COVID-19

Aboitiz 100

Features

Column

University of Experience

People & Culture

Power

SMA Joins AboitizPower Leaders On Visit to APRI MakBan And Tiwi

AboitizPower Recognized Anew As FTSE4Good Constituent

Infrastructure

Apo Agua Ramps Up: More Skilled Workers To Be Recruited

Established in 1995 in partnership with MCIAA, the 63-hectare PEZA-registered MEZ II in Lapulapu City highlights Cebu in the global export market. 

Land

Mactan Ecozone Locators Get Rent Reprieve From AboitizLand

Aboitiz Group Advisory to External Stakeholders regarding COVID-19

2019 Bankers’ Night

2019 Brigada Eskwela Cebu

Aboitiz Eyes

The enormous challenges faced by local governments (LGUs) in the fight against
COVID-19 include maximizing all available resources in order to sustain
initiatives to both protect and support their constituents. AboitizPower Oil
Business Units see it as a crucial part of their work in close coordination with
and assisting host localities through various projects. One way the company
takes action is by providing LGUs with much-needed funds through the Energy
Regulations 1-94 (ER 1-94) program.
ER 1-94 allows host communities to directly access funds generated from the
operations of AboitizPower facilities, which are intended for use in developing
local projects and activities. It is a policy under the Department of Energy
(DOE) Act of 1992 and Electric Power Industry Reform Act of 2001 (EPIRA) which
states that host communities will receive shares generated by power plants
operating in its area.

Therma Marine, Inc. (TMI) partners with the local government of Nasipit, Agusan
del Norte to distribute food packs, sacks of rice, and other prime commodities
for 760 households.Through the DOE Department Circular 2020-004-0008, the
remitted funds can now be utilized for initiatives to combat the effects of
COVID-19.

Both Therma Mobile (TMO) in Luzon and Therma Marine (TMI) in Mindanao have been
assisting local communities in their COVID-19 response and relief efforts funded
fully by the ER 1-94 program.

TMO, along with the Navotas Local Government, turned over medical supplies to
the workers of Brgy. North Bay Boulevard South and delivered additional relief
goods to 6,415 households within the same barangay and in Brgy. North Bay
Boulevard North. 

Meanwhile, the host LGUs of the TMI unit in Maco, Davao de Oro used their ER
1-94 funds to purchase and distribute food packs for 540 households in Brgy. San
Roque, which included rice, canned goods, noodles, and other prime commodities.
The funds were also utilized by the municipality to provide 20 units of
foot-operated hand-washing facilities.

The second TMI unit based in Nasipit, Agusan del Norte partnered with the Brgy.
Sta. Ana local government for the procurement and distribution of rice and food
packs for 760 households.

AboitizPower continues to support its host communities, not only by providing
assistance in the disbursement of ER 1-94 funds, but also by working closely
with its LGU partners in the implementation of COVID-19 response initiatives.
AboitizPower’s Oil Business Unit has several more ongoing projects in
partnership with host LGUs to further support fellow Filipinos affected by the
virus.

AboitizPower Oil BUs' ER 1-94 Supports LGU Projects

The Aboitiz Group has extended further assistance to Cebu’s frontliners in
public hospitals and quarantine facilities to support the city's response to
increasing cases of COVID-19.

Aboitiz has so far contributed around PHP25 million to various COVID-19-related
initiatives. These range from food packs distribution and meal assistance to
donation of protective personal equipment (PPE) and tents as well as financial
assistance to frontliners in several hospitals and quarantine facilities around
the city.

Through Aboitiz Foundation and Cebu-based business units led by Visayan
Electric, the Aboitiz Group provided some 1,500 frontline workers at Vicente
Sotto Memorial Medical Center (VSMMC) and Cebu City Quarantine Center (CCQC), as
well as nine other private hospitals with three daily meals for several weeks.

“A heartfelt thank you for this kind gesture. This will surely uplift the morale
of our staff in these trying times," said September Regis of UCMed, a private
hospital in Mandaue City.

The Aboitiz Group has also extended assistance to frontliners and patients in
Cebu City’s quarantine centers, ensuring their immediate needs are addressed.
Recently, AboitizPower Distribution Utilities Senior Vice President and Chief
Operating Officer Anton Mari G. Perdices led the turnover of 100,000 surgical
masks and over 10,000 coveralls to VSMMC and 200,000 surgical masks to the CCQC
and the New Normal Oasis for Adaptation and a Home (NOAH) Complex in Cebu City
in partnership with PT Bayan Resources.

Cebu City Vice Mayor Michael Rama, who received the donation at the NOAH
Complex, thanked the Aboitiz Group and PT Bayan Resources for their efforts in
helping Cebu City in its fight against the pandemic.

“We can fight COVID because we, the government and the private sector, are
working as one,” Vice Mayor Rama said.

Thousands of PPE kits were turned over to Vicente Sotto Memorial Medical Center
as part of the Aboitiz Group’s initiatives to assist Cebu’s frontliners as the
city continues its fight against COVID-19. The turnover was led by Aboitiz Power
Distribution Utilities Senior Vice President and Chief Operating Officer Anton
Mari G. Perdices (front row, 2nd from left)Perdices assured the local government
and the community that Aboitiz is a ‘partner’ in the fight against COVID-19.

> Visayan Electric and the Aboitiz Foundation continue to work tirelessly to
support the personnel at the frontline of the battle against COVID-19. We are
one with the government’s response efforts and we will continue to look for ways
to provide #PositiveEnergy and contribute to initiatives addressing the current
health crisis.

–Anton Perdices, SVP Distribution Utilities, AboitizPower; COO, Visayan Electric
The VSMMC is a Department of Health-accredited COVID-19 testing center and
caters to patients from Central Visayas.

Records as of July 28 showed that VSMMC’s average bed utilization was at 50% to
70% full capacity with 350 frontliners attending to the patients’ needs while
CCQC’s 200-bed capacity was at 30% utilization with 60 Covid-19 patients and 150
frontliners.

Truckloads of PPEs were turned over to Cebu’s hospitals and quarantine
facilities by the Aboitiz Group through Visayan Electric in support of the
city’s fight against COVID-19.> We really need these PPEs and we appreciate that
companies like you are ready to extend assistance when we need it the most.

–Dr. Gerardo Aquino, Director, Vicente Sotto Memorial Medical Center
The NOAH Complex and the CCQC were set up by the Cebu City government and
currently house COVID-19 patients who have mild to moderate symptoms. The tents
donated by the Aboitiz Group to NOAH Complex were made possible through the help
of the Philippine Disaster Resilience Foundation.

The Aboitiz Group continues to contribute to the country’s COVID-19 response
efforts. To date, the Aboitiz Group has contributed PHP2.2 billion for its
COVID-19 response efforts nationwide. This excludes various payments waived,
reduced, extended, or restructured to help customers cope with the impact of
COVID-19.

Aboitiz Group Ramps Up COVID-19 Response In Cebu

The Aboitiz Group is supporting the Asia Pacific Economic Cooperation (APEC)
Business Advisory Council Philippines’ (ABAC PH) recommendation to adopt a
digital transformation approach to address the short- and long-term economic
impact of the Coronavirus Disease 2019 (COVID-19).

> Digital technology has already disrupted businesses and jobs. Now, COVID-19 has
ushered in a ‘new normal’. “Online tools and digitally-enabled platforms should
be accessible to businesses and individuals to operate and work in a post-COVID
environment.

–Sabin M. Aboitiz, President & CEO, Aboitiz Group (ABAC member) 
ABAC PH  believes digital connectivity is critical in addressing the logistics
and competitiveness challenges of the Philippines.
“We need to fast track building the infrastructure to establish the digital
highways that would interconnect the Philippines’ 7,100 islands. This is
critical to stimulate our local industries and create the scale in order to
fully engage in international trade and be part of global value chains,” said
ABAC PH Chair Tomas Alcantara.

“We need to harness digital innovation to take advantage of our young and
talented population, and ensure a future-ready workforce,” he added.

ABAC PH stressed that government interventions should integrate digital
technologies to provide innovative solutions in facilitating ease of doing
business. This will also improve productivity and efficiency in support programs
such as financial inclusion and adaptive learning and training.

In a letter to Department of Trade and Industry Secretary Ramon Lopez, ABAC PH
called on the government to implement measures, including possible efforts with
Asean neighbors and key trade partners to ensure the free flow of goods and
services.

> [Digital integration] builds trust, fosters trade, promotes open markets, and
more specifically, facilitates the movement of people and helps secure a steady
supply of food, which is necessary as the region fights this pandemic. 

–Tomas Alcantara, Chairman, ABAC PH
With businesses restarting and economies reopening, ABAC PH urged for
public-private dialogue to discuss strategies and lessons that would best
benefit the Philippines in the short and long term.

Business executives in the region have called on APEC trade ministers to lead in
reforming the World Trade Organization (WTO) to ensure that trade remains
‘fit-for-purpose,’ especially in responding to the pandemic.

ABAC 2020 Chair Dato’ Rohana Tan Sri Mahmood of Malaysia said, “WTO rules must
also be updated for the digital age and support aspirations for sustainable and
inclusive growth.” This includes substantive outcomes on e-commerce and a
permanent moratorium on customs duties on electronic transmission.

The ABAC was created in 1995 by APEC leaders to provide advice on the
implementation of the Osaka Action Agenda. It currently serves as the voice of
the business sector, specifically providing information on business-related
issues or providing the business perspective on specific areas of cooperation.

Corporate Center

Aboitiz Echoes ABAC PH Call To ‘Go Digital’ In COVID-19 Economic Response

Aly Virrey

The laboratory services unit of Lima Water Corporation (LWC) was recently
accredited as an environmental testing laboratory of the Department of
Environment and Natural Resources (DENR), affirming LWC’s commitment to
outstanding water quality testing standards in its Batangas facility.

DENR and Integrated Chemists of the Philippines representatives led by DENR
Laboratory Inspection and Assessment Team Chairman Roger Evangelista (fourth
from right) with the LWC Team led by Head of Lab Bryan Viernes (second from
right) at the LWC office post-assessment on January 24, 2020LWC’s laboratory,
which monitors and tests the quality of water and wastewater in the LIMA
Technology Center (LTC), passed the stringent assessment of DENR conducted in
the first quarter of 2020. The accreditation was conferred to LWC on June 30,
2020 and is valid for three years.

> “DENR’s accreditation is a validation of LWC’s certified quality approach to
ensuring that the treated water produced by our facilities pass the country’s
strict environmental standards. We will continue to uphold this approach as we
expand our operations,” said LWC General Manager Hazele Manalo.
LWC’s top-grade laboratory aims to ensure that the water it provides meets
Philippine National Standards for Drinking Water, and that wastewater treatment
is fully compliant with environmental regulationsAside from demonstrating LWC’s
high standards on the quality and accuracy of the physico-chemical testing
results it generates, the accreditation also designates the laboratory as a
qualified and competent service provider. This will allow LWC to conduct
internal testing for regulatory reports and provide support services to LTC
locators for their own water discharge analysis requirements.

LWC, a wholly-owned subsidiary of Aboitiz InfraCapital, is the only water
services provider for an industrial park that has been granted such
accreditation by DENR. It services LIMA Estate, a 700-hectare mixed-use
development in Lipa-Malvar, Batangas which hosts 111 industrial locators.

Lima Water Laboratory Gets DENR Accreditation

UnionBank, a leader in digital banking, is going full speed in “teching up” the
country through investing on technology to digitize processes and ensure fast,
secure, and seamless delivery of financial services to broaden financial
inclusion

The bank is utilizing the same technology to build capabilities of the people in
order to remain relevant amid changing times. UnionBank is again taking the lead
in what is called PeopleTech – or building the skills and capabilities of the
future – through the UBP Xcellerator Program.

The Xcellerator Program is a one-stop learning resource, offering a variety of
on-demand education programs and pathways that enhance skills and strengthen
competencies.

The pilot offerings include blockchain development — one of the most popular
emerging technologies that has a broad scope of use cases, including
hospitality, finance, and real estate.

The pathway offers capability building through blended learning, which will make
business and product owners, and developers adept in blockchain.

UnionBank’s latest learning and development program is seen to boost chances of
getting employed especially now when companies are shifting to digital and
contactless business models.

Talents with capabilities classified as hard skills of the future like
artificial intelligence, cloud computing, UX Design, and blockchain are expected
to be sought after.

As an introduction to the programs and learning pathways, the UBP Xcellerator
Program launched “Xcellerator Gamechangers,” a webinar series that aims to share
knowledge and insights of experts on emerging technology and digital strategies.

The Xcellerator Basics Program is available for free and may be accessed through
this link: https://bit.ly/bcbprogram.
Learners who would like to further deepen their knowledge of blockchain can
enroll in the Xcellerator Business Specialist Program.

Special discounts are extended to the unemployed, educators, teachers and
UnionBank account holders.

For corporate or group enrolment, please contact xcellerator@unionbankph.com.

Banking and Financial Services

UnionBank's ‘PeopleTech’ Goes Full Throttle With UBP Xcellerator


--------------------------------------------------------------------------------

Aboitiz Group President & CEO Sabin Aboitiz (SMA) and a team of AboitizPower
senior leaders had a meaningful time visiting APRI geothermal power plant
facilities on July 15 and 21, respectively.

SMA traveled to APRI MakBan in Laguna with AboitizPower President & CEO Manny
Rubio and AP Renewable Power Generation Group COO Alex Coo. They were warmly
welcomed by APRI team leaders and team members on-site led by Geothermal and
Solar Business Units President & COO Dennis B. Jordan.

In a briefing, the hosts shared important geothermal and solar operations
updates and discussed current challenges and opportunities of the organization.
They also highlighted that, through it all, APRI remains committed to the
Aboitiz brand promise of advancing business and communities amid the COVID-19
pandemic.

The group took in a guided tour of the MakBan facilities—Plant B and Binary
1—and met with A-People manning the frontlines to ensure services continue at
optimal levels. The operations teams were generous in sharing about their usual
day in the control room as well as their processes and safety protocols in
operating a geothermal power plant.

SMA and Manny also dropped by the Cleanergy Center (located inside the APRI
MakBan compound) where Kim Terbio
[http://aboitizeyesarchive.aboitiz.com/living-cleanergy-center-dream/], APRI
Reputation Specialist, walked them through the newly improved interactive
displays.

The week after, SMA was in APRI Tiwi in Albay for another productive albeit
brief visit. This time he was joined by AboitizPower SVP Regulatory Affairs and
External Relations Danel Aboitiz, and Oil Business Unit AVP Corporate Services
Jokin Aboitiz to check in with team members and see first hand Tiwi Plant A
facilities.

By Franz de la Fuente
[https://aboitiz.workplace.com/profile.php?id=100026684951792]

Aboitiz Equity Ventures (AEV) ended the first half of 2020 with PHP4 billion in
net income, 55% lower than the PHP9 billion recorded during the same period last
year, reflecting the impact of the lower income contribution of its largest
business unit, AboitizPower.

The company recognized non-recurring losses of PHP20 million versus the PHP78
million in non-recurring gains recorded in the previous year, representing
foreign exchange losses from the revaluation of dollar-denominated assets. 

Without these one-off losses, AEV’s core net income for the first half of 2020
was PHP4 billion, 54% lower year-on-year (YoY) (from PHP8.9 billion). AEV
recorded consolidated earnings before interest, taxes, depreciation, and
amortization (EBITDA) of PHP23 billion during the first six months of 2020, a
13% decrease from the PHP26.5 billion recorded in the same period last year.

Power accounted for 49% of the total income contributions from AEV’s Strategic
Business Units (SBUs), followed by banking and financial services (39%), food
(14%), infrastructure (-1%), and land (-1%).

“The current COVID-19 crisis continues to disrupt and impact our organization in
different ways. Throughout this, we have given significant attention to our
ability to adapt to changes and to prepare for uncertainties,” said Sabin M.
Aboitiz, Aboitiz Group President and Chief Executive Officer.

> For the rest of the year, our goal is unchanged: to remain resilient and for our
business units to be in the best possible position when we emerge from this
crisis, in order to support the country’s economic recovery. As One Aboitiz, we
will continue to be one with the nation in its fight against COVID-19.

–SMA
The Aboitiz chief  looks forward to a better economy in the second half of the
year as the country slowly opens up and adapts to the new normal.

Power
AboitizPower’s net income contribution to AEV for the first half of 2020
decreased by 57% YoY, from PHP6.7 billion to PHP2.9 billion primarily due to
reduced demand resulting from the enforcement of COVID-related community
quarantines, as well as forced outages during the first half of 2020 involving
Pagbilao units 1-3, Therma South, Inc. Unit 2, and GN Power Mariveles Coal Plant
Ltd. Co. Unit 2. These reductions offset the decrease in purchased power costs
during the first half of 2020, and revenues from Therma Visayas, Inc. and Therma
Mobile, Inc., which were both online since January of this year, as opposed to
the second quarter of last year. Moreover, the first quarter of 2019 also
included income from the Generation Rate Adjustment Mechanism and Incremental
Currency Exchange Rate Adjustment, which were not available as income during the
first half of 2020.

For the first half of 2020, income contributions from the generation and retail
electricity supply businesses, which accounted for 68% of total income
contribution from AboitizPower’s business segments, totaled PHP3.6 billion, 56%
lower YoY.

Meanwhile, AboitizPower’s distribution business recorded an income share of
PHP1.7 billion during the first half of 2020, a 7% decrease YoY, which accounted
for 32% of income contributions from AboitizPower’s business segments. 

Banking and Financial Services
The income contribution of UnionBank to AEV for the first six months of 2020
amounted to PHP2.3 billion, 3% lower than the PHP2.4 billion recorded in the
same period last year.

On a stand-alone basis, UnionBank and its subsidiaries recorded a net income of
PHP4.5 billion in the first half of 2020, 6% lower than the PHP4.8 billion
recorded in the same period last year. This was mainly due to revenue growth
from the sustained increase in net interest income, as well as higher trading
gains.

Food
AEV’s non-listed food subsidiaries’ (Pilmico Foods Corporation, Pilmico Animal
Nutrition Corporation, and Pilmico International Pte. Ltd. — which includes Gold
Coin Management Holdings Limited) income contribution to AEV amounted to PHP795
million for the first half of 2020, 44% higher than the PHP552 million recorded
in the same period in 2019.

This was due to contributions from the Feeds business segment (which recorded a
net income of PHP448 million, 296% higher YoY, due to lower raw materials and
financing costs), Flour business segment (which recorded PHP346 million in net
income, 50% higher than the previous year, on the back of improved per unit
gross profit and volume), and from Pilmico International (which recorded a net
income of PHP502 million in the first half of 2020, a 205% increase from the
same period last year, due to the increase in income contribution of Gold Coin
Management Holdings Limited resulting from an increased equity ownership, and
increased volumes from Gold Coin’s China, Vietnam, Malaysia, and Sri Lanka
operations). The Farms business segment, however, reported a net loss of PHP501
million due to decreased selling prices and sales volume resulting from the
spread of the African Swine Fever in Luzon, as well as a decline in margins
following higher farms and meat processing costs.


Land
AEV’s non-listed real estate businesses, comprising AboitizLand and its
subsidiaries, reported a consolidated net loss of PHP39 million for the first
half of 2020, versus PHP60 million in income recorded during the same period
last year.

AboitizLand contributed PHP1.1 billion in revenues for the first half of 2020,
20% lower than the revenue contributions from the same period in 2019.

This negative variance was primarily due to decreased revenue for AboitizLand’s
residential business, as AboitizLand felt the impact of the slowdown and
restrictions in operations resulting from the government-imposed community
quarantines in response to the COVID-19 pandemic. The projects’ percentage of
completion, driven by the construction progress, is a key factor in the
recognition of revenue. The company’s construction activities were brought to a
standstill during the second quarter of 2020.


Infrastructure
For the Infrastructure group, Republic Cement & Building Materials, Inc.
reported a net loss of PHP10 million to AEV for the first half of 2020, compared
to PHP249 million in income recorded during the same period last year.  This was
due to the contraction in the demand for cement as construction activities
dramatically slowed down, particularly during the enforcement of COVID-related
community quarantines.

AEV Posts PHP4-Billion Net Income For 1H 2020

Josa Marie Salazar

When the Enhanced Community Quarantine (ECQ) was implemented on March 15, no one
was ready. When the government implemented the ECQ, people were subject to
limited access to transportation, suspension of both classes and work, and
mandatory staying at home. This puts people in a mad rush to stock up, go home,
and prepare as much as they can.

But not all of us are so lucky to have contingencies, especially in their
livelihoods. With work suddenly suspended, most daily wage earners had no idea
where to get their next meal. There are also those who have small businesses who
must negotiate lack of demand for whatever product or service they provide.

Such was the case for Malou Sol, a seamstress and a founding member of the
Sewers for Equity and Welfare Producers' Cooperative in Taguig. Their 12-member
sewing cooperative took jobs from various clients, but when the pandemic crisis
hit, they were pretty much idle and were not earning anything.

“There were only twelve of us active in the cooperative,” said Malou. “But when
the ECQ happened, we were reduced to six members because the other six had to go
home to their home provinces. And since there were no projects coming in, it was
quite tough,” she said.

Sewers from Pilmico's partner cooperatives were provided with additional revenue
stream with the Face Mask to Flour Sack initiative.Meanwhile, hundreds of
kilometers away in Lapu-Lapu City, Irenea Coremo, also a leader of a
cooperative, namely the Sagip Multipurpose Cooperative, is in the same boat.

“We actually had orders [to make] togas and graduation gowns,” Irenea said. “But
because the graduation ceremonies were cancelled or postponed at the time, we
suffered losses and had no other income,” she shared.

Amid the uncertainty, both Malou and Irenea were given hope when they received a
call from one of their patrons, Pilmico Foods Corporation. Prior to the
pandemic, both cooperatives have been Pilmico’s partners in several projects.
They made eco-bags and recycled flour sacks, which served as marketing
collaterals for Pilmico’s products. Now, by repurposing and recycling the flour
sacks provided to their cooperatives, they are making something that everyone
needs in a post-pandemic Philippines: reusable and washable face masks. It was
then they, figuratively, found hope under a mask.

Pilmico started the Flour Sacks to Face Masks project amid the ECQ with the
purpose of equipping its business units and personnel with reusable face masks,
as well as donating said masks to communities and partners that need them.

Sample face masks made by Pilmico’s partner cooperatives. These were produced
from the Food Group’s repurposed flour sack donations.“Hulog ng langit,” Malou exclaimed. “We were so worried about how we would
survive the ECQ until we got the call from Pilmico. We were so relieved,” she
continued.

From the comfort of their homes, member sewers of Pilmico’s partner cooperatives
are able to generate income, addressing one of the challenges brought by
community quarantine measures implemented nationwide.Irenea was also very
thankful and highlighted how easy it was to work with their partner. “We are
fortunate to have Aboitiz Foundation and Pilmico as our partners,” she said.
“Despite the shortage of machines there were a few delays. But they were very
understanding and were even helping us find ways to help us get things done,”
she shared.

With the help of Sewers for Equity and Welfare Producers' Cooperative, Sagip
Multipurpose Cooperative, and other partners, the Flour Sacks to Face Mask
project was able to produce almost 34,000 recycled, reusable, and washable face
masks. These face masks were bought by Pilmico and other Aboitiz companies,
giving the sewing cooperatives a substantial livelihood to rely on amid the
crisis.

Pilmico continues to look for more partners in its flour sacks to face masks
initiative. This project serves as a source of sustainable livelihood amid the
economic slowdown brought upon by the COVID-19 pandemic.As the country
transitions from a post-quarantine period, the demand for reusable face masks
continues to increase. According to Flour Sacks to Face Masks Project Lead AJ
Belen, the sustainability of the project will improve with more partners. “Our
production partners are continually producing masks as Pilmico provides
materials that they could upcycle,” he said. “We’re always looking for partner
cooperatives and, of course, beneficiaries for the project,” he said.

For more information on how to be part of the Flour Sacks to Face Masks project,
you may contact AJ Belen via mobile at 0917-836-6641, or e-mail at
frances.arjohn.belen@aboitiz.com.

Masked Hope: How Flour Sacks and Face Masks Gave Women Livelihood

Victor Silva

AboitizPower continues to be recognized as a constituent company in the
FTSE4Good Index Series.

The FTSE4Good Index Series, created by global index provider FTSE Russell,
measures the performance of companies demonstrating strong Environmental,
Social, and Governance (ESG) practices. The FTSE4Good indices are used by a wide
variety of market participants to create and assess responsible investment funds
and other products.

AboitizPower has been independently assessed according to the FTSE4Good criteria
and has satisfied the requirements to become a FTSE4Good Index Series
constituent. The company has sustained its rating in the FTSE4Good Index Series
since 2018.

> Being a FTSE4Good constituent for three years in a row is a major accomplishment
for us. This affirms that we are on the right track with our commitment to being
sustainable and drives us to continue strengthening our ESG standards and
practices.

– Emmanuel V. Rubio, President and CEO, AboitizPower
Environmental
CLEANERGY.AboitizPower is committed to supporting the government’s push for
renewable energy in the country and contributing to the global RE target by
significantly growing its Cleanergy portfolio in the next 10 years.With
sustainability at its core, AboitizPower’s support for environmental
conservation runs in parallel with the company's commitment to providing
reliable, affordable, and sustainable energy, through a balanced portfolio mix
of renewable and thermal power facilities, which it operates in compliance with
all applicable standards and regulations.

The company is also a pioneer of renewable energy in the Philippines, having
invested in hydropower in the 1970s, which is the foundation of Cleanergy,
AboitizPower’s renewable energy  portfolio. To date, Cleanergy includes hydro,
geothermal, and solar power. Together with partners, AboitizPower has a net
sellable capacity of more than 1,200 MW from 29 Cleanergy facilities all over
the country.

In the next 10 years, the company is looking to significantly expand its
Cleanergy portfolio. Sixty-five percent (65%) of its new capacities will be
sourced from renewables, resulting in an almost 50:50 thermal and Cleanergy
capacity mix by 2029. This is also in support of the government’s efforts to
further promote renewable energy in the country and is AboitizPower’s
contribution to the global RE target.

Social
Over the years, AboitizPower has built strong partnerships with its host
communities and local government units (LGUs). These partnerships have paved the
way for sustained corporate social responsibility (CSR) initiatives for the
communities hosting AboitizPower facilities.

The company has also fully supported the disbursement of Energy Regulations 1-94
(ER 1-94) to host beneficiaries. The ER 1-94 Program is a policy under the
Department of Energy (DOE) Act of 1992 and the Electric Power Industry Reform
Act of 2001 (EPIRA), which stipulates that a host community will get a share of
one centavo for every kilowatt-hour (P0.01/kWh) generated by power plants
operating in its area. The fund can be used for the electrification of areas or
households that have no access to power, development and livelihood programs, as
well as reforestation, watershed management, health, and environmental
enhancement initiatives.

COMMUNITY. To date, AboitizPower has made available to its host beneficiaries
around Php 462 million worth of ER 1-94 funds, which the local government units
can tap for their COVID-19 response and relief efforts. AboitizPower not only
ensures that the funds are properly accounted for and remitted, but also
supports its host communities in the utilization of ER 1-94 funds.Upon the
effectivity of DOE’s new Department Circular No. 2020-04-00080, which allows the
use of the said funds for COVID-19 response, AboitizPower was among the first
energy companies to make ER 1-94 funds available to its host beneficiaries all
over the country. To date, the company has turned over around Php 462 million
worth of ER 1-94 funds to support host LGUs in their fight against COVID-19.

Also under the social component is occupational health and safety (OHS), wherein
AboitizPower has recorded a strong performance, through the effective
implementation of OHS programs. With safety being a top priority for
AboitizPower, the company has institutionalized behavior-based safety practices
across all its business units. These include, among others, the use of Watch
App, a mobile application used by AboitizPower team members to report
safety-related risks. This tool allows the organization to monitor and quickly
address safety concerns in the workplace. As a result of these efforts, all
AboitizPower generation facilities and distribution utilities have received
international certifications for the OHS Management System.

Governance
AboitizPower firmly believes that commitment to good corporate governance is
integral to a sustainable business. It benchmarks its governance practices on
the ASEAN Corporate Governance Scorecard, with particular focus on five key
areas — rights of shareholders, equitable treatment of shareholders, the role of
stakeholders, disclosure and transparency, and responsibilities of the board.

As a testament to this commitment, AboitizPower was recognized as one of the
best-managed companies in the Philippines and in the ASEAN region. In November
2018, AboitizPower was lauded for being one of the top-performing
publicly-listed companies (PLC) at the 2nd ASEAN Corporate Governance Awards
ceremony held in Malaysia. In 2019, the company also received recognition from
the Institute of Corporate Directors (ICD) as among the top-performing PLC in
the ASEAN Corporate Governance Scorecard (ACGS).

AboitizPower continues to build on its strong corporate governance by constantly
reviewing and improving its practices and controls, to ensure that it remains
sustainable and relevant to future generations.

“We recognize that we still have a long way to go in terms of sustainability,
but we are proud of what we have achieved so far despite the challenges we are
facing today. This inspires us to continuously learn and improve, so we can
continue to create long-term benefit for our stakeholders,” added Rubio.

RESPONSIBILITY. AboitizPower’s responsible operation of its Therma South
baseload power plant in Davao ensures environmental conservation. As a result,
the said facility makes an ideal nesting site for sea turtles and a home to
various bird species.

By Franz de la Fuente
[https://aboitiz.workplace.com/profile.php?id=100026684951792]

The Aboitiz Group reaffirms its commitment to operate its businesses with a
sustainability mindset that upholds best practices in environmental management,
social responsibility, and good governance while ensuring long-term financial
growth and business capability.

With the group’s involvement in critical sectors such as energy, banking, food,
real estate, infrastructure, and construction, Aboitiz commitments to
sustainability is at the core of its business operations.

“The Aboitiz Group believes in striking a balance between the interests of
people, planet, and profit. We have made proactive investments to ensure that
our success in business continues to bring meaningful societal change. This
requires us to be fully informed in our long-term decisions that are anchored on
enhancing the capabilities of our people and being mindful of our impact on the
planet,” said Sabin M. Aboitiz, Aboitiz Group President and Chief Executive
Officer.

Globally, companies’ Environmental, Social, and Governance (ESG) portfolios are
fast becoming reliable benchmarks on its market position and ability to perform
during challenging times.

The Group is also heeding the call of the United Nations Global Compact (UNGC) ー
in which Aboitiz is a participant ー on the Sustainable Development Goals (SDG)
Ambition, an accelerator initiative that urges participating companies to “set
ambitious targets” and accelerate the integration of identified SDGs into their
business operations.

Aboitiz Strategic Business Units (SBUs) have been implementing various
initiatives to align with the Group’s overall sustainability goals.

Power subsidiary Aboitiz Power Corporation is looking to significantly increase
its Cleanergy capacity in the next 10 years. This is in support of the
government’s efforts to further promote renewable energy in the Philippines and
AboitizPower’s contribution to the global RE targets. Sixty-five percent of the
new capacities of AboitizPower will be sourced from renewables, resulting in an
almost 50:50 Cleanergy: thermal capacity mix by 2029. The company is committed
to ensuring that the country’s energy system is reliable, affordable, and
environmentally sustainable.

Banking and financial services unit Union Bank of the Philippines is currently
at the forefront of digital transformation in the banking sector using its
fintech, peopletech and digital platform innovations to lead in social
sustainability. From paperless and LEED-certified ARK branches to blockchain and
platforms that connect rural banks and small to medium enterprises, UnionBank is
actively defining how a bank practices ESG as it adheres to the sustainable
finance policy mandate of the Bangko Sentral ng Pilipinas.

Recently, UnionBank partnered with the Bureau of Treasury and Philippine Digital
Asset Exchange (PDAX) in developing Bonds.PH, a mobile app that empowers
Filipinos to invest in risk-free treasury bonds. The app, the first in Asia, was
launched in time with the announcement of the Progreso Bonds, the 24th retail
treasury bond, which aims to raise at least P30 billion mainly to fund the
government’s health initiatives against the coronavirus pandemic and help
overseas Filipino workers and small businesses. UnionBank is also one of the
joint issue managers.

Food subsidiary Pilmico Foods Corporation’s ultimate goal of feeding humanity
recognizes the importance of food security in the country. Guided by the value
of innovation, Pilmico has implemented projects that reduce its carbon footprint
while improving its facilities’ efficiency. This includes two biogas facilities
in its swine farms with the capacity to generate 626 megawatt-hours (MWh) of
energy output annually. The group also launched #M3Time, a campaign targeted
towards backyard and large farmers, to raise awareness and consciousness on
practicing biosecurity. The campaign started with house-to-house and farm
visits, seminars and activations. Despite the current quarantine restrictions in
various parts of the country, #M3Time continues to spread awareness through
online campaigns, webinars, and e-consultations with Pilmico specialists.

Under its infrastructure unit Aboitiz InfraCapital, Apo Agua Infrastructura,
Inc. is set to complete the construction of the PHP12.6-billion Davao City Bulk
Water Supply Project, which will shift the dependence of Davao City’s main water
supply from groundwater wells to the more sustainably-sourced surface water of
the Tamugan River. Once operational, it is expected to provide Davaoeños with
over 300 million liters per day.

A key component of the project is its use of the “water-energy nexus” concept to
power its water treatment plant - a first in Southeast Asia. Since 2019, Apo
Agua has also been working together with its stakeholders to ensure the
protection of the Panigan-Tamugan Watershed by adopting a 50-hectare site in the
watershed through the Davao City Water District’s Adopt-A-Site Project.

By building integrated townships anchored on its industrial zones, the Group’s
real estate subsidiary Aboitiz Land, Inc. promotes sustainable economic growth,
as well as decent work for the people in and around its estates.  LIMA
Technology Center in Lipa-Malvar, Batangas, and West Cebu Industrial Park and
Mactan Economic Zone II collectively provide jobs to over 100,000 workers. With
expansion plans in place, AboitizLand will be able to welcome more locators as
well as more merchants in its commercial centers, thereby opening more job
opportunities for its host communities.

The company also takes pride in the thriving ecosystem of the Olive Ridley sea
turtles at its Seafront Residences in Batangas. The company pledged to preserve
the sanctuary and is continuously implementing programs to help nurture and
conserve the endangered marine species.

For its part, Aboitiz Construction remains committed to environmental
preservation in all its projects through the control and reduction of waste
generation, waste elimination through resource recovery practices, as well as
waste collection, segregation, and classification. Aboitiz Construction also
ensures the use of scrap materials and reusable waste, contributing to
sustainable construction operations.

Meanwhile, the Aboitiz Group also maintains the Aboitiz Cleanergy Park, a
pawikan sanctuary, which, in 2019, welcomed 10,735 visitors and released a total
of 4,811 hatchlings to the ocean. For the early part of 2020, two pawikans have
been rescued and are currently under observation due to health conditions. Three
pawikans are ready for release pending the Department of Environment and Natural
Resources’ final schedule, while one will stay for further rehabilitation.

Sustainability

A Multifaceted Approach To The Aboitiz Group's Long-Term Sustainability

Jill Ison

Throughout the face of a changing landscape in the construction industry’s
day-to-day work practices, Aboitiz Construction elevates its own safety measures
inside its project sites, project offices, and head offices, adapting to the new
normal.
Though COVID-19 may not be the same form of work-related hazard the Aboitiz
Construction sites have been accustomed to, this has put a greater focus on the
value of safety and health at work sites. Aboitiz Construction has since then
redefined and ramped up its safety measures—putting more significance on
ensuring the protection of all team members, subcontractors, clients, and other
key people in the sites.

> We have executed physical distancing in our work areas (service vehicles,
offices, canteens, barracks, and staging areas) and equipped with all preventive
and control measures such as disinfection and wash bays, wearing of right PPE's,
constant health and temperature checks. These are all supported by constant
communication of information and educating our team members on the correct
safety measures.

–Ramon D. Rius, Quality Control & Quality Assurance Manager, Quality Environment
Safety and Health Department, Aboitiz Construction
Here are some examples of how Aboitiz Construction practices the strictest
safety measures on site:

Maintaining Physical Distancing


Regular Hand Washing

Constant Disinfection of the following:

Footwear


Vehicles

Facilities



Temperature Checks and Monitoring

Wearing of Masks

These and other preventive measures are definitely focused on making Aboitiz
Construction sites much safer, cleaner, and away from the virus. And as the
pandemic continues to evolve with recent developments and new measures to be put
in place, Aboitiz Construction commits to maintaining conformity with higher
health and safety requirements set forth by officials. 

Despite all these changes and challenges, the Aboitiz values and culture,
coupled with the company’s competence and reliability, is how Aboitiz
Construction stays ahead of the curve, hence continues to build a better future
together with its clients, team members, and stakeholders.

Aboitiz Construction, Inc., together with its international arm, Aboitiz
Construction International, Inc., is the construction arm of Aboitiz and Co.,
with a 45-year track record in delivering quality, safe, reliable and on-time
projects for its various local and international customers in the industrial,
infrastructure, energy and utilities and other commercial industries.

To know more, visit the Aboitiz Construction official website
[https://www.aboitizconstructioninc.com/].

Construction

Aboitiz Construction Elevates Safety Measures At Sites

John Guiang

In partnership with one of the top logistics companies in the Philippines, PERA
HUB customers can now send and receive money in any LBC branch nationwide as it
launched its new remittance sendout services via Western Union on June 25, 2020.

This tie-up allows remittance customers to send and receive Western Union
remittances in LBC’s 1,400 locations in the country. LBC is the Philippines’
market leader in retail and corporate courier & cargo, money remittance, and
logistics services.

> PERA HUB’s strategic partnership with LBC for Western Union remittance services
allows us to cater to more Filipinos and communities who are in need of
accessible financial services especially during a pandemic. Their massive reach
in the country is a big advantage that would help us reach areas where our
services are needed.

- Ian T. Ocampo, PETNET, Inc. President and CEO
PERA HUB solidifies its place in the remittance business as it expands to more
key partners and onboards more remittance brands in the first half of the year.

SMA Joins AboitizPower Leaders On Visit to APRI MakBan And Tiwi
Read full story

AboitizPower Recognized Anew As FTSE4Good Constituent
Read full story

Apo Agua Ramps Up: More Skilled Workers To Be Recruited
Read full story

Mactan Ecozone Locators Get Rent Reprieve From AboitizLand
Read full story

SMA Joins AboitizPower Leaders On Visit to APRI MakBan And TiwiRead full story

AboitizPower Recognized Anew As FTSE4Good ConstituentRead full story

Apo Agua Ramps Up: More Skilled Workers To Be RecruitedRead full story

Mactan Ecozone Locators Get Rent Reprieve From AboitizLandRead full story

SMA Joins AboitizPower Leaders On Visit to APRI MakBan And Tiwi
Read full story

AboitizPower Recognized Anew As FTSE4Good Constituent
Read full story

Apo Agua Ramps Up: More Skilled Workers To Be Recruited
Read full story

Mactan Ecozone Locators Get Rent Reprieve From AboitizLand
Read full story