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Natural Capital Performance



As we continue to grow and expand our energy portfolio, First Gen remains committed to its mission of “Forging Collaborative Pathways for a Decarbonized and Regenerative Future”. We shall lead the transition to a decarbonized energy system. Our strategies are founded in our objective of strengthening clean energy position through a diverse, complementary, and reliable portfolio of natural gas and renewable energy. We are firm in our strategy that the development of our natural gas business is a necessary step in our journey towards decarbonization and regeneration as the transition fuel to continue supporting the DOE’s PEP 2040. The government plan highlights the country’s ambition to significantly increase renewable energy and natural gas capacities and decrease our dependence on coal. The government program aims to increase the share of renewable energy to 35% by 2030 and 50% by 2040. First Gen’s RE subsidiary, Energy Development Corporation continued to participate in the renewable energy (RE) expansion program in 2022 and plans to continue this path in the future.

As we continue to develop, grow, and build on our platform of renewable and low-carbon energy assets, our way of play will continuously involve the responsible utilization and preservation of our natural resources for the welfare of our current and future generations. Our mission, our way of play and our Environment, Safety and Health Policy are the guiding directions as we continue to create value in our energy portfolio for both our manufactured and natural capital.

As stated in our Environmental, Safety, and Health (ESH) Policy, First Gen commits to preserve and enhance the environment. We maintain an Environmental Management System (EMS), covering our business development, project monitoring, and asset management activities to reduce environmental emissions, effluents, and wastes and promote the efficient use of energy, water, and other resources. The EMS of our subsidiaries: FGPC/FGP/FNPC, FGHydro, FG Bukidnon, EDC and recently, PMPC maintain individual certifications to ISO 14001:2015. We annually review our environmental risks to ensure the effectiveness of our mitigation strategies for environmental protection and preservation. Consistent with the EMS protocols, all our subsidiaries undergo the annual audits conducted by the: 1) Corporate Quality, Environment, Safety and Health (QESH) team; and 2) their respective certifying body. The ESH Policy is posted on the Company’s website.

With the environmental programs in place, First Gen has no incidents of non-compliance with environmental standards and regulatory requirements of the country.

Emissions


The Greenhouse Gas (GHG) emissions of First Gen were generated from using natural gas as the primary fuel for First Gen’s combined cycle gas turbine (CCGT) power plants and other renewable energy technologies, such as hydropower, geothermal, solar, and wind. These emissions affect various sectors of the economy and energy supply security.

Figure 1: Total Carbon Emissions (in Tonnes CO2e)


Note: The Scope 1 Emission for 2021 was changed from 6,405,277.20 to 6,032,939.2 due to the corrections made in the 2021 generation data of San Gabriel and Avion Natural Gas Plants.

The natural gas platform in First Gen Clean Energy Complex (FGCEC) makes up the 84% of First Gen’s Scope 1 emissions. The observed increase in total emissions from 2021 to 2022 in Figure 1 is due to the increase of our Scope 1 emissions, affected by the increasing activity of the various industries of the economy as it recovers from the pandemic and resulting in continuous energy demand. Furthermore, due to the decreasing supply of natural gas from the Malampaya Gas Field, the power plants in FGCEC have relied on liquid fuel as a supplement, thus resulting in increased emissions given the innate properties of liquid fuel. The ongoing construction and eventual operations of the FGEN LNG Interim Offshore Terminal (IOT) shall mitigate these emissions by ensuring a constant supply of natural gas thereby significantly decreasing the use of liquid fuel. The IOT also has the potential of enabling other natural gas industries in boosting our national transition to decarbonization.

Figure 2: Natural Gas Carbon Emissions (in Tonnes CO2e)

Note: The Scope 1 Emission for 2021 was changed from 5,355,433.40 to 4,982,953.0 due to the corrections made in the 2021 generation data of San Gabriel and Avion Natural Gas Plants.

Figure 3: Hydro Carbon Emissions (in Tonnes CO2e)
Figure 4: Geothermal/Solar/Wind Carbon Emissions (in Tonnes CO2e)

First Gen’s emission intensity in 2022 was 0.30 compared to the 2021 emission intensity of 0.31 as shown in Figure 5. This reduction was contributed by the decrease in the GHG emission intensity of FGCEC in 2022 compared to 2021, primarily due to the decrease in liquid fuel consumption and more available natural gas in its operation in the 2nd half of 2022 when the natural gas supply was reallocated to FGCEC.

For our 2022 natural capital performance, the amount of carbon emissions generated from producing the same amount of energy of 22,352.42 GWh is 63% lower than a coal-fired power plant. Moreover, producing power using our clean and renewable energy, prevented the release of 11,629,336.3 tonnes of greenhouse gas emissions (tCO2e), equivalent to the removal of approximately 2,505,764 gasoline-powered passenger vehicles in one year. We are constantly monitoring updates on emerging technologies that can further decarbonize our gas plants, such as carbon capture technology and using alternative fuels such as hydrogen, batteries, and other clean energy options.

Figure 5: First Gen Overall Emission Intensity



Other Emissions Affecting Air Quality

Aside from GHG, we consistently monitor our other emissions to comply with regulatory standards. The measured concentrations of these pollutants were significantly lower than the emission limit values set under RA 8749 (Philippine Clean Air Act) due to the dry-low NOx technology, embedded in the plants’ combustion systems. The total emissions and the emission intensity are shown in the table below.

Table 1: Other Significant Air Emissions

Decarbonization Initiatives Implemented

Methane Fugitive Emission Management Program

First Gen Clean Energy Complex (FGCEC) continues to implement the Methane Fugitive Emission Management Program which started in July 2020. The program aims for the early detection of fugitive emissions using an optical gas imaging camera, resulting in the rectification of gas leaks and reduction of fugitive methane gas emissions from gas leakage. Based on this program, recorded gas leaks in 2022 had a flow rate significantly less than the 6 cubic ft/hr standard based on the US Methane Standards of 2016. FGCEC’s total fugitive methane emission was equivalent to 132 tonnes CO2 e which was 98.09% lower than the 2019 baseline. In December 2022, the complex conducted the first natural gas leak survey, which is set to be carried out twice a year. This program contributed to the periodic identification of leak sources and performance of immediate corrective maintenance activities to address them.

Figure 6: FGCEC Methane Fugitive Emissions Reduction Performance

Electric Vehicle (EV) Initiative

In 2022, we installed an EV fast charging station in the FGCEC. This charging station sources energy from the solar panels installed in the San Gabriel warehouse and provides the power requirements of the EV used by the employees in our site for official business trips. By using the EV, we prevented approximately 1 ton of carbon emission per year as opposed to using a vehicle powered by diesel or gasoline.

The electric vehicle initiative was also implemented by EDC in 2022 when it launched its first Geo 24/7-powered vehicle. EDC is currently in the pilot stage of using electric vehicles where the charging stations are fueled by steam energy from its Tongonan Geothermal Power Plant in Kananga, Leyte.

Preparatory works for the GHG Readiness Assurance Project – External Limited Assurance of GHG

In 2022, corporate QESH teams of First Gen and EDC collaborated to source potential third party entities that can provide limited assurance of First Gen’s GHG emission data gathering, analysis and monitoring processes. The GHG assurance project is one of First Gen’s initiatives to further enhance the organization’s capability in ensuring that the GHG monitoring and reporting systems in place are in accordance with global industry standards. This is in order for our organization to be assured of having an accurate, reliable and quality GHG data reporting system that is being used in the different disclosures of the Company to various external stakeholders and investors. First Gen QESH implemented an internal baseline assessment for its facilities to prepare for the planned engagement of a third-party consultant’s readiness assessment of its GHG monitoring and reporting systems. The internal baseline assessment adapted the six basic steps of the GHG Protocol Framework and established baseline information of the current state of our GHG monitoring and reporting process. This can streamline and efficiently manage the data information requests and engagement activities between the First Gen Technical Working Group and the third-party consultant during the readiness assessment. The GHG Project readiness assessment is expected to be completed by the second quarter of 2023.

Clean Energy Advocacy

The Net Zero Carbon Alliance (NZCA) is an initiative of EDC. Established in September 2021, NZCA is EDC’s response to its mission to forge collaborative pathways for a decarbonized and regenerative future.

As the country’s first initiative spearheaded by the private sector to achieve net zero carbon emissions among businesses, NZCA seeks to inspire and assist Philippine businesses in taking immediate steps to achieve carbon neutrality by 2050 and contribute to the country’s efforts to address its climate crisis.

NZCA provides its partners with a framework to achieve its goal by sharing best practices, scaling up carbon emission reduction and tracking, and providing better access to green financing, among many other capacity-building tools. In 2022, six (6) new partners joined NZCA’s pool of partners (6 six pioneer partners).

In 2022, EDC launched an Innovation Program on Decarbonization which explores technologies that reduce carbon emissions in geothermal operations. Moreover, EDC’s multidisciplinary teams conduct feasibility studies on technologies such as carbon captureand storage and carbon recycling.


Energy Efficiency


First Gen’s energy consumption for power generation originates from raw sources and electricity purchased from the grid. As shown in Figure 7, the increase in energy consumption for 2022 is attributed to the corresponding increase in generation.

Figure 7: First Gen Overall Energy Consumption (GJ)

First Gen’s energy consumption for power generation originates from raw sources and electricity purchased from the grid. As shown in Figure 7, the increase in energy consumption for 2022 is attributed to the corresponding increase in generation.

Table 2: Energy Efficiency Initiatives

FGCEC installed solar PV panels on its properties to significantly reduce the GHG emissions caused by house load power demand. The solar PV panels fall under the category of “change in fuel or power technology” and implemented the following efforts:

  • The Solar PV panels installed at FGCEC administration building generated electricity for the use of the said building amounting to 48.3 MWh of electricity with an equivalent GHG reduction of 17.4 tonnes in 2022.
  • Solar PV panels installed at the San Gabriel Warehouse supply the electricity requirement of the warehouse which generated 280.3 MWh of electricity with an equivalent GHG reduction of 100.9 tonnes in 2022.


Other Energy Efficiency Initiatives Implemented

Conduct of Baseline Energy Audits

In compliance with DOE’s Department Circular 2019-11-0014, the Implementing Rules and Regulations of RA 11285 Energy Efficiency and Conservation Act, First Gen facilities engaged the services of Pi Energy Inc. as an accredited DOE Energy Service Company (ESCO) to perform a baseline energy audit. The energy audit also served as an enabling activity to identify the energy consumption improvement areas of First Gen facilities that can aid in the development of applicable energy management and efficiency programs.

Water and Wastewater Management


Water Use

Water is a vital resource for First Gen since its serves as a primary source of power generation in its hydroelectric plants, with secondary operational use as a coolant for its natural gas and geothermal plants. It also provides the domestic water needs for all its assets. All First Gen power plants regularly monitor water withdrawal to ensure compliance with the extraction rate limits set by the National Water Resources Board (NWRB) for groundwater and seawater.

Table 3: Volume of Water Extraction, Discharge and Consumption per First Gen Facility

For our hydroplant operations in Pantabangan and Masiway, the volume of water used in power generation is dependent on the volume of water required by the National Irrigation Authority (NIA) to be released from the reservoir for irrigation purposes. The volume of water extracted and discharged for our hydro plant operations in Table 3 is the surface water that passed through the First Gen facility turbines and were returned back to the receiving body of water.

Figure 8: First Gen Overall Water Extraction & Discharge (in Megaliters)
Figure 9: First Gen Overall Water Consumption (in Megaliters)

Water consumption figures show relatively consistent values with a slight decrease in 2022 due to minimal well related activities (e.g., workover, quenching and drilling) for our geothermal plants in EDC.

First Gen ensures that all wastewater generated by the assets are properly treated before discharged into the environment. Wastewater treatment facilities yield effluents compliant with quality standards before their release into receiving bodies of water. Moreover, effluent quality is regularly monitored for its compliance with DENR Department Administrative Order 2016-08, 2021-19, and the Philippine Clean Water Act of 2004.

These efficient water consumption practices and proper wastewater management systems contribute to First Gen’s consistent efforts to minimize the environmental impacts of its operations.

Table 4: Management of Water as a Shared Resource
Table 5: Management of Water Related Impacts


Water Management Initiatives Implemented in 2022

FG Bukidnon – Water Meter Installation

In 2022, the plant completed the installation of water meters in each building in its Administration facility for the plant’s Water Management Program. The program aims to ensure that the water usage is within the average based on industry practice and to ensure the availability of water for daily and future use. The water usage initially measured in 2022 will be used as the baseline starting 2023 which should be at +/- 5%.

First Gen intends to participate in capacity building for water management initiatives in 2023 to equip the key personnel at the facility ground level with a systematic approach in identifying, measuring, monitoring, and reducing water consumption and wastewater generation from various activities.

Waste and Hazardous Materials Management


First Gen manages its wastes so that cross-contamination of non-hazardous and hazardous wastes are prevented from the point of generation, storage, transport, treatment, and disposal. The Company ensures that its wastes are managed according to the waste management hierarchy: elimination, reduction, reuse or recycling, treatment, and disposal according to RA 9003 (Philippine Ecological Solid Waste Management Act) and RA 6969 (Toxic Substances and Hazardous and Nuclear Wastes Control Act). Due diligence of third-party service providers is carried out in compliance with regulatory requirements.

The total volume of hazardous and non-hazardous wastes were slightly lower in 2022 compared to 2021. However, hazardous waste generated in 2022 started to increase due to the ramping up of onsite activities.

Figure 10: Total Weight of Waste Generated – Hazardous and Non-Hazardous (Tonnes)
Figure 11: Total Weight of Waste Diverted and Waste Diverted (Tonnes)
Table 6: Management of Waste Related Impact

Participation in FPH Capacity Building Sessions


Together with the other FPH subsidiaries, key groups in First Gen facilities participated in the decarbonization capacity building workshops hosted by the FPH Corporate Sustainability Group from May to November 2022.

Information Education Campaigns


First Gen maintains environment programs that primarily raise climate change awareness and encourage climate action among its employees, customers, communities and partner stakeholders. For 2022, First Gen continued to implement the “What’s Heating Up?” series under the Create of the Climate (CFTC) program.

Table 7: First Gen’s Environmental Information Education Campaigns in 2022

Protecting Nature’s Integrity and Biodiversity


First Gen is committed to safeguarding and enhancing the environment and the ecosystems where we operate our business since we depend on the resources provided by nature to achieve growth and ongoing value creation by providing clean and renewable energy to support our country’s energy security.



2022 Initiatives

FGCEC - Mini - Mangrove Forest

Located within the host barangays of Sta. Clara and Sta. Rita Aplaya of Batangas City, FGCEC maintains its 10-hectare mangrove area at the complex that has a carbon sequestration potential of approximately 88.4 tons/Ha.

This mangrove forest is a seat of biodiversity and provides a habitat for an array of aquatic and terrestrial species. It stabilizes the shoreline, minimizes erosion, and protects the area from storm surges and flooding.

Use of Seashells as Raw Materials for Paving Blocks

In 2021, a pilot project on the use of seashells as raw materials in the production of pavers was launched. The pilot project confirmed that seashells, which were previously disposed to sanitary landfills, could be used as aggregates in the production of pavers. In 2022, approximately 17,073 kg of seashells were used as aggregates in the production of 19,700 pieces of pavers and installed at the Forest Tree Nursery Driveway. This resulted to a reduction of 5.1% in the amount of non-hazardous residual wastes that was being dumped in sanitary landfills through its diversion as a useful aggregate in the production of a new product.

FGCEC - Adopt-a-River/ Water Body Program

First Gen also continues its long-term partnership with the DENR under the Adopt-a-River/ Water Body Program, which aims to protect and enhance the Cabubulag River in Brgy. Sta. Clara, Batangas City through regular water quality monitoring and cleanup activities.

FGCEC - Bantay Dagat

With the aim to continue and conserve marine biodiversity, First Gen also continuously supports the Bantay Dagat operations to protect the Verde Island Passage which is the Center of Biodiversity, in partnership with partner local communities and local government agencies.


BINHI PROGRAM

BINHI, in the continuing effort to be at the forefront of environmental conservation, is the nationwide greening program of our renewable energy subsidiary, EDC, which collaborates with the country’s top foresters, botanists, and wildlife biologists with over 200 partner organizations across the 16 regions of the Philippines. EDC has invested Php 27 million in 2022 towards its various environmental initiatives and watershed management programs.

Through this program, EDC has the objective to undertake holistic management and watersheds around its project sites and continue to implement its forest protection activities as part of its role as the deputized manager of the watersheds within four geothermal reservations in Albay, Sorsogon, Negros Oriental, Leyte, and Mt. Apo. The BINHI program aims to reforest degraded watersheds, preserve, and propagate threatened native tree species, and protect biodiversity outside its work sites.

EDC’s forest protection and biodiversity conservation initiatives aim to protect and maintain the integrity of habitats and ecosystems of the 127,608 hectares of forest lands within the geothermal reservations where the Company operates.

  • EDC and its local partners completed 3004.55 km of foot patrols and drone patrols within the identified focus conservation areas in 2022.
  • Forest patrols in 2022 resulted in eight apprehensions with the DENR, including the capture of five Agarwood (Aquilaria malaccensis) gatherers, and the confiscation of three hunting guns in Leyte.
  • With the contribution of EDC’s strict implementation of forest protection activities in cooperation with Task Force Bantay Kabtangan (TFBK), three cases on illegal forest activities, including illegal cultivation at the protected forestland were filed in EDC’s host municipality of Valencia in Negros Oriental.
  • No forest fires were reported within the geothermal reservations with the help of purposive forest patrols and increased patrol visibility to prevent forest fire occurrences.
  • Through EDC’s initiatives to protect the watersheds within the geothermal reservations, the forests and other land covers were enabled to sequester over 1.7 million tonnes of carbon dioxide equivalent (tCO2 e) each year from the atmosphere.

The Mapilig (Xanthostemon bracteatus), a species of ironwood, seen here thriving within the area of the Bacon-Manito Geothermal Project

The Company, through EDC, fully supports the restoration of open and denuded forests, and watersheds. Since its launch in 2008, the BINHI program has partnered with 88 forest communities to plant more than 10,000 hectares nationwide, making it the largest private sector-led reforestation initiative.

Partners tending to the Philippine native tree seedlings in the BINHI Vegetative Material Reproduction Nursery in Valencia, Negros Oriental as part of the forest reforestation program.

In 2022, the forest restoration program has generated 272,443 quality seedlings of Philippine native tree species in the central and satellite nurseries spread across the project sites. The seedlings were either distributed to partners to supply tree-planting activities or maintained in the nurseries as part of seedling stock for future initiatives.

Protected Species


First Gen, through EDC’s Biodiversity Conservation & Monitoring Program, continues to protect endangered species, with its in-house team of wildlife biologists and foresters and in partnership with expert groups such as the University of the Philippines Institute of Biology (UP-IB), Silliman University in Negros Oriental, and Philippines Biodiversity Conservation Foundation, Inc (PBCFI) in Negros Occidental.

With its first phase commencing in 2008, EDC has partnered anew with UP-IB for the third phase of the BCMP (BCMP III) which focused on:

  • Biodiversity Metrics,
  • Flagship Species Initiative,
  • Flora Conservation,
  • Botanical Treasures, and
  • the establishment of the UP-IB–EDC Biodiversity Hub

Due to the easing of pandemic restrictions across EDC’s areas of operations, the on-the-ground activities for the implementation of BCMP III have resumed in 2022 after being temporarily deferred in 2021. The conduct of biodiversity monitoring activities in EDC’s Bacon-Manito Geothermal Project (BMGP) resulted in the sampling of a total of 104 species of terrestrial vertebrate fauna and the observation of a total of 334 distinct morphospecies of flora. Of the 104 fauna species, three (3) are classified as threatened in the IUCN Red List. These include the Endangered Golden-crowned Flying Fox (Acerodon jubatus), the Near-Threatened Large Flying Fox (Pteropus vampyrus), and the Vulnerable Mottle-winged Flying Fox (Desmalopex leucopterus).

Vertebrate fauna species studied during the biodiversity monitoring activities in BGMP

Katmon Bayani (Dillenia megalantha), Tongonan Geothermal Project, Leyte

Philippine Warty Pig (Sus philippensis), Tongonan Geothermal Project, Leyte

Visayan Hornbill (Penelopides panini), Northern Negros Geothermal Project, Negros Oriental

Apo Myna (Goodfellowia miranda), Mt. Apo Geothermal Project, Cotabato

EDC also continued in 2022 the series of IEC and advocacy campaigns to promote awareness of the flora and fauna conservation as part of its Flagship Species Initiative (FSI).

Table 8: 2022 EDC Biodiversity Information Education Campaigns
Table 9: 2022 List of fauna, flora and mangrove species in the IUCN Red List in First Gen’s clean and renewable energy project operational areas (FGCEC and EDC)

As First Gen continues to move towards energy transition, we will continue to protect and create value for the planet with the decision to retain our zero-coal portfolio and develop more low carbon and renewable energy solutions with our natural gas power plants supporting our RE platforms. Our programs and initiatives on reforestation, protecting the biodiversity areas, and internal low carbon and energy savings mechanisms will be pursued to realize our mission of decarbonization and regeneration.



To know more how First Gen’s Natural Capital is contributing to the effort to forge collaborative pathways for a decarbonized and regenerative future, please see our Strategic Positioning section.