Draft Sustainability Reporting Guidelines and Reporting Template for Publicly-Listed Companies

December 14, 2018 SEC NOTICE SUBJECT : Draft Sustainability Reporting Guidelines and Reporting Template for Publicly-Listed Companies Please find attached the updated draft Sustainability Reporting Guidelines and Reporting Template for Publicly-Listed Companies. The public is again invited to submit their comments, feedback and input on the updated Guidelines and Reporting Template on or before 11 January 2019 (Friday) . It is requested that comments/input be emailed to [emailprotected] using the template provided. Issued on December 14, 2018. CAIHTE ATTACHMENT Comments on the Draft Sustainability Reporting Guidelines and Template for Publicly-Listed Companies Name: _________________________________ Company: ________________________________ PORTION of the SUSTAINABILITY REPORTING GUIDELINES AND TEMPLATE COMMENTS PROPOSED CHANGE Sustainability Reporting Guidelines for 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% of the world's largest 250 companies and 75% of the top 100 companies in 49 countries report on sustainability. 1 However, for the Philippines, less than 22% of 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 of 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 of the same Code further provides as follow: "The board should have a clear and focused policy on the disclosure of non-financial information, with emphasis on the management of economic, environmental, social and governance (EESG) issues of 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 manage their non-financial performance across EES aspects of 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 Enable PLCs to measure and monitor its 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 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 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 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. DETACa SUSTAINABILITY AND SUSTAINABILITY REPORTING Sustainability is defined as "development that meets the needs of the present without compromising the ability of 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 of 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 of 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 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 Standards Board's (SASB) Sustainability Accounting Standards, and the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). 5 The GRI Standards has a comprehensive reporting requirement covering 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 of 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 80 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 of 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 table below distinguishes the reporting standards/frameworks and compares the guiding principles for defining report content and sustainability topics covered in each. More information can be found in the full guidance documents for these reporting standards/frameworks that can be access via their websites. aDSIHc Coverage Reporting Standards/Frameworks GRI IR Framework SASB TCFD General Sustainability Topics Economic Environmental Social Financial capital Manufactured capital Intellectual capital Human capital Social and relationship capital Natural capital Business model and innovation Leadership and governance Human capital Social capital Environment Climate-related Financial Disclosure Climate-Related Risks, Opportunities, and Financial Impacts Scenario Analysis and Climate-Related Issues Guiding Principles For defining report content: Stakeholder inclusiveness Sustainability content Materiality Completeness For defining report quality: Accuracy Balance Clarity Comparability Reliability Timeliness Strategic focus and future orientation Connectivity of information Stakeholder relationships Materiality Conciseness Reliability and completeness Consistency and comparability For topic selection: Financial materiality, based on (i) potential to affect corporate value or (ii) interest of investors Relevant across an industry Actionable by companies Reflective of stakeholder consensus For accounting metrics: Fair representation Useful Applicable Comparable Complete Verifiable Aligned Neutral Distributive Climate-Related Financial Impacts: Transition Risks Policy and Legal Technology Market Reputation Physical Risks Chronic Acute Opportunities Resource Efficiency Energy Source Products/Services Markets Resilience Thematic Areas: Governance Strategy Risk Management Metrics and targets Materiality "Material aspects" are those that reflect the organization's significant economic, environmental and social impacts; or that substantively influence the assessments and decisions of stakeholders A matter is material if it could substantively affect the organization's ability to create value in the short, medium, or long term A fact is material if there is a substantial likelihood that a reasonable investor would view its omission or misstatement as having significantly altered the total mix of information Public companies' legal obligation to disclose material information in their financial filings including material climate-related information More information can be found in the full guidance documents for these reporting frameworks that can be accessed in their respective websites. It can also be noted that 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 <IR> framework and discloses information in accordance with the GRI Standards. In addition to these four frameworks, the International Finance Corporation, the private sector arm of 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 of sustainability reporting and move toward integrated reporting, with guidance on how to development disclosure over time. Benefits of 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. Identification Effective management of sustainability risks and opportunities ETHIDa 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 of said risks and opportunities. 2. Sustainable Vision, Strategy and Business Plans Sustainability reporting encourages companies to assess, and if 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 of processes, reduction of costs and overall 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. Knowing that the company is environmentally and socially conscious increases morale and motivates the workforce to work hard for the company. External Benefits 1. Investor attractiveness Institutional investors are now looking at the ESG practices of companies and makes this a key element in their investment analysis and decisions. In CFA Institute Survey done in 2017, 73% of the survey respondents answered that they take into account ESG issues in their investment analysis and decisions. 8 Sustainability reporting, thus, provides institutional investors easy access to ESG information of companies. At the same time, it allows companies to discuss their sustainability performance in a clear and concise manner. TIADCc 2. 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. 3. Stakeholder Engagement The process of 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 of the abovementioned internal and external benefits. Sustainability Reporting Framework The overall sustainability reporting framework for Philippine PLCs follows this structure: OUR COMPANY is a Sustainable Business We conduct our businesses in an ETHICAL and RESPONSIBLE manner Corporate Governance We manage our KEY IMPACTS Economic Environmental Social Our products and services create VALUE TO SOCIETY Contribution to Sustainable Development With this framework in mind, this sustainability reporting guidelines is crafted for PLCs operating in the Philippines with a goal of 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 of transparency, it is designed to help PLCs assess their non-financial performance across environment, economic, and social aspects of 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 Standards, SASB Standards, TCFD Recommendation and other internationally accepted standards for non-financial reporting. The terms economic, environmental and social are defined as follows: 9 Economic Environmental Social An organization's impact on the economic conditions of its stakeholders and on economic systems at local, national and global levels. It does not focus only on the financial condition of the organization. An organization's impact on living and non-living natural systems, including land, air, water and ecosystems. An organization's internal and external impact/s on the social systems within which it operates. DISCLOSURE TOPICS Disclosures should reflect the organization's significant economic, environmental, and social impacts and should consider the reasonable expectations and interests of key stakeholders. 10 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 of an organization's non-financial performance for the reporting period (See Annex A: Reporting Template and Annex B: Topic Guide). The quality and content of the disclosures should also be aligned with widely recognized reporting principles. AIDSTE Economic Economic disclosures relate to how the company directly increases the pool of 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. 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. 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, and customer privacy. AaCTcI UN Sustainability 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. REPORTING PRINCIPLES The Reporting Principles for defining report quality guide choices on ensuring the quality of information in a sustainability report, including its proper presentation. The quality of information is important for enabling stakeholders to make sound and reasonable assessments of an organization, and to take appropriate actions. For more information read GRI 101: Foundation . EcTCAD Materiality An organization is faced with a wide range of 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. 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. 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 of these dimensions. 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, IIRC and TCFD) propose different but related definitions of materiality, which focus on the following elements: Significant economic, environmental, and social impacts of the organization Information that substantively influence the assessments and decisions of 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 if it falls into any of the following: 1. It is a KEY CAPITAL/RISK/OPPORTUNITY that impacts value creation 2. Your KEY BUSINESS ACTIVITIES impact the topic 3. Your SUBSIDIARIES/CONTRACTORS/SUPPLY CHAIN contribute significant impacts to this topic 4. Your PRODUCTS/SERVICES contribute impacts to this topic 5. There is a TREND 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 of the company's economic, social and environmental impacts. This can be analyzed and reported using a materiality matrix (shown below) that ranks the importance of sustainability issues based on the impact on the company and its stakeholders. HSAcaE Materiality Matrix for Sustainability Issues (Illustrative) For guidance on possible material topics for your sector/industry, you may refer to the SASB Materiality Map at https://materiality.sasb.org/ . AScHCD Suggested Materiality Assessment Process In general, a disclosure is considered material if it reflects the significant economic, environmental, and social impacts of the organization of the stakeholders, and the capacity of the stakeholders to influence the economic, environmental and social impacts or activities of the organization. Please see below the suggested materiality assessment process adopted from the Bursa Malaysia Sustainability Reporting Guide: Stakeholder Inclusiveness The reporting organization should provide insight into the nature and quality of 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 of the organization to create value. Balance Reporting must have no bias in the selection or presentation of information. The reported information shall reflect positive and negative aspects of the reporting organization's performance to enable a reasoned assessment of overall performance. Reporting may also be compared against previously reported targets, projections, and expectations. Completeness The reporting organization should consider the extent of information disclosed and its level of specificity or preciseness, which might involve considering potential concerns regarding cost/benefit, competitive advantage, and future-oriented information. Reliability The reporting organization should gather, record, compile, analyze, and report information and processes used in the preparation of the report (similar to maintaining an audit trail) in a way that they can be subject to examination, and that establishes the quality and materiality of the information. Accuracy The reported information should be sufficiently accurate and detailed for stakeholders to assess the reporting organization's performance. Reports should include proper citation of information sources, including estimated data and methodology for estimation. 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 of any changes in the organization's performance over time and comparison with other organizations to the extent it is material to the organization's own ability to create value over time. MANAGEMENT APPROACH Disclosures should also be accompanied by a management approach which describes the management of 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 of material risks and opportunities associated with sustainability, management and oversight of 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 of 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. Reporting organization should report on the management approach for each material issue with the following information: 11 a. An explanation on the materiality of the topic; b. The boundary for the material topic, which includes a description of where the impacts occur, and the organization's involvement with the impacts; c. An explanation of 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 of the following components, when applicable: 12 i. Policies Summary or link to the publicly available policies relevant to the topic. caITAC ii. Commitments Intent of the organization to manage the impacts related to the topic ( e.g. , for regulatory compliance, compliance with international standards). iii. Goals and targets Highlights of 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 of the following: (i) purpose of 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. vii. 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. ANNEX A Reporting Templates (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. 13 ECONOMIC Economic Performance Direct Economic Value Generated and Distributed Disclosure Amount Units Direct economic value generated (revenue) PhP Direct economic value distributed: 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 to loan providers PhP e. Taxes given to government PhP f. Investments to community ( e.g. , donations, CSR) PhP What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Climate-related risks and opportunities 14 ICHDca Governance Strategy Risk Management Metrics and Targets Disclose the organization's governance around climate-related risks and opportunities Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning where such information is material Disclose how the organization identifies, assesses, and manages climate-related risks Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material Recommended Disclosures a) Describe the board's oversight of climate-related risks and opportunities a) Describe the climate-related risks and opportunities the organization has identified over the short, medium and long term a) Describe the organization's processes for identifying and assessing climate-related risks a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process b) Describe management's role in assessing and managing climate-related risks and opportunities b) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy and financial planning b) Describe the organization's processes for managing climate-related risks b) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets c) Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios including a 2C or lower scenario c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management Procurement Practices Proportion of spending on local suppliers Disclosure Quantity Units Percentage of procurement budget used for significant locations of operations that is spent on local suppliers % Percentage of procurement budget used for significant locations of operations that is spent on women or members of vulnerable sectors % * 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 is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Anti-corruption Training on Anti-corruption Policies and Procedures Disclosure Quantity Units 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 % Percentage of employees that have received anti-corruption training % What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Incidents of Corruption Disclosure Quantity Units Number of confirmed incidents of corruption # Number of incidents in which employees were dismissed or disciplined for corruption # Number of confirmed incidents when contacts with business partners were terminated due to incidents of corruption # What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization ENVIRONMENT Resource Management Energy consumption within the organization : Disclosure Quantity Units Energy consumption (renewable sources) GJ Energy consumption (gasoline) GJ Energy consumption (LPG) GJ Energy consumption (diesel) GJ Energy consumption (electricity) kWh Reduction of energy consumption Disclosure Quantity Units Energy reduction (gasoline) GJ Energy reduction (LPG) GJ Energy reduction (diesel) GJ Energy reduction (electricity) kWh Energy reduction (gasoline) GJ What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Water consumption within the organization Disclosure Quantity Units Water withdrawal Cubic meters Water consumption Cubic meters Water recycled and reused Cubic meters What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Materials used by the organization Disclosure Quantity Units Materials used by weight or volume renewable kg/liters 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 does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Ecosystems and biodiversity (whether in upland/watershed or coastal/marine) Disclosure Quantity Units Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas (identify all sites) Habitats protected or restored ha IUCN 15 Red List species and national conservation list species with habitats in areas affected by operations (list) What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Environmental impact management Air Emissions GHG Disclosure Quantity Units Direct (Scope 1) GHG Emissions Tonnes CO 2 e Energy indirect (Scope 2) GHG Emissions Tonnes CO 2 e Emissions of ozone-depleting substances (ODS) Tonnes What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Air pollutants Disclosure Quantity Units NO x kg SO x kg Persistent organic pollutants (POPs) kg Volatile organic compounds (VOCs) kg Hazardous air pollutants (HAPs) kg Particulate matter (PM) kg What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Solid and Hazardous Wastes Solid Waste Disclosure Quantity Units Total solid waste generated kg Reusable kg Recyclable kg Composted kg Incinerated kg Residuals/Landfilled kg What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Hazardous Waste Disclosure Quantity Units Total weight of hazardous waste kg Amount of hazardous waste transported kg What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Effluents Disclosure Quantity Units Total volume of water discharges Cubic meters Percent of wastewater recycled % What is the impact and where does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization Environmental compliance Non-compliance with Environmental Laws and Regulations Disclosure Quantity Units Total amount of monetary fines for non-compliance with environmental laws and/or regulations PhP 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 does it occur? What is the organization's involvement in the impact? Which stakeholders are affected? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. (e.g., employees, community, suppliers, government, vulnerable groups) What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? What are the Risk/s Identified? Which stakeholders are affected? Management Approach Identify risk/s related to material topic of the organization What are the Opportunity/ies Identified? Which stakeholders are affected? Management Approach Identify the opportunity/ies related to material topic of the organization SOCIAL Employee Management Employee Hiring and Benefits Employee data Disclosure Quantity Units Total number of employees 16 a. Number of female employees # b. Number of male employees # Attrition rate 17 rate Monthly salary of the lowest-paid employee PhP Employee benefits List of Benefits Y/N % of female employees who availed for the year % of male employees who availed for the year SSS 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 is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 Disclosure Quantity Units Total training hours provided to employees a. Female employees hours b. Male employees hours Average training hours provided to employees a. Female employees hours/employee b. Male employees hours/employee What is the impact and where does it occur? What is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 Disclosure Quantity Units % 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 is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 Workplace Conditions, Labor Standards, and Human Rights Occupational Health and Safety Disclosure Quantity Units Safe Man-Hours 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 is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 Disclosure Quantity Units 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? TCAScE 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 is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 with significant (positive or negative) impacts on local communities (exclude CSR projects; this has to be business operations) Location Vulnerable groups (if applicable)* Does the particular operation have impacts on indigenous people (Y/N)? Collective or individual rights that have been identified that or particular concern for the community Mitigating measures (if negative) or enhancement measures (if positive) *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: _______________ cTDaEH Certificates Quantity Units FPIC process is still undergoing # CP secured # 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 Customer Satisfaction Disclosure Score Did a third party conduct the customer satisfaction study (Y/N)? Customer satisfaction What is the impact and where does it occur? What is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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. What is the impact and where does it occur? What is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 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 is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 ITAaHc Disclosure Quantity Units No. of data breaches, including leaks, thefts and losses of data # What is the impact and where does it occur? What is the organization's involvement in the impact? Management Approach Identify the impact and where it occurs (i.e., primary business operations and/or supply chain). Indicate involvement in the impact (i.e., caused by the organization or linked to impacts through its business relationship). This may include where your primary business operations are and your supply chain. What policies, commitments, goals and targets, responsibilities, resources, grievance mechanisms, and/or projects, programs, and initiatives do you have to manage the material topic? 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 UN SUSTAINABLE DEVELOPMENT GOALS Product or Service Contribution to UN SDGs Key products and services and its contribution to sustainable development. Key Products and Services Societal Value/Contribution to UN SDGs * None/Not Applicable is not an acceptable answer. For holding companies, the services and products of its subsidiaries may be disclosed. You may use the following framework to determine which area of sustainable development your company is contributing to improve people's quality of life. For more information on how private sector can contribute to sustainable development, you may visit www.sdgsbiz.ph or refer to the guidance document Integrating the SDGs into Corporate Reporting: A Practical Guide, which can be accessed at https://www.globalreporting.org/resourcelibrary/GRI_UNGC_Reporting-on-SDGs_Practical_Guide.pdf . cSaATC ANNEX B Topic Guide In line with the Disclosure Topic and Management Approach discussion above, this Annex will provide a guide on the what to disclose in the Topics provided in the Reporting Template. The guide is based on the GRI Standards, SASB Standards and Recommendations of the Task Force on Climate-related Financial Disclosures. ECONOMIC Economic disclosures relate to how the company directly increases the pool of 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 of this flowed back to society (costs disaggregated according to stakeholders)? How much of this was retained in the company for liquidity and to fund future investments? See GRI 201-1 for more guidance on the disclosure. cHDAIS Disclosure of an organization's climate-related issues helps stakeholders make sound and reasonable assessments of 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 of spending on local suppliers show's an organization's support for local groups, including those owned by women or members of 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 its directors, management, employees and business partners. Disclosures on incidents of corruption and how the company responded on the incidents show how serious an organization is on combatting corruption. See GRI 205 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. 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 of 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 and GRI 304 for more guidance on the disclosures. 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 of environmental impacts from extraction and processing of these resources. The efficiency of managing resources relates to profitability of the organization. See GRI 301 , GRI 302 , GRI 303 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 and GRI 306 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 of an organization's compliance indicates its concern for environmental protection. See GRI 307 for more guidance on the disclosures. 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. ISHCcT Employee Management Disclosing on employee management indicates of 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 HIV and other diseases, solo parents, and the poor or the base of the pyramid (BOP; Class D and E). See GRI 401 , GRI 402 , GRI 404 , GRI 405 , GRI 406 , GRI 407 , GRI 102-8 , and GRI 102-41 for more guidance on the disclosures. Workplace Conditions and Labor Standards 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 , and GRI 412 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 and GRI 414 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 of indigenous people and those coming from vulnerable groups [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)] in its business operations. See GRI 411 , GRI 412 , and GRI 413 for more guidance on the disclosures. DHITCc Customer Management Disclosing on customer management shows how well an organization upholds the rights of its customers to privacy, safety, and security from probable negative impacts of its products and services. See GRI 416 , GRI 417 , and GRI 418 for more guidance on the disclosures. Data Security Reporting on the number of data breaches, including leaks, thefts and losses of 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 of 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 of the SDGs. The SDB Compass can be accessed at https://sdgcompass.org/ . Moreover, a recent publication with the title: Integrating the SDGs into Corporate Reporting: A Practical Guide , 18 helps companies of 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 UN Global Compact (UNGC). CAacTH Footnotes 1. The Road Ahead. The KPMG Survey of Corporate Responsibility Reporting 2017. https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/10/kpmg-survey-of-corporate-responsibility-reporting-2017.pdf. 2. Based on disclosures made publicly-listed companies on their Integrated Annual Corporate Governance Report (I-ACGR), 58 companies out of 270 have published a Sustainability Report. 3. Brundtland, G. "Our Common Future," Report of 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. 5. The TCFD Recommendations is focused mainly on climate-related issues. 6. Adopted from the Sustainability Accounting Standards Board (SASB, 2017). 7. Adopted by the Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosure (FSB, 2018). 8. CFA Institute, "Environmental, Social and Governance (ESG) Survey" (2018). https://www.cfainstitute.org/-/media/documents/survey/esg-survey-report-2017.ashx. 9. Adopted from Definitions found in the GRI Standards. 10. See GRI Standards 101: Foundation 2016. 11. This material references GRI Disclosure 103-1 "Explanation of the Material Topic and its Boundary" from GRI 103: Management Approach 2016 (GRI, 2016). 12. This material references GRI Disclosure 103-2 "The management approach and its components" from GRI 103: Management Approach 2016 (GRI, 2016). 13. See GRI 102-46 (2016) for more guidance. 14. Adopted from the Recommendations of the Task Force on Climate-Related Financial Disclosures. 15. International Union for Conservation of Nature. 16. Employees are individuals who are in an employment relationship with the organization, according to national law or its application (GRI Standards 2016 Glossary) . 17. Attrition are = (no. of new hires no. of turnover)/(average of total no. of employees of previous year and total no. of employees of current year). 18. This publication may be accessed at https://www.globalreporting.org/resourcelibrary/GRI_UNGC_Reporting-on-SDGs_Practical_Guide.pdf.