Sustainability
View AboitizPower’s initiatives regarding sustainability in the energy sector. Discover how we’re contributing to this positive change in the Philippines.
Aboitiz Corporate Governance
In 2021, the Aboitiz Group began writing the next chapter in its centennial history to continue to drive change for a better world by advancing business and communities in the next 100 years. We have taken deliberate steps to transform our organization into an enterprise that not only endures but thrives in the new and dynamic business landscape. Our transformation is anchored on the strong foundation of growth and expansion nurtured by more than five generations of leaders with their unwavering commitment to the highest standards of corporate governance.
At the helm of our story of transformation are the Board of Directors who firmly believe that a sound framework of corporate governance creates a path towards achieving the Group’s strategic goals and growth aspirations.
Our corporate governance framework, which is deeply rooted in the Aboitiz core values of Integrity, Teamwork, Innovation, and Responsibility, has been institutionalized in the AboitizPower Corporate Governance Manuals (Manual), Codes of Ethics and Business Conduct, and related governance policies and protocols.
Governance in Aboitiz is driven by a productive collaboration with AboitizPower’s diverse and competent Boards and Board Committees, each supported by a capable and accountable management team and empowered team members.
AboitizPower has SBUs involved in Power Generation, Power Distribution, Retail Electricity Services, and Distributed Energy
In 2021, the AboitizPower Board reviewed the governance framework and implemented the necessary changes to implement effective governance in the Aboitiz Group and ensure that both Boards are able to build on their companies’ future prosperity, adapt to the changing business environment, and carry out their strategic direction and growth aspirations.
3 Program Components
The AboitizPower Board perform the crucial role of articulating and reviewing each company’s purpose, vision and mission, and strategies to carry out its goals. They ensure that the strategic direction of each company’s businesses are well defined, properly managed, and are aligned with the overall strategic goals of the Aboitiz Group. Independent from management, they are committed to provide each company a strategic roadmap towards long-term growth, competitiveness, and building a sustainable business that will thrive for another 100 years.
In 2021, the members of the AboitizPower Board of Director were the following:
Commitment to the Corporate Mission, Vision, and Strategy
The AboitizPower directors acknowledge the importance of their role to lead and steer their respective companies as profitable and sustainable enterprises. The Board’s role for each company is to represent and protect the interests of its shareholders – the owners of the business – and other key external stakeholders. Guided by the Aboitiz Group’s purpose, brand promise, mission, and vision, the members of each Board, together with key officers and heads of the Strategic Business Units, participate in an Annual Board Retreat and Strategy Refresh. They review and align the corporate initiatives and strategic roadmaps of the Group’s core businesses with contemporary market and economic trends, both locally and worldwide.
Roles and Responsibilities of the Board of Directors
The Company believes that compliance with the principles of good governance begins with the Board of Directors. The Director’s office is one of utmost trust and confidence. The Board of Directors is expected to act in a fully informed basis, in good faith, with due diligence and care and act in the best interest of the Company in a manner characterized by transparency, accountability and fairness in the exercise of leadership in directing the Company’s sustainable growth.
The Board is actively engaged in discussions of strategic business issues and the directors are consulted for their invaluable inputs through the special strategy board meetings and gatherings with the management teams. The Board ESCG formalized these gatherings into an annual Board Retreat or strategy meetings in an atmosphere of relaxed, open and intellectual exchange.
As part of its director development program and to ensure that the members of the Board remain up to date with business and legal developments, the Board is provided with regular legal bulletins, and invited to economic and industry-specific briefings and strategy and management conferences within the Aboitiz Group. All directors, including the Independent Directors, actively participate in corporate governance seminars to further enhance their knowledge and expertise.
The Company’s By-Laws require that the quorum for valid board meetings is a majority of the members of the Board, in accordance with the with the Revised Corporation Code of the Philippines. As a matter of long-standing Board practice, decisions of the Company’s Board are always made with the consensus or vote of all the Company’s independent directors, thus resulting in a unanimous vote of all directors of the Board.
Board Independence
By virtue of their respective Manuals and Committee charters, the Environmental, Social and Corporate Governance Committees of AboitizPower were tasked to develop and recommend a set of corporate governance principles, aimed to promote the independence of their respective Boards, including standards and guidelines applicable to the selection, contribution, and conduct of Board members.
In 2021, the AboitizPower Board is composed of a majority of Non-Executive Directors and Independent Directors. AboitizPower has three qualified Independent Directors and five Non-Executive Directors out of its nine Board members. In addition, AboitizPower Board has each appointed a Lead Independent Director who serves as an intermediary between the Chairman and the other directors whenever necessary.
Board Diversity Policy (405-1)
The AboitizPower Board diversity policies encourage the selection of a diverse mix of highly- competent directors and officers with in-depth knowledge and experience in the core industries.
By virtue of their respective Manuals and Committee charters, the Environmental, Social and Corporate Governance Committees of AboitizPower were tasked to develop and recommend a set of corporate governance principles, aimed to promote the independence of their respective Boards, where AboitizPower is involved. Other factors considered are diversity of business experience, behavioral and technical competencies, background, age, and gender. Both Boards are composed of legal and finance professionals, engineers, former or current CEO/COOs, auditors, and accountants. Many of them have management experience in the private and government sectors, as well as in multilateral agencies.
Recognizing that a sustainable enterprise goes beyond the current generations of leaders, the AboitizPower Board appointed Mr. Danel C. Aboitiz as Directors in 2018. Danel is part of a new generation of homegrown leaders who add fresh perspectives to each Board’s deliberation.
Term Limits of Independent Directors
AboitizPower complies with the requirements of SEC Memorandum Circular No. 19, Series of 2016, prescribing a maximum term of nine years for independent directors, starting from 2012. In the nomination, selection, and election of the members of AboitizPower Boards recognize and respect the inviolable statutory right of each shareholder to vote and be voted as a director. If AboitizPower intends to retain an independent director who has served the maximum of nine consecutive years, the shareholders of the relevant company shall be advised and provided with meritorious justifications during the Annual Shareholders’ Meeting (ASM) for which the election will take place.
Directorships in Other Listed Companies
The ESCG Committee, respectively, selects qualified nominees for election as directors. One consideration is the number of directorships a nominee has in other corporations or organizations. As a corporate practice, AboitizPower directors, including Independent Directors, are discouraged from sitting as directors in more than five publicly-listed companies (PLCs). Executive Directors of AboitizPower do not generally sit on other boards of PLCs outside the Group, unless they have substantial interests in those PLCs or have been elected as independent directors. The AboitizPower Manual require that the CEO and other executive directors shall submit themselves to a low active limit on membership in other corporate boards. In 2021 none of the AboitizPower directors sat in more than five PLCs.
The Environmental, Social, and Corporate Governance Committee (ESCG, formerly the Corporate Governance Committee) of AboitizPower is responsible for ensuring the establishment of a governance mechanism that promotes sustainability practices through proper environmental stewardship, social development, and sound corporate governance. The ESCG Committees also perform the functions of the Nomination and Remuneration Committees. In carrying out their duties and responsibilities, the ESCG Committee is supported by the company’s Compliance Officer, Chief External Relations Officer, as well as the Group Chief Human Resources Officer. These officers regularly attend committee meetings to act as resource persons. The chairmen of the ESCG Committees are the Lead Independent Directors.
Key Areas of Focus in 2021
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Environment and Social |
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Compliance |
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Corporate Governance |
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Nomination and Compensation |
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The Audit Committee continued to provide oversight over the AboitizPower financial reporting policies, practices and controls, and over the internal and external audit functions necessary for making good audit-related decisions. Chaired by independent directors, the Audit Committees are composed of all three independent directors and two non-executive directors. Each company’s Chief Financial Officer and Internal Audit Head, who performs the functions of a Chief Audit Executive, are regular attendees and resource persons at committee meetings. At the end of every Audit Committee meeting, Committee Members meet without any executive present.
Key Areas of Focus in 2021
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Financial Reports |
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External Auditors |
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Internal Auditors |
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Committee Charter |
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Sufficiency of Internal Control and Compliance System
The AboitizPower Audit Committee assists their respective Boards in fulfilling oversight responsibilities over their company’s system of internal control. They are responsible for monitoring, overseeing, and evaluating the duties and responsibilities of management, the internal audit activity, and the external auditors as those duties and responsibilities relate to the organization’s processes for controlling its operations.
In 2021, the President and Chief Executive Officer, Chief Financial Officer, and Internal Audit Head of AboitizPower attested to the sufficient internal control and compliance system of their respective companies.
Audit and Non-Audit Fees
The Independent External Auditor of AboitizPower is the accounting firm of SyCip Gorres Velayo & Co. (SGV), with Ms. Maria Veronica Andresa R. Pore as current audit partner who has served since 2017.
As a policy, the Board Audit Committee makes recommendations to the Board concerning the choice of external auditor and pre-approves audit plans, scope, and frequency before the audit is conducted. Audit services of external auditors for the years 2021 and 2010 were pre-approved by the Board Audit Committees of AboitizPower. The Committee also reviewed the extent and nature of these services to ensure that the independence of the external auditors is preserved. The following table sets out the aggregate fees paid by the Company for each of the last two years for professional fees rendered by SGV:
AboitizPower engaged SGV to auditits 2021 and 2020 annual financial statements. SGV was also engaged to conduct post reviews and other procedures for the purpose of issuing comfort letters in connection with the issuance of the ₱8 bn and ₱12 bn bonds in 2021 and ₱9.6 bn bonds in 2020. In 2021, the Company also engaged SGV to provide financial and tax due diligence in relation to the Company's preparation of BIR form 1709, comparability analysis and benchmarking update, and transfer pricing documentation. As a policy, the Board Audit Committee makes recommendations to the Board of Directors concerning the choice of external auditor and pre-approves audit plans, scope, and frequency before the audit is conducted. Audit services of SGV for 2021 and 2020 were pre-approved by the Board Audit Committee. The Board Audit Committee also reviewed the extent and nature of these services to ensure that the independence of the external auditors was preserved. SGV does not have any direct or indirect interest in the Company.
The Risk and Reputation Committee exercise oversight functions over each company’s enterprise risk management and reputation management, including their respective corporate brands and communication strategies.
The Related Party Transactions (RPT) Committee of AboitizPower is composed entirely of independent directors. The RPT Committee has the mandate to ensure that related party transactions are taken at an arm’s length basis and within market rates, with sufficient documentation, and coursed through all appropriate levels of necessary approvals.
Key Areas of Focus in 2021
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RPT Policy and Committee Charter |
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Completion of RPT Certification |
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Fairness of RPTs |
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The Executive Committee of AboitizPower, organized in May 2018, are composed of five regular members, with at least two non-executive directors. The committees were formed to assist the Board in the management and oversight of each company’s day-to-day operations and strategic decision–making during the intervening period between full Board meetings. The President and CEO of AboitizPower is the chairman of the Executive Committees.
The Board Cyber and Information Committee was established on March 8, 2021. It assists the Board in providing strategic direction and ensuring the establishment of the company’s system of governance (processes, policies, controls and management) on matters relating to information security and cybersecurity.
Key Areas of Focus in 2021
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Organizational |
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Cybersecurity Strategy |
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Cybersecurity Risks |
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Please click here to view the Committee members and its charters.
As provided in the Company’s Board Protocol, the Company’s Independent Directors meet at least once a year for an Executive Session. The Independent Directors may also meet periodically in an executive session with no other Director or management present except for the Chairman of the Board Environmental, Social and Corporate Governance Committee (ESCG) who shall call for and preside the meeting.
Topics for discussion during these executive sessions shall be determined by the Independent Directors, but actions of the Board generally should be taken separately during Board meetings. The Independent Directors met virtually with the non-executive directors, including the Chairman of the Board ESCG, at Taguig City in 2021 for their informal discussion of issues.
The Aboitiz Group believes that the nomination, selection, and election of directors are the fundamental elements of a well-functioning corporate governance system. AboitizPower follows a formal and transparent board nomination, selection, and election process to ensure that the interests of all shareholders are protected. Any shareholder may nominate a director and independent director. The ESCG Committees act as the nomination committees and oversee the selection of candidates for their respective independent, executive, and non-executive directors. In determining the right candidates for directors, AboitizPower may use professional search firms and external sources of candidates, including director databases and professional organizations in the Philippines or abroad.
The members of the Boards of AboitizPower comply with the qualifications for directors found in the Revised Corporation Code, Securities and Regulation Code and its Implementing Rules and Regulations, related SEC issuances, and best practices in corporate governance. Considering that AboitizPower is involved in complex and highly regulated businesses, Board members are identified and nominated based on their wealth of experience, in-depth knowledge, wisdom, and capability to contribute to the long-term success of each company. The ESCG Committee after rigorous screening of the candidates, provide the final list of candidates for directors to each company’s Corporate Secretary, for inclusion in the ASM agenda. This gives the stockholders the opportunity to assess the background and qualifications of the nominees before the actual ASM.
Every year during the ASMs, AboitizPower shareholders elect their representatives to the Boards by voting in person, by proxy, and – for the first time in 2020 – by voting in absentia. Proxy votes received by the Corporate Secretary of AboitizPower before the ASM are validated by each of the company’s Proxy Validation Committee. The members of the AboitizPower Proxy Validation Committees include each of the company’s compliance officer, its principal accounting officer, and the head of its internal audit team. AboitizPower follow the rule of One-Share, One-Vote. Under this rule, any minority shareholder can influence the Board composition by individual nomination and by the power of cumulative voting rights. The right to cumulative voting is a statutory right granted by the Revised Corporation Code. A director holds office for one year until his successor is elected at the next ASM, in accordance with the Revised Corporation Code, each company’s by-laws, and the relevant SEC guidelines.
The Board of Directors conduct an annual performance assessment of the Board members and key officers. The Board members conduct a self assessment of their individual and collective performance, and also evaluate the performance of the CEO, the Internal Audit Head, Chief Risk and Reputation Officer, and the Compliance Officer.
The directors and key officers are evaluated based on the following criteria: compliance with best governance practices and principles; participation and contribution to the Board and committee meetings; and assessment of performance against their duties and responsibilities as provided in the company’s Manual, Articles, and By Laws. Assessment results for the past three years are compared, and these are presented to the respective Board Environmental, Social and Corporate Governance Committees and to all Board members.
In 2021, the members of the AboitizPower Board conducted the following performance reviews and assessment:
In addition, the Corporate Governance Code requires that at least once in every three years, the conduct of the Board performance assessment must be supported by an independent third-party facilitator. AboitizPower complied with this requirement in 2023 with the engagement of the Institute of Corporate Directors (ICD), a non-stock, not-for-profit national association of corporate directors and other stakeholders engaged in corporate governance, to support its Board performance assessment exercise.
The ESCG Committees of AboitizPower ensure that the remuneration for directors and key executives is consistent with the Group’s culture, strategy, and business policies. Guided by the Aboitiz Compensation Philosophy, factors such as individual and organizational performance, and inflation, among others, are taken into account to ensure that the compensation structure will attract, retain, and engage the best talents to contribute to the success of the business. Each year, the results of the study are presented and discussed during the first meeting of the ESCG Committee.
In compliance with Section 29 of the Revised Corporation Code, the total compensation of each of the Company’s directors as of December 31, 2021 is as follows:
Other than the director’s per diem and monthly allowance, there are no other standard arrangements pursuant to which directors are compensated or to be compensated. Officers are rewarded based on their individual performance and on their ability to execute their duties and responsibilities effectively.
The Board of Directors do not participate in discussions or deliberations involving his/her own remuneration. Thus, all proposed changes in Board remuneration are approved by the shareholders and disclosed to the public in a timely manner through PSE and SEC disclosures and the Company’s Annual Report (SEC Form 17-A). The Company believes that the information provided in the disclosures provide sufficient information on director and executive remuneration, while maintaining the privacy of the individuals concerned in compliance with applicable laws and regulations.
Other than the directors’ per diem and monthly allowance, there are no other standard arrangements pursuant to which directors are compensated or to be compensated.
The Board of Directors do not participate in discussions or deliberations involving his/her own remuneration. Thus, all proposed changes in Board remuneration are approved by the shareholders and disclosed to the public in a timely manner through PSE and SEC disclosures and the Company’s Annual Report (SEC Form 17-A). The Company believes that the information provided in the disclosures provide sufficient information on director and executive remuneration, while maintaining the privacy of the individuals concerned in compliance with applicable laws and regulations.
Board directors are expected to serve with diligence. The schedule for the regular Board and committee meetings for the upcoming year is also approved and distributed to Board directors before the start of the year.
The tables below show the attendance records of AboitizPower director for the Board and Board Committee meetings in 2021 and 2020:
The AboitizPower Board of Directors are expected to serve with diligence. In order to facilitate their attendance in meetings, the schedule for the regular Board and committee meetings for the upcoming year is approved and circulated to members before the start of the year. Directors are not only expected to attend meetings but to actively participate by providing valuable professional counsel, strategic guidance, and constructive feedback. The timely distribution of meeting materials within five days before each Board or committee meeting ensures the directors’ active participation.
Despite COVID-related travel restrictions in 2020, the AEV and AboitizPower Boards continued to discharge their duties and responsibilities. Board and committee activities remained business as usual. Meetings were conducted through a secure videoconferencing platform that allowed each member to interact and participate remotely. Like in previous years, meeting materials were circulated to Board members through a secure digital platform at least five days before the meeting. Meeting protocols were regularly reviewed and modified for more efficient virtual Board and committee meetings.
Protecting the rights of shareholders is of paramount importance to the company. The goal is to ensure the free exercise of shareholder rights, regardless of the number of shares they own. Among the rights of the company’s shareholders are: (1) to receive notices of and to attend shareholders’ meetings; (2) to participate and vote on the basis of the one-share, one-vote policy; (3) nominate, elect, remove, and replace Board members (including via cumulative voting); (4) call for a special board meeting and propose a meeting agenda, (5) inspect corporate books and records; (6) vote in person, in absentia, or through proxy; ( 7) receive dividends; and (8 ) ratify corporate actions.
AboitizPower strives to maintain a transparent and fair conduct of their respective Annual and Special Shareholders’ Meetings. They also ensure that accurate and timely information is available to shareholders to enable them to make a sound judgment on all matters brought to their attention for consideration or approval. The Definitive Information Statement and the Annual Report, distributed prior to the shareholders’ meeting and posted on the company’s website, include the highlights and summary of the financial condition of both companies. Stockholders are provided with individual profiles of new and returning directors, as well as a summary of the Board meeting attendance and performance record of Directors. All shareholders receive notices not less than 28 days from the date of the shareholders’ meeting, and the agenda items to be discussed and decided upon during the meeting.
All shareholders of AboitizPower are encouraged to participate in the meetings for the opportunity to ask questions or raise issues. Issues and motions raised, agreements and resolutions arrived at, corporate acts approved or disapproved, and voting results are reported in the minutes.
AboitizPower also discloses to PSE, PDEx and the SEC all the items approved at the shareholders’ meeting no later than the next business day. The voting results including quorum and summary of resolutions approved are made public the next working day in the Investor Relations’ page of the companies’ respective websites. There are no barriers or impediments preventing shareholders from consulting or communicating with one another, with the Directors, and with the Corporate Secretary.
AboitizPower continues to exert efforts to broaden the communication channels between them and their institutional and individual stockholders through the Investor Relations Office and Shareholder Relations Office, respectively.
Every year, AboitizPower pays dividends in an equitable and timely manner. All shareholders are treated equally, receiving dividends that are proportionate to their shareholdings. The period for paying the dividends is based on trading requirements or constraints of the SEC and PSE. In the last three years, AboitizPower have paid the following dividends:
As a matter of policy, AboitizPower encourages the active participation of shareholders in corporate decisions, such as amendments to the Articles of Incorporation and By-laws, appointment of auditors, and the approval of audited financial statements, among others. At the ASM, the Board of Directors present and submit to the shareholders the proposed actions for approval. The shareholders are also given an opportunity to ask questions regarding the proposed actions during the meeting. Only upon receipt of the affirmative vote of shareholders representing at least 2/3 of the issued and outstanding capital stock of each company, will such action be considered as duly approved by the shareholders.
In 2020, AboitizPower amended their Articles of Incorporation to (1) Article Two: include in the primary purpose the power to act as guarantor or surety for the loans and obligations of its affiliates and associates; (2) Article Four: amend the corporate term to perpetual existence, and (3) Article Seven: amend the features of the preferred shares. The amendment to Article Four was proposed to align with the provisions of the Revised Corporation Code on the perpetual existence of corporations. Meanwhile, the amendments to Articles Two and Seven were proposed to give AboitizPower additional flexibility in their capital- and fund-raising activities. The proposals received the affirmative vote of shareholders representing at least 2/3 of the issued and outstanding capital stock of each company.
On October 1, 2020, the SEC approved the amendment of the Articles of Incorporation of AboitizPower.
The Company has a policy on transparency of compensation for its Directors and key officers, in accordance with the SEC rules. Information on the basis of Board remuneration is readily accessible through the Company’s SEC Form 17-A (Annual Report), the Annual Corporate Governance Report, Board ESCG Committee minutes and its Company Website. The Board ESCG Committee ensures that the Directors’ and executives’ remuneration are consistent with the Company culture, strategy and business policies at a level sufficient to attract and retain Directors and officers who are needed to run the Company successfully. The Company rewards its individual Directors and Officers based on ability to execute their duties and responsibilities. It is the Company’s philosophy to reward officers and employees based on individual performance measured through established Human Resources management metrics.
Performance is evaluated and compensation is reviewed on an annual basis. The Company ensures that it pays its Directors and Officers competitively by comparing rates with other Philippine based companies through participation in and access to market salary surveys.
All shareholders have the right to nominate individually all the members of the Board. Nominations for the position of a director are received by the Corporate Secretary in accordance with the Company’s By- Laws and recently amended Guidelines for the Nomination and Election of Independent Directors which was approved on March 23, 2017. The process of nomination is clearly set out in the Company’s Definitive Information Statement, Annual Report, Guidelines for the Nomination and Election of Independent Directors, and these information are readily accessible through the Company’s website. The gist of the nominations guidelines is also broadcast to the shareholders at every Annual Shareholders’ Meeting. The Board ESCG Committee oversees the selection of candidates for the Board of Directors.
The exercise of a shareholder’s voting right is encouraged by the Company to ensure meaningful participation in all shareholders’ meetings. The Board is committed to removing costs and other administrative or practical impediments to a shareholder’s right to vote. The counting of shareholders’ votes is done in accordance with the general provisions of the Corporation Code and the Company’s internal procedures. The Office of the Corporate Secretary supervises the counting of votes through an electronic platform and through the appointed third party vote canvasser/validator.
The voting methods and vote-counting systems employed by the Company during every shareholders’ meeting are disclosed in the Information Statement and clearly explained by the Corporate Secretary to shareholders during the shareholders’ meeting to ensure the intelligent exercise of the shareholders’ right to vote.
The Company follows the system of cumulative voting for the election of directors, to allow shareholders an opportunity to elect each member of the Board of Directors individually. Other matters are also decided through voting by shares of stock. The Company adheres to the one-share, one-vote policy for the same class of shares. Proxy voting is allowed at all meetings and is facilitated through proxy voting forms. In its regular board meeting last November 12, 2010, the Board of Directors of the Company approved the deletion of the notarization requirement of proxy forms to be used in all stockholders’ meetings of the Company. This is to facilitate easy voting by shareholders, in line with the Company’s efforts to promote shareholder engagement and to improve corporate governance practices. The Company makes the results of the votes publicly available the next working day.
The Office of the Corporate Secretary ensures that all minutes of annual and special meetings of shareholders clearly and satisfactorily reflect all matters taken up during these meetings. All shareholders are encouraged and given the right to participate in the meetings. The opportunity to ask questions or raise issues, the questions, answers, issues and motions raised, the agreements and resolutions arrived at, the corporate acts approved or disapproved, and the voting results are reported in the minutes. The Company also discloses to PSE, PDEx and the SEC all the items approved at the shareholders’ meeting no later than the next business day. The voting results including quorum and summary of resolutions approved are made publicly available by the next working day through the Company’s website under Investor Relations’ page.
At every ASM, the Company ensures the effective exercise of the rights of its shareholders. There are no barriers or impediments preventing shareholders from consulting or communicating with one another, with the Directors and with the Corporate Secretary. Questions raised during the shareholders’ meeting by the shareholders are minuted or documented.
The Chairman and members of the Board of Directors, the President and Chief Executive Officer, Executive Vice President and Chief Operating Officer, the Chairman of the various Board Committees particularly the Board Audit Committee, and the Company Corporate Secretary all attend the ASM of the Company to answer any questions which shareholders may have concerning the Company. Likewise, the Chairman and all members of the Board of Directors, other key officers and the Company’s auditors are present at the shareholders’ meeting to give shareholders the opportunity to interact with the Board and top management on the current state of the Company’s business and affairs and to ask any questions from the Directors and Corporate Officers. Shareholders and investors are encouraged to ask the CEO or any officer of the Company any questions they may want to be clarified.
The minutes of the ASM available in the Company’s website also document the attendance and participation of the Board of Directors, Management, and the members of the different Board committees.
The shareholders may vote in person or by proxy. Arrangements for proxy voting or voting in absentia are in line with existing rules and regulations. The Company provides shareholders with a copy of the proxy form through the following: (1) printed copy enclosed in the Definitive Information Statement; (2) digital copy inserted in the USB kit containing the soft files of the Information Statement; and (3) downloadable form from the Company’s website.
In its regular board meeting last November 12, 2010, the Board of Directors of the Company approved the deletion of the notarization requirement of proxy forms to be used in all shareholders’ meetings of the Company. This is to facilitate easy voting by shareholders, in line with the Company’s efforts to improve corporate governance practices.
Every year, a Proxy Validation Committee, consisting of representatives from senior management was formed by the Company in order to validate and count proxies received for the ASM. An independent auditor, Luis Cañete & Company, was appointed as independent inspector/ scrutineers for the validation of votes during 2021 and 2022 ASM.
Voting during the ASM is done by poll, under the supervision of the Company’s Corporate Secretary, Stock and Transfer Agent, and validated by the Proxy Validation Committee and an independent third party inspector of votes. The Board Secretariat also uses an electronic platform to record the votes.
At the ASM, the Company engages an independent third party to assist in the validation of proxy and the counting of votes. In the 2017 ASM, a Proxy Validation Committee, consisting of representatives from senior management, was formed by the Board Secretariat in order to validate and count proxies received for the meeting. Luis Cañete & Co., an independent third party, provided the proxy and vote validation functions for the 2021 and 2022 ASM.
Approved Shareholders’ resolutions and the minutes during the ASM are disclosed and made publicly available on the Company’s website on the next working day after the ASM. The minutes of the 2021 and 2022 meeting of shareholders were uploaded to the Company’s website the day after the ASM. The minutes can be accessed on the Company’s website under Investor Relations’ page.
The Company provides at least 28 days prior notice of the meeting and information on all proposed resolutions and rationale thereof with corresponding explanation for each agenda item requiring shareholders’ approval in the notices of the ASM. The Company also publishes notices of the shareholders’ meetings in national newspapers of general circulation.
Each resolution relates to only one agenda item, and a brief rationale or explanation for its inclusion in the ASM is provided. The Company does not include any additional and unannounced agenda item in the ASM if not disclosed prior to the ASM.
The Board delegates to Management the power and discretion to engage independent parties to evaluate the fairness of the transaction price for the acquisition or disposal of assets, which will depend on the size of the transaction, the jurisdiction(s) involved, and the availability and capacity of expertise in-house. Depending on the factors mentioned, Management then decides whether to engage an independent party to evaluate the fairness of the transaction price.
The Company has a deep bench of competent investment and finance experts who are capable of evaluating the fairness of the transaction price. The Chief Strategy Officer of the Company has a wealth of experience in management, investment banking, and private equity investing, including almost 38 years of experience in energy markets. Taking into account the size of the transaction and its overall effect on the Company’s businesses and positions, the entire transaction, including the transaction price, is presented to the Board for approval.
In 2018, the Company appointed Morgan Stanley as financial advisor to the Aboitiz Group in the acquisition of a 75% stake in Gold Coin Management Holdings Limited.
The Company strives to maintain a transparent and fair conduct of its annual and special shareholders’ meetings and ensures that accurate and timely information should be made available to the shareholders to enable them to make a sound judgment on all matters brought to their attention for consideration or approval. The Definitive Information Statement and the Aboitiz Integrated Annual Report, distributed prior to and during the ASM and available in the Company’s website, include the highlights and summary of the financial condition of the Company. The Definitive Information Statement filed with the PSE, PDEx and SEC is prepared with the objective of providing full and accurate and truthful information enabling stakeholders to make informed decisions. Shareholders are provided with individual profiles of new and returning directors, as well as a summary of the Board meeting attendance and performance record of its Directors. Agenda items are included in the notices and include a rationale for each agenda item.
The Company continues to exert efforts to extend the communication channels between the Company and the institutional shareholders through its Investor Relations Office and to the nominee registered shareholders through the PCD Nominee Corporation. The Governance and Compliance team reach out and provide copies of the notice and agenda of the ASM, sample proxy forms, and the Definitive Information Statement prior to the shareholders’ meeting for dissemination to the brokers to ensure that institutional investors are properly represented during the shareholders’ meeting.
As a matter of policy, the Company does not solicit proxies.
During the ASM, the Company engages an independent third part to assist with the validation of proxy and counting of the votes. For the 2018 ASM, Luis Canete & Co., provided the proxy and vote validation functions.
The Board delegates to Management the power and discretion to engage independent parties to evaluate the fairness of the transaction price for the acquisition or disposal of assets, which will depend on the size of the transaction, the jurisdiction(s) involved, and the availability and capacity of expertise in-house. Depending on the factors mentioned, Management then decides whether to engage an independent party to evaluate the fairness of the transaction price.
The Company has a deep bench of competent investment and finance experts who are capable of evaluating the fairness of the transaction price. The Chief Strategy Officer of the Company has a wealth of experience in management, investment banking, and private equity investing, including almost 38 years of experience in energy markets.
Taking into account the size of the transaction and its overall effect on the Company’s businesses and positions, the entire transaction, including the transaction price, is presented to the Board for approval.
The Company strives to maintain a transparent and fair conduct of its annual and special shareholders’ meetings and ensures that accurate and timely information should be made available to the shareholders to enable them to make a sound judgment on all matters brought to their attention for consideration or approval. The Definitive Information Statement and the Aboitiz Integrated Annual Report, distributed prior to and during the ASM and available in the Company’s website, include the highlights and summary of the financial condition of the Company. The Definitive Information Statement filed with the PSE, PDEx and SEC is prepared with the objective of providing full and accurate and truthful information enabling stakeholders to make informed decisions. Shareholders are provided with individual profiles of new and returning directors, as well as a summary of the Board meeting attendance and performance record of its Directors. Agenda items are included in the notices and includes a rationale for each agenda item.
The Company continues to exert efforts to extend the communication channels between the Company and the institutional shareholders through its Investor Relations Office and to the nominee registered shareholders through the PCD Nominee Corporation. The Governance and Compliance team reach out and provide copies of the notice and agenda of the ASM, sample proxy forms, and the Definitive Information Statement prior to the shareholders’ meeting for dissemination to the brokers to ensure that institutional investors are properly represented during the shareholders’ meeting.
As a matter of policy, the Company does not solicit proxies.
The Company promotes a culture of ethical and values-based service, excellence and leadership. We believe that this corporate culture promotes the recognition for employees and officers of their duty to advance the Company’s interests and that of its stakeholders. No employee, officer or director may take advantage of their position or corporate property or information for personal gain.
Employees, officers or directors are prohibited from taking advantage of their position, from taking advantage of access to corporate property and proprietary information for personal gain. They are prohibited from appropriating for themselves, corporate opportunities for sales, purchases of products and services. It is the duty of each director, officer and employee to protect propriety and confidential information.
AboitizPower employees and officers are encouraged to promptly report any potential relationship, action or transaction that may give rise to a conflict of interest to the Human Resources Department or to the Compliance Officer. Directors are under the obligation to disclose any actual or potential conflict of interest to the Chairman of the Board, to the Corporate Secretary, and to the Compliance Officer.
All Directors are also required to abstain or inhibit themselves from any Board discussion or decision affecting their personal, business or professional interests. Legal proceedings involving Directors and Officers that could affect their ability and integrity to serve the Company are required to be disclosed to the Compliance Officer.
The Company adopted the Policy on Conflict of Interest in 2012 to set out the procedures that would ensure the integrity and transparency of all transactions between and among the Company or any of its subsidiaries, affiliates, associates, major shareholders, directors and officers. No issues relating to RPTs or conflict of interests have been raised in the past or in recent years.
The Governance and Compliance Team, as well as the Board Secretariat, of AboitizPower monitor and timely disclose any changes in the share ownership of their respective directors, executives, and key officers. They also ensure that trading blackouts are implemented at the right time and to appropriate individuals.
Every quarter, AboitizPower disclose a public ownership report detailing the extent of ownership of their respective controlling shareholders, including the shareholdings of subsidiaries and affiliates, and of directors and key officers. In addition, AboitizPower publishes a list of their top 100 shareholders every quarter. AboitizPower also disclosed their top 20 shareholders, including record and beneficial shareholders owning more than five percent of their respective outstanding capital stock. However, AboitizPower has no control over external shareholders who opt to put their shares under nominee holding companies such as the PCD Nominee Corporation, and are thus unable to make any disclosure on the details of beneficial ownership.
AboitizPower disclosed the beneficial ownership of their directors and key officers in regular filings of the Statement of Beneficial Ownership, and in the Annual Corporate Governance Report. The Revised General Trading Policies of both companies require the Board of Directors and officers to notify the Office of the Corporate Secretary immediately after they deal in company shares.
Please click here for the latest ownership structure.
While the Company encourages stock ownership by employees, to ensure ethical conduct, the Company through its Governance and Compliance Team and Board Secretariat, monitors the share ownership of directors, executives, officers and management team through the regular SEC disclosures of beneficial ownership (SEC Form 23-B), and tracking of compliance through the implementation of the Company’s General Trading Policy and Trading Black-out dates.
The Company is committed to elevating its standards of disclosure and transparency and the quality and depth of its corporate governance practices to enable the investing community to understand the true financial condition of the Company. Through the Investor Relations Office, the Office of the Corporate Secretary, the Annual Report, Aboitiz Integrated Annual Report, the Company website, the Company’s Information Statement, and all disclosures to the PSE, PDEx, and SEC, the Company publishes timely material information on all matters regarding the Company, including, the financial situation, performance, ownership, and governance of the Company. Regular disclosures include details of the Company’s subsidiaries, associates, joint ventures, and special purpose vehicles if any. There are no special arrangements enabling certain shareholders to obtain a degree of control disproportionate to their equity ownership that needs to be disclosed.
AboitizPower disclosed the beneficial ownership of their directors and key officers in regular filings of the Statement of Beneficial Ownership, and in the Annual Corporate Governance Report. The Revised General Trading Policies of both companies require the Board of Directors and officers to notify the Office of the Corporate Secretary immediately after they deal in company shares.
The Company has an existing policy requiring the Board of Directors and the officers to report to the Office of the Corporate Secretary any transaction related to the purchase and disposal of Company shares within one business day from the date of the transaction. The Company discloses the direct and indirect (deemed) ownership or shareholdings of major and/or substantial shareholders and the details of the subsidiaries, associates, joint ventures and special purpose enterprises/vehicles. The Company’s Information Statement and Public Ownership Report regularly filed by the Company likewise show the direct and indirect ownership of the Company’s shareholders, which include its Board, the Management Team, and employees. Regular disclosures to the PSE, PDEx and SEC are made in the event of any dealings in Company shares. These disclosures are available at the Company’s website and can also be accessed from the PSE portal.
As of December 31, 2021, the directors and key officers of AboitizPower own the following shares:
All relevant disclosures were filed in a timely manner with the Securities and Exchange Commission (SEC), Philippine Stock Exchange (PSE), and the Philippine Dealing & Exchange Corp. (PDEx). All the 2021 filings and relevant information were filed and disclosed within the period indicated below:
Insider trading is strictly prohibited under the Company’s General Trading Policy, the Code of Ethics and Business Conduct, the Company’s Manual on Corporate Governance, and under the PSE and SEC rules. The Company’s General Trading Policy prohibits every member of the Company’s organization from any misuse of insider information. All team members of the Company are mandated to exercise prudence in handling material non-public information in the course of their work and in relation to the trading or dealing with AboitizPower securities. The Company strictly enforces its trading blackout and insider trading policy to curtail opportunistic dealings in the Company’s shares. Any violations are required to be reported to the Board ESCG Committee.
The Company ‘s General Trading Policy requires the Board of Directors and the officers to notify the Company at least one (1) day before they deal in the company shares. Directors and key officers are required to regularly report their beneficial ownership of shares in the Company and any dealings in AboitizPower shares must be reported to the Corporate Secretary within one day from the sale or purchase of AboitizPower shares. In addition, the Company discloses beneficial ownership in its Disclosures (SEC Form 23-B and Public Ownership Report, the Annual Report, and the Information Statements to the SEC including trading of Company shares of its directors and key officers. There has been no investigation of violation and conviction of insider trading and abusive self-dealing by directors, management and employees in the past five years that the Trading Policy has been in place.
AboitizPower believe that their directors should keep abreast with current industry developments and business trends in order to promote the Group’s competitiveness. It is equally important that all directors are aware of their duties and responsibilities, and are provided with all the information needed to discharge their functions.
The AboitizPower Manual requires every director to undergo an initial onboarding session upon first appointment to the Board, and to commit to a continuing professional training program (formal and informal) to be kept updated on recent developments in internal policies, relevant laws and regulations, and various business risks relevant to the Group. The Chairman of Board, with the assistance of their respective Compliance Officer, ensures that directors and key officers comply with these requirements.
AboitizPower (AP or the “Company”) ensures the protection of its reputation, safeguards its core investments, empowers its team members, delights its customers, and engages with communities to create long-term value for all its stakeholders. Enterprise Risk Management (ERM) is a cornerstone of AboitizPower’s strategic vision for sustainable growth and resilience. The Company has implemented a proactive strategy to identify, assess, and address potential risks–both threats and opportunities–to its operations and objectives.
Risk management is deeply embedded in the Company’s strategic and operational planning and decision-making processes to facilitate informed risk-taking. Management and operational teams systematically identify and evaluate potential risk events and scenarios that could affect the Company’s strategic goals and daily business operations. Moreover, the Company formulates comprehensive risk treatment plans to address the underlying causes of its most critical risks, including emerging risks that could significantly impact its business operations and stakeholders. Strategic and top operational risks are presented and discussed with organizational leadership, including the AP Board Risk and Reputation Management Committee (BRRMC), during meetings held at least three times a year.
The three pillars of ERM in AP — Business Risk & Planning (BRP), Business Continuity Management (BCM), and Risk Finance (RF) — work collaboratively to ensure threats are effectively managed and mitigated, while fostering a cohesive risk management culture. Across the group, more than 40 full-time risk management team members, from specialists to executives, directly perform governance roles and champion a proactive risk culture within their business units.
The BRP Pillar takes the lead in identifying potential threats and opportunities, analyzing their impact, and concurrently implementing a strategic framework to mitigate risks to the business. It leverages established tools such as emerging risks assessments, risk appetite and risk tolerance frameworks, and key risk indicators (KRIs), while maximizing opportunities. Additionally, this pillar serves as the Committee Secretariat of the AP BRRMC.
The BCM Pillar spearheads business resilience and risk reduction for AP through a comprehensive program that includes strategies to reduce exposure to vulnerabilities, including physical hazards. It also oversees third-party resilience capabilities and aligns AP’s initiatives with regulatory resilience frameworks.
The RF Pillar manages the transfer of AP’s insurable risks through third parties and retains certain risks via its captive insurance program. The pillar designs tailored insurance programs based on the risk exposures of each Business Unit (BU) and collaborates with third-party insurance brokers and markets to ensure that we are adequately insured in the event of a loss. This enables the Company to recover and restore operations to pre-loss conditions when needed.
AboitizPower’s ERM Framework consists of components that provide the foundation and organizational structure for designing, implementing, monitoring, reviewing, and continually improving risk management across the organization.The framework classifies ERM programs and initiatives into four pillars: Governance, Process and Integration, Business Partnership, and Capability Building.
AP’s risk management process integrates both top-down and bottom-up approaches to ensure comprehensive risk identification. From the top down, senior management sets the strategic direction, identifies high-level risks, and establishes policies for mitigating them. Simultaneously, the bottom-up approach involves input from all levels of the organization, where team members identify and report operational risks based on their daily experiences and observations. This dual approach enables thorough risk assessment that combines strategic oversight with practical, on-the-ground insights, resulting in a robust and effective risk management framework.
The Company’s Policy on the Training of Directors includes mandatory continuous training and development programs to ensure directors stay updated on recent developments, such as new laws and regulations, corporate governance practices, and business risks relevant to the Group. A regular segment of the AP BRRMC, called the learning session, features discussions of key risk management concepts to equip committee members with a basic understanding of both theoretical and practical risk management applications.
Risk registers from AP’s Business Units (BUs) are compiled in the Strategic Risk Management Plans (SRMPs), which incorporate each unit’s Operational Risk Management Plans (ORMPs). Meanwhile, risk registers from the AP Corporate Support Units (CSUs) are documented directly in the ORMPs. Together, these reports ensure that both strategic and operational risks are effectively identified, assessed, and managed in alignment with the organization's overall risk management framework.
AP’s risk management process is conducted at least semiannually to address both strategic and operational risks. At the end of each review cycle, the strategic, operational (if necessary), and emerging risks are reported to AP’s Risk Management Council and, subsequently, to the Board Risk and Reputation Management Committee. The major risks identified in the business are regularly reported and published in the AboitizPower Annual Information Statement Report.
The risk process is being standardized in accordance with ISO 9001:2015 to reinforce accountability and align with international best practices. Risk management is incorporated into the ISO Quality Management System certification, which emphasizes risk-based thinking, continuous improvement, preventive measures, and the systematic identification and control of risks that may affect the quality of outcomes. Furthermore, the Risk Management Process undergoes annual ISO audits to ensure ongoing compliance and to drive the continuous enhancement of risk management practices.
This is AP’s risk governance & reporting structure:
AP’s Risk Management Process has the following steps:
Communication and consultation with external and internal stakeholders are undertaken during all stages of the risk management process to ensure that their needs and expectations are met. Risk Management communication and consultation addresses issues relating to the risk itself, its causes, its consequences (if known), and the measures being taken to treat it.
AP’s financial risk impact criteria is commonly expressed through Net Income After Tax (NIAT) exposure. Other non-financial impact criteria are reputation, data privacy, legal, compliance, operational, safety and environmental. Likelihood criteria is expressed through frequency and probability of occurrence. The criticality level or vulnerability of each risk is defined through likelihood and impact and is expressed through a five-point scale plotted in a risk map.
Each of the identified strategic or top risks of the organization are then assigned to a Management Committee member who will be accountable for updating and mitigating the risk.
Emerging risks are taken up either at the Board Risk and Reputation Management Committee or the full Board meeting of the company for assurance and visibility of the directors and officers of the company.
AboitizPower recognizes the value of clearly defining its risk appetite and tolerance. The frameworks provide clarity on the acceptable level of risk across the organization and offer structure and support for strategic decision-making. AP aims to take risks in an informed and proactive manner, ensuring that the level of risk is consistent with the potential rewards and that the Company understands and can manage or absorb the impact of the risk.
AboitizPower’s risk appetite levels are qualitatively expressed using a five-point scale, providing a consistent method for determining risk appetite across various categories. These levels are supported by corresponding risk appetite statements, which provide qualitative descriptions to explain the assigned levels.
AboitizPower’s Risk Tolerance framework provides clear boundaries, ensuring that risk-taking activities are performed within defined parameters. At AboitizPower, risk tolerance is defined through the use of Key Risk Indicators (KRI). Each KRI has a corresponding threshold set by the designated risk owner. These thresholds establish the limits or boundaries, and when exceeded, they serve as alerts to potential significant changes in risk exposure, triggering a review and update of risk mitigation plans. Thresholds are categorized into three levels: green, amber, and red.
The Management Committee vets and identifies the Company’s top risks along with their corresponding risk appetite levels. Risk appetite statements are then developed and updated annually to reflect any developments that may guide the revision of the tolerance levels or interventions to keep them within the established risk appetite.
In a world where managing risk and optimizing financial strategies are more critical than ever, Potentia Insurance Pte. Ltd., AboitizPower's captive insurance stands out as a transformative solution. At its core, it empowers businesses to take control of their risk management and insurance costs with unmatched precision and flexibility. Captive is more than just a financial strategy—it's a powerful tool that enhances control, reduces costs, and strengthens risk management.
One of the key business risks identified by AboitizPower (AP) through its top-down risk assessment approach is Country Concentration, defined as the potential vulnerabilities arising from AP’s reliance on a single geographic location, especially amid uncertainties related to political, regulatory, and natural catastrophes.
To assess this risk, key drivers, including regulatory shifts, political developments, and exposure to natural disasters, were discussed with various risk owners across the organization. The individual assessments were consolidated to determine the overall risk level, which was evaluated as Critical.
Following this, a risk appetite statement was established, indicating a Low Risk Appetite for materializing this risk. The Board was able to exercise effective oversight by expressing a preference for safe and prudent business strategies, showing a clear reluctance to accepting trade-offs that might increase concentration risk.
A corresponding risk tolerance threshold was defined based on Net Income After Tax (NIAT) concentration, emphasizing the need to diversify the portfolio and increase NIAT contributions from international sources.
Sound risk management principles will continue to be embedded in the development and execution of AP’s strategy, ensuring alignment with the Company’s long-term resilience and growth objectives.a
While AboitizPower applies a top-down approach to strategic risk identification and integrates risk appetite into governance processes, we are also taking steps to link performance incentives with improved risk management outcomes.
Through the Risk Resilience Reward (3R) program (anchored on our captive insurance) business units are rewarded with financial incentives in the form of insurance premium rebate when they meet clearly defined risk management objectives.
The 3R program serves as a financial incentive mechanism designed to encourage stronger risk ownership and resilience at the business unit level. By tying measurable performance in risk mitigation to insurance cost savings, AboitizPower is embedding risk accountability into operational and financial decision-making.
This approach reflects our commitment to strengthen the integration of risk management into our performance and reward systems, and marks an initial step toward aligning incentives with enterprise-wide resilience objectives.
In the business of powering homes, industries, and progress, risk is a constant companion. From shifting political landscapes to supply chain pressures, the path to providing reliable and affordable energy is never entirely smooth. Yet for Aboitiz Power Corporation, risk is not something to fear–it is something to understand, prepare for, and ultimately manage with discipline and foresight.
Operating primarily in the Philippines, we are keenly aware that concentrated exposure to a single country can amplify our vulnerability. Political changes, regulatory overhauls, and natural disasters don’t just make headlines – they can impact the flow of energy, the cost of doing business, and our ability to serve customers effectively.
That’s why we treat Country Concentration Risk with utmost seriousness. Our current internal assessment ranks the likelihood of this risk as high, with a level of impact that could significantly disrupt business efficiency and client services. This risk stems from several key sources: political instability, complex and rapidly evolving energy regulations, and climate-related catastrophes. These dynamics are especially relevant as the country transitions toward cleaner and more sustainable energy systems.
To manage this, we combine data-driven risk modeling with scenario-based planning. But more than just identifying risk, we act on it. We are actively exploring international asset investments and new markets, aiming to gradually reduce our single-country exposure. We are also strengthening relationships with foreign energy players and building internal capabilities to support growth beyond Philippine borders. Our posture on this risk–reflective of our low-risk appetite–is deliberately cautious, anchored on the belief that diversifying our geographic footprint enhances our long-term stability.
However, even with strategic expansion, the reliability of our energy system remains closely tied to global supply chains, particularly in the sourcing of coal. That’s why Supply Chain Risk is another top concern, especially in the face of global price shocks, export restrictions, and port congestion.
Our risk assessments distinguish between two key threats to the supply chain. The first is Impaired Coal Supply, which has a moderate chance of occurrence, and a moderate impact, typically associated with isolated and prolonged disruptions. This risk is shaped by shifting global demand, policy changes in supplier countries like Indonesia, and operational delays at key logistics hubs.
In parallel, we monitor a broader risk of Supply Chain Disruption, which includes geopolitical tensions (such as the Red Sea and Taiwan Strait), extreme weather events, and even regulatory failures. This risk is currently assessed as having a low likelihood of occurrence and a moderate impact level, reflecting the more variable, but still consequential nature of such disruptions.
We address these uncertainties through a layered approach that aligns with our low-risk appetite. First, we diversify fuel sources and suppliers. Second, we use hedging mechanisms and dynamic pricing to absorb volatility. Third, we maintain insurance coverage for coal supply delays and strengthen our vendor readiness through vetted backup suppliers and playbook-driven procurement responses.
By intensifying market scanning and working more closely with our suppliers, we can anticipate potential bottlenecks, quantify the associated financial exposure, and pre-position countermeasures. It’s not just about having contingency plans–it’s about ensuring they’re detailed, tested, and ready to activate when needed.
Our combined quantitative and qualitative approach to risk assessment enables us to strike a balance: being prepared without being paralyzed; knowing when to act boldly and when to proceed with caution; understanding the magnitude of a threat; and aligning mitigation strategies that are proportional and practical.
In a world where shocks are becoming more frequent and interconnected, our responsibility is clear: ensure continuity, protect value, and uphold the trust of the people who depend on us to keep the lights on.
In 2021, AboitizPower updated the Code to align with international best practices and promote the Group’s ESG efforts, and its commitment to ethical corporate citizenship. The following policies and guidelines were approved by the AboitizPower Board of Directors:
- Amended Code of Ethics and Business Conduct to strengthen each company’s commitment to sustainability principles, and further elaborate the company’s commitment to its stakeholders, particularly on antibribery and anti-corruption, trade compliance, and anti-money laundering. Related guidelines on anticorruption, gift, meals, and entertainment, and business partner due diligence were also approved by senior management to operationalize the amendments to the Codes.
- Amended each company’s Whistleblowing Policies. AboitizPower is evaluating the adoption of a new whistleblowing portal to encourage team members, team leaders, and third parties to report suspected or actual violation of the Code and company policies. Internal rules and procedures were also further developed to assist and guide in the handling, investigation, and resolution of reports or complaints received, whether via the whistleblowing platform or through any other channel.
The Aboitiz Group remains committed to support economic growth, social development, and environmental stewardship in the conduct of its businesses. The concept of balance between planet, people, and profit is not a new concept on how the Aboitiz Group operates its businesses. Advocacy and adherence to environmental sustainability and care for stakeholders have always been part of the Aboitiz Way – living the core value of Responsibility.
In 2020, AAboitizPower officially established an ESG governance structure to integrate existing corporate social responsibility, corporate governance, and environmental sustainability programs. The goal is to create an integrated approach in developing, implementing, monitoring, and communicating initiatives and results to the Group’s internal and external stakeholders. The Aboitiz Integrated Sustainability Report outlines the coordinated efforts of the Group’s sustainability stewards and applying ESG principles to improve the Group’s performance on team member engagement and development, corporate social responsibility, customer focus, disaster resilience, carbon emissions reduction, resource efficiency, renewable energy, waste management, financial growth, and financial returns. The Sustainability Reports of AboitizPower are available for viewing and downloading here.
The Aboitiz Group’s governance framework includes the timely, complete, and accurate disclosure of all material information regarding the Company. Information includes earnings results, acquisitions or disposals of assets, Board changes, RPTs, shareholdings of directors, and changes in ownership. In addition, the Group’s Consolidated Annual and Sustainability Report, which is based on GRI Sustainability Reporting standards, sets out its values and governance model. The integrated report links the Group’s strategy and its commitment to a sustainable global economy. Through the report, the Group is able to measure, understand, and communicate its economic, environmental, social and governance performance. From these, goals can then be set, and change managed more effectively. In 2021, the Company launched its sustainability websites to communicate their ESG efforts to a wider audience. Group-wide ESG initiatives are found at https://sustainability.aboitiz.com/
The Company values the contribution of its clients, business partners, suppliers and other stakeholders as it strives to achieve its corporate mission and vision. In recognition of the contributions of its valued shareholders, the Company is committed to engage in fair practices when dealing with them.
The Aboitiz Group seeks to outperform its competition fairly and honestly through superior performance. Every director, officer and employee must therefore always keep the best interests of the Company’s clients paramount and endeavour to deal fairly with suppliers, competitors, the public and one another. No one should take unfair advantage of anyone through manipulation, abuse of privileged information, misrepresentation of facts or any other unfair dealing practices.
Please click here to view the Company’s Code of Ethics and Business Conduct.
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AboitizPower upholds the highest ethical standards, safeguarding the integrity of our initiatives and developments as a business enterprise and a partner for environmental protection.
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