page with nav

Strategic Positioning



First Gen’s strategic objectives guide our long-term strategies and draw from our mission of forging collaborative pathways towards a decarbonized and regenerative future.

We continuously refine the objectives through annual Strategy and Synergies Planning (SSP) activities, Risk Management, and other related strategic planning processes. These exercises transform our objectives into strategies for our day-to-day operations. The SSP process provides us with a holistic view of our external environment (i.e., market trends, opportunities, risk, and community impact) and internal context (i.e., organization needs, budget, and capabilities). These planning processes are also aligned with the company’s budgeting procedure to ensure consistency between resources and strategies. Moreover, our Risk Management Process provides an assessment of various threats that we must mitigate and adapt to. The processes involve key stakeholders, including senior management, and considers the inputs of various groups and departments who, in turn, interact with various other stakeholders outside the company. As such, we aim to create strategies that provide value to all stakeholders within the organization.

Through the SSP and similar planning processes, we create a roadmap to achieve a competitive market advantage and formulate climate-ready environmental solutions. This roadmap is consistent with our Decarbonization Journey, which is discussed in “Progress in Our Mission”.

Our Strategic Objectives and Long Term Vision



Our long-term vision is to become a decarbonized energy provider with a Net Zero portfolio by 2050. We aim to maximize the use of renewable energy sources while providing secure and resilient energy. Collectively, our objectives on decarbonization, growth, and stakeholder value embody our mission, purpose, and chosen path.


1. Grow by Expanding our Clean Energy Portfolio

The Philippine Energy Plan (PEP), which will be further discussed in our Outlook portion, maps out a future defined by massive growth in power capacity, predominantly driven by natural gas and renewables. As the country continues to wean itself off coal, it will require significant capacity additions from renewables and natural gas to meet the country’s significant power requirements while supporting its energy transition through a less carbon intensive energy mix. As such, our Outlook illustrates a future that is characterized by massive growth in gas and renewable energy.

Being a leader in Clean and Renewable Energy, First Gen can support the country’s energy security and energy sustainability goals.

As such, First Gen aims to grow its clean energy portfolio to as much as 13 GW by 2030. As we pursue growth, we also aim to increase the proportion of renewables in our portfolio. In line with this, we aim for up to 9 GW out of our 13 GW ambition to be powered by renewables.

Our progress in several growth projects, including the Gas Expansion, Hydro and Geothermal Developments, and the LNG Regasification Terminal, are examples of efforts that help us progress towards this Growth objective. Our continued focus in developing projects in our clean and renewable portfolio showcase our progress in terms of Growth.

We will grow our investments in low carbon natural gas to complement the growing demand for clean and renewable energy. As we expand our use of renewable energy, natural gas will continue playing a crucial role in energy security. At the same time, we will closely monitor decarbonizing technologies that can help us progress towards our Net Zero ambition. We also aim to develop a larger portion of renewables in our portfolio to diversify our platform, including growth projects in various renewable platforms such as Hydro, Geothermal, Solar, and Wind. By complementing renewable energy growth with expansion in natural gas, we aim to provide a stable and reliable supply of energy for customers while meeting the demands for cleaner and renewable energy sources.



2. Spur Decarbonization by Collaborating with Regenerative Partners

In line with our mission to forge collaborative pathways with our stakeholders, our decarbonization objective reflects our goal of empowering regenerative partners in the energy transition, consisting primarily of current and potential customers and partners. As the public increases its ability to choose clean energy, the opportunity to work with regenerative partners will also increase significantly. Currently, our efforts to expand our retail readiness and increase customer focus are examples of how we are making progress towards this goal. We continue making strides to cater to like-minded organizations who can be partners towards the clean energy transition.

Our long-term vision is to increase the breadth and depth of our relationship with regenerative partners and customers. As the market landscape transitions towards a more retail environment, we continue to progress our emphasis on serving specific customer demands.

This drives our efforts to scale up our retail readiness and improve our ability to create value for our customers. With a more democratized future energy market, we aim to provide comprehensive energy solutions by developing and offering products beyond kWh. We aspire to progress the advancement and adoption of emerging clean energy technologies and businesses that create value for our partners. By making low carbon products available to our customer base, we hope to help reduce national carbon footprint and spur decarbonization.


3. Go Beyond Shareholder Value by Creating Stakeholder Value

This objective focuses on First Gen’s commitment to elevate every stakeholder, as embodied in our regenerative and decarbonized mission and the Pentad Diagram. The first two goals highlight the value we provide to our investors, environment, and our customers. Having the entire Pentad of stakeholders in mind, this goal covers our aim to continuously improve our services for our co-creators and communities.

We ensure that the value we bring to our business also creates value for all our stakeholders as detailed in our Environment, Social, and Governance (“ESG”) objectives and initiatives. To progress in this goal, we have executed various programs for our communities and stakeholders, providing value to the environment (i.e. Binhi and other environmental and reforestation programs), society (i.e. execution of CSR programs), and governance (i.e. integrating the company’s Mission into our Planning processes).

Consistent with our Regenerative Journey, First Gen continues to embark on initiatives towards regeneration including efforts towards improving the following key metrics:

  • Environmental pillar: Decarbonization, Energy Efficiency, and supporting our nearby ecosystems
  • Social pillar: measures on creating value for our communities and employees
  • Governance pillar: Alignment with our decarbonized and regenerative Mission and Purpose

Our long-term vision for a regenerative future includes elevating everything within our reach. We focus on environmental integrity and social equity by closely tracking our footprint in various areas, including waste discharge, water usage, community development, and employee wellness. We continuously monitor and adopt best practices to balance our impact among all stakeholders. In the long run, we hope to spur inclusive development and growth for our organization and stakeholders.


To summarize the preceding discussions, the following table details our strategic objectives and their corresponding timeline, target stakeholders, capitals, resource allocation, strategic initiatives, outcomes, and impacts:

Strategic
Objectives		 Grow by Expanding our Clean Energy Portfolio Spur Decarbonization by Collaborating with
Regenerative Partners		 Go Beyond Shareholder Value by Creating
Stakeholder Value
Target Horizon Short to Long term Short to Long term Short to Long term
Target
Stakeholders
  • Investors - growing the portfolio will increase both the returns for investors and financing requirements
  • Co-creators - Coordinating requirements
  • Customers - meeting increased energy demands
  • Earth–growth will come largely from low carbon and renewable energy sources, improving national carbon intensity
  • Customer- increase customers with cleaner energy solutions; support our customers’ decarbonization efforts
  • Earth - reduce the nation’s energy carbon footprint by enabling the switch to renewable and cleaner energy options
  • Community - mitigate climate change impacts to the community; provide cleaner energy options
  • Investors - clean energy solutions will give investors resilient investments against climate change effects
  • Co-creators - source low carbon inputs across the entire supply chain
  • Customers - Assure customers that their products are from decarbonized and regenerative sources
  • Investors - Support investors’ sustainability & decarbonization objectives
  • Community - increase employment opportunities and improve community relations
  • Earth- Support decarbonization and regenerative efforts for the environment
  • Co-Creators: Provide co-creators with opportunities to collaborate towards decarbonization; Collaborate with co-creators towards decarbonized business models
Affected
Capitals
  • Financial Capital - funding requirement to develop new projects
  • Manufactured Capital - development of new plants and/ or enhancing existing plants
  • Intellectual - adapting new technologies for portfolio growth
  • Human Capital - enhance ability to lead growth-enabling projects; need to scale up multi-project development ability
  • Natural Capital - increased requirement for plant inputs as capacity is added
  • Financial - fund investments to achieve decarbonization targets
  • Natural - increase inputs from renewable sources
  • Human capital - internalize the organization’s goal to decarbonize and align operations; scale up capability to provide decarbonized value to customers
  • Manufactured- increase development of cleaner assets and technologies; explore non-kWh solutions
  • Intellectual - quickly adapt new technologies and best practices on decarbonization
  • Social and relationship capital - collaborate with customers, community,, regulatory bodies, suppliers, and competitors to decarbonize the nation’s energy grid
  • Social and relationship capital - understand stakeholder needs to forge loyalty and synergy
  • Human capital -develop a more holistic approach towards the five stakeholders
Resource
Allocation
Plans

Capital Fund Raising for Growth Projects

Selection of suppliers and partners

Allocation of human capital for growth projects

Scale up human capital allocated to creating value for regenerative partners

Investing in new technologies and systems to enhance values to customers and partners

Investment in key stakeholder activities (i.e. Binhi, Nature Based Solutions, etc.)

Investment in education activities for key internal and external stakeholders
Initiatives
  • Developing the organization and employee skills to support rapid growth and best practices from agile methodology (agile multi-project development)
  • Continued effort to maintain assets and increase efficiency of existing plants (resilient asset management)
  • Selection of potential suppliers, partners, and locations for new project development
  • Explore and scale emerging business models for the clean energy transition and support decarbonization
  • Collaborate with current and prospective customers and partners to advance regenerative principles
    1. Initiatives that educate the public on the importance of the clean energy transition
    2. Development of key projects that reduce our carbon (i.e., BINHI)
    3. Create platforms for sharing information across industries, i.e. Net Zero Carbon Alliance (NZCA)
  • Enhance our touchpoints and relationships with communities and stakeholders:
    1. Development of community-related activities to ensure development of partners
    2. Continuously monitor performance and environmental impact of our assets and operations
Target
Outcomes

Grow our portfolio to 13 GW by 2030, 9 GW of which powered by RE

  • Short-Term: Development of LNG Terminal by 2023 –to sustain current and potential gas projects [on-track], as well as develop additional RE projects
  • Medium Term (2025-2030): Grow through higher efficiency gas turbines and expanding our current RE portfolio
  • Long Term (2030 Onwards): Grow through increased share of Renewable Energy Capacity
  • Increase customers supplied with clean energy
  • Develop and market beyond kWh products & services
  • Sustain low carbon footprint for power assets
  • Sustained availability and reliability and increased efficiency of existing plants

Progress and stakeholder value priority will be measured through ESG Pillars:

Environment: Decarbonizing our assets/ lowering carbon intensity, and supporting our nearby ecosystems

Social:
Creating an safe and capable environment for our employees, communities, and co-creators

Governance:
Progressing the organization towards our Mission and Purpose
Impact on
Strategic Goal

By closely monitoring the progress of our current and future projects, we will increase our portfolio’s clean energy capacity.

Monitoring these milestones ensures that the organization will provide value to many customers and decarbonized partners.

Through serving multiple partners, we will support the country’s transition to renewable energy by providing a reliable power portfolio of clean and renewable energy sources.

Enhancing stakeholder value will increase credibility in collaborative pathways towards a decarbonized and regenerative future.

Crafting a Capability-driven Strategy to Pursue Our Objectives



First Gen is one of the country’s leaders in producing clean and renewable energy. Our diverse fuel mix, including natural gas, geothermal, solar, and wind, allows us to manage various risks and reduce our environmental impact. We also developed technical expertise by continuously improving our operations and enhancing our portfolio. We have also maintained steady profits and strong balance sheets. We leverage these unique organizational strengths to create an edge against competitors.

We further amplify these advantages by cultivating the organizational background that will achieve the strategic priorities. In recognition of the need to consistently develop crucial capabilities, we focus our strategy on the following capability system:

  1. Solutions-based engagement:

    We seek to create more intimate relationships with our customers, as we provide them with various products and decarbonizing energy solutions. The products and services we develop will be grounded on a deepunderstanding of our partners’ needs, as we increase our touchpoints with them to gain privileged customer insights.

  2. Clean energy advocacy leadership:

    We aim to create an environment that catalyzes decarbonization. We will do this by collaborating with partners to advance regenerative principles and increase support for the clean energy transition.

  3. Dynamic adaptation of regenerative businesses:

    We will localize and scale emerging business models that support decarbonization. We leverage our ability to learn, experiment, and replicate successful net zero business models to make more products available to the market.

  4. Agile multi-project development:

    We seek to deliver numerous projects simultaneously to deliver on our Growth objective. This capability is founded on cohesive work from planning to execution and a transparent and collaborative work environment. This will allow us to help ensure timely completion of work to supply a rapidly growing industry.

  5. Resilient asset management:

    We will ensure that our portfolio thrives under a constantly changing business, regulatory, and climate landscape. We shall closely monitor and mitigate potential risks across technological, commercial, legal, environmental aspects and capitalize on opportunities that increase the value of our assets.

First Gen’s strategic objectives are essential for risk management and taking advantage of opportunities presented by the external environment, which is progressively moving toward cleaner energy sources in response to the threat of climate change. These embody our approach to navigating risks, capitalizing on opportunities, and evolving our business model towards the future. Further, these objectives and strategies are founded on our identity as a clean energy solutions provider and our mission of bringing decarbonized and regenerative future to life.

We are well-positioned to take advantage of opportunities for a future powered by sustainable energy because we were early adopters in this field. Our clean energy portfolio of natural gas and renewals puts us in a strong position to provide products and services to ensure energy security as we go through this momentous change and pave the way for more RE development.