EDC's efforts aim to improve the country's energy sector by harnessing the full potential of clean, natural resources. Our geothermal energy portfolio is our main asset, in addition to our wind power farm —the largest in the Philippines and combined with our solar power farm—and the FG Hydropower plant in Nueva Ecija.

EDC has remained a trusted industry expert in generating power from geothermal resources for over four decades, providing a stable source of baseload renewable energy known as Geo 24/7.

As the country's leading renewable energy company, we prioritize consistently enhancing our services while providing customers with the best experience possible by reducing outages and increasing power generation from purely renewable energy sources. EDC's Agile approach also enables independent decision-making and immediate action, with multidisciplinary teams working together to provide innovative solutions that best serve the customers. All these align with EDC's culture driven by Continuous Improvement, which inspires innovation and growth. 

Given the urgency of the climate crisis, we are taking all necessary measures to provide reliable, stable, and clean power to customers even during natural disasters and the pandemic. We implement business continuity measures to ensure resilience and adapt to changes and disruptions. EDC's facilities are typhoon-proofed and have remained climate-resilient, even during catastrophic events such as Typhoon Haiyan and Super Typhoon Rai, which caused millions of damages.

EDC operates within a complex external environment that includes legal, commercial, social, environmental, and political considerations. These factors impact our ability to create, preserve, and transform value. However, we are fortunate that renewable energy opportunities are growing in the Philippines, particularly with the evolving regulations on Retail Competition and Open Access (RCOA), Green Energy Auction Program (GEAP), Green Energy Option Program (GEOP), and the moratorium on Greenfield Coal Plants. 

EDC complies with national government agencies' permits and licenses. We also set parameters and policies for our vendors to ensure a green roster of suppliers. The Renewable Energy (RE) Act of 2008 serves as the regulatory framework for our industry, providing both fiscal and non-fiscal incentives for RE projects. Additionally, the market and competitive circumstances of the renewable energy sector influence our organization.

As we pursue our mission, we must acknowledge and appropriately address the Philippines' vulnerability to the impacts of the climate crisis, especially given our current rank as the topmost in risk global ranking, according to the World Risk Index 2022. The level of risk we face can be exacerbated or reduced by our social conditions, institutions, and structural ability to respond and support our stakeholders promptly. As such, we continuously and efficiently manage and mitigate these risks. Moreover, as the ongoing pandemic is still challenging our operations, we have implemented site and system innovations with guidance from senior management and cooperation from the entire organization to minimize the pandemic's impacts on our company.

As an energy company, EDC faces various risks and disruptions in transforming our capitals. These risks could be brought about by various factors such as natural hazards, regulatory changes, financial instability, or even a global phenomenon like the COVID-19 pandemic.

However, EDC does not simply regard risks merely as threats; we also see them as opportunities to create value for our stakeholders.

EDC is exposed to natural hazards, including typhoons, earthquakes, and landslides, due to the Philippines' geographic location. However, we have been implementing mitigating measures to address the risks associated with these hazards such as various projects and initiatives to have resilient operations and personnel safety.

EDC also manages risks related to its operations, including the reliability of power generation assets and the sustainability
of geothermal resources. To address these risks, we have been implementing several initiatives, such as an enterprise asset management program for power generation assets and modern technologies for geothermal resource management.

On the commercial aspect, the expiration of power supply agreements may expose EDC to the potential volatility of spot market prices, which could affect the company's revenues. However, we are continuously managing this through efforts to contract our available capacity with existing and new customers.

During the COVID-19 pandemic, EDC immediately shifted to a work-from-home arrangement, which required us to shift to digital workflows and processes.  We also needed to address cybersecurity risks by identifying and addressing vulnerabilities in the system, strengthening the protection of information technology and operational technology systems, and improving the company's disaster recovery plan.

As part of our Enterprise Risk Management (ERM) system, EDC continuously identifies, evaluates, manages, and monitors its enterprise risks. Risk treatment plans are formulated as part of our planning and budgeting processes to allocate appropriate resources for risk mitigation. We also regularly report strategic risks to the Management Committee and the Risk Management Committee of the Board. EDC conducts annual Process Risk Reviews, Focused Risk Reviews (such as Natural Catastrophe (NatCat) Risk Review, Asset Risk Review, and Well Risk Review), and Operational Risk Reviews to identify and manage risks. Additionally, Project Risk Reviews are conducted as part of the Company’s project management process. The project teams conduct risk assessments, which are regularly updated and monitored as part of project status reporting.

To ensure effective risk governance, top risks from these activities are reported to Line Management,  Management Committee, and/or the Risk Management Committee (RMC) of the Board. This ensures that the Company's top operational and strategic risks are managed with clear direction and strategies.

EDC also established a Business Continuity Management (BCM) System covering emergency response, crisis management, and business recovery. We regularly update our BCM plans and strategies based on risk reviews and establish BCM teams (e.g., Crisis Management Committees, Incident Management Teams, and Business Recovery Teams) across all locations to execute these plans.

To further strengthen and improve our BCM plans and strategies, we conduct annual desktop simulations to test the readiness of our BCM team members. In 2022, the Risk Management Department, in coordination with facilities' BCM managers, conducted simulation exercises for all operating sites, considering each location's top risk exposure, including the ongoing pandemic situation.

Despite the disruptions brought about by the pandemic, we ensured a steady flow of revenue by confirming fully-funded business plans and optimizing capital allocation. We maintained our target selling price and annual revenue while improving our contract portfolio, securing grants and concessional financing, and timely debt service and dividend payouts for our shareholders.

To ensure the resilience of our facilities amidst natural disasters such as typhoons, earthquakes, flooding, landslides, and power outages, we conducted timely preventive maintenance servicing of all generating units. We strengthened our resiliency program on all sites. We also invested in technological and digital improvements, including intelligent instrumentation, more sophisticated chemical tracer, and optimized well and field surveillance systems. We forged strategic partnerships and joint ventures with information and technology organizations to advance our regenerative agenda with the help of our facilities.

In addition to elevating our physical facilities, we also focused on enhancing our intellectual capital by implementing an Integrated Management System (IMS) and facility-level governance through asset management leaders. We introduced further upgrades in wells to ensure optimal delivery. We utilized geohazard assessments such as the Rapid Earthquake Damage Assessment System (REDAS) and digital tools like 3D gravity modeling and the Global Navigation Satellite System (GNSS).

We also improved employee relationships through enhanced HR service delivery, collective employee dialogue, and revisited workplace policies. We also enhanced talent management with development initiatives and learning solutions for our employees. We delivered process solutions to improve the HR Services systems framework to strengthen our operations.

EDC is committed to carbon neutrality, steam optimization, and efficient water management programs to ensure sustainability and regeneration within our natural capital. We follow the climate modeling system to enable the most efficient performance while managing resources. We also sustain our ongoing and long-term initiatives, such as waste minimization programs and conserving and monitoring local flora and fauna.

In our social relationships, we continued to launch corporate social responsibility (CSR) programs with partners and advocates who share our values. We also promote relationship management within our stakeholders through the existing stakeholder framework and strategically develop new social networks to achieve the company's objectives and create value for our stakeholders.

Despite the ongoing impacts of the pandemic and the worsening climate crisis, EDC has remained steadfast in its commitment to a decarbonized and regenerative future. Our revenue for 2022 reached PHP 48.7 billion, with an RNIA of PHP 11.2 billion and a total direct value distributed to the economy of PHP 35.4 billion. By efficiently managing geothermal resources, equipment upgrades, and adopting new technologies, we sustained the generation of EDC’s existing geothermal fields. We expanded our business by exploring and developing new renewable energy projects.

EDC also prioritized technology development, streamlining processes, improving efficiency, and increasing revenue. We empowered our workforce with integrated EDC systems, advanced resource and steam field management, and sustainable management of assets. We also focused on holistic employee development, including mental health, wellness, and training that increases productivity.

EDC remains committed to decarbonization and regeneration through water management and reforestation programs. We implemented climate change adaptation programs and explored ways to contribute to a circular economy. We also prioritized proper resource management and community interventions to ensure no business interruption in our communities. In light of the natural disasters the nation experienced, income and food security for our communities were also top priorities for EDC.

EDC recognizes the crucial role played by our stakeholders in fulfilling our mission. Our commitment to engaging with them and addressing their needs has been unwavering, even during these challenging times. We have proactively ensured constant communication with our stakeholders, utilizing their feedback and insights to improve our operations and achieve our sustainable and regenerative goals.

To identify the factors that matter most to our stakeholders, we conducted a materiality survey in collaboration with our corporate and technical working groups. The survey results informed our decision-making process, guiding us toward our business goals and creating value for our stakeholder groups.

We reviewed the material topics related to their significance and impact on our operations. We evaluated these topics based on our capacity and capability to manage or act on them, considering the risks and crisis management in place within the Company. These material topics cover a range of issues, including our company policies, processes, and operations, which are all critical to business continuity. By identifying and addressing these material topics, we aim to ensure the sustainable growth of our organization while creating value for our stakeholders and the environment.