NAMES OF STUDENTS: Marielle Buscato and Danice Lindog

SUBJECT: MBA 746A (Good Governance and Corporate Social Responsibility)

TERM/ACADEMIC YEAR: 1st Term, AY 2022-2023

FINAL CAPSTONE: CSR Programs of First Generation Corporation

FACULTY: Esmeraldo D. Dimaculangan, Jr., Ph.D.

DATE SUBMITTED: December 10, 2022

..............................................................................

1. The Company:

First Gen Corporation is a power generation company that generates electricity by

utilizing 100% renewable and clean energy such as natural gas, hydro, geothermal steam, wind
and solar. It was incorporated as a subsidiary of First Philippine Holdings Corporation (FPH) and
registered with the Philippine Securities and Exchange Commission (SEC) on the 22nd of
December 1998 (First Gen, 2021). FPH is one of the oldest and largest conglomerates in the
Philippines that has investments in vital industries that support the country‘s economic
development such as power generation (through First Gen) and distribution, through its 3.9
percent effective ownership interest in Manila Electric Company (Meralco).
First Gen owns and operates 30 power projects across Luzon, Visayas, and Mindanao
with a combined installed capacity of 3,495.2 megawatts (MW). Consequently, First Gen has the
largest portfolio of power plants in the country that use only clean, renewable, and indigenous
fuels such as steam, water, wind, solar, and natural gas (First Gen, 2021). The company is widely
recognized as the leading, world-class power generation company that paved the way for the
Philippines' natural gas industry. Its corporate commitment is to lead the country's transformation
to a cleaner, decarbonized world by meeting the growing energy market's needs with competitive
and efficient energy and power generation assets that have the least environmental impact
(“Powering up the Philippines,” 2020).
First Gen is located at 6/F Rockwell Business Center Tower 3, Ortigas Avenue, Pasig
City. The company’s mission statement is as follows: “We commit to forging collaborative
pathways for a decarbonized and regenerative future.”
First Gen's competitors and similar companies include Aboitiz Power, San Miguel
Energy Corporation and many more. Ok
2. Objectives of the Study: Reflecting the knowledge of lecture content, class discussions,
and readings, this paper aims to,
a. classify the CSR programs of First Gen Corporation into Theater 1,
Theater 2, and Theater 3;
b. recommend the,
o movement of the programs in each theater from philanthropy to
strategic philanthropy (theater 1), from strategic CSR to re-engineering the
business value chain (theater 2), and from re-engineering the business to
transforming the business (theater 3); and
o establishment of a CSR unit whose primary responsibility is
coordinating and integrating initiatives in all three theatres in which a
company is engaged in, even if responsibility for the various initiatives
remains dispersed throughout the company.

3. CSR Programs of First Gen Corporation

a. CSR Strategies:
First Gen’s corporate social responsibility initiatives focus on helping
citizens in the local community develop and enhance their quality of life and raise
their self-reliance. These activities focus on: 1) environment, 2) education, 3)
community health and safety, 4) livelihood, 5) sociocultural, and 6) disaster
response and relief. As a corporate citizen, First Gen actively fulfills its duties and
responsibilities by partnering with a variety of non-profit organizations to develop
and implement initiatives that have a substantial influence on the fields of
environmental conservation and education.
First Gen's CSR programs contributed directly to the following seventeen
(17) SDGs: (1) No Poverty, (2) Zero Hunger, (3) Good Health and Well-being, (4)
Quality Education, (5) Gender Equality, (6) Clean Water and Sanitation, (7)
Affordable and Clean Energy, (8) Decent Work and Economic Growth, (9)
Industry, Innovation and Infrastructure, (10) Reduced Inequalities, (11)
Sustainable Cities and Communities, (12) Responsible Consumption and
Production, (13) Climate Action, (14) Life Below Water, (15) Life on Land, (16)
Peace, Justice and Strong Institutions, and (17) Partnerships for the Goals.
First Gen developed a CSR policy to guide its implementation and to
ensure that these programs are carried out effectively and efficiently. The CSR
policy is conducted as follows: a) Stakeholder Management, the process that
manages the relationship between the company and stakeholders, ensuring that
their involvement is maintained throughout the project's lifespan; b) CSR
Program Development and Management, which is the process that entails
community mapping and social acceptability surveys every three years and CSR
program development, execution, monitoring, and reporting; c) Donations and
 Sponsorship, which governs donations and sponsorship requests made by First
Gen and its subsidiaries; and d) Employee Volunteerism, which supports the CSR
department's process of volunteer activity planning, actual volunteer work, and
documentation of contributions and related data.

b. Opportunities and Challenges

The COVID-19 pandemic negatively impacted almost all sectors of the
economy, putting enormous and unprecedented strains on organizations. Although
electricity is an essential necessity of society, the power industry still endured the
disruptions of COVID-19. For this reason, First Gen's commitment to CSR was
tested, as it is with other organizations. First Gen went through a period of fear as
they tried to navigate through the challenges that they faced. Due to nationwide
quarantine, restrictions, and lockdown periods caused by COVID-19, First Gen
had difficulties in their CSR program implementation, including the
postponement of face-to-face interactions and fieldwork (First Gen, 2020).
That being said, these challenges have also provided opportunities for
technological innovation and the development of various online platforms for
knowledge sharing and capacity building. These new platforms enable First Gen
and other businesses to be more efficient, responsive, and dependable even in
extreme circumstances. Through online platforms, First Gen’s Create for the
Climate (CftC) program was able to develop virtual training and webinar series on
climate change that cover the fundamental concepts, international and national
policies, and climate change communication, which they called "What’s Heating
Up?". Because of this, First Gen was able to build up a community that continues
to be passionate about the environment and recognizes that public health
problems are also environmental problems and that both require a more proactive
and regenerative approach from everyone.

c. CSR Programs
i. Theater 1
1. Create for the Climate (CftC)
a. Objectives
Create for the Climate (CftC) seeks to engage and educate
the greater community in a bid to respond to the need to
decarbonize the economy and mitigate the effects of climate
change.
b. Mechanics
The Create for the Climate (CftC) is the environmental
flagship initiative of the First Gen’s Corporate Social
Responsibility (CSR) that includes conducting community-level
 information, education and communications workshops, along with
mentorship, development, and implementation of local Climate
Action Projects (CAPs) to address local climate and environmental
issues. One of the local projects implemented by First Gen is the
e-Planting project for indigent communities in Lobo, Batangas.
The project resulted in the planting of 1,204 seedlings. The funds
generated from the e-Planting activity also supplemented the
income of 55 members from the two recipient community
organizations in Lobo-the Olo-Olo Seaside Workers Association
and Samahan ng Maliliit na Mangingisda sa Pangangalaga ng
Kalikasan sa Brgy. Lagadlarin. The accumulated funds supported
them in their losses that were caused by the pandemic.
According to First Gen’s CEO and chairman, Federico
Lopez, aiming for sustainability is no longer enough; the goal
should be towards regeneration. Mitigating the effects of climate
change requires regenerative practices in reducing carbon
emissions. These practices require a shift to a regenerative mindset
and behavioral change (First Gen, 2020).
Since its inception in 2017, CftC has already reached 7,878
students and community members in host schools and communities
in Batangas City, Batangas; Pantabangan, Nueva Ecija; Manolo
Fortich, Bukidnon; and Jabonga, Agusan del Norte.
c. Budget: No data available
d. Benefits
With Create for the Climate (CftC), First Gen is able to
convey how passionate the Company is on raising awareness on
climate change. Through investing in and maintaining low carbon
assets, they are able to minimize their carbon footprint and help
mitigate climate change. Furthermore, the focus on
decarbonization can provide opportunities to build lasting
relationships with customers, suppliers, and other potential
partners. The development of cleaner technologies, improvement
of efficiency of inputs, and the increased viability of RE
development will help result in a cleaner portfolio, minimizing
negative environmental and health impacts on the community.
2. Educational Incentive Program (EIP)
a. Objectives
Educational Incentive Program (EIP) aims to help assure
the students’ completion of their primary education and to help
provide an opportunity for a better future.
b. Mechanics
First Gen consider education as one of the important areas
that are intended to help develop and improve the quality of life of
residents in host communities.
First Gen implemented an Educational Incentive Program
(EIP) for four adopted public elementary schools in the host
communities through First Gen Hydro Power Corporation
(FGHPC or FG Hydro). Through EIP, First Gen provides
educational assistance to Grade 6 students in Pantabangan, Nueva
Ecija's four public elementary schools. To make lessons more
engaging and comprehensible for EIP’s beneficiaries, teachers
receive training in a variety of teaching skills and methodologies
based on a Department of Education-approved training module. As
an integrated program, EIP also includes a feeding program aimed
at reducing malnutrition to 5% or less in the adopted schools.
Scholarship assistance to college and senior high school
students in Batangas are also being provided by First Gen in
collaboration with the Lopez Group Foundation and
Batangas-based universities such as the Batangas State University,
Lyceum of the Philippines - Batangas, and the University of
Batangas.
Based on First Gen’s integrated report in 2021, over 158
students were provided with scholarships, while 31,184 students
were assisted with learning materials and school supplies for
blended and modular learning.
c. Budget: No data available
d. Benefits
As First Gen recognizes the importance of education and its
power to produce future problem-solvers and change-makers, the
EIP program allows them to promote quality education at the same
time enhances First Gen’s reputation and social standing in the
local community. By providing assistance to the students in the
local communities, these students can in turn be potential future
employees of First Gen.
3. Solid Waste Management Program of Manolo Fortich
a. Objectives
The program aims to reduce the widespread use of
single-use plastics, mostly coming from product packaging in
Barangay Agusan Canyon in the Municipality of Manolo Fortich,
Bukidnon. With only one mini dump truck to collect the whole
barangay’s garbage, the collection of everyone’s household wastes
were not fully accommodated. Moreover, non-segregated trash,
which was refused collection, ended up littering the streets.
b. Mechanics
Through the Create for the Climate program, First Gen
invited the youth of Barangay Agusan Canyon to come up with
community projects that will address this problem. The
Sanguniang Kabataan’s (SK) already-existing plastic bottle
collection initiative was further improved with the introduction of
ecobricking, where plastic scraps are tightly packed in plastic
bottles that can be used as construction materials.
The members of the SK conducted information, education,
and communication workshops, teaching community members
how to create good-quality ecobricks and the importance of
reducing single-use plastics. With this, there was a noticeable
decrease in the plastic waste scattered in the barangay’s streets and
canals. Some youth members of the community even launched
clean-up drives to collect plastic scattered in the streets to use in
ecobricking.
The collected ecobricks were used to create zonal
landmarks in the community. Through the ecobricking initiative,
not only did the community’s solid waste management improve,
but the youth was able to work together for the environment.
c. Budget: No data available
d. Benefits
As a result of the project, First Gen is able to build a
relationship with the local community that has exposed their
capability to produce more eco-friendly materials. First Gen has
managed its wastes so that cross-contamination of non-hazardous
and hazardous wastes are prevented from the point of generation,
storage, transport, treatment, and disposal. Moreso, they have
prompted brand awareness to the community that subtly promotes
and strengthens their company image and reputation being in the
 forefront of combating climate change due to the nature of their
businesses.

4. Tulong Upang Lumawak Angking Yaman (TULAY) Program

a. Objectives
TULAY Program aims at helping qualified individuals
from the host community enhance their chances of finding
employment and improving their lot through skills training.
b. Mechanics
Qualified individuals are trained on employable skills, such
as welding (shielded metal arc, gas tungsten, arc and flux cored arc
welding); while other beneficiaries receive basic and advanced
cosmetology training under the Gand­a Mo, Hanapbuhay Ko
Project. FGen Puyo also provided skills training on Shielded Metal
Arc Welding and Electrical Installation and Maintenance to
qualified residents of its host communities including members of
the Mamanwa and Manobo tribes. The skills training is part of the
Company’s commitment to the Hydropower Service Contract with
the Department Of Energy. With this, First Gen was able to
provide technical and financial assistance to qualified individuals
to venture into self-employment projects.
c. Budget: No data available
d. Benefits
TULAY Program opens an opportunity for First Gen to
strengthen their social and relationship capital performance by
extending help to the unemployed sector of the community. They
have invested in community development and livelihood programs
that build and maintain positive relationships with their host
communities to achieve mutually beneficial partnerships as this is
what they endeavor to do.

ii. Theater 2
1. BINHI Program
a. Objectives
BINHI program aims to reforest degraded watersheds,
preserve and propagate threatened native tree species, and protect
biodiversity outside its work sites.
b. Mechanics
The Lopez Group and First Gen’s former Chairman
Emeritus Oscar M. Lopez have always wanted to help reforest the
 country, concerned and alarmed about the continued degradation of
the country’s forest (First Gen, 2020). BINHI was launched in
December 2008 through First Gen’s subsidiary, Energy
Development Corporation or EDC. BINHI is one of the country's
largest private-sector-led reforestation initiatives, using native trees
and high-value tree crops to protect and conserve the environment
not only in the EDC's area of operations but nationwide.
Under BINHI, the Company was able to establish and
restore more than 10,000 hectares of forests nationwide.
Furthermore, around 570 hectares of new indigenous forest tree
plantations were established in Bacman, Leyte, Negros Oriental,
Pantabangan, and Ilocos Norte in 2021.
The program is also a biodiversity restoration project and a
propagation movement for Philippine native tree species. The
Company's various nurseries produced more than 581,000 quality
seedlings of Philippine native tree species, which are being used
for reforestation and dispersed to partners to expand restored areas.
c. Budget: No data available
d. Benefits
BINHI improves not only First Gen’s reputation and social
standing but also EDC's operation since it protects the resources on
which the company depends. Since EDC is the largest producer of
geothermal energy, a healthy forest is essential for the underground
geothermal reservoir's survival. With this, the Company was able
to undertake holistic management and watersheds around its
project sites and continue to implement its forest protection
activities as part of its role as the deputized manager of the
watersheds within four geothermal reservations in Bacman, Negros
Oriental, Leyte, and Mt. Apo.

2. Occupational Safety and Health Management System (OSHMS)

a. Objectives
OSHMS implements Occupational Safety and Health
(OSH) programs that aim to ensure the safety of First Gen’s
employees.
b. Mechanics
First Gen makes sure that staff are able to perform tasks in
a safe manner, as refined through awareness, training, coaching,
and monitoring. The Occupational Safety and Health (OSH)
programs were created and implemented in accordance with the
 established occupational health hazards identification and risk
assessment procedure.
The Company provides a local health facility or clinic
through all its operating sites that are staffed by an occupational
health physician or nurse available during and after office hours.
OSH procedures, such as a permit-to-work system, incident
reporting, and emergency response plans, are also constantly
enforced by First Gen. COVID-19 protocols were implemented for
operations-critical employees to protect themselves from
COVID-19 infection, and shelter-in-place facilities were also
maintained. First Gen implemented OSH trainings based on the
identification of training needs, risk assessments based on roles,
DOLE mandates, and employee need awareness.
​Furthermore, in order to provide their employees with more
robust options for addressing their changing needs, First Gen
provided enhanced reward packages that included transportation
allowance, clothing allowance, group hospitalization insurance,
outpatient medical benefits, and COVID-19 vaccines.
c. Budget: No data available
d. Benefits
OSH programs implemented by First Gen help the
Company reduce costs associated with accidents and incidents.
Through this program, First Gen is able to express how they value
their employees’ health and safety, and as a result, employee
engagement, employee satisfaction, reputation, and business
efficiency improve. Furthermore, since this is intended for the
well-being of every employee, this program helps improve
employee’s quality of life. First Gen continued to make strides in
protecting their most important asset, their employees, through
initiatives covering both their physical and mental wellbeing.

3. Project Center of the Center (Project CoC)

a. Objectives
Project CoC aims to develop and conserve the Verde Island
Passage of the coastal waters of Batangas, Oriental Mindoro,
Occidental Mindoro, Marinduque and Romblon
b. Mechanics
First Gen, along with First Philippine Conservation, Inc.
and Conservation International, initiated this program in 2004. It
involves marine conservation work in partnership with local
 communities along the area. The Verde Island Passage hosts a
fragile ecosystem that is so significant that a marine scientist, Dr.
Kent Carpenter from the International Union for Conservation of
Nature, called it the “Center of the Center '' in marine shorefish
biodiversity. The conservation of Verde Island Passage has
attracted the support of a number of organizations and corporations
that are convinced with Verde Island Passage’s importance in the
preservation of the world’s marine biodiversity.
In 2010, First Gen through First Gas assumed the role of
direct implementer of Project CoC with focus on marine law
enforcement in partnership with the Provincial Government -
Environment and Natural Resources Office (PG-ENRO) of
Batangas. With its focus on marine law enforcement, First Gen
provides life and accident insurance, training, and support to the
Batangas Recognition Awards to Verde Outstanding Marine
Protected Areas (BRAVO-MPAS). The BRAVO-MPAs aim to
sustain the efforts of the communities and the LGUs in promoting
marine ecosystems.
With the strengthened marine law enforcement, the Bantay
Dagat groups of the 15 municipalities/ city of the Province of
Batangas are able to conduct reconnaissance drives that help
secure the MPAs against illegal fishers, while at the same time
keeping commercial fishers from the municipal waters off the three
coastal towns.
c. Budget: No data available
d. Benefits
Through the Bantay Dagat Network, First Gen helps in
protecting 43 declared MPAs with a total area of 2,072 hectares. It
shows that they continuously strive to provide positive impacts to
local communities by empowering them to engage in awareness
efforts in the sustainability of the water environment.
The result of the project arms the Company with the
necessary information in assessing the risks associated with its
dependence on water resources across varying scenarios such as
increased urbanization and climate change, among others. Since
water is a vital resource for First Gen, serving several purposes by
being the primary driver of power generation in their hydroelectric
plants with secondary operational use as a coolant and providing
the domestic water needs of all the assets, this program is essential
to First Gen's operation.
4. Creation of the National Catastrophe Resiliency Plan
a. Objectives
The plan focuses on mitigating the high risks against
typhoons and earthquakes.
b. Mechanics
Typhoon-proofing of six buildings have been completed
which have proved effective against the onslaught of the recent
Typhoon Odette. The programmed landslide mitigation projects
were also completed. The plan covered proactive measures for
expansion projects such as the application of the risk identification
and mitigation process to ensure that roads and pads are low risk
before construction activities begin. In their Pantabangan-Masiway
Hydro Complex, the priority for its 2021 resiliency plan is the
strengthening of its business continuity management to ensure zero
disruptions brought about by the pandemic. Aside from constantly
improving the emergency response team’s (ERT) competence and
responsiveness, First Gen implemented several system
improvements to ensure strict compliance with health and safety
protocols. The team in the Complex also took steps to address fire
and dam break risks. Fire Detection and Suppression Systems
(FDAS) and Fire Suppression Systems were installed to mitigate
the fire risk.
c. Budget: No data available
d. Benefits
As a result of these practices and efforts, First Gen
strengthens their resiliency. The geothermal plants’ risk in terms of
typhoons, geohazards, and forest fires are now at a medium level.
The Company has not made any insurance claim the past three
years due to these investments in the natural catastrophe program.
There is a chance that the insurer will lower the company's
premiums because they are aware of the company's dedication to
managing risks and disasters, resulting in reduced costs. Also,
through this program, First Gen will be able to continue its
operations amid disaster, which means it will continue to earn
profits. Through this program, First Gen not only protects its
operations but also the safety of its employees. Hence, employees'
quality of life is also improved. The improvement of ERT
measures proved effective when First Gen achieved zero business
disruption in the Complex in 2021. The Company also equipped
 the Complex with a seismograph to monitor and measure
earthquakes to mitigate the dam break risk. A Resiliency
Compliance Plan (RCP) is also in effect in their Agusan
runoff-river plant. In 2021, they completed the installation of an
Automatic Fire Suppression System in the plant’s control panel.

5. Retail Competition and Open Access (RCOA) and the Green Energy
Option Program (GEOP)
a. Objectives
The program aims to deliver resilient and compelling
energy solutions to our customers, allowing them to do more with
less energy while simultaneously lowering their carbon footprint.
b. Mechanics
This procedure allowed our customers with an average
monthly peak demand of at least 100kw to directly build a contract
with a renewable energy supplier and empower them to choose
their power supply. The Company offers a menu of customized
value-adding services to address individual customer needs. First
Gen can provide insights into the customers’ energy consumption
and usage through the Remote Energy Monitoring System Using
the REMS, the Company provides visibility into customers’ energy
consumption and allows real-time monitoring of critical energy
parameters such as voltage, current, power factor, frequency, etc.
c. Budget: No data available
d. Benefits
First Gen scored high satisfaction ratings from existing
customers during the customer satisfaction surveys in 2021,
highlighting the quality of service and the good relationship the
Company maintains with their customers as they strive to deliver
resilient and compelling energy solutions to our customers,
allowing them to do more with less energy while simultaneously
lowering their carbon footprint. Through this program, consumers
are able to utilize low carbon and environment-friendly energy
sources and reduce their dependence on imported energy. Phase III
of RCOA commenced in February 2021, extending retail market
eligibility from 750kW to 500kW. Phase III will add over 700 new
contestable customers with over 400MW in total demand. This is
on top of the over 2,000 contestable customers with over
4,000MW demand from Phases I and II. These opportunities create
 new markets for First Gen’s RE portfolio, increasing the spaces
where their assets can compete. Hence, this opportunity increased
the company’s profits.

4. Recommendations:
1. Editing
Further analysis and "editing" are needed to fully understand First Gen's
corporate social responsibility as it was categorized in the previous section of this
study. As mentioned, changes must be made to the different theaters if the
corporation is to improve its current CSR offerings. It is crucial to keep in mind
First Gen's four sustainability pillars, which are Stakeholder Management, CSR
Program Development and Management, Donations and Sponsorship, and
Employee Volunteerism, as well as its mission statement, which reads, "We
commit to forging collaborative pathways for a decarbonized and regenerative
future."

Theater 1
According to Rangan etal. (2012), in the first theater, it is important to
shape unconnected philanthropic efforts into something with a stronger strategic
focus. To increase their effectiveness and impact on the way the company
conducts business, it is crucial to align the initiatives in Theater 1 with the
company's values. In order to ensure that the organization's philanthropic efforts
in the first theater are strategic and cohesive, all programs must align with First
Gen’s mission of forging collaborative pathways for a decarbonized and
regenerative future.
The Create for the Climate (CftC) program is an environmental
initiative of First Gen that helps mitigate the effects of climate change through
conducting community-level information, education, and communication
workshops, along with mentorship, development, and implementation of local
Climate Action Projects (CAPs) to address local climate and environmental
issues. Therefore, the company should continue and improve this program
because it is aligned with the mission statement. Another environmental initiative
of First Gen that helps mitigate the effects of climate change is the Solid Waste
Management Program of Manolo Fortich. Given that this program is only
focused in one area, it would be more beneficial if First Gen would also
implement the solid waste management program in other local communities to
help reduce the widespread use of single-use plastics. Since this program is also in
line with the company's mission statement, it should also be maintained and
improved.
On the other hand, since the Educational Incentive Program (EIP) is an
integrated program that provides not only educational assistance but also feeding
programs and teacher training, we suggest that the company integrate providing
workshops on recycling and composting to students to help align this program
with the company’s mission. Lastly, for the TULAY program, since this program
provides skills training on shielded metal arc welding, electrical installation,
maintenance and advanced cosmetology, we advise that the company also include
skill development that will support the mission of the company, such as training in
sustainable or regenerative agriculture.

Theater 2
For Theater 2 initiatives, Rangan, Chase and Karim (2012) suggest that
there should be a quantitative approach, explicitly noting the effects of the
initiatives to the company’s bottom line, as well as its quantifiable impacts to
society.

Protection and Biodiversity Conservation Initiatives

BINHI is the nationwide greening program of First Gen’s renewable

energy subsidiary, EDC, which collaborates with the country’s top foresters,
botanists, and wildlife biologists with over 190 partner organizations across the 16
regions of the Philippines.
EDC’s forest protection and biodiversity conservation initiatives aim to
protect and maintain the integrity of habitats and ecosystems of the 127,608
hectares of forest lands within the geothermal reservations where the Company
operates. The Company established and restored forests in the following areas,
bringing the total area of forests restored under BINHI to more than 10,000
hectares nationwide, making it the largest private sector-led reforestation
initiative.
Moreover, the Biodiversity Conservation & Monitoring Program (BMCP)
was implemented by EDC in partnership with expert groups such as the
University of the Philippines Institute of Biology (UP-IB) and Silliman University
in Negros Oriental. The BCMP started its first phase in 2008 and entered its third
phase in 2021. EDC launched a series of IEC and advocacy campaigns also to
promote awareness of the flora and fauna conservation as part of its Flagship
Species Initiative (FSI). With this, we advise that the Company must open
opportunities for people to immerse themselves in the planting sites as at present
only limited access is available.

Annual Performance Feedback and Development Review

First Gen’s investment of USD1,992.31 on OSHMS and enforcement of

the OSH programs enabled to keep the safety, security, health, and well-being of
the employees, especially those who are working onsite premises with no
fatalities and lost time incidents. First Gen ensures compliance to safety and
health regulatory obligations and upholds its reputation of prioritizing employee
safety as indicated in their ESH Policy.
 The Occupational Safety and Health Management System (OSHMS)
covers all First Gen employees. Their operating assets have certifications to ISO
45001:2018 that are annually audited externally by the corporate office and
certifying bodies. The Occupational Safety and Health (OSH) programs were
developed and implemented based on the established occupational health (OH)
hazards identification and risk assessment procedure. The OSH targets were set
based on industry standards. All employees and workers are protected through the
guidance OSH Law (R.A. 11058), relevant rules and regulations, and internal
corporate policies and procedures. Lastly, the Company ensures the competency
of employees to carry out tasks in a safe manner as refined through awareness,
training, coaching, and monitoring. Given this, we advise that the Company must
keep an eye on the training needs identification, risk assessments based on roles,
mandates of DOLE, and employee need awareness to maintain relevance in the
implementation of OSH training.

Strengthening of Resiliency Plan

In 2018, First Gen submitted the Resiliency Compliance Plans (RCP) for
their natural gas plants to the DOE. The measures in the same RCP are still being
implemented and are monitored periodically to ensure the uninterrupted operation
of the power plants. Since their geothermal plants are in mountainous areas and
are at risk for several natural events, they put in place a Natural Catastrophe
Resiliency Plan. In 2021, the focus of this plan was the mitigation of high risks
against typhoons and earthquakes.
The activities that were performed to increase resilience to natural
catastrophes were: Quarterly updates of Risk Assessments, Implementation of
Forest Fire Protection Measures, Conducting a Light Detection and Ranging
(LiDAR) Survey and Updating of Landslide Susceptibility Maps, Re-deployment
of Emergency Restoration Structures, and Geohazard Assessments for both local
and international projects.
Hence, natural catastrophe programs that include weather monitoring,
geohazard assessment, alert system, sensors, vegetation restoration disaster
preparedness protocols, and watershed management programs must be in place
and continuously be improved.

Political and Regulatory Environment Support

The regulatory environment has progressed towards supporting cleaner

energy options. The goal of First Gen in pursuing a decarbonized and regenerative
future aligns with this ambition, which is supported by government policies like
the Coal Moratorium, Renewable Portfolio Standards, Green Energy Option
Program, and the Energy Efficiency Act. In line with this, the DOE has also put
forward the Philippine Energy Plan (PEP) towards 2040, which envisions a
transition away from coal towards increased use of natural gas and renewable
 energy–a clean energy transition. In addition, we advise to have developments
regarding sustainable financing, through the development of frameworks and
green financing instruments.

2. CSR programs in support of the SDGs

First Gen contributes to sustainable development through the outcomes of
their regeneration and decarbonization performances. They aligned their
performance with the Nationally Determined Numerical Targets to the SDGs
provided by the National Economic Development Authority (NEDA) to ensure
that their impacts align to the Philippines’ SDG targets. The following are First
Gen’s CSR programs that align with some of the SDGs.

SDG 13 – Climate Action

First Gen continues to build its capacity to study the effects of climate change
through the Create for the Climate (CftC) program. The Company has reached
out to 7,878 students and community members in host schools and communities
to promote awareness on climate change mitigation, adaptation, and impact
reduction through the Create for the Climate program. This program is aligned
with SDG 13, and should be continued, to engage and educate other communities.

SDG 14 – Life below Water

SDG 15 – Life on Land
First Gen has managed its wastes so that cross-contamination of non-hazardous
and hazardous wastes are prevented from the point of generation, storage,
transport, treatment, and disposal through the Solid Waste Management
Program of Manolo Fortich. This program is aligned with SDG 14 and 15, and
should be continued.

SDG 4 – Quality Education

First Gen recognizes the importance of education and its power to produce future
problem-solvers and change-makers, the Educational Incentive Program (EIP)
allows them to promote quality education for the young students of Nueva Ecija
and Batangas. As stated above we suggest that the company integrate providing
workshops on recycling and composting to students to help align this program
with the company’s mission. This program is aligned with SDG 4, and should be
continued.

SDG 1 – No Poverty
SDG 2 – Zero Hunger
SDG 8 – Decent Work and Economic Growth
First Gen provides technical and financial assistance to qualified individuals to
venture into self-employment projects through the Tulong Upang Lumawak
Angking Yaman (TULAY) Program. They have invested in community
development and livelihood programs that build and maintain positive
relationships with their host communities to achieve mutually beneficial
partnerships. As noted above, we advise that the company also include skill
development in sustainable or regenerative agriculture to support the mission of
the company. The company’s contributions to SDG 1 also benefit SDG 2 and
SDG 8, hence the program should be continued and improved.

SDG 13 – Climate Action

SDG 15 – Life on Land
First Gen was able to establish and restore more than 10,000 hectares of forests
nationwide through the BINHI program. Furthermore, around 570 hectares of
new indigenous forest tree plantations were established in Bacman, Leyte, Negros
Oriental, Pantabangan, and Ilocos Norte in 2021. We believe that this program
should be expanded to include more forests. The company’s contribution in
reforestation is in line with SDG 13 and SDG 15.

SDG 3 – Good Health and Well-Being

SDG 8 – Decent Work and Economic Growth
First Gen continued to make strides in protecting their most important asset, their
employees, through initiatives covering both their physical and mental wellbeing.
The Occupational Safety and Health (OSH) programs were created and
implemented in accordance with the established occupational health hazards
identification and risk assessment procedure. Through this program the company
is able to contribute to SDG 3 and SDG 8.

SDG 3 – Good Health and Well-Being

SDG 14 – Life below Water
First Gen helps in protecting 43 declared Marine protected areas (MPAs) with a
total area of 2,072 hectares. Project CoC develops and conserves the Verde
Island Passage of the coastal waters of Batangas, Oriental Mindoro, Occidental
Mindoro, Marinduque and Romblon. We advise that this program should be
expanded to include more coastal areas for greater impact. The company’s
contribution in conservation is in line with SDG 14 and since First Gen also
provides insurance to the Bantay Dagat group, this contribution is also in line with
SDG 3.

SDG 9 – Industry, Innovation and Infrastructure

The climate crisis has made weather-related natural catastrophes more extreme.
First Gen constantly takes measures to lessen the impact of these disruptions on
their business operations and stakeholders through the creation of the National
Catastrophe Resiliency Plan. First Gen is able to develop a resilient
infrastructure through this program, allowing the company to continue operating
and providing services to their customers in the aftermath of disasters. A
functioning and resilient infrastructure is the foundation of every successful
community, thus this program is in line with SDG 9 and should be maintained.
 SDG 12 – Responsible Consumption and Production
To efficiently cater to an increasing number of customers, First Gen will continue
to scale up their retail capabilities through the Retail Competition and Open
Access (RCOA) and the Green Energy Option Program (GEOP). This
procedure allowed their customers with an average monthly peak demand of at
least 100kw to directly build a contract with a renewable energy supplier and
empower them to choose their power supply. Through this, First Gen helps
encourage customers to adopt a more sustainable use of energy. Additionally, it
also promotes information and awareness for the use of sustainable energy,
therefore this program is in line with SDG 12 and should be maintained.

3. Development
The Corporate Social Responsibility (CSR) Policy guides First Gen’s CSR
department and Community Relations (ComRel) teams in developing CSR
programs. The Company upholds the CSR principles of the Lopez Group by
providing relevant, responsive, and sustainable programs that aim to improve our
stakeholders’ quality of life. Specifically, it stipulates the allocation of funds for
the CSR programs and the monitoring and evaluating the environmental and
social impacts of the Company.

i. Organizational chart of the CSR unit

Rangan et al. (2012) stated that, it is essential that companies

create a CSR unit whose main duty is to coordinate and integrate
initiatives across all three theaters, even if responsibility for the various
initiatives remains dispersed throughout the company. First Gen has a
dedicated department specifically to manage their CSR programs which
should be maintained to promote well managed CSR programs. The CSR
programs are led by the Office of the President, implemented by the CSR
department and Community Relations (ComRel) teams per subsidiary, and
complemented by employee volunteers.

ii. Major duties and responsibilities of CSR personnel

The CSR department helps maintain and implement the following:

a.) allocate funding for their CSR programs at par with prevailing industry
standards on CSR expenditures; b.) develop and implement relevant,
responsive, and sustainable CSR programs aligned with the needs of their
host communities and their business objectives; c.) monitor and evaluate
their environmental and social impact in the areas they operate; d.) review
and assess the effectivity of their CSR programs; and e.) communicate and
engage with their stakeholders, which include their employees,
communities, regulatory agencies, investors, and their shareholders.
The Community Relations (ComRel) team assists the company in
continuously maintaining close partnerships with their host cities and
municipalities nationally. They also collaborated closely with national
government partners and forged strategic partnerships with
non-government organizations, academic institutions, and other private
sector partners in implementing their CSR programs.

iii. Management support

Strong leadership and support for CSR initiatives at the highest

levels of executive management are essential. This is consistently cited by
CSR professionals as the most important factor in enabling CSR
initiatives, and it holds true across industries, geographic locales, and
regions, as well as programs in all three domains. (Rangan et al., 2012).
Since programs in the first theater won't increase company revenue,
management support is particularly important in the CSR initiatives'
budget approval.
REFERENCES:

First Gen. (2020). Corporate Profile.

https://www.firstgen.com.ph/our-company/corporate-profile

First Gen. (2020). Corporate Social Responsibility.

https://www.firstgen.com.ph/corporate-governance/csr

First Gen. (2020). First Gen Integrated Report 2020.

https://2020integratedreport.firstgen.com.ph/

First Gen. (2021). First Gen Integrated Report 2021.

https://2021integratedreport.firstgen.com.ph/

INQUIRER.net. (2020, September 7). Powering up the Philippines: How first gen is
paving the way for clean energy.
https://business.inquirer.net/306077/powering-up-the-philippines-how-first-gen
-is-paving-the-way-for-clean-energy

Rangan, K., Chase, L. A., & Karim, S. (2012, April 5). Why Every Company Needs a
CSR Strategy and How to Build It. Harvard Business School Working Paper
No. 12-088.