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Who We Are The Foundation upholds the values of enabling the people we serve to pursue a better quality of life and keeping the solid commitment to community development in the areas where we operate.

AES Philippines set up AES Philippines Power Foundation (APPFI or the Foundation) in 2012 to manifest its commitment to energizing change Philippine society as the corporation serves its need for safe, reliable, and affordable energy. As the social development arm of Masinloc Power Partners Co., Ltd. and AES Philippines, we visualize ourselves as the trusted partner in developing vibrant model communities and improving people’s lives through knowledge-sharing and social development programs. We implement our corporate social responsibility programs following various frameworks that harness the power of concerted effort and unify various socially relevant and responsive initiatives with a strategic national and local focus. The Foundation is only two years old and already has made significant strides in creating effective and proactive anti-poverty programs directed at livelihood and employment, human development, and pro-poor infrastructure. We help address the needs of our partner communities such as basic education, health and nutrition, water and sanitation, and improve the necessary public

infrastructure so that they are able to live their lives and pursue their goals in a healthy, dignified manner. We develop environmental programs with the full consideration of the livelihood requirements of the community. We strengthen their capabilities so that they are able to engage in productive activities that promote empowerment and self-reliance. At the same time, we contribute to AES Philippines’ competitive advantage. Through the Foundation’s programs, we develop positive relationships with our electric cooperatives and our employees. Our partnership programs with our customers, whether CSR or training, strengthen their performance and create goodwill in their own host communities—and their benefits ultimately cycle back to us through a more efficient value chain. Because our employees see AES as a responsible corporate citizen with a strong imperative for fairness and inclusivity, our people take pride in our company, which help contribute to productivity and retention. A non-stock, non-profit organization, AES Philippines Power Foundation is located at the 18th floor of Bench Building, 30th street corner Rizal Drive, Crescent Park West 5, Bonifacio Global City, Taguig, Philippines.


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Vision AES Philippines Power Foundation is the trusted partner in developing vibrant model communities effecting positive change and improving people’s lives.

Mission Energizing our communities through knowledge-sharing and social development programs.

A Strong Foundation of Values To realize our vision of developing vibrant model communities, the Foundation has to be a model organization. Thus, our work is built on a strong foundation of ethical practice. We believe that development cannot flourish where the moral foundation is weak. We follow the corporate values set forth by our mother company. We act with integrity and conduct ourselves in the best possible manner to inspire others to act similarly. Safety is of utmost priority because we value human life and protect every partner’s right to live and work in an environment that nurtures his life and wellbeing. We live out our value of transforming Words into Action. We fulfill our promises and honor our commitments to deliver positive change to the stakeholders we come into contact with through our work and our programs. The Foundation makes sure that all CSR programs adhere to our value of excellence and fulfill the company’s business goals and objectives while remaining relevant to our critical stakeholders such as our shareholders and lenders, the Masinloc community, our network of customers, and our employees. We comply with US Foreign Corrupt Practices Act (FCPA) and all the governing laws against corruption, bribery, and monopoly. We commit to be transparent in the funding and implementation of our programs. Our governance structure strengthens our overall reputation of responsibility and efficiency and allows the foundation, partners, and the community to achieve our respective development goals.


AES Philippines Core Values Put safety first. We will always put safety first – for our people, contractors and communities. Act with integrity. We are honest, trustworthy and dependable. Integrity is at the core of all we do – how we conduct ourselves and how we interact with one another and all of our stakeholders. Honor commitments. We honor our commitments to our customers, teammates, communities, owners, suppliers and partners, and we want our businesses, on the whole, to make a positive contribution to society. Strive for excellence. We strive to be the best in all that we do and to perform at world-class levels. Have fun through work. We work because work can be fun, fulfilling and exciting. We enjoy our work and appreciate the fun of being part of a team that is making a difference. And when it stops being that way, we will change what or how we do things.


How We Energize Change A trusted partner in Philippine development— this is how we see ourselves.

When our company rehabilitated the Masinloc Power Plant, we began to contribute to the country’s economic development as we met increasing demand in Luzon, where the Philippines’ largest power grid, and majority of its economic activities, may be found. Today, while fulfilling our vision to be a leader and role model in the energy industry, we also see ourselves as a trusted steward in the communities where we operate. We position ourselves as a trusted partner in Philippine development and a good neighbor by institutionalizing strong CSR programs that will improve the quality of life of marginalized Filipino communities found mostly in the rural areas where development is often haphazard and short-term.

As an initial step, the Foundation took the lead in the implementation of a community baseline study. The study was expected to guide us in the creation and implementation of programs that would respond to the actual needs of our stakeholders in a timely manner, and to monitor these programs and measure our efforts, improve on the positive results, and mitigate any negative impacts of our operations and programs. Undertaken by the University of Asia and the Pacific Center for Social Responsibility, the baseline study gathered research and information through focus group discussions and direct surveys among our key stakeholder groups: community, customers, government and regulatory agencies, industry and business, academe, and media.


The results of our baseline study points to flagship programs in the critical areas of Health, Education, Livelihood, and Environment for countryside development. These programs are aligned with the UN Millennium Development Goals (MDG) and the national government’s poverty-alleviation programs. Briefly these goals, their corresponding thrusts of the Foundation in highlight, and the targets and monitoring indicators are as follows:

MDG [1] Eradicate extreme poverty and hunger

APPFI Thrust Economic Development

Targets and Indicators Target 1.A : Halve, between 1990 and 2015, the proportion of people whose income is less than one dollar a day Indicators: Proportion of population below $1 per day; Poverty gap ratio Target 1.C: Halve, between 1990 and 2015, the proportion of people suffering from hunger Indicator: Prevalence of underweight children under five years of age

[2] Achieve universal primary education

Education

Target 2.A : Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling Indicators: Net Enrolment ratio in primary education; Proportion of pupils starting grade 1 who reaches last grade of primary level; Literacy rate of 15-24 years old, women and men

Health

Target 4.A : Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate Indicators: Under-five mortality rate; Infant mortality rate; Proportion of 1 yearold children immunized against measles

[3] Promote gender equality and empower women [4] Reduce child mortality


MDG 5 – Improve maternal health

APPFI Thrust

Targets and Indicators

Health

Target 5.A : Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio Indicators: Maternal Mortality Ratio; Proportion of births attended by skilled health personnel Target 5.B : Achieve by 2015, universal access to reproductive health Indicators: Contraceptive prevalence rate/Adolescent birth rate; Antenatal care coverage (at least 1 visit and at least 4 visits); Unmet need for family planning

[6] Combat HIV/AIDS malaria and other diseases [7] Ensure environmental sustainability

[8] Global Partnership for Development

Environmental Stewardship

Target 7.C : Halve, by 2015, the proportion of people without sustainable access to safe drinking water and sanitation Indicators: Proportion of population using an improved drinking water source; Proportion of population using an improved sanitation facility


Apart from the MDG targets and indicators, we regularly measure our performance against the study and key result areas pertaining to improved health conditions, improved literacy rate, reduced number of residents below the poverty line, and models of sustainable resource utilization. We also establish partnerships with national and local government units and line agencies, cooperatives, people’s organizations, state universities, and NGOs and interest groups so that the local context informs our objectives and we address them in a relevant, more efficient manner. Finally, we make sure our programs have strong support from our employees, solid relationship with our stakeholders, and good corporate reputation. These allow us to support the business goals of AES Philippines while reinforcing a positive brand.


What We Do We strengthen the numerous flagship programs for our community and our customers to hasten poverty alleviation and equitable development.

Our Flagship Programs Basic Health Welfare AES Read to Lead Program Livelihood Development Environmental Stewardship CSR Programs for Electric Cooperativesand Communities Disaster Response Program Volunteerism Program Reputation Management Program


Our first year was marked with great strides in our social development and sustainability efforts. In 2013, the Foundation continued to strengthen the numerous flagship programs for our community and our customers to hasten poverty alleviation and equitable development. Each development thrust—health, education, livelihood, and environment—follows a framework that identifies critical program components, governance structure, target beneficiaries, key result areas, monitoring and evalution, and program partners.


Flagship Programs

Basic Health Welfare Aligned with MDG No. 4 (Reduce Child Mortality) and MDG No. 5 (Improve Maternal Health), the basic health welfare thrust aims to improve the health indices of our host communities, especially the most vulnerable groups, in Masinloc and Candelaria. This thrust is guided by a working framework that provides health leadership and governance intervention—believing that committed local leaders are crucial to the success and sustainability of health programs—along with free basic health services for the community. A Project Management Council oversees the implementation of the program components through the AES Mobile Health Clinic. The use of a fully equipped mobile clinic allows us to reach our beneficiary communities at convenient venues to eliminate the challenges to access such as lack of transportation or limited financial resources. The AES Mobile Clinic serves 3,000 indigent individuals every year. It has a competent medical team and is equipped with laboratory services (chest x-ray, ECG, urinalysis, blood test, and ultrasound), tooth extractions, medical and dental consultations, and a pharmacy that provides free medicines and vaccines. Key result areas are: improved maternal and child health, monitored and improved community health indices, community access to basic health services. Volunteerism and partnerships facilitate a sense of ownership among the community members and employee engagement. Through volunteers, an information and education campaign promotes better health awareness among the beneficiaries with the use of educational videos, Knowledge Channel health reference materials, and tutorials. Partnerships with the Candelaria District Hospital, Zambales War Against Poverty Foundation, the local government units and barangay government units of Masinloc and Candelaria help the clinic reach its target beneficiaries and ensure that health records are accurate and updated.


DATE

VENUE

MEDICAL

DENTAL

ULTRASOUND

VACCINES

BENEFICIARIES

January 24 March 20-21 April 24 May 29 June 26 July 24 August 15 August 15 August 23 September 27

Masinloc Gym Bani, Masinloc Taltal, Masinloc Baloganon, Masinloc Collat, Masinloc Lauis & Yamot, Candelaria Baloganon, Masinloc Binabalian, Candelaria San Fernando, Sta. Cruz San Andres Parish, Masinloc

100 635 401 559 373 476 481 374 404 152

50 175 186 168 111 140 70

30 12 17 16 18 15 -

100 100 62 163

180 822 604 843 584 693 481 374 404 385

Total NUMBER OF BENEFICIARIES

5,370

Table 1: In 2013, we conducted 10 medical health missions and served a total of 5,370 beneficiaries in Masinloc and Candelaria, Zambales


Flagship Programs

AES Read to Lead Program Aligned with MDG 2 (Achieve Universal Primary Education), our educational thrust supports the schools in our priority communities through a set of programs using the AES Read to Lead framework. Consisting of five components that address specific educational needs, the AES Read to Lead Program targets the grade school students of Masinloc North and South districts as its beneficiaries. These components are: education governance, reading program, library hub, in-school feeding program, and scholarship program. Key result areas are enhanced reading comprehension, improved national achievement test (NAT) scores, and improved body mass index. A Project Management Council oversees the planning, implementation, monitoring, and evaluation of the various programs. Under education governance, we seek to reinvent the local school board and equip the board members with ways to transform their local school board into a proactive, professional organization that will help achieve quality education in Masinloc. Done in partnership with Department of Education, education governance empowers people and encourages them to collaborate and be transparent in the delivery of quality education programs. To improve the reading and comprehension of students in AES Center of Excellence schools at Masinloc and Candelaria, Zambales—consisting Bani Elementary School, Bani Relocation Elementary School, Taltal Elementary School, Lauis Elementary School, Felipe Estella Elementary School, and Masinloc South Central School—we have a reading program that will assess students’ reading comprehension abilities and address their learning gaps. Teachers are also required to take the diagnostic test to show their proficiency in grammar and comprehension. As we want to effectively improve the reading and comprehension of the students, we also provided capacity development, mentorship and interventions on pedagogy for teachers and school heads, specifically on teaching reading, and the development of reading manuals and students’ workbooks. A total of 3,544 elementary students from the six pilot schools were taught under this program.


We know that parents have an important role in reinforcing the value of education among children. The Foundation partnered with the Masinloc Power Plant’s Community Relations Site Team in hosting Parents Effectiveness Seminar. The training program inculcated in the parents the value of quality education and sought to increase their level of confidence in effectively communicating with their children. The parents also learned how to assist the teachers, how to supervise their children in doing their assignments, and how they can help their children in developing their values and good habits. A total of 38 pupils and 20 parents from Barangay Bani, Masinloc benefitted in this project, where 48 AES employees also volunteered and shared their knowledge.

Supporting initiatives to improve student comprehension and retention is the library hub, a system-wide approach to provide supplementary reading materials. The Foundation donated 5,093 books, activity and learning materials, and teachers’ manuals to the district offices of Masinloc North and South and Candelaria; and 600 school kits— consisting of a school bag, raincoat, pencils, sharpener, eraser, notebooks, pad paper, and a box of crayons—to students of 16 elementary schools at Candelaria, Zambales. The activity was done in cooperation with Bato Balani Foundation. With the help of Knowledge Channel, we also provided six elementary schools in Masinloc and Candelaria with educational and teacher


The AES Read to Lead Program has five components that address specific educational needs: education governance, reading program, library hub, in-school feeding program, and scholarship program.

training videos, a laptop, a 32-inch LCD TV, external speakers, cable TV connection, and user’s manual and Knowledge Channel guide. This serves to enhance the quality and number of reference materials that students can access. We also re-launched a supplemental feeding program to improve the students’ health so that they show up in school and improve their retention rates. We believe that students who are healthy are able to focus in studying their lessons and have energy to attend their classes. The feeding program is done in partnership with Jollibee Foundation. A total of 410 students from six AES Center of Excellence schools were recipients of the supplemental feeding program. Finally, the foundation also awarded scholarships to deserving high school graduates who cannot afford the college fees. Ten civil and mechanical engineering students were added to our roster of scholars in 2013. A total of 14 students under our scholarship program received support in terms of the students’ tuition and other miscellaneous fees, and additional allowances for transportation, bed space, and purchase of books. They are currently enrolled at Ramon Magsaysay Technological University – Iba Campus. We are proud to report that four scholars have already graduated and are now employed in various companies, including one who is now a project assistant at the Foundation.


Flagship Programs Livelihood Development Aligned with MDG 1 (Eradicate Extreme Poverty), the Foundation has an economic development program that seeks to enhance the social welfare and quality of life in AES Philippines’ host communities. The program was developed after the 2011 socioeconomic profiling of our plant’s impact barangays. The results of the study helped determine the beneficiaries and their preference in terms of livelihood programs, which led to the establishment of the two program components: Masinloc Training Facility (MTF) and Bani Mothers’ Club. Guided by a Project Management Council headed by the mayor, the program follows a framework that creates livelihood opportunities for the target beneficiaries, specifically the out of school youths and unemployed adults of the host municipality of Masinloc, the host barangay of Bani, the impact barangays of Taltal, Baloganon, and Binabalian, and the province of Zambales. The framework ensures the monitoring and evaluation of the program according to the MDG 1 target of decreasing proportion of the population whose income is less than one dollar a day. In particular, the key result areas are the number of trained mothers, out of school youths, and organized communities, and improvement in household income. Every quarter, MTF provides skills and livelihood training to 25 out-of-school youth and unemployed adults using accredited training modules of the Technical Education and Skills Development Authority (TESDA) and complete equipment. The MTF is also part of a larger program to develop a pool of local skilled labor that AES Philippines can tap for the regular operations and maintenance of the plant, scheduled maintenance outages, and in anticipation of the construction of the

plant’s units 3 and 4. A key result area for the MTF is the 90% passing rate for MTF students in the TESDA National Certification Tests. The Bani Mothers’ Club has three project components: community organizing, capability building, and market linkages. The Foundation donated 10 units of electric sewing machines to Samahang Pangkabuhayan ng Barangay Bani (SPBB) composed of 54 mothers, and partnered with TESDA for the two-month training program on dress making. The local government unit of Bani also gave the seed capital for the purchase of raw materials needed for the dress making. Through the club, unemployed mothers also learn how to cook and dresses, bags, rags. They are able to secure a steady income by organizing themselves as accredited suppliers of AES, Masinloc Power Plant, and the local government units. The MTF has accommodated more than 200 enrollees and 1,200 total training hours since it started in 2012. It exceeded the Foundation’s target passing rate at 96%. Eighty-eight percent of the graduates were hired upon graduation: 76% of the graduates were hired by companies in the Subic and Bataan area, 6% overseas, and 6% by AES Philippines. Last year, the Masinloc Power Plant and the Foundation also conducted an eight-day Training on Scaffolding with NC II Certification. Thirty two out of 34 participants completed the training and passed the written and practical examinations. The Foundation and the power plant worked closely with Barangay Bani and the provincial office of TESDA. The Bani Mothers’ Club, in the meantime, trained 40 members dress-making in 2013.


As a social innovation, it has the following characteristics: it fosters 1) commitment among project partners in creating a pool of skilled labor in AES host communities and job opportunities, and 2) collaboration towards one goal and shared vision for the community. It is 3) catalytic in that AES Philippines serves as an agent of change by providing 4) sustainable/scalable job opportunities to the community that will 5) help user their transformation into vibrant model communities. Partners that help uphold these characteristics are: TESDA, the local government unit of Masinloc, the Public Employment Service Office, the Department of Trade and Industry, Technology Resource Center, and AES employee volunteers for bookkeeping training. Because of MTF’s positive contribution to its host communities, we received the CSR for Excellence Award for Sustainable Livelihood during 4th CSR for Excellence Award ceremony given by the American Chamber of Commerce in the Philippines last year.


Flagship Programs

Environmental Stewardship The Foundation contributes to ensuring the environment-friendly operations of the power plant. Using the AES Ridge to Reef Conservation Program as framework, the Foundation aims to establish and conserve the upland and mangrove forests at Masinloc and Candelaria. A Project Management Council oversees the implementation, monitoring, and periodic evaluation of the program components, which consists of Watershed Management, the National Greening Program, and Adopt a River Program. Through Watershed Management, we seek to improve community access to water supply; rehabilitate of 50 hectares of upland forests in Lauis, Candelaria, and in Sta. Rita, Masinloc; and rehabilitate of 10 hectares of mangrove forests in Bani, Masinloc, and in Pantal, Candelaria. Key result areas are the development of a baseline map; organized communities of 200 households and formation of a patrol group; planting and maintenance of 165,000 upland indigenous seedlings and 57,772 propagules; water supply access of 90% of the community; and development and dissemination of information, education, and communication materials on environmental awareness. We maintain 150 hectares of upland plantations for the National Greening Program (NGP) and conserve and maintain a two-kilometer stretch of the Lauis river in Candelaria for the National Adopt-a-River Program. NGP key result areas consists of increased survival rate of existing and planted trees through maintenance activities, brushing and removal of debris, replanting and staking activities. For the Adopt-a-River, key result areas are the development of a baseline map, establishment of a bamboo nursery, planting of 200 bamboo culms planted along the project site, and the formation of a patrol group. In 2013, we rehabilitated 50 hectares of upland plantations and established six nurseries in the upland barangays of Sta. Rita in Masinloc and Lauis in Candelaria. Seventy active members of the Pinagkaisang Samahang Magsasaka/Mangingisda Multi Purpose Coop planted a total of 165,000 potted seedlings of 11 endemic species like narra, palosapis, and batino with a target survival rate of 90%. For the mangrove rehabilitation, we distributed and established 10 hectares of plantable areas for mangrove plantation with the help of Barangay Bani Fisherfolks Association, Duhok Bani Fisherfolks Assocation at Barangay Bani, Masinloc Zambales and Samahang Mangingisda ng Candelaria at Barangay Sinabacan, Candelaria, Zambales. We also rehabilitated a two kilometer-stretch of Lauis river in Candelaria as a fresh water source of Masinloc Power Plant.


Through the Safe Water Access Project, we acquired a list of internal and external reservoirs for water system projects. We also identified critical aspects of the program implementation such as the direct and potential beneficiaries of the water system, the cultural practices in forest protection, environmental issues, forest activities, wild life information, and a coping mechanism. In 2013, in partnership with Jaime V. Ongpin Foundation, we conducted village mapping and forest site assessment in four barangays, and rapid area assessment. Throughout these program priorities, we conduct community organizing and capability training to equip the communities with the knowledge and the skills to maintain the integrity of their environment, which in turn helps protect their lives and livelihood. Last year, in partnership with the Department of Environment and Natural Resources (DENR), our Upland and Coastal Rehabilitation Management Training covered seminars on Basic Value Formation and Environmental Awareness in Coastal Barangays attended by five (5) Peoples Organizations. Program partners are the regional, provincial, and city offices of DENR, local government units of Masinloc and Candelaria, Samahang Mangingisda ng Candelaria, Barangay Bani Fisherfolks Association, Duhok Bani Fisherfolks Association, Pinagkaisang Samahang Magsasaka/Mangingisda Multi Purpose Coop., Lauis Upland Farmers Association, Jaime V. Ongpin Foundation, and parent volunteers.

Fig. 1, 2, and 3: Location maps of the different projects under the Environmental Stewardship flagship program


Recently, we strengthened this program thrust with the Masinloc Water Summit in Baguio City, which the Foundation organized to create a better understanding for a need of a sustainable watershed/forest land utilization, development and management for Masinloc, Zambales. Another objective is to increase the awareness of participants of the water situation and challenges and the need to take action to address these challenges. Topic coverage of the summit included a situationer on the Masinloc watershed, water district, and water system; briefings on the legal frameworks on water use, and the Adopt-a-River Program; case studies on sustainable forest management and water management; and sharing of best practices. More than 70 participants from seven different sectors from national and local agencies and people’s organizations attended the summit. At the end of the summit, the participants signed a covenant, committing to the creation of an integrated water resource management council to lead in the preparation, implementation, monitoring, and evaluation of the Masinloc watershed, its river and coastal resources, its disaster-risk management program, and to ensure sustainable water access to the people of Masinloc.


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Flagship Programs CSR Programs for Electric Cooperatives and Communities We believe business has great potential to do public good, having the resources and being oriented towards solutions. To widen the reach of our positive impacts and promote social responsibility, our CSR Programs for Electric Cooperatives help our customers deliver exceptional performance and become good citizens in their franchise areas. This program ECs is done in partnership with the Department of Social Welfare and Development, Department of Education, and the Senior Citizens Chapters. It has three components: AES Academy, APPEX Competition, and CSR for Electric Cooperatives. Key result areas are operational excellence of our electric cooperatives (ECs), creation of safety officers among EC employees who are accredited by the Department of Labor and Employment (DOLE) and the Safety Organization of the Philippines (SOPI), and improved community access to ICT Support, education and health welfare programs in their franchise areas. Through AES Academy, we provide professional learning and development programs to the personnel of our distribution utilities and electric cooperatives. The academy provides customers with knowledge and skills that strengthen them as our partners in delivering safe, reliable, and cost-effective energy supply. We offer modules on construction safety and health course for site safety officers, financial management and regulatory compliance, and project management. Last year, 58 participants from nine customer electric cooperatives attended a three-day training seminar on safe work practices, covering topics such as environmental safety, hazardous materials (storage, use, handling, and disposal), job hazard analysis, workrelated accident investigation, and safety

and health programming in construction and maintenance sites. This resulted in 60 EC personnel certified as Safety Officers by DOLE and SOPI. A second batch of 46 participants from eight customer electric cooperatives attended a three-day training seminar on compliance with the rules and regulations of the Energy Regulatory Commission as electric power industry participants. The seminar outlined the compliance procedures of some regulatory requirements. Financial management was also part of this seminar to equip participants with the right financial tools and the knowledge in terms of using their financial resources wisely to achieve their financial goals, provide them with adequate return on investment, and ensure the sustainable partnership with AES. A third batch for the last training consisted of 53 participants and three general managers from nine customer electric cooperatives, who attended a fiveday seminar on project management and the AES Philippines Performance Excellence Competition (APPEX). The second component is APPEX, where the ECs evaluate the programs they have implemented and their solutions and commitments to their project objectives. APPEX seeks to reinforce a culture of innovation, creativity, and continuous improvement in terms of process, methods, and tools among our customers. It is also a means by which we help create leaders among our partners and improve the operations of the cooperatives. The competition was kick-started in October 2013, and mentorship and coaching by AES employees from operations and engineering, health and safety, commercial affairs, and the Foundation ran from January to March 2014. Project presentation will be held in May this year and awarding in June.


The third component enhances the CSR programs of our ECs. Through our ICT Infrastructure Enhancement Project, the Foundation donated desktop computers, computer tables, USB flash drives, external speakers, Knowledge Channel Content, and construction materials for the completion of pro-poor infrastructures such as daycare centers and evacuation centers. This was done with AURELCO, PANELCO II, PRESCO, TARELCO I, ZAMECO I, and ZAMECO II. We also undertook the Safe School Project with CASURECO II and SAJELCO and built Maharlika-type classrooms for donation to schools in franchise areas, and a community health clinic and pharmacy with PELCO 1. A total of PhP16.5-million was allotted as CSR budget for Electric Cooperatives budget last year, with the breakdown as follows. ELECTRIC COOPERATIVE AURELCO

CASURECO II

CSR PROJECT Donation of 15 desktop computers, desktop table, and external speaker with Knowledge Channel On-Demand Package

CSR BUDGET

TURN-OVER/COMPLETION DATE

Php 500, 000.00

July 2013

Construction of 2 Maharlika type school buildings

2,000,000.00

November 2013

PANELCO I

Donation of 15 desktop computers, desktop table, and external speaker with Knowledge Channel On-Demand Package

2,000,000.00

July 2013

PELCO I

Donation of construction materials for the establishment of community clinic and pharmacy

2,000,000.00

December 2013

PRESCO

Donation of construction materials for the completion of evacuation center

2,000,000.00

-

SAJELCO

Construction of 2 Maharlika type school buildings

2,000,000.00

November 2013

TARELCO I

Donation of 60 desktop computers, computer table, and external speaker with 66 Kingston USB flash drives

2,000,000.00

November 2013

ZAMECO I

Donation of 60 desktop computers, computer table, and external speaker with Knowledge Channel On-Demand Package

2,000,000.00

July 2013

ZAMECO II

Donation of 60 desktop computers, computer table, and external speaker with Knowledge Channel On-Demand Package

2,000.000.00

July 2013

Total CSR Budget for 2013

Php 16,500,000.00

Table 2: Alloted 2013 CSR Budget for Electrive Cooperatives


Flagship Programs Disaster Response Program The Philippines remains one of the top countries most frequently stricken by natural and man-made calamities and our rural communities are some of the most vulnerable. More than 20 strong typhoons visit the country every year, with their attendant incidences of landslides and severe flooding, making a strong case for environmental sustainability, climate change management, and business continuity plans (BCP). At the same time, disaster response and relief programs are in place and ready to be deployed anytime of the year. Typhoon “Labuyo” was the strongest typhoon to hit Zambales in 2013, and a total of 2,800 families received relief goods from the Foundation in August. Cash donations worth $3,571 were channeled by the Foundation to Philippine National Red Cross for the victims of Typhoon “Odette,” which similarly battered Northern Luzon and was considered the strongest typhoon of the year—until Yolanda in November. With 230 km/h winds, Yolanda was one of the strongest and deadliest tropical cyclones on record worldwide, and left in its wake at least 6,069 individuals dead, 27,665 injured and 1,779 still missing as of December 17, 2013. After the immediate activation of its BCP, AES Philippines made a call for donations from other AES companies worldwide and the Foundation took the lead in the receiving the donations. Immediate, elementary relief was carried out through the donation of 110 LifeStraw Water Filter Systems to Tacloban City (60 units) and the province of Leyte (50 units). Arturo Matus of AES Corporation in Arlington, turned-over and demonstrated the proper use of LifeStraw to Tacloban City Mayor Alfred Romualdez and Leyte Governor Dominic Petilla (brother of Energy Secretary Jericho Petilla).

The Foundation and AES Philippines Taguig Office employees conducted a Medical Mission and Soup Kitchen program for the survivors of the typhoon who were relocated at the Villamor Airbase Evacuation Center and Pasay Tent City. A portion of the budget of the Christmas Party for the Taguig Office was donated to the foundation for the said Disaster Response Activity. The said fund was used to purchase 375 packs of Hygiene Kit and 1,500 food packs. The Foundation also sponsored the professional services of four medical doctors and distributed over eight boxes of medicines. To help some stricken families rebuild their lives, the Foundation pledged to sponsor the construction of 50 houses in Tacloban through Habitat for Humanity amounting to USD 139,535 or PhP6 million. More importantly, we developed a trauma management program in partnership with De La Salle University Center for Social Concern and Action (COSCA) and DLSU Science and Technology Campus, conducted from December 17 to 19, 2013. Eleven community development workers, social workers, and guidance counselors from DLSU participated in the psychosocial/stress debriefing dubbed “Kumustahan–Estoryahay.” The Mental and Psycho Social Support Project addressed the psycho-social needs 202 Yolanda survivors residing in SOS Village, Tacloban, Barangay Tigbao, Tacloban City. Sixty five or 32% of those served were children from SOS Village who were either orphaned or abandoned, and children who are members of the SOS Village Family Strengthening Program (FSP). Seventy eight (78) or 39% were other members of the community, which included the moth-


ers and other adults, and its FSP beneficiaries. Fifty-three or 26 % of the participants were members of the SOS Village Pedagogical team (social workers, youth and children’s village educators, Early Child Care Development Staff), FSP Staff, TigbaoDiit Elementary School Teachers, and Child Friendly Spaces volunteers. Three percent were members of the Parish of the Blessed Sacrament’s core of the Family Ministry Program. The sessions also served to identify children or individuals needing secondary interventions as well as potential participants to the January 2014 Training of Trainers. The latter will serve to capacitate the community in the implementing psycho-social activities in the field.


Flagship Programs Volunteerism Program Employee volunteerism does not only benefit the communities they help, but also the company. Employee volunteer programs are a chance for the company to connect with their employees and create a better workplace engagement. Moreover, these types of programs give employees a sense of purpose and feel more positive about the company they are working in. This is one of the reasons why AES created the MyShare Program, with the Foundation providing opportunities for AES employees to be engaged in corporate social responsibility (CSR) programs by sharing their time and resources. Through Brigada Eskwela, our people assisted in repairing, repainting, and renovating the rooms in schools in Zambales and Taguig. The employees also did urban gardening, which included tree-planting and vegetable planting. We also encouraged our employees create their own programs that may improve health, education, livelihood, and the environment. In line with this, the employees developed their own CSR engagement called “Pag-asa sa Pagbasa.” It is a summer reading tutorial to help non-readers and slow learners improve their skills in basic reading comprehension through tutorials. MyShare is done in partnership with World Vision, Hands-On Manila, and Children’s Hour.

Candelaria, Zambales

Taguig

Benefitted 348 children of Lauis Elementary School 15 public elementary schools 3 high schools Painted 187 arm chairs 6 long tables 174 desks 18 cabinets 15 classrom doors and window grills 6 teacher's tables and 20 office chairs Replaced Electrical wiring of 10 classrooms & H.E. room 9 door knobs 16 padlocks Renovated Feeding room Provided Painting materials to 18 schools Volunteers 74 MPPCL employees Parents Teachers Association 13 from PNP Candelaria 2 AES Scholars Volunteers from Brgy Government Unit

Benefitted Urban Gardening: 200 students and 4 teachers Classroom Refurbishment 250 students and 5 teachers Urban Gardening Tree planting (seedlings): 8 narra 2 guyabano 1 guava 2 mango Refurbishment of 1 classroom Repair works: ceiling, wall, door jamb, window stile Repainting ceiling, wall, window frames Installation new door, window jalousies, light bulbs, wall fans Volunteers 11 Taguig Office employee volunteers 5 SFI and trainee volunteers 1 MPPCL-based volunteer

Table 3: Employees’ contributions during the My Share Program in the municipality of Candelaria, Zambales and city of Taguig


Flagship Programs Reputation Management Program The Foundation has sponsorships and partnerships in programs and events that promote our CSR and sustainability initiatives and milestones, reinforcing our reputation as good corporate citizens and leading practitioner of CSR and sustainability. For the second time last year, AES Philippines and the Foundation joined the annual League of Corporate Foundations (LCF) Corporate Social Responsibility (CSR) Expo last July 4-5, 2013 at SMX Mall of Asia Convention Center with the theme “Isang Bansa. Isang Bukas. Sabay sa Pag-unlad.” The event focused on inclusive growth, specifically poverty reduction, improvement of quality of life, and economic growth in the Philippines. We participated as one of the gold sponsors and set up a booth at the exhibit area where we showcased the company’s history and achievements and the Foundation’s CSR initiatives in our priority communities. The foundation’s executive director Cynthia Pantoñal was among the resource speakers of the event. We also partnered with the Wild Bird Club of the Philippines (WBCP) because biodiversity protection is one of the environmental goals of the company and a key result area of the Foundation. Within the Masinloc Power Plant, particularly at the ash pond, are five hectares of natural habitat for 200 Philippine Ducks, which are considered endangered and among the 5,000 in the world. In 2011, WBCP planned a bird-watching activity at the ash pond of Masinloc Power Plant and Yaha Island at Barangay San Lorenzo, Masinloc

to help us record information on the bird species in our project site and develop a program that will support the co-existence of our power generation activities and biodiversity conservation. Through this program, we identified 21 bird species at five-hectare mangrove-formed island, and 51 more species unique to the area, which are now included in the database of WBCP. Arising from this monitoring effort is a proposed five-hectare wild duck reservation where the wild ducks will stay during their migration. The proposed area also has the same biodiversity conditions which is just adjacent to the original area. We also donated a bullet microscope to the Pamantasan ng Lungsod ng Muntinlupa (PLM) to improve its science laboratory. The donation of the bullet microscope benefited 2,000 students of PLM’s College of Criminal Justice. Based on a report, the school produced 105 new criminologists with a 52.15% passing rate, which is the highest number of criminologists produced in the school’s history. Lastly, a Christmas party and gift giving were hosted in Masinloc and Candelaria as part of our reputation management program. Last December 12, 2013, we held a fun-filled event for 150 children with disabilities in Masinloc and 100 persons with disabilities in Candelaria, consisting of games and party that were facilitated by magicians and distribution of noche buena packages.


HEALTH

AES Foundation offered free medical and dental sessions to 5,370 beneficiaries in Masinloc and Candelaria, Zambales.

The AES Mobile Clinic is equipped with laboratory services like urinalysis, blood testing, and ultrasound and comes with an efficient medical team.

EDUCATION

600 school kits were distributed to students of 16 elementary schools at Candelaria. This was done in partnership with Bato Balani Foundation.

AES Foundation, in partnership with Knowledge Channel Foundation Inc., provided six elementary schools in Masinloc and Candelaria with educational and teacher training videos, a laptop, external speakers, user’s manual, and a Knowledge Channel guide.

COOPERATIVES

We donated construction materials for the establishment of PELCO I’s community clinic and pharmacy in Pampanga.

AES Foundation donated 60 desktop computers, computer tables, external speakers, and Kingston USB flash drives to TARELCO 1 in Tarlac.


ENVIRONMENT

A total of 165,000 seedlings were planted and rehabilitated on 50 hectares of upland plantation: 30 hectares were from Lauis, Candelaria, and 20 hectares from Sta. Rita, Masinloc.

The Foundation conducted village mapping, forest site, assessment, and rapid area assessment in four barangays with the help of Jaime V. Ongpin Foundation.

LIVELIHOOD

In cooperation with TESDA, the Foundation was able to teach dress-making, to 40 members of Samabahang Pangkabuhayan ng Barangay Bani.

AES Foundation received the CSR for Excellence Award for Sustainable Livelihood given by the American Chamber of Commerce during the 4th CSR For Excellence Awards in 2013.

DISASTER RESPONSE

A total of 2,800 families benefited from the relief goods from the Foundation.

Psycho-social needs were addressed to the 202 Yolanda Survivors residing in SOS Village, Tacloban.


Our Team We fulfilled sustainability protocols in our management approach to social sustainability and stakeholder engagement and the aspects of indirect economic impacts, biodiversity, and community development.

Backed by the resources of AES Philippines and powered by a deep concern for the company and its stakeholders, AES Philippines Power Foundation is a strong, highly-motivated, fully functional team of four people: an executive director, a senior program coordinator, a program coordinator, and an administrative and financial assistant. As a lean, sustainable, and high-performing team, the Foundation has a well-defined organizational and governance structure and program process that allow for the effective management of programs and judicious deployment of resources in a manner that is aligned with the culture and values of the company. We improve our core competencies in CSR programs through strategic social investment, regularly undergoing training to improve our potential and contribute to greater public good through our work. We constantly measure and evaluate our programs and process to help us institutionalize knowledge learned from pro-

grams and projects and share this institution-wide to promote AES Philippines CSR practice. In 2013, it is with great pride that the Foundation’s flagship program for livelihood, the Masinloc Training Facility (MTF), was awarded the prestigious CSR for Excellence Award for Sustainable Livelihood. Given the American Chamber of Commerce in the Philippines (AmCham), the Award is given to programs that concretely show an improvement in the standard of living of disadvantaged communities and/or sectors through creative livelihood projects or the promotion of entrepreneurship. MTF bested the livelihood programs of Chevron Philippines, Inc. and the Philip Morris Fortune Tobacco Company. A private, independent and non-profit association, AmCham primarily serves the interests of American businesses in the country while contributing to the civic and economic development of the Philippines.


St

Fig. 4: The CSR and Sustainability Approach of AES Philippines


The Foundation coordinated the development of AES Philippines 2012 Sustainability Report, which fulfilled the requirements for the Application Level A+ of the Global Reporting Initiative (GRI), a leading international non-profit organization that promotes sustainability reporting as a way for organizations to contribute to sustainable development. An A+ indicates that a sustainability report has comprehensively covered information on a wide coverage of sustainability elements present in the company as well as progress made toward parameters in GRI’s rigorous framework such as economic, environmental and social impact. The Foundation also contributed to the fulfillment of sustainability protocols in our management approach to social sustainability and stakeholder engagement and the aspects of indirect economic impacts, biodiversity, and community development through its flagship programs. Our aim is to be recognized as the main foundation in Zambales, and to be the trusted partner and adviser of choice in the development of the province. Thus, we oversee the implementation of all strategic social investment programs in close collaboration with relevant stakeholders at the local levels and secure the commitment of our partners to deliver significant results across our development indicators. We establish strategic partnership with institutions to strengthen the CSR thrusts of our Foundation. Our team includes the board of trustees and the executive committee. The board of trustees provides the overall governance of the foundation; oversees the approval of the programs, the implementation, and the financial and resource generation of the foundation; and ensures that the objectives and mission of the foundation are applied in various programs. The executive committee executes the functions assigned to them by the board of trustees. The committee also monitors the foundation, the programs, finances, recruitment, evaluation, external relations, and budget.


Our Partners We fulfilled sustainability protocols in our management approach to social sustainability and stakeholder engagement and the aspects of indirect economic impacts, biodiversity, and community development.

Local/Barangay Government Units Municipality of Masinloc Municipality of Candelaria Barangays Bani, Taltal, Baloganon

State Universities/Academe Ramon Magsayay Technological lnrtkLke University of Asia and the Pacific Asia Pacific College

Line Government Agencies Department of Education Department of Energy Department of Health Department of Social Welfare and Development Department of Environment and Natural Resources

Environment Group Wild Bird Club of the Philippines

Corporate Foundations Ronald McDonald House Charities Bato Balani Foundation SM Foundation Jollibee Foundation Zambales War Against Poverty Foundation

CSR Institutions League of Corporate Foundations Other Organizations Institute of Integrated Electrical Engineers of the Phils. Safety Organizations of the Philippines Philippine National Red Cross


Fig. 4: The CSR and Sustainability Approach of AES Philippines


AES Power Foundation - 2013 Accomplishment Report  
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