EDC Integrated
Report 2022

To our dear Stakeholders,

We started the year 2022, by acknowledging the shortfalls of 2021, and taking accountability for our role in allowing those execution missteps to happen. Our numbers and our morale suffered.

 

We then committed to learning from our mistakes and to improving how we do things. I am proud to say that we have made great strides toward achieving that goal and incidentally, that painful letter to you our shareholders, in combination with the letter of our chairman, won a gold award in the Asia Sustainability Reporting Awards this 2023.

 

In 2022, we focused on narrowing the interpretation of our vision into just four focus areas, and we concentrated on clearing the path for everyone to deliver.

As a result, we significantly outperformed our generation and attributable recurring net income targets in 2022 for the first time in four years. Our PHP 11.2 billion RNIA was up by 28.7%, or PHP 2.5 billion, from PHP 8.7 billion in 2021. 

 

Priority 1: Improve HSE Performance

HSE must come first. Good HSE practices affect how other things are done in the company and when done properly, demands consistency from everyone to do their job right.

 

With HSE in place, we are then able to focus on generation, growth, and financial targets. HSE costs more in the short term, but less in the long term. Initially, we need to bring our own people and our communities along the journey and invest in the right training and equipment.

 

Over time though, many things improved, including basic housekeeping, warehousing and storage of over PHP 4 billion worth of materials in inventory.

 

Today it’s undeniable that the climate emergency being faced by humanity is real and in urgent need of action. In the last few years, we’ve employed various platforms, venues, and forums, including our integrated report covers, to highlight the existential threat posed by the climate crisis. Now it feels so much more encouraging as we see a myriad of sectors of society weaving threads from their respective fields into a tapestry of solutions that aims to bring carbon emissions down to zero by 2050. While the challenge is still daunting, we know that, with the right focus, countless solutions will come to light. 

 

The journey to Net Zero will involve three phases that need to be executed within a limited timeframe. More importantly, we must keep in mind that the overriding goal is to “solve the climate emergency”, by mitigating and reversing emissions as well as adapting to its impacts that are already here and intensifying.  Because if we don’t get it right, the exponential deterioration of global climate systems and the environment will make it impossible to solve other problems like poverty, inequality, disease, food production, freshwater scarcity, mass migration, social displacement, mass extinction of species, and biodiversity loss, among others. All of this we will feel during our lifetimes and they’re undeniably accelerating as we can see in news reports every single day now. 

 

Recall that Paris COP 21 applauded the agreements that signaled we could limit global warming to 2.0 degrees Celsius if all commitments were met. Since then, the UN IPCC issued a Special Report on Global Warming, followed by its Sixth Assessment Reports from Working Groups I, II and III, all with dire warnings and consequences for a 2-degree Celsius warmer world. Taken together, they underscored the scientific consensus that our targets must not exceed 1.5 degrees by end century. This target is slipping away from us fast but the 1.5 degrees Celsius must still remain our base case. 

 

Consequently, “solving the climate emergency” means deliberately embarking on a journey through these phases.

 

In PHASE ONE, we REDUCE Greenhouse Gas (GHG) emissions of carbon dioxide, methane, nitrous oxides and fluorinated gases  from the current 50 gigatons (Gt) of GHG’s per year, and we see emissions peak by 2025. This is where most efforts are centered today. But we cannot stop there.