Intermediate demands

• The Aboitiz Group allocated a total of P415 million for CSR projects. Aboitiz Group
Initiatives represent the total financial allocation of both Aboitiz Foundation
and Business Units' (BUs) direct CSR.
• Education received the biggest allocation of P232 million.

Sustaining CSR Leadership

The Aboitiz Foundation and its initiatives have been
evolving over the past 27 years. From CSR 1.0 or a
philanthropic style of donating, the Foundation’s
initiatives have progressed into CSR 2.0 or programs
that are more sustainable, inclusive, and aligned
to the Group’s core competencies. These programs
deliver longer-term benefits, are scalable initiatives
that deliver positive sustainable impact on a
national scope, and encourage stronger team
member engagement.

In 2015, the total CSR allocation of the entire
Aboitiz Group amounted to P415 million, which
translated to more programs that had an impact on
507,086 direct beneficiaries nationwide. The Aboitiz
Foundation led the Group in helping more people
help themselves while continuously growing and
improving to fulfill its vision of being the neighbor
of choice, especially in communities where Aboitiz
business units (BUs) operate.

The Foundation spent P290 million for various CSR
initiatives, with education-related programs getting
the largest chunk of the budget. The BUs, for their
part, allocated P125 million for CSR projects they
directly funded.

Strategic Pillars
The Aboitiz Foundation will sustain CSR leadership
through its three strategic pillars or focus areas:

Program Development
The Foundation’s goal is to increase social impact and
make a real difference in the lives of many through
its programs in education, enterprise development,
environment, and health & well-being. CSR initiatives
are carefully chosen to ensure alignment with its
CSR 2.0 direction. The Group has made significant
progress towards this path, increasing total CSR 2.0
projects to 16% in 2015 from 7% of the previous year.

Achieving CSR 2.0
Percentage based on amounts of approved projects

The Group's journey in achieving CSR 2.0 is significantly progressing over the years as it increased from 7% in 2014
to 16% in 2015. As of March 2016, CSR 2.0 initiatives further increased to 66% of the total approved CSR projects.
The Foundation has identified 10 flagship projects
that are scalable and these will be rolled out in all
the BUs nationwide. The success of these projects
is monitored based on certain key performance
indicators such as the number of classrooms and
scholars or the amount of microfinance loans
granted. To further improve on the programs, the
Foundation will start measuring social impact as
reflected in the increase in income per family, or
more scholars who get employed, or more jobs
generated from skills training.
Stakeholder Engagement

The Foundation aims to increase stakeholder
engagement through effective communications
and partnerships. The BUs’ stakeholders include
their communities, local government units, team
members, customers, and the general public.
Acknowledging that it cannot achieve its goals
on its own, the Foundation partners with other
organizations that have similar goals in order
to achieve collective social impact. Through
communication campaigns, it aims to inform,
educate, engage, and inspire people with how it
has touched the lives of many.
Capability Building

With the hundreds of projects that they implement
every year, the Foundation and BUs know that they
cannot execute excellence without organization
capability. In 2015, the Foundation formally
implemented a quality management system
that includes a documentation of all its policies,
guidelines, and procedures, and established service

level agreements with the BUs across the Group. It
will continue to build competency through better
people, better processes, and better systems. Further
enhancements will be done on the automated
system to approve, monitor, and measure project

The Aboitiz Foundation’s goal is to achieve universal
public education by continuing to establish and
develop Aboitiz BetterWorld schools that promise
a better learning environment for students. This
means more special science elementary schools
(SSES), technical-vocational (tech-voc) high schools,
donations of AGAPP Silid Pangarap kindergarten
and regular Foundation classrooms, and asset
donations to the Philippine public school system. The
Foundation will also continue to provide teachers’
trainings and grant scholarships and financial
assistance to deserving students.

The Aboitiz Group spent P232 million or 56% of its
total CSR budget allocation in 2015 to roll out these
education initiatives.

In 2015, the Foundation identified as flagship projects
some of its existing key initiatives including the
development of SSES and tech-voc high schools,
the purposive college scholarship program, and the
rewiring of classrooms.

It developed six SSES and 17 tech-voc high schools
with other Aboitiz BUs in 2015. It also spearheaded
the construction of 40 Silid Pangarap kindergarten


classrooms in partnership with the AGAPP Foundation,
built 17 regular classrooms, and rewired 1,741
classrooms nationwide.

To provide students a competitive learning edge, the
Foundation supported 3,305 scholars nationwide, 185 of
whom were under the purposive college scholarship
program. It also turned over 19 stand-alone
computers and 612 thin client computer units.

Moving forward, the Foundation will start
measuring the more meaningful social impact
these programs will achieve. It hopes to see an
increase in the number of tech-voc students with
NCII certificates and the number of SSES students
qualified for science high schools. It also expects to
see increased employment of scholars and lesser
fire incidents in rewired schools, among other
positive results.                                                            

Enterprise Development

The Aboitiz Foundation actively empowers
beneficiaries to create a better future for themselves
through its enterprise development program. It
provides sustainable livelihood and employment
opportunities as well as training in capability building
and skills enhancement for partner communities.

In 2015, a total of P46.2 million worth of approved
projects benefited 4,517 beneficiaries.

In February 2016, the Foundation signed an
agreement with the Center for Agriculture and Rural
Development (CARD) to enhance its microfinance
initiative, which is a flagship project under the
enterprise development program.

Under the agreement, CARD will manage the current
loans amounting to P18 million from release to
collection. The additional P10 million will be used to
establish two microfinance branches in Tiwi, Albay and
Davao which CARD will manage and operate to provide
loans and services in the identified communities.

The Foundation anticipates that a significant social
impact will be achieved through this flagship
program in terms of increases in the number of jobs
generated, in income, in households benefited, and
small businesses created.
The Foundation is at the forefront of upholding the
Aboitiz Group’s commitment to build a BetterWorld
through its environmental programs. In 2015, it
identified the following environment initiatives as
flagship projects: A-Park, Race to Reduce (R2R), and
Water Access and Conservation programs. It also
signed a partnership with the DENR and enrolled the
A-Park trees in the National Greening Program. The
Group remains on track in meeting its goal to plant
nine million trees by 2020 after planti
ng a total of 3.8million seedlings by the end of 2015.


R2R is continuously encouraging Aboitiz BUs to
reduce consumption in power, water, and paper in
their offices and facilities.

In October 2015, the Aboitiz Group committed to
be part of the Water Alliance Coalition led by the
Philippine Business for Social Progress to help address
critical climate change issues and create solutions to
curb water scarcity in the country.

In its goal to create more meaningful social impact,
the Foundation will monitor the survival rate
improvement of the trees it has planted. On the R2R
front, it aims to see a significant reduction in the
consumption of the three finite resources the Group
currently uses – water, power, and paper.

AboitzPower distribution unit Davao Light, in
partnership with the Foundation, is continuously
enhancing the Aboitiz Cleanergy Park – an
eight-hectare biodiversity park that has a rare
and diverse ecosystem and declared as a
protected marine area. To date, 1,876 pawikan
eggs have hatched in 17 nests at the park,
which is also home to 66 other marine species.

As a commitment to sustain the park, the Foundation
launched its #BetterWorld for the Pawikan campaign
in January 2016.

Health & Well-Being
The calamities that struck the country in 2015 moved
the Aboitiz Foundation to extend immediate assistance
to affected communities nationwide. In the aftermath
of Typhoons Lando and Nona, it distributed essential
relief packs to 4,669 families in Luzon, and re-energized
barangays in Oriental Mindoro and Sorsogon.

Last year, the Foundation assisted several BUs
conduct medical, dental, and optical missions that
benefited 15,780 patients nationwide.

Team Member Engagement

Aboitiz team members embody the Group’s core
value of responsibility. In 2015, a total of 5,658 team
members volunteered for CSR initiatives covering the
Foundation’s four program components.

These initiatives included both team member-initiated
activities such as the emergency and disaster
preparedness training for communities, as well as
institutionalized Group-wide CSR activities that
involve team members. These activities include
the Aboitiz-led Adopt-a-School, Brigada Eskwela,
tree planting, Christmas outreach, disaster relief
operations and health missions, among others.


Business Units' (BUs) Direct CSR Initiatives

Aside from projects implemented in coordination
with the Aboitiz Foundation, Aboitiz business units
also directly fund social development initiatives that
address the needs of communities in their respective
areas of operations.

In 2015, these companies spent P125 million on
various direct CSR initiatives. Among the notable
ones are City Savings Bank’s Project Synergy, which
focuses on developing leadership and values-based

competency for public school teachers; Davao
Light’s solar charging station that provides access to
electricity to a lumad community in Marilog district;
and Hedcor Sibulan’s water system construction
projects in Sta. Cruz, Davao del Sur.

For 2016, the Aboitiz Foundation will pursue its
mission guided by the same three strategic pillars and
will continue working together with its partners to
deliver greater long-term value for its stakeholders.