Sustainability

Social Performance

The Company’s workforce is driven by the Lopez values, and guided by company policies and procedures. First Gen supports employees’ holistic growth by providing physical and emotional wellness programs, training and seminars, and education campaigns on relevant environment, safety, and health issues.

First Gen abides by the Labor Code of the Philippines, among other regulations, as well as its Manual on Corporate Governance, Code of Business Conduct, and Ethics and Company Code on Employee Discipline supplemented by several policies.

Recognitions

First Gen received the following awards:

Award of Excellence for Achieving 9,782,533 Safe Manhours without Lost Time Incident from July 2016 to June 2019 from the Safety Organization of the Philippines, Inc. (FGPC, FGP, FNPC)
Safety Excellence Award in Recognition for having attained Zero Lost Time Incident from November 1, 2018 to October 31, 2019 from the Safety Health and Environment Association of the Power Energy Sector (FGPC, FGP, FNPC & EDC)
National OSH Champion for Industry category – 11th Gawad Kaligtasan at Kalusugan from the Department of Labor and Employment (MAGBU)
Scheduled Generators Certificate of Exemplary Compliance with the WESM Rules – Ninth Rank for 4th Quarter 2018 (FGP)
Scheduled Generators Certificate of Exemplary Compliance with the WESM Rules – Second Rank for 4th Quarter 2018 (FGPC)
Most Outstanding CSR award in environment for BINHI, Finalist, Most Outstanding CSR and Collaboration Project category for 10Million in 10 Years For a Greener Negros from the League of Corporate Foundation (EDC)

Organizational Management

(GRI 102-8, 401-1, 401-3, 405-1, 412-1, 412-2)

Recruitment

First Gen has a procedure on recruitment and hiring. Its objective is to source competent, highly motivated individuals who are willing to contribute to the attainment of First Gen’s goals and strategic objectives. Selection of candidates is based on qualifications, skills, experience, character, and capacity to perform the duties and assume the responsibilities of the job.

First Gen offers work opportunities for qualified applicants ready to engage in the energy sector. Applicants can see job opportunities at http://firstgen.com.ph/careers

Manpower Profile

New employee hires and employee turnover

	Hiring Rate	Turnover Rate
Male	4.0%	19.4%
Female	1.8%	6.4%
Total No. of Employees	5.8%	25.8%

Employee Benefits

First Gen does not only offer learning and development growth but offers a compensation package to motivate, retain and reward employees. Employees are granted 13th month pay, rice and uniform allowances, paid time off, accumulated leaves, insurance, medical reimbursement and annual physical examination (APE). Retirement benefits for all levels are also available.

Parental leaves are also provided of which 8 male employees and 17 female employees availed of. While the return to work rate is 100%, the retention rate until end of 2019 was 88.9% for male and 100% for female.

Human Rights and Equality in the Company

All worksites of First Gen are subjected to human rights impact assessments. We adopt the FPH Human Rights policy issued in November 2018. In doing so, First Gen avoids causing adverse human rights impacts in its operations. But should these occur, the Company shall facilitate access to a grievance redress mechanism.

Of the Company’s workforce, 16% participated in training on human rights policies and procedures with a total of 1970 hours of training.

First Gen strengthened its Anti-Sexual Harassment (ASH) procedures and promoted Gender Equality and Diversity Awareness as part of the Company’s Human Rights Safeguards policy. All work sites of First Gen are subjected to human rights impact assessments. First Gen also adopts human rights-related policies of FPH. In doing so, First Gen avoids causing adverse human rights impacts in its operations but should these occur, the Company shall facilitate access to a grievance redress mechanism.

Other Company policies related to human rights are as follows:

Human Rights Policy
Cultural Heritage and IP Policy
Responsible Asset Protection Policy
Anti-Bribery and Corruption Policy
Policy and Data Relating to Health, Safety, and Welfare of Employees, Including Company Sponsored Trainings
Board Diversity Policy

The UP Center for Women & Gender Studies facilitated a forum for the Company, discussing the following topics:

Sexual Orientation, Gender Identity and Expression (SOGIE)
Sex and Gender
The Gender Division of Labor and Other Gender Concepts and Gender Statistics
Mind Your Language: A Deep Dive into the Gender Fair Language, and
Company Policy on Anti Sexual Harassment (ASH) and the ASH law

Employee Growth

(GRI 404-1, 404-2, 404-3)

Performance Engagement Process (PEP) is conducted to all employees based on their performance on set goals and targets . The Company provides various training programs, namely :

Functional programs that develop and enhance function-specific skills and also increase environmental awareness through SDG Workshop on Climate Change, marine conservation, and wildlife conservation to name a few.
Leadership programs to enhance the future leaders’ strategic skills
People Management programs to help people managers handle their subordinates effectively
Programs that help enhance HR practitioners’ skills

The Company promotes holistic employee growth through its Development Programs. The Development Programs have four main themes:

Core programs: equips people within the Company and its subsidiaries with the required knowledge and skills employees must have during the first year in the organization.
Leadership programs: focused on developing skills required in future leaders
Team Development programs: focused on developing higher levels of team performance. These programs provide avenues of solving team and people engagement concerns through interactive development modules
People Management programs: focused on providing the fundamental capabilities required of people managers in managing and developing the Company’s human capital. The programs are based on the People Management Series Curriculum

Based on the training programs conducted in 2019, the average training hours per employee are as follows:

People Management Series Curriculum

The Company also prioritizes the continuous education of its leaders (assistant managers to executives) through the ELS program. The program provides common language and tools across the organization, accelerates learning, broadens perspectives, fosters collaboration, and ultimately, contributes to the delivery of results. Insights from the program are discussed in the following strategy and planning discussions.

First Gen leaders attended various learning sessions in 2019. These sessions include:

Building Organizational Agility by Ranjay Gulati
Agile Project Management by Adoptovate, an affiliate of Boston Consulting Group,
Executives and employees learned the Agile process and how it can be adopted in the organization’s various tasks
Big Pivot by Andrew Winston, and
Provided executives the insight on how the organization can adapt in a hotter, scarcer, and more open world
Strategy That Works by Paul Leinwand
Aims to close the gap between strategy and execution

Employee engagement and well-being

The Company created a culture roadmap composed of collaborative activities requiring cooperation, assistance, and volunteerism among employees. The general employee engagement program called Uplift|Unwind includes activities that promote spiritual, mental, physical, and social growth such as learning sessions, recreational workshops, year-end parties, sports and wellness club activities, among others.

To take better care of the employee’s well-being, various sessions and workshops on mindfulness and mental health were conducted. Some programs are as follows:

Girl Power: Unleashing the Best in our Women
Mindfulness for Leaders
Managing Anxiety: Calming the Nagger in Your Head
Managing Emotions at Work

Mental Health in the Workplace
Mind Over Money
Preparing Yourself for Retirement
Secrets to managing Your Personal Energy

The Company also offers employees professional counselling and life coaching sessions they can avail for themselves and their loved ones. Employees also have access to 24/7 hotlines, chat support, and face-to-face sessions. Quiet rooms and prayer rooms are also provided in the head office.

Girl Power Activity conducted on April 5, 2019 at Head Office

Happy Hour enjoyed by employees on Friday

Managing emotions at work seminar on September 19, 2019 at the Head Office

Summer beach getaway in El Nido, Palawan

Occupational Health and Safety Management

(GRI 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10, EU17)

First Gen has also established its Occupational Health and Safety Management System (OSHMS) and Environment, Safety and Health (ESH) Policy. These are cascaded down to its operating assets, ensuring that all employees and outsourced workers know how to determine hazards and risks and consciously promote and maintain safe and healthy workplace and environment.

Its subsidiaries FGPC, FGP, FNPC, FG Hydro, and FG Bukidnon’s OSHMS are working on the migration of their OHSAS 18001:2007 certification to ISO 45001:2018. All subsidiaries are audited annually by their accreditation bodies as well as the Corporate Quality, Environment, Safety and Health (QESH) group. Other subsidiaries have also established their OSHMS and are working towards certification. First Gen assesses identified OSH risks and maintains a registry of OSH risks and action plans for mitigation to ensure that implemented measures addressing these risks are monitored based on effectiveness. Employees and workers participate during risk assessment and in the development of OSH programs. They also have representatives in the Environment, Safety and Health (ESH) Committee that tackles ESH concerns, incidents, investigation results and corrective actions. All implemented, revised, or new laws are disseminated to employees for their compliance. All employees undergo annual physical examinations to assess if they are fit to work based on the organization’s health and safety standards.

Risk assessment and controls in the OSH management system are referred from the following:

Labor Code of the Philippines (PD 626/442), as amended by various Presidential Decrees and Executive Orders

Philippine Occupational Safety and Health Standards Manual (standards and rules amended by various Department Orders and Memorandum Circulars)

Sanitation Code of the Philippines (PD 856)

An Act Strengthening Compliance with Occupational Safety and Health Standards and Providing Penalties for Violations thereof (Republic Act 11058) and its Implementing Rules and Regulations (Department Order 198-18)

Fire Code of the Philippines (Republic Act 9514) and its Implementing Rules and Regulations

OSHAS 18001:2007 / ISO 45001:2018

The list of priority OSH programs based on risk assessment include 1) safe work practices including permit to work system, 2) motor vehicle safety, 3) emergency response plan, and 4) contractor ESH Management.

Occupational Safety and Health (OSH) Trainings are identified and assessed based on regulatory requirements, results of risk assessments and required competency of personnel responsible for the task. Emergency drills are also conducted at all operating assets and at the Head Office. Results of drills are also evaluated as part of improvement process.

Occupational Safety and Health Trainings Conducted in 2019:

8-hr Mandatory OSH Orientation
Managing Employees with Vulnerabilities
Defensive Driving
Mental Health: Personal Resiliency Session
Fire Prevention and Control
NC/CP Safety Rules Training
First Aid, BLS, AED Training
Permit to Work Standard/Safety Rules
Healthy Heart Lecture
SAP/AP Safety Rules Training
ISO 45001 Lead Auditor Training
Stress Management Training
Lifting and Rigging Training and Certification
TB Awareness Lecture
Liver Cancer & Viral Hepatitis Lecture
Training on Work-Relatedness of Disease

Medical emergency drill at Avion Power Plant on May 28, 2019

Use of PPE and right equipment during maintenance works

First Gen ensures that the workforce is actively engaged in all aspects of the ESH Management System, particularly on the following:

Development and review of the ESH Policy and ESH objectives, targets and action plans
Hazard identification, risk assessments and determination and implementation of controls
Incident reporting and investigation
Consultation where there are changes that affect the ESH arrangements
Representation on ESH matters
Feedback on ESH program implementation, relevance, and effectiveness

Different communication methods are used to gather feedback and share information on ESH programs and issues such as – ESH committee meetings and forums, team briefings, notice boards, and other communication channels.

All incidents shall be reported to supervisors and management. Depending on the results of the incident, appropriate and timely investigation is implemented. Investigating teams are composed of management, supervisors and workers who are either 1) knowledgeable of the investigating process, and 2) proficient in the tasks or work involved in the accident.

Several investigation techniques are employed such as TapRoot, Root Cause Analysis, and Failure Mode and Effects Analysis, depending on the nature and result of the incident. Results of investigation led to the formulation of appropriate actions to prevent recurrence of accidents. Risk assessment on proposed corrective actions are also done before these are carried out. All lessons learned in the accident are disseminated to the organization as part of administrative control. The actions taken are evaluated for effectiveness. To further avoid accidents, all near miss incidents are reported for proper actions.

The Risk Assessment and Management process identifies the following risks and hazards:

Human-caused events (accidental and intentional), and
Natural hazards (geological, meteorological, and biological)

The Company conducts an impact analysis to determine the potential for detrimental impacts of the hazards on conditions including, but not limited to, the following:

Health and safety of persons in the affected area at the time of the incident (injury and death)
Health and safety of personnel responding to the incident
Continuity of operations, property, facilities, and infrastructure
Delivery of services
Environment, Economic and financial condition
Regulatory and contractual obligations, and
Reputation of or confidence in the company

First Gen also ensures that the contracted workers working within the Company are provided with relevant clinical services such as medical consultation and first aid in case of a medical emergency. A referral system is also offered to their partner hospitals. They are also invited to participate in the Company’s health promotion and education programs. The Company also provides support in developing their OSH programs.

Workers covered by an occupational health and safety management system

	Percentage of total employees covered	Percentage of total workers covered
Covered in general	100.0%	100.0%
Internally Audited	100.0%	100.0%
Externally Audited	11.5%	26.6%

	Employees	Contractors	Total
Actual Manhours Worked	4,639,183	14,982,426	19,621,609
Work Related Fatalities (no. of cases)	0	0	0
Fatality rate	0	0	0
Disabling Injury (no. of cases)	0	2	2
Medical treatment (no. of cases)	4	12	16
Total Recordable Incident Rate*	0.2	0.2	0.2
Near Miss (no. of cases)	36	9	45

Work-related diseases and preventive measures

Some diseases related to work were identified and were formulated with actions to prevent occurrence.

Potential work related diseases	Preventive Measures in Place
Heat Exhaustion	- Provision of hydration stations and spot cooling - Learning Sessions for Workers - Worker Accilimatization - Work-rest regimen - Minimize heat exposure
Snake bite/ Bee Sting	- Learning Session on Bess Sting/ Snake Bite Prevention - Provision of Snake gaiters
Musculo-skeletal Disorders	- Learning Session Ergonomics - Workstation Evaluation - Provision of Equipment to address Ergonomic issues
Noise-induced Hearing Loss (NIHL)	- Hazard Identification Risk Assessment and Control (HIRAC) - Conduct noise level monitoring - Strict requirement of hearing protection device (PPE) when entering PPE zone - Conduct of surveillance hearing test
Diseases and Injuries secondary to Chemical Exposure thru inhalation, Ingestion, Eye & Skin	- HIRAC in place - Strict implementation of chemical safety management in the laboratory - Proper handling, labelling & storage of chemicals at warehouse and laboratory - Ensure calibrated H2S detectors during field activities - Gas mapping prior to critical activities

External Partnership

(GRI 103-1, 103-2, 103-2, 204-1, 308-2, 410-1, 414-1, 414-2, 418-1)

Contractor compliance

First Gen continues to influence its contractors to abide by the Company’s environment, safety, and health (ESH) standards, and to comply with the applicable ESH laws and regulation through the implementation of the Contractor ESH Management (CESHM). The CESHM was rolled out in 2018 to project proponents and contractors and fully implemented in 2019.

Contractors are assessed during these phases:
1) pre-qualification and selection of contractors based on ESH criteria,
2) pre-job review of contractor’s ESH plans, and
3) work-in-progress evaluations.

This process ensures that First Gen shall only engage contractors that are legitimate, reliable, responsible and compliant with the national labor laws and regulation in the country and give equal consideration to environment protection and the safety and health of its workers.

Due diligence on the contractors are conducted based on the Company’s checklist including environmental and social criteria. All contractors are required to undergo physical examinations to ensure that they are fit to work. As required by the OSH law, all contractors have their assigned qualified Safety Officer and PCO in project. Orientations on the First Gen work policies and ESH mandates are required before the assumption of work at First Gen premises. Aside from the daily routine inspections, audits are also conducted by the proponents and QESH personnel to assess the implementation of submitted ESH plan by the contractor. They also take part in the emergency drills of the site they are working within. The proponents are required to submit contractor performance evaluation after every contractor’s completed project which will serve as one of the bases in future selection of contractors.

This process is beneficial for the Company by strengthening internal communications among proponents, QESH representatives, and contractors. It also provides guidance to the contractors on compliance with regulatory requirements and capacity building. First Gen has assessed 29 contractors in 2019, 14 of which completed compliance to national labor laws. Furthermore, second-party audits by the proponents and QESH representatives are conducted to evaluate the performance of contractors for the work-in-progress activities and projects based on their submitted ESH programs and other regulatory requirements. Findings were mitigated thus, there were no significant negative impacts on the supply chain.

Common Findings on Contractors

Non-submission of DOLE Reports such as Annual Medical Report, Accident Report, etc.
Failure to establish an appropriate ESH Management System that would address workplace risks
Inadequate safety and health training program for work
No established internal ESH audit program

Of the security personnel, 56% of the 1058 were provided with training on:

Voluntary Principle on Human Rights & Security
Anti-sexual Harassment (Learning Session)
Gender sensitivity
Towards a Sexual Harassment-Free Workplace

Community Collaboration

First Gen ensures that the community it operates within are assisted and supported through health and safety, education, livelihood, the environment, disaster response and local culture. Constant engagement with the community, timely dissemination of information and query response are essential in engaging and addressing stakeholder concerns.

Community Investments	$ 3,249,065.52
Regular Program	$ 3,230,715.12
Health	$ 105,157.45
Education	$ 1,020,409.84
Livelihood	$ 410,934.31
Environment	$ 1,080,274.62
Emergency Response and Relief	$ 70,234.11
Socio-Cultural/External Relations/Promotion	$ 474,604.64
Project Evaluation and Assessment	$ 69,100.15

Collaborating with stakeholders

First Gen considers its stakeholders also as partners thus communication through various stakeholder engagements is carried out. For relationships with the stakeholder, different groups are responsible for ensuring effective communication with them. Investor Relations Group handles the information dissemination and response to investors’ queries through meetings with investors and public disclosures in a timely manner while First Gen Energy Solution (FGES) and the Operations Group manage the communication with customers; obtaining customer feedback; and responding to their concerns. First Gen got an above satisfactory rating from its customers through the satisfaction feedback mechanism conducted by First Gen Energy Solution in 2019. (FGES).

Procurement Practices

First Gen is committed to efficiently procure the necessary products and services, at the best possible value, to address the needs of the Business and Support groups and ensure delivery promptly. In the organization’s procurement practices, the team considers both locally-sourced and foreign sourced material in reference with the established criteria: (1) amount, (2) delivery lead-time, (3) passed technical standards/ technical specifications set by the proponents, and (4) quality of the products offered.

The Company also believes that suppliers can contribute to social impacts through the products and services that they provide to the company. Thus, the company should be aware of the actual and potential social consequences of its suppliers and ensure that these impacts are addressed and performance expectations are agreed to eliminate environment, safety and health incidents or injuries. First Gen transacts with local and foreign suppliers that have successfully passed the accreditation requirements as well as the technical and the environmental, safety and health assessments. FIRST GEN CONTINUES TO SUPPORT LOCAL ECONOMY WITH PHP 30.78 BILLION WORTH OF PURCHASES FROM LOCAL SUPPLIERS. This constitutes 94.5% of the total purchases in 2019.

Indigenous Peoples

As stipulated in the Company’s Cultural Heritage and Indigenous Peoples, First Gen also recognizes the Indigenous Peoples (IP) as partners in its operations. The Company upholds the rights of the IPs in their territories and respects their cultural integrity.

Conduct of daily toolbox meetings to increase OSH awareness at work

Drug testing for workers as part of OSH Compliance

Employees and workers participating in blood letting activities in FGCEC

First Gen Integrated Report 2019