First Gen aims to lead the country’s energy transition by continuing the growth of its portfolio with decarbonization in mind. In line with this, we establish our growth ambitions in line with our Decarbonization Road Map, which has three main phases towards 2030:
In addition to our ambitions in decarbonization, we are also aiming to improve our impact to our surrounding environment, communities, and our internal stakeholder. Therefore, our Regenerative Road Map focuses on our ability to elevate all three of our ESG pillars—environment, social, and governance—with the ultimate goal of uplifting all our stakeholders as guided by the pentad framework:
Across these pillars, First Gen’s Regenerative Road Map aims to contribute to certain Key Focus Areas of our ESG Strategy:
Our regenerative journey is a transition from a (i) Conventional System, which meets minimum standards, to our current (ii) Green and Sustainable System, which improves carbon footprints, and ultimately to a (iii) Regenerative System, which co-evolves with stakeholders.
We already consider First Gen as “Green and Sustainable” due to our low-carbon portfolio and ongoing efforts in energy efficiency, waste management, digitalization, and clean technology exploration. Our ultimate goal is to advance towards a regenerative system by empowering stakeholders and building on our current activities and metrics.
We are in the process of defining what regenerative means for our operations as guided by the FPH ESG Pillars.
Adopted from B. Reed (2007). Shifting from sustainability to regeneration. Retrieved from https://www.tandfonline.com/doi/full/10.1080/09613210701475753
First Gen’s strategic objectives guide our long-term strategies and draw from our Mission of:
To forge collaborative pathways towards a decarbonized and regenerative future.
Furthermore, our strategic position aims to integrate Decarbonization and Regenerative Road Maps into how we deliver value to all our stakeholders.
We continuously refine our objectives through various systems and methods, including our Strategy and Synergies Planning activities, Risk Management, and other related strategic planning processes. These exercises transform our objectives into strategies that guide our day-to-day operations. Through these, the Company evaluates a holistic view of our external environment (e.g., market trends, opportunities, risks, and community impacts) and internal context (e.g., organization needs, budget, and capabilities), towards refining our strategic position. These planning processes are also aligned with the Company’s budgeting procedures to ensure consistency between strategy and resources, as well as our risk management process that assesses various scenarios that we must mitigate and adapt to. Finally, all these processes involve key stakeholders, including senior management, and consider the inputs of various groups and departments who, in turn, interact with various other stakeholders outside the Company.
Our long-term vision is to become a holistic decarbonized energy provider that country’s energy transition towards by delivering value to our customers and stakeholders. In line with this ambition, we look forward to the evolution of First Gen into a customer-centric leader in decarbonized energy solutions. With this in mind, our strategic objectives are meant to enable the Company to focus on Growth, Decarbonization, Enabling the Organization, and Total Stakeholder Value.
According to the Department of Energy’s Philippine Energy Plan (PEP), national demand is projected to increase in the following decades, to power economic growth. To meet this demand, the PEP also provides projections for nationwide power requirements, highlighting the need to significantly increase the country’s gas and renewable energy supply. Our goal of growing to 13GW is generally in line with these projections, as we aim to support the country’s energy needs and lead the clean energy transition. As we grow to 13GW, we also aim to increase the share of renewables in our portfolio—with the ambition of making renewables the majority of our total capacity.
Our 13GW growth ambition will allow us to increase the Terrawatt hours (TWh) generated by our gas and renewable portfolio by a similar proportion to the 2.5 times growth in Philippine gas and RE TWh projected by the PEP by 2030. Driven by our mission, First Gen aims to provide customers with a complementary, diverse, and resilient clean energy portfolio. To achieve this, the Company would need to expand both our kilowatthour (kWh) and beyond-kWh offerings while maintaining reliable operations.
As such, our growth objective is both a strategic imperative for the business, and our Company’s way of fulfilling the country’s need for additional clean energy supply.
The Regenerative Partner Goal is meant to create and capture markets for our current and future portfolio, in line with our goals. As explained in Our External Environment section, the industry’s transition into becoming more retail- and customer-centric means that the markets will change drastically. While traditionally being centered on a few customers, the power market is now built of thousands of customers—a number that will expand as regulations evolve, as well.
Moreover, the changing market means that customers will have more power to choose and influence on where power is sourced, which, in turn, gives them more opportunities to support and spur the development of decarbonized power and regenerative energy solutions.
As such, this strategic objective guides our ambition to not only serve thousands of customers, but also be able to create lasting relationships that turn our customers into partners in our regenerative journey. This goal is critical to our mission of pursuing a decarbonized and regenerative future.
This ambition increases the significance of our commitment to decarbonization, as we continue our efforts to improve our ability to provide our partners with decarbonized energy solutions. The shift to retail also opens up opportunities to provide customers with reliable service by boosting our retail abilities and developing value beyond the kWh. Through these, we also aim to be a trusted advisor that enables our customers’ decarbonization goals.
As we pursue unprecedented growth and evolve our models to cater to thousands of regenerative partners, enhancing our organization becomes more paramount. Strengthening organizational resilience and our commitment to our Mission and Purpose are key to making First Gen ready to face the challenges and shifts that will happen to the energy industry. By enabling the organization to better achieve our goals, First Gen is able to create more value while simultaneously fulfilling our sustainability goals for all of our capitals.
Careful examination and updating of our strategies and plans help First Gen anticipate the aforementioned challenges while also helping our stakeholders have more confidence that we can deliver on our commitments. An enabled organization allows First Gen to develop more contingencies and energy security solutions for our customers, better react to market shifts, and set up our capability to capitalize on future opportunities.
Our Mission and Purpose place a responsibility on the Company to keep pursuing all avenues that lead to a decarbonized and regenerative future. However, First Gen is also keenly aware that it is concrete action and partnerships with our stakeholders that make that journey possible. After all, we are aware that as the organization grows and evolves, we will also have an increasing impact on our stakeholders.
With actions like the proper investment of our assets, the improvement of our facilities, and the continuation of our ESG efforts, the Company continues to move towards our goal of becoming a clean energy provider. Working closely with our stakeholders provides us with the opportunity to advance our Mission and Purpose, while also helping them achieve sustainability targets of their own. This goal directs our ambition to pursue our Decarbonization and Regenerative Journeys, as we deliver on our four ESG Key Focus Areas.
By positioning the Company in this manner, First Gen can confidently move towards our clean energy goals with the full support of our stakeholders. The Company commits to providing value to our stakeholders without compromising our own values and our ability to deliver on our customers’ expectations.
| STRATEGIC OBJECTIVE |
TARGET HORIZON |
TARGET STAKEHOLDERS |
AFFECTED CAPITALS | RESOURCE ALLOCATION PLANS |
INITIATIVES | TARGET OUTCOMES |
IMPACT ON STRATEGIC GOAL |
|---|---|---|---|---|---|---|---|
| GROW OUR PORTFOLIO TO 13GW |
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The continuation of our growth not only needs additional financial support but also protects the returns on their investments.
There is a need to efficiently and effectively collaborate with partners to ensure the timely completion of projects.
The assets that are being developed are going to contribute to our efforts to expand and maintain our clean energy portfolio in support of the country’s energy transition.
The additional supply will help cover the high energy demand in the country.
As we expand, we also consider our impacts on the surrounding communities and aim to foster good community relations. |
Added technical expertise for project development
More funding for new facilities Better tools, equipment, and technology
Preservation of resources and the environment of our facilities
Good relations and support from the surrounding communities |
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Provide the country with much needed clean energy supply by pursuing growth rapidly and with high quality
Continued development and operation of the Batangas LNG Terminal to sustain current and potential gas supply, completing projects under development, pre- development works for long- term projects, executing critical work flows to maintain existing plants (e.g. well drilling programs, plant upgrades, etc.) and RE projects
Growth through higher efficiency gas turbines and expansion of our current RE portfolio
Grow with an increased share of renewable energy |
These milestones are the basis for how we are mapping our projects for the next few years and beyond, and how we might grow our portfolio to our goal of 13GW. First Gen makes sure that all of our investments in growth continue to support our ambition of leading the transition to a decarbonized and regenerative future. |
| DECARBONIZE THROUGH SECURING REGENERATIVE PARTNERS |
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More customers subscribing to our portfolio will support our clean energy growth and reduce their own carbon footprints.
Our portfolio can help customers with energy reliability and will contribute to advancing their own decarbonization goals. |
Additional manpower for market research, sales, and customer support
More funding for initiatives and manpower
Networking and exposure to customers and partners |
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Deliver value to thousands of potential partners and make them partners for decarbonization
Secure off-take for assets available to the market
Secure thousands of regenerative partners; expand the portfolio of energy solutions being offered to customers
Cater to a more retail-oriented market, increasing customers supplied with clean energy solutions |
These ambitious milestones provide a clearer picture of how we can equip the organization with the needed resources to cater to an evolving market that will be more customer- centric and diverse. With this understanding of the market, this outcome will hopefully expand our reach in the retail market and increase the number of our regenerative partners. First Gen’s pursuit of additional partnerships also helps it create a better foundation to become a more influential figure in steering the industry towards clean energy solutions. |
| ENABLE THE ORGANIZATION |
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Enabling the organization to use our strategy will empower us to deliver on our goals more effectively.
The organization will be able to direct our efforts toward our purpose of operating our resources with a regenerative mindset. This will strengthen and enrich communities and encourage biodiversity in the ecosystems in which we are all embedded.
First Gen will be able to grow while keeping in mind our decarbonization goals and regenerative purpose. |
More strategic guidance and support for our initiatives
Added funding for strategic initiatives |
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Efficiently scaled organization with enhanced employee engagement Executing and embedding our capability system within the Company, scaling our retail organization Expanding programs and culture to support the mission, purpose, and capability driven strategy; scaling up organization to support our strategic goals for growth, decarbonization, and stakeholder value |
These milestones will ensure that the organization moves as one in pursuit of our goals. This alignment will stabilize the Company ’ s growth, allowing First Gen to be better- equipped to respond to the challenges facing the energy industry. |
| CREATE TOTAL STAKEHOLDER VALUE |
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Creating stakeholder value will also protect asset value, which will protect their investment by extending the useful life of assets and reducing the risk posed by the environment. Moreover, it will increase business value due to increasing relevance of ESG to the market.
Collaboration across the entire supply chain and with our partners is key to maintaining our decarbonization trajectory.
Customers will benefit from the continued reliability of our assets. Moreover, having assets that create total stakeholder value will increase the value of the products offered to customers as well— supporting, for instance, their own Scope 2 or 3 emission targets.
The reliability of our assets will help support the further development of RE. Our contribution to lowering our carbon, environmental, and social footprint will also benefit the planet.
Our focus on total stakeholder value includes our impact on our host communities. Through this goal, we aim to support their improved climate resilience, education, and livelihood. |
Additional technical expertise for all our stakeholders and shareholders
More funding for upgrades and maintenance of facilities and equipment Acquisition and development of tools, equipment, and technology |
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Ensure that Creating Stakeholder Value is integrated into our overall strategy Determine key metrics and work programs for Key Focus Areas Sustain low carbon footprint and reliability of power assets |
These milestones will ensure that our overall strategy, business, and operating model are aligned with our Mission and Purpose. It also assures our stakeholders that First Gen continues to move towards our objectives and recognizes their support in helping make that journey possible. |
As First Gen grows, we will continue developing a culture that puts the customer first in our journey to decarbonization, developing new services to best deliver on our customers’ needs and accelerate the clean energy transition, without sacrificing energy security.
To do this, we are continuously fostering our talents, further developing our capabilities, and improving our processes. We also aim to develop a culture of learning that empowers employees to explore regenerative businesses that we can potentially adopt, as we look to enhance our value offerings to the market.
Furthermore, we are aware that in pursuit of these goals, First Gen will need to be equipped with the skills and processes to execute efficiently and at scale. It is in recognition of these requirements that First Gen has identified its capabilities, which we aim to enhance as we pursue our goals and ambitions.
1. SOLUTIONS-BASED CUSTOMER ENGAGEMENT:
We seek to create more intimate relationships with our customers as we provide them with various products and decarbonizing energy solutions. The products and services we develop will be grounded in a deep understanding of our partners’ needs as we increase our touchpoints with them to gain privileged customer insights.
2. CLEAN ENERGY ADVOCACY LEADERSHIP:
We aim to create an environment that catalyzes decarbonization. We will do this by collaborating with partners to advance regenerative principles and increase support for the clean energy transition.
3. DYNAMIC ADAPTATION OF REGENERATIVE BUSINESSES:
We will localize and scale emerging business models that support decarbonization. We leverage our ability to learn, experiment, and replicate successful net-zero business models to make more products available to the market.
4. AGILE MULTI-PROJECT DEVELOPMENT:
We seek to deliver numerous projects simultaneously to deliver on our growth objective. This capability is founded on cohesive work from planning to execution and a transparent and collaborative work environment. This will allow us to help ensure timely completion of work to supply a rapidly growing industry.
5. RESILIENT ASSET MANAGEMENT:
We will ensure that our portfolio thrives in a constantly changing business, regulatory, and climate landscape. We shall closely monitor and mitigate potential risks across technological, commercial, legal, and environmental aspects while capitalizing on opportunities that increase the value of our assets.
The Company’s capabilities are critical to achieving our strategic objectives and guiding the organization’s various investments, activities, and partnerships towards our Mission and Purpose. Furthermore, our strategic positioning allows us to further capitalize on the opportunities, mitigate risks, and capitalize on our outlook, in order to pursue our ultimate goal of a decarbonized and regenerative future.
By enhancing our capabilities, pursuing our strategic objectives, and working closely with our shareholders, stakeholders, and employees, we bring the dream of a sustainable future for the local energy sector ever closer.