EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
Assurance Statement of
the external review committee
University of Asia and the Pacific
Renewable energy such as wind, hydro-, and geothermal is a
critical resource for a developing country such as the Philippines.
To reduce its dependence on oil imports, the Philippine
government launched its renewable energy exploitation
program in the 70s, following the steep oil price triggered
by the Arab oil embargo directed at Western countries. The
government, from then on, operated geothermal and later
hydrothermal power plants until the wave of privatization of
energy generation assets, a result of the electricity power
reforms under the Electric Power Industry Reform Act (EPIRA).
The EPIRA Law unbundled the electricity sector into generation,
transmission, distribution, and supply for efficiency reasons,
and resorted to privatization to harness private sector resources
and expertise in energy. The EDC is one of those private power
companies that participated in the government’s energy
privatization program.
The EDC’s 2014 operation of the hydro- and geothermal power
plants under long-term contract agreements, extensive capital
expenditures to improve plant performance, and improvements
in internal financial, governance and risk management systems
all contributed to a good economic performance. Thus,
profitable operations for the year resulted in higher economic
value generated and distributed. The prime beneficiaries were
the providers of capital (private shareholders) and, secondarily,
labor and the government (mainly, the national government,
and in a smaller scale, the local governments hosting the hydroand
geothermal power plants).
It is conscious about improving its market presence to provide
better benefits to host local communities. Apart from direct
economic impacts to shareholders, labor, and government,
company operations resulted in indirect economic impacts
realized in terms of higher level of community welfare and
a healthier ecosystem in its areas of operation. Significant
socio-economic benefits have accrued as well to the local
communities where the hydro- and geothermal power plants
are located. Positive externalities were identified during the
assessment: beneficial impacts to local suppliers of labor, goods
and services with multiplier effects to the larger communities,
social and political stability in host communities, and protection
and preservation of the environment.
EDC in its operations is committed to environmental
sustainability and stewardship. The sustainability culture of
EDC is manifested not only in its development programs and
business endeavors but also in its commitment to protect and
preserve the resource base of geothermal and renewable
energy. A geothermal reserve can only be sustained foremost
by an intact and healthy forest ecosystem. As a company, EDC
has endeavored to enhance the forest cover in its project sites
and of its vicinity by continuous reforestation and protection,
as well as its forest biodiversity through the BINHI and HELEN
programs and their attendant advocacy campaigns.
The watershed management program is notable as it not only
ensures forest regulatory compliance with strong support from
external stakeholders/partners such as the Department of
Environment and Natural Resources and the Local Government
Units but also does not lose sight of the harmony in geothermal
field operations that adhere to best practices in energy
extraction and waste management, business and labor that
look into the interest and welfare of stockholders and the
households in the host communities, and most especially the
importance of the environment epitomizing EDC’s mission of
environmental stewardship.
Overall, work at EDC is carried out under conditions of freedom,
equity, security, and human dignity. This is the concept of
decent work according to the International Labor Organization.
The low employee turnover rate is indicative of the level of job
satisfaction and the existence of voice mechanisms that make
leaving the firm very unlikely. Compensation is competitive with
a good variety of employment benefits above the minimum set
in the GRI G4 Manual. The collective bargaining agreements
provide ample for a for social dialogue on employment terms
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This page contains the following GRI indicator(s):
G4-32, G4-33.