Sustainability Governance

GRI 103-2, 103-3, UNGC Principle 10

Creating and delivering value for both our shareholders and society requires a governance approach that integrates sustainability. For MPIC, this means having a governance structure aligned with its business and promotes sustainable business conduct. 

Developing a sustainable supply chain is an indispensable part of this agenda. Our operating companies have integrated sustainable practices in their supply chains aside from implementing governance-related policies that will bring long-term value creation and enhance accountability across our Group. 

Accordingly, MPIC has established a Council dedicated to assessing our sustainability performance. The Group Council supports the Board in ESG- related issues and ensures regulatory compliance while ingraining ethical business practices as part of everyday operations. Notably, the proper management of climate and disaster risks, especially in our supply chain, has become a key governance focus for MPIC in 2021. Our holistic approach to governance is outlined in the “Our Governance and Enterprise Risk Management Strategy” section of this report. 

Meralco: Supply chain sustainability

Integrating sustainability within the company requires cascading sustainable practices across the value chain. Meralco leverages its supplier accreditation process to influence its suppliers and contractors to embrace and adhere to its sustainability standards and principles. In 2020, the company introduced the Meralco Supplier Sustainability Scorecard MS3 to improve its supply chain sustainability. At the same time, the scorecard provides a standard approach for supplier assessment. Meralco’s suppliers are evaluated annually through the MS3 using a common set of sustainability criteria and disclosures aligned with the Global Reporting Initiative (GRI) Standards. 

Maynilad: Maintaining and improving unbiased governance practices

Maynilad believes that unbiased governance is necessary to achieve strategic business management. This is done by improving the existing internal governance of Maynilad and implementing ESG communication strategies addressed to various company stakeholders. 

Maynilad takes a zero-tolerance approach to activities that will compromise its corporate integrity. Thus, Maynilad provided several trainings in 2021 to enhance the understanding and commitment of key stakeholders to its governance policies and practices. It also invested in training and strengthening compliance with government regulations. 

Employee awareness is crucial to promote a culture of compliance. To prevent fraud and other types of business-related risks and increase employee awareness of such, Maynilad equips its employees with training on basic internal control, fraud awareness, and fraud risk assessment. 

Meanwhile, Maynilad seeks to strengthen employees’ awareness of its governance- related policies by constantly updating and consistently communicating relevant policies. In recent years, Maynilad has paid great attention to its corporate governance as a key mechanism to ensure the company’s productivity and sustainability. Among the policies established relating to conducting business with ethics are the Whistleblower Policy, Conflict of Interest, Anti-Fraud, and Internal Control Assessment. In 2021, Maynilad revised several of its governance-related policies such as: Related Party Third Party; Anti-Bribery and Corruption; Respect for and Protection of Human Life; Anti-Sexual Harassment; Gifts, Entertainment, and Sponsored Travels; and Conflict of Interest. Maynilad’s governance policies are regularly published in the Employee News to keep employees abreast of governance-related updates. 

To demonstrate its sustainability commitments and increase stakeholder trust, Maynilad consistently communicates its ESG performance to a wide range of stakeholders. Over the years, Maynilad has regularly disclosed its environmental, social, and economic impacts as well as its ESG goals through the annual publication of its Sustainability Report. To ensure an unbiased evaluation of its impacts, Maynilad spent P1.2 million to work with a service provider in developing its Sustainability Report and an external assurance agency to verify
its disclosures. Maynilad understands the importance of diligent ESG Reporting to improve company performance and build stakeholder confidence. 

In addition to ESG reporting, Maynilad has developed a comprehensive communication strategy to raise awareness among stakeholders. The company’s communication plan clearly defines its communication objectives and target audiences as well as outlines the platforms, key messages, and programs to be implemented. Through this plan, Maynilad expects a stronger shareholder relationship, better brand perception, and increased shareholder confidence.