Despite the country’s recovery from the COVID-19 pandemic and the opening up of the economy in 2023, we took the stance of cautious optimism due to geopolitical tensions such as continuing wars in Ukraine and Gaza. At the same time, amidst the relentless assaults of climate change on our country, we continuously work to improve the resilience of our operations and conscientiously design our decarbonization and regeneration plans.
Adhering to our Value Creation Process and navigating the operating conditions we faced in 2023, we achieved new marks in our mission.
New Instruments
The first set of outputs in our mission’s progress are the tools we put in place:
Integrated Management Framework (IMF)
This framework facilitates the unification of key management processes to ensure a strategy-driven risk-based decision-making and resource allocation. Communication and socialization of this initiative to all our businesses is scheduled in 2024. The IMF initiative is expounded on in page 99.
ESG Data Management Platform (Project eCloud)
With the increasing volume of the ESG regulatory requirements and stakeholder expectations, our data output increased considerably. Thus, in 2023 FPH began Project eCloud which aims to develop an ESG Data Management Platform to help consolidate, process, and analyze our ESG data. The proper ESG data collection, analysis, and management will lead to more accurate inputs to strategic planning, risk management, financial allocation, performance monitoring, and reporting.
ESG Data Governance
We developed a reference for the internal stakeholders on the proper collection, analysis, and reporting of the company’s ESG data. The guidance document is for internal consultation and enhancement in 2024.
SUPPLY CHAIN
Based on our pilot project with First Balfour on supplier engagement in 2021-2022, we conducted FPH Suppliers’ Assemblies in 2023, specifically on August 18, 22, 24, and September 5. We invited the Tier 1 suppliers of FPH and our subsidiaries to join us in our decarbonization and regeneration journey. The initiative was meant to amplify climate action. It was also intended to help protect the suppliers’ businesses and to contribute to the stabilization of the planet and society. The sessions received good support from the suppliers. This engagement is critical to our plan to regularly capture the Scope 3 GHG data from their operations so engagement with them will continue.
Developments in our Mission
The most important driver for the constancy and consistency in the implementation of our mission is the projected acceleration of climate catastrophes due to tipping points being breached as affirmed in the 2023 Global Tipping Points Report (GTPR). The UN defines the “tipping point” as a critical limit that when exceeded can lead to a significant change in the state of the system, leading to a change that is often irreversible. Unfortunately, the world is now on track to breaching the tipping points by years 2026-2042 at median estimates. Further, the GTPR suggests that the current global warming will push five of the major earth systems past their tipping points, and another three will follow if temperatures exceed 1.5° Celsius of global warming above pre-industrial levels. However, the report notes that positive tipping points such as renewable energy can help the situation. With this backdrop, climate action must seriously be considered an imperative not only by everyone in the country but across the world due to the interconnectedness of the natural, social, and economic systems.
FPH has gone a long way since the launch of our climate-centric mission in 2020. It has progressed from awareness in the early years to concrete climate actions this year. The call of FPH leadership is for the company to move from mission to action, silos to integration, and mere cost savings to prosperity that we can share with our stakeholders.
Status of the FPH mission journey
Actions on our Mission
In 2022, we inventoried the climate strategies we could adopt, as expounded on pages 80-83 of our 2022 Integrated Report.
Mission Strategies in 2022
By 2023, our plans have become more granular, some of which we have started to implement. But for hard-to-abate and high-emission segments, the technical design and economics of some measures need to be worked on further in order to execute them well on the ground. In general, the subsidiaries made use of the KPIs derived from the mission pillars in preparing their detailed decarbonization and regeneration plans, presented on page 95 on the Metrics and Targets. The figures below present the measures of the various FPH business segments which they started implementing in 2023. These will be further refined and targets shall be identified in 2024.