Professional Documents
Culture Documents
2023 March 20. LT Group SR 2022 - Final
2023 March 20. LT Group SR 2022 - Final
Employees 39
Employment 39
Safety and Well-being 44
Human Rights 47
Customers 49
Marketing and Labeling 49
Customer Health and Safety 50
Customer Engagement and Satisfaction 51
Digital Transformation and Innovation 52
Customer Data Privacy and Security 53
Society 55
Community Relations and Initiatives 55
Since 2019, LTG has embraced and integrated sustainable practices toward
resource optimization and operational efficiency. It has since committed
to issuing sustainability reports to mark the Company’s progress toward
heightened accountability, especially with regard to its environmental, social,
and governance performance. The scope of LTG’s 2022 Sustainability Report
includes LTG as the holding company and its local subsidiaries, Asia Brewery,
Eton, PNB, and Tanduay. PNB issues a separate Sustainability Report
containing the Bank’s full disclosure. The Philip Morris Fortune Tobacco
Company (PMFTC), under the management of Philip Morris International Inc.
(PMI), is not covered in full detail in this report and will be included in the PMI’s
sustainability report.
Unless otherwise stated, this report covers the period from the start of January
until the end of December 2022. The Company’s financial data and general
business information are all reported in the 2022 Annual Report, which can be
read in conjunction with this Sustainability Report. No external assurance has
been sought for the non-financial disclosures in this Sustainability Report. Still,
verification procedures and internal reviews have been carried out to ensure the
accuracy of all non-financial information.
This report has been prepared in accordance with the Global Reporting Initiative
(GRI) Standards and the sustainability reporting guide provided by the Philippine
Securities and Exchange Commission (SEC) through Memorandum Circular No. 4,
Series of 2019. This report also incorporates reporting standards and metrics created
by the Sustainable Accounting Standards Board (SASB) and the Task Force on
Climate-related Financial Disclosures (TFCD).
Dear Stakeholders,
With the adaptive leadership of our management team combined with the
resolute efforts of our employees, we have weathered the pandemic and
came out of it stronger.
By any standard, we are convinced that 2022 has been better than previous
years. Our focus has shifted from surviving to slowly reviving our economy.
For its part, LTG is pursuing strategies to stimulate its business growth
and do its share in helping the economy regain its strength. Alongside this,
we are steadfast in our commitment to promoting sustainability within our
operations. This year's sustainability report, with the theme “Advancing
our Sustainability Journey,” shows our steady progress toward becoming a
sustainable and inclusive business despite ongoing challenges.
Dear Stakeholders,
Yet, for the past three years, LTG has remarkably Protecting our biodiversity also remains a top
navigated through the uncertainty, thanks in large agenda for the Company in the coming years.
part to our dedicated employees and customers.
As the crisis continues, our programs and policies
With the gradual re-opening of the economy, we for employee development have also evolved.
are slowly expanding our business activities and We used a holistic approach to support and protect
taking this opportunity to reinvent our company. our employees during the pandemic. Health and
From a financial standpoint, LTG demonstrated medical services were provided, along with various
exceptional performance, culminating in the wellness programs. In addition, we recalibrated our
achievement of its greatest total revenue yet, policies on workplace safety to ensure a safe return
surpassing all previous records since the inception to work. Meanwhile, efforts have been put into
of sustainability reporting. We were able to enhancing the responsiveness and reliability of our
generate a total revenue of Php 128.28 billion, a mechanisms for reporting unethical behavior within
14% increase compared to 2021. Our wins boosted the workplace.
our motivation to work harder and deliver better
value to our customers. In 2022, we placed greater attention on supporting
community recovery in our areas of operation. We
Throughout the pandemic, the strength of our have implemented programs to enhance agricultural
corporate governance was also put to the test. productivity in key areas and training opportunities
We had to divide our attention between balancing for people. In education, we partnered with local
our stakeholders’ needs and responding to the organizations to rehabilitate schools and conduct
pandemic’s business impacts. Despite an unusual school supplies donation drives. Together with our
business scenario, LTG was able to comply with community partners, we rolled out green initiatives
relevant laws and regulations, enforce due diligence to contribute to sustainable development.
in our transactions, and conduct our business in an
ethical manner. In addition, we were able to nurture Overall, we ended 2022 in good form. From now
existing relationships with our partners and broaden on, we hope to accelerate our progress to thrive
ties with other industry leaders. in a post-pandemic world. With the end of the
pandemic in sight, our Company is prepared and
LTG did not waver in our sustainability poised for growth.
commitments, albeit the pace of our sustainability
journey is cautious and conservative. Nevertheless,
we have made steady progress toward deepening
the integration of sustainability principles into our
business practices over the past years. Determined Michael G. Tan
to reduce our carbon footprint, we have consistently President
promoted the judicious use of water and energy
resources alongside proper waste management.
128.28
Direct 114.77
112.81
112.76
Economic 101.26
103.66
Php12.08 bn
Value spent in employee
in Php Billions
wages and benefits
2020 2021 2022 2020 2021 2022
GENERATED DISTRIBUTED
55%
of women on the Board
33%
of women in senior Received three Golden Arrows (LT Group, Inc.)
management roles and four Golden Arrows (PNB) at the
2022 ACGS Golden Arrow Awards
2022 7,562.54 ML
Water
withdrawal 2021 7,214.09 ML
2020 7,795.68 ML
2022 7,867.58 mt
Waste
generated 2021 6,210.40 mt
2020 8,839.50 mt
Carbon dioxide
sequestration potential
2022 2.55 million GJ of 493.66 metric tons
Overall
via the Legacy Forest
energy 2021 1.91 million GJ
consumption
2020 3.24 million GJ Produced 22 tons of
various crops via
the Agroforestry Farm
2022 218,178 tCO2e Project at Barangay
Total
Digdig in Carrangalan,
carbon 2021 263,163 tCO2e Nueva Ecija
footprint
2020 259,435 tCO2e
1
Asia Brewery
12,325
total
employees
425,508 41%
total training female 100% received regular performance
hours employees and career development review
CUSTOMERS
SOCIETY
The series of acquisitions made by LTG in 2012 Tree is life. Life is growth. Like a tree, a company
expanded its investment portfolio to include tobacco, with firm roots, properly nurtured, will continuously
beverages, property development and banking. grow and give value.
Majority owned by Dr. Lucio C. Tan and his family
and assignees, these subsidiaries, combined with The tree’s trunk is upright, and the branches spread
the LT Group, Inc., are collectively known as the out, a symbolic consolidation of the subsidiaries and
Group in this Sustainability Report. stakeholders within two circles — the inner circle for
continuity, and the outer circle for solidarity.
With its growing consumer products, LTG is set to
continue innovating its product lines and expanding
its market base overseas.
Vision Mission
The Board of Directors reviews and approves the Vision and Mission Statements annually. The latest reviews were on February 9, 2021,
and February 8, 2022.
LTG’s corporate structure illustrates the relationship between the parent company and its
subsidiaries. Except for Victoria Milling Company Inc., each of the subsidiaries under LTG also
has its own subsidiaries, as outlined in its corporate structure. Some of these subsidiaries have
supply chains that are vertically integrated for more efficient business operations.
The Philippine National Bank (PNB) is one of Incorporated in May 1988, Tanduay Distillers
the largest and oldest banks in the Philippines. Inc. (Tanduay) is a company mainly engaged in
Operating as a government bank from its manufacturing, compounding, bottling, importing,
establishment in 1916 until its privatization in 2007, exporting, buying, and selling liquor products.
PNB has earned a reputation as the “Bangko ng Tanduay sells liquor such as rhum, brandy, whiskey,
Bayan” or the people’s bank. Throughout the past and gin either in retail or wholesale. Apart from
106 years, PNB has withstood the test of time by liquor products, Tanduay also sells equipment,
providing stable and reliable customer-first services materials, and supplies related to the manufacturing
even during the most challenging financial and of these products. Tanduay has two subsidiaries:
social crises. Absolut Distillers Inc. (ADI) and Tanduay Brands
International, Inc. (TBII).
The Bank believes it is responsible for upholding
its stakeholders’ right to prosperity and ensuring Absolut Distillers Inc., originally known as the
its customers have pathways to fulfilling lives. As a Century Distillery Corporation (CDI), started as
result, PNB has constantly maintained a customer- a small distillery in the late 1980s. By 1990, CDI
centric approach with a passion for innovation and eventually became Absolut Chemicals Incorporated,
service excellence. and LTG acquired it. ADI aspires to be a word
class producer of quality alcohol while promoting
In over a century of continuous operations, the sustainable development by empowering its
Bank’s mission has constantly evolved to respond employees, stakeholders, and communities. ADI
to the needs of the changing times. For instance, offers fine ethyl alcohol and liquified carbon dioxide
PNB pioneered rural banking services to support used in alcoholic and non-alcoholic beverages.
the agriculture sector in the 1920s. In 1917, the In addition, ADI manufactures bioethanol used to
Bank marked its entry into the field of international produce fuel bioethanol.
banking with the opening of its first overseas branch
in New York. Today, the PNB has positioned itself Tanduay Brands International mainly handles the
as a leading and dynamic Filipino financial services marketing of Tanduay products. In 2003, TBII was
group with a global reach committed to delivering incorporated in the country, and three years later,
valuable products and services. LTG sold its 100% ownership interest in TBII to
Tanduay. The following year, the company started
its commercial operations and opened its first store,
“Tanduay,” in Century Park Sheraton Hotel Manila.
LTG is a Filipino-owned and controlled company We operate 651 Philippine branches and offices
that enjoys a significant presence in the domestic plus 71 overseas branches, subsidiaries, and
market. The Company aims to broaden its global representative offices in 17 jurisdictions in the
operations to realize its vision of becoming a world- United States, Europe, the Middle East, Asia &
class business firm delivering outstanding products Oceania.
and services.
Tanduay has a broad range of liquor products
Asia Brewery’s market reach is limited to local mass such as rhum, gin, vodka, whiskey, cocktails,
consumers, although we aspire to bring Filipino- and medicinal wine. Meanwhile, ADI is engaged
branded beverage products to a wider international in producing various products ranging from
market. To date, Asia Brewery sells alcoholic and bioethanol and distilled products to solar power.
non-alcoholic beverages and products through ADI has been registered as a bioethanol producer
various distribution facilities nationwide. At least with a capacity of 30 million liters per year and
11 distribution channels are in Luzon, and two are started the commercial operation of its bioethanol
in Mindanao. Aside from these channels, we are plant in 2016. In addition, ADI manufactures and
increasing our customer reach through our exclusive sells denatured alcohol, liquid carbon dioxide
distributors’ network of 39 sales offices, 15 sub- and dry ice. Meanwhile, ADI also operates a two-
warehouses, and 7 depots. megawatt solar power generation facility, licensed
under the Renewable Act of 2008. Under a 25-
Eton has a diversified real estate portfolio ranging year solar energy supply contract, ADI supplies
from residential to commercial projects. We lease electric power through its solar power system to
and sell residential condominium units, office and the National Grid Corporation of the Philippines
commercial spaces, and buildings. On top of these, (NGCP) at the approved Feed-In-Tariff rate of
the company also offers property management and Php8.69 per kilowatt hour.
hospitality services.
Through fifteen exclusive distributors, Tanduay
PNB offers a wide range of traditional and innovative serves more than 215,000 points of sale as of
services to individual and institutional customers. 2022. These distributors operate at least 40 sales
These banking and financial services include offices and 48 warehouses nationwide. Through
deposits, insurance, trade finance, lending services, TBI, in-house sales staff are employed by Tanduay
trust, treasury, and remittance products and to provide marketing and administrative support to
services. We complement our traditional banking its distributors. In addition, third-party transportation
operations with digital banking through our internet companies offer logistical services for Tanduay’s
portal and digital apps for faster transactions. products. ADI’s bioethanol and other by-products
are delivered through distillery tankers or collected
Our customer base is composed of private and by customers at distillery plants.
public sector organizations such as corporations,
the national government, local government
units, government-owned enterprises, and other
government agencies. Moreover, we also cater to
small and medium markets and retail customers.
Customers
Employees
Communities
• Shuttle services
• Corporate Social • Access to existing public • Donations of Bottled Water
Responsibility Activities infrastructure (ABI White Label) during
• Investors' Conference • Community programs and calamities (typhoons,
• Plant Visits initiatives earthquakes, fire, flooding)
• Virtual Financial Literacy/ • SEC and PSE reports should • Tree Planting
Financial Wellness sessions be disclosed on time and • Brigada Eskwela
• Virtual meetings and events/ are available for viewing • Adopt-a-River (Clean-up drive)
activities (i.e., donations, and downloading on the • Networking and coordination
turnovers, etc.) Group’s website • Promote a for certain CSR or
• Charitable/ Philanthropic greater understanding of the sustainability-related projects
Contributions businesses and activities
• Environmental and • Knowledge of basic money • Financial inclusion through
sustainability-related projects management financial literacy programs
or initiatives • Projects that support the • Partnerships with credible
• Partnerships with credible economic, social, and social development
NGOs, Foundations, environmental landscape of organizations, LGUs,
academic institutions, LGUs, the community academic institutions, and
or Civil Society Organizations • Disaster or emergency civil society organizations
response aligned with the CSR and
• The school was temporarily sustainability thrusts of the
closed due to pandemic Bank
• DTS Trainees who were • Support for charitable and
trapped within the company's philanthropic causes on
premises education, environment, and
social welfare development.
• Support for affected
communities where the Bank
has a presence, especially
during times of natural
and man-made calamities
(i.e., relief operations),
with assistance from our
employees, our subsidiaries,
and affiliates.
• Continuous training whenever
possible
• Food and accommodation and
allowances
• Extended financial assistance
to the partner school
• Allow the request to conduct
Suppliers
• Provide feedback and discuss
• Supplier Performance • Partnership with Suppliers on the Supplier Performance
Evaluation the Consignment Program Evaluation through email and
• Consignment Program • Supply chain risks meetings
(Partnership) • Timely and accurate payment • Ensure reliability and inventory
• Electronic/Physical Letters of products and services control/management of
• Virtual meetings commissioned/secured consigned raw materials
• Phone calls/SMS • Ethical and efficient supplier • Annual review of vendor/
accreditation process supplier performance
• Updates/information on any • Orientation sessions/briefings
changes in the procurement/ for vendors/suppliers
outsourcing policies and • Organized biddings,
processes a thorough review of
• Non-compliance incidents or documentation submitted,
practices proper accreditation of
suppliers in compliance
with relevant standards and
requirements
• Review of necessary
documentation and facilitation
of timely release of payments
• Foundation for the creation
of a Bank-wide Sustainability
Procurement and Supply
Chain by organizing webinars
for the Corporate Services
Division and other concerned
business units
LTG understands the importance of effective Under the Group’s charter, the Nomination and
corporate governance as a driver of company Compensation Committee ensures a formal and
performance. The Company’s Board of Directors transparent Board nomination process in selecting,
provides strategic guidance and supervises the compensating, monitoring, and, if needed, replacing
management and operations of the business. Under key executives. The Committee is also responsible
the Board of Directors are five committees tasked for overseeing the Board’s succession planning.
to oversee operations and ensure the Company Dr. Lucio C. Tan is the Committee Chair, while Ms.
follows sound corporate governance practices. Karlu T. Say, Mr. Michael G. Tan, Mr. Lucio C. Tan
These committees include the Audit Committee, III, Ms. Juanita T. Tan Lee, Ms. Mary G. Ng, and Mr.
Risk Management Committee, Executive Wilfrido E. Sanchez are the Committee members.
Committee, Nomination and Compensation
Committee, and Corporate Governance Committee. LTG created a Corporate Governance Committee
to promote good governance within the Group
The Audit Committee assists the Board in and lead the Company to become a world-class
performing oversight functions on financial reporting, conglomerate. This Committee oversees the
internal control, audit, and monitoring compliance periodic performance evaluations of the Board,
with laws and regulations. This Committee is its committees, and the executive management.
composed of five members, four of which, including These evaluations aim to ensure that a director is
the Chairman, are independent directors. The fully qualified and capable of performing the duties
Committee members are Mr. Johnip G. Cua as and responsibilities of the position. The Committee
Chair and Ms. Juanita T. Tan Lee, Ms. Florencia G. is chaired by Ms. Florencia G. Tarriela and is
Tarriela, Mr. Wilfrido E. Sanchez, and Ms. Mary G. required to meet at least twice a year or as needed.
Ng as members. Committee members include Mr. Michael G. Tan,
Mr. Lucio C. Tan III, Ms. Juanita T. Tan Lee, Mr.
Meanwhile, the Risk Management Committee Johnip G. Cua, and Mr. Wilfrido E. Sanchez.
oversees the management of the Group’s financial
and non-financial risks, including related party Over the years, no changes have been made to the
transactions. It is the responsibility of the Committee Group’s corporate structure, size, and ownership.
to review risks and manage the overall risk exposure
of LTG. Currently, Ms. Mary G. Ng serves as the
Chair of the Committee, while Mr. Johnip G. Cua,
Ms. Juanita T. Tan Lee, Ms. Florencia G. Tarriela,
and Mr. Wilfrido E. Sanchez serve as Committee
members.
The LTG Board of Directors is the highest governing body responsible for
implementing the Company’s strategy. The Board of Directors is assisted by
five committees and oversees the governance of the entire conglomerate. The
Company’s Chief Executive Officer, President, and Chief Operating Officer
report directly to the Board of Directors. Each officer in the organizational
structure plays a crucial role in driving LTG’s corporate performance.
Board of Directors
Chief Executive
Officer
Chief Audit Compliance
President and Chief Executive Officer
Operating Officer
Investor Information
Accounting
Relations Technology
LTG’s Board of Directors plays a crucial role the duties and responsibilities of the Directors and
in driving sustainability within the Company. Committee members based on the Revised Manual
Balancing the Board’s corporate responsibility and on Corporate Governance and Charters. Annually,
sustainability leadership role is critical to boosting the form is filled out by the Chairman, Directors,
LTG’s bottom line. and all Committee members to evaluate their own
performance as well as the performance of the
Members of the Board oversee the overall Chairman, Directors and Committee members.
management of the Company and set the purpose,
values and strategies of LTG. The Board is The remuneration of Board members is based
bound to adhere to the highest ethical standards on the Nomination and Remuneration Committee
of corporate governance. Within the Company, Charter which explicitly prohibits directors from
all Directors and key Officers are required to being involved in deciding their own remuneration.
disclose to the Board of Directors or to the Risk As a policy, LTG bases the compensation of its
Management Committee any material transaction officers on their performances, and it does not
or relation that would result in actual or potential disclose the salary of its officers.
conflict of interest. In cases where it is unclear
whether an act or transaction will result in a conflict As the overall lead of the Company’s sustainability
of interest, the Director, Officer or Employee should initiatives, the Board is responsible for setting
consult with the Risk Management Committee of policies, directing programs, managing sustainability
the Corporation, the Chief Legal Officer, or his or impacts, and leading LTG’s sustainability report.
her immediate supervisor, whichever is applicable Upon the establishment of LTG’s Sustainability
based on the personnel’s rank. Reporting Framework in 2019, the Company has
been regularly submitting its Sustainability Report
LTG’s Board delegates its authorities, including the subject to review and approval of the Board.
responsibility of managing economic, environmental
and social concerns, through the Committees in the For PNB, the institutionalization and adoption
Company and its subsidiaries. Each subsidiary has of sustainability principles within the corporate
a Committee Chairman and executives appointed governance, risk management framework, and
by the Board to deal with these topics. Key Directors strategic objectives of the Bank is the main
and Officers of LTG undergo seminars with topics responsibility of its Board. The Bank’s Corporate
relating to Environment, Social and Governance Governance and Sustainability Committee
(ESG). Stakeholders of the Company and assists the Board in performing its governance
subsidiaries are consulted on sustainability-related responsibilities, including the Nomination and
topics to gather their concerns and issues. These Remuneration Committee functions, ensuring
issues are compiled and forwarded to the Board in compliance with and proper observance of
the form of Committee reports. good corporate governance. It also oversees
the consistent implementation of the Bank’s
To assess the performance of the Company’s sustainability framework.
highest governance body, an annual self-
assessment is conducted by the Board of Directors
to review their performance and revisit their roles
and responsibilities. To make the evaluation process
more efficient, LTG has developed an electronic
Performance Evaluation Form (“form”) outlining
generally satisfactory. We address trademark The culture of compliance has always been
infringement and counterfeiting risks by developing a bedrock of LTG’s commercial operations.
safeguards and taking preventative actions. Accordingly, the Company’s management requires
Tanduay registers its brand names, trademarks, and all employees, officers, directors, and personnel to
other intellectual property rights with the Intellectual comply with all laws, rules, and regulations relevant
Property Office (IPO) in all countries where its to LTG’s business.
products are being sold, while products under
development are registered in advance. Further, we PNB’s Board Audit and Compliance Committee
actively evaluate counterfeiting risk and undertake assists the Board in performing its oversight
legal actions against violators. responsibility relating to financial reporting process,
internal control systems, audit process, and
With the nature of its core business, Tanduay monitoring of compliance with applicable laws, rules,
undergoes extensive review from regulatory bodies. and regulations.
To manage regulatory risks such as the imposition
of a higher specific tax, we resort to increasing our Tanduay gives serious consideration to its
selling prices and reducing our production costs. compliance with laws and regulations. The
In addition, Tanduay coordinates with appropriate Company’s Corporate Governance Committee
regulatory agencies and industry associations to diligently monitors business units responsible for
check potential problems and policy direction shifts. ensuring compliance with regulatory agencies.
Compliance with safety, health, and Across the Company, there was no record of
environmental laws and regulations is a top significant non-compliance with laws and regulations
priority for Tanduay. As such, we strictly follow relevant to our business operations.
government regulations and have invested in
an environmental protection system for our
physical facilities, all of which have been cited as Anti-Corruption GRI 3-3, 2-25, 205-2, 205-3
compliant by environmental regulators. Supporting and sustaining LTG’s long-term
development as a business requires vigilance
against corruption, unethical behaviors, and unfair
business practices. To create a fair business
environment, we are bolstering our anti-corruption
efforts by strictly enforcing the Group-wide Code
of Business Conduct and Ethics, expanding
educational campaigns, and strengthening
mechanisms for reporting unethical practices.
Moving forward, LTG will remain vigilant in the fight Eton’s adaptability and flexibility in 2022 were
against the entry and proliferation of smuggled and captured through innovative marketing strategies.
illegal cigarettes. This included building brand equity through
partnerships with various companies and different
campaigns that led to stronger brand awareness
Supply Chain Management and recall on top of continued digitization.
GRI 2-6, 3-3, 414-2
Effective supply chain management is vital in For supplier selection, Eton considers price and
growing LTG’s business and achieving customer quality as two crucial factors. The company prefers
satisfaction. Over the years, we have developed to procure locally to achieve cost-efficiency in
a reliable, efficient, and resilient supply chain purchasing goods and services. Local suppliers
to ensure the sustained production of excellent undergo an accreditation process conducted
products and services. We ensure integrity and by Eton to vet service providers. Our supplier
transparency in its procurement processes and selection method is thorough, transparent, and
enhance the resilience of our supply chain to gain a well-documented. A feedback mechanism is also
competitive advantage. embedded in the company’s procurement process
to allow suppliers to submit their concerns through
Asia Brewery ensures uninterrupted business email or a written letter.
operations by strengthening its supply chain
management. The company’s Board Executive PNB strongly emphasizes supply chain efficiency,
Committee is in charge of managing our supply leading to enhanced business performance.
chain. The Committee is concerned with making The Bank follows a simple process to streamline
decisions and approving supply purchases, procurement: canvassing and bidding, reviewing
including strategic sourcing. As part of its managerial proposed bids, and awarding purchase orders
responsibility, the Committee implements operational to credible vendors or suppliers. Suppliers are
and tactical strategies, monitors issues, and selected based on their financial capacity, ability
recommends corrective and preventive actions. to deliver within the company’s turnaround
time, and adherence to our sustainability policy,
At Eton, the operational and financial efficiency among other criteria. Using our Outsourcing and
of the supply chain is vital. Value for money is the Accreditation Policy, an enhanced due diligence
GRI 201-1
Over the years, LTG has stepped up its efforts to Despite PNB’s minimal water use, the Bank has
effectively and efficiently manage its water resources. implemented various initiatives to reduce water
Water is primarily used as a raw material by LTG consumption, reuse water, and mitigate water
subsidiaries, such as Asia Brewery and Tanduay, management risks. Employees are reminded to
which are both in the business of producing observe proper usage and conservation of water.
beverages. For the rest of the Group, water is used At the same time, regular maintenance activity is
for operational purposes and employee needs. Given conducted to inspect water supply equipment and
the importance of water to the business, LTG is repair water leakages as needed. We have installed
promoting a culture of responsible water use across water-efficient fixtures and fittings to conserve water.
its operating companies. Moreover, we engage in community awareness and
outreach programs of local governments to preserve
As a beverage company, Asia Brewery reaches high water and promote sustainability principles.
levels of water use in its operations, specifically
for its bottled water, alcoholic and other beverage The effluent generated by the Bank is handled and
products. To manage this, we keep track of our treated by public utility agencies or water sewage
usage and aim for an optimal water usage ratio. treatment facilities. However, to minimize the
The water discharge standard of the company is environmental impact and avoid soil or underground
compliant with the quality parameters based on the contamination, we use environment-friendly
DENR Administrative Order (DAO) No. 2016-08, cleaning materials and substances to clean and
which was amended to DAO No. 2021-19. We aim maintain toilets and other facilities. Moreover, sink
to reduce our water usage by 5% from 2020 to 2023 strainers are used to separate solid wastes from
and plan to reduce water losses from the source. In wastewater and dispose of them properly.
parallel, Asia Brewery has started water recycling
efforts by re-using alcohol effluent to minimize its Given the nature of its business, water is an
industrial wastewater. essential resource for Tanduay. As such, we ensure
the sustainable use of water within our business
Eton advocates the sustainable use of water within operations by reducing water consumption,
its operations and projects. The company strives to recycling water, and improving the quality of our
reduce its water consumption by eliminating existing wastewater. Recycling activities of Tanduay include
and potential leak sources within its properties reusing water for gardening and flushing canals.
and recycling water from its rehabilitated sewage We establish targets of the Water Use ratio (liters
treatment plant. For its effluent discharge, the of water consumed over liters of products) and
company adheres to the water quality guidelines Energy Use ratio (megajoules consumed over liters
and general effluent standards set by the DENR. of products) to monitor how efficiently resources
Eton’s sewage treatment plant has also been are used. Moreover, we track our water usage by
upgraded to comply with DENR standards. installing a sub-flow meter in every business unit.
The company also adheres to the General Effluent
While water is not integral to PNB’s business Standard set by DENR to monitor wastewater
operations, the Bank still uses water for sanitation discharge. Tanduay has wastewater treatment
and hygiene. In particular, water is vital to ensure facilities in all its bottling plants which screen,
branch cleanliness, safe drinking water, and hygienic collect, and neutralize all waste generated from the
practices, especially amid the ongoing pandemic. bottling process before these are discharged. The
2022
7,562.54 ml
2020
7,795.68 ml
Groundwater 184.92
NA - We initiated the
Seawater 504.16
collection of these
requirements in the
Third-party water 570.53
year 2022.
As a responsible business, LTG applies waste wastes from Eton’s properties and facilities. In
management and recycling solutions to reduce addition, the company monitors the compliance
the amount of waste it generates and conserve of its stakeholders to its waste management
resources. Waste prevention is the central strategy program through a quarterly risk compliance
of the Company to manage waste, combined with tracker and regular reporting of its service vendors.
materials recycling and proper waste disposal. Our customers are also encouraged to adopt a
sustainable lifestyle to reduce waste and mitigate
Asia Brewery strives not only to reduce but adverse environmental impacts.
also to address its negative impacts on the
environment. Typically, the waste generated by PNB has embedded waste reduction into its
our company comes from production operations, waste management and sustainability efforts.
preventive maintenance, and wastewater treatment For example, to reduce waste in the workplace,
activities. Asia Brewery’s waste management the Bank is pushing for digitalizing its services
policy emphasizes minimization, segregation, and and processes. This includes issuing electronic
recycling. We use alternative raw materials in its copies of e-statements of accounts and forms for
production process to further minimize wastage. office requests, approvals, and other transactions.
Meanwhile, waste segregation is done to dispose Employees are also encouraged to reuse and
of waste properly and facilitate recycling. In recycle office materials such as paper and plastics.
addition, we recycle waste, such as used oil and
solvents, while scrap materials are sold to scrap The types of waste generated by PNB mainly
buyers for recycling. include construction and renovation materials,
defective equipment, and office waste materials,
A third-party disposal firm handles Asia Brewery’s such as papers, plastics, and busted light bulbs.
waste collection and disposal. We require a In terms of waste management, we rely on a third-
Certificate of Treatment and Certificate of Disposal party private contractor to haul our waste. We also
from the service provider to track its waste placed a system for collecting, processing, and
management system. disposing of equipment such as printers, computers,
and hazardous materials. Internally, PNB has
Asia Brewery conducts an annual training course designated pollution control officers to monitor and
on Waste Management for employees and third- assess our office requirements and compliance with
party service providers as part of its commitment local and national laws. The pollution control officers
to promote waste management. In addition, undergo regular training and seminars to keep them
quarterly audits of manufacturing plant business abreast of environmental regulations.
units and site visits for annual accreditation of
third-party haulers are also conducted to monitor The Bank strictly adheres to the strict
stakeholder compliance. implementation of local government regulations
on proper waste segregation and disposal. In
Eton has developed a solid waste management addition, we conduct regular smoke emission tests
program and policy to minimize the waste generated to minimize our carbon footprint and comply with
from its business operations. This policy is DENR standards.
strictly implemented in each property owned and
managed by the company. Part of the solid waste Tanduay introduced and implemented several
management program is the establishment of a initiatives and schemes to reduce the amount
recovery materials facility to recycle and reuse of corporate waste generated from its business.
Waste by composition in
metric tons (mt)9 2022 2021 2020
10 Increase is due to additional scope (company-owned vehicles for Eton and branches for PNB)
11 Increase due to additional scope (two buildings for Eton and branches for PNB)
12 Increase due to the high demand for products driving the need to expand production capacity
13 Amended. LPG figures last 2021 is in MJ
The increasing impacts of climate change threaten is regularly discussed at the management level.
companies and business operations worldwide. Risk assessment results serve as the basis for
As in other companies, LTG is exposed to climate systematic management and adaptation measures
impacts which consequently affect its operations, employed by the Company against climate risks
supply levels, financial standing, and bottom line. and hazards.
LTG is addressing climate change by implementing
measures to reduce its carbon footprint and To complement the regular climate-risk assessment,
strengthening its internal capacity to withstand the LTG plans to have a long-term evaluation of the
direct impacts of the changing weather patterns. impact of climate change risks and understand its
To remedy potential climate impacts, the Company potential effects on the business. Based on the
has taken steps to factor climate risks in building a findings, LTG will develop long-term climate change
resilient business. mitigation and adaptation strategies.
Being located in a country prone to disasters and LTG assesses climate change risks through its
climate change, LTG integrates into its governance annual risk assessment. The Company utilizes
an assessment of climate-related risks that could impact and vulnerability assessments to recognize
harm its operations as well as opportunities the climate-related risks relevant to LTG. In addition,
that could enhance its business. In particular, evaluating risks enables the Company to test
the Company has developed methodologies to the effectiveness of its existing risk management
examine aspects of its operations that could be measures and policies. LTG engages a Business
disrupted by weather and other hazards. The Continuity Manager (BCM) to help manage and deal
evaluation is conducted on an annual basis and with disasters such as typhoons and floods.
PNB has actively taken steps to reduce its carbon Currently, PNB is developing an Environmental and
footprint and negative environmental impacts. Social Risk Management System (ESRMS) with
We recognize that climate change and other the assistance of the Tan Yan Kee Foundation, the
environmental and social risks could threaten CSR arm of the Lucio Tan Group of Companies,
financial stability, both at the Company’s operations and its pool of Subject Matter Experts. The ESRMS
and macro-economic level. As such, we embarked is a set of policies, procedures and tools that will
on a journey to integrate sustainability principles help identify, assess, monitor and mitigate exposure
in our business, governance, risk management, of the Bank to environmental and social risks. The
and other aspects of operations. The Bank framework which integrates environment and social
also promotes sustainable and resilient growth risk criteria in PNB’s risk management framework
through environmentally and socially responsible will cover all business functions and operations of
business decisions coherent with the Philippine the Bank. The target completion and delivery of
Development Plan. the ESRMS Framework to the Bangko Sentral ng
Pilipinas is in April 2023.
We assess climate-related risks through the
Business Continuity Risk Assessment (BCRA), Risk PNB also plans to enter into Sustainable Financing
and Control Self-Assessment (RCSA) to identify Transactions (SFTs) to finance or refinance projects
climate-related risks, and the Business Continuity and expenditures that have positive environmental
Plan Manual and Crisis Management Plan to and social impacts. Specifically, the Bank commits
address the identified risks. In addition, PNB has a to fund or finance projects that will not harm the
Crisis Communication Plan and Disaster Recovery environment and society in general, as well as
Plan to strengthen operational and infrastructure support those aligned with its growth objectives
resiliency during climate disasters and business and will contribute to achieving the United Nations’
disruptions. Using the RCSA, the Bank identifies Sustainable Development Goals (SDGs). Projects
and evaluates risks such as Corporate Social that promote rural development include food
Responsibility Risk, Environment Risk, Losses from manufacturing, agricultural production, water
damage due to natural calamities, and Business distribution and supply, energy generation and
Disruption-related threats and vulnerabilities. distribution, construction and operation of toll roads
and bridges, telecommunications infrastructure, and
Aside from the business unit level RCSA, the Bank construction of green buildings and health facilities.
also started the E&S risk scoring at the portfolio In addition, PNB provides continuous support to
level for corporate clients. The Bank has created environmentally compliant projects such as the
the ESG Scorecard/Checklist, which includes the Operation of Toll Roads and Bridges; Generation
questionnaire, checklist and relevant documents and Distribution of Power and Water; Construction
to be submitted by the client, as applicable. The of Green or LEED buildings and infrastructure; and
Credit Manager evaluates the E&S risk of the Real Estate Development.
borrower by accomplishing the Environmental and
Others 53,727
Mindanao 14,720
MALE FEMALE
Employee breakdown < 30 y.o 30-50 y.o >50 y.o < 30 y.o 30-50 y.o >50 y.o Total
Rank and file 1,139 2,208 275 1,430 1,565 205 6,822
Total 12,325
Employee breakdown < 30 y.o 30-50 y.o >50 y.o < 30 y.o 30-50 y.o >50 y.o Total
Visayas 26 4 0 24 7 0 61
Mindanao 43 15 1 23 3 0 85
Turnover < 30 y.o 30-50 y.o >50 y.o < 30 y.o 30-50 y.o >50 y.o Total
Visayas 6 2 0 2 0 0 10
Mindanao 11 12 4 5 3 2 37
Number Percentage
GRI 401-2
Housing assistance 1 2 0% 0%
14 PNB currently does not have turnover data by island group. For 2022, all PNB turnovers are under Luzon.
Total number of employees who took parental leave 138 270 408
in 2022
LTG places a premium on the growth and well- Eton provides opportunities for its employees to
being of employees. From hiring and onboarding to take part in training and development. Company-
managing employees, LTG has integrated practical sponsored training on essential and technical
considerations for employee development and skills is offered to employees for professional
performance enhancement. In addition, LTG offers advancement and increased productivity.
its employees a comprehensive benefits package Employees with excellent performance are also
and opportunities, such as training and leadership recognized and rewarded through promotions and
opportunities; health and wellness promotion; merit increases.
and a combination of government-mandated
benefits such as SSS, PhilHealth and Pag-IBIG Employee growth and development are key
and Company-initiated benefits such as retirement priorities for PNB. The Bank actively promotes
fund, medical and leave benefits. work-life balance and provides career and personal
development opportunities. We have introduced
Asia Brewery understands that its employees are a competitive salary program, attractive benefits
the company’s most valuable assets. Employees and incentives, and a holistic employee wellness
drive every fundamental aspect of the business, program to attract and retain talent.
from the company’s profit strategies to its current
sustainability targets. As such, we employ a PNB practices a non-discriminatory hiring process
holistic approach to nurturing and developing and adopts gender-equal and inclusive programs.
our employees. The company implements a We hire, retain and develop qualified and suitable
competitive salary program to attract and retain candidates regardless of gender and background.
talent. At the same time, non-financial benefits The company adopts gender, diversity, and
are also provided to employees, such as leave inclusion principles across different employee
and retirement benefits, health care services, and programs from hiring or recruitment, training
training opportunities. Leave benefits available to and development, wellness and engagement,
our employees include paternity leave, special leave compensation and benefits, and promotions and
under the Magna Carta for Women, violence against career development. The same opportunities for
women leave, and parental leave. Asia Brewery employment, remuneration, recognition, and career
offers leadership, personal development, and soft advancement are given to all, regardless of gender.
skills training to boost employee performance. To demonstrate its seriousness in promoting
gender equality, PNB uses and monitors Gender
We adopt an inclusive hiring process and comply Equality indicators to track its policy performance.
with the Anti-Discrimination Act of the Philippines.
Discriminatory practices are not tolerated in the During the pandemic, we offered various benefits
company. To protect employees from unfair labor to our employees while ensuring a safe and healthy
practices upon hiring down to retirement, we working environment. For example, employees were
have established an accountability and grievance given a COVID-19 Quarantine Leave (CQL) for a
mechanism. The Labor Management Committee maximum of 10 days for reporting onsite and five
facilitates the monthly meeting between the union days for working from home.
and management to monitor compliance with
provisions outlined in the collective bargaining Employee training also continued during the
agreement (CBA), while the Committee on Right lockdown through PNB’s e-learning platforms.
Ethics (CORE) upholds the ethical standard in Annually, employees are encouraged to undergo at
the Company. Grievances and complaints are least 32 hours of training, which is included in their
addressed using our Grievance Handling Machinery performance review. In addition, we sponsored
and Disciplinary Case Handling Procedures. webinars on various topics such as leadership,
For the second year in a row, PNB was a Runner The Labor Management Committee (LMC) serves
Up for Transparency and Reporting in the UN as a grievance mechanism where employees
Women 2022 Philippines Women’s Empowerment can submit their issues or complaints. Regular
Principles (WEPs) Awards. The Bank’s transparency communication is ensured between employees and
and reporting practices include gender data and officers of the workers’ union.
indicators, specifically analyzing the performance
and impact of gender on its adaptive policies and For 2022, all employees of LTG, from the rank
programs. The data gathering also includes tracking and file to officers, have received a regular
the Bank's performance toward gender equality and performance and career development review to
women’s economic empowerment. WEPs Awards monitor and enhance staff performance.
Female
Safety and Well-being GRI 3-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7
The Company maintains a safe workplace by the existing procedures and processes using the
implementing measures that prevent workplace Hazard Identification, Risk Assessment, and Control
incidents and addressing occupational safety (HIRAC) method. Safety audits are conducted
hazards and risks that may adversely affect its through onsite verification and inspection. Our
employees. LTG employees are covered by the safety audits include Cross-functional Audits
occupational health and safety (OHS) management (internal) and Customer Audits (external), conducted
system of the Company in accordance with the quarterly and annually, respectively. The identified
legal requirements and recognized standards and hazards and risks are addressed by developing
guidelines on workplace safety. Across the Group, corrective and preventive actions. Asia Brewery has
LTG has also invested in occupational safety also organized a formal joint management-worker
measures to comply with safety requirements and health and safety committee to decide on health and
protect its personnel. safety measures and ensure the implementation of
health and safety policies and regulations within the
To protect the health of employees and prevent company. We disseminate health and safety policies
workplace injuries, Asia Brewery implements a and updates through email reminders, messages,
health and safety policy that complies with the and EHS bulletin board posts.
country’s occupational safety and health (OSH) law.
Identifying occupational safety hazards and risks Asia Brewery employees are also enabled to
is the first step in promoting OSH. To do this, we respond to health and safety emergencies as
conduct audit patrols in its manufacturing plants, needed. The company provides employees with
collect safety reports from workers, and assess internal and external training opportunities regularly
GRI 403-8
Covered by occupational health and safety management system that has been internally audited
Covered by occupational health and safety management system that has been audited or
certified by an external party
GRI 403-9
LTG believes that businesses have the responsibility Any form of harassment or bullying is not tolerated
to promote and respect human rights. For its part, at PNB. The Bank has institutionalized a robust
the Company has taken meaningful actions to whistleblower policy to protect the Bank from
protect the human rights of its personnel regardless damages to assets, reputation, finances, and people
of rank or background. From its policies to and mitigate risk and losses through the early
programs, LTG is creating a company culture that discovery and proper reporting of suspected or actual
values human rights. wrongdoings. Within the Bank, a committee was set
up to investigate, deliberate and decide on appropriate
Respecting workers’ rights and fundamental actions regarding whistleblower and retaliatory cases
human rights is a commitment embedded in Asia raised by employees. According to the PNB’s Code
Brewery’s Code of Conduct and Company Rules of Conduct, appropriate administrative sanctions will
and Regulations. At the same time, the prohibition of be imposed for harassment and bullying. We also
child labor is explicitly underscored in the company’s adhere to a Diversity and Inclusion policy to foster
Recruitment, Selection and Placement Policy and inclusion and equality—a culture that recognizes team
Procedures. These policies are communicated to members as collaborators and peers regardless of
employees through orientation, email reminders, their backgrounds.
and bulletin posts. In addition, we conduct
orientation seminars on the code of conduct and Prevention of sexual harassment is a priority of
relevant company rules and regulations to prevent PNB to ensure a safe and respectful workplace for
workplace discrimination. We also handle employee all its employees. In recent years, we have updated
complaints and feedback through the Committee our Anti-Sexual Harassment (ASH) policy following
on Right Ethics (CORE), Grievance Handling, and the enactment of the Safe Spaces Act. In our
Disciplinary Case Handling Procedures. In case a policy, the parameters of sexual harassment were
violation of human rights occurs within the company, defined based on the law. To ensure that incidences
due process of law will be applied. of unwelcome sexual conduct are dealt with,
PNB established a Committee on Decorum and
Eton has institutionalized its obligation to promote Investigation dedicated solely to investigating and
human rights through its company policies. The addressing cases of sexual harassment.
company’s Code of Business Conduct and Ethics
sets out the professional and ethical behavior that Employees with complaints or grievances may
its employees must observe. This policy prohibits file a report through the Bank’s whistleblowing
unethical and discriminatory behavior as well as channels or to the disciplinary authorities such
disrespectful and unfair treatment of employees. as the Group or Sector Head, Human Resource
Internal complaints of discrimination, harassment, or Group and Ethical Standards Committee. The
other misconduct are submitted to the Compliance complaints are discussed during the Labor
Officer, who determines if the act violates the Management Council meeting, followed by a
company’s policy. To protect complainants or formal investigation. To ensure the protection of
whistleblowers, we have a Whistleblower Policy whistleblowers, we have a Whistleblower Policy
that includes Investigation Procedures and a Non- with a provision on anti-retaliation.
Retaliation policy. For false or malicious reports,
the complainants will be subjected to disciplinary or For Tanduay, protecting human rights is vital in
legal actions and applicable laws and regulations. fostering equality and respect in the workplace.
To build and maintain brand integrity, LTG complies with the high standards
of marketing and labeling regulations. We ensure that our subsidiaries follow
legal compliance with marketing and advertising laws and regulations set by
the government.
2022
Percentage of significant product or service categories covered by and assessed for 100%
compliance with information and labeling procedures
FB-AB-270a.1, FB-NB-270a.1
Total number of advertising impressions made on individuals at or above the legal 3,448,276
drinking age
Asia Brewery adheres to the Food and Drug LTG has implemented proactive efforts to ensure
Administration (FDA) standards for its marketing customer health and safety throughout the pandemic.
and labeling policy to ensure consumers always These efforts range from ensuring sanitary and
get the correct product information. We disclose clean production facilities to providing avenues
critical product-related data such as the sourcing for customers to register their concerns related to
components, content, safe use of product or service, product quality.
and environmental and social impacts resulting from
product disposal. Asia Brewery strives to protect the health and safety
of consumers and ensure quality excellence by
Eton follows marketing and labeling guidelines to enforcing food safety policies and enhancing the
ensure customers receive the correct product and competencies of its employees. We adhere to a
service information. Following our Code of Ethics, stringent Food Safety and Quality Policy and follow a
employees are required to comply with marketing Food Safety and Quality Management System based
and labeling laws and regulations set by various on international and local standard requirements.
government agencies such as the Department As a beverage manufacturer and distributor, some
of Trade and Industry (DTI), Intellectual Property concerns customers raise include product spoilage
Office of the Philippines (IPOPHL), Housing and and products with foreign objects. We respond
Land Use Regulatory Board (HLURB), and Ad to such complaints through Customer Complaint
Standards Council (ASC). We also employ a digital Handling, which now has a digital version via the
marketing strategy to advertise its products and support portal. In addition, we implement internal
increase its customers. Promotional materials assessments and corrective actions to prevent the
are published through our website and third-party recurrence of issues.
websites like Rentpad and Carousell. Further, we
organize event sponsorships, cross-promotion During the COVID-19 pandemic, we responded
referrals, and media programs. to the demand for immunity-boosting products
by enhancing the nutritional value of some of its
Tanduay’s marketing and labeling approach is beverages. For example, the Cobra Energy drink,
governed by a Brand Guidance Policy, which intended initially as an energy-boosting drink, was
aims to promote fair and responsible marketing enhanced to include immunity-boosting ingredients.
practices. The company complies with all
mandatory requirements on advertising set by To minimize the environmental impact of its chemical
regulatory bodies such as the ASC, IPO, and FDA. byproducts, Asia Brewery ensures strict compliance
As part of Tanduay’s Quality Policy and Quality with various standards and regulations such as
Management System (QMS), regular product the FDA Good Manufacturing Practices, ISO 9001
assessment and evaluation are conducted to Quality Management System, Food Safety System
ascertain compliance with regulations and to Certification (FSSC) (ISO 22000 Food Safety
develop innovative ways to strengthen brand Management System) and Hazard Analysis Critical
equity in its existing and emerging markets. Control Point (HAACP), among others.
For 2022, no notices for non-compliance with Tanduay formulated a quality policy and quality
regulatory requirements on marketing and labeling management system to protect and promote the
have been reported for the entire Group. health and safety of its consumers. The compliance
and effectiveness of these measures are assessed
through an annual surveillance audit. This process
provides and interprets data to facilitate the
A consistently excellent customer experience is PNB encountered several challenges during the
essential to Asia Brewery’s business growth. Thus, COVID-19 pandemic due to the implementation of
we ensure that our products are of high quality the Bayanihan Act. The customer-related concerns
and that our services are delivered on time. To the Bank received during this period include interest
enhance customer experience, we developed charges, re-computation of amortization, and
an E-Commerce site where customers can order waiving charges. The most common customer-
products anytime and expect faster delivery. related concerns are related to credit cards, account
Moreover, customers can provide feedback on the openings, billing statements, and the PNB Digital
products and services of Asia Brewery through our App, such as password changes. We have instructed
social media pages and website. relevant offices to coordinate with each other and
implement the changes based on the government’s
Eton seeks to understand its customers’ experience policy and help address customer concerns.
to determine how to improve its products and
services. Customers are requested to submit PNB implements an after Call and Email
their feedback via online platforms such as our Customer Satisfaction survey to evaluate
website, email address, and messenger. During customer satisfaction. Customer feedback informs
the pandemic, when customers could not visit improvements in the policies, service delivery,
our offices in person, we have enhanced our process, and customer engagement.
PNB’s digital strategy and initiatives are aligned PNB’s mobile banking platform, PNB Digital, offers
with the Bank’s key strategic business pillars. more advanced and secure features, expanded
Understanding market and customer trends as well payment and disbursement capabilities, and better
as the business and regulatory landscape, gives us access to products and services. For 2022, the
actionable insights to enhance our strategy. Our key PNB Digital and Account Access Portal users
retail business units also provide inputs that help grew by 349% or an overall increase of 31% in
shape the strategic direction of our Bank’s digital our total digital user base. In parallel, significant
innovation and transformation. growth in our customer engagement, particularly in
transaction count and volume, increased by 118%
The Bank’s digital program is implemented through and 160%, respectively. In addition, through our
various Committees within the company. Our social media platforms, we continue to communicate
Projects Prioritization Committee is in charge of to consumers our digital banking app to increase its
clearing and approving major strategic projects enrolment and usage.
of PNB. The Mobile Steering Committee and
Technology Committee approve and monitor the Apart from our digital platforms, we continue to
project priorities of the Bank, while the Board operate our automated teller machines (ATMs)
IT Governance ensures the alignment of digital and cash acceptance machines (CAMs), providing
initiatives with enterprise priorities and overall customers with easy access to their funds. By
targets of PNB. the end of 2022, PNB has a total of 1,575 ATMs,
145 CAMs, 29 Corporate CAMs, and 8,367 point-
To avoid digital and financial-related risks, we of-sales (POS) terminals for 24-hour banking
adhere to the BSP Policy on Electronic Banking and convenience for our clients.
Financial Services and related regulations such as
Guidelines on Electronic Payments, Operations on
Payment Systems, Anti-Money Laundering (AMLA)
Rules and Regulations, Data Privacy Law, and
PNB introduced the PNB Cashnet Plus mobile app in February 2022 to provide
more efficient online business transactions. The mobile app enables clients
to view their accounts, monitor their receivables, and initiate and approve
payments. At year-end, nearly a thousand IBS clients were onboarded in less
than four months.
FB-AB-270a.1, FB-NB-270a.1
Digital banking
(mobile and internet) Enrolled users 31% 517% New enrollment
2022 1,508,741 % Inc./Dec. 347,878
For the reporting period, no violation of the policies and regulations governing
our digital products and services has been noted.
Tanduay is slowly integrating digital technology into its business process and
operations. Various avenues for digital transformation are being explored to
enhance customer experience. In 2022, we implemented the enhancement
of freight charges for accrual. We are also planning to implement a Human
Capital Management (HCM) payroll system for efficient payroll processing and
the enhancement of its inventory costing.
LTG takes data privacy and security very seriously. for monitoring trends and training key staff who
Mindful of the risks and threats to data security, could be at risk of cyber-attacks. To enhance data
we have enhanced our data protection policies security, we set up a secure network for its staff and
and equipped ourselves with cybersecurity tools to a secure channel for storing sensitive information.
protect the Company and customer information. The Company’s IT equipment is constantly
reviewed, modified, and upgraded as needed. The
LTG created an Information Technology (IT) IT Team also regularly conducts staff training to
Team to flag data security risks that would impact enhance internal cybersecurity awareness.
the business. The IT Team is also responsible
2022 168
Asia Brewery is committed to supporting local
development by delivering various community- 2021 155
oriented programs. In particular, we have
implemented environmental protection and 2020 38
education initiatives. For example, a tree-planting
activity was coordinated by the Pampanga Plant,
Davao Plant, El Salvador Plant, and Cabuyao Plant
to prevent flooding and protect the local communities Total number of operations
in these areas. Furthermore, to generate positive
social impact, education programs organized by the 2022 194
company include the Brigada Eskwela and Balik
2021 82
Eskwela Program. The Brigada Eskwela Program
aims to help parents and government school 2020 57
officials rehabilitate classrooms and clean up the
school to prepare for class opening. Meanwhile,
we donated school supplies and educational
materials to government schools under the Balik
Eskwela Program. We also distributed tokens of Percentage of operations with
implemented local community
appreciation to Special Education teachers during
engagement, impact assessments
World Teachers’ Day and donated books at selected
and/or development programs
orphanages as part of National Children’s Day.
2022 87%
Eton aims to positively impact the community by
2021 67%
creating charitable programs in partnership with
government and non-government entities. For 2020 67%
example, we linked with the Rotary Club of Quezon
City to raise funds to help generate more awareness
and strengthen the vaccination drive against polio.
Furthermore, to increase agricultural productivity in
the province of Nueva Ecija, we donated additional
seedlings to local farmers under the Masaganang
Palayan program with the assistance of the Tan Yan
Kee Foundation. For the Christmas season, our
company collaborated likewise with the TYKFI to
nurture health and provide fresh produce to seniors
discarded from society in Kanlungan ni Maria in
Antipolo City and Group Home for Abandoned
For PNB, corporate social responsibility (CSR) is In 2022, LTG delivered a total of 130 community-
a way to effect positive changes in the community. oriented operations, 123 of which comprise local
With the leadership of the Bank’s Corporate community engagement, impact assessments, or
Sustainability Unit (CSU) and Human Resources development programs. LTG’s corporate social
Group (HRG), various CSR and volunteer- responsibility programs are focused on agriculture
oriented initiatives are being implemented by and forest development, such as reforestation,
PNB. Our onsite CSR activities were limited during agroforestry, agri-entrepreneurship and livelihood,
the Covid-19 pandemic; however, community and food security. LTG operations with local
coordination and communication continued. In community engagement, impact assessments,
addition, we have organized virtual activities such as and development programs include calamity
wellness and sustainability fairs. and healthcare assistance, vaccination drive,
tree planting activities, food and school supplies
The Bank also carried out initiatives to protect distribution, and agricultural input distribution.
and preserve the environment. For example,
this year, we held a tree-planting activity called
“PNB CommuniTree” in Brgy. Mamuyao, Tanay,
Rizal to celebrate the Bank’s 106th anniversary in
partnership with Tan Yan Kee Foundation, Inc.
Omission GRI
GRI Standard / Sector
Disclosure Location Requirements (s)
Other Source Reason Explanation Standard
Omitted Ref. No.
General Disclosures
GRI 2: General 2-1 Organizational details 7
Disclosures 2021
2-2 Entities included in the organization's sustainability reporting 1
2-21 Annual total compensation ratio 2-21-a to 2-21-c Confidentiality Owing to the
constraints sensitivity of the
information, the
Company deems
the salary of the
highest paid indi-
vidual as confiden-
tial. Nevertheless,
compensation is
based on perfor-
mance.
Location/
Topic Code Accounting Metrics
Response
Food & Beverage Sector - Alcoholic and Non-Alcoholic Beverages
Energy FB-AB-130a.1 (1) Total energy consumed, (2) percentage grid 35
Management FB-NB-130a.1 electricity, (3) percentage renewable
FB-AB-140a.1 (1) Total water withdrawn, (2) total water consumed, percentage of each 30
Water FB-NB-140a.1 in regions with High or Extremely High Baseline Water Stress
Management FB-AB-140a.2 Description of water management risks and discussion of strategies and 29
FB-NB-140a.2 practices to mitigate those risks
Percentage of total advertising impressions made on individuals at or 49
FB-AB-270a.1
above the legal drinking age
Responsible
Number of incidents of non-compliance with industry or regulatory 49
Drinking & FB-AB-270a.2
labeling and/or marketing codes
Marketing
Total amount of monetary losses as a result of legal proceedings 49
FB-AB-270a.3
associated with marketing and/or labeling practices
Percentage of advertising impressions (1) made on children and (2) 49
FB-NB-270a.1
made on children promoting products that meet dietary guidelines
Product
Number of incidents of non-compliance with industry or regulatory 49
Labeling & FB-NB-270a.3
labeling and/or marketing codes
Marketing
Total amount of monetary losses as a result of legal proceedings 49
FB-NB-270a.4
associated with marketing and/or labeling practices
Financials Sector - Commercial Banks
Data Security FN-CB-230a.2 Description of approach to identifying and addressing data security risks 53
Governance
Disclose the organization’s governance around climate-related risks and opportunities
a) Describe the board’s oversight of climate-related risks and opportunities 36-38
b) Describe management’s role in assessing and managing climate- related risks and opportunities 36-38
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy,
and financial planning where such information is material
a) Describe the climate-related risks and opportunities the organization has identified over the short,
36-38
medium and long term
b) Describe the impact of climate- related risks and opportunities on the organization’s businesses,
36-38
strategy and financial planning.
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-
36-38
related scenarios including a 2°C or lower scenario
Risk Management
Disclose how the organization identifies, assesses, and manages climate-related risks
a) Describe the organization’s processes for identifying and assessing climate- related risks 36-38
b) Describe the organization’s processes for managing climate- related risks 36-38
c) Describe how processes for identifying, assessing, and managing climate- related risks are integrated into the
organization’s overall risk management
36-38