AboitizPower recognized anew as FTSE4Good constituent
Aboitiz Power Corporation (AboitizPower) continues to be recognized as a constituent company in the FTSE4Good Index Series.
The FTSE4Good Index Series, created by global index provider FTSE Russell, measures the performance of companies demonstrating strong Environmental, Social, and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.
AboitizPower has been independently assessed according to the FTSE4Good criteria and has satisfied the requirements to become a FTSE4Good Index Series constituent. The company has sustained its rating in the FTSE4Good Index Series since 2018.
“Being a FTSE4Good constituent for three years in a row is a major accomplishment for us. This affirms that we are on the right track with our commitment to being sustainable and drives us to continue strengthening our ESG standards and practices,” said Emmanuel V. Rubio, AboitizPower president and chief executive officer.
With sustainability at its core, AboitizPower’s support for environmental conservation runs in parallel with the company’s commitment to providing reliable, affordable, and sustainable energy, through a balanced portfolio mix of renewable and thermal power facilities, which it operates in compliance with all applicable standards and regulations.
The company is also a pioneer of renewable energy in the Philippines, having invested in hydropower in the 1970s, which is the foundation of Cleanergy, AboitizPower’s renewable energy portfolio. To date, Cleanergy includes hydro, geothermal, and solar power. Together with partners, AboitizPower has a net sellable capacity of more than 1,200 MW from 29 Cleanergy facilities all over the country.
In the next 10 years, the company is looking to significantly expand its Cleanergy portfolio. Sixty-five percent (65%) of its new capacities will be sourced from renewables, resulting in an almost 50:50 thermal and Cleanergy capacity mix by 2029. This is also in support of the government’s efforts to further promote renewable energy in the country and is AboitizPower’s contribution to the global RE target.
Over the years, AboitizPower has built strong partnerships with its host communities and local government units (LGUs). These partnerships have paved the way for sustained corporate social responsibility (CSR) initiatives for the communities hosting AboitizPower facilities.
The company has also fully supported the disbursement of Energy Regulations 1-94 (ER 1-94) to host beneficiaries. The ER 1-94 Program is a policy under the Department of Energy (DOE) Act of 1992 and the Electric Power Industry Reform Act of 2001 (EPIRA), which stipulates that a host community will get a share of one centavo for every kilowatt-hour (P0.01/kWh) generated by power plants operating in its area. The fund can be used for the electrification of areas or households that have no access to power, development and livelihood programs, as well as reforestation, watershed management, health, and environmental enhancement initiatives.
Upon the effectivity of DOE’s new Department Circular No. 2020-04-00080, which allows the use of the said funds for COVID-19 response, AboitizPower was among the first energy companies to make ER 1-94 funds available to its host beneficiaries all over the country. To date, the company has turned over around Php 462 million worth of ER 1-94 funds to support host LGUs in their fight against COVID-19.
Also under the social component is occupational health and safety (OHS), wherein AboitizPower has recorded a strong performance, through the effective implementation of OHS programs. With safety being a top priority for AboitizPower, the company has institutionalized behavior-based safety practices across all its business units. These include, among others, the use of Watch App, a mobile application used by AboitizPower team members to report safety-related risks. This tool allows the organization to monitor and quickly address safety concerns in the workplace. As a result of these efforts, all AboitizPower generation facilities and distribution utilities have received international certifications for the OHS Management System.
AboitizPower firmly believes that commitment to good corporate governance is integral to a sustainable business. It benchmarks its governance practices on the ASEAN Corporate Governance Scorecard, with particular focus on five key areas — rights of shareholders, equitable treatment of shareholders, the role of stakeholders, disclosure and transparency, and responsibilities of the board.
As a testament to this commitment, AboitizPower was recognized as one of the best-managed companies in the Philippines and in the ASEAN region. In November 2018, AboitizPower was lauded for being one of the top-performing publicly-listed companies (PLC) at the 2nd ASEAN Corporate Governance Awards ceremony held in Malaysia. In 2019, the company also received recognition from the Institute of Corporate Directors (ICD) as among the top-performing PLC in the ASEAN Corporate Governance Scorecard (ACGS).
AboitizPower continues to build on its strong corporate governance by constantly reviewing and improving its practices and controls, to ensure that it remains sustainable and relevant to future generations.
“We recognize that we still have a long way to go in terms of sustainability, but we are proud of what we have achieved so far despite the challenges we are facing today. This inspires us to continuously learn and improve, so we can continue to create long-term benefit for our stakeholders,” added Rubio.