Our Journey Towards A BetterWorld

The Aboitiz BetterWorld sustainability framework
serves as the Group’s guide in monitoring,
measuring and improving its impact on people,
planet and profit. Through this, the various
business units subscribe to a common set of focus
areas that are applicable across the Group. These
focus areas are: Team Member Engagement &
Development, Customer Focus, Disaster Resilience
& Preparedness, Corporate Social Responsibility,
Carbon Emissions Reduction, Waste Management,
Resource Efficiency, Renewable Energy, Financial
Return and Financial Growth. The Group’s
performance in these focus areas are monitored
and reported through its sustainability report, which
uses the widely accepted G4 reporting framework of
the Global Reporting Initiative (GRI).
The Aboitiz Group was one of the first local
businesses to support the United Nation’s 17
Sustainable Development Goals (SDG). Central
to the new set of global goals is the idea of
caring for the planet and for the world’s poorest
citizens, which is also at the heart of the Aboitiz
BetterWorld mindset. Whenever applicable, Group-
wide communications and campaigns align with
the SDG especially in areas where current CSR
and sustainability programs can contribute to the
attainment of specific SDG areas. These programs
cover quality education, reducing poverty, zero
hunger, good health and well-being, protecting life
above land and under the water, climate resilience,
sustainable food production and financial inclusion.
Focus Areas and Metrics

To drive sustainability throughout its business, Aboitiz focuses on three key areas based on the triple bottom line approach—people, planet, and profit—where it believes it can make the greatest difference to the Group and its stakeholders. This framework is used to set targets, improve performance, and extend the scope of the value it creates.
2015 Sustainability Highlights
In response to the call to combat climate change,
Aboitiz signed the 2015 Manila Declaration and
joined the Water Alliance as one of its pioneering
members. The Manila Declaration is the private
sector’s statement of solidarity to lower emissions,
to help increase the resiliency of communities
against the consequences of climate change and
to address collective sustainable development
challenges while embedding sustainability into its
business processes. Meanwhile the Water Alliance
of the Philippine Business for Social Progress is the
sector’s response to addressing the adverse effect of
the El Niño phenomenon.

Cleanergy is AboitizPower’s brand for clean and
renewable energy, providing Filipinos with more
sustainable power supply that leaves a lighter
impact on the environment. AboitizPower is among
the major producers of renewable energy in the
country with 1,263 MW or close to 40% of its total
net sellable capacity. It manages and operates 28
hydroelectric and geothermal power generation
facilities. With several other renewable energy
power plants in the pipeline and the addition of the

59-MWp Solar Power Plant in Negros Occidental to
its portfolio of renewable power generating assets,
Aboitiz is delivering on its Cleanergy promise.
In pursuit of its goal to leave a planet that can be
enjoyed by future generations, Aboitiz Group increased
its A-Park target from 3 million trees to 9 million trees,
to be achieved by 2020. As the Group’s contribution
to the National Greening Program, a Memorandum
of Agreement with the Department of Environment


Iand Natural Resources was signed on July 22, 2015.
This makes the Aboitiz Group as one of the biggest
private partner of the government in its countrywide
reforestation program.

In celebration of Earth Day, the Aboitiz Group
inaugurated the Aboitiz Cleanergy Park last April 23,
in Davao City. The Park is a partnership between
the Aboitiz Group through Davao Light and Aboitiz
Foundation and its stakeholders in Mindanao that
include the Davao City local government, Barangay
Council of Matina Aplaya, DENR-Biodiversity
Management Bureau, the academe and research
communities. It is an eight-hectare outdoor
biodiversity park with a diverse ecosystem, giving
the public the opportunity to explore a different
learning experience on environmental conservation
and protection. It is a nesting sanctuary for the
critically endangered Hawksbill turtle or pawikan
with close to 2,000 hatchlings released to the sea by
December 2015. The entire Park itself is home to 66
species making it an important marine life sanctuary
in Mindanao. A nursery and botanical garden has
been set up to propagate 29 native tree species. The
Park is host to an automated weather station (AWS)
of WeatherPhilippines as part of its contribution to
beefing up the disaster preparedness of Davao City.

The Race to Reduce (R2R) program underpins the
Group’s commitment to manage its resources
efficiently and minimize its operational footprint.
Business units are encouraged to reduce their
consumption on three finite resources, water,
electricity, and paper. In 2015, there were 261
enrolled facilities across the Group.

The Wealth on Waste (WoW) is the Group’s program
to support Republic Act 9003 better known as
the Ecological Solid Waste Management Law,
which promulgates the proper management of
wastes using the 3Rs – reduce, reuse, and recycle.
Twenty-three business units of Aboitiz practice
waste management following their respective
environmental, health, and safety policies.

One of the WoW projects which has been running
for the past 4 years in Cebu City is the Green
Fashion Revolution (GFR). It is an intercollegiate
Testimonial from a teacher:                                                  

“We always believe that
learning does not only happen
inside the classroom and
that experience is still the
best teacher. By visiting the
Aboitiz Cleanergy Park, our
young learners will have more
appreciation of the environment
and wildlife conservation.”
Krispy Arenga
Kindergarten Class Adviser
and Student Activities Coordinator
green design competition that challenges students
to create clothing, footwear, and accessories that
make use of recycled materials. The competing
schools gather waste materials like flour sacks,
tarpaulins, metals and papers and are used in
designing their collection. Last year’s GFR used
a total of 212 kilos of wastes gathered from the
different Aboitiz business units. In January 2016,
GFR was held in Manila for the very first time,
bringing the Group’s waste management advocacy
to a national audience.

With the goal of updating and standardizing the
health, safety and environmental management
practices of the power business units, AboitizPower
launched its Safety, Health, Environment and Quality
(SHEQ) Policy in the third quarter of 2015.
Ensuring sustainable entrepreneurship for farmers
is at the center of Pilmico’s drive to be Partners for
Growth. Through its advocacy program, Mahalin
Pagkaing Atin, it continues its strong support for
sustainable livelihood and backyard farming. In
2015, it donated 736 piglets, 215 egg machines
benefitting 373 families, and conducted 20 Mahalin
Pagkaing Atin events nationwide. The events include
technical and social trainings that assisted local
farmers with their concerns and helped them grow
their businesses.


2016: Towards creating shared value

As the Group pursues further growth, it is facing
greater expectations to help address a variety of
society’s challenges, from socio-economic inequality
to building resilient communities. While it is already
making a significant impact in this area right now, it
understands that the business will also adapt to the
changing needs of its stakeholders and is, therefore,
putting even greater focus on creating shared value
(CSV), which is about generating value for business and
society by addressing societal needs as a core part of
business strategy.

To bring everyone to the same level of understanding
and appreciation of CSV, an executive coaching session
was held in January 2015 tapping the services of Incite,
a shared value advisory network and an affiliate of
the Shared Value Initiative. The first run gathered the
Reputation Council and other senior executives of the
different strategic business units.

An expanded second run was held in March 2016
as part of the corporate governance training of the

Board of Directors. The coaching sessions was
likewise conducted for senior officers to identify
ways of further improving the existing initiatives
that support CSV. The Group is looking at Pilmico’s
Mahalin Pagkaing Atin campaign, WeatherPhilippines’
WeatherWiser Nation campaign, AboitizPower’s
Cleanergy brand and CitySavings’ teachers’ loan
program as existing CSV models in Aboitiz. Parallel to
this, we continue to improve the way we do CSR by
taking a closer look at the relevance, effectiveness
and sustainability of our flagship CSR programs.
Our goal is to move from CSR 1.0, projects that are
philanthropic in nature, to CSR 2.0, projects that have
long-term benefits, are scalable nationwide, more
inclusive, are aligned to our core businesses and
encourages team member participation.

The R2R program under the focus area on resource
efficiency will be further enhanced in 2016 to
highlight how important managing the planet’s
limited resources is at the team member level.
Bringing down the conscious practice of conserving
electricity, water and paper helps Aboitiz team
members become more aware of their capability
to contribute to the global climate action. A pocket
of events will be implemented like the Water
Conservation Challenge, Earth Hour, and No
Impact Week.

Early last year, the Significant Energy Users study
was conducted by students from the University of
Santo Tomas. This will become the basis for the
formulation of resource efficiency policies and
guidelines moving forward.

In the area of disaster resilience & preparedness,
WeatherPhilippines will engage more partners to help
build a #WeatherWiser Nation. Platinum Donors agreed
to increase their annual donation to P3.5 million each

to support the initiative. To encourage more partners
to invest on weather technology and knowledge,
it will institutionalize value-adding development
initiatives for donors, sponsors and LGU partners.
It will fully utilize its communication platforms to
seamlessly provide localized weather information for
the Filipino public, from its free mobile application
to the weather 101 videos available for viewing in its
website www.weather.com.ph and Facebook page.

Gearing up for Sustainable Growth
The Aboitiz Group takes to heart a time-honored
mission – to create long-term value for all its
stakeholders. The Group will need to gear up for the
challenges of a world facing environmental problems
and social inequality.

Through Aboitiz BetterWorld, the Group has already
laid down the foundations to take on these challenges,
ready to embrace and live out the determined belief
that it can do well by doing good.
Providing Stakeholder Value

More than just being a successful enterprise, Aboitiz Equity Ventures, Inc. (AEV) and its business units are committed towards constantly striking a triple balance of people, planet, and profit.

In its core businesses of power, banking and financial services, food, land, and infrastructure, the organization and its team members serve countless people during the daily course of operations across the country. They all share a goal to touch and enrich lives, help stakeholders attain a better future, and collectively care for the one planet that sustains us all.

The Group is committed to making Aboitiz a truly sustainable enterprise that can be entrusted to future generations.