First Gen Integrated Report 2019

About the Report

Materiality Determination Process

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:

  • INDICATORS OF INTEREST TO THE STAKEHOLDERS
  • ADDRESSING GOVERNMENT REGULATIONS
  • WITH FINANCIAL IMPACTS CRITICAL TO THE INVESTORS
  • INDICATORS THAT ARE ESSENTIAL TO IMPROVE OUR SERVICES TO OUR VARIOUS STAKEHOLDERS.

To determine the sustainability parameters for a diverse audience, First Gen analyzed appropriate indicators from 10 organizations, consisting of:

  • 3 STANDARDS/FRAMEWORKS
  • 4 CREDIT RATING AGENCIES
  • 3 GOVERNMENT BENCHMARKS

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:

  • GLOBAL REPORTING INITIATIVE (GRI)
  • SUSTAINABILITY ACCOUNTING AND STANDARDS BOARD (SASB)
  • TASK FORCE FOR CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
  • UN GUIDING PRINCIPLES ON BUSINESS AND HUMAN RIGHTS (UNGP-BHR)

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:

  • How significant is the impact of the disclosure or matter on First Gen’s ability to achieve its business goals and thereby create value?
  • How significant is the influence or the degree of control that First Gen has on the disclosure or matter?

The table below shows the scoring criteria for materiality.

TOPIC SCORE DESCRIPTION
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