GRI 102-14, 103-2, 103-3
“Economic recovery is 2021’s story. It is MPIC’s story as well, but one that is inextricably linked to everyone else. Understanding this interconnectedness is a crucial lesson we have learned from the pandemic. That we need to come together to work out how we can progress from a crisis. That our progress as a business is tied to the advancement of others. Such progress is as significant as profit and is therefore interlinked to creating value for all. In other words, that our progress is yours as well.”
MANUEL V. PANGILINAN
Chairman, President and CEO
To our fellow shareholders,
Looking back at 2021, I am overwhelmed with gratitude and pride at how our Company has smartly responded to the many trials brought about by COVID-19 and, as a result, has become a stronger company.
We took immediate actions to protect and promote our employees’ health, well-being, and livelihood. We supported the nation by mobilizing our personnel and resources to assist frontline staff and vulnerable populations affected by the pandemic. Our hospitals worked round-the-clock to manage infections and care for the critically ill.
Above all, we prioritized and ensured service continuity, that all our services stayed up and running, despite quarantine and mobility restrictions. Given the essential nature of our services, it is imperative that we make them available even more so in times of crisis.
Service continuity drives our financial growth.
Our solid financial performance in 2021 is a result of the hard work and resilience of our people. I thank everyone in the MPIC Group for this success.
When others understandably opted to avoid risks by staying at home, our people stayed true to our promise and navigated through the challenges of keeping our enterprises running because everyone relies on us to keep the power on, the water flowing, the roads open, the hospitals operating, and the trains running.
With humility, we recognize the contribution of our consistent service delivery to the country’s gradual economic recovery. Our power and road networks have allowed for the widespread distribution of COVID-19 vaccines. Water served as a critical resource in combatingtransmission and sustaining the population and socio-economic development. Our infrastructure allowed numerous industries to reopen, and this directly resulted in better outcomes for MPIC.
Adapting to climate change and conserving ecosystems is a priority.
Over the past year, we have also seen how the policy landscape on climate trends has rapidly evolved. Our stakeholders are increasingly supportive of this shift, and so, in addition to Economic goals, our Board is now viewing Environmental, Social and Governance indicators as key value drivers.
Our utility businesses consume massive amounts of natural resources that significantly impact the environment. The power that we distribute still relies heavily on fossil fuels. Water and sewerage treatment plants require large amounts of energy to move and process water resulting in greenhouse gas emissions. We are highly aware that our business will be unable to prosper in a deteriorating physical environment. As such, we have worked hard to manage our impacts and mitigate the effects of climate change and environmental degradation by prioritizing programs that conserve ecosystems. We have teamed up with various partners to reforest our watersheds and protect our country’s shores and other bodies of water. We continue to invest in improving our infrastructure to promote the efficient consumption of resources, spending billions on upgrading our monitoring systems and distribution networks. We are steadfast in our intent to achieve Net Zero emissions by 2050.
We believe that investing in more resilient infrastructure and strengthening business continuity processes will contribute significantly to our economic success. Preparedness is crucial to surviving or reducing future shocks caused by risks and disruptions. Our portfolio of projects is currently engaged in making our infrastructure less vulnerable to strong typhoons and other natural disasters, which now seem to frequent these islands in growing severity.
Our current business models and policies reflect our understanding of the grave importance of our sustainability goals in relation to current global challenges and to our continued growth as a business.
Everything is connected to creating value.
Beginning this year, we are producing our annual report using the International Integrated Reporting <IR> Framework. This integrated report will not simply consolidate material information on our financial performance and sustainability initiatives. It will provide us with more in-depth insights into how we capitalize on our resources and relationships as influenced by a range of external and interdependent factors. It will assist in showing us how everything is connected, giving us richer information to drive the creation of even greater value from our business models and activities to benefit all stakeholders.
Economic recovery is 2021’s story. It is MPIC’s story as well, but one that is inextricably linked to everyone else. Understanding this interconnectedness is a crucial lesson we have learned from the pandemic. That we need to come together to work out how we can progress from a crisis. That our progress as a business is tied to the advancement of others. Such progress is as significant as profit and is therefore interlinked to creating value for all. In other words, that our progress is yours as well.
Finally, we are thankful to Jose Ma. K. Lim for making all this possible, and for the many stellar years he had worked to make MPIC a corporate pillar of Philippine progress. While he may be retiring as our President and CEO, he remains as a member of the MPIC Board of Directors. As a trusted leader and adviser, he will continue to be part of the next phase of our endeavors. MPIC plays a critical role in the dynamic story, life, and development of the country and the Filipino people, and we must continue to do so. I am certainly excited at the possibilities of what our future story might be.
MANUEL V. PANGILINAN
Chairman, President and CEO