First Gen consistently monitors its environmental, social, and governance metrics through various stakeholder engagements and materiality determination processes. These were carried out in 2020 by the University of Asia and the Pacific Center for Social Responsibility using the “Double Materiality” strategy. The Company reviews its material issues every three years. We are scheduled to conduct our materiality test next cycle.
Our approach consisted of two sub-elements:
- Financial materiality: Review of environmental, social, and governance (ESG) issues that may have an impact on the Company’s financial performance; and
- Impact materiality: Review of the Company’s effects on the economy, environment, people, and the sustainable development agenda.
In 2021, the Company’s ESG Technical Working Group and the Steering Committee analyzed and associated these material topics with the material aspects resulting from the rapid materiality assessment conducted by our parent company, First Philippine Holdings Corporation (FPH). The following methods were used to arrive at First Gen’s final list of significant ESG issues:
1
FPH and First Gen scanned all potential ESG issues from First Gen’s risk monitoring records, new laws, and regional and global ESG developments tracked from news reports, academic articles, and the energy industry.
2
The potential for creating favorable or unfavorable financial and sustainability impacts was then assessed for the universe of ESG issues using the following standards and references:
- SASB, TCFD, ESG standards of credit rating agencies, and performance standards of our investors and lenders for our financial materiality review; and
- The FPH environmental and social safeguards policies, GRI, the UN Guiding Principles on Business and Human Rights, and the UN Sustainable Development Goals for our impact materiality review.
3
The Steering Committee, which consists of representatives from various corporate departments, prioritized and approved the materiality list.
