EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
The objective of the risk reviews is to identify the top risks of each strategic business unit (SBU). Correspondingly, the initiatives that would
address the SBUs’ top risks are part of their 2014 budget and work programs.
• Vendor Financial and Credit Evaluation. 231 financial and credit evaluation of suppliers and contractors were conducted to review their
financial performance and credit history. The purpose of the evaluation is to provide EDC with an understanding of its suppliers’ and
contractors’ financial condition and related risks.
• Risk Management Survey and Enterprise Risk Management (ERM) Workshops. A risk management survey was conducted with all
employees in all locations in July 2014 to determine the organization’s risk management practices, which it considers to be an integral part
of its ERM system implementation. Furthermore, areas for improvement were identified through the survey.
d)
Corporate Social Responsibility Committee (CSRC). Our CSRC conducts an annual review of the integrated CSR programs to ensure that these
comply with applicable laws, conform with international standards and global trends, and are consistent with Company policies, guidelines
and objectives on CSR. It ensures that the CSR program is integrated and applied consistently throughout the organization and identifies and
recommends program enhancements that will increase effectiveness and overall improvement in company performance and image. It apprises
the Board/President regularly of the accomplishments and issues/concerns related to the integrated CSR program. Detailed enumeration of our
CSRC’s responsibilities is provided in our Corporate Governance Manual and CSRC Charter.
In 2014, our CSRC performed its oversight function on EDC’s integrated CSR program strategies and policies. One meeting was held by the
Committee last November 12, 2014 to discuss items relating to our CSR and environmental initiatives. No other meeting was held within the year
as the 2014 CSR initiatives were mostly operational in nature or were part of the regular course of business. At least 75% of our CSRC members
were in attendance in said committee meeting. The following members of our Board attended said meeting: Federico R. Lopez (Chairman),
Ernesto B. Pantangco (Member), Arturo T. Valdez (Member) and Richard B. Tantoco (Management).
Name of Directors Who Attended*
No. of Meetings Attended
Federico R. Lopez, Chairman 1
Ernesto B. Pantangco, Member 1
Arturo T. Valdez, Member, Independent Director 1
* Richard B. Tantoco, a non-member director, also attended the committee meeting
The following are the activities of our CSRC in 2014:
• KEITECH Replication. The CSRC approved the KEFI organizational changes and amendment of the articles of incorporation and by-laws to
include the KEITECH replication projects. It also approved the redesigning of courses per campus to address site specialization and longterm
market demand at MAGBU, BGBU and FG Hydro.
The CSRC also reviewed the following initiatives: Leyte Rebuilding Program, KEITECH-Leyte Regular and Extension Programs, BINHI
Program, Emergency and Disaster Configuration Program.
e)
Operations Committee. As provided in our Corporate Governance Manual and Operations Committee Charter, the Operations Committee
shall deliberate, review and recommend all matters that will require board approval, and such assignments that may be delegated by the board
on policy, organization / personnel, finance, expenditures, budget, fixed assets, procurement, credit and sales. Effective January 21, 2014, our
Operations Committee charter was amended to reflect the increase in its authority, specifically the “approval of all proposals for expenditure with
amounts of over ₱50 million up to, and including ₱250 million, subject to the exception that all transactions considered to be not in the usual
course of business, including related-party transactions, shall require the approval of the Board of Directors.”
In 2014, the Operations Committee held a total of thirty-five (35) meetings. On the average, sixty percent (60%) of our Operations Committee
members are in attendance in every committee meeting in 2014. Details of the Operations Committee attendance are as follows:
Name of Directors Who Attended
No. of Meetings Attended
Federico R. Lopez 13
Richard B. Tantoco 22
Francis Giles B. Puno 15
Ernesto B. Pantangco 26
Jonathan C. Russell 21
Peter D. Garrucho, Jr. 18
Elpidio L. Ibañez 30
The Operations Committee deliberated a total of sixty-five (65) items, which was approved or elevated to the Board for final approval with a
cumulative worth of about ₱68.3 billion. It likewise provided guidance to the various business units and operating groups on issues pertaining
to the Company’s geothermal drilling operations program, domestic and international expansion activities, project financing, reforestation
program, and occupational safety and health.
This page contains the following GRI indicator(s):
G4-38, G4-46, G4-47.
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