Maintaining Sustainable Practices
First Gen maintains a Quality Management System certified to ISO 9001:2015 and an Environmental, Safety, and Health Management System in accordance with ISO 14001:2015 and ISO 45001:2018. The Quality Policy was initiated in 2003, while the Environmental, Safety, and Health Policy was developed in 2013. These policies, which guide First Gen’s management systems and those of its subsidiaries, are maintained and reviewed periodically. These policies are available on the First Gen website.
Following the certification of the Prime Meridian PowerGen Corp (PMPC) to the three standards: ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 in January 2023, covering the audit of the 2022 operations, 100% of the Integrated Management Systems of First Gen’s operating companies are now ISO certified. FGHPC’s Asset Management System is also certified to ISO 55001:2014. To verify compliance with the standards and effectiveness of process implementation, the operating companies conducted internal audits. The First Gen Head Office performed corporate audits to ensure the streamlining of operating sites’ processes with the corporate standards. The certifying bodies also executed third-party audits to validate and verify conformance to the standards.
Maintaining the management systems and alignment of sustainable processes and practices enabled the organization’s efficient and safe operations, reliable power delivery to customers, and compliance with regulatory requirements while preserving the environment and maintaining good relations with the community.
Upgraded Digital Solutions to Meet Challenges and Demands
First Gen is guided by both its business continuity management (BCM) and information security programs to ensure the protection of critical business processes from the effects of major failures of information systems, industrial control systems, or disasters and to ensure their timely recovery, which includes appropriate backup systems and built-in resilience.
Since information security or cybersecurity is one of the Company’s identified risks, we are integrating the mitigating and preventive programs into our BCM. The Company gives due importance to the protection of information, systems, and infrastructures and the continuity of its operations in the event of a cyberattack or other security breaches.
To maintain and improve its information security posture, First Gen regularly conducts risk assessments to identify potential vulnerabilities and threats. The evaluation covers people, processes, and technology to identify potential weaknesses and implement appropriate security measures for effective risk mitigation. Additionally, incident responses, including guidelines for identifying and reporting security breaches and procedures for restoring operations and recovering lost data, are in further development to cover more critical events and incidents.
Employees are also educated and trained on best practices for information security, such as detecting phishing scams and protecting themselves and the organization from other cyberattacks. Establishing a culture of security within the organization is vital for First Gen, as employees are encouraged to promptly report suspicious activity and actively contribute to the protection of company assets.
Data privacy policies and information security management system (ISMS) procedures, standards, and guidelines are developed to test and update existing processes in order to match the demands of an evolving threat landscape, which include regular penetration testing and vulnerability scanning, and updating of software and systems which ensure protection against known security vulnerabilities.
In summary, First Gen’s information security and business continuity programs are essential components of its overall continuity plan and help to protect information, systems, and infrastructures and ensure the continuity of operations in the event of a cyberattacks or other security breaches. It includes risk assessments, the implementation of various security measures, incident response procedures, employee education and training, and regular testing and updating.
As with the other capitals, First Gen engaged its stakeholders: the employees, IT vendors and suppliers, and regulatory agencies to determine the challenges and concerns related to intellectual capital.
With the results of stakeholder engagements, risk assessments and challenges brought about by the hybrid work arrangements, cyberattacks, and systematic data management, several information technology (IT) or information security (infosec) programs added to the Company’s digital solutions in 2022. The cost of investment in IT and cybersecurity software, tools and systems in this reported year amounted to USD 5.3 million, having a minimal decrease from the USD 5.6 million investment in 2021. These solutions aim to address the following: 1) cybersecurity/infosec risks that surmised during risk assessments; 2) process improvement and efficiency; 3) compliance; 4) stakeholder value; 5) process safety; and 6) culture transformation.
To date, our First Gen IT Group is maintaining 43 information technology solutions that support the business operations, data and information integrity, security and privacy, and process improvement.
Offering Decarbonization Solutions
Anchored on First Gen’s mission of decarbonization, regeneration, and the 2050 Net-Zero goal, the Company seeks to deliver value to customers beyond the kWh while consistently elevating decarbonization solutions. With the industry transitioning towards a more retail and customer-centric market, First Gen broadened its strategies on value delivery to its customers. Hence, we conducted touchpoints with our customers and other stakeholders to supplement our understanding of their needs and expectations. These were carried out through the constant collaborations among our First Gen Energy Solutions (FGES) and customers and feedback collection through annual customer surveys. Beyond clean power delivery, we developed various value-added services (VAS) and influenced our customers to utilize and patronize the use of clean and renewable energy. Refer to Social and Relationship section on page 117 for the list of VAS offered to and availed by the customers.
As mandated in the Philippine Energy Plan, First Gen ‘s natural gas facilities serve as a transition fuel and the first step to the country’s path towards decarbonization, while we expand the Company’s portfolio of renewable energy. We continuously explore other sources of clean fuels and technologies such as Hydrogen that could possibly replace natural gas as fuel for its natural gas-fired power plants, and other RE sources and related technologies, such as Carbon capture and storage.
Upskilling Our People
In 2022, First Gen also collaborated with FPH for FPH Group-wide capability-building activities on the following: a) Human Rights Due Diligence, b) Waste Management and Circularity, c) Energy Efficiency, d) TCFD, e) Decarbonization, and f) CSR Review to support our mission and strategies. These workshops are intended to strengthen the capabilities of First Gen and all the FPH subsidiaries and to align with the methodologies and standards in setting ESG targets, indicators, and strategies.
To know more how First Gen’s Intellectual Capital is contributing to the effort to forge collaborative pathways for a decarbonized and regenerative future, please see our Strategic Positioning section.