Aligned with our mission of decarbonization and regeneration, our businesses are called to embed ESG principles in how we conduct our business operations. Thus, we consistently prioritized the protection of the environment and our stakeholders. This allowed our businesses to thrive and prosper as we simultaneously enhanced the communities in the areas where we operate. We paid close attention to our tangible and intangible assets, preserving the quality and quantity of our six (6) capitals while averting ESG challenges and issues. This granted our business segments to maintain mutually beneficial ESG values for our stakeholders and the company.

Introduced in 2021, our internal financial tagging tool enabled our businesses to identify material investments related to the six capitals. Quantifying these contextualizes and relates our value proposition with our capital performance. We continue to introduce improvements in our methodology, further capturing expenses that prevent capitals from potential damage and those that create new capitals.

There was a significant increase in our natural capital expenditures in 2023, stemming from the execution of growth plans by our power generation, industrial real estate, and construction segments. Most of our businesses acquired new lands to establish new sites. Growth of the businesses also merited more investments in manufactured capital with expenditures towards acquiring key equipment. Our intellectual capital expenditure increased more than twofold, mainly caused by our rapid digitalization efforts and continued activities to protect our existing digital platforms.

With the waning impacts of the COVID-19 pandemic, our human capital and social and relationship capital expenditures reduced slightly. This is due to COVID-19 vaccinations being offered by the local government units to our employees, partners, and communities, reducing expenditures from our end. Aligned with our CSR objectives, we ensured the self-reliance of our communities through our social development programs. This prompted our businesses to further invest in environmental CSR projects, which are included in our natural capital expenditures.