MC No. 04 s.2019 - Sustainability Reporting Guidelines for Publicly-Listed Companies

SEexccuhraitniegseand Commission PHILIPPINES SEC MEMORANDUM CIRCULAR NO. 4 Series of 2019 TO PUBLICLY-LISTED COMPANIES SUBJECT SUSTAINABILITY REPORTING GUIDELINES FOR PUBLICLY-LISTED COMPANIES To promote sustainability reporting and make it relevant for Philippine publicly-listed companies (PLCs), the Commission, in its en banc meeting on 12 February 2019, resolved to issue the Sustainability Reporting Guidelines for Publicly-Listed Companies attached to this Memorandum Circular. The Guidelines is intended to help PLCs assess and manage non-financial performance across Economic, Environmental and Social aspects of their organization and enable PLCs to measure and monitor their contributions towards achieving universal targets of sustainability, such as the United Nations Sustainable Development Goals, as well as national policies and programs, such as AmBisyon Natin 2040, Submission with SEC Form 17-A The reporting template (Annex A of the Guidelines) shall be submitted together with the company's Annual Report (SEC Form 17-A). The first report shall be attached to the 2019 Annual Report to be submitted in 2020. For companies who already have sustainability reports in accordance with internationally recognized frameworks and standards, their reports shall already be considered as their compliance with the reporting template. Companies may choose to attach the whole sustainability report to their Annual Report or just include a statement providing a link to said report. Comply or Explain Approach The Guidelines shall be adopted on a "comply or explain" approach for the first three years upon implementation. By "comply or explain", it means that companies would be required to attach the template to their Annual Reports but they can provide explanations for items where they still have no available data on. Penalty for Non-attachment of the Sustainability Report to the Annual Report Non-attachment of the Sustainability Report to the Annual Report shall be subject to the penalty for Incomplete Annual Report provided under SEC Memorandum Circular No. 6, Series of 2005 (Consolidated Scale of Fines). This Memorandum Circular shall take effect fifteen (15) days after its publication in two (2) newspapers of general circulation. Pasay City, Philippines, 15 February 2019. For the Commission: Published: Manila B u l l e t i n , February 21, 2019 Manila Standard, February 21, 2019 QUINO

Sustainability Reporting Guidelines fur Publicly Listed Companies INTRODUCTION In recent years, increased focus has been placed on companies to provide greater disclosure and transparency not only on financial matters but on non-financial and sustainability issues, as well. Companies' stakeholders now give greater attention to how businesses impact the economy, environment and society and the way corporations respond to sustainability challenges, in addition to financial challenges, determines their long-term viability and competitiveness. Consequently, Sustainability Reporting has emerged as a common practice for companies globally. In fact, 93% o f the world's largest 250 companies and 75% o f the top 100 companies in 49 countries report on sustainability.'However, for the Philippines, less than 22% o f publicly-listed companies have published a report on sustainability impacts and performances.2 The need to promote sustainability reporting to Philippine companies served as the impetus for the SEC to include Principle 10 in the Code o f Corporate Governance for Publicly-Listed Companies (PLCs) stating that companies should ensure that material and reportable non-financial and sustainability issues are disclosed. Recommendation 10.1 o f the same Code further provides as follow: "The board should have a clear and focused policy on the disclosure o f non- financial information, with emphasis on the management o f economic, environmental, social and governance (EESG) issues o f its business, which underpin sustainability. Companies should adopt a globally recognized standard/framework in reporting sustainability and non-financial issues." To further increase awareness among Philippine PLCs on sustainability reporting, the SEC is releasing this Guidelines on Sustainability Reporting. This Guidelines is crafted with the following objectives: � Make sustainability reporting relevant and value adding for Philippine PLCs � Help PLCs to identify, evaluate and manage their material Economic, Environmental and Social (EES) risks and opportunities � Help PLCs to assess and improve their non-financial performance across EES aspects o f their organization to optimize business operations, improve competitiveness, and long-term success. � Provide a mechanism that would allow PLCs to communicate with its stakeholders, including investors or its potential investors The Road Ahead. The K.PMG Survey o f Corporate Responsibility Reporting 2017. https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/10/kpmg-survey-of-corporate-responsibility-reporting-2017. pdf 2 Rased on disclosures made by publicly-listed companies on their Integrated Annual Corporate Governance Report ( I - A C G R ) , 58 companies out of 270 have published a Sustainability Report 1

� Enable PLCs to measure and monitor its contributions towards achieving universal targets of sustainability, such as the United Nations Sustainable Development Goals ( U N SDG), as well as national policies and programs, such as AmBisyon Natin 2040. The Guidelines recognizes that sustainability reporting is a journey and that the PLCs would be at different levels in this journey; while some may already be advanced, most are just beginning. As such, this Guidelines may be seen as an introductory tool for those companies who are just starting on their journey. Please note that companies are not required to disclose on all topics provided in the Reporting Template (Annex A o f the Guidelines). Rather, disclosure should only be on topics determined by companies as material after an assessment of materiality, which is discussed in more detail in the Materiality Assessment section. Nevertheless, companies are encouraged to move at any time beyond and disclose more information than that required under this Guidelines, especially other initiatives which the company considers as contributing to the UNSDG. For other companies already reporting in accordance with internationally recognized sustainability frameworks or standards, their sustainability reports shall be considered as their compliance. However, they are encouraged to use this as a guide, particularly for climate-related disclosures. SUSTAINABILITY AND SUSTAINABILITY REPORTING Sustainability is defined as "development that meets the needs o f the present without compromising the ability o f future generations to meet their own needs".3 It focuses on how a company manages its economic, environmental and social impacts, risks and opportunities. Disclosure on these non-financial matters are done through sustainability reporting (also known as EESG (economic, environmental, social and governance) reporting, non-financial reporting, or triple bottom line accounting), which is a central element of modern corporate reporting that includes strategy, governance and performance. Sustainability reporting is an organization's practice o f reporting publicly on its significant economic, environmental and/or social impacts, in accordance with globally accepted standards. Such disclosures enable organizations to measure, understand and communicate their EESG performance and then set goals, and manage change more effectively.4 Often, they go hand in hand with the setting o f performance targets related to EESG impacts. Sustainability reporting also benefits stakeholders interested in an organization's ability to create value over time, including employees, customers, suppliers, investors, business partners, local communities, legislators, regulators, and policy makers. This promotes transparency and accountability, empowering stakeholders to make informed decisions and helps the company manage its EESG impacts. Globally Recognized Standards/Frameworks in Reporting Sustainability This Guidelines provides a Sustainability Reporting Framework for Philippine PLCs that builds upon four of the globally accepted frameworks, which companies use to report on sustainability and non-financial information - the Global Reporting Initiative's (GRI) Sustainability Reporting Standards, the International Integrated Reporting Council's (IIRC) Integrated Reporting (IR) Framework, the Sustainability Accounting Brundtland, G. "Our Common Future", Report o f the World Commission on Environment and Development (1987). 4 Global Reporting Initiative. "About Sustainability Reporting", https://www.globalreporting.org/information/sustainability- reporting/Pages/default.aspx accessed on 05 December 2018 2

Standards Board's (SASB) Sustainability Accounting Standards, and the recommendations o f the Task Force on Climate-related Financial Disclosure (TCFD)5. The GRI Standards has a comprehensive reporting requirement covering governance, economic, environmental, and social topics. It is also aligned with international standards and normative frameworks such as the United Nations Global Compact (UNGC) and the International Labour Organization (ILO) Tripartite Declaration. The <IR> Framework defines six capitals, seven guiding principles, and eight content elements o f an integrated report but does not specify topic disclosures and measurement methods. It aims to monitor how the capitals are used and created by the business model and discloses the companies' strategies in light of risks and outlook. The SASB Standards provides industry-based sustainability standards for more than 77 specific industries. It has five general sustainability themes including environment, social capital, human capital, business model and innovation, and leadership and governance. To address sustainability issues, a minimum set o f topics for consideration in each industry are also provided, together with quantitative and comparable accounting metrics.6 The TCFD - a private-sector task force created by the Financial Stability Board - issued its final recommendations on climate- related financial disclosure in June 2017, focusing on climate-related risks, opportunities, and financial impacts, as well as scenario analysis.7 The Task Force's recommendations apply to non-financial companies and financial-sector organizations, including banks, insurance companies, asset managers and asset owners. The table below distinguishes the reporting standards/frameworks and compares the guiding principles for defining report content and sustainability topics covered in each standard/framework. More information can be found in the full guidance documents for these reporting standards/frameworks that can be access via their websites. Coverage Reporting Standards/Frameworks General GRI IR Framework SASB TCFD Sustainability � Governance of Topics � Economic Six Capitals: � Business model climate-related � Environmental � Manufactured and innovation issues � Social capital � Leadership and � Impact of � Financial governance climate-related issues on strategy � Governance capital � Human capital and financial planning � Intellectual � Social capital capital � Management of climate-related � Human capital � Environment risks � Social and relationship capital 5 The T C F D Recommendations is focused on climate-related issues. '' The Sustainability A c c o u n t i n g Standards Board Conceptual Framework ( 2 0 1 7 ) 7 Adopted by the Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosure (TCFD, 2017). 3

� Natural capital � Use o f climate- related metrics Eight Content and targets Elements: � Organizational overview and external environment � Governance � Business model � Risks and opportunities � Strategy and resource allocation � Performance � Outlook � Basis of presentation Guiding For defining � Strategic focus For topic Disclosures should: Principles report content: and future selection: � represent � Stakeholder orientation � Financial relevant inclusiveness � Connectivity of materiality, based information � Sustainability information on (i) potential to � be specific and affect corporate complete content � Stakeholder value or (ii) � be clear, � Materiality relationships interest o f balanced, and � Completeness investors understandable � Materiality � be consistent For defining � Relevant across over time report quality: � Conciseness an industry � be comparable � Accuracy among � Balance � Reliability and � Actionable by companies � Clarity completeness companies within a sector, � Comparability industry, or � Reliability � Consistency � Reflective of portfolio � Timeliness and stakeholder � be reliable, comparability consensus verifiable, and objective For accounting � be provided on metrics: a timely basis � Fair representation � Useful � Applicable

� Comparable � Complete � Verifiable � Aligned � Neutral � Distributive Materiality "Material A matter is Financially Public companies' aspects" are those material i f it material issues that legal obligation to that reflect the could are reasonable disclose material organization's substantively likely to impact the information in their significant affect the financial condition financial filings-- economic, organization's or operating including material environmental ability to create performance o f the climate-related and social value in the typical company information impacts; or that short, medium, within an industry substantively or long term and therefore are influence the most important to assessments and investors decisions of stakeholders These standards and frameworks can complement each other and can be used in a single document. For example, a report can be published which uses the <1R> framework and discloses information in accordance with the GRI Standards. In addition to these four frameworks, the International Finance Corporation, the private sector arm o f the World Bank Group, has developed a Toolkit for Disclosure and Transparency with guidance for companies in emerging markets. This toolkit aims to help companies begin the process o f sustainability reporting and move toward integrated reporting, with guidance on how to development disclosure over time 5

Benefits nf Sustainability Reporting Internal Benefits > Effective management of sustainability risks and opportunities �Sustainable Vision, Strategy and Business Plans � Improved management systems � Motivated workforce External Benefits �Improved company reputation and brand value � Investor attractiveness �Stakeholder engagement � Competitive advantage Internal Benefits 1. Effective management of sustainability risks and opportunities The process involved in sustainability reporting allows companies to know and better understand their sustainability risks and opportunities. This would in turn result to a more effective assessment and management o f said risks and opportunities. 2. Sustainable Vision, Strategy and Business Plans Sustainability reporting encourages companies to assess, and i f necessary to update, their visions, strategies and business plans to ensure that sustainability is embedded in their organizations. It gives companies the opportunity to determine the necessary changes in their vision, strategies and performance goals/targets for more sustainable operations. 3. Improved management systems Sustainability reporting involves tracking and gathering data which when evaluated can identify the areas that need improvement. In addition, public reporting on performance motivates companies to improve in succeeding reporting periods, thus, resulting to improvement in management systems, such as streamlining o f processes, reduction o f costs and over-all improvement in efficiency and productivity. 4. Motivated workforce Creating a sustainability report requires a concerted effort from companies' employees, exposing them to the companies' commitment to sustainability. Research have shown that there is a significant positive relationship between perceived environmental performance and employee 6

satisfaction8. Knowing that the company is environmentally and socially conscious increases morale and motivates the workforce to work hard for the company. External Benefits 1. Improved company reputation and brand value Having a sustainability report indicates the companies' commitment to full transparency and accurate and complete reporting on both positive and negative news. Moreover, it shows the companies' efforts towards sustainability. This improves the company's image and builds trust and respect for the company. Thereby, improving company reputation and brand value. 2. Investor attractiveness Institutional investors are now looking at the ESG practices o f companies and makes this a key element in their investment analysis and decisions. In the CFA Institute Survey conducted in 2017, 73% of the survey respondents answered that they take into account ESG issues in their investment analysis and decisions.9 Sustainability reporting, thus, provides institutional investors easy access to ESG information o f companies. A t the same time, it allows companies to discuss their sustainability performance in a clear and concise manner. 3. Stakeholder engagement The process o f sustainability reporting provides companies with opportunities for stronger engagement with their stakeholders, which in turn can result in better relationships with them. Stakeholders would feel empowered while the companies can gain valuable insights beneficial to their sustainability journey. 4. Competitive advantage Awareness on sustainability reporting is still quite low for most Philippine companies. As such, having a sustainability report may provide companies with a competitive advantage. This competitive advantage may be in any o f the abovementioned internal and external benefits. Sustainability Reporting Principles The Reporting Principles for defining report quality guide choices on ensuring the quality o f information in a sustainability report, including its proper presentation. The quality o f information is important for enabling stakeholders to make sound and reasonable assessments o f an organization, and to take appropriate actions. For more information read GRI 101: Foundation. * W a l s h , Cassandra & S u l k o w s k i , A d a m . (2009). A Greener Company Makes for Happier Employees M o r e so than Does a M o r e Valuable One: A Regression Analysis of Employee Satisfaction, Perceived Environmental Performance and Firm Financial Value. Interdisciplinary Environmental Review. 11. 10.2139/ssrn.1521745. ' C F A Institute, "Environmental, Social and Governance (ESG) Survey" (2018) https/Avww.cfainstitute org/-/media/documents/survcy/esg- survey-report-2017ashx 7

I. Materiality A n organization is faced with a wide range o f topics on which it can report. Relevant topics, which potentially merit inclusion in the report, are those that can reasonably be considered important for reflecting the organization's economic, environmental, and social impacts, or influencing the decisions of stakeholders. In this context, 'impact' refers to the effect an organization has on the economy, the environment, and/or society (positive or negative). A topic can be relevant - and so potentially material - based on only one o f these dimensions. For purposes of this Guidelines, and as defined in the GRI Standards, 'impact' shall refer to the effect an organization has on the economy, the environment, and/or society, which in turn can indicate its contribution (positive or negative) to sustainable development. Reporting organizations are also expected to report on their impacts that are directly linked to their activities, products, or services through a business relationship. It should be noted that 'impact" does not refer to an effect upon an organization, such as a change to its reputation. 2. Stakeholder Inclusiveness The reporting organization should provide insight into the nature and quality o f the organization's relationships with its key stakeholders, including how and to what extent the organization understands, takes into account and responds to their legitimate needs and interests. Stakeholders provide useful insights about matters that are important to them, including economic, environmental and social issues that also affect the ability o f the organization to create value. 3. Balance Reporting must have no bias in the selection or presentation o f information. The reported information shall reflect positive and negative aspects o f the reporting organization's performance to enable a reasoned assessment o f overall performance. Reporting may also be compared against previously reported targets, projections, and expectations. 4. Completeness The reporting organization should consider the extent o f information disclosed and its level o f specificity or preciseness, which might involve considering potential concerns regarding cost/benefit, competitive advantage, and future-oriented information. 5. Reliability The reporting organization should gather, record, compile, analyze, and report information and processes used in the preparation o f the report (similar to maintaining an audit trail) in a way that they can be subjected to examination, and that establishes the quality and materiality o f the information. 8

6. Accuracy The reported information should be sufficiently accurate and detailed for stakeholders to assess the reporting organization's performance. Reports should include proper citation o f information sources, including estimated data and methodology for estimation. 7. Consistency and Comparability The information in the report should be presented on a basis that is consistent over time and in a way that enables analysis o f any changes in the organization's performance over time. It must also be presented in a way that enables comparison with other organizations to the extent it is material to the organization's own ability to create value over time. SUSTAINABILITY REPORTING FRAMEWORK FOR PHILIPPINE PLCS The over-all sustainability reporting framework for Philippine PLCs follows this structure: We conduct our businesses in Corporate Governance an ETHICAL and RESPONSIBLE manner OUR COMPANY is a Economic Sustainable Business Environmental We manage our KEY IMPACTS Social Our products and services Contribution to Sustainable create VALUE TO SOCIETY Development With this framework in mind, this sustainability reporting guidelines is crafted for PLCs operating in the Philippines with a goal o f making sustainability reporting relevant and value-adding for companies. The Guidelines focuses on economic, environmental and social disclosures since governance disclosures are made in the Integrated Annual Corporate Governance Report (I-ACGR) submitted separately to SEC. Beyond the purpose o f transparency, it is designed to help PLCs assess their non-financial performance across environment, economic, and social aspects o f their organization to optimize business operations, improve competitiveness, and long-term success. Disclosures contained in this guidelines are those that contribute to describing and measuring the company's sustainability performance. Broadly, sustainability performance is measured in the way the corporation conducts its business, and how it manages its key economic, environmental and social impacts. It builds on the principles and metrics provided by the GRI 9

Standards, SASB Standards, TCFD Recommendation and other internationally accepted standards for non- financial reporting. The terms economic, environmental and social are defined as follows10: Economic Environmental Social An organization's impact on the An organization's impact on An organization's internal and economic conditions of its living and non-living natural external impact/s on the social stakeholders and on economic systems, including land, air, systems within which it operates. systems at local, national and water and ecosystems. global levels. It does not focus only on the financial condition of the organization. Disclosure Topics Disclosures should reflect the organization's significant economic, environmental, and social impacts and should consider the reasonable expectations and interests o f key stakeholders." Disclosures should also address the organization's climate-related risks and opportunities (climate-related issues). Whenever applicable, these disclosures should be quantifiable and measurable, effectively providing a snapshot o f an organization's non-financial performance for the reporting period. The quality and content o f the disclosures should also be aligned with widely recognized reporting principles. The Disclosures shall be made using the Annex A: Reporting Template. Again, for companies already reporting in accordance with internationally recognized sustainability frameworks or standards, their sustainability reports shall be considered as their compliance. For additional guidance on the disclosure topics, you may refer to Annex B: Topic Guide. "' Adopted from Definitions found in the G R I Standards " SeeGRl Standards 101: Foundation 2016 10

I. Economic Economic disclosures relate to how the company directly increases the pool o f economic resources that flows in the local and national economy. Included in the disclosures are the risks and opportunities due to climate change, procurement practices with respect to local suppliers and anti-corruption. ECONOMIC Economic Procu rement Anti-corruption Performance PraiSices Training on Anti- Direct Economic Proportion of corruption Policies and Value Generated & spending on local Procedures Distributed suppliers Incidents of Corruption Climate Related Risks and Opportunities 11

2. Environment Environmental disclosures relate to how the company manages the natural resources it needs for its business, as well as how it minimizes its negative impacts to the environment, including biodiversity. The company's ability to access materials needed for its operations is critical to company's long-term success. ENVIRONMENT Resource Ecosystem and Environmental Environmental Management Biodiversity Impact Compliance Energy Watersheds Air Emission Solid and Effluents Hazardous Waste Water Marine GHG Materials ! lUCN'/KBA2 NCxSox,PM 'International Union for the Conservation of Nature 2Key Biodiversity Areas 12

3. Social Disclosures on social topics relate to how the organization manages its relationship with its stakeholders such as employees, customers, suppliers, communities, the public and the government. It includes disclosures on issues related to human rights, access to and quality of products and services, responsible business practices in marketing, customer privacy and data security. SOCIAL Employee Occupational Health Significant Customer Hiring and and Safety Impacts on Satisfaction Benefits Labor Standards and Local Employee Human Rights Communities Training and Development Marketing and Labelling Labor- Management Customer Privacy Relations Diversity, Equal Opportunity & Anti- Discrimination 13

A. UN Sustainable Development Goals The United Nations Sustainable Development Goals (SDGs) are a universal call to action, to end poverty, protect the planet and ensure that all people enjoy peace and prosperity and includes seventeen (17) goals seen below. Disclosure would be required on how companies are able to contribute to the SDGs through their products and services. SUSTAINABLE DEVELOPMENT 4 0UM1TT t u n Mia IDUCHIO* mmmm lii 8 KCOn*WXMB UmwwmKmt Kauum tctMMcawm ID mmm 47 PJBIMKwre II HMIHIGOMS KSIIIUIMC SUSTAINABLE DEVELOPMENT GOALS Materiality Assessment In sustainability reporting, materiality is the principle that determines which relevant topics are sufficiently important that it is essential to report on them. The global standards/frameworks for reporting sustainability presented in the introduction (GRI, SASB, 1IRC and TCFD) propose different but related definitions o f materiality, which focus on the following elements: � Significant economic, environmental, and social impacts o f the organization � Information that substantively influence the assessments and decisions o f stakeholders, including investors � Matters that substantively affect the organization's ability to create value over the short, medium and long term A topic may be considered material i f it falls into any o f the following: 1. It is a K E Y C A P I T A L / R I S K / O P P O R T U N I T Y that impacts value creation 2. Your K E Y B U S I N E S S A C T I V I T I E S impact the topic 14

3. Your S U B S I D I A R I E S / C O N T R A C T O R S / S U P P L Y C H A I N contribute significant impacts to this topic 4. Your P R O D U C T S / S E R V I C E S contribute impacts to this topic 5. There is a T R E N D that points to a future where this topic will become material to you The assessment of materiality associated with sustainability issues should take into account their influence on the stakeholders assessments and decisions and the significance o f the company's economic, social and environmental impacts. This can be analyzed and reported using a materiality matrix (shown below) that ranks the importance o f sustainability issues based on the impact on the company and its stakeholders. Materiality Matrix far Sustainability Issues (Illustrative) j0OCJ High ID c O Medium Significance of economic, environmental and social impacts For guidance on possible material topics for your sector/industry, you may refer to the SASB Materiality Map at https://materiality.sasb.org/. 15

Suggested Materiality Assessment Process In general, a disclosure is considered material i f it reflects the significant economic, environmental, and social impacts o f the organization o f the stakeholders, and the capacity o f the stakeholders to influence the economic, environmental and social impacts or activities o f the organization. Please see below the suggested materiality assessment process adopted from the Bursa Malaysia Sustainability Reporting Guide: Objective Stakeholder and Scope Engagement Engaging the stakeholders will Sustainability issues enable the company to The objective include the may be taken from have a grasp on the identification of relevant sustainability disclosures to board committee reports, risk sustainability threats allow stakeholders to make decisions based on these management assessments, and opportunities that disclosures. management meetings, the company is not government regulations, aware of. international standards, stakeholder feedback and complaints, media review, and Prioritization of external peer review. disclosures that will be reported is based on the The top management impact of such reviews and approve the 5 disclosure to the disclosures that will be rProcess stakeholders and the reported by the Review Prioritization capacity of the company to ensure stakeholders to integrity and credibility. influence the company regarding such disclosure. Management Approach Disclosures should also be accompanied by a management approach which describes the management o f material sustainability issues. This includes explaining how the organization (1) avoids, mitigates, or remediates negative impacts to the economy, environment, and society, and enhances positive ones, and (2) addresses its climate-related issues. The management approach also includes an assessment o f material risks and opportunities associated with sustainability, management and oversight o f such opportunities and risks at the highest level of the organization and performance assessment, using key performance indicators. These approaches can be in the form o f organization policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms as well as processes, projects, programs, and initiatives. See GRI 103 for more guidance on the management approach. 16

Reporting organization should report on the management approach for each material issue with the following information12: a. A n explanation on the materiality o f the topic; b. The boundary for the material topic, which includes a description o f where the impacts occur, and the organization's involvement with the impacts. c. A n explanation o f how the organization manages the topic and the objectives. Management Approach Components When reporting on the management approach for a material topic, the reporting organization should ideally include a description o f the following components, when applicable13: i. Policies Summary or link to the publicly available policies relevant to the topic. ii. Commitments Intent o f the organization to manage the impacts related to the topic (e.g., for regulatory compliance, compliance with international standards). iii. Goals and targets Highlights o f the following: (i) baseline and context; (ii) expected result (quantitative or qualitative); and (iii) expected timeline for achieving each goal and target. iv. Responsibilities Assigned responsibility for managing the topic and whether the responsibility is linked to performance assessments or incentive mechanisms. v. Resources Financial, human, or technological resources allocated for managing the topic. vi. Grievance mechanisms Highlights o f the following: (i) purpose o f the mechanism; (ii) activities covered by the mechanism; (iii) how the mechanism is managed; (iv) process to address and resolve grievances, including how decisions are made; and (v) effectiveness criteria used. v i i . Specific actions, such as processes, projects, programs and initiatives May include actions that aim to avoid, mitigate, or remediate the negative impacts relative to chosen topic; and whether actions take international norms/standards into account. 1 2 This material references G R I Disclosure 103-1 "Explanation o f the Material Topic and its Boundary" from G R I 103: Management Approach 2016 (GRI, 2016). " This material references G R I Disclosure 103-2 "The management approach and its components" from G R I 103 Management Approach 2016 (GRI, 2016) 17

Annex A: Reporting Template (For additional guidance on how to answer the Topics, organizations may refer to Annex B: Topic Guide) Contextual Information Company Details Name of Organization Location of Headquarters Location of Operations Report Boundary: Legal entities (e.g. subsidiaries) included in this report* Business Model, including Primary Activities, Brands, Products, and Services Reporting Period Highest Ranking Person responsible for this report * If you are a holding company, you could have an option whether to report on the holding company only or include the subsidiaries. However, please consider the principle of materiality when defining your report boundary. Materiality Process Explain how you applied the materiality principle (or the materiality process) in identifying your material topics.14 1 4 See GRI 102-46 ( 2 0 1 6 ) for more guidance 18

ECONOMIC Economic Performance Direct Economic Value Generated and Distributed Disclosure Amount Units Direct economic value generated (revenue) PhP Direct economic value distributed: PhP a. Operating costs PhP b. Employee wages and benefits Php c. Payments to suppliers, other operating costs PhP d. Dividends given to stockholders and interest payments PhP to loan providers PhP e. Taxes given to government f. Investments to community (e.g. donations, CSR) What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization 19

Climate-related risks and opportunities Disclose the Disclose the actual and Disclose how the Disclose the metrics organization identifies, and targets used to organization's potential impacts16 of assesses, and manages assess and manage climate-related risks relevant climate- governance around climate-related risks related risks and a) Describe the opportunities where climate-related risks and opportunities on organization's such information is processes for material and opportunities the organization's identifying and assessing climate- a) Disclose the businesses, strategy, related risks metrics used by the organization to and financial planning assess climate- related risks and where such opportunities in line with its information is material strategy and risk Recommended Disclosures management process a) Describe the a) Describe the board's oversight of climate-related climate-related risks and risks and opportunities the opportunities organization has identified over the short, medium and long term b) Describe b) Describe the b) Describe the b) Describe the management's role impact of climate- organization's targets used by the in assessing and related risks and processes for organization to managing climate- opportunities on managing climate- manage climate- related risks and the organization's related risks related risks and opportunities businesses, opportunities and strategy and c) Describe how performance financial planning. processes for against targets identifying, c) Describe the assessing, and resilience of the managing climate- organization's related risks are strategy, taking integrated into the into consideration organization's different climate- overall risk related scenarios management including a 2�C or lower scenario 15 Adopted from the Recommendations o f the Task Force on Climate-Related Financial Disclosures. The T C F D Recommendations apply to non- financial companies and financial-sector organizations, including banks, insurance companies, asset managers and asset owners. For this disclosure, impact refers to the impact o f climate-related issues on the company. 20

Procurement Practices Quantity Units Proportion of spending on local suppliers % Disclosure Percentage of procurement budget used for significant locations of operations that is spent on local suppliers What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Anti-corruption Quantity Units Training on Anti-corruption Policies and Procedures % % Disclosure Percentage of employees to whom the organization's anti- % corruption policies and procedures have been communicated to Percentage of business partners to whom the organization's anti-corruption policies and procedures have been communicated to Percentage of directors and management that have received anti-corruption training 21

Percentage of employees that have received anti-corruption % training What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Incidents of Corruption Quantity Units Disclosure # Number of incidents in which directors were removed or disciplined for corruption # Number of incidents in which employees were dismissed or disciplined for corruption # Number of incidents when contracts with business partners were terminated due to incidents of corruption What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? 22

Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization 23

ENVIRONMENT Quantity Units GJ Resource Management GJ GJ Energy consumption within the organization: GJ Disclosure kWh Energy consumption (renewable sources) Energy consumption (gasoline) Energy consumption (LPG) Energy consumption (diesel) Energy consumption (electricity) Reduction of energy consumption Quantity Units GJ Disclosure GJ Energy reduction (gasoline) GJ Energy reduction (LPG) kWh Energy reduction (diesel) GJ Energy reduction (electricity) Energy reduction (gasoline) What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? 24

Identify the opportunity/ies related to material topic of the organization Water consumption within the organization Quantity Units Disclosure Cubic Water withdrawal meters Water consumption Cubic meters Water recycled and reused Cubic meters What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Materials used by the organization Quantity Units kg/liters Disclosure Materials used by weight or volume 25 � renewable

� non-renewable kg/liters Percentage of recycled input materials used to manufacture the % organization's primary products and services What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? groups) Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Ecosystems and biodiversity (whether in upland/watershed or coastal/marjjiel Disclosure Quantity Units Operational sites owned, leased, managed in, or adjacent to, (identify all sites) protected areas and areas of high biodiversity value outside protected areas Habitats protected or restored ha IUCN17 Red List species and national conservation list species (list) with habitats in areas affected by operations What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? 7 International Union for Conservation o f Nature 26

organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Environmental impact management Quantity Units Air Emissions Tonnes GHG C02e Tonnes Disclosure C02e Direct (Scope 1) GHG Emissions Tonnes Energy indirect (Scope 2) GHG Emissions Emissions of ozone-depleting substances (ODS) What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or 27

linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Air pollutants Quantity Units Disclosure kg NO, kg kg sox kg kg Persistent organic pollutants (POPs) kg Volatile organic compounds (VOCs) Hazardous air pollutants (HAPs) Particulate matter (PM) What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization 28

What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Solid and Hazardous Wastes Quantity Units Solid Waste kg kg Disclosure kg Total solid waste generated kg kg Reusable kg Recyclable Composted Incinerated Residuals/Landfilled What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization 29

Hazardous Waste Quantity Units Disclosure kg Total weight of hazardous waste generated kg Total weight of hazardous waste transported What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Effluents Quantity Units Disclosure Cubic Total volume of water discharges meters % Percent of wastewater recycled What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? 30

Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization Environmental compliance Quantity Units Non-compliance with Environmental Laws and Regulations PhP Disclosure # Total amount of monetary fines for non-compliance with environmental laws and/or regulations # No. of non-monetary sanctions for non-compliance with environmental laws and/or regulations No. of cases resolved through dispute resolution mechanism What is the impact and where Which stakeholders are Management Approach does it occur? What is the affected? organization's involvement in the impact? Identify the impact and where it (e.g. employees, What policies, commitments, goals and targets, responsibilities, resources, occurs (i.e., primary business community, suppliers, grievance mechanisms, and/or projects, programs, and initiatives do you have to operations and/or supply chain) government, vulnerable manage the material topic? Indicate involvement in the impact groups) (i.e., caused by the organization or linked to impacts through its business relationship) 31

What are the Risk/s Identified? Which stakeholders are Management Approach affected? Identify risk/s related to material topic of the organization What are the Opportunity/ies Which stakeholders are Management Approach Identified? affected? Identify the opportunity/ies related to material topic of the organization 32

SOCIAL Employee Management Employee Hiring and Benefits Disclosure Quantity Units Total number of employees18 # a. Number of female employees rate b. Number of male employees ratio Attrition rate19 Ratio of lowest paid employee against minimum wage Employee benefits Y/N % of female employees %of male employees List of Benefits who availed for the who availed for the sss year year PhilHealth Pag-ibig Parental leaves Vacation leaves Sick leaves Medical benefits (aside from PhilHealth)) Housing assistance (aside from Pag- ibig) Retirement fund (aside from SSS) Further education support Company stock options Telecommuting Flexible-working Hours (Others) What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? " Employees are individuals w h o are in an employment relationship w i t h the organization, according to national law or its application ( G R I Standards 2016 Glossary) 1 ' Attrition are = (no. o f new hires - no. o f turnover)/(average o f total no. o f employees o f previous year and total no. o f employees o f current year) 33

Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Employee Training and Development Quantity Units Disclosure hours Total training hours provided to employees hours a. Female employees hours/employee b. Male employees hours/employee Average training hours provided to employees a. Female employees b. Male employees What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Labor-Management Relations Quantity Units � Disclosure 34

% of employees covered with Collective Bargaining % Agreements Number of consultations conducted with employees # concerning employee-related policies What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Diversity and Equal Opportunity Disclosure Quantity Units % of female workers in the workforce % % of male workers in the workforce % Number of employees from indigenous communities and/or # vulnerable sector* Vulnerable sector includes, elderly, persons with disabilities, vulnerable women, refugees, migrants, internally displaced persons, people living with HIV and other diseases, solo parents, and the poor or the base of the pyramid (BOP; Class D and E). What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach 35

Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Workplace Conditions, Labor Standards, and Human Rights Occupational Health and Safety Quantity Units Man-hours Disclosure # Safe Man-Hours No. of work-related injuries # No. of work-related fatalities No. of work related ill-health No. of safety drills What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Labor Laws and Human Rights Quantity Units Disclosure n No. of legal actions or employee grievances involving forced or child labor Do you have policies that explicitly disallows violations of labor laws and human rights (e.g. harassment, bullying) in the workplace? 36

Topic Y/N If Yes, cite reference in the company policy Forced labor Child labor Human Rights What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you Indicate involvement in the impact (i.e., caused by the have to manage the material topic? organization or linked to impacts through its business relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Supply Chain Management Do you have a supplier accreditation policy? If yes, please attach the policy or link to the policy: Do you consider the following sustainability topics when accrediting suppliers? Topic Y/N If Yes, cite reference in the supplier policy Environmental performance Forced labor Child labor Human rights Bribery and corruption What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, 37

Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Relationship with Community Significant Impacts on Local Communities Operations Location Vulnerable Does the Collective or Mitigating with significant groups (if particular individual measures (if (positive or applicable)* operation rights that negative) or negative) have have been enhancement impacts on impacts on identified that measures (if local indigenous or particular positive) people concern for the communities (Y/N)? community (exclude CSR projects; this has to be business operations) *Vulnerable sector includes children and youth, elderly, persons with disabilities, vulnerable women, refugees, migrants, internally displaced persons, people living with HIV and other diseases, solo parents, and the poor or the base of the pyramid (BOP; Class D and E) For operations that are affecting IPs, indicate the total number of Free and Prior Informed Consent (FPIC) undergoing consultations and Certification Preconditions (CPs) secured and still operational and provide a copy or link to the certificates if available: Certificates Quantity Units FPIC process is still undergoing # CP secured # 38

What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Customer Management Score Did a third party conduct the customer satisfaction Customer Satisfaction study (Y/N)? Disclosure Customer satisfaction What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Health and Safety Disclosure Quantity Units No. of substantiated complaints on product or service # health and safety* No. of complaints addressed # *Substantiated complaints include complaints from customers that went through the organization's formal communication channels and grievance mechanisms as well as complaints that were lodged to and acted upon by government agencies. 39

What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Marketing and labelling Disclosure Quantity Units No. of substantiated complaints on marketing and # labelling* No. of complaints addressed *Substantiated complaints include complaints from customers that went through the organization's formal communication channels and grievance mechanisms as well as complaints that were lodged to and acted upon by government agencies. What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization 40

Customer privacy Disclosure Quantity Units No. of substantiated complaints on customer privacy* # No. of complaints addressed No. of customers, users and account holders whose # information is used for secondary purposes *Substantiated complaints include complaints from customers that went through the organization's formal communication channels and grievance mechanisms as well as complaints that were lodged to and acted upon by government agencies. What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, Indicate involvement in the impact (i.e., caused by the and/or projects, programs, and initiatives do you organization or linked to impacts through its business have to manage the material topic? relationship) What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization Data Security Quantity Units Disclosure n No. of data breaches, including leaks, thefts and losses of data What is the impact and where does it occur? What Management Approach is the organization's involvement in the impact? Identify the impact and where it occurs (i.e., primary What policies, commitments, goals and targets, business operations and/or supply chain) responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you Indicate involvement in the impact (i.e., caused by the have to manage the material topic? organization or linked to impacts through its business relationship) 41

What are the Risk/s Identified? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Management Approach Identify the opportunity/ies related to material topic of the organization 42

UN SUSTAINABLE DEVELOPMENT GOALS Product or Service Contribution to UN SDGs Key products and services and its contribution to sustainable development. Key Products and Societal Value/ Potential Negative Management Approach Services Contribution to UN SDGs Impact of Contribution to Negative Impact * None/Not Applicable is not an acceptable answer. For holding companies, the services and products of its subsidiaries may be disclosed. 43

Annex B: Topic Guide In line with the Disclosure Topic and Management Approach discussion above, this Annex will provide a guide on what to disclose in the Topics provided in the Reporting Template. The guide is based on the GRI Standards, SASB Standards and Recommendations o f the Task Force on Climate-related Financial Disclosures. ECONOMIC Economic disclosures relate to how the company directly increases the pool o f economic resources that flows in the local and national economy. Included in the disclosures are the risks and opportunities due to climate change, procurement practices with respect to local suppliers and anti-corruption. Economic Performance Measuring the direct economic value generated, measured as revenue and distributed (costs) shows that an organization does not just create economic value for itself but also ensures that this value flows back to its various stakeholders such as stockholders, suppliers, employees, government, and the community. This also discloses the remaining value that is retained in the company for liquidity and for future investments. Figures for this disclosure can be derived using the audited financial statement with the revenue as the economic value generated for the reporting period. This disclosure answers the questions: How much direct economic value (revenue) did you generate? � How much o f this flowed back to society (costs disaggregated according to stakeholders)? � How much o f this was retained in the company for liquidity and to fund future investments? See GRI 201-1 for more guidance on the disclosure. Disclosure o f an organization's climate-related issues helps stakeholders make sound and reasonable assessments o f the impact climate change may have on the organization. Companies should disclose the climate-related risks and opportunities they have identified and how they assess and manage those issues. See GRI 201-2 and the Recommendations of the Task Force on Climate-related Financial Disclosures for more guidance on the disclosure. Procurement Practices Disclosure on the proportion o f spending on local suppliers show's an organization's support for local groups, including those owned by women or members o f vulnerable sectors. Supporting local suppliers can indirectly attract additional investments to the local economy. The disclosure describes the policies and practices used to select locally-based suppliers and to promote economic inclusion when selecting suppliers. See GRI 204 for more guidance on disclosures Anti-corruption Disclosures on training on anti-corruption policies and procedures show how the company ensures that it has the necessary capability to fight against corruption through proper training and awareness building for 44

its directors, management, employees and business partners. Disclosures on incidents o f corruption and how the company responded on the incidents show how serious an organization is on combatting corruption. See GRI 205 and SASB Standards General Issue Category: Business Ethics for more guidance on the disclosures. ENVIRONMENT Environmental disclosures relate to how the company manages the natural resources it needs for its business, as well as how it minimizes its negative impacts to the environment, including biodiversity. The company's ability to access materials needed for its operations is critical to company's long-term success. Resource Management Disclosures on resource management such as energy consumption, water consumption, and materials use show how efficiently an organization uses scarce natural resources, which has implications on reduction o f environmental impacts from extraction and processing o f these resources. The efficiency o f managing resources relates to profitability o f the organization. See GRI 301, GRI 302, GRI 303 and SASB Standards General Issue Categories: Energy Management: Water and Wastewater Management: Material Sourcing and Efficiency for more guidance on the disclosures. Ecosystems and Biodiversity Disclosure on activities that show how an organization protects, conserves, or rehabilitates ecosystems and biodiversity therein such as in watersheds and coastal and marine areas gives an idea o f how that organization appreciates the ecosystem and the services it gives that make business thrive. Ecosystems and Biodiversity is vital to human existence. Companies have the responsibility and clear business case for ensuring ecosystems and biodiversity around its sites are protected and restored. See GRI 303, GRI 304 and SASB Standards General Issue Category: Ecological Impacts for more guidance on the disclosures. Environmental Impact Management Reporting on an organization's impact on air, soil, and water through emissions, wastes, and effluents provides basis for companies to manage these impacts. Responsible companies take an effort to minimize such impacts through cleaner production and pollution prevention measures. Companies should disclose on their performance on these topics including how well the organization mitigates, reduces, and/or prevents these impacts to the environment in compliance to Philippine Environmental Laws or on efforts beyond compliance. See GRI 305, GRI 306 and SASB Standards General Issue Categories: GHG Emissions; Air Quality: Water & Wastewater Management: Waste & Hazardous Materials Management for more guidance on the disclosures. Environmental Compliance Disclosure on an organization's compliance with environmental laws and/or regulations shows an organization's ability to conform to certain performance parameters. The strength o f an organization's compliance indicates its concern for environmental protection. See GRI 307 and SASB Standards General Issue Categories: Ecological Impacts; Air Quality; Water & Wastewater Management; Waste and Hazardous Materials Management for more guidance on the disclosures. 45

SOCIAL Disclosures on social topics relate to how the organization relates and manages its relationship with its stakeholders such as employees, communities, customers, and suppliers. Employee Management Disclosing on employee management indicates o f how good an employer the organization is in engaging its employees. It also provides a sense on how the organization develops its employees and gives equal opportunity for all, such as indigenous people and those coming from vulnerable groups which include elderly, persons with disabilities, vulnerable women, refugees, migrants, internally displaced persons, people living with H I V and other diseases, solo parents, and the poor or the base o f the pyramid (BOP; Class D and E). See GRI401, GRI 402, GRI 404, GRI 405, GRI 406, GRI 407, GRI 102-8, GRI 102-41 and SASB Standards General Issue Categories: Labor Practices; Employee, Engagement Diversity & Inclusion for more guidance on the disclosures. Workplace Conditions,Labor Standards and Human Rights Disclosures on workplace conditions and labor standards show how an organization gives importance to occupational health and safety and how it upholds labor standards and human rights in the workplace. See GRI 403. GRI 408. GRI 409. GRI 412 and SASB Standards General Issue Category; Employee Health & Safety for more guidance on the disclosures. Supply Chain Management Disclosures on supply chain management is most relevant for companies with a significant portion of value creation carried out by suppliers. Organizations can report on how the reporting company ensures that supplier upholds with sustainability standards and practices including compliance to Philippine laws. The reporting company may also disclose how it influences its suppliers to be sustainable through supplier accreditation processes, among other approaches. See GRI 308, GRI 414 and SASB Standards General Issue Category: Supply Chain Management for more guidance on the disclosures. Relationship with Community These disclosures show how an organization meaningfully engages the community around their sites and how it aims to create a net positive impact to its host or neighbors. These also includes how the company contributes in addressing issues o f indigenous people and those coming from vulnerable groups [youth, elderly, persons with disabilities, vulnerable women, refugees, migrants, internally displaced persons, people living with H I V and other diseases, solo parents, and the poor or the base o f the pyramid (BOP; Class D and E)] in its business operations. See GRI 411. GRI 412. GRI 413 and SASB Standards General Issue Category: Human Rights & Community Relations for more guidance on the disclosures. Customer Management Disclosing on customer management shows how well an organization upholds the rights o f its customers to privacy, safety, and security from probable negative impacts o f its products and services. See GRI 416, GRI 417, GRI 418 and SASB Standards General Issue Categories: Product Quality & Safety; Customer Welfare; Selling Practices & Product Licensing for more guidance on the disclosures. 46

Data Security Reporting on the number o f data breaches, including leaks, thefts and losses o f data shows how much importance an organization places on keeping data secure. Organizations can indicate how they manage risks related to the collection, retention and use o f sensitive information. See SASB Standards General Issue Category: Data Security for more guidance on the disclosure. UN SUSTAINABLE DEVELOPMENT GOALS The SDG Compass can be used as guidance for companies on how they can align their strategies as well as measure and manage their contribution to the realization o f the SDGs. The SDG Compass can be accessed at https://sdgcompass.org/ Moreover, a recent publication with the title: Integrating the SDGs into Corporate Reporting: A Practical Guide?0 helps companies o f all sizes to prioritize SDG targets to act and report on, set related business objectives, and measure and report on progress. This is a co-production between GRI and U N Global Compact (UNGC). Companies may also use the following framework to determine which area o f sustainable development its company is contributing to improve people's quality o f life. WATERSHEDS & J WATERS UPLAND 1 SANITATION ECOSYSTEMS COASTAL & AGRICULTURE & |_ F00D& HEALTH & MARINE FISHERIES J NUTRITION WELL BEING ECOSYSTEMS Waste (Circular Economy Loop) EDUCATION LAND INDUSTRIAL HUMAN IMPROVED MATERIALS SYSTEMS SETTLEMENTS QUALITY OF LIFE ENERGY DECENT WELFARE OF STRONG WORK VULNERABLE INSTITUTIONS GROUPS For more information on how private sector can contribute to sustainable development, companies may visit www.sdftsbiz.ph. This publication may be accessed at https://www.globalreporting.org/resourcelibrary/GRI_UNGC_Reporting-on-SDGs_Practical_Guide.pdf 47