The same is of process excellence in procurement ETHICS AND INTEGRITY done to the communities surrounding and supply chain management. its operations. It is Management’s Vendor partners undergo a Globe respects the rights of all its primary objective and the employee’s comprehensive accreditation process stakeholders, including minority individual and collective responsibility which includes assessment of shareholders. Globe has adopted to meet this commitment. To this end, their legal, technical, and financial its CoC, and promulgated policies Globe shall: capability from business continuity
57 Globe Telecom 2019 Integrated Report Corporate Governance
to conflict of interest, safety, health, standards contained therein. Globe translate principles into effective and environmental policies. Grounded expects that the principles apply to actions and shares best practices on the practice of fair, ethical and vendors, their parent entities and relating to social responsibility, governance policies, opportunity is subsidiaries or affiliated entities, and globally. equitably provided to the appropriate with other entities with whom they suppliers through competitive do business including employees, Conflict of Interest bidding and auctions. Proposals are suppliers, subcontractors, and other Globe is above board and, at all times, evaluated on the basis of best-value parties. exercises discretion, prudence, and including a consideration of their mature judgement when entering environmental and social policies and Environmental Sustainability Policy transactions for the company. In practices. Given equivalent proposals, Globe is committed to promote carrying out their duties with preference for purchase award is environmental sustainability integrity and in the interest of the given to local suppliers. by reducing the impact of the company, it is the duty of board company’s business operations to members to withdraw themselves Relationships with suppliers are also the environment and the company from discussions that put them in a highly valued, with each considered a continues to achieve this together conflicted situation. This is likewise business partner. Globe continues to with the help of its employees, reiterated in the Charter of the Board recognize and foster strong business business partners, and clients. Globe of Directors. In the same manner, relations with its partners through has robust systems in place to it is the obligation of every regular the Business Partner Awards. Vendors manage its environmental impact and employee, officer and director of also provide learning opportunity integrate these into the company’s Globe and its subsidiaries, including through plant visits and technology corporate social responsibility consultants/project hires seconded briefings. Conversely, Vendor Clinics management. to or engaged on a full-time basis are initiated for selected vendors to by Globe, to declare and divulge in help improve their performance and Community Interaction writing to the company their own competitiveness. Through Globe Bridging involvement in any conflict of interest Communities, the Corporate Social with the company. The CoC provides As strong advocates of fairness, Responsibility (CSR) platform for the definition, guidelines and accountability, transparency, and of Globe, and its subsidiaries, procedures, including the reportorial integrity in all aspects of the business, the company aims to transform of any such circumstance, involving Globe commits to the principles and underserved communities nationwide conflict of interest. best practices of CG and responsibility through relevant and innovative in the attainment of the company’s solutions that harness the power of In general, conflict of interest will be corporate goals and strategic collaboration and inclusivity through deemed to exist where an employee direction. information and communications has or may possibly have a financial technology. The objective is to or personal interest divergent with Furthermore, Globe recognizes the provide opportunities to partake or in conflict with his professional importance of institutionalizing of the digital economy by creating obligations, or where financial or practices in the pursuit of its goals. shared value across all employees, other personal considerations may The Globe Supplier Code of Ethics customers, and stakeholders in compromise, or have the appearance establishes standards of quality areas where the company operates. of compromising the employee’s and business integrity to ensure As the business continues to grow, judgment in the administration, that working conditions are safe, the company contributes to nation- management, decision-making, and workers are treated with respect and building with an engaged and discharge of his official functions. dignity that business operations are empowered workforce committed to Personal interest is not confined environmentally responsible and do a Globe of Good. to the personal involvement of conducted ethically. the employee himself-- it may also The company adopts best practices arise from the employee’s family or The Supplier Code of Ethics shall of ISO 26000 Social Responsibility close personal relationship with a be applicable to all vendors of the and a governance framework using contractor, sub-contractor, customer, Globe Group of companies. Globe the Social Return on Investment competitor, creditor, or any other expects its vendors to acknowledge (SROI) model for its community entity that does business with the and actively support the Code and relations and CSR efforts. ISO 26000 company. to continually seek to conform to the helps businesses and organizations
58 Fueling the power of connectedness Globe HR Group requires all the company are subject to and portal, and receives, collates and employees to submit annually the conducts its business in accordance submits all disclosure reports to the Related Party Disclosure Form, with ethical standards. All Globe proper Globe Disclosure Committee. regardless if an employee has any officers and employees, and all The Portal Administrator shall send a declaration or none. suppliers and business partners, are notice to the whistleblower that the thus required to observe and practice report has been received and that Anti-corruption high standards of business and it shall be processed in accordance The employee, by virtue of his or personal ethics in the conduct of their with the Whistleblower Policy. There her employment, is bound not to duties and responsibilities. are different Disclosure Committees betray that trust by seeking to gain identified to keep the integrity of any undue personal or pecuniary Globe Telecom’s whistleblower policy reports received. The whistleblower advantage (other than the rightful provides various channels, which policy and processes relevant thereto proceeds of employment) from his include a hotline, portal, an e-mail are available through the company dealings with or for and in behalf of address as well as designated group, website, under ‘Company Policies’ Globe. that allow, employees, suppliers, and (https://www.globe.com.ph/about-us/ even third parties to report suspected corporate-governance/company- Globe employees maintain the violations by employees, officers and policies.html). highest standards of honesty and directors, and suppliers and partners professional conduct. Seeking undue of company policies on improper Insider Trading financial and material advantage from activities, and other violations of All directors and key officers are transactions with Globe is a breach the company’s Code of Conduct or required, within three (3) trading days of trust between the employee and the company’s ethical standards. upon any change in their ownership the company. Corruption is identified In 2019, the HR also updated the of Globe securities, to submit their under Category 4 of the Level of whistleblower policy and launched statement of changes of ownership Offenses under Globe’s CoC, which the Globe Whistleblower Network in relation to their trades to the are serious and grave offenses that Facility (GWeN Portal), an online Office of the Chief Compliance are considered severe and warrant facility digitalizing whistleblower Officer for immediate submission and Dismissal. reports, administration of reports and disclosure to pertinent regulators. communication with whistleblowers. All Covered Persons are required to As part of the anti-corruption Among other channels, reports or report their trades to the Office of the programs and initiatives of the concerns may also be sent via e-mail Compliance Officer on a regular basis. company, employees are reminded through gt_whistleblower@globe. through internal communications com.ph or the Hotline 09178189934. Globe restricts trading of securities channel to fill out various disclosure The company aims to provide (buying or selling) by covered persons forms especially during national feedback within twenty-four (24) considered to have knowledge of festivities. The form is submitted hours upon receipt of the e-mail. material non-public information, to the employees’ respective group All reports, issues, concerns and/or during the blackout period, except heads who will decide whether the grievances submitted to the company in accordance with this policy. The gift shall be returned or kept by will be treated with confidentiality to company’s insider trading policy the employee or be surrendered to ensure the safety of the whistleblower identifies the covered persons in Human Resources Group for possible and parties involved. The identity and relation to this matter. use during company events. source of the information are likewise protected to the extent required Globe prohibits key officers, Globe also conducts periodic lectures by law. employees and other covered persons and seminars on anti-corruption with access to material non-public initiatives through the Human These are by no means the only information, including information Resources Group for all employees. channels by which disclosures may be on the quarterly results and other The same is also included in the received. Persons or units within the regular reports in the course of its on-boarding orientation program organization who receive disclosures review and preparation, from trading attended by new employees. shall forward or relay the disclosures in company shares 5 trading days to the GWeN Portal. Reports may also before and 2 trading days after any Whistle-blowing be submitted via the dedicated e-mail structured report or disclosure, and Globe is committed to compliance address or the hotline. The Complaint 2 trading days after an unstructured with laws and regulations to which Administrator administrates the report or disclosure.
59 Globe Telecom 2019 Integrated Report Corporate Governance
Related Party Transactions (RPTs) its shareholders’, and all other Management and Discussion Analysis Globe discloses, reviews, and stakeholders’, and that the RPTs are and Financial Statements on a approves RPTs, in accordance with executed with fair and transparent periodic basis that allow the creditors the principles of transparency and terms prior to endorsement to the to continuously evaluate and monitor fairness, to ensure that they are at Board for approval. In the review the company’s performance and arm’s length, the terms are fair, and of RPTs, the Committee considers, credit standing. they will inure to the best interest among others, the terms of the of the company, its subsidiaries transaction, the aggregate value of Moreover, Globe adopted an or affiliates and all shareholders. the transaction, purpose and timing expanded CG approach in managing Together with the other company of the transaction, the fairness of business risks. A strong and strictly- policies, the Policy on RPTs is the terms of the transaction, the implemented Enterprise Risk posted on the company website and extent of Related Party’s interest in Management Policy provides a better embedded in the MCG and CoC. the transaction, and other material understanding of the different risks information or factors the Committee that could threaten the achievement RPTs are disclosed in the financial may deem relevant. of the company’s vision, mission, statements included in the company’s strategies, and goals. The policy also annual reports, and other applicable Non-compliance with any of the highlights the vital role that each filings in accordance with the relevant provisions of the policy on RPT shall individual plays in the organization rules and issuances of the SEC and result in the nullification of any from senior management to staff in other applicable regulatory bodies. agreement or contract involved in managing risks and in ensuring that The disclosure includes, but is not the execution of the RPT. A director, the company’s business objectives limited to, the name of the related officer, employee, or Related Party are attained. With this, it assures party, relationship with the company is subject to the corresponding the creditors that Globe is proactive for each RPT, the nature, and value procedures and penalties under in managing company risks and for each RPT. Such disclosure is Globe’s CoC and relevant laws, as are committed to sustaining the also made publicly available, for all applicable. growth of the company. As part of shareholders and other stakeholders, the implementation, the company through the company website The role of the Audit and RPT regularly submits quarterly financial and such other media channels as Committee in the review and approval results to the PSE and SEC, among applicable. of all RPTs is discussed in this Report. pertinent market regulators.
Globe updated the RPT policy in 2019. Creditors’ Rights Loan agreements with banks and Under the RPT policy, shareholders, It is Globe’s policy to protect the other financial institutions provide for including minority shareholders, and rights of its creditors by maintaining, certain restrictions and requirements other stakeholders are provided with at all times, the company’s good with respect to, among others, proper guidelines and procedures credit standing. Globe strictly maintenance of financial ratios for right of action and remedies that observes contractual obligations, and and percentage of ownership of are readily accessible in order to regards fair and truthful disclosure specific shareholders, incurrence of redress corporate conduct in case of and transparency of financial records additional long-term indebtedness any abuse on such transactions (e.g. and dealings of utmost importance or guarantees and property email account and hotline numbers), to assure creditors of the company’s encumbrances. as necessary. The policy contains this continued credit worthiness. Globe’s whistle-blowing mechanism, provides periodic reports to its creditors, Board Diversity Policy for the creation of a dedicated such as the latest certified Financial In addition to the qualifications, committee for the review of material Statements, Certificate of No Default, disqualifications, and other criteria RPTs, and identifies materiality and CFO Certification on compliance set forth in the company’s corporate thresholds of such transactions with financial ratios, ensure the documents and relevant law in including the SEC materiality creditors of the company’s financial relation to the nomination and threshold. soundness. election of members of the Board, Globe is committed to promote and In accordance with the Policy on Globe provides prompt and accurate observe diverse membership among RPTs, the ARPT Committee convenes reports of its financial standing to its directors. to review and monitor material RPTs creditors by providing them with to ensure the company’s best interest, financial and operating results,
60 Fueling the power of connectedness The Board of Directors, led by Privacy Policy by posting it on the The status of all Globe’s privacy the Chairman, encourages its company website for easy reference. and cybersecurity programs and shareholders to nominate candidates Globe also initiates internal campaigns operations are presented to and who will diversify membership in on data privacy and cybersecurity reviewed primarily by the Board the Board. Therefore, as company to ensure all internal stakeholders Risk Oversight Committee (BROC) policy, no director or candidate for are fully aware of their rights and regularly. However, depending on the directorship shall be discriminated responsibilities in relation to the use issue, reports may also be presented upon by reason of gender, age, of the products and services that the to the Audit and RPT Committee. disability, ethnicity, nationality digital lifestyle offers. The function Annually, the Board also receives a full or political, religious or cultural and responsibilities of Atty. Irish report and is updated on the matters. backgrounds. The Globe MCG Krystle Almeida as the company’s reiterates this policy and further Data Protection Officer further Among other safeguards, Globe keeps states that the Board must be establishes Globe’s adherence to the records as accurate as possible. If composed of at least three (3) country’s Data Privacy Act of 2012 customer personal information is independent directors, one of whom (Republic Act 10173). wrong, Globe provides ways to update shall be a female, at all times. The it. Registered customers may access company will review its Board Further, unlike most organizations, account details, correct personal diversity goals regularly to ensure Globe has its Information Security and information and report abuse of relevance and that the goals are Data Privacy Division (ISDP), which is privacy or intellectual property rights reflective of good CG. a fully operationalized, separate and by contacting the Globe Customer independent group that focuses on the Care (+632 77301000 or 211 using Directors must also have company’s privacy and cybersecurity your mobile phone) or his/her understanding of the matters. ISDP is headed by the Chief designated relationship manager, as telecommunications industry or Information Security Officer (CISO), may be applicable; or by visiting any sufficient professional experience Mr. Anton M. Bonifacio, who reports to Globe Store or the company website and competence in other relevant the CTIO and CSO. at www.globe.com.ph. Contact details industries, which further encourage a of the data privacy office are likewise diversified collaboration of views and Globe respects customer and publicly available through the website skillset within the Board. stakeholder privacy and intellectual and effective procedures are in place property. As such, Globe secures and in case of a report or complaint on In 2019, Globe had one female protects Customer Data with proper data privacy or intellectual property. independent director, who was safeguards to ensure confidentiality Rest assured, Globe does its utmost appointed as chair of the Board and privacy, prevent loss, theft, or to comply with relevant rules and Risk Oversight Committee (BROC). use for unauthorized purposes, and laws on data privacy and intellectual The company’s directors have comply with the requirements of the property rights. various nationalities such as Filipino, law. Globe uses international and American, and Singaporean with global frameworks as a reference for CG CULTURE AND ACTIVITIES different religious and educational the control environment and utilizes backgrounds as well. The directors’ the latest tools and technologies Globe understands that governance age range from 40s to early 70s. The that allows the company to prevent, is beyond regulatory compliance, profiles of the members of the Board detect, investigate, and respond to reports, and disclosures. Globe are part of this Report and posted on the various threats in its environment. believes that CG’s relevance is most the company website. Globe has a Security Operations evident when its standards and Center (SOC) that monitors the practices are embedded in business Data Privacy and Intellectual company’s technology infrastructure culture and that having governance Property Rights and environment, operates 24x7, integrated in business operations The Privacy Policy outlines standard and manned by a dedicated team. is a commitment to a corporate and framework in relation to the All systems and processes in the journey that the company chooses to collection, use, and protection of organization go through extensive invest time and effort in. Therefore, Customer Data to provide customers assessments and reviews, targeting fairness, transparency, integrity, and other stakeholders with a information collection, storage, sustainability and accountability wonderful experience. The company and processing practices, to guard must be experienced not only by notifies all customers and relevant against unauthorized access, the company’s customers and stakeholders with any update on the alteration, disclosure, or destruction. stakeholders, but also among its
61 Globe Telecom 2019 Integrated Report Corporate Governance
Globe Telecom’s CLSG, headed by Atty. Vicente Froilan M. Castelo, at the San Jose School of La Trinidad in the province of Benguet
employees. As such, collaborations internet connectivity for the school effective implementation. The of the Compliance and Governance and its students. More importantly, practice of sustainability reporting team, under the Corporate and Legal the company conducted a training was implemented as a means to Services Group (CLSG), with the workshop on cyber wellness for provide fair, accurate, and meaningful Internal Audit, Investor Relations high school students as part of the assessment of its overall performance and Corporate Communications company’s stakeholder engagement on triple bottom line (viz. Economic, groups are sustained. These initiatives. Discussions included Environment, and Social) responsibility collaborations result in regular topics on digital insight and digital to all stakeholders including investors. campaigns that promote appreciation discernment. The San Jose School for principles and fundamentals of of La Trinidad is home to over 100 As a listed company in the PSE and CG and sustainability among Globe students. PDEx, with reportorial requirements, employees as well as Globe’s user- rules and applicable laws as well as friendly and up-to-date website for As more stakeholders benefit regulations of relevant regulatory investors and stakeholders. from these strategic initiatives and agencies, Globe aims to provide partnerships, the more valuable CG a fair, accurate, complete and Globe also continued to reach out becomes for Globe business and meaningful assessment of the to its internal stakeholders through its people. Through these kinds of company’s financial performance the Attorney At Iba Pa (AttyATBP), an activities, the company is able to and prospects through the annual initiative led by the CLSG that extends extend accountability, sustainability report, quarterly financial reports, corporate and legal services out of and care to its employees and and analyst presentations. Globe the daily contracts and reports into communities that surround it. practices regular disclosure of its contributing to the practical needs of financial results. Quarterly financial employees. This has been an annual DISCLOSURE AND results are immediately disclosed event following its debut in October TRANSPARENCY after the approval by the Board to 2015. In 2019, AttyATBP once again PSE and SEC, among other pertinent extended assistance outside the Management is continuously market regulators. Quarterly and Globe Telecom workplace to serve committed to high standards year-end financial statements and one of the company’s stakeholder of disclosure, transparency, and detailed management’s discussion local communities. The team provided accountability. The management and analysis are filed within 45 and educational supplies for the San established the sustainability 105 calendar days, respectively, Jose School of La Trinidad in the policy and reviews its adequacy from the end of the financial period. province of Benguet. The company at the highest level periodically Financial reporting disclosures are provided a new LCD projector and and allocated resources to ensure in compliance with the PSE and SEC
62 Fueling the power of connectedness requisites, among other pertinent are organized by the IR Department Globe maintains the company website market regulators. Globe continues and/or Corporate Communications regularly to ensure user-friendliness, to drive management and respective Group or in partnership with Globe accessibility, accuracy of information departments to release the audited shareholders, broker or other partner and relevance for all stakeholders. financial statements within 60 days institutions. Other than keeping the The company website has dedicated from financial year-end, in compliance company website up-to-date, these pages for CG (https://www.globe. with the ACGS standard that is earlier venues provide another means for com.ph/about-us/corporate- than the local regulatory deadline. Globe to discuss its quarterly financial governance.html), IR (https://www. These reports are made available to results, announcements, material globe.com.ph/about-us/investor- the analysts after disclosure, as well disclosures and other relevant relations.html) and Sustainability as released through various media information with its stakeholders. (https://www.globe.com.ph/about- channels, on the company website. In the past years, Globe has been us/sustainability.html), among further streamlining communication other relevant pages. The company In case of mergers, acquisitions and/ efforts and opening-up several new enccourages its subscribers and or takeovers requiring shareholders’ customer touch points, enabling stakeholders to explore the CG and approval, the Board of the them to interact with the company IR pages of the company website to offeree company shall appoint an at their convenience. Among learn more about Globe’s wonderful independent party to evaluate the other enhancements, Globe uses corporate culture apart from its fairness of the transaction price. Such e-mail, live chat, SMS, website, products and services. shall be disclosed in the financial and social media channels (e.g., statement and relevant reports. Facebook, Twitter, Instagram) to Dividend Policy The company shall also ensure provide its customers with real-time Globe declares dividends to its compliance with applicable law, information and quicker responses common stockholders on a regular rules, and regulations prescribed by to concerns. A conference call facility basis as may be determined by the the SEC and the PSE. Any market- is set-up during analysts’ briefings Board of Directors. Globe returns to sensitive information such as and meetings to enable wider its shareholders, dividends equivalent dividend declaration is also disclosed participation among shareholders to 60 to 75 percent of the prior year’s to the SEC and PSE and then and other stakeholders. The core net income. Dividends declared released through various modes of company also participates in both by the company on its stocks are communication as applicable. local and international investor payable in cash or in additional shares conferences, which host various of stock. As a policy and as much as In accordance with the strong investors, shareholders and other practicable, Globe observes a 30-day advocacy for CG, Globe recognizes stakeholders. Details and information period for the payment of dividends the importance of regular on these conferences are published to shareholders from the declaration communication with its investors, on the company website. The IR date of such dividends. and are committed to high standards program sustains this convenient and of disclosure, transparency, and accessible line of communication and The Board regularly reviews the accountability through its Investor will continue to enhance this in the company’s dividend policy, including Relations (IR) program. The IR succeeding years. the frequency of its distribution, Program is geared towards fulfilling taking into account the company’s Globe’s commitment to a transparent Globe fully understands that operating results, cash flows, debt disclosure regime and accessibility for the changes and progress in covenants, capital expenditure all stakeholders. digital lifestyle include the fast- levels and liquidity. The payment paced character of its customers, of dividends in the future will Stakeholder engagement shareholders and different depend upon the earnings, cash (Consulting stakeholders about ESG) stakeholders. Because of this, the flow, and financial condition, among In addition to the ASM, Globe extends company website must also be an other factors. various venues for stakeholders to effective channel of information communicate effectively with the and a manifestation of CG advocacy. company through the conduct of Among other information, Globe analysts’ briefings, ad-hoc briefings, keeps its website up-to-date with investor conferences, media corporate announcements, reports briefings, one-on-one or small group and disclosures that are accessible to meetings, and investor days that all stakeholders.
63 Globe Telecom 2019 Integrated Report Corporate Governance
Per Share Amount Declaration Date (in Php) (in Php Mn) Record Date Payment Date February 11, 2019 22.75 3,024 February 26, 2019 March 13, 2019 May 3, 2019 22.75 3,033 May 20, 2019 May 31, 2019 August 2, 2019 22.75 3,031 August 19, 2019 August 30, 2019 November 6, 2019 22.75 3,030 November 20, 2019 December 6, 2019
Ownership Structure Globe regularly discloses the top 100 shareholders of the company’s common and preferred equity. Disclosure is also made of the security ownership of certain record and beneficial owners who hold more than 5% of common and preferred shares. Finally, the shareholdings and percentage ownership of the directors and key officers are disclosed in the Definitive Information Statement sent to the shareholders prior to the ASM.
% of % of Non-Voting % of Non-Voting Stockholders Common Preferred Total % of Total Common Preferred Preferred Preferred Ayala 41,157,276 30.90% - - - - 41,157,276 13.20% Corporation Singtel Group 62,646,487 47.03% - - - - 62,646,487 20.10% Asiacom - - 158,515,016 100% - - 158,515,016 50.85% Philippines, Inc. Directors, 559,595 0.42% 5 0% 27,500.00 0.14% 587,100 0.19% Officers, ESOP Public 28,845,049 21.65% - - 19,972,500 99.86% 48,817,549 15.66%
Total 133,208,407 100% 158,515,021 100% 20,000,000 100.00% 311,723,428 100%
DEALINGS IN SECURITIES
Globe has adopted strict policies and guidelines for trades involving the company’s shares made by directors and key officers and those with access to material non-public information. In accordance with the company’s blackout period rule under the insider trading policy, directors and key officers and covered persons with access to the quarterly financial and operating results, in the course of its review and preparation, are prohibited from trading Globe shares 5 trading days before until 2 trading days after Globe publicly discloses the results. Notices of trading blackouts are regularly issued to the directors and key officers concerned and to covered persons with access to such material non- public information.
All directors and key officers are required, within 3 trading days upon change in their ownership of securities, to submit the statement of changes of ownership in Globe securities in relation to their trades to the office of the Chief Compliance Officer for immediate submission and disclosure to the SEC and the PSE, among other pertinent market regulators. Once submission and disclosure to pertinent regulatory agencies are completed, the same is reflected on the company’s relevant reports and the company website under “PSE/SEC Disclosures” of the Investor Relations page.
64 Fueling the power of connectedness End Balance in 2019 Title of Class and 2019 Beginning Balance Company Shares Change/s in Nature of Ownership in Company Shares as of Shareholdings 31 December 2019
Globe Telecom Board of Directors
Jaime Augusto Common (direct) 2 - 2 Zobel de Ayala Common (indirect) 1 - 1
Lang Tao Yih, Common (direct) 2 - 2 Arthur
Ernest L. Cu Common (direct)1 106,853 5,000 (D) 50,089 January 21
27,780 (A)* May 16 Common (indirect)1 4,000 1,955 (D) 73,544 February 19
1,045 (D) February 20
330 (D) February 21
1,670 (D) February 22
4,000 (D) March 14
1,000 (D) March 15 Voting Preferred 1 - 1 (direct)
Non-voting Preferred 16,700 - 16,700 (indirect)
Romeo L. Common (direct) 1,799 - 1,799 Bernardo Common (indirect) 500 - 500
Voting Preferred 1 - 1 (indirect)
Delfin L. Lazaro Common (direct) 1 - 1
Non-voting Preferred 2,800 - 2,800 (indirect)
Jose Teodoro K. Common (direct) 1 - 1 Limcaoco
65 Globe Telecom 2019 Integrated Report Corporate Governance
End Balance in 2019 Title of Class and 2019 Beginning Balance Company Shares Change/s in Nature of Ownership in Company Shares as of Shareholdings 31 December 2019 Fernando Zobel Common (indirect) 1 - 1 de Ayala
Samba Common (direct) 2 - 2 Natarajan
Rex Ma. A. Voting Preferred 1 - 1 Mendoza (direct)
Saw Phaik Hwa Voting Preferred 1 - 1 (direct)
Cirilo P. Noel Voting Preferred 1 - 1 (direct)
Globe Telecom Key Officers
Alberto M. de Common (direct) 14,532 5,235 (A)* 19,767 Larrazabal May 16 Common (indirect) 3,000 - 3,000
Non-voting Preferred 2,000 - 2,000 (direct)
Gil B. Genio Common (indirect)3 58,638 3,000 (A)** 83,165** November 28
3,000 (A)** December 2 Common (direct)3 18,302 10,307 (A)* 10,082 May 16 Renato M. Jiao Common (direct) 9,535 4,740 (A)* 14,275 May 16 Common (indirect) 285 - 285
Rebecca V. Common (indirect) 18,915 - 18,915 Eclipse Common (direct) 9,405 4,830 (A)* 14,235 May 16 Non-voting Preferred 4,000 - 4,000 (direct)
Vicente Froilan Common (direct) 4,419 1,995 (A)* 6,414 M. Castelo May 16
Carmina J. Common (direct) 4,495 2,280 (A)* 6,775 Herbosa May 16 Common (indirect) 1,300 - 1,300
Non-voting Preferred 2,000 - 2,000 (direct)
66 Fueling the power of connectedness End Balance in 2019 Title of Class and 2019 Beginning Balance Company Shares Change/s in Nature of Ownership in Company Shares as of Shareholdings 31 December 2019 Bernard P. Common (direct) 7,065 3,600 (A)* 10,665 Llamzon May 16
Solomon M. Common (direct) 20 - 20 Hermosura
Marisalve Common (direct)2 4,089 1,350 (A)* 2,380 Ciocson-Co May 16 Common (indirect)2 - - 3,059
Rosemarie Common (direct)4 4,374 2,685 (A)* 2,024 Maniego-Eala May 16 Common (indirect)4 4,963 - 9,998
Maria Aurora Sy- Common (direct) 3,104 1,965 (A)* 5,069 Manalang May 16
(A) Acquired (D) Disposed of 1Change in the nature of shareholdings of Mr. Cu was also disclosed in January 2019. 2Change in the nature of shareholdings of Ms. Ciocson-Co was disclosed in February 2019. 3Change in the nature of shareholdings of Mr. Genio was disclosed in June 2019. 4Change in the nature of and correct shareholdings of Ms. Maniego-Eala was disclosed in August 2019. *Stocks grant plan **Indirect ownership through immediate family in the same household
None of the members of the Board of Directors and management owns 2% or more of the outstanding capital stock of Globe.
67 Globe Telecom 2019 Integrated Report Risk Management
Globe believes that effective Risk Management (RM) practices are crucial to sustaining its profitability and resilience as a company. Hence, Globe ensures that RM remains a core capability and an integral part of how decisions are made in the organization to deliver value to shareholders. The company’s thrust is to embed RM in the daily lives of employees, empowering them to make intelligent choices when confronted by risks and opportunities.
Globe lives out its RM philosophy via three (3) key pillars - Structure, Process and Culture.
Structure Process Culture
We strive to cultivate an We strive to sustain sound We strive to nurture a risk organizational structure that processes that facilitate the aware culture by setting supports strong corporate identification, assessment, the appropriate tone at governance, clearly defines quantification, mitigation, the top, defining clear management, monitoring and accountability for risks, risk taking responsibility and communication of risks at the espousing transparency and authority, facilitates ownership enterprise and operational level. timeliness in sharing risk and accountability for risk We also regularly review our information, enabling risk- taking, and ensures proper RM processes and policies on a adjusted decisions, recognizing segregation of duties. continuing basis and stay abreast appropriate risk-taking of current developments to attitudes, and embedding ensure that we remain robust and the right risk skills across the relevant, through benchmarking organization. against industry and global best practices.
ROLES AND RESPONSIBILITIES The BROC is mandated to assist •• Fostering a risk-aware culture that the Board in fulfilling its oversight is pervasive throughout Globe, and Board of Directors responsibilities in relation to ensuring transparency in reporting The Board of Directors oversees Risk Governance in Globe. This of key risks to relevant stakeholders. and conducts an annual review of ensures that the Board and Globe’s Management will be able to make Globe’s material controls, covering The BROC is led by a Chairperson well-informed and intelligent operational, financial and compliance who must be an independent, non- decisions based on thorough areas and overall RM systems. The executive director. At present, it assessment of risks and opportunities. overall responsibility for RM oversight is composed of four (4) directors, This includes: rests with the Board. To enable three (3) of which are independent, the Board to effectively discharge non-executive directors. The •• Ensuring that there is an effective, Globe’s RM function, various Board Board appoints all members of the efficient and integrated risk committees have been designated to committee. provide RM oversight for specific risk management process working in place. areas. The BROC meets on a quarterly basis •• Enabling the identification, or as frequently as needed. The BROC analysis, and assessment of key BOARD RISK OVERSIGHT also submits and presents a report risk exposures its impact to Globe’s COMMITTEE to the Board at least two (2) times a strategic and business objectives, year containing updates on all actions as well as the formulation of an A Board Risk Oversight Committee initiated by the committee at the effective RM strategy. (BROC) was created in 2Q 2019 board meeting following the BROC •• Cultivating a sound organizational to provide focus and effectively meetings, as well as a year-end report structure with an effective consolidate the decentralized and outlining the committee’s actions Enterprise Risk Management overlapping risk oversight duties for the year, confirmation of how (“ERM”) framework working in performed by various Board sub its responsibilities were discharged, place. committees. The establishment of assessment performed on the •• Establishing clear definition of the BROC will ensure an integrated effectiveness of the committee, and risk-taking authority, ownership, and holistic oversight on RM at the recommendations for improvement. Board level. accountability, and proper segregation of duties.
68 Fueling the power of connectedness The BROC has the following roles and Chief Risk Executive exercise and updates on the status responsibilities: The President and Chief Executive of top risks, key risk mitigation Officer (CEO) acting as the Chief activities, key risk and performance •• Develop a formal Enterprise Risk Risk Executive (CRE) is ultimately indicators and emerging risks that Management Framework. responsible for RM priorities, could impact the attainment of •• Provide oversight on Globe’s including strategies, tolerances and Globe’s objectives. activities in identifying and policies which he recommends to the managing key enterprise-wide and Board for approval. The CRE: On a quarterly basis, the Board, operational risks (but not limited through the BROC is appraised on to): Strategy, Technology, Financial, Acts as the final enforcer of the RM the company’s critical risks, control Credit, Market, Information/Cyber process; issues and key mitigation plans by the security, Data Privacy, Business CRO. Insights on the following are Disruption, Legal, Regulatory, •• Establishes organizational provided: Fraud, Customer Experience, and structure, assigns authority and other risk areas. designates management of key •• Risk management processes are •• Through the Enterprise Risk risks to risk owners to ensure that working as intended, Management Department, exercise the RM activities are carried out •• Risk measures and mitigation plans oversight and guidance over effectively; are reported and continuously Globe’s risk management and •• Reviews the continuing reviewed by risk owners for governance structure. effectiveness and relevance of effectiveness; and •• Review and approve the annual the RM framework, processes, •• Established risk policies and work plan (i.e., activities and organization and tolerances, as procedures are being complied initiatives such as risk assessments, assisted by the Chief Risk Officer; with. risk embedding programs, etc.) •• Ensures that RM activities are of the ERM Department, based linked to the risk owners’ Key Outside the quarterly scheduled on the priorities and direction of Result Areas. BROC Meetings, the CRO and the company, and ensure that it the Enterprise Risk Management remains relevant, comprehensive, Chief Risk Officer Department provides regular updates and effective. The Chief Finance Officer (CFO) and to the BROC Chairwoman via •• Review disclosures regarding risks concurrent Chief Risk Officer (CRO) executive sessions, on the status of and risk management contained in supports the CRE at the management key risks, management’s risk action Globe’s Annual Integrated Report level. The CRO ensures that: plans and strategies and new or and other publicly-issued reports emerging risks needing immediate and statements as applicable. •• There is adequate supervision and attention. •• Ensure alignment, on a regular guidance over the development, basis, with other assurance implementation, maintenance Enterprise Risk Management providers of Globe on critical risks and continuous improvement Department and control identification and of RM policies, processes and The Enterprise Risk Management assessment. documentation. Department (ERMD) supports the •• Secure independent expert advice •• Risk Management processes and CRO in undertaking her role. Key on RM matters where considered activities are embedded within the functions of the ERMD include: necessary or desirable. organization’s policies, business cycles and operational decisions. •• Facilitating Management Team’s Management •• Responsibilities for managing annual risk assessment exercise With guidance provided by the specific risks by Senior and reporting the results thereof BOD and sub-committees, Globe’s Management are clear. •• Coordinating with risk owners to management is fully responsible for •• The level of risk accepted by the gather information and updates decision-making over the day-to-day company is appropriate. on Risk, the status of and its affairs of Globe including the design, •• An effective control environment management/mitigation activities development and implementation exists for the company as a whole. •• Facilitating the execution of Line of the RM strategies, policies and •• In collaboration with the CEO/ Management’s risk assessment systems intended to address the CRE and Senior Management, exercise identified risks. the BROC and the Board, and •• Developing and implementing other Stakeholders are provided risk culture building programs to periodic information on the results drive and embed the RM discipline of the annual risk assessment across the organization
69 Globe Telecom 2019 Integrated Report Risk Management
•• Serve as the BROC secretariat RISK MANAGEMENT committees respectively. Through to support the discharge of the APPROACH the BROC and ARPT, in conjunction BROC’s risk oversight functions. with other board committees, the •• Enable the BROC to effectively Globe Telecom’s overall RM board discharges and maintains its exercise oversight and guidance framework and policy are based on oversight role on the company’s risks. over Globe’s risk management the ISO 31000:2018 framework for and governance structure at the Risk Management. As risks continue RISK MANAGEMENT PROCESS operating level. to become more volatile, uncertain, complex, and ambiguous, Globe Globe’s RM cycle starts with an Internal Audit adopts a decentralized, 3-lines- enterprise-wide assessment of risks is The Internal Audit Team provides of-defense model approach to performed by the Management Team independent assurance on the effectively manage its risks. as part of the annual planning and effectiveness of RM systems budgeting process. This process starts and processes. Internal Audit’s Risk Owners, having first-hand with the identification of key risks that examinations cover a regular experience and expertise in managing threaten the achievement of Globe’s evaluation of adequacy and risks on a daily basis, are given the business and strategic objectives effectiveness of RM and control overall accountability to address risks, at the corporate and business unit processes encompassing the including the adoption of one or more level. Risks are then identified, company’s governance, operations, specialized frameworks and best analyzed, evaluated, and assigned to information systems, reliability and practices (e.g., Control Objectives the appropriate risk owner/s for the integrity of financial and operational for Information and related development of plans to manage information, effectiveness and Technology (COBIT), Information said risks. The results of which are efficiency of operations, safeguarding Technology Infrastructure Library then reported to and reviewed by the of assets and compliance with laws, (ITIL), Commission of Sponsoring Board via the BROC. rules and regulations. Organization of the Treadway Commission Framework (COSO), The established strategies and Risk Owner National Institute of Standards and mitigation plans to address the The Risk Owner has overall Technology (NIST) Cybersecurity risks are continuously developed, accountability for the assigned risk/s Framework, Project Management updated, improved, and reviewed for and is granted authority to enable Body Of Knowledge (PMBOK), effectiveness throughout the year effective management of a particular relevant ISO Standards, among as part of the company’s continuing risk. The Risk Owner’s function also others. Risk Owners report timely advocacy of embedding the RM includes: updates on its risks and emerging discipline across the organization. threats to management. In order to have an enterprise-wide •• Understanding the risk/s and view of both risks and its mitigation determining its drivers The CRO, enabled by the ERMD, plans, Globe through the CRO and •• Planning for and executing provides oversight of critical ERMD has institutionalized a process appropriate RM strategies and enterprise-wide and operational risks to monitor the status of risks with mitigation plans for key risks to ensure that the individual RM its risk owners and how said risks identified, including the adoption practices of Risk Owners are designed impact the organization on an of the necessary RM framework/s in accordance with the overall RM enterprise level through monitoring and standard/s. framework and policy, and managed key risk indicators, key performance •• Securing required resources appropriately in accordance with indicators, status of mitigation plans, needed to effectively manage the the company’s set risk appetite and and identification of any emerging risks tolerance levels. risks. On a regular basis, the ERMD, •• Monitoring and reviewing the level together with the risk owners, provide of risk exposures and continuing The CAE, enabled by the Internal reports on the status of said risks to relevance of RM strategies and Audit team, provides independent the CRO and management, and on plans assurance that the RM policies a periodic basis to the board via the •• Providing timely updates on and practices are both designed BROC and other board committees. the status of RM activities to effectively and operating as intended. concerned stakeholders. Throughout the year, Management Both the CRO and CAE reports to the through the ERMD also conducts board via the BROC and Audit and various coordinated, end-to-end risk Related Party Transactions (ARPT) assessment studies on identified critical risk areas and emerging
70 Fueling the power of connectedness risks. Management believes that across the organization is essential in The ERMD partners with various risk these studies are essential for a embedding and ensuring consistent owners to ensure that RM advocacies strong RM process as it reinforces application of sound RM practices in are effectively cascaded to every the lines of defense while providing every decision point by every ka- employee through culture building relevant insights both decision Globe. and continuous learning activities making and the management of to further complement the RM Globe’s top enterprise-wide risks. As a testament of Globe’s risk aware advocacy. When necessary, the company seeks and intelligent culture, Globe has external technical support from third been assessed to have an advanced Various learning sessions, summits, party experts to aid management and level of risk maturity (5.0 on a 1 to 5 and information drives are organized the board in the performance of their scale) in an independent assessment throughout the year by risk owners RM duties and responsibilities. conducted by Aon Risk Services, in and in collaboration with ERMD. late 2018. This places Globe as one of These activities provide every FOSTERING THE RIGHT the highest among the Ayala group ka-Globe with opportunities to RISK CULTURE of companies, and belonging to understand the latest technologies, the top 1% of the 1,958 companies solutions, and trends in various fields, Globe believes that fostering a culture interviewed by Aon globally across 25 and learning about the risks, both at of risk awareness and intelligence industries. present and in the future and how they are effectively managed.
Leaders and experts shared their thoughts on key issues and opportunities at the Globe Risk and Sustainability Forum 2019
RISK AND SUSTAINABILITY way forward. The ERMD, together annual enterprise-wide risk refresh with Globe’s Sustainability team, exercise. Further, the Board, through Given the accelerated pace of change have initiated steps to integrate the the BROC has been introduced to in the business landscape brought activities as well as the reporting Globe’s sustainability mandates, about by business disruptions, cadence of these two (2) disciplines. framework, principles, programs and global megatrends, and changes in In 2019, the teams’ collaboration has roadmap. Discussions on Globe’s stakeholder mindsets, Globe supports led to the first Risk and Sustainability material sustainability topics and the Ayala vision of integrating RM forum and integration of strategies to address them were also and Sustainability practices as the sustainability material topics into the discussed to the BROC.
71 Globe Telecom 2019 Integrated Report Risk Management
OPERATIONAL RISK AND GLOBE PRINCIPAL RISKS •• Sharing of network/facilities across BUSINESSS CONTINUITY operators MANAGEMENT The achievement of Globe’s key •• Portability of mobile numbers business objectives can be affected by •• Government-mandated pricing Globe continues to adapt and a wide array of internal and external •• Entry of a new telecom players enhance its programs in the midst risk factors. Some of these risk factors •• Reallocation of spectrum to new of the continued global warming, are universal while some are unique telecom players and the ramp-up of activities by the to the telecommunications industry. •• Potential improved LGU support government regulators to enforce The risks vary widely in occurrence •• Increased infrastructure spend related laws on Occupational and severity, some of which are •• Changes to the current industry Safety & Health, Environment, and beyond the company’s control. There model Disaster Management. The company may also be risks that are either •• Increase in fees and tariffs related initiated projects to ensure that presently unknown or not currently to Operations it is able to effectively respond to assessed as significant, which may •• National roaming capabilities and recover from major disasters; later prove to be material. while considering the minimum The current proposal of shifting to requirement of government agencies Globe aims to manage these a federal form of government could like the Department of Defense on exposures through developing impact the company’s business Disaster Management, Department appropriate RM strategies, model. Geopolitical and geoeconomic of Labor and Employment on establishing strong internal controls volatility could also impact its way of Occupational Safety, Department of and capabilities, risk transfer doing business, these include: Health on Occupational Health, and methodologies (e.g., insurance the Department of Environment and covers) and close monitoring of •• International and regional conflicts Natural Resources on Environmental risks (including emerging risks) and •• Protectionism and deglobalization friendliness. The more important mitigation plans. This section outlines •• Supply chain disruption initiatives pursued the previous the various principal risks that impact •• Threats to national security, such reporting period are: Globe, listed in no particular order of as terrorism, nation sponsored significance: cyber attacks, pandemics, among • Certification of the Business others. Continuity (ISO22301), Political and Socio-Economic Risks Occupational Health and Safety (External) Mitigation: (ISO45001), and Environment Globe’s growth and financial health Management Systems (14001); is influenced by the nation’s political •• A regular environmental scanning •• Digitalization of the and socio-economic structures and exercise is performed to ensure the aforementioned management conditions. The uncertainties in identification of any uncertainties systems; the political, geopolitical and social arising from global and local •• Operationalization of the environment may have an adverse political and socio-economic Earthquake Response Plan: to impact on the Philippine economy factors. address risks related to the Big which in turn directly impacts •• Create fallback policies in cases One, and establish fully-resourced the company’s business, financial of supply chain disruptions due Disaster Response Teams; condition or results of operations, to international trade ban and •• Integrated Exercise of the Globe including the ability to sustain and territorial lockdown Crisis Management Plan with enhance the growth of its customer •• Maintaining a healthy relationship Government; base, improve its revenue base and with various government sectors •• Conduct of audit and integrated implement its business strategies. including dialog with regulators exercises with the critical vendors and legislators. of Globe The current administration is •• Strengthening the tie-ups with •• Launch of a smoke-free workplace implementing major changes to the government programs and •• Pursued projects to support the telecommunications industry that initiatives sustainability program: can either positively or negatively »» Solid and hazardous waste affect the company’s business. Regulatory Risk (External) management These include the following possible Globe Telecom is regulated by »» Reduction of carbon footprint scenarios: the National Telecommunications »» Energy and water conservation Commission (NTC), an attached •• Network performance pressure agency of the Department of and scrutiny Information and Communications
72 Fueling the power of connectedness Technology (DICT), for its Mitigation: to the need of the customers, telecommunications business, and focusing on superior customer by the Securities and Exchange •• Regular monitoring of rulings, experience, Commission (SEC) for other aspects especially those that could •• Continuously invest, build, and of the business as well as the negatively impact the business improve the Globe network Philippine Stock Exchange (PSE) as •• Implement government-relations to deliver superior network one of its capital market regulators, to management strategies experience to customers. name a few. On the other hand, the •• Quarterly reporting to Board of •• Launch programs that aim to Philippine Competition Commission Directors on the updates from maintain high value customers (PCC) has oversight on the company’s upcoming laws and regulations and improve customer loyalty mergers, acquisitions, and other and the current implementation for both consumer and business similar transactions as it is tasked status of new laws and regulations segment. to effectively level the playing field •• Enhancing compliance •• Delivery of superior among businesses and penalize anti- effectiveness of Globe by/through: customer experience as a key competitive agreements and abuse of »» Proactive internal compliance differentiator. market dominance. assessments »» Enhancing internal controls on b. Substitute and Alternative Some of the recent key legislation processes impacted by specific Competition (External) and regulations implemented by laws and regulations The competitiveness of the the Government and the Regulator, »» Training the required staff and industry is further underscored which impact Globe are listed below. management on new laws and by cheap alternatives to Globe is closely monitoring the regulations communication such as instant developments in relation to laws »» Programs that will establish messaging, social network services and regulations and has taken the and enhance the culture of and Voice Over Internet Protocol necessary steps to ensure compliance compliance (VOIP). These alternatives are with such. also driven by the proliferation Competition Risk (External) of affordable smartphones and •• Common Tower Policy (DICT a. Traditional Competition (External) internet-capable mobile devices. Ruling) - A policy promulgated by Competition remains intense in the DICT to ensure more access to the Philippine telecommunications As customers move towards an cost-efficient ICT infrastructure in industry amidst a mature mobile “everything on demand” lifestyle, areas not adequately served, via market and high growth data there is an increased demand for common towers. business, as current competitor telecom operators to be more than •• Mobile Number Portability seeks to regain market share just service providers, opening (RA11202) - A law that allows with aggressive offerings. In July the door for companies to offer subscribers to switch from one 2019, a new player was given its content, media, and other services network operator to another permit to operate as the third bundled with internet services at without having the need to change telecommunications player of competitive prices as substitute their mobile telephone numbers. the Philippines. Its commercial products and services as compared •• 8-Digit Landline (NTC operations were initially targeted with traditional telecom data Memorandum Order 10-10-2017) to start by September 2019 but services. - Migration of 7-digit landline were eventually moved to the telephone numbers to 8 digits, to second quarter of 2020. These As new technology and ensure adequacy of assignable factors are seen to further innovations emerge, such as 5G, exchange code numbers. heighten the competitive dynamics Internet of Things (IoT), Smart amidst a mature mobile market. Cities, among others, potential The introduction of new, modified, new substitutes and alternatives or inconsistent application of laws or Mitigation: to existing telecom services regulations from time to time, may may arise in the future that can significantly affect the company’s •• Assert Globe’s market position impact the company’s growth operations, financial condition and through offering of personalized and sustainability should it fail to reputation. There is no assurance plans and launching of respond well. that the regulatory environment innovative products and services will support any increase in the that are relevant and responsive company’s business and financial activity.
73 Globe Telecom 2019 Integrated Report Risk Management
Mitigation: right work environment, office culture, There are no assurances that and development opportunities declines in the value of the peso •• Partner with leading providers where high potential talents can will not occur in the future or that of content, mobile messaging, thrive and develop into the next the availability of foreign exchange social media and other popular generation of leaders and where the will not be limited. Recurrence of applications in order to provide entire people of the organization these conditions may adversely products and services that remains engaged and productive, affect the company’s financial anticipate and cater to shifting are the key risks that Globe faces in condition and results of operations. customer preferences retaining and developing talent. •• Enable swift response to Mitigation: new market developments Mitigation: and customer preferences •• Manage FOREX risks in such a by implementing an agile •• Development of robust talent way that transaction exposures organization and open succession development program will offset translation exposures. technologies that identifies high potential This is done by: •• Develop innovative services talents and ensure a healthy »» Assessing FOREX risk through with new business and pricing supply of ready-now talents to key sensitivity analysis estimating models that will cater to leadership positions the Profit & Loss (P&L) impact the changing needs of the •• Implementation of various people of a change in the US$/Php customers engagement and development rate •• Develop a monitoring program programs and activities that »» Entering into forward that will identify key changes boost employee morale, including contracts to hedge against and developments in market programs that promote workplace peso appreciation in the environment, supply chain psychological safety and fostering case of a FOREX transaction management, technological purpose-driven mindset to all ka- exposure advancements and customer Globe. »» Entering into short-term preferences. •• Robust internal training programs foreign currency forwards and for continuous learning and long-term foreign currency Talent and Succession Risks development, including specialized swaps in the case of a FOREX (Internal) courses that upskill the workforce translation exposure Globe believes that its greatest asset to new technologies and disciplines »» Entering into principal-only is its people, thus ensuring that the that would otherwise be not readily swaps to hedge FOREX company is able to acquire and retain available on traditional learning risk exposure to principal competent, purpose-driven, and channels. repayments on USD debts future-thinking talents is crucial to •• Strict compliance monitoring for the company’s continued success. accredited third-party vendor b) Interest Rate Risk (External) Succession planning is also a critical partners on pertinent labor laws In order to fund the company’s area as in order to build a Globe that and regulations major expenditures, Globe has lasts, developing the next generation entered into various short and of leaders ensures that there will Financial Risks (External/Internal) long-term debt obligations, which always be people who can, and will, a) Foreign Exchange Risk (External) exposes the company to the risk of lead Globe into the future. Globe is exposed to two (2) types changes in interest rates. of Foreign Exchange (FOREX) Increasing need for specialized risks - transaction exposures and Mitigation: talent that is in short supply, the translation exposure. FOREX threat of talent poaching both from transaction exposures results •• Manage interest rate risk in such competition and other industries from inflows of US Dollar (USD) a way that levels of debt can that aim to acquire talents with from operations during a peso achieve a balance between cost telecom exposure, the allure of appreciation. The company’s and volatility. This is achieved working abroad versus working locally FOREX translation exposures through: due to better compensation and result primarily from movements •• Assessing interest rate risk opportunities are the key risks that of the Philippine peso against through sensitivity analysis Globe faces in securing talent. On the USD with respect to estimating the P&L impact of an the other hand, the lack of ready-now USD-denominated financial indicated movement in interest talents for key leadership positions, assets, liabilities, revenues and rates as well as the inability to provide the expenditures.
74 Fueling the power of connectedness •• Setting a target level of fixed robust and anticipate and meet future Business Disruptions (External/ and variable debt mix demands. This ensures improved Internal) •• Entering into interest rate swaps network quality, enhanced customer The quality and continued delivery to reduce volatility related to service and experience, optimized of Globe’s services are highly interest rate movements total cost of ownership. dependent on Globe’s network/IT infrastructure and a well-functioning c) Liquidity Risk (Internal) Globe considers the following factors work force, which are vulnerable to Globe revolves in an industry as its key risks in this area: threats caused by extreme weather where there is rapid technological disturbances, natural calamities, advances. This puts a great •• Anticipating and selecting the right fire, acts of terrorism, intentional pressure on the company’s mix of technologies to adopt and damage, malicious acts, pandemic financial structure to generate implement and other similar events which could sufficient cash flows to finance its •• Constant change and improvement negatively impact the attainment of capital investments and refinance leading to disruption of customer revenue targets and the company’s its outstanding debts. service and experience reputation. •• Technology ecosystems not Mitigation: working harmoniously with one Mitigation: another •• Evaluate Globe’s projected and •• Total cost of ownership and •• Enhance Globe’s incident and actual cash flows and continuously operation are not optimized crisis management plans and assess conditions in the financial •• The right technologies are not capabilities and incorporate markets for opportunities to implemented at the right place at disaster risk reduction and pursue fund raising activities the right time. response objectives in the •• Strengthen Capital Expenditure company’s business continuity (CAPEX) planning supported Mitigation: planning by data-driven decision making •• Regular exercising of established process •• Continuous environmental plans to ensure that they stay •• Ensure stable access to the scanning for the latest relevant and effective, updating capital market by maintaining an innovations and trends in telecom the plans as needed. investment grade credit rating, technologies, devices, and gadgets •• Continuous partnerships with local strong liquidity position and to determine the right information and national government, as well balance in resource allocation and communication technologies as non-government organizations, between CAPEX and Operational needed to both support new in responding to natural and man- Expenditures (OPEX). products and services, and for made crisis. future-proofing both from a Information and Communications technology and cost to maintain Cybersecurity Risk (External/ Technology Risk (Internal) and operate perspective. Internal) The transformation of Globe’s •• Adoption of best practice The cyber security landscape is product portfolio from traditional frameworks and standards to rapidly evolving and users are heavily telecom services to a data driven ensure that Network and IT relying on digitized information and ecosystem of product and service transformation programs meet sharing vast amounts of data across offerings is enabled by the right global standards in execution, complex and inherently vulnerable systems and technologies. Mobile efficiency, and security. networks. As Globe continues to data applications and the rising •• Institutionalize appropriate introduce personalized products and popularity of smartphones, social program governance organizations services and customized transactions media platforms as enabled by mobile with Management oversight to to its customers, it stores personal and connected devices continue to ensure that key Network and information through product and drive the exponential surge in data IT transformation programs service preferences and transaction traffic. Consequently, this leads are on track, its risks managed, history. This exposes Globe to to a clamor for fast, reliable, yet integrates harmoniously with the various forms of cyber attacks which affordable data services. In response, overall technology ecosystem, could result in disruption of business Globe’s network infrastructure and and does not result in unintended operations, damage to reputation, Information Technology platforms disruptions that negatively impact legal and regulatory fines and and systems undergo constant customer experience. customer claims. change and improvement to remain
75 Globe Telecom 2019 Integrated Report Risk Management
New technologies and systems A Chief Information Security Officer Mitigation: being installed in the name of ensures the adequacy of information/ advanced capabilities and processing cyber security capabilities and •• Implement cultural change efficiencies may introduce new controls. On the other hand, a Data programs and adoption of new risks which could outpace the Protection Officer manages programs ways of working, focusing on organization’s ability to properly and initiatives to address the risks customer centricity, innovation, identify, assess and address such risks. relating to the confidentiality and and agile. Further, new business models that integrity of customer information •• Opportunistic hiring of talents rely heavily on global digitization, use while ensuring compliance with Data required for innovation and new of cloud, big data, mobile and social Privacy Act of 2012 (Republic Act investment areas. media expose the organization to 10173). •• Build the right leadership even more cyber-attacks. structures and systems that will Mitigation: support an agile, future-ready, and Mitigation: customer centric organization. •• Promote employee awareness •• Strengthening and enhancement on data protection and loss Reputation and Customer of Globe’s existing security prevention through regular Experience Risk (External) detection, vulnerability and patch corporate communication channels Globe is recognized as one of the management, configuration •• Enforce employee accountability Philippines’ top companies providing management, identity access on maintaining confidentiality of innovative and superior products management, event monitoring, data handled, including disclosures and services, creating wonderful data loss prevention and network/ and information shared in various experiences and constantly striving end-user perimeter capabilities social media platforms to delight its customers at every to ensure that cyber threats are •• Strengthen controls over processes corner. Globe is also recognized as a effectively managed that require handling of customers’ company that commits its purpose of •• Implementing programs that personal information and existing creating a Globe of Good by helping enhance information security security capabilities to prevent build a Digital Nation, caring for the awareness among the organization compromise of customer data. Environment, as well as treating •• Conducting information security •• Conduct regular compliance people right and leaving a Positive reviews on outsourced processes reviews of third party suppliers Societal Impact to the nation. and systems from Globe’s third handling customer information to party suppliers Data Privacy Act of 2012 (Republic These promises and commitments •• Educating the youth to better Act 10173) expose the company to reputational understand the impact of their risks. Damage to Globe’s reputation online behavior so they can be Digital Transformation Risk and erosion of brand equity could also responsible digital citizens, thereby (Internal) be triggered by several factors such as lessening cyber threats to Globe In the age of Digital, Globe strives the inability to swiftly and adequately to be an agile organization - in the handle customer complaints, negative Data Privacy Risk (External/Internal) technologies it uses, in its day-to-day social media sentiments, adverse In the course of regular business, processes, and in its people and how public perceptions, failure to deliver Globe acquires personal information the company is organized, to keep up on customer promises, inability to of its customers and retains the with the needs and demands of its understand customer preferences same either electronically or via hard customers. Failure to drive the entire and overall service experience, among copies. Existing laws require that organization to quickly adapt to new others. information, especially customer ways of working, to new technologies information, must be adequately that reduce complexity and increase Mitigation: protected against unauthorized efficiency, and make the right shift access and or/disclosure. The risk of in skills and competencies necessary •• Frequent reviews of existing data leakage is high with the level for Globe to lead in the digital space processes influenced by customers of empowerment granted to in- and forge into adjacent spaces, may to identify and address existing house and outsourced employees lead to missed business opportunities, gaps, minimizing exposure from handling sales and after sales support ineffective and bureaucratic risk areas transactions to enable the efficient processes and systems, and inefficient •• Training front line staff to enhance discharge of their functions. use of limited resources. customer handling and dispute resolution
76 Fueling the power of connectedness •• Implement comprehensive of “free” services, to take advantage managing total cost to operate to programs that farm customer of device offers or defraud Globe’s remain competitive. Globe banks on feedbacks effectively and analyze customers. With the increased the partners’ industry expertise and them to create customer centric complexity of technologies, network wealth of experience to extend the strategies elements and IT infrastructure, new reach and expand the capabilities •• Closely monitor customer online types of fraud that are more difficult of the company. Currently, Globe sentiments to immediately address to detect or combat could also arise. engages third party partners across customer issues before it surface This risk also involves irregularities in key aspects of the company’s to mainstream online platforms transactions or activities executed by operations - from supply chain and employees for personal gain. procurement, managed services, Revenue Leakage Risk (Internal) billing and collection, facilities The telecommunications industry Mitigation: management and security, call center is inherently vulnerable to revenue services, store operations, among leakage, with the continuing •• Institutionalize processes and build others. innovations in Telecom Technologies, capabilities that enable the early Network and IT systems and the detection, investigation, resolution As a result, these partners multitude of its service/bundle/ and enforcement of sanctions and indirectly carry the Globe brand. plan offerings accompanying such legal options, close monitoring Thus, this exposes the company advancements. The pace at which and timely reporting of various to third party risks on business new offers are launched in the market instances of fraudulent activities continuity, cybersecurity, legal and and the speed of technological •• Increase organizational regulatory compliance, supply chain innovations being adopted by Globe, awareness of fraud policies and management, and responsible coupled with the ongoing Network its consequences through regular business operations to name a few. and IT transformation programs communication channels of the heightens the need to identify and company. The company promotes Mitigation: plug revenue leakages becomes an a positive work environment even more important capability in through clear organizational •• Implementation of strict vendor maximizing revenues and returns. structure, written policies and fair accreditation, selection/award and employment practices, effectively retention process. Vendors are also Mitigation: preventing employee fraud and closely monitored for compliance theft. with agreed-upon quality and •• Identify and embed appropriate •• Strengthen internal controls on service level standards as a means revenue assurance controls into processes with high vulnerability for retention, and imposition of new products and services on fraud risks rewards and penalties. •• Ensure solid internal controls •• Implement various programs to •• Vendor trainings and on existing revenue-impacting equip its customers with the right indoctrination on Globe’s processes through periodic information so that they do not fall processes, policies, quality controls review exercises, controls victim to fraudsters standards and targets discovery and review of critical •• Closely coordinates with law •• Conduct third party partner processes enforcement agencies to help audits on key standards and •• Implement Revenue Assurance protect its customers from best practices such as business tool that would increase efficiency activities meant to defraud them continuity management, in its operations through information security management automated execution of controls Third party Risk (External) system, environmental compliance, In an increasingly globalized and among others. Fraud Risk (Internal/External) interconnected world, Globe seeks •• Identification of alternative Globe runs the risk of falling victim to out various third party providers who suppliers for key network fraud perpetrated by unscrupulous play significant roles in delivering components, devices, services, etc. persons or syndicates either to avail superior products and services,
77 Globe Telecom 2019 Integrated Report Management’s Discussion and Analysis
YoY 31-Dec 31-Dec Results of Operations ( Mn) Change 2019 2018 (%) Operating Revenues 166,660 151,173 10% Service Revenues 149,010 132,875 12% Mobile1 111,767 99,531 12% Home Broadband2 21,747 18,606 17% Corporate Data3 12,828 11,762 9% Fixed Line Voice4 2,668 2,977 -10% Non-Service Revenues 17,650 18,297 -4%
1Includes mobile voice, SMS, data revenues and fully mobile broadband services. 2Includes revenues from wired and fixed wireless, 3Includes international and domestic data services, corporate internet access, and data center solutions. 4Includes revenues from landline and DUO services.
FINANCIAL PERFORMANCE year-on-year. Meanwhile, mobile internet and domestic services. voice and mobile SMS revenues for Revenue levels were also supported For 2019, Globe’s consolidated service the period ended at ₱24.3 billion and by the enterprise clients’ increasing revenues reached ₱149.0 billion, 12% ₱15.7 billion, lower year-on-year by demand for products and solutions to higher from a year ago. This growth 15% and 22%, respectively, as usage support their digital transformation was fueled by the gains from data further shifted towards IP/OTT-based initiatives, as more and more services across mobile, broadband communications. businesses pursue their digitalization and corporate data services. journey. For the Home Broadband business, For the Mobile business, revenues revenues reached ₱21.7 billion this Supporting these revenue streams, posted ₱111.8 billion or up by 12%, period, surpassing last year’s ₱18.6 Globe’s total operating expenses surpassing the ₱99.5 billion reported billion by 17%, driven by a rising level including subsidy posted close to a year earlier. As the mobile segment of fixed wireless broadband users ₱73.0 billion for the period, or an 8% dominated the Philippine market, reaching close to 1.4 million (up 40% increase from a year ago, leading to mobile revenues remained the largest year-on-year). Total home broadband consolidated EBITDA of ₱76.0 billion, revenue contributor, accounting for subscriber base now stands at over up 17% from 2018. 75% of the total service revenues led 2.0 million, up 25% from a year ago. by the company’s Prepaid brands. The rising popularity of Home Prepaid As a result of the top line growth, Total mobile subscriber base is now at Wi-Fi and compelling broadband which fully covered the increases 94.2 million, up 27% from 2018. plans bundled with the best local and in operating costs, depreciation international content fueled @Home charges and non-operating expenses, From a product perspective, mobile broadband’s continued success. The net income stood at ₱22.3 billion, data revenues generated ₱71.8 launch of the commercial pilot for At or up 20% from the year before. billion in 2019 from nearly ₱51.0 Home Air Fiber 5G services further Accordingly, core net income, which billion last year, mainly driven by expanded Globe’s product suite, excludes the impact of non-recurring the surging demand for video offering new connectivity options to charges, and foreign exchange and streaming, gaming apps and social deliver high-speed broadband access mark-to-market charges, stood at media, further boosted by the to its broadband customers. ₱22.5 billion, 20% higher year-on-year. compelling promotions for higher- value data-centric plans. Mobile data Corporate Data revenues reached Globe spent a record level of capital now accounts for 64% of mobile ₱12.8 billion as of end-December of expenditure (CAPEX) of ₱51.0 revenues from 51% a year ago. 2019, up 9% from the ₱11.8 billion billion or around US$989 million Mobile data traffic likewise leapt reported in 2018. This was propelled in 2019, 18% higher than a year from 956 petabytes in 2018 to 1,699 by the higher circuit count coupled ago and represents 34% of gross petabytes in 2019, a 78% growth with the increase in usage for both service revenues and 67% of full
78 Fueling the power of connectedness year EBITDA. Bulk of the all-time net income and based on average Consolidated cash, cash equivalents high spend went to data-related equity balances for the year just and short-term investments requirements, comprising 79%, as ended. Using core net income, which (including investments in assets Globe continued to invest in the excludes the effects of non-recurring available for sale and held to maturity Philippines towards enabling Filipino expenses on net income, return on investments) stood at ₱8.3 billion as families and businesses. This record average equity as of end-December of end-December of 2019 compared spend allowed the company to make 2019 and 2018 were 29.1% and to ₱23.2 billion as of end-December significant gains and fast-track its 26.8%, respectively. 2018. network rollout during the year. As of December 2019, Globe put up 139% Accordingly, consolidated basic Consolidated net cash flows provided more sites versus 2018 and also earnings per common share by operating activities for the year added more 3G and 4G base stations, were ₱162.96 and ₱135.91, while just ended was at ₱74.0 billion, up putting up 28% more than last year. consolidated diluted earnings per by 28% year on year. Net cash used These gains benefitted customers common share were ₱162.20 and in investing activities amounting to as evidenced in the latest results ₱135.40 as of end-December 2019 ₱55.0 billion, was 29% higher than of third party network quality test and 2018, respectively. last year. Meanwhile, net cash from providers, which showed that Globe’s financing activities amounted to LTE download and upload speeds, The balance sheet and cash flows ₱33.3 billion, significantly higher and latency in the 4th quarter of remain strong with ample liquidity than last year’s ₱3.4 billion driven by 2019 improved nearly 16%, 6% and and gearing below bank covenants. higher repayment of borrowings, and 9% respectively, compared to the On a consolidated basis, Globe closed interest payments, coupled with the same period last year. Moreover, these 2019 with gross debt to equity ratio lease liability payments this period improvements were achieved despite on a consolidated basis at 1.68:1 with the adoption of PFRS 16. a 58% growth in mobile data traffic and is well within the 3.0:1 debt to over the same time period. To sustain equity limit dictated by Globe’s debt Consolidated total debt, declined by this momentum, Globe is committed covenants. Meanwhile, net debt to 8% from ₱148.3 billion at the end of to spend ₱63.0 billion CAPEX for equity ratio was at 1.58:1 as of end- 2018 to only ₱136.3 billion at the end 2020, which includes spill over of December 2019 and 1.71:1 as of end of December 2019. CAPEX commitments from 2019. December 2018. Lastly, Globe paid out ₱12.1 billion Meanwhile, consolidated Return on Globe Group’s consolidated assets as in common cash dividends in 2019, Average Equity (ROE) registered at of 31 December 2019 amounted to representing 65% of 2018 core net 28.9% as of end-December 2019, ₱304.3 billion compared to ₱299.5 income. This was in line with our compared to 26.7% in 2018 using billion as of December 31, 2018. dividend policy of distributing 60% to 75% of prior year’s core net income.
79 Globe Telecom 2019 Integrated Report Management’s Discussion and Analysis
KEY PERFORMANCE INDICATORS
Financial Globe is committed to efficiently managing the company’s resources and enhancing shareholder value. The company regularly reviews its performance against its operating and financial plans and strategies, and use key performance indicators to monitor its progress.
Some of its key performance indicators are set out below. Except for Net Income, these key performance indicators are not measurements in accordance with Philippine Financial Reporting Standards (PFRS) and should not be considered as an alternative to net income or any other measure of performance which are in accordance with PFRS.
ARPU measures the average monthly gross revenue generated for each subscriber. This is computed by dividing recurring gross service revenues AVERAGE REVENUE PER UNIT (ARPU) (gross of interconnect charges) for a business segment for the period by the average number of the segment’s subscribers and then dividing the quotient by the number of months in the period.
The average monthly churn rate is computed by dividing total disconnections (net of reconnections) for the segment by the average number of the segment’s subscribers, and then divided by the number of AVERAGE MONTHLY CHURN RATE months in the period. This is a measure of the average number of customers who leave, switch, or change to another type of service or to another service provider and is usually stated as a percentage.
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) is calculated as service revenues less subsidy1, operating expenses and other income and expenses2. This measure provides useful information regarding EBITDA a company’s ability to generate cash flows, incur and service debt, finance capital expenditures and working capital changes. As the company’s method of calculating EBITDA may differ from other companies, it may not be comparable to similarly titled measures presented by other companies.
EBITDA margin is calculated as EBITDA divided by total service revenues. Total service revenue is equal to total gross operating revenue less non- EBITDA MARGIN service revenue. This is useful in measuring the extent to which subsidies and operating expenses (excluding property and equipment-related gains and losses and financing costs), use up revenue.
EBIT is defined as earnings before interest, property and equipment-related gains and losses and income taxes. This measure is calculated by deducting depreciation and amortization from EBITDA. The Globe Group’s method of EBIT and EBIT MARGIN calculating EBIT may differ from other companies and, hence, may not be comparable to similar measures presented by other companies. EBIT margin is calculated as EBIT divided by total service revenues.
80 Fueling the power of connectedness As presented in the unaudited condensed consolidated financial statements NET INCOME for applicable periods, net income provides an indication of how well the company performed after all costs of the business have been factored in.
Core net income is defined as net income after tax (NIAT) but excluding CORE NET INCOME foreign exchange and mark-to-market gains (losses), and non-recurring items.
1Computed as non-service revenues less cost of sales, mostly on sale of handsets/SIM packs, accessories & gadgets 2Operating expenses do not include any property and equipment-related gains and losses, equity share in net earnings (losses) of associates and joint ventures and financing costs
Non-financial Globe also uses non-financial performance indicators to measure the success of the business and emphasize its commitment to sustainability. These include: (1) employee engagement score; (2) customer satisfaction; (3) environmental and social impacts; among others, which are discussed in this report.
81 Globe Telecom 2019 Integrated Report Strategy
82 Fueling the power of connectedness 83 Globe Telecom 2019 Integrated Report Strategy
Market Outlook
The Philippine telecommunications Filipinos to avail of transport network On competition, the industry will industry has seen a shift in recent vehicle services, food delivery potentially experience changing years, with the advent of data and services, navigation services, and market dynamics with the entry of the internet of things changing more using their smartphones. the third player, which is slated to the way consumers behave and launch commercial operations by telcos do business. Consumers are The fixed line industry is also March 2021. increasingly favoring data for their seeing an increasing demand for communication needs, causing data. At home, smart televisions Lastly, on the regulatory front, the a decline in traditional voice and and gaming consoles are enabling government continues to review SMS services. Telecommunication the consumption of bandwidth- existing laws and policies, aligning companies have had to reposition intensive multimedia content such as them with international norms. In themselves to remain relevant in the high definition videos and network recent years, this has led to lower age of digitization. gaming. More customers are now interconnection rates, and new rules taking advantage of free multi-media governing prepaid load expiry and For a highly penetrated mobile content and paid video streaming Mobile Number Portability (MNP). market such as the Philippines, the services which are encroaching on On MNP, the incumbents, along with prevalence of affordable data plans cable TV service. Beyond connectivity, the new player, have since formed a and smart devices is further driving corporate and enterprise clients are joint venture and enlisted US-based the demand for data. Visiting social looking to service providers, including Syniverse as its Mobile Number media and streaming video sites, and telco partners, to provide solutions to Portability Service Provider (MNPSP). playing games are the top activities help businesses grow, generate more Full implementation of MNP is set for Filipinos online. Other than revenue, and safeguard vital business for 2021. entertainment, data also allows more information and corporate assets.
Strategies
Globe continues to invest in the Increase Household Penetration through programs to acquire quality Philippines towards enabling Filipino Laying the groundwork for owning customers through content families and businesses, reaching the home through innovative a record CAPEX of 51.0 Billion products and services, right channel Create new and profitable in 2019. play, and strategic network migration revenue streams Unlocking value in digital technology, Globe’s programs in 2019 are Develop ICT Capabilities lifestyle and entertainment through anchored on improving customer Establishing Globe as a trusted digital complementary plays with core telco experience and elevating digital transformation partner of large products proposition: and small enterprise customers by providing compelling ICT services Agile Workforce Accelerate network roll out Building an agile organization with Accelerating builds of wireless sites to Habituate and Monetize a deeper understanding of the catch up on demand, increasing wired Sustaining gains in data habituation customer to allow us to be more footprint to address serviceability by protecting the customer base and responsive to customer needs
84 Fueling the power of connectedness Strategy Description 2019 Performance 2020 Priorities
Accelerate Long-term commitment CAPEX of P51.0 billion or Committing to CAPEX of P63.0 billion Network to provide best-in-class US$989 million Rollout internet connectivity Bring internet services to more As of end December 2019, Filipino households through wireless Globe put up 139% more home broadband and constantly sites versus 2018 improve overall network experience
Added more 3G and 4G base Bring seamless internet connectivity stations, putting up 28% services to more households and more than last year consistently deliver improved customer experience 1,699 petabytes in mobile data traffic vs 956 in 2018 Launch of relevant 5G offers for the home and central business districts
Increase To be the leader of the 2.0 million home broadband Continue to forge partnerships and Household Filipino digital lifestyle customers as of end of 2019 create innovative content-driven Penetration by providing world- experiences for customers class technologies 94.2 million mobile Habituate And for entertainment, subscribers as of end of 2019 Establish Esports Center as home for Monetize education, engagement Esports thought leadership and rewards designed Launch of the commercial to address customers’ pilot for At Home Air Fiber Continue deployment of Go WiFi and needs. 5G services in 2019, offering Community WiFi where and when it new connectivity options to matters deliver high-speed broadband access Transform trade / distribution experience, beyond telco-products 38.4 Transactional Net Promoter Score (NPS) score Transform end-to-end prepaid versus 34.5 in 2018 experience, to enable digital life
Diverse portfolio of Improve customer experience via partnerships: ONE, NBA, hyper-targeted Rewards; provide Netflix, Spotify, Disneylife, personalized rewards Fox+, Viu, HOOQ, Klook Constantly improve how Globe Deployed Go WiFi and communicates to its customers Community WiFi to enhance/ through digital sales and care expand the experience of channels Globe mobile and broadband customers Use of multiple and integrated channels (omni-channel) that create cohesive and personalized customer experience
Create delightful customer experiences across complementing digital and traditional channels that cohesively serve customer needs
Deliver seamless, frictionless, immersive and consistent customer digital experience
85 Globe Telecom 2019 Integrated Report Strategy
Strategy Description 2019 Performance 2020 Priorities
Develop New To empower the local Enabled micro, small, medium and Empower the local economy ICT Capabilities economy in its digital large enterprises with relevant in its digital transformation transformation by business solutions by helping business flourish New and helping businesses through the right technology, Profitable flourish through the Cloud adoption and Cyber Security infrastructure, solutions and Revenue right technology, solutions for Enterprise customers know-how Streams infrastructure, solutions Over 1.2 million AMAX retailers Enable small business owners and know-how to offer more products and GCash has 75,000 QR merchants, services to stimulate the 30,000 cash-in points and 400 e-commerce industry and the partner billers who accept GCash digital economy, through EC Pay payments
Acquisition of a 77% stake in EC Pay, which allows Globe to modernize/ digitalize its prepaid loading channels and advances Globe’s ambition to be the leader of the Filipino digital lifestyle
Agile Workforce To create a high- 8,048 regular employees (53% male Create a high-performing performing organization and 47% female) organization through a through a purpose- purpose-driven workforce with driven workforce with a 91% Sustainable Engagement score a culture of empowerment, culture of empowerment, in 2018 (net of retention score) collaboration and innovation collaboration and innovation 88% Organizational Health Index Pioneer the transformation Score in 2019 of the service delivery engine to Simple, Digital, Agile (SDA) Purpose Survey Indicators for faster time to market, • Role and Work contribution to efficient delivery, effective Globe Purpose: 91 in 2019 vs 87 in cost management and better 2018 collaboration
• Personal Purpose contribution to Continuing organizational Globe Purpose: 88 in 2019 vs 87 in focus on customer-centricity 2018 Enabling an agile organization • Employer Net Promoter Score through agile competency- (NPS): Likeliness to recommend building and ways of working Globe as an employer: 53.40 vs Empowering leadership with a 43.38 in 2018 focus on clarity, collaboration Employee volunteers comprised 40 and succession planning percent of total employee base Perpetuating the Circle of Zero fatality rate and zero man-hours Happiness through Purpose, lost due to work-related accidents Globe Values and overall Organizational Health Transition towards building an enterprise-wide Simple, Digital, Agile Valuing People and together, (SDA) organization. ensuring sustainability
86 Fueling the power of connectedness 2020 Outlook
2020 is seen as another record year • Build a customer-centric approach • Build foundations to provide a in terms of reinvestment, as Globe to execute more efficiently and unified, deeper and insightful view serves over 96 million customers effectively of the customers. nationwide and committing to 63.0 billion in CAPEX in 2020 • Further enhance brand proposition through offers that will improve • Protect customer base by overall experience and heighten improving network experience customer engagement
• Accelerate growth of new • Fast track development of ICT businesses by leveraging on the capabilities, especially on cloud and strength of the core cyber security, through strategic partnerships
Strategy Towards Climate Action
As part of the Singtel group and a Globe holds a high standard of This is aligned with the Philippine GSMA-led initiative, Globe has joined responsibility towards its stakeholders Government priority programs to more than 50 mobile operators to to deliver transparency in the implement energy efficient measures combat climate change through company’s methods of environmental to reduce power consumption. the Carbon Disclosure Project’s stewardship, particularly through (CDP) global disclosure system. the CDP system. With thousands of Globe also has several governance With a vision to achieve net-zero cell sites nationwide, the company’s teams working on various initiatives greenhouse gas (GHG) emissions by footprint spans two-thirds of the towards decarbonizing the company. 2050, in alignment with objectives country’s population. The company’s This process of inculcating climate of the Paris Agreement 2016, the Chief Technology and Information action in Globe’s strategy has also initiative aims to develop a mobile Officer (CTIO) and Chief Strategy initiated a shift in corporate policy as industry climate action roadmap to Officer (CSO), Mr. Genio states that well as the implementation of energy create a decarbonization pathway power consumption is one of the saving programs that are conducted for the mobile sector by February most pressing issues for Globe as across sites nationwide. 2020. Efforts are underway to well as the Philippines. While the completely incorporate the TCFD increased cell sites would contribute recommendations in Globe’s strategy to the consequent increase in and risk management procedures. It the footprint, it would also have has been further elaborated in the a positive technological impact Natural Capital section of this report. through reduced power consumption.
87 Globe Telecom 2019 Integrated Report Stakeholder Engagement
Globe’s stakeholder’s expectations, Understanding the company’s platform-based dialogue and group needs, and aspirations are at the core stakeholders is imperative to align interactions. The company’s identified of its purpose. The company considers the corporate strategy and enhance medium of engagement is tailored for it important to periodically engage the relevance of communications each stakeholder group depending with its wide range of stakeholders to published through various on stakeholder convenience. The capture the multitude of expectations platforms. Globe employs a range response received is reviewed by they have from the business. of engagement techniques with the management periodically and various stakeholders spanning from incorporated into business strategy one to one meetings, surveys, online and implementation.
Globe Telecom Annual Stockholders’ Meeting, April 23, 2019 (L-R) Ernest Cu, President and CEO; and Jaime Augusto Zobel de Ayala, Chairman, at the Globe Telecom 2019 Annual Stockholders’ Meeting
Stakeholder Stakeholder Mode of Engagement Frequency Globe initiatives Group Concerns
Shareholders •• Annual Stockholders’ •• Annually •• Higher •• Consistent dividend payout and Investors Meeting •• Quarterly financial return •• Financial Performance •• Quarterly Investors’ •• Return on Investment (ROI) Briefing
Employees •• iSpeak or Sustainable •• Every Other •• Career •• Quarterly Townhalls or Ka- Engagement Index Year Development Globe Jam •• Everyday Leadership •• Annually Programs •• Globe University Survey •• Safe Workplace •• Leadership and Talent •• Purpose Surveys •• Collaborative Programs •• Performance Plan Environment •• Globe internal Evaluation •• Employee communications channels •• Individual Development Benefits (E-mail and SMS blasts) Plan •• Employee •• Employee Center at the 19F Programs The Globe Tower •• Globe Wellness Centers (gym and sports facilities)
88 Fueling the power of connectedness Stakeholder Stakeholder Mode of Engagement Frequency Globe initiatives Group Concerns
Customers •• Net Promoter Score •• Monthly •• Network •• CAPEX investments •• Customer Index •• Daily Quality •• Globe Stores and other Surveys •• Customer touchpoints •• Customer Feedback Service •• Customizable Products and Management •• Uninterrupted Services •• Globe Online Channels Service •• Online Channels and Chatbots •• Loyalty / •• Internationally-certified Retention Business Continuity Programs Management Programs
Community • Community • Regular • Community •• Globe Bridging Communities Engagement Development Program Programs
Partner • Vendor Management • Regular •• Long-term •• Vendor Management Vendors and partnership •• Business Partner Awards Suppliers •• Ethical •• Vendor Briefing and behavior Onboarding •• Uninterrupted •• Sustainable Supply Chain service Management Program •• Clear Procurement Policies •• Payment schedule
Government • Compliance to • Regular • Compliance • Annual Integrated Report Government Quarterly Report Regulations Public disclosures • Communicate commercial, policy, regulatory, and other relevant matters with government authorities and regulators, and continue compliance to all government requirements as prescribed by law.
Media • News Seeding • Daily • Regular and •• Globe Newsroom site Press Conferences • Regular up-to-date •• Daily news seeding Media Relations • Annually disclosures •• Media Relations Globe Media Excellence • Building Awards partnerships
89 Globe Telecom 2019 Integrated Report Materiality
Globe’s materiality assessment geographic presence, product •• New regulatory issues, Public is based on the Sustainability offering, as well as important recent Policy and Business Ethics were Accounting Standards Board developments and trends. also noted as material issues. (SASB) framework. The Materiality The company is dedicated to Matrix presents, industry specific Some key findings from the work together with regulatory material ESG issues from a business company’s materiality assessment authorities to form policies impact and/or environmental/ included1: and actively take part in policy social impact perspective. ESG advocacy. issues can be interpreted as the •• Customer Experience & Service •• Integrity, anti-corruption and anti- most important management focus has been identified as the most competitive behavior have always areas, i.e. the topics that could cause material issue amongst Globe’s been high priority issues for Globe. the most significant business and/ stakeholders. The company’s assessment further or environmental/social impacts •• Customer Privacy and Data reaffirmed Globe’s understanding if not managed well. The location Security moved a few points down, and the focus that it should give to on the matrix indicates the relative however, it remains one of the top these issues. importance of the ESG issue, with issues, continuing to focus on this •• While Globe is not a those located in the top right corners issue to ensure integrity and trust manufacturing company, it is being the most material for the from Globe’s customers. expected to be mindful of the industry. The graph also highlights •• A huge move was noted on resources that third party vendors the 2-3 ESG issues that have been Community Relations, due to procure or dispose of. This points identified as the most relevant to a strong call from the current towards the materiality of effective elucidate further in this report. This administration on major changes in implementation of Globe’s values selection considers factors specific the telecom industry. towards sustainability throughout to Globe such as business model, the company’s supply chain.
SOCIAL
CAPITAL Supply Chain & Public Business Responsible Customer Environmental Policy Ethics Business Experience Responsibility Operations & Service Highly Important Highly LEADERSHIP & GOVERNANCE Selling Practices & Community Product Labelling Relations
Economic Impact & Employee BUSINESS MODEL Financial Performance Welfare & INNOVATION
Material Sourcing VALUE TO GLOBE TO VALUE HUMAN & Efficiency CAPITAL Customer Privacy & Data Security *based on SASB framework
Waste & Hazardous Materials Management Important
FREQUENCY RAISED BY STAKEHOLDERS
90 Fueling the power of connectedness Sustainability Reporting Frameworks Index
Page Material Topics GRI Standards SASB TCFD
103-1 Customer Experience TC0301-09 Social and 103-2 138-142 & Service TC0301-10 Relationship Capital 103-3
102-44 103-1 103-2 Social and 88-89 Community Relations 103-3 Relationship Capital 147-151 413-1 413-2
103-1 Selling Practices & Product 103-2 Social and 138-142 Labelling 103-3 Relationship Capital 417-1
103-1 103-2 44-46 Responsible Business 103-3 Corporate 54-59 Operations 204-1 Governance 145-146 205 206
103-1 103-2 • Climate risks 103-3 • Climate linked Supply Chain & 307-1 87 TC0301-01 metrics and Environmental 204-1 Natural Capital 145-147 TC0301-08 targets Responsibility 302-1 152-163 • Climate linked 305-1 strategy 305-2 306-2
103-1 Waste and Hazardous 103-2 • Climate linked 87 TC0301-08 Natural Capital Materials Management 103-3 strategy 160-162 306-2
103-1 103-2 Material Sourcing and • Climate linked 87 103-3 TC0301-08 Natural Capital Efficiency strategy 154-160 306-2 204-1
103-1 103-2 Manufactured Public Policy 103-106 103-3 Capital 415
TC0301-02 103-1 TC0301-03 Customer Privacy & Data 103-2 TC0301-04 Social and 116-119 Security 103-3 TC0301-05 Relationship Capital 418-1 TC0301-06 TC0301-07
103-1 103-2 103-3 401-1 401-2 Employee well-being Human Capital 122-135 404-1 404-2 404-3 404-3 405-1
103-1 103-2 Corporate Business Ethics 103-3 • Governance 57-64 Governance 102-16 102-17
103-1 103-2 Economic Impact and 103-3 Financial Capital 98-99 Financial Performance 203-1 203-2
91 Globe Telecom 2019 Integrated Report How Globe Creates Value
Our Inputs Our Business Activities
FINANCIAL CAPITAL Resources and investments
P76B EBITDA (up 17% YoY)
P149B Gross Service Revenues
MANUFACTURED CAPITAL Customers Frontline Vendor Partner Government Network investments and infrastructure 139% more sites vs 2018 Globe Increase Household PenetrationGlobe Stores Community 28% more 3G and 4G base stations vs 2018
INTELLECTUAL CAPITAL IT investments and infrastructure Disaster Respondents Invested US$60M in privacy and cybersecurity capabilities US$11.5 M of the 2019 CAPEX budget allocated Agile Workforce • Accelerate Network Rollout to Privacy & Data Protection, Signaling or Telco
New & Profitable Revenue Streams
HUMAN CAPITAL Companies & Affiliates Parent Workforce and organizational culture UN GLOBAL COMPACT 8,048 Employees 65M invested in skills training and development Online Application-based Channels Platforms Develop ICT Capabilities • Habituate & Monetize
Employees Service Vendor Partner Media SOCIAL & RELATIONSHIP CAPITAL Customers, Supply Chain and Community 86.5B business to local suppliers over 1.2 million AMAX retailers, diustributors CATALYZING CHANGE AND SYNERGIZING NETWORKS and business partners nationwide As a purpose-led organization, Globe operates on a business model that aims to digitally transform the lives if its stakeholders - customers, businesses and the nation.
NATURAL CAPITAL This IIRC
92 Fueling the power of connectedness Our Outputs Our Outcomes
FINANCIAL CAPITAL A record CAPEX of 51.0 billion spent in 2019 149.0B Gross Service Revenues Total mobile subscriber base is 94.2 million 11% Shareholder Return Total home broadband subscriber base now stands at over 2.0 million 12.1B Dividend Payment to Common Shareholders
Live demonstration of 5G technology with MANUFACTURED CAPITAL wireless speeds of 2Gbps Over 2,500 locations with GoWifi access Allocated 43.5 billion in capital expenditures nationwide in 2019 to widen its 4G/LTE data coverage, improve voice quality, and increase data 1,699 petabytes of mobile data traffic speeds
Launching the BB ART initiative to ease the process of developing software INTELLECTUAL CAPITAL
Launched Mynt and GCash in partnership with Developed 141 internal APIs with a total Ant Financial and Ayala Corporation of 476 to-date Launched the Accelerated Cloud Launched various Apps and initiatives for Cadetship Enablement (AC2E) Program Globe’s stakeholders
Implementing initiatives such as digitizing HR management and Flexible Work HUMAN CAPITAL Arrangement (FWA) Program Awarded as Top Workplace in Asia Ensuring a safety first approach as the by Asia Corporate Excellence and basis of OHS strategy Sustainability Awards 47% female in the workforce Enabling employee growth and success through learning and development strategies
Developing the SEED strategy for SOCIAL & RELATIONSHIP CAPITAL Globe’s consumers 38.4% Net Promoter Score Initiatives to enhance customer experience such as 917 ventures Sustainable Supply Chain Management
Digital Thumbprint Program (DTP) SROI Framework
Inclusion of Social Innovation in Marine Biodiversity Program NATURAL CAPITAL
Deployed green solutions targeting energy Achieved carbon neutrality for select Globe efficiency in Globe cell sites Corporate Offices Implementation of renewable energy Integrated Management Systems for BCM, solutions like Solar Panels and Fuel Cells OHS and Environment within its operations
93 Globe Telecom 2019 Integrated Report Capitals
94 Fueling the power of connectedness 95 Globe Telecom 2019 Integrated Report Financial Capital
Favoring Sustainable Variations
“We need to invest in our infrastructure, employ technologies New and Profitable Revenue Streams that are up-to-date to cope up with the STRATEGIC INTENT ever-changing demands of our customers. We have to find the next big thing Economic Impact and Financial Performance (startup “unicorns”) and bet on the right MATERIAL TOPIC ventures”
Rosemarie Maniego-Eala Chief Financial Officer, Financial Risk Treasurer and Chief Risk Officer Business Disruption Risk
Information and Communications Technology Risk
Competition Risk RISKS ADDRESSED Digital Transformation Risk
Third Party Risk
Decent Work and Economic Growth
Industry, Innovation and Infrastructure
Partnerships for the Goals SDGs IN FOCUS
Human Rights Environment Principle 1: Businesses should support and respect Principle 7: Businesses should support a the protection of internationally proclaimed human precautionary approach to environmental challenges; rights; and Principle 8: undertake initiatives to promote greater Principle 2: make sure that they are not complicit in environmental responsibility; and human rights abuses. Principle 9: encourage the development and diffusion of environmentally friendly technologies. Labour Principle 3: Businesses should uphold the freedom of Anti-Corruption UNGC PRINCIPLES association and the effective recognition of the right Principle 10: Businesses should work against to collective bargaining; corruption in all its forms, including extortion and Principle 4: the elimination of all forms of forced and bribery. compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation.
96 Fueling the power of connectedness Understanding Social Return on Investment (SROI) Interlinkages and Synergies for Pilot SROI in Citizenship and Corporate Social Financial Capital Responsibility (CSR) program
SROI conducted for Digital Thumbprint Program (DTP)
Network-related Continue implementation investments of SROI Framework for CSR Programs Expansion of network- Investments made in related investments employee training and development As of December 2019, Globe put up 139% more Amount invested in sites and 28% more 3G and employee training and 4G base stations compared development to 2018. SOCIAL & 65M spent in employee Enhance infrastructural RELATIONSHIP training coverage to support expanding customer base Maintain current level of expenditure
HUMAN MANUFACTURED
FINANCIAL
Investments made in Enterprise applications enhancing resource usage and tools optimization
Innovative technology Financial and Operational Efficiency for Network- “Best Project NATURAL related Investments Contributing to Customer INTELLECTUAL Excellence” given by Implemented Save2Grow the Process Excellence (S2G) Program Network (PEX) Continue implementation Adoption of ICT and of S2G increased digitalization
Initiatives Key 2019 2020 Defining Performance Performance Priorities Interlinkages Indicators
97 Globe Telecom 2019 Integrated Report Financial Capital
FINANCIAL PERFORMANCE were 162.96 and 135.91, while “First and foremost, consolidated diluted earnings the company needs to Globe Telecom Inc. closed 2019 per common share were 162.20 perform efficiently with consolidated service revenues and 135.40 as of 31 December 2019 and generate returns amounting to P149.0 billion, a solid and 31 December 2018, respectively. 12% higher from 2018. This growth that are not only was fueled by an increase from data The balance sheet and cash flows competitive in the usage across mobile, broadband and remain strong with ample liquidity short-term but also corporate data services. and gearing below bank covenants. sustainable in the On a consolidated basis, Globe closed long run, in order to OPERATIONAL HIGHLIGHTS 2019 with gross debt to equity ratio attract investors. on a consolidated basis at 1.68:1 This means (a) pushing Globe Group’s consolidated assets as and is still within the 3.0:1 debt to of 31 December 2019 amounted to equity limit dictated by Globe’s debt for automation and P304.3 billion compared to P299.5 covenants. Meanwhile, net debt to operational efficiencies billion as of December 31, 2018. equity ratio was at 1.58:1 as of end- to increase net cash Consolidated cash, cash equivalents December 2019 and 1.71:1 as of end flows, (b) adhering and short-term investments December 2018. Lastly, the company to our corporate (including investments in assets also paid out P12.1 billion in common governance policies, available for sale and held to maturity cash dividends in 2019, representing (3) investing in the investments) was at P8.3 billion as 65% of 2018 core net income. This of 31 December 2019 compared to was in line with Globe’s dividend network to cater to P23.2 billion as of 31 December 2018. policy of distributing 60% to 75% of the long-term demand prior year’s core net income. of our customers, and Consolidated net cash flows provided (4) supporting adjacent by operating activities for FY 2019 DIRECT IMPACT AND businesses that keep was at P74.0 billion, up by 28% last CONTRIBUTIONS TO THE the company relevant ECONOMY year. Net cash used in investing in the lives of activities amounting to P55.0 billion, was 29% higher than last year. In 2019, Globe spent a record CAPEX customers.” Meanwhile, net cash used in financing of P51.0 billion, about US$989 activities amounted to P33.3 billion, million, which is 18% higher than a Rosemarie Maniego-Eala which is significantly higher than last year ago and this represented 34% Chief Financial Officer, year’s P3.4 billion. This was driven of Globe’s gross service revenues Treasurer and Chief Risk Officer by higher repayment of borrowings, and 67% of Globe’s full year Earnings and interest payments, coupled with Before Interest, Taxes, Depreciation the lease liability payments this and Amortization (EBITDA). A period with the adoption of Philippine significant amount of the all-time Financial Reporting Standard (PFRS) high spend went to data-related 16 on Leases. Consolidated total debt requirements, comprising 79%, as declined by 8% from P148.3 billion as the company continued to invest of 31 December 2018 to only P136.3 in the Philippines towards enabling billion as of 31 December 2019. Filipino families and businesses. This record spend allowed Globe to make Consolidated Return on Average significant gains and fast-track its Equity (ROE) registered at 28.9% as network rollout during the year. As of 31 December 2019, compared to of December 2019, the company 26.7% in 2018 using annualized net put up 139% more sites versus 2018 income and based on average equity and added 69% more base stations balances for 2019. Using annualized than last year. These gains benefited core net income, which excludes the customers as evidenced in the latest effects of non-recurring expenses on results of third party network quality net income, return on average equity test providers. The results showed as of end-December 2019 and 2018 that Globe’s LTE download speed, were 29.1% and 26.8%, respectively. upload speed and latency in the 4th quarter of 2019 improved nearly 16%, Accordingly, consolidated basic 6% and 9% respectively, compared to earnings per common share the same period last year. Moreover,
98 Fueling the power of connectedness these improvements were achieved despite a 58% growth in mobile data traffic over the same period.
Globe’s total operating expenses including subsidy posted close to P73.0 billion for the period, or an 8% increase from a year ago, leading to consolidated EBITDA at P76.0 billion in 2019, which is up 17% from 2018. As a result of the top line growth, which fully covered the increases in operating costs, depreciation charges and non-operating expenses, net income stood at P22.3 billion, or up 20% from the year before. Accordingly, core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, stood at P22.5 billion, 20% higher year-on‑year. Globe Business held its Leadership FIXED LINE AND HOME Innovation (Lead-In) 2019 with the MOBILE BUSINESS BROADBAND BUSINESS theme: Becoming a Catalysts for a meaningful impact (L-R) Renato Jiao, Chief Human Resource Officer; Jaime Revenues posted P111.8 billion or up Globe Group’s Fixed line and Home Augusto Zobel de Ayala, Chairman; Benjie Broadband revenues stood at P37.2 Yap, Unilever Philippines Chairman and by 12%, surpassing the P99.5 billion CEO; Kate Krukiel, Director of Strategic reported last year. As the mobile billion in 2019, which is 12% higher Partnership for Microsoft Global; and segment continued to dominate the year-on-year from P33.3 billion Peter Maquera Philippine market, mobile revenues in 2018, bolstered by the solid remained the largest revenue contributions of home broadband and contributor, accounting for 75% of corporate data. driven by the sustained circuit base the total service revenues led by the expansion, the strong demand for company’s Prepaid brands. Total Home broadband revenues reached domestic and international leased line mobile subscriber base is now at 94.2 P21.7 billion this period, surpassing services, cloud-based services, and million, up 27% from 2018. last year’s P18.6 billion by 17%. This managed/modern business solutions. was driven by a rising level of fixed Globe’s total Fixed line Voice From a product perspective, mobile wireless broadband users reaching revenues however, declined year-on- data revenues generated P71.8 billion close to 1.4 million (up 40% year- year by 10%. in 2019 from nearly P51.0 billion on-year). Total home broadband last year, that is mainly driven by the subscriber base now stands at over 2020 OUTLOOK surging demand for video streaming, 2.0 million, up 25% from a year ago. gaming apps and social media. The rising popularity of Home Prepaid For 2020, the company expects the This was further boosted by the WiFi and compelling broadband market to remain competitive, given compelling promotions for higher- plans bundled with the best local and the continued shift in the customer’s value data centric plans. Mobile data international content fueled @Home lifestyles and usage in a digital now accounts for 64% of mobile broadband’s continued success. The world. Against this environment, the revenues from 51% a year ago. Mobile launch of the commercial pilot for At company believes that the overall data traffic likewise rose from 956 Home Air Fiber 5G services further business momentum built, and petabytes in 2018 to 1,699 petabytes expanded Globe’s product suite, the product platforms that are in in 2019, a 78% growth year-on-year. offering new connectivity options to place, coupled with the aggressive Meanwhile, mobile voice and mobile deliver high-speed broadband access investments made in the Globe SMS revenues for the period ended to its broadband customers network would allow revenues to at P24.3 billion and P15.7 billion, increase by mid to high single digit lower year-on-year by 15% and 22%, The Corporate Data business from 2019 level. The 2020 CAPEX respectively. This can be attributed sustained its growth momentum, budget will be approximately US$1.2 to the shift towards IP/OTT-based ending the year with P12.8 billion billion or P63 billion for continued communications. revenues, or up 9% year-on-year, network expansion and enhancement.
99 Globe Telecom 2019 Integrated Report Manufactured Capital
Building Infrastructural Value for the Next Decade “The most immediate thing we can do is to manage power consumption. Power is not just about power Accelerate Network Rollout efficiency. If we can have more sites, we STRATEGIC INTENT can lower the power for literally across the entire network and
Responsible Business Operations bring dramatic savings for both the company Public Policy and the customers. With MATERIAL TOPIC higher site density, devices of customers such as mobile phones, Climate Risk tablets, or modems Political and Socio-Economic Risk can operate with lower Regulatory Risk power, thereby leading to consumer savings as Cybersecurity and Data Privacy Risk well. Modernizing our Revenue Leakage Risk RISKS ADDRESSED equipment is equally Fraud Risk important to us as we Information and Communications Technology Risk expand. That’s why it is important for us Third Party Risk to keep on investing Customer Experience Risk in CAPEX because every year, we tend to buy newer equipment. The newer equipment Decent Work and Economic Growth tends to be also more Industry, Innovation and Infrastructure efficient.” Sustainable Cities and Communities Gil B. Genio Climate Action Chief Technology and Information Officer (CTIO) and Chief Strategy Partnerships for the Goals Officer (CSO) SDGs IN FOCUS
Human Rights Principle 6: the elimination of discrimination in Principle 1: Businesses should support and respect respect of employment and occupation. the protection of internationally proclaimed human rights; and Environment Principle 2: make sure that they are not complicit in Principle 7: Businesses should support a human rights abuses. precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater Labour environmental responsibility; and UNGC PRINCIPLES Principle 3: Businesses should uphold the freedom of Principle 9: encourage the development and diffusion association and the effective recognition of the right of environmentally friendly technologies. to collective bargaining; Principle 4: the elimination of all forms of forced and Anti-Corruption compulsory labour; Principle 10: Businesses should work against Principle 5: the effective abolition of child labour; and corruption in all its forms, including extortion and bribery.
100 Fueling the power of connectedness Understanding Interlinkages and
Embedding environmental Synergies for conservation in the Manufactured functioning of infrastructural assets Capital
Business continuity LEED Certification management enables customers to continuously The Globe Tower is Gold have access to services LEED Certified since 2014
Business continuity- Retain certification related initiatives such as Network-related emergency communication investments solutions CAPEX towards network Globe deployed a Mobile expansion Emergency Alert System via Cell Broadcast capability CAPEX 51 billion / US$989 million dedicated Continue to enable towards network expansion uninterrupted services NATURAL and equip customers and Committing to 63.0 billion employees with effective / US$1.2 billion in network disaster response expansion
FINANCIAL SOCIAL & RELATIONSHIP
MANUFACTURED
Tapping into current Infrastructural intellectual assets such as investment for employee 5G technology well-being Built in technology for apps
Utilization of Globe Pad Progress on 5G deployment by the Flat’s initiative INTELLECTUAL and market uptake HUMAN Launch of The Globe Pad Live demonstration of its 5G technology at Bonifacio Encourage utilization of Global City in Taguig City The Globe Pad and showcased wireless speeds of 2Gbps
Build 5G capabilities while continuing to retain 4G
Initiatives Key 2019 2020 Defining Performance Performance Priorities Interlinkages Indicators
101 Globe Telecom 2019 Integrated Report Manufactured Capital
BUILDING THE PHILIPPINES AS A DIGITAL NATION
Globe has been steadfast in making substantial investments towards enhancing its infrastructural capabilities to accelerate the digital transformation of the country. In the Philippines, around 67 million active internet users share 17,850 cell sites. The current digital ecosystem in the country is hence forced to serve an average of 3,753 people per cell site. This lower cell site density stands in stark contrast with neighboring countries like China, where only 381 active internet users are sharing one (1) cell site1. Globe has actively invested towards building more cell sites to effectively expand network coverage and capacities for better internet experience of its customers. Having a robust network in place is telecommunication infrastructure Two (2) members of the Globe network one of the key strengths that has assets such as data centers, mobile team improve its existing facilities contributed to a solid reputation for in Bohol to boost connectivity in the towers, submarine cables and province Globe, as a game changer and leader fibre infrastructure as they form in the mobile segment. By steadily the backbone of enhanced digital channeling its resources towards service capabilities. Consequently, building the network infrastructure of most telecommunication operators the nation, Globe envisions to infuse are in heavy investment phases in digital in every facet of the economy. both fixed and mobile segments. The investments are primarily With rising competitive pressures being made to upgrade the 4G and challenges in the operating network infrastructure. However, environment, Globe is committed to with the advent of 5G, a new wave its long-term objective of providing of consolidation is anticipated in the the Philippines with first-world Philippines. But not before 2022- connectivity. The company initiated 2023, with predictions for margins a massive network modernization getting squeezed further and a new program in 2011, which led to CAPEX cycle kicking in.2 unprecedented growth of its business, driven by pioneering initiatives such Towards its commitment to support as digital lifestyle play, innovative a digital lifestyle for Filipinos, Globe products and services and content continues to invest in strengthening partnerships with iconic global its data network capacity in the brands. In 2019, the company was Philippines and optimizing its existing even able to provide Filipinos a spectrum. The company’s 2019 flavor of early stage 5G network outlook strategically incorporated connectivity. plans to build a record number of new cell sites and invest significantly LAYING THE GROUNDWORK FOR in growing its broadband footprint. IMPROVED INFRASTRUCTURE With further expansion of its network footprint and enabling the connection Investment funds are now seen to of more Filipino homes with high be assigning high value multiples to
102 Fueling the power of connectedness speed lines, Globe aims to deliver an Rate) to reach US$708.86 billion by An unprecedented wave of even better customer experience to 2025.6 capital spending, in Php digitally empower more Filipinos. 51.024B 42.54B The company has undertaken various 43.5B With industry trends and reports initiatives in 2019 to address the 36.74B depicting a steady increase in the use growing demand for data as well of data, Globe has made significant as increasing diversification in the 32.13B investments to meet the rising telecommunication market. Globe’s demand for better connectivity strategy through these initiatives is to and capacity by deploying be a true market disruptor and ensure requisite infrastructure at scale. It resiliency in its network infrastructure. 2015 2016 2017 2018 2019 is noteworthy that of the US$989 The company understands that million total capital expenditures in to ensure this outcome, network 2019, Globe invested US$802 million resiliency is required to inculcate for network expansion and upgrade. the ability to be agile and pivot This investment has translated in quickly, thus capitalizing on emerging the company deploying close to opportunities and market leadership. 40,000 LTE cell sites and doubling Globe is dedicated to enable the the deployment of massive MIMO vision laid out by the government (multiple input, multiple output) for digital transformation of the sites, adding 100 Gbps capacity. economy. The company adopts The capital investments made well a beyond compliance approach positions the company to steer the thereby going the extra mile to Philippines towards the next wave of make meaningful contributions digitalization. to policy directives focusing on building network infrastructure and ADDRESSING THE GROWING capabilities. DATA DEMAND Addressing growing data demand Mobile data traffic around the with 4G/LTE coverage: world has grown exponentially with In 2019 Globe’s data traffic grew by the ever-improving generation of 78% to 1699 petabytes, compared to smartphone devices and network the same period in 2018. In order to quality. According to Ericsson’s support this initiative, Globe allocated Mobility Report in the third quarter a significant portion of its 51.0 of 2019, mobile data traffic surged billion capital expenditures in 2019 by almost 68% year on year.3 Further, to widen its 4G/LTE data coverage, the Philippines is ranked as one of improve voice quality, and increase the top 20 countries with the highest data speeds. The increasing amount number of internet users in 20194 as of capital expenditure can be seen well as the social media capital of below. the world, for the third time in a row. On average, it is noted that Filipinos The company’s 3G coverage has spend 4 hours and 12 minutes increased to 92.1% of the population, on social media.5 With changing 4G LTE coverage to 83.4%, with customer needs and preferences, high-speed transmission extended to for example, shift from high-margin 84% of its sites. Globe’s international voice and SMS services to low-margin mobile operations now has 9,228 data products, telecommunication 3G sites and 7,999 4G sites. Through companies’ earnings are seen to routine network quality tests, Globe take a hit. With the incentive to now can confirm that the company now push boundaries beyond the core leads in most quality indicators. business of network provision, data monetization opens a new avenue to With consistent upgrading of its market and is expected to expand by network to support 5G, Globe is 21.4% (Compound Annual Growth also pushing the boundaries of 4G/
103 Globe Telecom 2019 Integrated Report Manufactured Capital
LTE technology in order to deliver a large number of antennas to digital enables better access to an enhanced overall fixed wireless improve cell capacity. The technology world class entertainment as well as experience for its customers. In 2019, increases wireless throughput while enablement to Filipinos. In 2019, the the company increased its wireless accommodating more users at higher company made remarkable progress footprint, adding 139% more cell sites data rates with better reliability on the broadband front by exceeding versus 2018. Additionally, Globe has while consuming less power. Globe NTC Wireless Broadband speed been commercially deploying massive deployed the technology in homes commitment with 93% of cities and MIMO technology using 2CC carrier during the second quarter of 2019. municipalities covered. aggregation since 2017. This doubles In addition to the deployment of LTE the LTE capacity and provides vast services, Globe has deployed almost Bringing the reality of 5G to Globe At mobile capacity, coverage, and 300 massive MIMO (multiple input, Home consumers reliability for the 5G in the future. multiple output) sites using high- With 5G networks bringing in the band spectrum 2600 MHz. This is next generation of mobile internet As a result of these continuous twice the deployment in 2017, adding connectivity, it would be seen to efforts, Globe won the 4G availability 100Gbps of capacity. deliver faster and enhanced mobile award from OpenSignal (a company broadband to consumers as well as that tracks the real-world experience Broadband enable hyper-connectivity between of consumers on mobile networks). Broadband’s (BB) key strategy is machines, people and things (the to provide a strong foundation as Internet of Things or IoT technology), Improving network quality with a world-class digital enabler for all. thus allowing for a smarter and Multiple Input, Multiple Output As a great equalizer, digital caters to more connected world. In delivering (MIMO) the needs of the rich and the poor. better customer experience using Massive MIMO is a wireless In the Philippines, where there is 5G, telecommunication companies transmission technique that uses huge disparity in incomes present, will have to put up more cell
Case Studies Expanding Digital Reach
“Digital inclusion is Globe’s efforts to bring in increased coal reserves. However, most of a huge undertaking connectivity and better infrastructure the workers and their families because it requires for the Philippines can be seen are from the nearby provinces of cooperation from through the company’s initiatives Mindanao. Mobile connectivity and and the subsequent outcomes. The digital applications thus form an a broad set of company leverages its infrastructural indispensable part of their lives. stakeholders—private capabilities to create sustained Through this initiative, over 19,000 enterprises, local value for communities and bolster residents of Semirara Island now have residents, and local sustainable development in the access to better mobile connectivity, government. We are economy. digital applications and cyber happy that the wellness training. The partnership stakeholders have Digital inclusion with SMPC was also aimed to further given their support Globe has partnered with the largest upgrade all cell towers in the island so we can bring about coal producer in the Philippines, with LTE technology to improve voice change that would Semirara Mining and Power and video communication focusing on Corporation (SMPC) and the local bringing better network connectivity eventually result to government unit to work towards to serve as a bridge between Semirara a more progressive promoting digital inclusion in the Island and the outside world. Through community,” remote island community of Semirara this initiative, forecasts about Ernest Cu, in Caluya, Antique. An hour’s flight typhoons were readily available for President and CEO from Manila, Semirara Island has an the fisherfolk community and island area of 55 square kilometers and residents were able to keep in touch is home to the country’s richest with family members. The upgrade
104 Fueling the power of connectedness towers, antennas, and base stations, can now circumvent infrastructure especially in cities where line-of- bottlenecks usually encountered in The company has sight transmissions are made more traditional fiber rollouts, particularly difficult. the tedious and lengthy process of maintained its securing multiple permits from local certification on 5G was first offered to Globe at government units. Business Continuity Home fixed broadband subscribers Management (ISO who would enjoy the benefits of CELL SITES AND CHALLENGES 22301) in 2019 speeds from 50 Mbps to 100 Mbps. Globe has already completed a live Globe’s efforts to improve access demonstration of its 5G technology and connectivity is concentrated at Bonifacio Global City in Taguig through its initiatives to increase City and showcased wireless speeds cell site footprint as well as address of 2Gbps. The company officially various bottlenecks in deploying ICT made its 5G fixed wireless broadband and broadband infrastructure in the service called Globe At Home Air country. Facing the criticality of the Fiber commercially available to digital divide, it is seen that 80% of select areas in Pasig City, Rizal, homes do not have fixed broadband Cavite and Bulacan making the access (We Are Social 2020), 10% of Philippines the first country in local communities have no mobile Southeast Asia to experience 5G coverage and 33% of the Philippines’ fixed wireless broadband. With the 107 million population do not have use of 5G-enabled wireless radios access to the internet at all (Global (Air Fiber) technology, the company Data). With this growing digital divide
in the network infrastructure also particularly in high-traffic areas like Sustainable Digital Transformation significantly enriched the resident’s malls, hospitals and schools through In 2019, the leisure hours with readily available strategic partnerships with the public company’s movies, music streaming and mobile and private sector. GoWiFi thereby Network gaming content. enabled more Filipinos to easily enjoy Technology high-quality internet connection at Group Globe has also focused on providing affordable rates. initiated Save To connectivity in remote tourist Grow (S2G), a destinations such as Siargao by In the city of Makati, Globe entered multi-year program focused on installing cell sites to enhance a Public Private Partnership with finding sustainable operational connectivity. Through this move the Makati City local government. efficiencies and identifying savings. the company contributes to not just This partnership enabled Globe These can be reinvested back to the digital inclusion but also boosting the to provide free WiFi access to 27 network to fund additional capacity thriving tourism driven economy of barangay health centers, employees and help address the growing the province. and constituents at Makati City Hall, demand for data, and where possible, and students and faculty at University integrating energy efficient solutions Digital Coverage of Makati. Globe also partnered with in the process. S2G also aims to Globe has been expanding its digital one of the metro’s biggest lifestyle strengthen the demand forecasting footprint through its public free complexes, Araneta Center, to provide process and the demand-to-build WiFi service provider, GoWiFi to fast and reliable internet connectivity cycle time to be ahead of the curve over 2500 locations nationwide. In via its GoWiFi services. and provide superior internet 2019, GoWiFi expanded its coverage, experience to customers.
105 Globe Telecom 2019 Integrated Report Manufactured Capital
between those who have access to probability of cyber-attacks, data alternatives to diesel-powered the internet and those who do not, breaches and network disruptions. generators; and Generators-on-a- it is imperative to address these Further, climate change and weather- Truck (GOAT). To augment its disaster challenges. related disasters are projected response capabilities, Globe acquired to increase in frequency as per satellite phones and built its own two- Globe has undertaken various the 2019 report by the Business way radio infrastructure that spans initiatives to increase internet Continuity Institute.7 These risks can across the country. accessibility for all as well as enable have significant bearing on Globe’s better connectivity in the country. business activities and reputation. In the aspect of disaster preparedness, Globe enables its Supporting a Common Tower Policy As a major telecommunications customers to prepare for disasters With permit issues posing a serious provider in the Philippines, Globe’s through the release of SMS alerts bottleneck to enable seamless investment in Business Continuity as well as Cell Broadcast. This mobile internet connectivity, Globe Management (BCM) forms an is done in partnership with the has established a separate tower important component of its National Disaster Risk Reduction and holding company for the divestment operational resilience and excellence. Management Council (NDRRMC). of its tower assets and signed memorandum of agreements with Globe has a dedicated team along BUSINESS CONTINUITY tower companies for the leasing with other groups in the organization MANAGEMENT FRAMEWORK of additional towers. These will running the Business Continuity enable the company to speed up the Management System that address Globe has incorporated a Business deployment of cell sites and also to business continuity needs. In July Continuity Management Framework, maximize Globe’s telco assets. Globe 2019, the company’s management which ensures the readiness of its has also appealed to the Department system governing this process people, processes and infrastructure of Information and Communications was re-certified by BSI Singapore, to withstand, respond effectively and Technology (DICT) to adopt an an experienced and trusted BCM ensure quick recovery from disasters. inclusive policy on the establishment certification body in the region. Under This was completed to maintain of cell sites under the proposed the Globe’s #GlobeREADY campaign, its ISO 22301 (Business Continuity common cell tower policy. the company regularly participates in Management) certification. The focus the Metro Manila Metrowide Shake in 2019 was the continuous buildup of Reaching Out to the Entire Drill of the government and ensures resources and the operationalization Archipelago alignment of the company’s Disaster of the crisis response plans. The The company’s efforts to consistently Recovery Program (DRP) with various highlights of the operationalization improve user experience can be seen state agencies, local government plans are listed below. through its initiatives to enhance the units, local communities, socio-civic data network in Mindanao. Globe organizations, and other stakeholders • A nationwide rollout of a radio almost doubled its LTE cell count to raise awareness and build network for the exclusive use of to add a total of 1,400 new cells in resilience against calamities. Globe the response team. Davao city. The company’s cell count also conducts evacuation drills in its • A revamp of emergency was extended by 50% in CDO, with offices, mobilizes response teams and communications equipment. an addition of 400 cells. An overall activates multiple crisis command • The establishment of a temporary of 70% of Davao’s population has centers. shelter for employees and their access to LTE services, across 84% of families in the event of a disaster. municipalities. For Mindanao, Globe To manage the impact of a potential This ensures security in case they upgraded 937 sites with additional 7.2-magnitude earthquake in Metro are forced to be displaced from capacity to cater to the data growth Manila, Globe has ready resources to their homes. in the region. Additionally, the deploy emergency communication • The distribution of hard hats company also provided 102 new sites solutions to support customer to employees for additional in Mindanao. requirements such as free calling protection during evacuation. services in the affected areas. Some BUSINESS CONTINUITY of these solutions include, Mobile 2019 ENGAGEMENT ACTIVITIES MANAGEMENT Command Center, Network-in-a-Box AND EXERCISES FOR BCM ENSURING NETWORK READINESS (NIB); Cellsite-on-Wheels (COW); full mobile cell phone network In 2019, Globe ensured the roll-out of Increased digitalization is system called Cellular-on-a-Light- activities and exercises to address the accompanied with a rise in the Truck (COLT); fuel cells and other
106 Fueling the power of connectedness Globe enhanced the connectivity at the tourist paradise of Siargao in Surigao del Norte as it fires up three (3) cell sites in the municipalities of General Luna, Pilar, and Dapa.
107 Globe Telecom 2019 Integrated Report Manufactured Capital
responsiveness of its people in case of Emergency communication Assisting disaster any unforeseen disasters such as the solutions affected communities following: Globe utilizes SMS and cell broadcast Globe has assisted communities technologies to send disaster alerts affected by calamities and disasters • All year-round cascades to increase to subscribers in the affected areas. by deploying Public Service Stations awareness amongst its employees The message is drafted by the with free calls and phone charging and drills to familiarize them with National Disaster Risk Reduction and services. Relief operations were also earthquake response procedures. Management Council (NDRRMC) conducted in communities declared • Joint exercises between Globe and broadcasted by Globe. In 2019, under State of Calamity. These and its critical vendors to ensure the company received 248 requests initiatives were conducted during the a coordinated plan that will and sent out more than 800 million following disasters: achieve minimal disruptions in the SMS Alerts and 100,000 cellphone supply chain. broadcast messages. Globe has • Tropical Depression Usman, Bicol • The total number of activities that deployed a Mobile Emergency Alert Region - January 2019 were carried out for 2019 are as System via Cell Broadcast capability • Tropical Depression Amang, Davao follows: for 2G/3G and SMS broadcast Del Norte - January 2019 »» 96 awareness and plan cascades (approximately 2.5 million subscribers • North Cotabato Earthquake, North conducted per hour or 700 TPS) plus LTE Cell Cotabato - October 2019 »» 60 drills conducted Broadcast Field Trial (within the • Typhoon Quiel, North Luzon - »» 2 exercises conducted with National Capital Region). This is also November 2019 critical vendors in compliance with Republic Act No. • Typhoon Tisoy, South Luzon - »» 1 Crisis Management Team 10639, otherwise known as the Free December 2019 exercise conducted Mobile Disaster Alerts Act. • Typhoon Ursula, Visayas Region - December 2019 2019 GLOBE BCM INITIATIVES Disaster preparedness in line with our memberships EMPLOYEE AND CUSTOMER “The Big One” As a member of the Rapid Emergency INFRASTRUCTURE TOUCHPOINTS Globe is constantly updating its Telecommunications Team formed Disaster Recovery Program to prepare by NDRRMC, Globe also liaises with LEED Certification for the occurrence of a 7.2-magnitude military and police forces and may act Globe’s headquarters operates from earthquake (“The Big One”). In with any of these partnerships during the heart of Bonifacio Global City. addition to having a backup network, disasters. In 2019, the company With the company’s efforts towards the company also aims to support actively participated in the following: climate change and sustainability, rescue operations by deploying the 28-storey structure that houses emergency equipment and Globe • Disaster preparedness planning over 4,000 employees is committed personnel from a strategic location with NDRRMC during typhoons to LEED Gold Certification. In to the disaster area, by land and air. • Collaboration with the Philippine order to implement the project, The company is also developing Disaster Resiliency Foundation Aidea undertook an Integrated selected fixed sites that can survive (PDRF) and the United Nations Project Delivery (IPD) approach. “The Big One”. This could serve as a Office for the Coordination of This ensured a unified approach staging area and provide additional Humanitarian Affairs (UN OCHA) to be implemented from project network coverage. The innovative to address humanitarian needs inception to move-in/move-out Network-in-a-Box (NIB) is an actual during disasters. phase, allowing for the integration cell site that can serve a considerable • Establishment of formal of architecture, engineering, interior number of subscribers but can also be guidelines, led by NDRRMC, for and graphic environmental design to carried as a backpack by personnel. sending disaster alerts to mobile be completed in the most efficient Globe regularly participates in the subscribers. manner. National Simultaneous Earthquake • A highlight of 2019 was the Drills (NSED). The event is held initiative to formalize Globe’s The infrastructure represents a nationwide every quarter and led by disaster support agreement. distinctive exterior form to reflect the National Disaster Risk Reduction This initiated a discussion at Globe’s aspirations and forge a strong and Management Council (NDRRMC), the national level to develop link between consumers, people the disaster preparedness arm of the a framework for multi-agency and the community. To inculcate an Office of Civil Defense. cooperation on emergency employee friendly atmosphere, the telecommunications. Globe headquarters is designed in keeping with the values and behaviors
108 Fueling the power of connectedness that contribute to a one of a kind • A safe place to stay for those who social and psychological workplace. need to stay late in the office due Extensive surveys and interactions to evening shift or overtime work. with employees were conducted to • A shelter for those who are ensure the implementation of this stranded and cannot go home idea. The concept of the interior due to typhoons, flooding or even spaces at the headquarters ensured transportation strike. the integration of the company’s vibrant culture and passion for Each room can accommodate 2 to technology as well as providing the a maximum of 4 employees and utmost comfort and encouraging has facilities such as individual teamwork. workstations, individual closets, air conditioners, 2-way toilet and bath 0917 Lifestyle and kitchen sink. As a strategic move in 2020, Globe now looks to expand 0917 Lifestyle 2020 OUTLOOK with the opening of its first flagship store 0917 Store in Makati, and its With the company’s commitment to e-commerce shop prior to the store strengthen the data network capacity launch. Expansion will also be seen in the Philippines, Globe plans to through new Retail Partners to carry build a record number of new cell the 0917 Apparel and Gadgets Line. sites with significant investment The flagship store will be carrying towards the company’s broadband Globe’s exclusive Vanguard collection footprint. Globe spends more than - infusing Fashion and Technology in one-third of the company’s topline Globe’s Apparel collection, as well as revenues every year to incorporate key collaborations, towards its aim internet services and deliver on the for 0917 to be a Fashion Brand that company’s commitment to provide 2 consumers desire. million homes with at least 10 Mbps connectivity by 2020. Globe Pad by The Flats The Globe Pad by The Flats is well The company is also committed to located and just 10 minutes from ensure seamless number porting the Globe headquarters, it ensures services in line with the new mobile convenience and ease of travel for number portability initiative of Globe employees. the government (“Mobile Number Portability Act”). Globe along with Served as a “centralized” housing for other mobile operators has chosen Globe employees, it provides: Syniverse, to be the Mobile Number Portability Service Provider (MNPSP). • The primary accommodation for The company will continue to invest regional employees traveling to in enabling smooth implementation Manila for training/meeting at The of number porting services. Globe Tower (TGT) - BGC, WCC, GTP and Makati Valero Offices. • A temporary home for those who live very far from TGT-BGC office and would like to stay close to have more quality time for one’s self.
1https://www.globe.com.ph/about-us/newsroom/corporate/ph-radiology-oncology-society-debunks-cell-tower-misconception.html 2Philippines - Telecommunications Industry Report - Revenue Analysis & Forecasts, 2019-2025 3https://www.ericsson.com/en/press-releases/2019/11/ericsson-mobility-report-5g-subscriptions-to-top-2.6-billion-by-end-of-2025 4https://www.internetworldstats.com/top20.htm 5https://wearesocial.com/blog/2019/01/global-digital-report-2019 6https://globenewswire.com/news-release/2019/04/05/1465857/0/en/Data-Monetization-Market-expected-to-reach-US-708-86-Bn-by-2025-Transparency- Market-Research.html 7https://www.thebci.org/resource/horizon-scan-report-2019.html
109 Globe Telecom 2019 Integrated Report Intellectual Capital
Optimizing Data for an Innovative Tomorrow
“The concept which we’re starting Increase Household Penetration this year is the Habituate and Monetize “one touch service Develop ICT Capabilities creation”. Once the STRATEGIC INTENT customer decides what he wants to do and the customer Customer Privacy and says, “I agree”, it Data Security Public Policy usually gets done, then everything is MATERIAL TOPIC going to be done automatically and orchestrated at the back end with Information and Communications Technology Risk no or very little Cybersecurity and Data Privacy Risk human intervention Digital Transformation Risk thereafter.”
Fraud Risk RISKS ADDRESSED Gil B. Genio Competition Risk Chief Technology and Information Officer (CTIO) and Chief Strategy Regulatory Risk Officer (CSO)
Decent Work and Economic Growth
Industry, Innovation and Infrastructure
Climate Action
Partnerships for the Goals SDGs IN FOCUS
Human Rights Principle 6: the elimination of discrimination in Principle 1: Businesses should support and respect respect of employment and occupation. the protection of internationally proclaimed human rights; and Environment Principle 2: make sure that they are not complicit in Principle 7: Businesses should support a human rights abuses. precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater Labour environmental responsibility; and UNGC PRINCIPLES Principle 3: Businesses should uphold the freedom of Principle 9: encourage the development and diffusion association and the effective recognition of the right of environmentally friendly technologies. to collective bargaining; Principle 4: the elimination of all forms of forced and Anti-Corruption compulsory labour; Principle 10: Businesses should work against Principle 5: the effective abolition of child labour; and corruption in all its forms, including extortion and bribery.
110 Fueling the power of connectedness New app-based interventions and customer Understanding touchpoints enhancing Capacity building for Interlinkages customer experience internal and external and Synergies stakeholders on the Increase in NPS score year principles of resource for Intellectual on year conservation Capital Transactional NPS score Programs conducted on for 2019 was noted at 38.4 instilling values of resource compared to 34.5 in year conservation and resulting 2018 reduction in energy/ resource consumption Retain momentum on developing innovative Initiatives such as touchpoints and apps for encouraging flexible Investments in building customer experience work arrangements and capabilities in current and internal advocacy has emerging technologies enabled employees to make environmental Enhanced service delivery conservation a personal capabilities to attract a agenda. wider customer base
Sustain current level of 94.2 million Prepaid engagement and find customers and to over 2 SOCIAL & Million Postpaid customers innovative platforms to RELATIONSHIP enhance engagement of internal and external Sustain investments levels stakeholders on to enhance customer base environmental stewardship FINANCIAL
NATURAL
INTELLECTUAL
Investments to protect Employee training to customers’ data enhance organization knowledge base in the Compliance to local Data area of data science Privacy regulations
Data scientist program MANUFACTURED Alignment to the Data outcomes Privacy Act of 2012 HUMAN (Republic Act 10173) 39 fresh graduates from various Philippines Continue alignment to Universities accepted into the Data Privacy Act 2012 the program (Republic Act 10173)
Enhance employee training in learning platforms and digital tools
Initiatives Key 2019 2020 Defining Performance Performance Priorities Interlinkages Indicators
111 Globe Telecom 2019 Integrated Report Intellectual Capital
HARNESSING THE VALUE OF DIGITIZATION
Globe has embedded digital innovations in its service delivery and internal operations with the vision of harnessing the complete potential of digitization to enable business success. The company has deployed digital solutions to enhance customer experience, security and trust, while also implementing digital programs to enhance internal operational efficiency and empower its workforce for an agile work environment. Additionally, the company also continues to build its digital portfolio has provided access to tools Globe myBusiness unveils and prowess as its key competitive and knowledge that enables its MSME corner for digital-age Filipino entrepreneurs in advantage. employees to co-create Globe’s Greenbelt 4 digital future. Globe’s platforms (L-R) Wimpy Siongco, SIMPLE, DIGITAL & AGILE such as cloud, low code tools and Retail Operations Head for Southern GMA; Derrick Heng, robotic process automation further myBusiness Sr. Advisor; Cleo Globe’s agile service delivery using enable its employees to participate in Santos, myBusiness Sales current and emerging technologies digitization initiatives. These efforts Head; and Vic San Pedro, Retail Area Head for Southern GMA3 is envisioned to help accelerate have contributed to enhancing digital adoption in the country. The employee experience and operational company’s workforce has been at the efficiency. Some key initiatives forefront of ideating and designing undertaken in 2019 included: unique value propositions for its customers. Globe’s Information BRAD (Basic Request for Admin Systems Group strategy focuses and Delivery) is an application on unleashing the potential of that helps employees book work digitization to support its agile or personal errands. Work-related workforce. It has four (4) key facets: errands are free-of-charge while Ka-Globe empowerment, digital a minimum of 50 is charged for transformation, customer & partner- personal errands. oriented approach and anchoring operational excellence. In ISG’s Vicinity is a mobile application endeavor to win stakeholder trust, that consolidates and unifies transforming infrastructure, process experience on reservation services automation and promoting the of Globe-managed facilities. The adoption of an agile mindset by the initial release includes gate pass Globe workforce forms a critical processing, incident reporting, and component of the group’s success facility search. It then evolved to factor since the beginning. The team include reserving a seat in Globe’s embraced its mission to be problem shuttle service and huddle rooms solvers, innovators and builders who for meetings. are service-focused. Worktools is a web application AGILE WORKFORCE: Ka-Globe that helps employees manage empowerment their tools of work, such as mobile phones and laptops. It keeps track Globe believes in empowering of accountabilities, facilitates the each employee with the limitless request and approval process and possibilities that today’s technological provides input to the budgeting advancements present. The company and planning process.
112 Fueling the power of connectedness Sweepr is an electronic request a market disruptor in terms of for condemnation of assets for innovative technology. Completed Cloud disposal. It supports a paperless working environment and helps The company’s journey since 2016 Mass migration for employees perform admin work showcases increasing focus given to 86 servers as of faster by reducing the need to transitionary development of the old 2019 manually submit documentation. system to a new platform, enhancing the digital quality of a landmark Launched Volunteer App is an automated migration for Globe’s customers Accelerated way for employees to volunteer and partners. ISG has a structured individually or as a team. It has year-on-year strategy to strengthen Cadetship real-time reporting to monitor CSR its partnerships. From the Beyond Enablement events which Globe sponsors and Information Technology Forum and Program (AC2E) in events that employees joined. the Global Innovation Forum to 2019 launching and developing the GoIT CUSTOMER & PARTNER FOCUS program, the company understands modernization and migration to be The company conducted 48 various a continuous cycle rather than a partner immersion programs, random initiative. The benefits of this technology focused sessions, and migration and support of digitization business reviews with partners to efforts of the company can be seen enable them to make steady strides in terms of building better network in their digital journey in 2019. connectivity, advanced infrastructure, To protect its customers, Globe improving the company’s reach developed various technological and margins, delivering fantastic applications to improve innovative customer experience and showcasing integration, maximize operational value creation across the company’s efficiency, and enhance customer value chain. experience. These initiatives and applications address challenges In October 2019, the eCWT faced by society as well as Globe’s (electronic Creditable Withholding customers. It also provides an avenue Tax) application was released to to push forth the boundaries of the pilot users which automated the company’s core business activities, end-to-end handling and processing thus enabling Globe to become of CWTs. This gives customers the
Ernest Cu, Globe President and CEO highlights the importance of digital transformation
113 Globe Telecom 2019 Integrated Report Intellectual Capital
The Information System Group launched the 6th Globe Innovation Forum with the theme: Digital As One: Co-Creating a Digital Globe, headed by Pebbles Sy-Manalang, Chief Information Officer
Case Study Broadband Agile Release Train (BB ART)
Globe has developed 141 internal pushed for the improvement of back- Business work together in order Application Program Interface (API) end operations and the delivery of a for the BB ART Teams to deliver with a total of 476 APIs to-date. The real do-it-yourself (DIY) experience. features that are of value to Globe company has 65 Agile teams across The benefits of this initiative can be at Home. 10 domains and has completed 3 seen in the release of approximately •• One of the promising features program increments in Broadband’s 211 features in the last 13 months delivered is enabling the Globe Agile Release Train (BB Art). The and the support of at least four at Home Mobile App to be BB ART initiative was a pilot for (4) priority Broadband initiatives, Consumer Mobile Service-ready the scaling of agile teams prior to specifically: for campaigns configured without SDA and is currently implemented having to alter the code. using the Scaled Agile Framework •• The Streamwatch Xtream Prepaid •• The gamification of the app was (SAFe®). The purpose was to have Box released in time for 917 Grateful multiple agile teams co-located in •• DIY Postpaid Wireless @ High For You Celebration. one (1) area to deliver value for each Speed •• The Process Automations and Program Increment (PI) and foster •• An increase in customer Serviceability Tool enhancements collaboration for teams with minimal engagement through multiple have also helped Broadband dependencies. Each PI spans across 3 campaigns and gamification Businesses ensure that Globe’s months or 12 weeks and consists of 6 •• The enablement of Data Analytics customers are assisted with their iterations or sprints, which is a 2-week prior and post sales transactions. period. At the end of each iteration, Benefits and Impact: In summary, the collaboration the deliverables of all the teams are between business and tech teams showcased to stakeholders to get •• The PI planning events have has been evident from the time feedback and in turn, released to become key to the Train’s that BB ART teams garnered production once ready. success as this is where all the support to deliver value for representatives from Information Broadband customers. BB ART as an initiative underscores a Systems Group, Product better way of developing software. It Management, and Broadband
114 Fueling the power of connectedness opportunity to access the creation applications. The adoption of Zoom and submission of the CWT as part led to easier telepresence and team of their bill payment. The benefits of collaboration. which include accessibility from the comfort of their workplace or through PARTNERING WITH DIGITAL an assigned terminal in Globe stores. STALWARTS The company presented this to the Bureau of Internal Revenue where To keep pace with the digital Globe influenced the passing of the transition, it is imperative to Revenue Memorandum Circular 121- effectively adapt to disruptive shifts 2019, allowing the use of certain BIR in technology and volatile business form/certificate in electronic format. environments. This should occur in tandem with honing workforce ANCHORING OPERATIONAL skillsets and devising innovative EXCELLENCE business models. To achieve this, the company partnered with leaders in In line with operational efficiency, the market like Amazon Web Services the SAP Ariba Invoice Management (AWS), Amdocs and Outsystems to was implemented to complete the co-create capabilities. Additionally, automation of the purchase-to-pay the company had to effectively process at Globe. This eliminated execute large transformation the back office encoding of invoices initiatives such as the consolidation of for PO-based transactions. Vendors Globe’s managed service partners for can now upload their own invoices application support, adoption of open in the SAP Ariba Network and source and driving business value workflow approval has thereby optimization initiatives to maintain its been automated. In 2019, Globe market leadership position. To enable also undertook a major upgrade of such transformative capabilities, the company’s Enterprise Resource Globe has embarked on a journey Planning (ERP). The SAP S/4 of evolving into an integrated IT HANA migration allowed Globe to organization. simplify its transaction processing and reporting, as well as provide To allow for agile innovation mobile access for the users, through across the enterprise, a review the use of SAP Fiori. MemoApp is of the existing architecture was another application that was released in 2018 and fully utilized in 2019. The automation for our enterprise applications replaced manual approval processes and paper-based internal communications by 89%, saving around 10,000 reams of paper(equivalent to saving 480 trees) in 2019.
Various applications and programs aimed at enhancing ease and Globe, in efficiency of working were also partnership with implemented such as Google Data Yondu, launched its first-ever cloud Studio which improved internal cadetship program Globe reports allowing real-time called Accelerated Cloud Cadetship output, providing easy to share and and Enablement more informative data visualizations, (AC2E). The goal of this premier building for better decision making. program is to train Google MDM enabled efficient fresh graduates to be highly-skilled management of mobile devices and cloud practitioners.
115 Globe Telecom 2019 Integrated Report Intellectual Capital
conducted to initiate a shift from Technology (ICT) arm of Globe is a CSP (Communications Services able to provide the right technology, Provider) to a DSP (Digital Service infrastructure, and know-how to Provider). With the establishment of businesses from a wide range of a proactive partnership alongside a industries. Globe Business aims to Globe also holds Silver deeper understanding of businesses, achieve operational excellence on Corporate Membership of Globe can now ensure the the connectivity platform and build the International Association deployment of new technologies, a robust portfolio of ICT solutions to of Privacy Professionals simplify the processes and solutions become the trusted business advisor (IAPP). The company’s Data that the company offers and for its customers. Through its value manages. To ensure a correct synergy proposition, Globe Business has been Protection Officer (DPO) between the business and developing able to revolutionize the Philippines’ participated in the IAPP Asia IT, enablement programs such as the BPO industry. The penetration of Privacy Forum at Singapore in Globe Innovation Forum articulates digital in the BPO industry has July 2019 and the IAPP Europe the possibilities of new/upcoming enabled these enterprises to reap Data Protection Congress at initiatives, solutions, and capabilities. the benefits of work efficiencies and Brussels, November 2019. employee productivity. Globe’s vision is to become an ally of businesses as strategic enabler of new PROTECTING GLOBE’S CUSTOMERS revenue growth through innovation and customer-facing services. It Considering the changing customer would also help deliver scalable and regulatory landscape, Globe and reliable platforms as well as continuously strives to innovate and increase agility while lowering costs. adapt to change. With data as one Technical expertise is important to of its most important assets, the Globe in order to achieve its ambition company holds top priority towards of being a digital enabler. Over the safeguarding its reputation to ensure years, the company has established data integrity and confidentiality. a Cloud Enablement Program to Once a customer chooses Globe as build Globe’s cloud competencies by his/her service provider, the company training its critical internal technical strives to ensure transparency, service teams as well as its enterprise sales quality and a commitment that the and pre-sales teams. This supports customer will be taken care of. Globe the workforce to offer effective showcases its strong commitment cloud services to Globe’s enterprise towards ensuring customer data customers. The company created privacy with its alignment to the Data the Accelerated Cloud Cadetship Privacy Act of 2012 (Republic Act Enablement (AC2E) Program in 2019 10173). which aims to produce 25 highly skilled cloud practitioners out of new CUSTOMER PRIVACY & graduates. These cadets will then DATA SECURITY be deployed to Globe and various companies in the Ayala Group. The demand for stricter security measures to protect personal and GLOBE BUSINESS business information is constantly increasing given the continuous The company played a pivotal role developments in the digital in the digital transformation of landscape. Consistent availability of various industries in the country. secure IT measures as well as strong Globe Business enables various resilience to cyber threats and attacks enterprises to realize the potential of form foundational cornerstones of digital to drive business success. By Globe’s business activities. As a result, strategically combining its knowledge the company constantly improves of the Philippine market with the its processes and security services latest innovations, the corporate provided to its customers. Globe runs Information and Communications an Advanced Security Operations
116 Fueling the power of connectedness Center under its Information Security and Data Privacy Group with the capability to identify and address data security risks. The nature and use of compiled customer data are clearly outlined in Globe’s Privacy Policy. The company monitors customer opt-in and opt-out through its processes Globe myBusiness governing consent management held a data system. Government or law privacy awareness workshop for SMEs enforcement requests for customer in the finance data are documented by the sector, specifically cooperatives, to company’s Corporate Legal Services help them improve Group (CLSG). Upon validation by their data security. CLSG, the requested information is approved for release. Hence, each • It was recommended that those Globe customer is assured that their affected change their passwords data is in safe hands. and other means of identity verification. To demonstrate Globe’s commitment • Those affected were cautioned to protect customer privacy and against possible phishing attempts uphold privacy rights, the company and other online risks. represents the telecommunication sector as a member of the National Privacy initiatives for customers Privacy Commission’s (NPC) Data A Privacy Awareness Week for Globe Privacy Council. Globe’s Data employees and customers was Protection Officer (DPO) has conducted in May 2019. To uphold secured the NPC DPO ACE Level the importance of data privacy, the 1 Certification as well as the IAPP following activities were initiated: Certified Information Privacy Manager (CIPM) Certification. • Privacy Policy has been updated Additionally in 2019, Globe has not with the Inclusion of Customer been imposed with any legal or Portrait and Telco Score, which can regulatory fines for violation of data be accessed at https://www.globe. privacy. com.ph/privacy-policy.html. • FAQs were updated under the In accordance with the notification Privacy Policy which can be requirements set out in the Data accessed at https://www.globe. Privacy Act, on 27 January 2019, com.ph/help/globe-privacy-policy. Globe formally notified the NPC html. of a personal data breach, through • Executed Data Sharing its Data Protection Officer (DPO). Agreements with vendors and Based on the report, the personal partners and installed Privacy and data breach occurred due to a system CCTV Notices in Globe Stores as error, potentially affecting 8,851 required by the Data Privacy Act of customers. Following a standard 2012. procedure, the team proceeded with the evaluation of the incident and Project SOCO (Securing Our the verification of the information Customers Online) is an internal submitted. The following mitigation initiative of Globe that aims to make measures were implemented: its customers aware of cyber threats and provide mitigation measures • Those affected were advised to to ensure their online safety. This monitor their online and offline project is an ongoing process. The accounts for any unusual activities. company has also provided samples
117 Globe Telecom 2019 Integrated Report Intellectual Capital
of awareness materials released government agencies and online through social media channels. stores to stop the illegal sale of its This can be accessed at: https:// products. Globe consistently monitors www.facebook.com/notes/globe- its network to safeguard itself against telecom/beware-of-phishing-and- the potential sale of hacked devices, The success of the vishing/10162608367260008/. illegal streaming devices (ISDs) and company’s anti-spam disables fraudulent connections solution earned Globe the Privacy Initiatives for Employees immediately without notice. Globe prioritizes the provision of PEX Award for “Best Project privacy awareness initiatives for The company has also intensified Contributing to Customer its employees. For 2019, Globe its nationwide efforts to restrict Excellence” given by the conducted the following initiatives: illegal International Simple Resale (ISR) activities. ISR operators often Process Excellence Network Data Privacy Acknowledgment Form lease dedicated lines to make direct (PEX), online news source and In order to ensure that its employees calls abroad and use the facilities global community of process are aware of Globe’s Data Privacy to sell international call minutes to Act 2012, Globe has asked their consumers at a much lower price. This professionals, business leaders, employees to complete a form to rampant practice robs the network and executives who want acknowledge their compliance with of revenues that would have been to improve their businesses the Data Privacy Act. used to subsidize capital-extensive local exchange networks so landline through process and operational Data Privacy and Information users can enjoy competitive monthly excellence. Security E-Course charges. For over a decade, Globe has To promote awareness and education been working with local government for its employees, Globe mandated units and agencies in the battle the completion of an e-course on against ISR syndicates. Data Privacy. A LED TV was raffled off among those who completed the The company has also enforced e-course as an incentive. tighter rules to protect customers against dishonest practices of third- Ongoing Privacy Trainings party value-added service (VAS) Members of Globe’s Information providers that result in prepaid load Security and Data Privacy (ISDP) deduction. This gives customers the Group are encouraged to undergo perception of “nakaw” (stolen) load. privacy training, including CIPM and CIPP/E certifications and training. Globe also runs an anti-scamming campaign that involves blocking Privacy Maturity Assessment and prepaid numbers found to be Privacy Impact Assessment consistent sources of spam and Globe has also undertaken scam text messages. It uses a Project Gray, a Globe Privacy comprehensive and fully automated Maturity Assessment by SGV (an mechanism that filters out unwanted affiliate of Ernst & Young). This initiative assessed the company’s privacy maturity level and helped in conducting privacy impact assessments for business units with Globe Telecom joins hands high-risk processing activities. with the National Privacy Commission (NPC) Countering Illegal Activities in celebrating the Along with data privacy and Privacy Awareness Week (PAW) aimed protection, Globe has intensified its at advancing campaign against illegal activities to the protection of personal protect its customers. The company information of also works in close coordination with consumers while ensuring the free flow of information.
118 Fueling the power of connectedness and unsolicited SMS messages. Some Globe Business partnered with Globe blocked a total of 2,471 of these numbers were subject of world-class providers such as domains or sites that hosted lewd complaints reported through www. Amazon Web Services, Google, content and child pornography as globe.com.ph/stopspam where RightCloud, GoCanvas, Trustwave, part of this campaign. customers can provide all the details and Bitsight to unveil these cloud of spam and scam messages received and cybersecurity innovations at • Through its #makeITsafePH in their mobile devices. Phone the “Breakthrough with Globe campaign, the company provides numbers which are verified to be a Business Solutions” in January practical tips and accessible constant source of spam messages 2019. information about the various are disconnected from service. • As the Philippines’ leading threats an individual or an advocate against online piracy organization may face. Globe SPAMS AND SCAMS through #PlayItRight, Globe, along ensures that its clients are aware OUTCOMES OF GLOBE INITIATIVES with international Coalition Against of their responsibilities to protect IN 2019 Piracy (CAP), expressed positive themselves and their organization. support for the proposed bill • 35% reduction in spam call ordering the blocking of websites The company’s commitment to complaints received that illegally distribute copyrighted cybersecurity is evident in every • 4,941 SIMs found to be the material like videos, music and partnership and service it provides. sources of SPAM/SCAM messages gaming. The proposed Senate For instance, GCash gives customer deactivated Bill No. 2109 (also known as the safety the utmost priority. In order to • Over 55 million spam SMS Philippine Online Infringement avoid the possibility of cybersecurity messages blocked Act) aims to give more power to linked risks materializing, Globe the Intellectual Property Office has a dedicated analytics team in INCREASING CYBERSECURITY to address illegal websites that order to constantly monitor these infringe on copyright. fraudulent activities and protect user Today’s highly accessible and transactions. Additionally, proper affordable data and content packages Ernest Cu, Globe President and CEO, compensation is also given to users has made it easier and more says the legislation will put a stop affected by these unauthorized convenient to download content. on the growing online piracy in the transactions. This raises the vulnerability of users country. Cu is concurrently serving as to unsafe and illegal content, and to a Board Member of the international 2020 OUTLOOK potential risks to their data privacy. group Asia Video Industry Association It also deprives the sources of (AVIA), which is a major player While Globe enables enhanced original content protection for their dedicated to connecting the video digital experience to its customers, intellectual property or licensing industry with the government in the the company remains committed rights. To stem the tide of illegal and fight against video piracy. AVIA is to adhering to its core values of unsafe content online, Globe set up also a credible source in providing securing the customer’s trust through the following initiatives: information, intelligence reports on a focused approach to data privacy latest developments and trends that and security. Globe strives to embrace • In light of an increasingly hostile print, broadcast and online media a beyond compliance approach to digital environment, the Globe can use. The group also champions the Data Privacy Act, 2012 in every Advanced Security Operations the creation of a more sustainable operational endeavor. Center (ASOC), which opened in business environment for the video 2017, houses the infrastructure industry. and teams that deliver customer service, platform management, Moreover, the company’s #PlayItRight threat detection, threat hunting advocacy campaign advocates for the and incident response for both protection of its customers against Globe and its customers. malware and other cybersecurity • Through its ICT arm, Globe threats from illegal pirated content Business, the company offers a or torrenting sites. In addition, full suite of powerful tools and Globe combats child pornography solutions to enable enterprises to by blocking websites and related build and secure their business and content, in accordance with the digital ecosystems for seamless Republic Act 9775 or the Anti-Child connections with customers. Pornography Act of 2009. In 2019,
119 Globe Telecom 2019 Integrated Report Human Capital
Cultivating a Vibrant Purpose-Driven Workforce
“One of the key factors that will sustain the Agile Workforce company’s strength in the market is the STRATEGIC INTENT highly engaged and committed workforce that we have at Globe. Beyond the Employee Welfare infrastructure and beyond the products MATERIAL TOPIC and services, the people behind these successes are highly Political and Socio Economic Risk engaged people.”
Talent and Succession Risk Renato Jiao Company Culture Risk Chief Human Resources Officer (CHRO) Reputation Risk
RISKS ADDRESSED Third Party Risk
Business Disruption Risk
Good Health and Well-being
Quality Education
Gender Equality
Decent Work and Economic Growth
Industry, Innovation and Infrastructure
Reduced Inequalities SDGs IN FOCUS Partnerships for the Goals
Human Rights Principle 6: the elimination of discrimination in respect Principle 1: Businesses should support and respect of employment and occupation. the protection of internationally proclaimed human rights; and Environment Principle 2: make sure that they are not complicit in Principle 7: Businesses should support a precautionary human rights abuses. approach to environmental challenges; Principle 8: undertake initiatives to promote greater Labour environmental responsibility; and UNGC PRINCIPLES Principle 3: Businesses should uphold the freedom of Principle 9: encourage the development and diffusion association and the effective recognition of the right of environmentally friendly technologies. to collective bargaining; Principle 4: the elimination of all forms of forced and Anti-Corruption compulsory labour; Principle 10: Businesses should work against corruption Principle 5: the effective abolition of child labour; and in all its forms, including extortion and bribery.
120 Fueling the power of connectedness Employee engagement in environmental conservation Understanding Interlinkages and Employee led environmental conservation programs and Synergies for participation Human Capital Over 300 participants from Globe stores and partner communities participated in Boracay Sustainability Employee’s role in Week’s Beach Clean-Up Drive customer engagement Retain momentum Employee engagement in and increase employee social causes engagement in Investments made Number of employees environmental conservation in human capital volunteering in social development causes Amount invested in 3,192 employees employee training and volunteered in programs development targeting social causes 65M invested in employee Sustain participation and NATURAL training and development encourage more employees to volunteer Enhance return of training investment
FINANCIAL SOCIAL & RELATIONSHIP
Office spaces, employee housing and employee HUMAN safety linked infrastructural development Enriching employee skills Investments made in improving office space Training hours average providing employee housing per headcount provision 39 training hours average MANUFACTURED Investments made in safety per headcount linked infrastructure INTELLECTUAL Support continuous 86% utilization of employee employee training and housing provision Globe pad development by the flats noted Further improve infrastructural facilities offered to employees
Initiatives Key 2019 2020 Defining Performance Performance Priorities Interlinkages Indicators
121 Globe Telecom 2019 Integrated Report Human Capital
PURPOSE-DRIVEN WORKFORCE The Purpose Survey
Globe fosters a work environment Globe conducts a purpose survey that thrives on collaboration, to gain insights into the extent of empowerment, diversity, innovative alignment of the workforce with Globe received the highest ideation and agile work delivery. This organizational values and purpose. honors at the Asia Corporate organizational culture is a product The company strongly believes that Excellence & Sustainability of Globe’s workforce composition the alignment of its employee’s (ACES) Awards 2019, for its which is diverse in nature and is personal goals and vision with awards in “Top Workplaces in comprised of high performers who go Globe’s purpose is imperative for the extra mile to ensure the delivery organizational success. 2019 marked Asia” and “Industry Champion” of superior customer experience. the third year of conducting this Categories. Globe has developed digital platforms purpose survey. The survey results and various programs to enable showcase the integration and employee development. While cohesion present within Globe’s allowing employees to develop new workforce and evidences how each skill sets, Globe also creates avenues employee resonates Globe’s values. to hone employees’ innate talents and The Globe workforce has a sense of Sustainable Engagement creative energies. shared belonging and goals which Index Score in 2018: translate to collective efforts towards 91% (net of retention score) Each employee at Globe is valued organizational goals and reaching for and the company strives to actively customer delight. understand their needs, aspirations Organizational Health Index and professional vision. Further, Human Resource Asia Awards Score in 2019: 88% the growth and development of each employee is a mission that HR Asia Awards rolled out a unique the company shares with them. 360-degree employee engagement The Purpose By creating a workplace that is survey which measured CORE Survey Indicators collaborative and inclusive in nature, (Collective Organization for Real Engagement), Self-Engagement, and Globe ensures that each employee •• Role and Work contribution to Globe feels empowered and motivated at Group Engagement where Globe was Purpose: 91 in 2019 vs. 87 in 2018 rated above industry average across work. Strengthened over the years, •• Personal Purpose contribution to the HR strategy of Globe focuses on all categories. The company scored Globe Purpose: 88 in 2019 vs. 87 in maintaining the fabric of collective the highest in the following areas: 2018 Employee Engagement, Purpose, and aim and aspiration that employees •• Employer NPS that is likeness to envision for the company. Globe is Company Culture. recommend Globe as an Employer: committed to enhancing diversity 53.40 in 2019 vs. 43.38 in 2018 in its workforce as these values are HUMAN RIGHTS COMMITMENT embedded in the company’s culture (UNGC) and thus has zero tolerance to discrimination of any kind. With prime In 2019, Globe became a signatory to focus given to skill sets, the company the United Nations Global Compact ensures equal opportunities for all. (UNGC), committing to implement universal sustainability principles. Asia Corporate Excellence & In line with this commitment, the Sustainability (ACES) Awards 2019 company strives to uphold the highest standards of human rights in Globe earned the distinction of being all its operational endeavors. Aligned the only company in the history to these values, Globe has a zero of ACES Awards to win the top tolerance policy towards child labour, workplace in Asia three (3) times - a forced labor and discrimination of true statement to Globe’s remarkable any kind. The company ensures that journey of cultivating a unique culture no employee is discriminated against with a responsible workforce, using on the basis of age, gender, marital technology and human-centered status, personal beliefs, religion & design in the workplace. spiritual practices, political affiliation
122 Fueling the power of connectedness and sexual orientation, among other performance, reputation and security Human Resource Team, headed by Renato Jiao, Chief Human Resource personal attributes. of the company as well as offences Officer (4th from the right), receives against security, safety, health the award for Globe as one of the Best Companies to Work for in Asia Code of Conduct and environment. The code also at the HR Asia Awards 2019 includes administrative roles that are Globe’s Code of Conduct (CoC) established to ensure implementation reveals a clear and unified theme of respective procedures, thus of Philosophy, Purpose and safeguarding compliance to Globe’s Provision. The company’s Code of Code of Conduct. Conduct enshrines the values on the protection of human rights. Collective Bargaining Agreement The same is also available on the website https://www.globe.com. The congruence of Globe’s aspiration ph/. The company assures adherence with employee values is enabled by to principles to which employees the company through programs that observe the highest standards of inculcate Globe’s ethics on human accountability, performance, honesty, right protection in the minds of each integrity, courtesy and teamwork. employee. This results in employees The CoC also provides a platform being aware of their rights and for a reasonable and lawful process, channels to exercise the same. Nearly to ensure the resolution of issues 3.7% of Globe’s workforce is covered and problems arising from an by collective bargaining agreements. employee’s performance or behavior and subsequent compliance to the Collective Bargaining 2017 2018 2019 company’s policies. The code includes Agreement improper activities involving honesty Percentage of total permanent and integrity, good behavior and 3.60% 4.3% 3.72% conduct, Globe’s customers, job employees covered
123 Globe Telecom 2019 Integrated Report Human Capital
In 2020, Globe will launch WORKDAY, a cloud-based human capital management software. WORKDAY will empower Globe employees and leaders through self-service features and accessible data, with the following features:
•• Work ON-THE-GO, through any mobile phone •• ACCESS a search bar for easy access to transactions and data •• VIEW Inbox where pending requests may be viewed •• TRACK learning and development •• SEE employee profiles and organization chart
DIGITAL WORKPLACE • Globe University’s (GU) Class Management Information System Digitizing HR Management enables automated attendance monitoring. The attendance Globe has digitized its HR monitoring tool is hosted on an management system to transform application called the RollCall app its HR processes. In 2019, HR forms which allows the generation of are 100% online and digital. HR digital food tickets and logging in processes have been streamlined and and out of class. the following digital applications have been implemented: • MyChoice Flexible Benefit Program allows employees to • EVA enables Globe employees choose the benefits they want. to file and view their work leaves, Through an in-house system, they salary as well as update personal can trade non-core benefits (car, and work information on their vacation leave, paid time-off), mobile phones. The mobile convert these into points, and use app acts as a Human Resource the points to buy benefits they Information System (HRIS) on the prefer, like additional coverage go. This intervention was launched for dependents, expanded in late September 2018 with 94% outpatient limit, rice allowance, (7,303 of 7,751) of employees have clothing subsidy and more. What downloaded the app. On average, was innovative was that for the there are 3,420 unique EVA users first time, the MyChoice program who access or transact on the app was housed inside EVA ensuring about 61 times per month. smoother transition for the 5,000+ employees who availed of it. • SAP Concur was launched to proactively manage employees’ Flexible Work Arrangement (FWA) travel and expense spending Program through an integrated travel and expense ecosystem. It helps in The Flexible Work Arrangement the reduction of disbursement program allows eligible employees processing time by having to perform work outside of approvals for travel, cash advance their regular work site and work requests, and expense liquidation schedule, enabled by technology all done using the tool. Through and digitization of work linked this initiative, Globe won the 2020 activities. This program was officially Concur Innovation Award, the first launched in May 2019. Eligibility company in Southeast Asia to ever to the program was assessed by get the award. Division Heads and concurred by Group Heads based on the following criteria: communications and
124 Fueling the power of connectedness system access requirement, office Marketing, Professional Development, hardware/devices, team dynamics Leadership and Culture. Partnerships as well as collaboration and overall with the different training groups performance. as well as individual advocates of learning are nurtured through Awards for Quest: Those who may need to stay overtime Learning Circles. (due to cutovers, traffic, or sudden Bronze Stevie International inclement weather) may choose to With the need to develop key talent Awards (October 2019) for do so at the Globe Pad. The HR team, imperatives for the organization, Mobile Integrated Experience recognizing the changing needs of Globe University is a visionary the employees, bought one whole step in the direction to drive a step floor at The Flats Tower in Bonifacio change in workforce capabilities and Global City, Taguig and repurposed it performance. into a dormitory exclusively for Globe employees. The dormitory, called the Globe’s learning and development Globe Pad, is a temporary respite for strategy is a blend of traditional Ka-Globe who want a place to stay learning platforms and digital overnight or a place closer to the tools to maximize employees’ office. The Globe Pad is also where holistic development. This blended employees flying in from the regional methodology enables employees offices get to stay for free. with both technical and leadership skills. Some key learning interventions TALENT DEVELOPMENT AND rolled out in 2019 include.1 FUTURE OF WORK • Data Scientists Program Enabling Employee Growth This program provides training on & Success through the Globe Big Data Analytics, SQL, Business University Analysis and Programming. 39 In today’s knowledge-based economy, fresh graduates from various human capital development as a Philippine universities were valuable organizational resource has accepted into the Data Science become central to business strategy. Program With the rising trend towards teamwork and empowerment to • Artificial Intelligence Course hurdle the pace of technological This eCourse covers a basic advancement, organizational learning background on Artificial and the agility to learn faster than Intelligence (AI) and Machine competition is seen as the route to Learning, and how they are related competitive advantage and market and enabled by Big Data and Data leadership. Science.
Globe University is identified as • AGILE E- Course the solution to manage Globe’s The Agile 101 E-Course aims to learning requirements, enabling reach a wider employee audience the next Globe and offer innovative to help equip them with the Agile learning solutions beyond Globe. mindset including its values, Through an emphasis on creating principles and frameworks. and facilitating a corporate learning culture and developing the capability • QUEST of employees, it seeks to amplify Quest is a gamified learning organizational know-how to deliver app where learner’s go through the industry’s best-trained workforce different competency maps as a source of competitive advantage. aligned with their role competency proficiency level. Learning is Globe University is home to five self-paced through interesting (5) academies: Technical, Sales & bite-sized contents, presented in different formats.
125 Globe Telecom 2019 Integrated Report Human Capital
• ImmersiV Employee Training and Education Performance Barometer Globe also ventured into training innovation by introducing Training Education 2017 2018 2019 ImmersiV – a Virtual Reality Total Training Hours 135,976 193,203 227,416 (VR) training that simulates the Stores’ day-to-day operations to Average Training Hour per headcount 24.66 25.04 39.94 immerse Store front liners into Total Investment (in M) 62.2 65 65 multiple customer interactions and experiences. ImmersiV was piloted in several Stores and has been incorporated in Stores’ Onboarding Academy Training Hours program for new hires. With this kind of innovation, attrition of Technology and Innovation 93,052 store personnel which impacts Sales and Marketing 17,356 manning and operations would be minimized. VR training modules for Leadership 37,208 Stores also aim to prepare them Professional Development 76,712 for their day-to-day responsibilities, reduce their anxiety and make them feel confident in engaging with Globe customers. EMPLOYEE ENGAGEMENT
Engaging with a vibrant workforce • Coach2Grow (C2G) app Globe strives to ensure every With a collaboration-centric employee’s well-being, work Award for C2G: approach in mind, Globe developed satisfaction and professional success a culture of coaching over the from the day they are onboarded. A years. This culture encourages Gold Stevie Asia Pacific (2018) buddy program has been designed collective learning and learning of for Innovation in Education or to make sure employees feel employees from their managers comfortable on their first day at Training and leaders through work-with, work. This helps employees relate consultations, assignments and to the open and inclusive work coaching sessions. To further culture and settle into the work strengthen the effectiveness of on environment starting from day one the job learning, Globe rolled out a in the company. Globe encourages C2G app. C2G is a web and mobile open communications as part of the application that aids leaders overall collaborative organizational during coaching sessions and helps culture. The company embraced an document the way forward, thus open office concept when it moved enabling both the employee and its new headquarters at The Globe the coach to track progress on Tower six (6) years ago. Work tools learning goals. and e-mails are also hosted on cloud to enable digital collaboration. The • Leaders’ Summit annual appraisal process is another Every year, Globe gathers over vital communication channel for 100 of its leadership team from employees and their managers. In various groups for an immersive 2019, Globe shifted to a No-Bell- conference with practical Curve Performance Evaluation for applications. all its employees. This is an example of how the company focuses on the • Everyday Leadership growth of its employees and devises Globe revised the Everyday strategies to hone their talents. Leadership training to include new content that would help provide employees skills on Goal Alignment & Clarity, Trust Building, Empowerment and Safety.
126 Fueling the power of connectedness Case Study Enabling Employee Learning and Development
Given the ever dynamic market, it is essential to create a future ready human resource strategy that ensures success, longevity and relevance of the company. The Channel Governance and People Excellence (CGPE) team under the Channel Management Group at Globe strategized to enable a future-ready organizational proposition, thus ensuring continuous value creation through employee development. This strategy is based on four (4) strategic pillars:
1. Create the Right Mix
At Globe, employees define the Globe Employee of the Year Trinette Manahan from Small and Medium company’s competitive advantage Business Group and joining her are Jaime Augusto Zobel de Ayala, with a distinct work ethic and work Globe Chairman and Ernest Cu, Globe President and CEO culture driving a unique practice of innovation and collaboration to across different generations in is powered by Quest. The classroom service delivery. The product of the the organization. In 2019, Globe sessions are strategically limited to workforce’s passion and dedication completed a baseline assessment to half day sessions and widely spread culminates into business success. identify Digital Natives from Digital over 3-months to combat information Globe attracts some of the brightest Immigrants. Digital Natives or those overload. Another program developed minds and is dedicated to ensuring aged 30 years and below who grew was Skip Level Coaching. It aims they grow through shared learning up using technology will be paired to fast track people development and collaboration. with Digital Immigrants to accelerate and create a wider talent pool of learning on topics like technology, successors. In this development 2. Disruptive Learning social media and current trends. program, an identified high potential This program will also strengthen embarks on a 6-month coaching Globe has invested in digital learning the leadership skills of younger journey with an assigned Coach and development platforms ensuring employees. (second level superior), anchored on that employee learning is not Globe’s 7 Leadership Competencies. confined to traditional means. 4. Build Future Leaders & Partners As partners are an integral component of Globe’s way of doing 3. Reverse Mentoring Channel Management is a driving things, the company is dedicated to force in the organization contributing developing its own people through With the advent of digital learning to at least 80% of Globe’s total coaching and innovative ways of platforms, gamification, social revenues. The need to develop next learning. networks and new technology, generation leaders is of utmost Globe is committed to ensure that importance to remain agile. Channel In 2019, Globe has launched the its employees are digital savvy. The Governance and People Excellence following partner programs: reverse mentoring program aims to (CGPE) has initiated the Leadership spur innovation, and creating new Camp, a foundational leadership •• Boot Camp for Territory Partner product and service ideas by actively program which aims to equip people Operations Managers soliciting inputs and participation and managers with essential skills •• Premium Dealer Retail and from younger employees, introducing and competencies to effectively lead Assistant Retail Managers digital ways of learning and oneself, teams and others. It applies •• Learning Camp for TP Business closing digital knowledge gaps a blended learning approach which Development Officers
127 Globe Telecom 2019 Integrated Report Human Capital
Singtel volunteer Ronnie Shani repaints the wall of one of the classrooms of the Asian Development Bank Spouses Association (ADBSA) Aeta Elementary School during the first day of the Globe - Singtel OVP, titled Better Together 2019.
SINGTEL VOLUNTEERS JOIN GLOBE’S SUSTAINABILITY EFFORTS IN IBA, ZAMBALES
Volunteerism knows no boundaries, Iba. Situated on the Bancal River, it journey where they can help with geographical or otherwise; global is a 164-hectare farm with an ylang- environmental sustainability citizens are better together and ylang plantation that yields oil and while getting to know indigenous should care for the planet as organic crops to be marketed locally communities. By investing in one. With this in mind, employee and internationally . The farm also has environmental protection and volunteers from Singtel of Singapore a modern five-bedroom lodge with partnering with various organizations visited the Philippines once again a kitchen that serves fresh farm-to- particularly on reforestation to take part in the Singtel Group’s table food to its guests, featuring programs, we hope to do our share 8th Overseas Volunteering Program cuisine that combines Filipino and in mitigating the drastic effects of (OVP) hosted by Globe. international vegetarian dishes. climate change,” said Maria Yolanda Crisanto, Globe Chief Sustainability The group of six (6) Singtel and Globe and The Mead Foundation, Officer and Senior Vice President for 13 Globe volunteers went to the which is a non-profit organization Corporate Communications. Iba Botanicals eco-village in Iba, share a common goal with regard to Zambales to plant indigenous trees “rainforestation.” The foundation has Ben Mead, Executive Director of The such as Acacia, Kakawati, Langka, and been working closely with the Aetas Mead Foundation, affirms that the Kasuy in areas that have been widely of Zambales to help replant trees in “partnership is aligned with our goal deforested. the province’s bare forest areas and for impactful, sustainable efforts that provide livelihood opportunities to provide transformational change, Iba Botanicals is the operational the community members. conservation of the environment, partner of The Mead Foundation and and sustainable development. The provides crucial project management “We are happy to partner with Mead Foundation is very happy and operational oversight activities The Mead Foundation and the to be partnering with Globe for for all reforestation and environment- opportunity for Globe and Singtel this “rainforestation” effort of our related projects happening in and for volunteers to be part of this denuded forests. We are also very
128 Fueling the power of connectedness excited to show the volunteers disadvantaged. Activities ranged around Zambales and are enthused to from building homes, painting and see how their efforts will greatly help repairing schools under Brigada the community.” Eskwela, cleaning up coastal areas, teaching sports to children and Aside from tree-planting, the promoting digital citizenship, among volunteers conducted a Brigada others. Eskwela activity at the ADBSA Aeta School (Jesmag Iba) located in Globe has also been spearheading Tambac, Palanginan, Iba, Zambales. the introduction and expansion of volunteering in its various forms, The volunteers also learned how such as livelihood, education, and creativity can always flourish by environmental protection throughout receiving hands-on experience—from many regions of the country. Its weaving bamboo bags and baskets own employees frequently join to lahar pottery-making—two of the volunteerism activities as part of their most popular sources of livelihood own corporate social responsibility among Aetas that help sustain their (CSR) program, investing their time families and the entire community. and effort in sustainable ventures that can improve the state of “This program made me realize locations where they volunteer while that this country can be a better enriching their appreciation of their place for the tourists and the own history and culture. community,” Charles Diomampo, a Globe volunteer said, while Singtel volunteer Ronnie Bin Shani quipped, “It’s an eye-opening experience and heartwarming to be part of this program, knowing that our efforts can have a long-lasting impact on the community.”
Globe and Singtel Group are also unified in a common vision to empower communities, especially the marginalized ones, by creating Globe and Singtel platforms that will fulfill their volunteers team up to potential, ensure their security, and plant different species of indigenous trees at integrate them with society. the Vetiver terraces in Iba, Zambales. The Better Together OVP is a platform designed to cultivate an active exchange of knowledge and shared experiences to help strengthen ties among the international volunteers who join the program every year and provide Globe and Singtel them insights into each participating volunteers learned country’s culture, economy, and how to make usable tradition. stone sculptures from lahar rocks, as well as plates and baskets Since 2011, Globe has been by weaving Nito vines. These products bringing in volunteers from Singtel are a key source of and other Group affiliates to livelihood for the support local communities in the people of Jessmag Aeta community. Philippines, especially those that are
129 Globe Telecom 2019 Integrated Report Human Capital
Focusing on Employees’ Well-being campaign that promised to help Globe is dedicated to ensuring its Ka-Globe #CreateTheirBestLife while employees’ holistic development being part of the company. covering all spheres of well-being: social, emotional, financial and While employees work relentlessly 40% of Ka-Globe physical. Maintaining good health towards achieving organizational volunteered in 2019 for is vital for enabling employees to goals, Globe provides various various social development feel motivated and inspired at work. avenues for employees to unwind Periodic health check-ups have been through numerous interest clubs. causes. On top of this, Globe made mandatory for every Globe The company has established over contributed 1.4 million volunteer employee to ensure any underlying 20 interest clubs which cater to hours to the 185th Ayala ailments are diagnosed timely and employees who are passionate about Anniversary celebration. effectively addressed. While the various domains such as indoor health check-ups help monitor and outdoor sports, music, arts and employee health, Globe encourages photography. This helps enhance the employees to adopt a proactive collaborative vibe which is one of approach to health. Aligned to this the key defining elements of Globe’s commitment, the company provides workforce. sports facilities for employees to perform various forms of exercise The company also offers an such as basketball, volleyball, yoga integrated leave management plan and various sports through the for its employees. In 2019, Globe company’s interest clubs. Eating right introduced a program called FlexBen is also an important facet of enabling which enables employees to convert good health and well-being. Globe all of their available Vacation Leave has appointed dietitians who advise credits for the year. It was noted employees on good eating habits. that 74% availed the benefits of this Recognizing the vitality of protecting program. Of the employees who the mental well-being of employees, availed this program, 50% opted the company has rolled out a for leave encashment, 36% chose program where employees can call, medical benefit enhancements, email or chat with a mental health while 3% opted for fund investment, professional. donations and life/travel insurances.
For the third time in a row, Globe Commitment to Nation-Building brought the Annual Physical Exam Globe is committed to engage (APE) closer to employees by holding employees in its Citizenship and it on-site, ensuring convenience to the Sustainability initiatives through its 7,000+ Ka-Globe who were part of Employee Volunteering Program. the APE program. As for the socio- Every year, Globe gives its employees emotional wellness, HR conducted one day of Volunteer Time-Off to a Financial Fair, inviting expert pursue their personal advocacy. It speakers to talk about insurance, also instituted activity- based and investments, followed by a boothing skill-based volunteering to enable activity. collaboration with partner groups and communities. One of the highlights of 2019 would be the integration of a Mental Health Occupational Health and Safety hotline. This was done in partnership Keeping employees safe and healthy with KonsultaMD, and a local mental is a vital component of Globe’s health advocacy group Knit. Through organizational culture. The company’s this program, employees can easily belief is for employees to maintain contact a mental health professional peak performance and realize their and get advice. The program saw a potential. It is also important that total of 30 Ka-Globe patrons monthly. they always feel safe and healthy This was part of the Employer Love while working towards organizational
130 Fueling the power of connectedness goals. Consequently, Globe adopts a proactive approach aligned to global best practices to ensure the safety Globe’s Safety Strategy and well-being of the workforce. Safety hazards identification and assessment 1. Globe’s Safety-First Approach Development of safety linked protocols and The company has a dedicated health guidelines and safety policy that forms the •• Safety linked training basis of its Occupational Health and •• Safety linked infrastructure Safety (OHS) strategy which covers •• Safety audits six (6) key components. The first •• Safety linked certification component is identification of safety linked hazards in every operational site. Once the hazards are identified, they are assessed and a strategy to effectively. They are also encouraged minimize the impact of this hazard to provide timely feedback to ensure is chalked out. This is followed by alignment of operations with the devising and implementing safety policy. linked protocols and guidelines which incorporate the insights gained HAZARD AND RISK ASSESSMENT from the safety hazard assessment study. As employees are at the The Globe Integrated Management forefront of implementing the safety System Committee regularly reviews linked guidelines, they are trained the job hazards and risk assessment on various safety linked aspects. of all Globe activities to ensure the Through training and other platforms, protection and welfare of employees, employees are actively engaged with workers and the general public. the safety dialogue encouraging them Activities identified as moderate to embrace a proactive approach to to high risks are provided with safety in the workplace. appropriate programs and controls. Some of the significant health Globe also invests in infrastructure and safety risks identified in Globe and personal protective equipment operations include: for its facilities and employees. To ensure each operational site is aligned •• Motor vehicle accidents during with Globe’s safety standards, safety field work and sales operations audits are conducted. Lastly, the •• Physical injuries due to equipment company obtains safety certifications failure, office maintenance, to strengthen the alignment of construction and installations safety practices to global best •• Office accidents and ergonomics practices. These 6 components are concerns such as prolonged implemented in a cyclical manner sitting/standing, eye strain, to ensure feedback received at the musculoskeletal pain end of audits is incorporated into the •• Danger from hazardous activities standard operating procedures and such as tower climbing, radiation guidelines. This then leads to revised exposure, and activities in confined training for employees and new space investments in safety. Hence, Globe’s •• Psychosocial, workplace violence, safety strategy is continuously and human behavior limitations evolving with the vision of setting •• Security incidents and acts of safety benchmarks for the industry. terrorism As part of Globe’s health and safety strategy, Safety Officers have been Managing risk through Insurance appointed to ensure the health The company partners with local and and safety policy is implemented international Insurance providers to
131 Globe Telecom 2019 Integrated Report Human Capital
compensate the general public on comprehensively communicate damages brought about by Globe’s health and safety processes to all operations and facilities. its employees, implemented across various operational sites. In 2019, This ensures financial coverages the company created EQ Procedure All of Globe’s operational relating to the company’s property and General Evacuation Procedure sites are ISO 450001 unique to every operational site. and property damage/bodily injury (Occupational Health and within the areas where it operates in. This customization was important to ensure procedures incorporate Safety) and ISO 22301 Specific insurance coverages are the distinct features of each site. (Business Continuity prepared for the following: To enhance clear understanding Management) certified. of accountability, guidelines were •• Globe property damages due to prepared to turn over the sole catastrophic (natural disasters) and responsibility of conducting an non-catastrophic (man-made) such emergency drill of an entire site to a as typhoon, earthquake, flood and designated Ka-Globe. fire. The company periodically •• Comprehensive General Liability 3. OHS Certifications performs internal and in cases where Globe property external audits to ensure (e.g. tower, cables, antenna, etc) All major sites of Globe (20 that the safety processes damages or causes bodily injuries sites) implement the Integrated to its immediate vicinity Management System and have are effectively implemented the requisite certification. In 2019, on site and safety practices 2. OHS Guidelines and Protocols Globe also completed the First Aid are aligned with ISO 450001 - Certifications on all facility ERT Occupational Health and Safety Laying out clear guidelines and members and the administration and ISO 22301 - Business protocols enables Globe to team, including Globe stores. This Continuity Management.
HEALTH AND SAFETY POLICY
Globe Telecom cares for people, not only for our employees but also the communities surrounding our operations, as they are critical to the success of our business. We protect their rights and promote safe and secure working environments for all workers. It is the management’s primary objective, the employees’ individual and collective responsibility, including our business partners to meet this commitment.
We commit to:
•• Continuously assess all ill health and safety hazards of our business operations and provide programs and process improvements toward prevention and elimination of occupational injury, accidents, and illnesses in the workplace and the communities where we operate; •• Ensure that occupational health and safety is a core consideration of planning, delivery, monitoring and review processes at a strategic and operational level; •• Monitor the non-ionizing radiation exposures of our sites and ensure that these are below the limits recommended in national and international guidelines; •• Train and equip our employees with necessary skills and information to work in a safe and environmentally responsible manner and mandate our business partners to adopt these principles to ensure communities’ health and safety; •• Conduct a regular review of our partners’ management system to ensure that the commitments of this policy are being delivered, and that we strive for continuous improvement; •• Comply with all occupational safety and health laws applicable to our telecommunication business and adopt international best practices; •• Report our safety, health, and environmental performance to our stakeholders.
132 Fueling the power of connectedness was conducted by the Philippine Action Team) and 45 members of Red Cross as required by the new Globe’s workforce have received RA 11085, “Act Strengthening First Aid Accreditation, Industrial Compliance with Occupational Safety Fire Fighting as well as Urban Search and Health Standards (OSHS) and and Rescue operation. Preparation Zero fatality and zero Providing Penalties for Violations for the recruitment of the 3rd man-hours lost due to Thereof”. batch to be trained is underway work-related injury/ for 2020. Globe employees have accidents 4. Investing in OHS-related also been encouraged to undergo Infrastructure and OHS Audits Basic Occupational Safety and Health (BOSH) and Loss Control In 2019, Globe completed the Management (LCM) training. Globe preparation of temporary shelters. has made it mandatory for employees These shelters will be utilized from certain cadres such as SO1 during times of disasters. The first (Staff officer 1) to undergo at least 10 step towards this activity was to hours of safety training . identify facilities which would be feasible options for developing an 2020 OUTLOOK evacuation set-up. This was followed with efforts towards making The company ensures a culture of the temporary shelter facilities diversity and inclusivity. In 2020, HR operational by purchasing 450 created the Pride@Globe Workplace units of tents with a complete set of Group for the LGBTQI+ community. basic needs. An intricately laid out This is followed by a Diversity Policy organizational plan, complete with where dependents of legally married details of logistics and customized same-sex couples can avail of the safety communication protocols same company benefits with the was also established. Distribution rest of the employee force. These are of helmets to all employees in case some of the ways where Globe show of earthquakes and installation of real caring for our employees – a an earthquake monitoring machine testament that here, Love Wins. linked to the evacuation alarms have been implemented.
It is important to confirm that the practices on sites are aligned to the guidelines and protocols laid out by Globe. In 2019, fire exit audits were conducted for all the core facilities.
5. OHS Training
Aligned to the company’s concerted efforts towards ensuring the highest standards of occupational health and safety practices, Globe provides training on various aspects of occupational safety. These trainings equip employees to effectively Globe’s Special Emergency Action Team (SEAT) respond to an adverse event. For held a training on industrial fire fighting instance, employees are trained with first aid skills through Emergency Response Training. Additionally, 2 batches consisting of 48 members of the workforce have completed the training on SEAT (Special Emergency
133 Globe Telecom 2019 Integrated Report Human Capital
HUMAN CAPITAL PERFORMANCE BAROMETER NEW EMPLOYEE HIRES
Employment 2017 2018 2019 NEW EMPLOYEE HIRES 2017 2018 2019 AND TURNOVER Total Employees 7,206 7,716 8,048 New Employee 769 1,220 871
Employee Diversity by Gender
Gender 2017 2018 2019 Gender 2017 2018 2019 Male 3,860 4,143 4,298 Male 420 672 185
Female 3,346 3,573 3,750 Female 333 548 146
Employee Diversity by Age Age 2017 2018 2019 Age 2017 2018 2019 Under 30 410 761 176
Under 30 1,609 1,908 1,956 30-50 337 454 152 30 - 50 5,304 5,490 5,707 Over 50 6 5 3 Over 50 293 318 385
Category 2019 Category 2017 2018 2019 Senior Management 4 Sr Management 476 480 521 Mid Management 253 Mid Management 4,203 4,446 5,336 Specialists & CBU 74 Specialists & CBU 2,527 2,790 2,191
Location 2017 2018 2019 Location 2017 2018 2019 Luzon 627 1,132 802 Luzon 6,123 6,633 6,915 Visayas 59 52 36 Visayas 648 656 666 Mindanao 67 36 33 Mindanao 435 440 467
134 Fueling the power of connectedness EMPLOYEE TURNOVER EMPLOYEE ENGAGEMENT
Employee 2017 2018 2019 Employee Engagement 2018 2019 Turnover Biennial Total Employee 753 678 605 Sustainable Engagement 91% 91% Turnover Index*
Attrition Rate / 10.47% 9.08% 7.50% *Willis Towers Watson 2019 Turnover Rate
PARENTAL LEAVE
Gender 2017 2018 2019 Parental Leave 2017 2018 2019 Retention Rate* Male 381 363 335 Male 100% 100% 96% Female 372 315 270 Female 100% 100% 96%
*returned after leaves and still employed 12 months after, in percentage
Total Number of Employees that took 2019 Age 2017 2018 2019 Parental Leave Under 30 177 202 174 Male 242 30-50 545 429 390 Female 124 Over 50 31 47 41
TRAINING EDUCATION
Category 2017 2018 2019 Gender 2017 2018 2019 Sr Management 58 51 31 Male 46,747 113,069 133,620
Mid Management 452 455 379 Female 41,473 79,958 93,796 Specialists & CBU 243 172 195
Category 2017 2018 2019 Senior 1,765 6,196 6,612 Management Location 2017 2018 2019 Mid Management 91,953 128,959 154,348 Luzon 658 621 542 Specialists & CBU 30,884 57,440 66,456 Visayas 55 33 37
Mindanao 40 24 26 Employees Volunteering
Employee 2017 2018 2019 Volunteerism Unique Employee 3,803 3,164 3,192 Volunteers
135 Globe Telecom 2019 Integrated Report Social & Relationship Capital
Nurturing Relationships, Empowering People and Inspiring Change
“Our people are important in Increase Household Penetration many ways, the development cycle Habituate and Monetize of any individual, STRATEGIC INTENT institution or team. It’s a big help to
Customer Experience and Service creating a culture that will be relevant Community Relations in the future. I Selling Practices and Product Labelling think the sustainable MATERIAL TOPIC Customer Privacy and Data Security organization and a sustainable company goes hand in hand Political and Socio-Economic RIsk with the culture Company Culture Risk that is comfortable with resiliency and Business Disruption Risk is adaptable to Cybersecurity and Data Privacy Risk change. Because if RISKS ADDRESSED Digital Transformation Risk we do not adapt to change, we will be Reputation and Customer Experience Risk less relevant. If we Third Party Risk are less relevant, we cannot contribute to the sustainability of Good health and Well-being the institution.” Quality Education Decent Work and Economic Growth Jaime Augusto Zobel de Ayala Industry, Innovation and Infrastructure Chairman (Executive Committee) Globe Telecom Sustainable Cities and Communities Responsible Consumption and Production Climate Action Life Below Water Life on Land SDGs IN FOCUS Partnerships for the Goals
Human Rights Principle 6: the elimination of discrimination in respect Principle 1: Businesses should support and respect of employment and occupation. the protection of internationally proclaimed human rights; and Environment Principle 2: make sure that they are not complicit in Principle 7: Businesses should support a precautionary human rights abuses. approach to environmental challenges; Principle 8: undertake initiatives to promote greater Labour environmental responsibility; and UNGC PRINCIPLES Principle 3: Businesses should uphold the freedom of Principle 9: encourage the development and diffusion association and the effective recognition of the right of environmentally friendly technologies. to collective bargaining; Principle 4: the elimination of all forms of forced and Anti-Corruption compulsory labour; Principle 10: Businesses should work against corruption Principle 5: the effective abolition of child labour; and in all its forms, including extortion and bribery.
136 Fueling the power of connectedness Understanding
Employee volunteering for Interlinkages the social causes and Synergies Green product offerings e.g. E sims, paperless billing Number of employees for Social & volunteering in social Relationship Paper saved through development causes paperless billing Capital 40% of workforce or 3,192 Number of customers employees volunteered for participating in Globe’s social development causes environmental conservation activities Sustain participation and encourage more employees 655 tons of paper saved to volunteer Investments in enhancing from 40.9M customers with service quality paperless billing Investments made in Network 1.7 million GCash users’ and IT Infrastructure partner with Globe in its efforts towards tree CAPEX 51 billion / US$989 plantation million dedicated towards network expansion Retain momentum and HUMAN increase customer and Committing to 63.0 billion/ community engagement in US$1.2 billion in network environmental conservation expansion
FINANCIAL NATURAL
Expand network coverage SOCIAL & Investments and RELATIONSHIP Network coverage in key initiatives to enhance cities and municipalities privacy and cybersecurity capabilities 93% of cities and municipalities covered Investments made in privacy and cybersecurity Continuously expand network capabilities MANUFACTURED coverage
Invested US$60M in INTELLECTUAL privacy and cybersecurity capabilities
Increasing investments in data privacy and increase number of beneficiaries for programs targeting awareness building on responsible use of the internet
Initiatives Key 2019 2020 Defining Performance Performance Priorities Interlinkages Indicators
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Globe values the growing network Globe nurtures its relationships with “Our goal is to of customers, suppliers and its customers through the philosophy build a relationship communities that it has been able of “Treating People Right to Create with every customer. to partner with over the years. a Globe of Good”. The company’s The company believes in forging customer value proposition is With the millions of strong relationships based on trust, captured by the acronym and customers Globe has, mutual respect, cooperation and a dictum “SEED”. Its aim is to nurture our digital platforms vision of shared growth with all its each customer as a seed would and technology makes stakeholders. The focal point is to be nurtured by a gardener. Globe it possible to engage nurture these invaluable relationships focuses on the resources and the them at scale - by leveraging an innovation centric infrastructure required for customer with efficiency and approach to enable unique value value creation while also actively consistency. Most propositions for its customers contributing to enhance the quality importantly, we are and communities at large. With a of the enabling environment. Hence, able to care for our substantial network outreach across Globe focuses on fueling the power of the Philippines, Globe envisions a interconnectedness among Filipinos customers in a relevant vast web of people to be impacted in a manner that is holistic and and meaningful way.” through its business activities. This sustainable. Rebecca Eclipse can be seen as a valuable opportunity Chief Customer Experience Officer for the company to promote a culture 1. Secure the customer (CCEO) of responsible stewardship in the economy. Consequently, through Globe’s strategy of securing a these relationships, Globe furthers thriving customer base is enabled its sustainability agenda towards by delivering technologies and holistic growth and the development services that are second to none. of the Philippine economy, powered The company is a one stop solution by digital transformation and for customer needs spanning connectivity. connectivity, entertainment, education and customized services. CUSTOMER FIRST: STAYING ONE Globe conducts field research to STEP AHEAD understand its customer’s needs better while also adopting the Globe serves over 94 Million latest technologies and customer mobile customers and 2 million experience (CX) trends. Field research The company’s CX strategy home broadband customers in the often comprises visiting customer’s focuses on: Philippines. With a growing and homes and gaining insight into their 1. Customer Insight: An dynamic customer base, Globe context and needs. The company also in-depth understanding of has a dedicated approach towards closely monitors customer’s online customer needs, challenges and ensuring customer delight enabled sentiments to immediately address by innovative and creative service customer issues before it surfaces opportunities. delivery. Actualizing customer vision to mainstream online platforms. 2. Customer Journeys: Re- into reality and making quality a Globe conducts surveys across the imagining customer end-to-end hallmark of service delivery are at the numerous customer touchpoints. experience core of Globe’s approach to elevating This gives Globe rich insights into 3. Digital/Omnichannel: the value generated for its customers. customer sentiment. Receiving real- Enabling seamless offline- time feedback is a key enabler of agile challenge resolution and service to-online and personalized/ delivery. contextualized capabilities. 4. Treating our own people Globe has been able to secure and right: Empowering frontlines to Secure the customer retain its customer base through serve customers better through Engage the customer its customer centric approach that the alleviation of menial tasks. puts them at the heart of every Empower the customer endeavor, from design ideation This elevates the quality of Delight the customer to service delivery. The company interactions with the customer. uses a management tool called the
138 Fueling the power of connectedness Net Promoter Score (NPS) which customer challenges and create serves as a compass for customer market differentiators. To establish satisfaction and engagement. Over a continuous dialogue with its the years, Globe has seen a consistent customers, Globe has designed increase of the NPS score, evidencing a blended approach to customer 8-digital landline the deep-rooted relationship the engagement which combines company has been able to forge with technology and human interface to In compliance with the its expansive customer base. Overall, create unique customer touchpoints. regulatory requirement of the Globe’s 2019 Transactional NPS score The company uses these numerous National Telecommunications was at 38.4, versus 34.5 in 2018. platforms as a means of educating customers on various features of the Commission Memorandum The increase in NPS score year apps and services. These platforms Order No. 10-10-2017, a prime on year is a testament of the also enable customers to receive example of Globe’s commitment company’s success in delivering the quick resolution on queries regarding to secure its customers is the best omnichannel experience to its services and products. 8-digit landline migration in customers. 2019 which entailed seamless 1. Amazon Connect: This platform 2. Engage with the Customer transforms hotline experience transition in the Metro Manila for Globe customers and enables area. The company ensured Multiple Touchpoints expedited resolution of customer smooth service delivery during At the heart of Globe’s unique queries or concerns. Amazon connect such shifts and made internal value proposition is understanding provides Globe’s postpaid customers adjustments to buffer customers the customers. Over the years with a personalized touch by greeting through any such transitional the company has been able to them with their first name (without 1 demonstrate deep insight into the need to key in/dictate their mobile phase . what matters most to customers number). It also offers enhanced by understanding their needs and self-service possibilities within the aspirations. Customer engagement IVR, reducing the need to wait to be is one of the key thrusts that enables connected to an agent (for balance Globe to identify critical triggers inquiry, reconnection requests, etc.). and pain points. Identified customer This optimizes operations as only challenges form the foundation for complex transactions reach a human creative ideation at Globe. When agent. The hotline also has a call back customer challenges coalesce with feature decreasing the need to wait in the company’s workforce and its the call queue for customers. technical prowess, it creates unique solutions that seamlessly resolve
Newly renovated Star Wars-themed PGH Pediatric Hematology-Oncology Clinic brings joy to indigent children with cancer. (L-R) Dr. Carmencita Padilla, Chancellor, UP Manila; Dr. Jorge Ignacio, Chair, Cancer Institute; Dr. Gerardo Legaspi, Director, Philippine General Hospital; Veronica Cabalinan, Country Head, The Walt Disney Company – Philippines; Maria Yolanda Crisanto , Senior Vice President, Corporate Communications and Chief Sustainability Officer, Globe Telecom; Rossy Anne Yabut Rojales, Creative Director, Hurray Interior Design Group; and, Dr. Lorna Abad, Chair, PGH Department of Pediatrics
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2. Enabling Frontline Services: Globe customers, e.g. through the User c. Globe Studios and Globe Live: has additional frontline services in Council, to help with ideation and In Globe’s endeavor to transform the place to assure commitment to quick testing of products and services1. Philippine entertainment landscape, product or service queries and to This also deepens the understanding the company has planned to take care of customer challenges. of customer engagement activities produce original shows, live events and aids in contributing to better and engaging world class content a. Broadband CFS: The service customer experience. through the creation of Globe Studios line comprises of frontline and Globe Live. Globe studios aims technicians to handle installation Globe also encourages customer to bring about transformation and repair for the company’s through events and activities such as in television and cinema by broadband customers. Globe Live, Elements Music Camp and bringing in the next generation Wanderland, among others. of entertainment to mobile with b. Globe myBusiness aftersales: original video productions. The Globe has established frontline a. Digital Entertainment: Globe has strength of this venture is also aftersales service for its SME been enabling Filipinos to experience backed by local and Asian media customers. a wide array of entertainment houses such as Viva Films, Reality solutions spanning seamless access to Entertainment, Quantum Films, c. Globe Online Telesales: videos, music, online games, Esports Spring Films and Astro of Malaysia. The company provides a direct and e-commerce among others. To address the challenge of delivering customer touchpoint through The company offers pioneering the most engaging and creative its frontline sales service of content bundles and partnerships events to satisfy customers, Globe Broadband and Postpaid plans. with globally recognized brands Live leverages Globe’s extensive such as FreeFB, YouTube, Netflix and experience to increase production d. Contact Center: The center Disney. Broadband plans bundled quality as well as its wide distribution at Globe provides customers with with the best local and international coverage. direct access to hotline agents content has led to more customers handling mainstream LOBs (Line enjoying high quality entertainment d. Social Media and Globe of Business). and services. Globe’s digital Community: The company also entertainment products and services engages with its customers through e. Globe Stores: The company has led to mobiles becoming Filipinos social media platforms. This paves has 212 stores nationwide to primary source of entertainment, way to increase the company’s ensure frontline services to often replacing televisions. outreach and ensures easy digital take care of customer concerns. accessibility. This platform created The establishment of Globe b. Esports: In 2019, Globe unveiled by Globe connects its extensive Generation (GEN3) stores also its first Esports Center (ESC) at Play customer base. Globe customers provides customers with a diverse Nation in UP Town Center, Quezon exchange learning and tips and help experience. City. The company has also expanded each other through this community its #PlayItRight advocacy into Esports platform. This creates a sense of f. Account Managers: The with the recent launch of Team Liyab belonging and connectedness in the company has specialized teams and in partnership with Mineski, mind of the customer. In 2019, the in place to look after customer Megaworld, and Logitech. The ESC omnichannel enablement ensured accounts. There are dedicated offers unique and exclusive activities that customers are more digitally Globe employees to take care consisting of mini-tournaments, savvy and expect to be self-served. of sales accounts. SG Account gameplay, fan meet-ups and meet & It has also facilitated the frictionless
Managers handle SME clients and greets with Team Liyab.2 The center handover of transactions to EG Account Managers handle also aims to develop recent triumphs traditional or offline channels. corporate clients. of Philippines Esports as it continues to attract strong supporters and Globe Telecom Facebook 3. Customer Engagements: Globe acceptance following its inclusion •• Chats Received: 2,984,362 has also established various other in the 2019 SEA games. Strong •• Chats Answered: 2,945,924 platforms to interact with customers community support was also seen »» Globe At Home: 649,981 such as User Council, Business to increase with the success of the »» Postpaid: 343,169 Advisory Council and Women’s Philippine’s national contingent finish »» GP and TM: 779,030 Council. The company also conducts on the top of the medal tally for »» Brand not specified: Human Centered Design and Esports.3 | 4 1,153,102 User Research by partnering with •• Response Rate: 98.71%
140 Fueling the power of connectedness ‘@talk2GLOBE’- Twitter to check account details, data usage “One of the major •• Chats Received: 619,390 and the ability to add data to their things that dictate •• Chats Answered: 617,577 respective account and plan. a lot of what we are »» GAH: 97,268 doing right now in »» Postpaid: 56,790 Globe One App: The app acts as a channel management is »» GP and TM: 57,621 digital companion for all Globe needs »» Brand not specified: 405,898 the changing customer or challenges. It allows the customer behavior and their »» Response Rate: 99.71% to monitor Globe accounts such as Postpaid, Prepaid/TM or Broadband. preferences. They Globe Community Globe One also enables the customer are young and they •• Total page views**: 175,760 to track data usage and bills as well as are digital. Their (combined web and mobile page request for service modification and lives revolve around views) payment of bills. smartphones and they •• Total membership: 373,579 are the kind of **Total pageviews: 175,760 Gmovies: Promoting convenience (combined web and mobile generation that prefer with the tagline “Get Inside, Not in pageviews) - this is significantly convenience. So, in line”, the app empowers the customer lower compared to previous everything and anything with access to purchase movie tickets years since Globe migrated to a that we do, we are even before the premiere date. It is new platform, AEM, in 2019 and also the only movie ticketing platform always thinking about in the process lost its SEO tags. in the Philippines that aggregates those attributes and more than 100 cinemas nationwide the behaviors of the 3. Empower the customer with customer enriching app features. target customers.” Additionally, it has also partnered Self Service Through Technology with Ayala Malls Cinemas, SM Bernard P. Llamzon and Applications Executive Vice President, Cinemas, and Robinsons Movieworld, Channel Management Through a high quality and diversified to provide an extended avenue for service portfolio Globe is dedicated their customers. to making it easy for customers to enjoy and experience the complete Rush: A customizable digital platform potential of a digital lifestyle. The that allows enterprises to easily company focuses on providing build, track, and manage their own enhanced service quality and customer loyalty program. Rush’s ensuring ease of product use and digital solutions for loyalty help applicability. Through the unique businesses conveniently develop and digital ecosystem, Globe unlocks deploy a custom-branded mobile limitless possibilities for each app in as fast as 10 days. Rush also customer. provides in-house marketing tools for highly targeted communication Gie: Globe designed a personalized with end customers via SMS, in-app Facebook Messenger bot to notifications, and email. effectively engage with customers through a user friendly and relatable 4. Delight the customer chatbot. Gie takes the form of a young, digital savvy Filipina. This a. Globe Rewards design makes it easier for customers Globe believes in valuing customers to easily approach and discuss by offering personalized rewards, queries. celebrating milestones, and enabling delightful experiences. Globe Rewards Globe at Home App: The app allows customers to earn points from provides a free and convenient way to their Prepaid reloads or Postpaid track and boost the customer’s Globe monthly bill which they can use for at Home Postpaid and Prepaid Wifi data, call, and text promos. It also account. It can be accessed through promotes pay as cash with partner any smartphone or tablet. The Globe stores and allows customers to enjoy at Home app allows the customer exclusive discounts.
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Thank you Globe for giving Thank you Globe for the Thank you so much Globe me free 3GB for surfing. 200 bonus points. Telecom for the treats! It was an awesome treat! - Sylvia Mendoza Got 917 points. Free 3 doughnuts from Krispy - Will de Guzman Kreme and Free upsize from Happy 7th year to us Globe. Chatime. Thank you for the privileges! Thank you for the reward. #GlobeGratefulDay - Ekay Tan Hinay - Liezel Sichon - Dondon Medalle Luberio
Globe Rewards are also promoted employees, this program has through the 917 celebration. Every allowed them to take part in September 17 (917), the company continuously enhancing service celebrates its long-term relationship quality wherever they are in the with Globe customers and treats organization. them with a day of gratitude. The theme for 2019 was ‘Grateful for You’. •• Frontline Persona Program: There was also a significant increase The program aims to enable in customer engagement across all the company to understand its Globe brands with bigger and better frontliners and create better rewards in the form of data (GBs), service delivery experience for reward points and digital vouchers. its customers. This enriches the frontliners’ experience through Globe’s customers have also training and engagement provided testimonials towards their programs as well as building appreciation of Globe Rewards and brand love while interacting with the brand itself. customers. b. Creating a Culture Centered on •• Up Your Service: This year Customer Experience marks the 8th year of this training In Globe’s endeavor to enrich program that equips employees customer experience, the company with the “common service continues to foster a culture centered language” , reinforcing the on advocating the mindset of customer first mindset in each Obsessing About The Customer. This employee’s mind. has been deeply embedded in Globe’s employees and frontliners, sustained ENGAGEMENTS by long running programs that continue to evolve as the company IR 4.0 Summit: To capitalize on the strengthens its relationships with technological phenomenon that is its customer base across multiple now transforming the way people touchpoints. work and live, Globe Telecom was one of the organizers of the Industry •• Customer First Circle: This 4.0 summit in September 2019. pioneering program on creating a The award winning summit largely customer-centric culture enables focuses on the growing innovation Globe’s employees to follow in the telecom sector, the future through with their innovation of the telecom industry and how ideas to implementation using government and the private sector six sigma, UX, and service design can maximize the benefits of new methodologies. Open to all technologies.
142 Fueling the power of connectedness Case Studies Victor Consunji Development Corporation “Our vision for M Residences is to be (VCDC) Real Estate the beginning of a long and fruitful Globe at Home has partnered with Victor Consunji Development Corporation partnership with VCDC (VCDC) to introduce the first future-ready residences with built-in high-speed in pioneering more home internet at M Residences in Taguig. Through this connectivity, residents innovative residential can also equip their homes with Globe Connected Home powered by Samsung developments fit for the SmartThings for enhanced entertainment, convenience and security inside demands and lifestyle their households. of today’s digital Filipino family.”
Alberto de Larrazabal Chief Commercial Officer Korona-911 Koronadal City
Through Globe Business and the City Government of Koronadal, the company launched the Korona-911 emergency hotline. This acts as an all-in-one emergency communication for information dissemination and response coordination during a crisis such as the Intensity 6.0 earthquake which hit the town on October 29, 2019. Now under the management of Koronadal’s City Disaster Risk Reduction and Management Office, the hotline ensures implementation of communication strategy for early warning, community awareness, coordination or dispatch of emergency response such as police, fire control, ambulance, and counterterrorism.
Globe prepaid and postpaid customers have the added advantage of being able to call the hotline, free of cost. Globe Business provided the hardware, infrastructure and communication as well as text blasting through Amber by Globe Labs and the Session Initiation Protocol (SIP) Trunking of the Korona-911 service.
Connectivity for Real Estate PIONEERING DIGITAL SOLUTIONS includes Mynt, a business venture Developers: Globe has entered into a BEYOND TELECOMMUNICATION of Globe, Ant Financial and Ayala strategic partnership with real estate Corporation; KonsultaMD, the largest giant Megaworld Corp. to integrate Globe is committed to be a change telehealth in the Philippines; and digital technology in its properties. agent in anchoring the digital digital advertising firm AdSpark This partnership with First Oceanic transformation across industries Holdings. Property Management Inc. (FOPM) spanning healthcare, financial brings focus to design innovation and services, entertainment and Mynt connectivity in its properties. A total education through its partners and Globe Fintech Innovations (Mynt) of 25 FOPM-managed properties subsidiaries. operates the mobile wallet GCash enjoy the benefits of this partnership, the fastest growing e-wallet in the with the number of beneficiaries 917 Ventures Philippines. Mynt aims to provide to increase in 2020. FOPM has In 2019, Globe launched its corporate secure, accessible and convenient also initiated the implementation incubator 917 Ventures to strengthen fintech solutions to individuals, of digitized payment processes its position as the leader of Filipino businesses and organizations. The in residential and office units in digital lifestyle by developing and company also addresses financial collaboration with GCash, Globe at operating new non-telco businesses inclusion through mobile money, Home and Globe Business. With the that leverage Globe’s existing micro loans and investments. understanding that sustainability strengths. The company’s accelerated goes hand-in-hand with technological push for new digital businesses a. GCash advancement, FOPM also aims to through 917 Ventures is seen to play In the Philippines, the number of implement Globe’s E-waste recycling an important role in the company’s people owning mobile phones is program. future growth. 917 ventures also greater than the number of people
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5 owning bank accounts . Based on the Telehealth, Inc. (GTI). This hotline “Our core continues 2017 BSP Financial Inclusion Survey, focuses on delivering health care to grow very well. only 23% of adults have a formal to marginalized and underserved There are very few bank account in the Philippines6. This customers by paving an easy channel presents an immense opportunity of communication between the countries with the to leverage technology to enable customers and licensed doctors. characteristics of the digital financial inclusion. Through The platform enhances ease and Philippines that is GCash, a leading mobile wallet in affordability of healthcare access growing at the rate it the Philippines; Globe has been able by enabling preliminary health is. But having said to promote financial inclusion and services through a mobile or landline that, we are taking expand the digital cash ecosystem in connection. the time as early as the country. GCash introduced several now to ensure that we innovations in 2019 elucidated below: In line with the vision of serving are likewise addressing the underserved communities, what other revenue • GSave: A digital savings account, in 2019, GTI in collaboration in partnership with CIMB bank with Globe Telecom’s Enterprise streams Globe could that can be opened straight from Group completed a pilot with the develop and tap to be the GCash app. GSave allows first Department of Health (DOH) in able to continue the time depositors to participate in Region IV-A. Through this pilot, growth of the company.” the formal banking segment and telehealth services were made provides a competitive edge with available to 10 remote barangays. Alberto De Larrazabal, an interest rate of up to 4% interest The intent of DOH IV-A was to Chief Commercial Officer per annum, with no minimum initial incorporate health innovation and deposit or maintaining balance technology into its existing service requirement. delivery network to further drive • Bank Transfer (Instapay): Enables health care services in geographically customers to send money from isolated and disadvantaged areas their e-wallet to their chosen (GIDA). GTI has identified several bank without having to pay any municipalities outside of NCR that additional charges. GCash is intend to use this solution. currently the #1 Instapay Sender respective categories for Vivo, Globe, amongst all Instapay-registered Adspark, Inc. and TM. MFIs. On a mission to accelerate digital and • International Remittance Feature mobile advertising in the Philippines, AdSpark joins the portfolio of (for Dubai & Hong Kong): In guided by an in-depth understanding 917 Ventures to strengthen and partnership with AlipayHK, GCash of the Filipino consumer, AdSpark has continue delivering delight on display launched a cross-border remittance evolved into a full service, data-driven through creative, media, and unique service within the app, promoting agency from SMS marketing solely innovations. This is enhanced by convenient money transfer abroad back in 2012. Adspark helps brands intelligent solutions and decisions for its customers. This feature in create digitally assisted human that are more efficient, faster and the app is powered by blockchain connections through innovative, controlled for marketers today, technology which supports faster, less invasive and more intuitive while strongly leveraging on telco more secure, and transparent advertising solutions for SMEs, assets, creative capabilities, and data processing compared to other enterprises, and agencies. intelligence. remittance methods in the country. • GCash Help Center: Assists AdSpark advanced its success in Kickstart Ventures customers with app inquiries and 2019 due to an increasing number To anchor Globe’s focus area of concerns. This platform enables of clients, helping them navigate the sustainable innovation, the company customers to directly access complex and ever-changing digital established a strong foundation with GCash’s knowledge base to provide marketing landscape. The company Kickstart Ventures (“Kickstart”), information on how to fully utilize is able to solidify its reputation its independent, wholly owned the app. (help.gcash.com) by accomplishing 11 wins across corporate venture capital entity. As prestigious award giving bodies in an institutional venture capital firm, Konsulta MD the national and international arena, Kickstart is a global investor that Konsulta MD is a pioneering 24/7 such as Tambuli, PANAta, Boomerang, seeks out and invests in promising health hotline service of Global YouTube, and MMA Smarties under technology startups - innovative
144 Fueling the power of connectedness founders and technologies that can services. To continue delivering positively transform businesses, efficient employee services, Asticom industries, and communities. To date, strengthens labor relations and Kickstart has made investments in 42 increases training hours to improve tech startups in seven (7) countries ~ performance with clients through the Globe launched the Supplier the Philippines, Indonesia, Singapore, use of tools and technology. It also Code of Ethics in 2017 Malaysia, United States, Canada, focuses on achieving an increase in and Israel ~ backing 88 founders of employee NPS to energize employees 100% of Globe vendors signed companies in diverse fields such as to thrive at work via employee the SCOE upon onboarding enterprise SaaS, fintech, healthtech, retention and engagement programs. education, digital lifestyle and entertainment, e-commerce and RESPONSIBLE SUPPLY CHAIN In 2019, Globe launched a digital logistics. MANAGEMENT Supplier Self-Assessment Survey against the SCOE via In 2019, Globe’s parent company, Harnessing Synergies to Enable Procurement System, SAP Ariba Ayala Corporation, chose Kickstart Sustainable Transformation Ventures to manage a new fund, Globe partners with a myriad of targeting US$150M from subsidiaries suppliers, vendors and business across the conglomerate. This partners in its endeavor of delivering was also anchored by the Ayala customer delight and enabling Corporation to double down on the digital transformation of the innovation investments in tech Philippines economy. Globe engages startups. The new fund, called the suppliers for various categories ACTIVE Fund is the first and largest from network, IT, construction corporate VC fund in the Philippines and facilities, and marketing and and underscores Globe and Ayala’s advertising. With the company’s commitment to sustainable dedicated approach to sustainable innovation and technology development, Globe envisions the entrepreneurship. ability to influence its partners in accelerating the sustainable Asticom Technology Inc. transformation of the economy. The As a Philippine-based shared company’s approach to responsible service company under the Ayala supply chain management imbibes a conglomerate, Asticom focuses life cycle perspective embedding the on providing superior customer culture of responsible stewardship experience with consistent delivery throughout Globe’s value chain. of high-quality responsive services. Globe has embarked on assessing This is driven by tailor made and its complete value chain from value driven solutions, underlined by planning to disposal for sustainability innovation to address client’s business linked risks. There are three (3) key needs. The services under Asticom cornerstones that anchor Globe’s include, Staffing Services, Managed responsible supply chain vision; the Service and Payroll Administration Globe Supplier Code of Ethics (SCOE), and Management. The strategy Supplier Contract Constructs and a falls under 4 verticals of Financial, Vendor Monitoring System. Globe Customers, Products and Services envisages this strategy to culminate and People. This year showcased in the company, partnering with 7 new association memberships businesses that share its values of (MAP, FINEX, ECCP, PCCI, BCCP, sustainability. ANZCHAM and AMCHAM) along with a 20% increase in new business Globe’s Supplier Code of Ethics (non-Globe) and 18% new business (SCOE) clearly lays down the (Globe). The company also launched company’s expectations from its HR Chatbot (Eva) for Globe HR suppliers with regard to doing managed services (HELPDESK) and sustainable practices. The Globe BRAD Mobile APP for Globe concierge Supplier Code of Ethics (SCOE)
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establishes standards of quality with its key suppliers. In 2019, Globe and business integrity. The Code engaged with all its suppliers and SUSTAINABLE SUPPLY CHAIN aims to ensure that human rights vendors through a self-assessment POLICY are preserved, operations are exercise to gauge the extent to which environmentally responsible and sustainability is entrenched in its Globe is committed to develop, conducted in an ethical manner supply chain. Local suppliers refers to practice and promote supply throughout its value chain. The code entities incorporated or registered in chain policies and programs to is applicable to all vendors of the the Philippines. care for the environment, care Globe Group of companies. Globe for our people, effect positive expects its vendors to acknowledge Supply Chain Roadmap societal impact, and enable a and actively support the Code and In the company’s endeavor to digital nation. These shall include consistently seek to conform to the step up its sustainability practices policies and programs that: standards contained therein. In the at the supply chain level, Globe company’s endeavor to emerge as a plans to conduct external audits •• Mitigate environmental and leader for responsible supply chain in the upcoming years for its social risks and impacts in the management, the company plans to critical suppliers. The company is procurement and logistics review the SCOE biannually to ensure also preparing to roll out various activities alignment to global trends and best supplier engagement sessions •• Ensure continuity of operations practices. In 2019, Globe published to influence suppliers on the to ensure availability of the Sustainable Supply Chain urgency to contribute to global services even during crisis Management (SSCM) policy and environmental conservation efforts. situations conducted vendor self-assessment To encourage more suppliers to •• Promote efficient energy to gauge the extent of sustainability embrace sustainability, the company resource management in its linked risks to its value chain. plans to recognize suppliers who operations showcase complete compliance and •• Enable the development Globe subjects all current or potential commitment to Globe’s sustainability and participation of local vendors to an accreditation process values. By way of creating an enterprises in the supply chain to provide assurance that the engagement platform with suppliers, through upskilling, supplier company deals only with legitimate the company’s mission is to enable development, creation of and legal entities, technically qualified best practice sharing and mutual access to appropriate business and financially capable vendors. corporation as well as inspiration on opportunities in the Globe Active vendors are subject to sustainability linked themes, spanning Supply Chain periodic performance evaluation from climate risk mitigation to in the areas of quality, service and resource usage optimization. Through In support of this Policy, we delivery. The company drives vendor’s this agenda, Globe hopes to provide obligate our suppliers to comply SSCM compliance by involving the an impetus to global sustainable with the minimum standards companies’ top suppliers through development. of our Supplier Code of Ethics capacity building and sustainable and we encourage our suppliers, supplier engagement. Globe’s Emphasis on Local Sourcing and their suppliers, to develop To provide a stimulus to the and implement their own Globe commits to engage with development of local communities, sustainability programs. Suppliers who share the values of Globe is committed to encourage sustainability in the areas mentioned local sourcing. In 2019,majority below: (78%) of its suppliers were local. The company is committed to prioritizing •• Labor and encouraging local suppliers. This •• Health & safety supports Globe’s ambition to deliver •• Business Continuity substantial indirect economic impact •• Environmental sustainability in its operating ecosystem. •• Governance & Ethics Local 840 Globe annually gathers its top 100 suppliers - both international and Foreign 234 local, for the Globe Business Partner Awards. Through this platform, Total # of Suppliers 1,074 Globe has the opportunity to engage
146 Fueling the power of connectedness of sustainability. The company Globe ensures the adoption of HUMAN RIGHTS PROTECTION ensures that none of its operations best practices of ISO 26000 Social IN GLOBE’S SUPPLY CHAIN have a negative impact on local Responsibility and a governance communities. Globe is dedicated framework using the Social Return Globe prescribes to a supply chain to support community building on Investment (SROI) model for the perspective on the protection activities in partnership with the company’s community relations of human rights. Consequently, government in geographies of its and CSR efforts. ISO 26000 enables the company ensures the operation, to ensure holistic growth businesses and organizations to protection of human rights at its and development. In 2019, Globe translate principles into effective supply chain level by engaging embraced the Social Return on actions and shares best practices with suppliers, vendors and Investment (SROI) framework in relating to social responsibility on a partners on the importance implementing, monitoring and global front. The SROI framework is of implementing measures evaluating its Citizenship programs. a guidance used to measure social to protect human rights. The SROI is a framework that provides impact using the following indicators: company adopts a conscientious guidelines on how to measure social value of investment, reach, monetary approach while screening and impact by using financial proxies value of outcomes, attribution, onboarding suppliers to ensure to quantify shared value created displacement and deadweight. engagement only with partners by projects of activities. The initial who share the company’s values SROI guide was originally written in • Digital Thumbprint Program of human rights protection. 2009 with the UK Cabinet Office and (DTP) updated in 2012 as a result of a multi- The world is evolving drastically stakeholder consultation. on the technology front which not only brings opportunities A. Globe Bridging Communities but also bears several 2020 OUTLOOK Through Globe Bridging challenges. The company sees Communities, the Corporate Social the importance of educating Guided by the GSMA Climate Responsibility (CSR) platform of Filipinos on the responsible Taskforce recommendations, Globe Globe and its subsidiaries, the use of technology (gadgets, will align its Climate Strategy company envisions a transformation website, social media platforms with the GSMA Mobile Sector of underserved communities etc.). The Digital Thumbprint Net Zero Pathway and include nationwide. This is harnessed Program (DTP), a cyber wellness Supply Chain in its environmental through the power of collaboration program of the Singtel Group management framework. The and inclusivity through innovative within the Asia Pacific region, company will continue to work with information and communications promotes responsible digital its business partners to address technology. With the growth of citizenship and teaches Filipino key environmental issues (waste business at Globe, the company youth about the impact of management for e-wastes, single- does initiatives that will help address their online behavior through use plastics and carbon reduction the needs of the minority and workshops on cyber security and offsetting) using the circularity marginalized sector. This contributes and safety, online etiquette and framework and innovations such as to an engaged and empowered responsibility, empowerment IOT. workforce, committed to do a Globe through technology. The program of Good. encourages students, teachers, and CREATING A GLOBE OF GOOD parents to participate in creating B. Governance and Strategy an open, inclusive, collaborative, Delivering Social Impact Beyond To ensure implementation of Globe’s and safe online environment. The Operational Boundaries initiatives in building a resilient initiative was launched in 2016 and It is Globe’s vision to serve the community, Maria Yolanda C. includes four (4) major learning Philippine economy as a whole, Crisanto was appointed along with a modules: the company consistently makes sustainability team to carry out the investments beyond its revenue company’s commitment towards »» Digital Insight: Trains generating activities. These responsible business operations. beneficiaries to identify threats programs span various focus areas The Sustainability team works with and secure information better such as education, environmental other members of the organization »» Digital Impact: Enables conservation and digital inclusion. to carry out sustainability practices understanding of technological Through these initiatives, Globe and communicate said initiatives impacts on social activities contributes to its key strategic pillars throughout the organization.
147 Globe Telecom 2019 Integrated Report Social & Relationship Capital
»» Digital Ambition: Enables the beneficiaries with skills on using technology to help achieve their life goals »» Digital Discernment: Helps develop critical thinking; how to help identify credible or questionable online sites (co- developed with Facebook)
DTP is expanded through the train- the-trainor approach covering the Department of Education (DepEd) teachers and Globe employee ambassadors. The module and volunteers share this knowledge with target audiences about the • Global Filipino Schools (GFS) DepEd integrated Globe’s Digital appropriate ways of using the Thumbprint Program in K-to-12 program curriculum. internet to protect themselves Launched in 2012, this program against unethical usage, illegal aims to digitally transform public fraudsters and lurkers. Through schools in the Philippines. The GFS this program, the importance of program equipped public schools digital citizenship is highlighted with free internet access, mobile and empowers kids to fight online technology for teaching and verbal abuse and cyber-bullying in teacher training on 21st century a correct manner. learning approaches through technology. KEY HIGHLIGHTS AND GFS was included in a 2019 OUTCOMES research conducted by the United Nations Economic and Social Commission for the Asia and the Globe turned over the Global Filipino •• Expanded reach of DTP via Schools (GFS) program to DepEd National Summit on Digital Pacific (UNESCAP) and United (L-R) Maria Yolanda Crisanto, Globe Chief Nations Educational, Scientific and Sustainability Officer and Senior Vice Citizenship and Responsibility President for Corporate Communications; (NSDCR) in partnership with Cultural Organization (UNESCO), GH Ambat, Department of Education entitled, Inclusive use of Broadband (DepEd) Assistant Secretary; Atty. Tonisito the DepEd in September 2019 Umali, DepEd undersecretary; and Miguel »» Attended by over 400 Connectivity for Quality Education: Bermundo, head of Globe Citizenship. DepEd Values Education and ICT curriculum experts and teachers nationwide »» DepEd conducted a workshop to create lesson plans and implementation plans to roll out modules on Digital Citizenship and Responsibility •• Co-developed a DTP Parent Module with Plan International to educate and empower parents to become more responsible consumers of online technology •• SROI score of 450 for its impact to public school students and teachers
SDG in focus: 4, 17
148 Fueling the power of connectedness Insights from Asia and the Pacific. 6. Angeles City National Trade The study cited that the GFS School KEY HIGHLIGHTS AND program contributed to the 7. Ramon Magsaysay Cubao High OUTCOMES following: School, Quezon City 8. Camarin High School, •• Officially turned over the »» Improved digital skills among Caloocan City program to the Department of teachers and students, 9. Batangas National High Education (DepEd) in 2019 specifically on usage of mobile School •• Reached all 17 regions in the technology and computer 10. Abellana National School, Philippines, enabling 218 software; Cebu City schools, 11,666 teachers »» Enabled 21st century learning 11. General Santos City National and 331,241 students with outcomes that involve High School access to ICT tools and creativity, communication and methodologies. collaboration; • Globe Future Makers (GFM) »» Increased student engagement Program •• Improved creativity, in classroom activities; and Future Makers is a Singtel Group communication, collaboration, »» Enhanced school culture regional program designed to critical thinking and increased through readiness in ICT gather social innovators with student engagement in the integration. innovative technology solutions classroom focused on solving social Globe rolled out its Home WiFi issues in Singapore, Australia, •• GFS contributed to the 2018 Library Program which consists of Philippines, and the region. For National DQ Impact Report donations of Prepaid Wifi Modems Globe, its Future Makers program that assessed the Digital to public schools as a way to acceleration program for tech Quotient (DQ) of Filipino encourage learners to access the start-ups and social innovators learners internet in the comfort and safety that leverage technology to •• 73% of 8-12 Year Old of the home. As it is a common help address the country’s most Filipino Students at Cyber- practice for public school students pressing social issues. The program Risk (DQ Institute Study, to complete work assignments which was initiated in 2017, 2018) in internet cafes after school, encourages social innovators the program provides schools to integrate use of technology with a free supply of modems into the business model, while plus a borrowing program that addressing UN SDGs. The program enables students to bring the provides identified startups with modems home and continue their mentorship, marketing assistance work without the need to stay and networking opportunities. out of the house for extended The top 5 selected startups Five (5) startups (Tagani, Grupo periods to complete online school receive technology support Kalinangan, Antipaea, AIDFI, and requirements. This is in line with valued at 200,000, networking LexMeet) with game-changing digital solutions have made it to the 2019 Globe Globe At Home’s mission to opportunities, mentorship and Future Makers (GFM) program. GFM aims provide internet to 2 million homes opens the unique opportunity to to help build an ecosystem of support for local social innovators that uses by 2020. pilot their business in any of the technology to solve the country’s most Singtel Group markets challenging social problems. These 11 schools below were included in the pilot program:
1. Mano Amiga Academy, Paranaque 2. Andres Bonifacio Integrated School, Mandaluyong 3. Dasmarinas National High School 4. Luis Hervias National High School, Bacolod City 5. Pangasinan National High School
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KEY HIGHLIGHTS AND OUTCOMES
Top 5 startups in 2019 include: •• Tagani, an end-to-end agribusiness matching platform powered by digital technology •• Grupo Kalinangan, a non- profit that deploys innovative IT solutions to help LGUs manage their cultural heritage resources more effectively New Life Center turnover ceremonies (L-R) Wardley Getalla, PDEA Regional Director; Carmen Remedios Durano-Meca of CPADAO; Leocadio Trovela, DILG Regional Director; •• Antipara, an underwater Patrick Gloria, Globe Director for External Affairs -Visayas & Mindanao; Michael Dino, 3D geospatial mapping Presidential Assistant for the Visayas Secretary; Hilario Davide III, Cebu Governor; Honeylette Yapha-Lingad, Pinamungahan Vice Mayor; Miguel Martin Bermundo, Globe and analytics company for Citizenship and Advocacy Head; Rofil Sheldon Magto, Globe Citizenship and Advocacy maritime and environment Senior Manager. inspection* •• Alternative Indigenous reducing energy consumption and Development Foundation, emissions. Globe Future Maker KEY HIGHLIGHTS AND Inc. (AIDFI), an NGO providing alumni, Virtualahan, conducted OUTCOMES water to higher elevated the first batch of capacity-building villages or farms without the courses for out-patients who are •• Globe collected 231,419 use of electricity or fuel* former drug dependents. 10 out of pieces of single-use plastic •• LexMeet, an online legal the 30 graduates from the program waste, which were turned into consultation platform and are now part of the workforce and 24,500 ecobricks by Green marketplace benefiting mostly are currently employed. Antz Builders, Inc. This has OFWs, SMEs, and physically developed ecobricks as a abused victims. B. Globe’s Plastic Xchange green and more cost-effective *Antipara and AIDFI have received Program alternative to the regular grants from Singtel, on top of the Globe, during the 917 celebration, hollow blocks. support from Globe, expanding engaged 7 partner communities their international presence as part in a Plastic Xchange Program to •• Each ecobrick contains 100 of the GFM acceleration strategy spark behavioral change in the grams of plastic. household and LGU in redirecting •• The Plastic Xchange Program single-use plastics to partner SDG in focus: 4, 9, 11, 17 is part of ‘Wag sa Single-Use organizations that treat these Plastic (WasSUP) advocacy of plastics sustainably. Globe. • Community Development During the Plastic Xchange SDG in focus: 3,10,17 A. Globe’s Partnership with Program, Globe was able to collect the Government for Drug 231,419 pieces of single use plastic Rehabilitation waste which were turned into Globe has turned over a 106 bed 24,500 ecobricks in Arca South Drug Rehabilitation Center spread Ecohub. The Ecohub is a processing across 2,600m2 which provides a facility in Ayala Land’s 74-hectare clean and safe environment for Taguig estate developed in Cebu Provincial Government to partnership with Green Antz restore the health of victims of Builders, a Bulacan-based social drug addiction and equip them enterprise which has created the with needed skills to help with ecobricks as a green and more their reintegration to society. cost-effective alternative to the The rehab center complies with regular hollow blocks. environmental standards by
150 Fueling the power of connectedness The ecobricks make use of plastic laminates which are compressed via a proprietary process. Each ecobrick contains 100 grams of plastic. 7 communities were rewarded with ecobricks to be used for various construction projects. The ecobricks will be used to build community gardens
The ecobricks will be used to build community gardens and benches, a waste segregation facility and a creek fence. It would also be used for rehabilitation for daycare centers. These communities are:
•• Barangay Magallanes in Makati, •• Andres Bonifacio Integrated School in Mandaluyong, Through this, the two (2) parties Globe and ABS-CBN Foundation •• Barangay 455 in Manila, were able to strengthen the efforts Inc. have joined forces to advocate •• Barangays Palatiw and San for the health and safety of all of Bantay Bata in protecting Filipino children by offering toll-free Antonio in Pasig, and disadvantaged and at-risk calls to Bantay Bata #163 helpline •• Barangays Signal Village and children through a nationwide for all Globe and TM mobile phone Upper Bicutan in Taguig. network of social services such users beginning November 2019. (L-R)Globe Chief Commercial Officer as rescue and rehabilitation, Albert de Larrazabal, ABS-CBN Toll-free access to the Bantay Bata training and advocacy on child Foundation, Inc. Managing Director 163 Hotline abuse prevention, rehabilitation Susan Bautista-Afan, ABS-CBN Globe and ABS-CBN Foundation of families in crisis, educational Foundation, Inc. Program Director Jing Castaneda-Velasco, Peter Inc. have joined forces to advocate scholarships, community outreach, Maquera, Globe Business Senior for the health and safety of all and medical and dental missions. Vice President. Filipino children by offering toll- free calls to Bantay Bata #163 By making Bantay Bata #163 helpline for all Globe and TM toll-free for all Globe and TM mobile phone users beginning customers, it will become easier November 18, 2019. and safer to report, rescue, and rehabilitate sick and abused children.
1 https://www.globe.com.ph/business/sme/user-council.html 2 https://www.globe.com.ph/about-us/newsroom/corporate/globe-unveils-first-esports-center.html 3 https://www.globe.com.ph/about-us/newsroom/consumer/bigger-esports-center-back-in-eastwood.html 4 https://sports.abs-cbn.com/esports/news/2019/12/06/sea-games-enderra-secures-sibola-s-first-medal-starcraft-64106 5 http://www.bsp.gov.ph/downloads/Publications/2018/FIP_1Sem2018.pdf 6 http://www.bsp.gov.ph/downloads/Publications/2019/microfinance_2019.pdf
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Revitalizing Shared Resources
“It has been said that this is the last generation that Accelerate Network Rollout can actually help save the planet. STRATEGIC INTENT Companies should make a very visible move towards environmental conservation. Not Environmental Responsibility only companies but Material Sourcing and Efficiency also this generation MATERIAL TOPIC of employees should be the ones to initiate all this and make that important move for the future Climate Risk generations.” Financial Risk
Information and Communications Technology Risk Ernest L. Cu President and Chief Executive RISKS ADDRESSED Business Disruption Risk Officer (CEO) Digital Transformation Risk
Responsible Consumption and Production Climate Action Life Below Water
SDGs IN FOCUS
Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote UNGC PRINCIPLES greater environmental responsibility; Principle 9: encourage the development and diffusion of environmentally friendly technologies.
152 Fueling the power of connectedness Globe’s workforce commitment to Green product offerings e.g. E Understanding drive environmental sims, paperless billing conservation Interlinkages Engaging customers in and Synergies Initiatives undertaken environmental stewardship by Globe workforce and for Social & through volunteerism outcomes Relationship Paper saved through Globe banned the single- Capital paperless billing use plastics within its headquarters at The Globe Number of customers Tower (TGT) participating in Globe’s Investments in renewable environmental conservation energy solutions and energy Continue implementing activities efficient equipment environmental conservation programs 655 tons of paper saved Outcomes on the investments from 40.9M customers with in environmental conservation paperless billing including energy efficiency, green product offering 1.7 million GCash users’ partner with Globe in its 1,083 tCO2e of carbon efforts on tree plantation emission reduction noted in the period October 26, 2019 - Retain momentum and December 25, 2019 in the GTIT HUMAN increase customer and Plaza, Cebu City, Cebu facility community engagement in environmental conservation Make investments towards Globe’s aspiration developing 5 GW of renewables capacity and generating at least FINANCIAL 50% of energy output from SOCIAL & renewables by 2025 RELATIONSHIP
NATURAL Business Continuity Energy efficient equipment Management Initiatives for greening cell Business Continuity sites (ISO 22301:2012) certification Globe deployed green solutions targeting energy efficiency in 3,017 cell sites Integrated Management MANUFACTURED System (IMS) certification on Environmental INTELLECTUAL Integrate environmentally- Mangement (ISO sound infrastructure and 14001;2015) strategies towards achieving Occupational Health and the target of reducing its Safety (ISO 45001:2018), carbon footprint by 30%, and Business Continuity based on the 2017 levels, by (ISO 22301:2012) 2030
Retain certification
Initiatives Key 2019 2020 Defining Performance Performance Priorities Interlinkages Indicators
153 Globe Telecom 2019 Integrated Report Natural Capital
REVITALIZING SHARED RESOURCES and industries as a whole to use the power of digitization and connectivity The global landscape is experiencing to reduce carbon footprint. While environmental risks of unprecedented Globe delivers value towards natural scale and magnitude. The 2020 global capital through its core business, the In 2019, Globe received risk report highlighted environmental company is cognizant of the impact enterprise wide Integrated risks as one of the top 5 risks in its operations and expansion activities Management System (IMS) terms of likelihood of occurrence. have on nature. The company strives certification on Environmental With regard to the Philippines, the to assure its stakeholders that they Management (ISO 14001;2015) country was found to be one of the are partnering with a responsible most vulnerable to climate hazards corporate citizen working relentlessly Occupational Health and Safety in the 2019 INFORM Global risk towards maximizing the value it (ISO 45001:2018), and Business Index1. While these mounting risks generates for shared resources. Globe Continuity (ISO 22301:2012) have signaled a sense of urgency also leverages its vast sphere of for all corporate players to actively influence encompassing employees, build operational resilience, it also customers, suppliers and communities provides an immense opportunity for to galvanize action on the targets set corporations by mitigating these risks for environmental conservation. and tap into new ways of doing things for a sustainable future. GLOBE’S COMMITMENT TOWARDS ENVIRONMENTAL STEWARDSHIP A study conducted by GSMA and Carbon Trust found that in 2018, the Globe’s environmental stewardship mobile industry helped mitigate GHG is governed by its Environmental emissions equivalent to 2,135 million Sustainability Policy which defines 2 tonnes carbon dioxide (CO2e) . The the contours of the company’s emissions savings were almost ten environmental sustainability agenda. times greater than the global carbon This policy is periodically reviewed to footprint of the mobile industry itself. ensure alignment to current global Globe recognizes this opportunity and national environmental best and is dedicated to leverage its core practices. Globe designs various business proposition of fueling the initiatives to actualize the vision set power of connectivity to enhance forth in the policy. The company lays the digital capabilities of the utmost importance to compliance Philippine economy. Through its core with environmental laws and business, the company envisions the regulations. facilitation of individual customers
Rizal Mayor Trina Andres supported the Project 1 Phone for responsible e-waste recovery and recycling in the entire municipality of Rizal, Nueva Ecija.
154 Fueling the power of connectedness Environmental non-compliances the Philippines’s vision towards related to administrative matters decarbonizing the economy by Climate Change Risks (no permits or no submitted 70% by 2030. This is relative to its reports) are addressed accordingly. business as usual scenario of 2000- Globe has identified and broadly While the company is dedicated to 2030 as expressed in the nationally classified climate linked risks into ensuring environmental regulatory determined contribution. In this two (2) categories: compliance, Globe embraces a effort, the company has devised an beyond compliance approach intricately laid out climate strategy 1. Physical risks - these are the and envisions making substantial that assessed various facets of its risks that arise from the physical contributions to drive progress on operations to identify climate change impacts of climate change the commitments made under the mitigation and adaptation potential. including: Paris Agreement and the UN SDGs. •• Service disruption as a result To ensure that the environmental The key aspects of the strategy of destruction of network and management system at all Globe include: transmission infrastructure operational sites are continuously •• Impact on network evolving with the vision of redefining Climate change adaptation: Globe infrastructure due to increase benchmarks, the company embarked has been evaluating the potential in average temperature (heat on a journey of receiving the impact of climate change on its wave linked risk) Integrated Management System operations since 2014. The company •• Supply chain disruptions (IMS) certification. has identified climate risks such as extreme weather events (stronger 2. Transitional risks - these Globe conforms with global typhoons, floods and drought are the risks that arise from guidelines and standards to step up among others). To enhance the new national/global policy and environmental data management climate readiness of the company, regulatory directives rolled out and define the company’s Globe has reviewed and updated its to accelerate corporate action on environmental footprint reduction Business Continuity Plans to include climate change. roadmap. The company has aligned response procedures to extreme its data management system to weather events. For instance, to The company has incorporated the recommendations made in the ensure readiness in cases of drought these climate linked risks into its GRI standards and SASB standards. and water shortage, the company risks and strategy discussion. The climate strategy of Globe has identified potential partners for has been influenced by the TCFD water supply for buildings. Globe has recommendations. Given Globe’s also employed engineering controls commitment to the UN SDGs and such as installation of lightning UNGC Principles, the company takes arrestors. This contributes to the on targets to accelerate success on effort in enhancing the resilience six (6) environment-linked SDGs. of infrastructure assets to extreme Globe has also committed to disclose weather events. its impact on the environment through the CDP (Carbon Disclosure Climate change Mitigation: Globe Project) to its stakeholders. has adopted a multi-pronged strategy to effectively contribute to GLOBE’S CLIMATE STRATEGY global climate change mitigation efforts through carbon emission Globe has designed a dedicated management. This focuses on climate strategy enabling the both, reducing the amount of GHG company to remain resilient to emissions and offsetting emissions climate risks while capitalizing on by way of tree planting and opportunities presented by the reforestation. transition to a low carbon future. The company has broadly categorized CARBON MANAGEMENT identified climate risks under physical risks and transitional risks. Under the umbrella of carbon emission management, Globe rolled Globe is dedicated towards making out numerous initiatives aimed at meaningful contributions to anchor reducing the company’s greenhouse
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gas (GHG) emissions. Globe employs a programmatic approach to emission management, encompassing the Monitoring energy following focus areas: monitoring consumption and energy consumption and emission emissions (scope 1 & scope 2) data, identifying energy and emission hotspots and finally tailoring and implementing emission management Identification Program programs. These programs fall under of energy and implementation four (4) key categories mentioned in emission hotspots the infographic provided:
Enhancing Operational Energy Designing interventions to Efficiency and Conservation reduce energy One of the key aspects of Globe’s consumption and targeting emission approach towards enhancing energy abatement efficiency is limiting the use of energy. Globe has setup controls such as manual flushers, motion activated lights and cooling system set point Case Studies on Green Solutions adjustment towards this effort. • Sustainable Alternatives using The other key aspect is installation Renewable Energy and other of energy efficient equipment and innovations devising measures to enhance the Globe Corporate Offices energy efficiency of cell sites through Power Usage Effectiveness (PUE) (TGT BGC, TGTIT Plaza its “Green Solutions” initiative. The Improvement Initiatives: Cebu and Bayantel office) Globe headquarters have energy now have Gold Standard - efficient devices to control its air INSTALLATION OF INTELLIGENT KW-HR METERS Verified Emission Reduction conditioning system during non-office through its days (e.g. holidays). • captures electric consumption of (VER) certificates panel boards without meter business partner, AC Energy. To educate Globe Employees on the importance of energy efficiency, KW-HR REDUCTION PROGRAM the company held The Globe Power • focuses on zero-cost activities Summit where industry experts like sealing gaps on cold aisle from the Energy and Power sector containment, increasing set points discussed the following topics: for cooling systems and scheduled utilization of common area Energy and Power Landscape lightings among others, resulting • Overview of the Energy Efficiency to total kw-hr consumption and Conservation Act reduction by almost 2% year over • The country’s current state and year at 130,485 kw-hr near future trend of the Power Sector PUE Improvement • ensures energy-saving initiatives Energy and Power Megatrends for data centers • Philippines’ Renewable Energy landscape Data Center Infrastructure • Rise of Innovation and its Management correlation to energy and power • improves building operations’ usage agility and enhances customer experience through process Energy Efficiency overview efficiency, automation, • Electricity Distribution Journey centralization and proactive • Energy Efficiency Tips monitoring of Globe’s internal data center facilities
156 Fueling the power of connectedness Verified Emission Reduction Certificates issued by AC Energy to Globe Telecom
CARBON FACILITY DURATION EQUIVALENT TO REDUCTION
The Globe Tower, 1,579 MWh x Emissions of 4,038,983 October 26, 2019 - Taguig City, Metro 0.64075 GEF = kilometers driven by a December 25, 2019 Manila 1,011 tCO2e gasoline-fueled car
1,691 MWh x Emissions of 4,326,625 GTIT Plaza, Cebu October 26, 2019 - 0.64075 GEF = kilometers driven by a City, Cebu December 25, 2019 1,083 tCO2e gasoline-fueled car
1,273 MWh x Emissions of 3,255,955 Bayantel, Quezon July 26, 2019 - 0.64075 GEF = kilometers driven by a City, Metro Manila December 25, 2019 815 tCO e 2 gasoline-fueled car
ENVIRONMENTAL SUSTAINABILITY POLICY
Globe sees a wonderful Philippines compliance and apply best • Influence stakeholders to move by reducing our impact to the practices and global voluntary towards a more sustainable environment and supporting a standards on environmental and consumption and production; low carbon future to address social responsibility; climate change. While we operate • Support partners which share in the Philippines, our employees, • Consciously improve on resource the same environmental values customers, vendor partners consumption efficiency and to ensure the conservation and and other stakeholders have a minimize waste generation restoration of vital ecosystems; presence worldwide. We have through prevention, reduction, the responsibility to demonstrate recycling and reuse within our • Review and improve on high standards of environmental operation and through the life environmental management management and stewardship in cycle of products; system to ensure that the order to reduce our impact and commitments of this policy is that of our stakeholders. • Manage our activities to delivered; minimize pollution and impacts We commit to: on air, water, land, flora, fauna • Collaborate with government, and cultural and heritage values; businesses, international • Integrate climate change institutions, special interest measures into our strategies and • Encourage and train our groups, portfolio companies and planning, set targets and report employees and business other organizations to innovate environmental impacts to our partners to help reduce products that will address stakeholders; environmental impact through climate change. mutual • Comply with all local environmental laws, relevant • understanding of this policy standards and practices to and implementation standards our business. Where possible, among our value chain; we move beyond regular
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In Globe’s endeavor to decarbonize its company aspires to develop 5 GW of operations and enhance clean energy renewables capacity and generate procurement, the company shifted at least 50% of energy output from to buying power directly from power renewables by 2025. plants producing renewable energy in 2019. The company has also engaged These buildings are gearing up to partners for potential implementation be carbon neutral via purchase of of renewable energy solutions like Renewable Energy (RE). solar panels and fuel cells within The VER Certificates may be found on its operations. These efforts will pages 177-182 of this report. culminate in shifting Globe’s energy reliance to renewable sources, 2. Greening the Towers thereby decarbonizing its operations. In 2019, Globe deployed green solutions targeting energy efficiency AC Energy, the energy platform in cell sites. Some key technologies of Ayala Corporation, is one of the and solutions that have been fastest growing energy companies implemented include: with over US$1 billion of invested and committed equity in renewable •• Fuel Cell Systems: This system and thermal energy in the Philippines relies on methanol and DI water and around the region. The blend as fuel. These systems have
TABLE: CARBON MANAGEMENT PERFORMANCE BAROMETER1
YEAR 2017 2018 2019
Electricity Consumption (In kWh) Scope / Boundaries: Corporate Offices, Data Centers, Cell Sites, Stores, Warehouse, Operations (owned and leased facilities)
Electricity (In kWh) 482,360,321 484,421,707.75 602,550,201.76
Fuel Consumption from generators (In liters) Scope / Boundaries: Corporate Offices, Data Centers, Cell Sites
Diesel 8,579,858.93 8,050,514.74 9,134,663.56
Gasoline 58,971.73 89,442.16 70,721.59
Fuel Consumption from fleet (In liters) Scope / Boundaries: Corporate Offices, Data Centers, Cell Sites
Diesel 1,342,346.70 1,321,415.72 1,729,880.31
Gasoline 3,597,998.87 3,637,291.28 2,973,395.71
Overall Energy Consumption (in kWh) Overall energy consumed by cellular 1,361,094.85 1,442,603.02 1,679,055.94 network
Overall energy consumed by others (Corp 375,402.31 301,315.13 490,124.79 Offices, Data Centers, Stores)
Net energy consumption (in GJ) 1,736,497.16 1,743,918.15 2,169,180.73
2 Summary of GHG Emissions in tCO2 (Scope 1 and scope 2) Scope 1 38,531.75* 36,167.20 36,574.16
Scope 2 271,458.81** 352,389.63 435,073.80
*2017 GHG Emissions Breakdown for Scope 1 **Emission factor reference: National Grid Emission Factor, Department of Energy
158 Fueling the power of connectedness been used to replace gensets •• Flexible Work Arrangement: The which use diesel fuel. The fuel cell Flexible work arrangement enables system relies on cleaner fuel (with employees to work remotely from lower emissions) and is easier to their homes thereby reducing the maintain with lower maintenance number of trips made by them in a cost compared to diesel motors. week to their office. •• Direct Current (DC)-Hybrid •• Project Loop: This program Generator: deployment of these encourages employees to adopt hybrid generators can result in carpooling through web based up to 60% reduction in usage of mobile applications called Loop diesel fuel, thereby resulting in and Pasabay Pilo. Loop enables lower reliance on diesel and lesser employees to reserve seats on requirement for maintenance. the company’s shuttle services •• Free Cooling System: These whereas Pasabay Pilo enables systems provide energy efficient employees to plan carpooling. heat removal solutions for the cell sites. 4. Offsetting Carbon Emissions •• Lithium-Ion Batteries: These Another way to reduce its carbon batteries have been used as footprint is by offsetting. Globe replacement to Lead-Acid Batteries partners with the Department of with faster charging time and Natural Resources (DENR) and other longer life. non-profit organizations to do tree planting and reforestation programs. Globe has decommissioned legacy Aside from using its volunteer machines to ensure only energy program to do these activities, efficient systems are in place for its the company also encourages its operations. Finally, in view of the customers to join via donations to key Philippine Energy Efficiency and partners doing the same endeavors. Conservation Law (RA 11285), the company has embarked on a project Some novel interventions organized GCash launched the ‘GCash Forest’ to ensure compliance with this law. by Globe encouraging customers to in partnership with DENR, WWF, and BIOFIN to increase tree plantation in the The company is also preparing to participate in tree planting include: Philippines (L-R) Mynt Chief Marketing gain ISO 50001 Certification for an and Head of Marketing and App Product energy management system which •• GCash Forest: A “green” feature Chris Manguera, World Wide Fund for Nature (WWF) Philippines President will ensure a structured management was introduced on the GCash app and Chief Executive Officer Joel Palma, system in place to reduce energy aimed at tapping the interest for Mynt President and Chief Executive Officer Anthony Thomas, United Nations consumption. Aligned to the environmental causes among its Development Programme Resident company’s carbon emission reduction users. GCash Forest allows users to Representative to the Philippines Titon targets, Globe is continuously seeking collect green energy earned from Mitra, and GCash Vice President for Corporate Communications Reyner innovative means and adopting best cashless transactions and enables Villaseñor practices to enhance energy and resource efficiency.
3. Managing Direct Emissions Globe rolled out various initiatives encouraging employees to limit the use of motorized vehicles for business commute. Some of the key initiatives are:
•• Telecommuting: Employees have been encouraged to use platforms such as Zoom and Google Hangouts for conducting and attending business meetings
159 Globe Telecom 2019 Integrated Report Natural Capital
them to plant virtual trees that will campaign entitled WASSUP (‘Wag have real life counterparts. As of Sa Single Use Plastic) which aims at end-December 2019, total GCash educating employees on the impacts Forest users were at 1.7 million. of plastics to the environment. 1.7 million •• Globe Rewards & Hineleban Globe has also tailored programs GCash Forest users Foundation: This program is and products that make it easier based on a partnership forged by for its customers to choose greener Globe with Hineleban Foundation, options. The company rolled out its which has been widely recognized e-billing scheme in 2015 and has been for its innovative reforestation successful ever since in encouraging methodology. By enabling its customers to opt for this greener customers to donate Globe choice. Globe also provides green Globe customers donated Rewards points towards restoring service offerings such as E sims which almost 2M through Globe the Philipines’ primary rainforest enable Globe customers to move Rewards App to Plant 16,000 cover to Hineleban Foundation, away from using plastic physical SIMs. Trees in Bukidnon in just 18 days Globe tapped on its massive customer base to increase To empower customers to easily awareness about the state of the recycle E- waste, Globe designed an Philippine Primary Rainforests. electronic recycling program called The program design has been Project 1 Phone that focused on built such that the donation of 100 recovering and recycling electronic reward points leads to the planting waste, specifically mobile phones and of one (1) tree. Customers can also portable devices such as tablets. name the tree they are planting through the Hineleban website Safe disposal of waste is one of link sent via Globe Rewards app. Globe’s key thrust areas under waste The program will be operational management. Globe has partnered until year 20213. On a similar note, with accredited DENR Treatment, Globe’s partnership with The Mead Storage, and Disposal (TSD) facilities Foundation, in collaboration with and transporters nationwide for lead the local community, started at the recycling, battery acid neutralization, latter part of 2019. The partnership re-refinement of used oil and physico- focuses on the restoration of an chemical treatment of grease wastes. initial 2.5 hectares of denuded This ensures effective disposal and forests in Iba, Zambales but has recycling of hazardous waste. yet to be integrated to the Rewards platform. To ensure that generated hazardous wastes of Globe are disposed of WASTE MANAGEMENT properly, the company partnered with accredited DENR Treatment, Disposal, Globe’s approach to waste and Storage (TSD) Facilities and management focuses on waste Transporters nationwide. For used minimization at source, effective lead acid batteries, it has partnered waste segregation and safe disposal with Oriental and Motolite Marketing of waste. In the company’s efforts Corporation (OMMC) and EnviroCare towards minimization of waste as its primary transporters nationwide generation throughout its value and Evergreen Environmental chain, Globe has introduced solutions Resources, Inc. (EERI) as its TSD. EERI that reduce usage of paper and has a closed-loop system to eliminate plastic which consequently reduce waste generation. They utilize a green waste generation. The company slag technology for lead recycling, banned single-use plastics within its crushing and recovery of plastic headquarters at The Globe Tower. materials for plastic recycling as well To support this initiative, Globe as acid neutralization for the battery embarked on an employee education acid. All water used in the treatment
160 Fueling the power of connectedness process is sent to their in-house Environmental Management wastewater treatment facility. For Solutions, Inc. (CEMSI) for proper used oil, the company partnered with treatment and disposal. The grease Genetron International Marketing waste undergoes physico-chemical through the Bantay Langis Project treatment prior to encapsulation and of ABS-CBN Lingkod Kapamilya disposal in their very own double- Foundation which has nationwide lined secure landfill located within coverage. Genetron collects used oil their facility premises. and re-refines it to re-incorporate the treated product into the economy. For electronic wastes (e-wastes), Water used in the treatment process it partnered with several TSDs is then treated through their in-house that employ the same method wastewater treatment facility. for recycling. These are, Total Environment Solutions - Asset For Busted Fluorescent Lamps Material Management Philippines (BFL), Globe partnered with (TES-AMM) and Maritrans Recycler, Maritrans Recycler, Inc. for Visayas Inc. E-wastes are disassembled and Mindanao and Cleanway or shredded to recover plastic Environmental Management materials, electronic components, Solutions, Inc. (CEMSI) for Luzon as and precious metals for recycling. The unrecyclable components would then its transporters and treaters. BFL be decontaminated, encapsulated contains mercury vapor hazardous to and sent to a secured sanitary landfill human health. BFLs are treated using for final disposal. The company has bulb-crusher machines which contain recycled over 343,000 kilograms of the mercury vapor through a vacuum e-waste and diverted 12.05% waste and separates the glass fragments for from Landfill. recycling. Globe also participates and For grease wastes, the company spearheads various clean up drives One of the areas in Bukidnon covered by Hineleban’s partnered with Cleanway to contribute to the country’s waste rainforestation program
161 Globe Telecom 2019 Integrated Report Natural Capital
management efforts. The company engages its employees, customers KEY HIGHLIGHTS AND OUTCOMES and other stakeholders in this endeavour by designing innovative •• Globe implemented a policy on the avoidance of single-use plastics incentivization schemes. For instance, within its headquarters at The Globe Tower (TGT) customers were encouraged to join a •• 655 tons of paper saved from 40.9 million customers with e-billing coastal clean up drive by incentivizing •• Globe reduced 759.6 tons of CO2 through recycling and properly participation through earning 100 disposing of 271,299.31 kilograms of waste materials under its Project reward points. The drive was led by 1 Phone the International Coastal Clean-Up •• Over 343,000 kilograms of e-waste recycled Philippines (ICC Philippines) and the Department of Environment and Natural Resources (DENR) on the occasion of International Coastal WASTE MANAGEMENT PERFORMANCE BAROMETER Clean-Up (ICC) Day. This focused on raising awareness towards Hazardous waste data the growing marine debris issue Quantity generated (in kilograms) in the Philippines. Similarly, over 300 employees from Globe stores Batteries 448,269.00 participated in Boracay Sustainability Electronic waste 343,273.26 Week’s Beach Clean-Up Drive. Used oil 1,340.00 MARINE BIODIVERSITY Grease waste 898.00 CONSERVATION PROGRAM BFLs 1,150.70 The Philippines is one of the 25 Contaminated waste 230.00 biodiversity hotspots in the world and is often referred to as the “center of Non-Hazardous waste data the center of marine biodiversity”. Quantity generated (in kilograms) However, at the same time, it is also labeled as the third largest Recyclable 17,973.55 polluter of plastic into the ocean. Residual 153,579.02 Globe is dedicated to contributing to the preservation of the invaluable Recyclable Waste refer to any waste material that biodiversity of the Philippines through plastic products into the coastal are retrieved from the waste stream and free from contamination that may still be converted into awareness building and social communities. suitable beneficial use or for other purposes (e.g. innovation. It spearheaded a program paper, corrugated cardboard, tin cans, aluminum, glass, plastics). focusing on marine biodiversity Capacity-building for key conservation in partnership with stakeholders Residual Waste refer to waste materials that are neither recyclable nor compostable. a non-profit and non-government Various awareness building organization, Save Philippines Seas campaigns were conducted focusing through the entity Globe myBusiness on the value of marine biodiversity which caters to MSMEs (micro, small and sustainable business practices. and medium enterprises). In 2019, five workshops were undertaken Stakeholders included local business including capacity building and owners, LGUs, social enterprises and underwater geospatial 3D mapping other community influencers. One for critical marine habitats. The of the capacity building programs target coastal communities were conducted in Siargao Island saw strategically selected based on the the participation of 33 business Department of Tourism’s priority owners, representatives from the areas, which are also more vulnerable Municipal Environment and Natural to environmental degradation due Resources Office (MENRO) among to heightened business activities other stakeholders in a 2-day marine concomitant foot traffic and the biodiversity workshop. During transport and introduction of various the course of this workshop, best
162 Fueling the power of connectedness practices on sustainability and TARGET AND METRICS 2020 OUTLOOK biodiversity conservation were discussed4. Globe has committed to reduce its In addition, by joining the Net Zero carbon footprint by 30% - based on GSMA-led initiative, the company Underwater mapping the 2017 levels - by 2030; leading to aims to contribute to the end goal Globe partnered with Antipara carbon-neutrality by 2050. of achieving net zero greenhouse Exploration Inc., an underwater gas (GHG) emissions by 2050, in mapping and analytics company that The key metrics used to track alignment with the Paris Agreement specializes in geospatial mapping and performance on climate change in 2016.5 assessment. It scans coastal areas mitigation efforts includes natural using an underwater towed platform, capital accounting with a focus on: sonar and camera. Mosaic images and sonar data are captured and analyzed • Energy consumption to identify important marine sites • Energy mix (incorporating and critical habitats along the coasts. Sustainable Energy Procurement) Derived data also help determine • Emissions (Scope 1 and 2) coral reef health which can aid LGUs • Contribution to reforestation and local businesses in developing long term plans for coastal rehabilitation and marine biodiversity conservation programs.
In 2019, five coastal communities and major tourist destinations were targeted through this program with Secret Garden, Fish Sanctuary and Naked Island in General Luna, Siargao as the first areas for the pilot scanning. The rest of the selected coastal communities are still in Siargao business owners attended the Globe myBusiness awareness queue. campaign on marine biodiversity conservation in General Luna, Siargao Island
KEY HIGHLIGHTS AND OUTCOMES
Workshops were conducted in the following coastal areas:
• Puerto Princesa, Palawan • General Luna, Siargao, Surigao del Norte • Panglao, Bohol • Tagbilaran, Bohol Globe Telecom held the Sustainable Tourism Week in Siargao Island • El Nido, Palawan as part of its partnership with the Department of Tourism (DOT) (L-R) Bernie Llamzon, Channel Management Group EVP; Alberto de Larrazabal, Chief Commercial Officer; Ernest Cu, President and CEO; Mayor Yayang Rusillon, General Luna Mayor; Captain Lito Saavedra, Catangnan Barangay Captain; Derrick Heng, myBusiness Sr. Advisor; Peter Maquera, Business SVP; and Peejay Gorgonio, General Luna Administrative Officer
1 http://visionofhumanity.org/app/uploads/2019/06/GPI-2019-web003.pdf 2 https://www.globe.com.ph/about-us/newsroom/sustainability/mobile-tech-reduce-carbon-emissions-climate-change.html 3 https://www.globe.com.ph/about-us/newsroom/sustainability/restore-primary-rainforests-globe-rewards.html 4 https://ani.seafdec.org.ph/handle/20.500.12174/4787?show=full https://www.globe.com.ph/about-us/newsroom/business/globe-mybusiness-leads-awareness-campaign.html 5 https://www.globe.com.ph/about-us/newsroom/sustainability/globe-50-mobile-firms-disclose-climate-impacts.html
163 Globe Telecom 2019 Integrated Report 164 Fueling the power of connectedness Statutory Reports
165 Globe Telecom 2019 Integrated Report 166 Fueling the power of connectedness 167 Globe Telecom 2019 Integrated Report 168 Fueling the power of connectedness 169 Globe Telecom 2019 Integrated Report 170 Fueling the power of connectedness 171 Globe Telecom 2019 Integrated Report 172 Fueling the power of connectedness 173 Globe Telecom 2019 Integrated Report 174 Fueling the power of connectedness 175 Globe Telecom 2019 Integrated Report 176 Fueling the power of connectedness 177 Globe Telecom 2019 Integrated Report 178 Fueling the power of connectedness 179 Globe Telecom 2019 Integrated Report 180 Fueling the power of connectedness 181 Globe Telecom 2019 Integrated Report 182 Fueling the power of connectedness 183 Globe Telecom 2019 Integrated Report 184 Fueling the power of connectedness 185 Globe Telecom 2019 Integrated Report 186 Fueling the power of connectedness 187 Globe Telecom 2019 Integrated Report 188 Fueling the power of connectedness 189 Globe Telecom 2019 Integrated Report 190 Fueling the power of connectedness 191 Globe Telecom 2019 Integrated Report 192 Fueling the power of connectedness 193 Globe Telecom 2019 Integrated Report 194 Fueling the power of connectedness 195 Globe Telecom 2019 Integrated Report 196 Fueling the power of connectedness 197 Globe Telecom 2019 Integrated Report 198 Fueling the power of connectedness 199 Globe Telecom 2019 Integrated Report 200 Fueling the power of connectedness Glossary
5G Fifth Generation CO2 Carbon Dioxide AC2E Accelerated Cloud Cadetship Enablement COBIT Control Objectives for Information and related Technology ACE Accountability, Compliance, and Ethics CoC Code of Conduct ACES Asia Corporate Excellence & Sustainability COLT Cellsite-on-a-Light-Truck ACGS ASEAN Corporate Governance Scorecard CORE Collective Organization for Real AHI Adspark Holdings, Inc. Engagement AI Adspark Inc. COSO Commission of Sponsoring Organization of AI Artificial Intelligence the Treadway Commission Framework AIDFI Alternative Indigenous Development COW Cellsite-on-Wheels Foundation CPADAO Cebu Provincial Anti-Drug Abuse Office APE Annual Physical Exam CRE Chief Risk Executive AOI Articles of Incorporation CRO Chief Risk Officer ARPT Audit and Related Party Transactions CSP Communications Services Provider ARPU Average Revenue Per Unit CSO Chief Strategy Officer ASM Annual Stockholders’ Meeting CSO - Chief Sustainability Officer ASOC Advanced Security Operations Center Sustainability ASTICOM Asticom Technology, Inc. CSR Customer Social Responsibility AVIA Asia Video Industry Association CTIO Chief Technology Information Officer AWS Amazon Web Services CWT Creditable Withholding Tax BB Broadband CX Customer Experience BB ART Broadband Agile Release Train DC Direct Current BCM Business Continuity Management DENR Department of Natural Resources BFL Busted Fluorescent Lamps DepEd Department of Education BGC Bonifacio Global City DICT Department of Information and Communications Technology BIOFIN Biodiversity Finance Initiative DILG Department of the Interior and Local BOSH Basic Occupational Safety and Health Government BRAD Basic Request for Admin and Delivery DIS Definitive Information Sheet / SEC Form BROC Board Risk Oversight Committee 20-IS BTI Bayan Telecommunications Inc. DIY Do-It-Yourself C2G Coach2Grow DPO Data Protection Officer CA Continuous Auditing DOT Department of Tourism CAE Chief Audit Executive DRP Disaster Recovery Program CAP Coalition Against Piracy DSP Digital Service Provider CAPEX Capital Expenditures DTP Digital Thumbprint Program CBA Collective Bargaining Agreement EBIT Earnings Before Interest, Property and Equipment-related Gains and Losses and CBU Collective Bargaining Unit Income Taxes CCEO Chief Customer Experience Officer EBITDA Earnings Before Interests, Taxes, CCO Chief Commercial Officer Depreciation and Amortization CDP Carbon Disclosure Project ECPAY Electronic Commerce Payments, Inc. CEMSI Cleanway Environmental Management ECWT electronic Creditable Withholding Tax Solutions, Inc. ED Executive Director CEO Chief Executive Officer EERI Evergreen Environmental Resources, Inc. CFO Chief Financial Officer ERM Enterprise Risk Management CG Corporate Governance ERMD Enterprise Risk Management Department CGPE Channel Governance and People Excellence ERP Enterprise Resource Planning CHRO Chief Human Resource Officer ESC Esports Center CIPM Certified Information Privacy Manager
201 Globe Telecom 2019 Integrated Report Glossary
ESG Environmental, Social and Governance ISDP Information Security and Data Privacy E-waste Electronic Waste ISG Information Systems Group FINEX Financial Executives of the Philippines ISO International Organization for Standardization FOPM First Oceanic Property Management Inc. ISR International Simple Resale FOREX Foreign Exchange IT Information Technology FPSI Flipside Publishing Services, Inc ITIL Information Technology Infrastructure FWA Flexible Work Arrangement Library FY Financial Year KVI Kickstart Ventures, Inc GAH Globe at Home kWh Kilowatt-hour Gbps Gigabits per Second LCM Loss Control Management GCVHI Globe Capital Venture Holdings Inc LED Light Emitting Diodes GEF Globe Environment Facility LEED Leadership in Energy and Environmental GEN3 Globe Generation Design GFI Globe Fintech Innovations LGU Local Government Unit GFM Global Future Maker LTE Long Term Evolution GFS Global Filipino School Mbps Megabits Per Second GIEE Globetel Internacional European España, MCG Manual of Corporate Governance S.L. MHz Megahertz GHG Greenhouse Gas MIMO Multiple In, Multiple Out GOAT Generators-on-a-Truck MNP Mobile Number Portability GMI Globe Mobilé Italy S.r.l. MNSP Mobile Number Portability Service Provider GRI Global Reporting Initiative MSCI Morgan Stanley Capital International GSMA GSM Association MSME Micro, Small and Medium Enterprise GT Globe Telecom MwH Megawatt hour GTEU Globetel European Limited NA/DP Navarro Amper & Co./Deloitte Philippines GTHK Globe Telecom HK Limited NDRMMC National Disaster Risk Reduction and GTI Global Telehealth, Inc. Management Council GTIC GTI Corporation NED Non-Executive Director GTSG Globetel Singapore Pte. Ltd NGO Non-Governmental Organization GU Globe University NIAT Net Income After Tax GWeN Globe Whistleblower Network Facility NIB Network-in-a-Box Portal NIST National Institute of Standards and HR Human Resource Technology HRIS Human Resource Information System NLI NDTN Land, Inc. i-ACGR Integrated Annual Corporate Governance NPC National Privacy Commission Report NPS Net Promoter Score IA Internal Audit NSDCR National Summit on Digital Citizenship and IAPP International Association of Privacy Responsibility Professionals NSED National Simultaneous Earthquake Drills ICC International Coastal Clean-Up NTC National Telecommunications Commission ICD Institute of Corporate Directors OECD Organisation for Economic Cooperation and ICT Information and Communications Development Technology OHS Occupational Health and Safety ID Independent Director OMMC Oriental and Motolite Marketing IIA Institute of Internal Auditors Corporation IIRC International Integrated Reporting Council OPE Out-of-Pocket Expenses IMS Integrated Management System OPEX Operating Expenses INNOVE Innove Communications, Inc OSHS Occupational Safety and Health Standards IoT Internet of Things OTT Over-the-Top Applications IPD Integrated Project Delivery OVP Overseas Volunteering Program
202 Fueling the power of connectedness P&L Profit and Loss SOCIOLYTICS Socialytics Inc. PAW Privacy Awareness Week SOCO Securing Our Customers Online PCC Philippine Competition Commission SEO Search Engine Optimization PCCI Philippine Chamber of Commerce and SQL Structured Query Language Industry SUP Single-Use Plastics PDEA Philippine Drug Enforcement Agency SROI Social Return on Investment PDEx Philippine Dealing System Holdings SSCM Sustainable Supply Chain Management PDRF Philippine Disaster Resiliency Foundation TAO TaoDharma Inc. PEX Process Excellence Network tCO2 Carbon Dioxide Measure PFRS Philippine Financial Reporting Standards tCO2e Tons of carbon dioxide equivalent PI Program Increment TCFD Task Force on Climate-related Financial PLC Publicly Listed Companies Disclosures PMBOK Project Management Body of Knowledge Telicphil Telecoms Infrastructure Corp. of the Philippines PSE Philippine Stock Exchange TES-AMM Total Environment Solutions – Asset PUE Power Usage Effectiveness Material Management Philippines QAIP Quality Assurance Improvement Program TGT The Globe Tower QAR Quality Assurance Review TM Touch Mobile QR Code Quick Response Code ToR Terms of Reference RCPI Radio Communications of the Philippines, TSD Treatment, Storage, and Disposal Inc. TGT The Globe Tower RM Risk Management UKGT UK Globetel Limited ROAM Risks, Opportunities, Assessment and Management UN United Nations ROE Return on Equity UN OCHA United Nations Office for the Coordination of Humanitarian Affairs ROI Return on Investment UNESCAP United Nations Economic and Social RPA Robotics Process Automation Commission for the Asia and the Pacific RPT Related Party Transactions UNESCO United Nations Educational, Scientific and S2G Save2Grow Cultural Organization SAFe Scaled Agile Framework UNGC UN Global Compact SASB Sustainability Accounting Standards Board UNSDGs UN Sustainable Development Goals SCOE Supplier Code of Ethics USD US Dollar SDA Simple, Digital, Agile VAS Value-Added Service SDG Sustainable Development Goal VCDC Victor Consunji Development Corporation SEAT Special Emergency Action Team VER Verified Emission Reduction SEC Securities and Exchange Commission VOIP Voice Over Internet Protocol SEED Secure, Engage, Empower and Delight the VR Virtual Reality Customer WASSUP Wag Sa Single Use Plastic Sky Internet Sky Internet, Incorporated WiFi Wireless Fidelity SMPC Semirara Mining and Power Corporation WWF World Wide Fund for Nature SME Small and Medium Enterprise YoY Year-on-Year SMS Short Message Service SOC Security Operations Center
A list of common terms and acronyms used in the telecommunications sector may be accessed here: https://www.globe.com.ph/about-us/investor-relations/glossary.html
203 Globe Telecom 2019 Integrated Report Subsidiaries Affiliate Corporate Information
Innove Communications, Inc. Yondu Head Office The Globe Tower-Cebu 7th Floor, Panorama Tower Globe Telecom, Inc. Samar Loop corner Panay Road 34th Street corner Lane A The Globe Tower Cebu Business Park Bonifacio Global City, Taguig City 32nd St. corner 7th Avenue 6000 Cebu City Website: http:// www.yondu.com/ Bonifacio Global City, Taguig Trunkline: (02) 7730-2000 G-Xchange, Inc. Website: www.globe.com.ph 32nd Floor, Trade and Financial Tower Shareholder Services Office of Corporate Secretary 32nd Street corner 7th Avenue 28th Floor, The Globe Tower Bonifacio Global City, Taguig For inquiries regarding dividend 32nd St. corner 7th Avenue Website: www.globe.com.ph/gcash payments, change of address, Bonifacio Global City, Taguig account status, and lost /damaged Email: corporatesecretary@globe. Kickstart Ventures, Inc. stock certificates, please contact com.ph 55 Paseo de Roxas Avenue our stock transfer agent: Makati City Bank of The Philippine Islands (BPI) Investor Relations Website: www.kickstart.ph Stock Transfer Office 10th Floor, The Globe Tower 16th Floor, BPI Building 32nd St. corner 7th Avenue Asticom Technology, Inc. Ayala Avenue corner Bonifacio Global City, Taguig 4th Floor, Globe Telecom Plaza 1 Paseo de Roxas Makati City Email: [email protected] Pioneer Street corner Madison Street Tel. (02) 8816-9067 / (02) 8816-9321 Mandaluyong City Fax. (02) 8845-5515 Corporate Communications 26th Floor, The Globe Tower 32nd St. corner 7th Avenue Globe Directory Bonifacio Global City, Taguig Email: [email protected] Mobile Landline
Talk2Globe 211 (02) 7 730-1000 Stock Trading Information Republika ng TM 808 (02) 7 730-1500 Globe Telecom is listed on the Platinum 188 (02) 7 730-1888 Philippine Stock Exchange. Sales (02) 7 730-1010 (02) 7 730-1010 Ticker Symbol: GLO
Globe myBusiness 1288 (02) 7 730-1288 Globe Business 2199 (02) 7 730-1999 AMAX 2629 1800-8-7398168 Roaming (02) 7 730-1212 (02) 7 730-1212 Retention and Loyalty 211 (02) 7 730-1000 GCash 2882 (02) 7 213-999
For further information regarding this Integrated Report, please contact: MARIA YOLANDA C. CRISANTO, APR Senior Vice President, Corporate Communications / Chief Sustainability Officer Email: [email protected]
204 Fueling the power of connectedness You may access and download this Integrated Report through this QR Code.
Meanwhile, Globe’s 2019 Audited Consolidated Financial Statements released and filed to relevant regulators on February 27, 2020, may be accessed from www.globe.com.ph.
For further information regarding this Integrated Report, please contact [email protected] or [email protected]. THE GLOBE TOWER 32nd Street corner 7th Avenue, Bonifacio Global City, Taguig City 1634, Philippines TEL (632) 7730 2000 www.globe.com.ph