First Gen commits to creating a symbiotic, mutually beneficial relationship with nature and society that provides benefits beyond the fence. It is also a commitment to become a regenerative force that elevates and transforms First Gen’s key relationships—our customers, employees, suppliers, contractors, communities, investors, and the environment.

Key to cultivating lasting relationships with these stakeholders is identifying and addressing their concerns. First Gen utilizes various engagement channels for stakeholders to communicate their subjects of interest or concern.

First Gen maintains regular communications with our various stakeholders based on our annual stakeholder engagement plan. This also provides an avenue for information sharing and updates on both business operations and CSR initiatives.

All First Gen personnel engaged in communicating with our stakeholders uphold transparency in providing factual and accurate information, fostering informed decision-making and sound recommendations.

Envisioning a Regenerative Future with Customers

First Gen continues to supply renewable energy to retail customers under the Retail Competition Open Access (RCOA) and Green Energy Option Program (GEOP). Through Pi Energy Inc., the Company also offers innovative energy solutions to its customers to reduce energy consumption, carbon emissions, and power costs. These solutions include:

• Remote Energy Monitoring System: Monitors the energy parameters of a facility, such as fluctuations, consumption, and power quality
• Energy Audits: Assesses and identifies energy efficiency measures
• Solar Rooftop PV System: Generates power for the customers while lowering their electric bill

Besides the retail segment, the Company also started offering the distribution utilities and electric cooperative ground mount solar panels, giving customers more access to additional renewable energy sources.

In 2023, the following activities were conducted to share our mission to our consumers:

• 2 PowerEd Learning Sessions which focused on topics such as understanding investment on solar panels and introduction to energy efficiency
• 8 Plant Tours - to further increase their understanding and appreciation of clean and renewable energy
• Participation in 27 tradeshows and roadshows - avenues for potential customers to understand our portfolio, products and solutions to their energy needs

To obtain feedback on the Company’s services, a customer satisfaction survey is conducted annually. In 2023, First Gen received a rating of “Very Satisfactory” as a Retail Electricity Supplier, which serves as a testament to the quality of service we provide to our customers. The rating scale used ranged from “Not Satisfied at All (1)” to “Very Satisfied (4).” Some comments we received from consumers include appreciation for the timeliness of the monthly billings as well as commendation for the ease of coordination with the marketing officers.

There was a reduction in the number of contestable customers and distribution utilities/electric cooperatives in 2023 compared to the previous year. Nonetheless, the Company was able to increase its contract rates in 2023 which resulted in some customers opting out of renewing their contracts with the Company. In addition, there were several Emergency Power Supply Agreements which usually have contract periods of one year, that expired in 2023. The resulting freed-up capacity from the non-renewing customers was reallocated to other current contestable customers who expanded their contracted demand, as well as for expanding our presence in the GEOP market, hence the observed increase in GEOP end users.

Strengthening Community Resilience

First Gen aims to fulfill the Company’s mission for a decarbonized future by educating our stakeholders about environmental conservation and climate awareness.

LOCAL CLIMATE CHANGE ACTION PLAN (LCCAP) WORKSHOPS FOR LGUS IN PARTNERSHIP WITH THE CLIMATE CHANGE COMMISSION - CLIMATE AND DISASTER RISK ASSESSMENT (CDRA) AND PRE-GHG WORKSHOP

The Climate Change Commission (CCC) and First Gen Corporation have agreed to work together to help communities and local government units (LGUs) prepare climate change adaptation and mitigation plans and strategies. This was achieved through conduct of various workshops and seminars. A list of the seminars conducted in 2023 is presented in the succeeding table.

Enabling Communities through Education Opportunities

SIKAT PROGRAM AND FIRST GEN SCHOLARSHIPS

SIKAT Program is EDC’s education arm to provide holistic support to marginalized but deserving youth from EDC’s host communities nationwide. In 2023, EDC invested PHP30 million in its SIKAT program, covering the provision of scholarship grants, mentoring support, scholars’ engagement initiatives, career placement assistance after graduation, and support for Mt. Apo Foundation Inc. (MAFI) and Keitech Foundation. The SIKAT Program gives importance to people’s interests, innate abilities, and capacities and supports scholarships regardless of track, whether academic, technical-vocational, or talent and skill-based.

For the academic year 2023-2024, EDC provided financial assistance and mentoring support to 132 scholars at the University of the Philippines and other local universities and colleges. In 2023, the program produced 39 graduates across all their geothermal sites, as well as 11 graduates from the Obo Manobo indigenous community in Mindanao. Among them, five graduated magna cum laude, while 13 graduated cum laude.

EDC also continues to support the 70 scholars of the BGI Tanawon Geothermal Project College Scholarship Program that was launched last 2022 in partnership with the City Government of Sorsogon. The project aims to provide semestral stipends to its scholars until college completion. All the 64 barangays of the city have a representative scholar in the said program. On top of these, EDC supports 349 beneficiaries for technical-vocational training in Negros Island, in partnership with LGU and Technical Education And Skills Development Authority (TESDA).

First Gen, on the other hand, has supported five college scholars for academic year 2022-2023 and 12 college scholars, 17 Grade 11 scholars, and 12 Grade 12 scholars for the academic year 2023-2024.

In summary, a total of 618 scholars were supported across the various host communities and project sites in 2023, making quality tertiary education accessible even to the most disadvantaged youth in the community.

TEACHER’S TRAINING – LEEP

First Gen, through its environmental flagship program Create for the Climate, continues to strive to promote environmental stewardship in schools. From July to August 2023, First Gen, in collaboration with Knowledge Channel Foundation, Inc. (KCFI), rolled out five batches of teacher training and provided 18 Knowledge Channel Portable Media Libraries (KCPML) to the schools surrounding its areas of operations: Batangas, Nueva Ecija, Bukidnon, Agusan del Norte, and Camarines Sur.

The teacher training—entitled Learning Effectively through Enhanced and Evidence Based Pedagogies in Science (LEEP-Science)—was a three-day in-person activity that covered 21st-century pedagogies, concepts in environmental science, and how educators can integrate strategies in a classroom setting. A combined total of 170 teachers and school heads from First Gen’s host schools attended the LEEP-Science program.

The KCPMLs contain over 1,500 localized and contextualized multimedia learning resources produced by KCFI and are aligned with the curriculum of the Department of Education. Teachers can use a variety of fun and rich learning materials, such as video lessons, e-learning modules, session guides, games, and other similar tools for their students’ learning and development.

After the implementation of trainings and the KCPML donation turnover, First Gen (with the assistance of the teachers) will conduct information, education, and communication campaigns in the schools to expand the knowledge of the students about climate change. All of these efforts are intended to promote environmental stewardship among the young people in the communities as we work toward a regenerative future for all.

Promoting Community Health and Safety

PRUBABIES

“First Gen Corporation and Pru Life UK join forces to combat climate- related health impacts.”

First Gen and Pru Life UK proudly announced a groundbreaking collaboration aimed at addressing health impacts exacerbated by our changing climate. On September 12, 2023, Pru Life UK provided free insurance coverage to 130 babies from the four assisted barangays of First Gen in Batangas City, namely Barangay Bolbok, Sta. Rita Aplaya, Sta. Rita Karsada, and Sta. Clara.

The cornerstone of this collaboration is the distribution of PRUBabies, an insurance program that focuses on society’s most vulnerable members. As the impacts of climate change intensify, health concerns such as dengue, measles, malaria, and typhoid become even more prevalent. This insurance coverage will provide protection against these four common diseases, ensuring that the youngest members of our communities receive the care they need. Beyond the invaluable insurance coverage, community members participating in the program also received valuable education on financial literacy and a deeper understanding of the science behind climate change.

PROVISION OF WATER AND LIGHT

Key utilities such as water systems and community lighting were provided by First Gen to the communities of Garchitorena and Caramoan, Camarines Sur.The Company donated an electric water pump which was more reliable than the existing diesel pump. For the community lighting, street lights were installed in the pathways towards the barangay. These were conducted in partnership with the local barangay.

Two barangays and 250 individuals benefited from the water system while three barangays, 150 households, and 220 individuals benefited from the installed lighting facilities.

STRENGTHENING OF LOCAL HEALTH CENTERS AND PROGRAMS

Through sponsorships of First Gen and its subsidiaries:

• 4,236 patients were provided with access to free medical services through 70 medical missions
• 2,241 individuals benefited from the 290 community clinics conducted
• 7 municipalities and 27 institutions were provided with health assistance and 14 barangays were provided with access to healthcare
• 14 communities were supported for Barangay Health Worker (BHW) training

Supporting Community Development

BANTAY DAGAT SUPPORT IN LOBO

The Center of Center Project began in 2004, along with the First Philippine Conservation, Inc. and Conservation International, which aimed to protect and conserve the Verde Island Passage (VIP) in partnership with local communities, local government units (LGUs), and other stakeholders in the area. Part of the program is the provision of operational support to the bantay dagat in Lobo, Batangas. The program, including the operational support, concluded in 2023. The members of the Bantay Dagat expressed their thanks and appreciation to First Gen for the years of support in their operations.

WATTS NEXT?

“Empowering Lopez Group employees to regenerate island life”

In its ongoing commitment to corporate social responsibility, the FP Island Energy Corporation (FPIEC), together with First Gen and FPH, launched “Watts Next? Regenerative Solutions for Island Life” on October 24, 2023 to the employees of the Lopez Group. This ideation program seeks project proposals characterized by their climate responsiveness, impactfulness, and innovativeness, aimed at fostering regenerative growth in the island communities of Caramoan and Garchitorena in Camarines Sur.

The Watts Next program forged strategic alliances with key partners for progress, including the New Energy Nexus, DOST-PCAARRD, and esteemed experts from the Lopez Group, spanning FPH, First Gen, and EDC. These partners extended tailor-fitted consultations and learning sessions to nurture teams, uncover latent potentials, and solidify project proposals.

Screened proposals underwent a meticulous evaluation process and were then presented in a plenary session attended by esteemed leaders in strategy and business development, innovation, sustainability, and climate science. This distinguished panel deliberated to identify the winners of the program—individuals and teams not merely showcasing potential but demonstrating a profound commitment to advancing regenerative solutions for island life.

A total of six ideas made it through the finals of which three have been chosen to progress towards the next stage of development which include community visit and immersion, resource planning and prototyping.

SOCIAL ENTERPRISE DEVELOPMENT

EDC focuses on creating sustainable, long-term impacts, including addressing the root causes of social issues, promoting environmental stewardship, and fostering positive social change. It supports community organizations to develop and implement social enterprises and livelihood projects towards its long- term goal of fostering self-reliant communities. Many of these community organizations are farmers’ associations organized by EDC for the BINHI program and have since transitioned into people’s organizations and local cooperatives operating a myriad of livelihood initiatives. In 2023, EDC-supported community organizations generated around PHP11 million in net revenues from livelihood projects and community contracts. Presently, EDC is supporting three long-term social enterprise projects that collectively benefit an estimated 2,000 households across the project sites.

In Leyte, the EDC-assisted Tongonan Farmers Association inaugurated its Coffee and Cacao Processing Facility successfully, with the support of the Department of Science and Technology Region VIII, the Barangay of Tongonan, and the City Government of Ormoc.

Community organizations also benefited from business contracts awarded to them by EDC’s operations and projects. These contracts include BINHI contracts for forest restoration, forest protection, nursery management, and seedling production; revegetation of grass fire-prone areas; eco-bricks production; reinstatement maintenance; and grass-cutting contracts in EDC’s facilities.

Other social enterprises currently being supported include the Handicra Scaling-Up Project with the Balili-Cambucad-Tubigon-Malabo Farmers Association (BALCAMTUMA) in Brgy. Malabo, Valencia, Negros Oriental; Cacao Production for Mt. Talinis Dark Chocolate implemented with Mt. Talinis Cacao Farmers Association, also in Negros Oriental; and Kamias Prunes Production with local community organizations in Burgos, Ilocos Norte.

IP UPLIFTMENT INITIATIVES

EDC endeavors to preserve the traditional culture and traditions of the indigenous peoples, which make up 80 percent of the local community within its area of operations. In October 2023, the second School of Indigenous Knowledge (established in partnership with EDC) was inaugurated in Barangay Kisante, Makilala, Cotabato together with the National Commission on Indigenous Peoples (NCIP), IP leaders from MADADMA, community members, and local barangay officials.

MAMAFASWAS WEAVERS

“From Planting to Weaving: MAMAFASWAS Weavers Explore Abaca Weaving”

Around 27 members of the First Gen-supported indigenous community group Maraiging Mamanwas Farmers Skilled Workers Association (MAMAFASWAS) recently underwent training. They attended the “Introduction to Abaca Weaving” module in preparation for the formal training that will take place in the latter part of the year.

The trainer, who has roots in Agusan del Norte and hails from the same tribe, happily provided the training while instilling inspiration, diligence, and hard work in the group. The participants were guided through the process of creating a line of handicraft wearables: a backpack and a handbag. These were made of abaca, sourced from the FGen Puyo-supported abaca plantation, a security and community livelihood initiative that started in 2018.

BINHI

“First Gen Batangas adopts a thousand-hectare land for its greening legacy.”

In line with our mission and in support of 2023’s theme of the International Day for Biological Diversity (From Agreement to Action: Build Back Biodiversity) FGCEC and FG Hydro collaborated on the implementation of “BINHI: A Greening Legacy Program” in Pantabangan, Nueva Ecija. A ceremonial signing of a memorandum of agreement took place on May 9, 2023 at Rockwell Business Center in Pasig City and at the Biodiversity Center in Pantabangan to mark the tripartite partnership with four farmers associations: the Villanueva Farmers’ Association (VIFA), the Maluyon Indigenous Christian Farmers Association (MICFA), the Cadaclan Farmers’ Association (CAFA), and the Liberty Fisherman and Farmers Association (LFFA).

FGPC, FGP Corp., FNPC, and PMPC will adopt a total of 1,209-hectares established in the Pantabangan-Carranglan Watershed Forest Reserve, as the four Batangas-based subsidiaries are advocates not only of environmental preservation and enhancement but also of empowering communities through livelihood opportunities.

In March 2023, EDC BINHI, together with the local DENR office, organized Deputation Training for Wildlife Enforcement Officers to promote environmental conservation and celebrate World Wildlife Day. The initiative underscores the Company’s commitment to raising awareness and enhancing the capabilities of key stakeholders in protecting Philippine flora and fauna. The Kanlaon Green Brigade-Mailum from the Nangyan and Ligawon areas in Brgy. Mailum, Bago City participated in the said training. The deliberate forest patrols and heightened patrol visibility implemented within the geothermal reservations play a crucial role in averting forest fires, leading to a commendable outcome of zero reported incidents in 2023.

Disaster Response and Relief

DISASTER RESPONSE AND RESILIENCY BUILDING

EDC strengthens its commitment to support Ormoc City’s climate resilience program through the deployment of a robust and easy-to-operate water filtration system in the city in partnership with water solutions provider Power 4 All. Capable of producing up to 3,000 liters per hour of clean, potable water, the water filtration system addresses a critical need and serves as a proactive solution to address the recurring challenges posed by floods, landslides, and deforestation. It represents a significant step toward ensuring the well-being and survival of the community, especially during times of crisis.

In observance of the National Disaster Resilience Month in July, EDC Burgos and the Burgos Disaster Risk Reduction and Management Office collaborated in organizing the Rope Rescue and Flood Rescue Training for Burgos DRRMO on July 18-21, 2023, with EDC’s Safety and Emergency Management Department (SEMD) as trainers. The training will help build the knowledge and skills of the participants in rope rescue and apply rescue techniques in flood and swift water incidents.

EDC also provided support to those affected by various calamities in 2023:

June 2023 - Increase of Mayon Volcano status to Alert Level 3
EDC BacMan provided a total of 1,000 pieces of 20-liter water containers with refills and 1,000 food packs for distribution to internally displaced persons (IDPs) or evacuees.

July 2023 - Typhoon Egay
EDC Burgos provided assistance in rebuilding production of 24 salt-makers by providing three bags of cement and one metal drum each for the construction of their “pugon” (salt pan).

August 2023 - Typhoon Goring
EDC Negros turned over 40 foodpacks to affected households in Barangay Minoyan in Negros Occidental.

FOSTERING WORKPLACE SAFETY AND COLLABORATING WITH VENDORS AND CONTRACTORS

First Gen created value to the local economy primarily on the spent on goods and services from the local businesses. The PHP85.72 billion spent for the purchases from local suppliers and contractors in 2023 constituted 86.08 percent of the Company’s total expenses.

First Gen also places paramount emphasis on providing a safe and healthy working environment for all its personnel. With a steadfast commitment to ensuring the safety and health of all workers, including contractors and subcontractors, First Gen continuously implements Occupational Safety and Health (OSH) programs aimed at mitigating risks and preventing serious injuries, illnesses, and fatalities.

First Gen sustains the implementation of its Contractor Environment, Safety, Health Management (CESHM) System for the management of risks related to contractor activities. Prior to engagement, contractor due diligence on its regulatory compliance status is conducted. This also ensures alignment with First Gen’s Environment, Safety and Health (ESH) requirements during execution of the project.

To further promote the safety culture, various training sessions were conducted to our Contractors which are listed below.