In order for the disclosures or matters to be included in First Gen’s IR, the information needs to be of importance in terms of its known or potential effect on value creation.
First Gen’s operations lead to a diverse set of stakeholders, namely, our customers, the planet, government, investors, co-creators (employees, partners, suppliers and service providers), host communities, civil society and nongovernmental organizations. This stakeholder diversity compels us to assess our performance through multiple standards to fully address their needs and expectations.
Thus, First Gen, in collaboration with First Philippine Holdings’ Corporate Sustainability Group (FPH-CSG) and University of Asia and the Pacific- Center for Social Responsibility (UA&P- CSR) identified the following sustainability indicators to assess its data:
To determine the sustainability parameters for a diverse audience, First Gen analyzed appropriate indicators from 10 organizations, consisting of:
The list of indicators was validated with the Company’s shareholders and other stakeholders through the Sustainability Technical Working Group (TWG).
As a result, the relevant standards and references that were used in this report are from the:
While these standards address the requirements of different stakeholders, they also complement each other. By referencing the report to GRI standards, the impacts of the business to the planet were covered and with SASB indicators, the impacts of external factors to the business were reflected. In this way, the report focuses on value to shareholders but at the same time attention is given to the contribution of the business to the well-being of the planet and people.
The list of disclosures or matters that were identified has been translated into an online survey for First Gen’s providers of capitals and Sustainability technical working group (TWG) to assess the following:
The table below shows the scoring criteria for materiality.
|1.00||The topic has no importance in terms of its known or potential effect on value creation.|
|1.01 – 2.00||The topic has a low importance in terms of its known or potential effect on value creation.|
|2.01 – 2.50||The topic has a moderate importance in terms of its known or potential effect on value creation.|
|2.51 – 3.00||The topic has a high importance in terms of its known or potential effect on value creation.|
OUT OF THE 28 TOPICS, 25 WERE CONSIDERED MATERIAL TOPICS.
Each topic that was considered material has an overall score between 2.51 – 3.00. Overall score is the average of the scores from providers of capitals and TWG for impact and influence. In addition, several topics relevant to the business operations were also considered material. The following topics were identified as material for First Gen:
|GOVERNANCE, FINANCIAL AND ECONOMIC||ENVIRONMENT||SOCIAL|
|Executive level responsibility on economic and ESG topics||Climate Strategy||Human Capital Development and Employee Well-being|
|Non-financial indicators in company KPI||Water & Wastewater-related Risks & Management and Efficiency||Labor Practices|
|Risk and Crisis Management||Energy Consumption||Stakeholder Engagement/ Community Relations|
|Innovation Management||Waste & Hazardous Materials Management and Efficiency||Human Rights|
|Supply Chain Management||Environmental Compliance||Quality, Occupational Health and Safety|
|Financial Implications due to Climate Change||Land Use and Biodiversity||Diversity and Equal Opportunity|
|Indirect Economic Impacts||Environmental Policy and Management Systems||Socio-economic Compliance|
|Resource Allocation||Electricity Generation/ Energy Supply Mix/ Opportunities in Renewable Energy|
|Materials and Resource Use|
|Fossil Fuel Involvement|