2023 March 20. LT Group SR 2022 - Final

Table of Contents
About this Report 1

Reporting Scope and Boundary 1
Economic Performance Boundary 1
Reporting Approach 2
Sustainability Reporting Guidelines and Standards 2
Sustainability Report Feedback 2
Message from the Chairman 3
Message from the President 4
2022 Highlights and Contribution to the UN SDGs 5
Our Organizational Profile 7

The LT Group, Inc. logo 7
Our Business Strategy 8
Our Corporate Structure 8
Our Businesses 9
Our Markets and Geographical Reach 11
Membership in Associations 12
Sustainability for LT Group 13

Stakeholder Engagement Mechanisms 13
Our Approach to Materiality 17
Economic & Governance 19

Good Governance 19
Organizational Chart 20
Awards and Recognition 20
Driving Sustainability from the Boardroom 21
Risk Management 22
Compliance 23
Anti-Corruption 23
Illicit Trade 25
Supply Chain Management 26
Economic Performance 28
Environment 29
Resource Efficiency 29
Water Management 39
Managing Waste 31
Biodiversity 33
Energy Efficiency and Emissions 34
Climate Change 36
Employees 39
Employment 39
Safety and Well-being 44
Human Rights 47
Customers 49
Marketing and Labeling 49
Customer Health and Safety 50
Customer Engagement and Satisfaction 51
Digital Transformation and Innovation 52
Customer Data Privacy and Security 53
Society 55
Community Relations and Initiatives 55
GRI Content Index 57
SASB Content Index
Task Force on Climate-related Financial Disclosures (TCFD) Content Index

About this Report
Reporting Scope and Boundary

GRI 2-2, 2-3, 2-5
Since 2019, LTG has embraced and integrated sustainable practices toward
resource optimization and operational efficiency. It has since committed
to issuing sustainability reports to mark the Company’s progress toward
heightened accountability, especially with regard to its environmental, social,
and governance performance. The scope of LTG’s 2022 Sustainability Report
includes LTG as the holding company and its local subsidiaries, Asia Brewery,
Eton, PNB, and Tanduay. PNB issues a separate Sustainability Report
containing the Bank’s full disclosure. The Philip Morris Fortune Tobacco
Company (PMFTC), under the management of Philip Morris International Inc.
(PMI), is not covered in full detail in this report and will be included in the PMI’s
sustainability report.
Unless otherwise stated, this report covers the period from the start of January
until the end of December 2022. The Company’s financial data and general
business information are all reported in the 2022 Annual Report, which can be
read in conjunction with this Sustainability Report. No external assurance has
been sought for the non-financial disclosures in this Sustainability Report. Still,
verification procedures and internal reviews have been carried out to ensure the
accuracy of all non-financial information.
Economic Performance Boundary
This report provides a comprehensive account of the financial performance

of LTG as of the year ended December 31, 2022. The financial information in
this report includes the LTG as the parent company and all its subsidiaries and
associates operating locally and internationally. More information can be found
in the 2022 LTG Annual Report.
2022 LT Group, Inc. Sustainability Report 1

Reporting Approach
GRI 2-3, 3-1
To assess significant environmental, social, and governance issues within the

Company, LTG created a framework based on the principle of materiality. This
framework enabled us to determine our key and potential material topics from
internal and external sources. Then, based on inputs from internal stakeholders
through quantitative and qualitative metrics, the list of vital and potentially
crucial material topics was sorted to prioritize their impact on the Group and our
operations and stakeholders.
Sustainability Reporting Guidelines and Standards
This report has been prepared in accordance with the Global Reporting Initiative
(GRI) Standards and the sustainability reporting guide provided by the Philippine
Securities and Exchange Commission (SEC) through Memorandum Circular No. 4,
Series of 2019. This report also incorporates reporting standards and metrics created
by the Sustainable Accounting Standards Board (SASB) and the Task Force on
Climate-related Financial Disclosures (TFCD).
Furthermore, we also disclose our contributions to the United Nations (UN) 17

Sustainable Development Goals (SDGs) to solidify our commitment to realizing
the global sustainable development agenda.
Sustainability Report Feedback

GRI 2-3
Your opinions, feedback, and recommendations will be much appreciated as

we work toward strengthening our sustainability reporting procedures. You may
contact us at [email protected].
Advancing our Sustainability Journey 2

Message from the Chairman
Dear Stakeholders,
Business resilience is a critical element that can help

foster post-pandemic economic recovery. Throughout
the pandemic, LTG demonstrated its ability to adapt
quickly to social and economic disruptions.
With the adaptive leadership of our management team combined with the
resolute efforts of our employees, we have weathered the pandemic and
came out of it stronger.
By any standard, we are convinced that 2022 has been better than previous
years. Our focus has shifted from surviving to slowly reviving our economy.
For its part, LTG is pursuing strategies to stimulate its business growth
and do its share in helping the economy regain its strength. Alongside this,
we are steadfast in our commitment to promoting sustainability within our
operations. This year's sustainability report, with the theme “Advancing
our Sustainability Journey,” shows our steady progress toward becoming a
sustainable and inclusive business despite ongoing challenges.
We are on the cusp of a prolonged economic recovery, and it will not be

easy. Nevertheless, we trust that our collective and unyielding persistence
and enduring optimism will bring us to a new era of growth, stability, and
sustainable development.
Dr. Lucio C. Tan

Chairman and Chief Executive Officer

Message from the President
Dear Stakeholders,
Sustaining a business is undoubtedly challenging, particularly in

times of crisis. From supply chain issues to labor-related concerns,
business owners needed to adapt to the new reality and create
innovative solutions to cope with the post-pandemic transition.
Yet, for the past three years, LTG has remarkably Protecting our biodiversity also remains a top
navigated through the uncertainty, thanks in large agenda for the Company in the coming years.
part to our dedicated employees and customers.
As the crisis continues, our programs and policies
With the gradual re-opening of the economy, we for employee development have also evolved.
are slowly expanding our business activities and We used a holistic approach to support and protect
taking this opportunity to reinvent our company. our employees during the pandemic. Health and
From a financial standpoint, LTG demonstrated medical services were provided, along with various
exceptional performance, culminating in the wellness programs. In addition, we recalibrated our
achievement of its greatest total revenue yet, policies on workplace safety to ensure a safe return
surpassing all previous records since the inception to work. Meanwhile, efforts have been put into
of sustainability reporting. We were able to enhancing the responsiveness and reliability of our
generate a total revenue of Php 128.28 billion, a mechanisms for reporting unethical behavior within
14% increase compared to 2021. Our wins boosted the workplace.
our motivation to work harder and deliver better
value to our customers. In 2022, we placed greater attention on supporting
community recovery in our areas of operation. We
Throughout the pandemic, the strength of our have implemented programs to enhance agricultural
corporate governance was also put to the test. productivity in key areas and training opportunities
We had to divide our attention between balancing for people. In education, we partnered with local
our stakeholders’ needs and responding to the organizations to rehabilitate schools and conduct
pandemic’s business impacts. Despite an unusual school supplies donation drives. Together with our
business scenario, LTG was able to comply with community partners, we rolled out green initiatives
relevant laws and regulations, enforce due diligence to contribute to sustainable development.
in our transactions, and conduct our business in an
ethical manner. In addition, we were able to nurture Overall, we ended 2022 in good form. From now
existing relationships with our partners and broaden on, we hope to accelerate our progress to thrive
ties with other industry leaders. in a post-pandemic world. With the end of the
pandemic in sight, our Company is prepared and
LTG did not waver in our sustainability poised for growth.
commitments, albeit the pace of our sustainability
journey is cautious and conservative. Nevertheless,
we have made steady progress toward deepening
the integration of sustainability principles into our
business practices over the past years. Determined Michael G. Tan
to reduce our carbon footprint, we have consistently President
promoted the judicious use of water and energy
resources alongside proper waste management.

2022 Highlights and Contribution
to the UN SDGs
ECONOMIC AND GOVERNANCE GRI 201-1
128.28
Direct 114.77
112.81
112.76
Economic 101.26
103.66
Php12.08 bn
Value spent in employee
in Php Billions
wages and benefits
2020 2021 2022 2020 2021 2022
GENERATED DISTRIBUTED
55%
of women on the Board
33%
of women in senior Received three Golden Arrows (LT Group, Inc.)
management roles and four Golden Arrows (PNB) at the
2022 ACGS Golden Arrow Awards
ENVIRONMENT GRI 2-4
2022 7,562.54 ML
Water
withdrawal 2021 7,214.09 ML
2020 7,795.68 ML
Two-megawatt solar power generation Green Power Initiative

facility in Lian, Batangas supplying electric • Renewable energy for Luzon
power to the National Grid Corporation of manufacturing sites from Shell Energy
the Philippines (NGCP) • 13.8 megawatt solar photovoltaic (PV)
• 2,447,718.6 kWh total system on manufacturing facilities1
energy generated • Cabuyao's Solar Project that will be
operational by Q4 of 2023
2022 7,867.58 mt
Waste
generated 2021 6,210.40 mt
2020 8,839.50 mt
Carbon dioxide
sequestration potential
2022 2.55 million GJ of 493.66 metric tons
Overall
via the Legacy Forest
energy 2021 1.91 million GJ
consumption
2020 3.24 million GJ Produced 22 tons of
various crops via
the Agroforestry Farm
2022 218,178 tCO2e Project at Barangay
Total
Digdig in Carrangalan,
carbon 2021 263,163 tCO2e Nueva Ecija
footprint
2020 259,435 tCO2e
1
Asia Brewery

EMPLOYEES GRI 404-3
12,325 26,460,502 safe man hours

employees covered
by the OHS 22% of trainings are focused on mental
management system health of all employees
12,325
total
employees
425,508 41%
total training female 100% received regular performance
hours employees and career development review
CUSTOMERS
ZERO 1,575 ATMs, 179 CAMs, and

incidents of non-compliance 8,367 POS Terminals
with regulations on customer
health and safety 25,341 enrolled users and
6,504 new enrollments in the
PNB Cashnet mobile app
SOCIETY
Php 170,908 amount of in-kind

Php 25.91 million total donations for Brigada Eskwela,
community investments Balik Eskwela Program, Teacher's
Day, Give a Gift Reading
Php 40,000/year quarterly
tilapia fingerlings dispersal Donated 30 decommissioned desktop
at Lian River computers and one laptop for the use of
students of Dr. Pablito V. Mendoza Senior HS in
Php 36,000/year Rice Bustos, Bulacan
Donation to Fisherfolk
of Brgy. San Diego, Lian, 36 Dual Training System Trainees and 435/
Batangas month of allowances provided and one Dual
Tech School maintained via the Brigada Eskwela
Program
150kg of hybrid palay
Career orientation sessions for 41 senior
seedlings donated to
high school beneficiaries of the TYKFI-STA
farmers of Masaganang
Scholarship Program for Farmers’ Children
Palayan Project in Nueva
Ecija
School bags donated to 415 elementary
school pupils in Sta. Cruz, Ilocos Sur
367,108.51 metric tons
of Liquid Fertilizers
10kgs sacks of white rice donated to over 522
donated to Sugarcane
pupils and 29 teachers in Sta. Cruz, Ilocos Sur
Farmers

Our Organizational Profile GRI 2-1
The LT Group, Inc., or the companies under the

same, have been delivering a variety of products
and services for over 6 decades.
The conglomerate was organized in 2012, through

Tanduay Holdings, Inc (THI), which was later The LT Group, Inc. logo
renamed in the same year as LT Group, Inc.
The LT Group, Inc. logo is a symbol of strength
In the same period, the Company’s Board of and solidarity, the essence of our logo. The clean,
Directors authorized the acquisition of shareholdings balanced lines and curves are central elements
in Fortune Tobacco Corporation, Philippine National that form a mystical symmetrical tree. Drawn in
Bank, Allied Banking Corporation, Asia Brewery, an Eastern-Oriental style, it gives a hint to the
Inc., and Eton Properties Philippines, Inc. Company’s Chinese heritage.
The series of acquisitions made by LTG in 2012 Tree is life. Life is growth. Like a tree, a company
expanded its investment portfolio to include tobacco, with firm roots, properly nurtured, will continuously
beverages, property development and banking. grow and give value.
Majority owned by Dr. Lucio C. Tan and his family
and assignees, these subsidiaries, combined with The tree’s trunk is upright, and the branches spread
the LT Group, Inc., are collectively known as the out, a symbolic consolidation of the subsidiaries and
Group in this Sustainability Report. stakeholders within two circles — the inner circle for
continuity, and the outer circle for solidarity.
With its growing consumer products, LTG is set to
continue innovating its product lines and expanding
its market base overseas.
In terms of ownership, LTG’s ultimate parent

company, Tangent, has a 74.36% stake in the
Company as of December 2021. Currently, LTG’s
head office is at the Bonifacio Global City, one of
the most prominent central business districts in the
Philippines.

Our Business Strategy
Our Long-term Strategic Objectives
Vision Mission
To be a world-class conglomerate Anchored to its Vision, the LT Group, Inc. commits:

at the forefront of Philippine • To increase stockholder values through long-term growth in its
economic growth, successfully major business groups.
maintaining a strong presence • To continuously improve the value of its products and services
and dominant position in key and to provide consumers with more and better choices.
Philippine industries while • To build the largest, most effective distribution network and
ensuring continuous benefits widest customer reach in the Philippines.
to its consumers, communities, • To leverage synergies between its various businesses to
employees, business partners, continuously improve revenues and cost structure.
and shareholders. • To enhance the welfare of our employees and the communities
where we live and work.
The Board of Directors reviews and approves the Vision and Mission Statements annually. The latest reviews were on February 9, 2021,
and February 8, 2022.
Our Corporate Structure
LTG’s corporate structure illustrates the relationship between the parent company and its
subsidiaries. Except for Victoria Milling Company Inc., each of the subsidiaries under LTG also
has its own subsidiaries, as outlined in its corporate structure. Some of these subsidiaries have
supply chains that are vertically integrated for more efficient business operations.
1 Owns 50% less 1 share

2 Voting control at 59.83%
3 At 30.17% as of the end of 2016;
increase in stake from the conversion
of convertible notes

Our Businesses GRI 2-6
Beverages mid-income high-rise and horizontal residential

developments, and land leases.
To date, Eton has 36 projects under its wing, including

Parklinks, its latest joint-venture development with
Asia Brewery, Inc. (Asia Brewery) is one of the Ayala Land, Inc., along E. Rodriguez Ave. in Quezon
leading providers of top-quality and affordable City. In addition, we have delivered two townships,
beverage products to the mass market. Established mixed-use development, eight commercial centers,
in 1982, the company began by introducing a new six BPO hubs, one event venue, one hotel, one
beer brand to break the monopoly in the Philippine serviced residence, eight high-rise condominiums,
beer industry. From a single-product company one mid-rise development, and six residential
engaged in alcoholic drinks, Asia Brewery has subdivisions. Among the completed office buildings
since expanded its line to include ready-to-drink are Centris Cyberpods 1-5 in Eton Centris, Eton
tea, energy drink, yogurt, and soymilk products. Corinthian Cyberpod in Ortigas, and eWestPod at
Asia Brewery’s diverse portfolio of well over (40) Eton WestEnd Square in Makati.
alcoholic and (138) non-alcoholic brands include
Beer na Beer, Brew Kettle, Colt 45, Tanduay Ice, Tobacco
Tiger Black, Asahi, Cobra Energy Drink, Nestea,
Sunkist, Absolute, Summit, V-Soy, Vitamilk, Spritz
and Paraiso. Over the past years, Asia Brewery is
rapidly earning a reputation for its non-alcoholic and
alco-mix beverages and products.
In 2010, Philip Morris Philippines Manufacturing
Property Development Inc. (PMPMI) and Fortune Tobacco Corporation
(FTC) entered into an agreement to combine their
businesses and formed PMFTC Inc. (PMFTC).
PMPMI traces its roots from the licensing agreement
entered into by Philip Morris International with La
Suerte Cigar and Cigarette Factory to manufacture
Eton Properties Philippines Inc. (Eton) is a real estate and sell Marlboro in 1955. Meanwhile, FTC was
firm established in 2007 with a vision to become the established in 1965 by Dr. Lucio C. Tan to produce
most trusted property developer in the country. Eton cigarettes for the Philippine market. FTC achieved
has a broad experience in the real estate industry market success early on and was responsible
and specializes in delivering commercial, office for introducing some of the most successful local
and residential property developments in strategic cigarette brands in the Philippines, including the
locations around the country. Fortune, Champion and Hope menthol brands. Prior
to the creation of PMFTC, FTC was the largest
Eton is one of the biggest real estate developers domestic tobacco company in the Philippines.
in the Philippines. Our foreign counterpart, Eton
Properties Ltd, is an established real estate brand in Today PMFTC has a diverse portfolio of international
Hong Kong and mainland China. With an extensive and domestic brands covering all price points in the
land bank in strategic locations all over the country, Philippines. PMFTC manufactures 5 out of the top
we specialize in office projects, commercial centers, 10 brands available in the market today.
mixed-use township developments, high-end and

Banking Distilled Spirits
The Philippine National Bank (PNB) is one of Incorporated in May 1988, Tanduay Distillers
the largest and oldest banks in the Philippines. Inc. (Tanduay) is a company mainly engaged in
Operating as a government bank from its manufacturing, compounding, bottling, importing,
establishment in 1916 until its privatization in 2007, exporting, buying, and selling liquor products.
PNB has earned a reputation as the “Bangko ng Tanduay sells liquor such as rhum, brandy, whiskey,
Bayan” or the people’s bank. Throughout the past and gin either in retail or wholesale. Apart from
106 years, PNB has withstood the test of time by liquor products, Tanduay also sells equipment,
providing stable and reliable customer-first services materials, and supplies related to the manufacturing
even during the most challenging financial and of these products. Tanduay has two subsidiaries:
social crises. Absolut Distillers Inc. (ADI) and Tanduay Brands
International, Inc. (TBII).
The Bank believes it is responsible for upholding
its stakeholders’ right to prosperity and ensuring Absolut Distillers Inc., originally known as the
its customers have pathways to fulfilling lives. As a Century Distillery Corporation (CDI), started as
result, PNB has constantly maintained a customer- a small distillery in the late 1980s. By 1990, CDI
centric approach with a passion for innovation and eventually became Absolut Chemicals Incorporated,
service excellence. and LTG acquired it. ADI aspires to be a word
class producer of quality alcohol while promoting
In over a century of continuous operations, the sustainable development by empowering its
Bank’s mission has constantly evolved to respond employees, stakeholders, and communities. ADI
to the needs of the changing times. For instance, offers fine ethyl alcohol and liquified carbon dioxide
PNB pioneered rural banking services to support used in alcoholic and non-alcoholic beverages.
the agriculture sector in the 1920s. In 1917, the In addition, ADI manufactures bioethanol used to
Bank marked its entry into the field of international produce fuel bioethanol.
banking with the opening of its first overseas branch
in New York. Today, the PNB has positioned itself Tanduay Brands International mainly handles the
as a leading and dynamic Filipino financial services marketing of Tanduay products. In 2003, TBII was
group with a global reach committed to delivering incorporated in the country, and three years later,
valuable products and services. LTG sold its 100% ownership interest in TBII to
Tanduay. The following year, the company started
its commercial operations and opened its first store,
“Tanduay,” in Century Park Sheraton Hotel Manila.

Our Markets and Geographical Reach GRI 2-6
LTG is a Filipino-owned and controlled company We operate 651 Philippine branches and offices
that enjoys a significant presence in the domestic plus 71 overseas branches, subsidiaries, and
market. The Company aims to broaden its global representative offices in 17 jurisdictions in the
operations to realize its vision of becoming a world- United States, Europe, the Middle East, Asia &
class business firm delivering outstanding products Oceania.
and services.
Tanduay has a broad range of liquor products
Asia Brewery’s market reach is limited to local mass such as rhum, gin, vodka, whiskey, cocktails,
consumers, although we aspire to bring Filipino- and medicinal wine. Meanwhile, ADI is engaged
branded beverage products to a wider international in producing various products ranging from
market. To date, Asia Brewery sells alcoholic and bioethanol and distilled products to solar power.
non-alcoholic beverages and products through ADI has been registered as a bioethanol producer
various distribution facilities nationwide. At least with a capacity of 30 million liters per year and
11 distribution channels are in Luzon, and two are started the commercial operation of its bioethanol
in Mindanao. Aside from these channels, we are plant in 2016. In addition, ADI manufactures and
increasing our customer reach through our exclusive sells denatured alcohol, liquid carbon dioxide
distributors’ network of 39 sales offices, 15 sub- and dry ice. Meanwhile, ADI also operates a two-
warehouses, and 7 depots. megawatt solar power generation facility, licensed
under the Renewable Act of 2008. Under a 25-
Eton has a diversified real estate portfolio ranging year solar energy supply contract, ADI supplies
from residential to commercial projects. We lease electric power through its solar power system to
and sell residential condominium units, office and the National Grid Corporation of the Philippines
commercial spaces, and buildings. On top of these, (NGCP) at the approved Feed-In-Tariff rate of
the company also offers property management and Php8.69 per kilowatt hour.
hospitality services.
Through fifteen exclusive distributors, Tanduay
PNB offers a wide range of traditional and innovative serves more than 215,000 points of sale as of
services to individual and institutional customers. 2022. These distributors operate at least 40 sales
These banking and financial services include offices and 48 warehouses nationwide. Through
deposits, insurance, trade finance, lending services, TBI, in-house sales staff are employed by Tanduay
trust, treasury, and remittance products and to provide marketing and administrative support to
services. We complement our traditional banking its distributors. In addition, third-party transportation
operations with digital banking through our internet companies offer logistical services for Tanduay’s
portal and digital apps for faster transactions. products. ADI’s bioethanol and other by-products
are delivered through distillery tankers or collected
Our customer base is composed of private and by customers at distillery plants.
public sector organizations such as corporations,
the national government, local government
units, government-owned enterprises, and other
government agencies. Moreover, we also cater to
small and medium markets and retail customers.

Membership in Associations GRI 2-28 PNB
• Philippine Association of Management Accountants –
LTG joined various industry, trade, and professional President
associations in the country to enhance its business MEMBER
profile and expand its business connections. In some • ACI Philippines
of these organizations, LTG plays crucial leadership • Association of Certified Fraud Examiners
positions. By actively participating in external • Association of Certified Public Accountants in
organizations, LTG has acquired insights into industry Commerce
updates, best practices, and emerging trends. • Association of AML Officers (AMLO)
• Association of Bank Compliance Officers (ABCOMP)
Asia Brewery • Agusan Chamber
• Cabuyao River Protection Advocates (CaRPa) – • Asian Bankers Institute
President • Asian Bankers Association
MEMBER • Bankers Institute of the Philippines
• People Management Association of the • Bankers Association of the Philippines
Philippines (PMAP) • Bank Marketing Association of the Philippines
• Employers Confederation of the Philippines • Bank Security Management Association
(ECOP) • British Chamber of Commerce in the Philippines
• Philippine Society for Training and Development • Business for Sustainable Development (BSD)
(PTSD) • Credit Management Association of the Philippines
• Semiconductor and Electronics Industries in the • Credit Card Association of the Philippines
Philippines (SEIPI) • Executives Finance Management Association
• Advocates, Leaders and Professionals in • Federation of the Philippine Industries, Inc.
Environment, Safety and Health (ALPrESH) • Financial Executive Institute of the Philippines
• Association of Safety and Health Practitioners • Financial Technology of the Philippines
(ASPPI) • Good Governance Advocates and Practitioners of the
Philippines (GGAPP)
Eton Properties • Information Systems, Audit and Control Association
• Urban Land Institute – Founding Member • Institute of Corporate Directors
• Rotary Club – Honorary Member • Institute of Internal Auditors of the Philippines
MEMBER • Integrated Bar of the Philippines
• Philippine Society for Talent and Development • International Association for Business Communicators
• Employees Confederation of the Philippines (IABC)
• Philippine Association of National Advisers • Japanese Chamber
• Korean Chamber
Tanduay • Mabuhay Miles
• Ethanol Producers Association of the Philippines • Makati Commercial Estate Association, Inc.
(EPAP) – Chairman • Management Association of the Philippines
• CARD Foundation – Chairman • Money Market Association of the Philippines, Inc.
MEMBER • People Management Association of the Philippines
• Employers Confederation of the Philippines • Philippine Association of National Advertisers, Inc.
(ECOP) – Member • Philippine Chamber of Commerce and Industries, Inc.
• Distilled Spirits Association of the Philippines • Philippine Business Coalition for Women Empowerment
(DSAP) – Member • Philippine Payments Management, Inc.
• Public Relations Society of the Philippines (PRSP)
• Rotary Club
• Tax Management Association of the Philippines
• The Financial Markets Association, Inc.
• Trust Officers Association of the Philippines
• Women’s Business World

Sustainability for LT Group
Stakeholder Engagement Mechanisms GRI 2-29
HOW WE ENGAGE KEY CONCERNS RAISED COMPANY’S RESPONSE
Government Agencies and Regulators

• Policy dialogues, • Request for private sector • Participation in and/or
consultations and meetings, support for government expression of support for
and legislative hearings Initiatives, programs, or government initiatives,
• Regular reportorial policies programs, or policies
requirements and other • Completion/clarification of • Correspondence with
official correspondence compliance requirements relevant government
• Briefings, forums, webinars • Conduct of sound agencies
and conferences (primarily business practices and risk • Timely and accurate
online) management submission of regulatory
• Annual audits • Sustainability of the company reports
• Formal proceedings • Compliance to laws, rules, • Transparency and
• Membership in committees and regulations accountability
organized by the government • Transparency and • Proactive dialogue
• Periodic examinations accountability • Full compliance/adherence
• Emails / Correspondences • Liquidity and capital to banking laws, rules, and
• Virtual Meetings adequacy to operate as a regulations in the country and
• Webinars universal/commercial bank overseas
• Timely and accurate
submission of financial and
regulatory reports
Customers
• Email • Better customer engagement • A reliable 24/7 customer

• Calls/SMS and experience service hotline
• Social Media Platforms • Fast, efficient and competent • Information campaigns and
• Messaging Apps customer service seminar training
• Websites • Accessibility and • Digital Customer Complaint
• Retail Partners convenience of customer Handling Process
• Customer Survey Forms touchpoints • Enhanced Digital Platforms/
• Data security risks Online Transactions
• Protection of customer • Cybersecurity Tools
information • Ensure 100% compliance with
• Safety and quality of products requirements on standards
• Responsible advertisement of and regulations
products • IATF regulation and standards
• Health and safety of • Presence across the country
customers

• Products and services that and overseas, offering

are responsive to their relevant products, services,
current needs and solutions
• Updates and information • Financial Wellness Sessions,
on operating hours, new Roundtable Discussions,
products and services, Economic Briefings
promos, etc. • Clear and timely customer
updates or advisories
(i.e., schedule of branch
operations, new product/
service, promos, etc.)
Employees
• Consultation • Hiring and retaining talents • Competitive salary

• Tool box meetings • Handling grievances • Year-round initiatives and
• Employee-related activities • Attracting and retaining programs to promote employee
• Labor union talents well-being; in-house and external
• Annual Shareholders' • Financial results of the Group webinars; employee welfare and
Meeting • Future plans of operations wellness (medical and mental
• Annual Press Briefing • Other significant changes on teleconsultation hotlines, power
• Quarterly Analysts' Briefing the operations of the Group classes, etc.)
• Consultation Meetings with • Work-life balance • Employee recognition
the Congress • Competitive compensation • Performance appraisal
• Conference/telephone calls and benefits • Labor management committee/
• Regular virtual meetings with • Safe and secure work council meetings
relationship managers and environment • Offer career opportunities
branch personnel • Training, development and • Labor Management Committee
• Website updates career progression (LMC)
• Email communication • Improvement of infrastructure • Grievance mechanism
• Social Media Updates and and facilities • Regular checking and
Messaging Apps (Facebook, • Opportunities for maintenance of on-site offices/
Messenger, Twitter, volunteerism and community branches and IT infrastructure (i.e.,
Instagram, Viber, WhatsApp) engagement hardware, software, and systems)
• Virtual Events • On-site/off-site volunteerism or
• Yearly outing/ team building community outreach opportunities
for our employees
• Development and implementation
of policies that safeguard the
safety, growth, and well-being of
our employees

Communities
• Shuttle services
• Corporate Social • Access to existing public • Donations of Bottled Water
Responsibility Activities infrastructure (ABI White Label) during
• Investors' Conference • Community programs and calamities (typhoons,
• Plant Visits initiatives earthquakes, fire, flooding)
• Virtual Financial Literacy/ • SEC and PSE reports should • Tree Planting
Financial Wellness sessions be disclosed on time and • Brigada Eskwela
• Virtual meetings and events/ are available for viewing • Adopt-a-River (Clean-up drive)
activities (i.e., donations, and downloading on the • Networking and coordination
turnovers, etc.) Group’s website • Promote a for certain CSR or
• Charitable/ Philanthropic greater understanding of the sustainability-related projects
Contributions businesses and activities
• Environmental and • Knowledge of basic money • Financial inclusion through
sustainability-related projects management financial literacy programs
or initiatives • Projects that support the • Partnerships with credible
• Partnerships with credible economic, social, and social development
NGOs, Foundations, environmental landscape of organizations, LGUs,
academic institutions, LGUs, the community academic institutions, and
or Civil Society Organizations • Disaster or emergency civil society organizations
response aligned with the CSR and
• The school was temporarily sustainability thrusts of the
closed due to pandemic Bank
• DTS Trainees who were • Support for charitable and
trapped within the company's philanthropic causes on
premises education, environment, and
social welfare development.
• Support for affected
communities where the Bank
has a presence, especially
during times of natural
and man-made calamities
(i.e., relief operations),
with assistance from our
employees, our subsidiaries,
and affiliates.
• Continuous training whenever
possible
• Food and accommodation and
allowances
• Extended financial assistance
to the partner school
• Allow the request to conduct

Suppliers
• Provide feedback and discuss
• Supplier Performance • Partnership with Suppliers on the Supplier Performance
Evaluation the Consignment Program Evaluation through email and
• Consignment Program • Supply chain risks meetings
(Partnership) • Timely and accurate payment • Ensure reliability and inventory
• Electronic/Physical Letters of products and services control/management of
• Virtual meetings commissioned/secured consigned raw materials
• Phone calls/SMS • Ethical and efficient supplier • Annual review of vendor/
accreditation process supplier performance
• Updates/information on any • Orientation sessions/briefings
changes in the procurement/ for vendors/suppliers
outsourcing policies and • Organized biddings,
processes a thorough review of
• Non-compliance incidents or documentation submitted,
practices proper accreditation of
suppliers in compliance
with relevant standards and
requirements
• Review of necessary
documentation and facilitation
of timely release of payments
• Foundation for the creation
of a Bank-wide Sustainability
Procurement and Supply
Chain by organizing webinars
for the Corporate Services
Division and other concerned
business units

Our Approach to Materiality GRI 3-1, 3-2
We conducted a thorough materiality assessment In October 2022, we held a materiality assessment

to understand critical environmental, social and session to discuss the various applications
governance issues that matter to the Company’s of sustainability in the Company and identify
stakeholders and develop strategies to address sustainability topics relevant to the Group. During
them. The materiality assessment entails identifying the session, the application of sustainability in
topics relevant to us and our subsidiaries. To assess our sustainable development plans and programs
the scope and objectives of the engagement with was tackled. Towards the end of the session, a
its sustainability partner, we organized a series short survey was conducted to solicit feedback on
of consultation sessions with the Sustainability our sustainability initiatives. Survey participants
Reporting Project team. From these sessions, the were asked to indicate their profiles and rank the
list of sections to be included in the survey forms company’s impact based on the rating system
for the materiality assessment was finalized. The provided to them.
sections were revised and changed into specific
questions that can generate insights enabling us to
plan, implement, and achieve measurable results.
Following the assessment, our Senior Management organized an in-person

validation session of the outcome on January 9, 2023, in Makati City to accurately
represent the Company’s sustainability performance. Furthermore, the Risk
Management Committee conducted a confirmation session on January 10, 2023,
to endorse the results of the validation session.

Economic and Environment Employees Customers Society
Governance
• Good • Resource • People Safety, • Customer • Community

Governance Efficiency Security and Data Privacy Relations
• Economic • Climate Well-being and Security • Human Rights
Performance Change/ GHG • Employee • Customer Protection
• Ethical Emission Skills and Engagement • Supply Chain
Operations Competency and Management
• Socio- Development Satisfaction
Economic and • Employment • Marketing and
Environmental • Labor Labeling
Compliance Relations and
• Illicit Trade Diversity

Economic & Governance
Good Governance GRI 2-9, 2-10, 2-11, 2-12
LTG understands the importance of effective Under the Group’s charter, the Nomination and
corporate governance as a driver of company Compensation Committee ensures a formal and
performance. The Company’s Board of Directors transparent Board nomination process in selecting,
provides strategic guidance and supervises the compensating, monitoring, and, if needed, replacing
management and operations of the business. Under key executives. The Committee is also responsible
the Board of Directors are five committees tasked for overseeing the Board’s succession planning.
to oversee operations and ensure the Company Dr. Lucio C. Tan is the Committee Chair, while Ms.
follows sound corporate governance practices. Karlu T. Say, Mr. Michael G. Tan, Mr. Lucio C. Tan
These committees include the Audit Committee, III, Ms. Juanita T. Tan Lee, Ms. Mary G. Ng, and Mr.
Risk Management Committee, Executive Wilfrido E. Sanchez are the Committee members.
Committee, Nomination and Compensation
Committee, and Corporate Governance Committee. LTG created a Corporate Governance Committee
to promote good governance within the Group
The Audit Committee assists the Board in and lead the Company to become a world-class
performing oversight functions on financial reporting, conglomerate. This Committee oversees the
internal control, audit, and monitoring compliance periodic performance evaluations of the Board,
with laws and regulations. This Committee is its committees, and the executive management.
composed of five members, four of which, including These evaluations aim to ensure that a director is
the Chairman, are independent directors. The fully qualified and capable of performing the duties
Committee members are Mr. Johnip G. Cua as and responsibilities of the position. The Committee
Chair and Ms. Juanita T. Tan Lee, Ms. Florencia G. is chaired by Ms. Florencia G. Tarriela and is
Tarriela, Mr. Wilfrido E. Sanchez, and Ms. Mary G. required to meet at least twice a year or as needed.
Ng as members. Committee members include Mr. Michael G. Tan,
Mr. Lucio C. Tan III, Ms. Juanita T. Tan Lee, Mr.
Meanwhile, the Risk Management Committee Johnip G. Cua, and Mr. Wilfrido E. Sanchez.
oversees the management of the Group’s financial
and non-financial risks, including related party Over the years, no changes have been made to the
transactions. It is the responsibility of the Committee Group’s corporate structure, size, and ownership.
to review risks and manage the overall risk exposure
of LTG. Currently, Ms. Mary G. Ng serves as the
Chair of the Committee, while Mr. Johnip G. Cua,
Ms. Juanita T. Tan Lee, Ms. Florencia G. Tarriela,
and Mr. Wilfrido E. Sanchez serve as Committee
members.
The Board gives the Executive Committee powers

to manage the business and affairs of LTG, but it
is excluded from exercising any powers expressly
reserved to the Board of Directors. Dr. Lucio C. Tan
chairs this committee, and its members include Ms.
Karlu T. Say, Mr. Michael G. Tan, Ms. Vivienne K.
Tan, Ms. Juanita T. Tan Lee, Mr. Lucio C. Tan III, and
Mr. Johnip G. Cua.

Organizational Chart GRI 2-9
The LTG Board of Directors is the highest governing body responsible for
implementing the Company’s strategy. The Board of Directors is assisted by
five committees and oversees the governance of the entire conglomerate. The
Company’s Chief Executive Officer, President, and Chief Operating Officer
report directly to the Board of Directors. Each officer in the organizational
structure plays a crucial role in driving LTG’s corporate performance.
Board of Directors
Executive Nomination and Corporate Governance Audit Committee Risk Management

Committee Compensation Committee Committee Committee
Chief Executive
Officer
Chief Audit Compliance
President and Chief Executive Officer
Operating Officer
Corporate Corporate Chief Financial Officer/ Chief Risk

Treasurer Legal
Secretary Planning Data Protection Officer Officer
Investor Information
Accounting
Relations Technology
Awards and Recognition

The Company’s efforts in improving its practices
and policies to ensure compliance with the
Philippine Code of Corporate Governance and the
internationally recommended corporate governance
practices by the ASEAN Corporate Governance
Scorecard (ACGS) was not left unnoticed by the
Institute of Corporate Directors (ICD), the duly
appointed domestic ranking body of the SEC.
As a testament of the Company’s dedication and

commitment, it received the three (3) golden arrow
recognition last January 20, 2023. This golden
arrow is awarded by the ICD to companies that
achieve a score of at least 80 points in the ACGS
Assessment. For the year 2021, the Company
garnered a score of 106.09 points out of the
possible 130 points.

Driving Sustainability from the Boardroom GRI 2-13, 2-14, 2-15, 2-16, 2-17, 2-18, 2-19, 2-20, 2-22
LTG’s Board of Directors plays a crucial role the duties and responsibilities of the Directors and
in driving sustainability within the Company. Committee members based on the Revised Manual
Balancing the Board’s corporate responsibility and on Corporate Governance and Charters. Annually,
sustainability leadership role is critical to boosting the form is filled out by the Chairman, Directors,
LTG’s bottom line. and all Committee members to evaluate their own
performance as well as the performance of the
Members of the Board oversee the overall Chairman, Directors and Committee members.
management of the Company and set the purpose,
values and strategies of LTG. The Board is The remuneration of Board members is based
bound to adhere to the highest ethical standards on the Nomination and Remuneration Committee
of corporate governance. Within the Company, Charter which explicitly prohibits directors from
all Directors and key Officers are required to being involved in deciding their own remuneration.
disclose to the Board of Directors or to the Risk As a policy, LTG bases the compensation of its
Management Committee any material transaction officers on their performances, and it does not
or relation that would result in actual or potential disclose the salary of its officers.
conflict of interest. In cases where it is unclear
whether an act or transaction will result in a conflict As the overall lead of the Company’s sustainability
of interest, the Director, Officer or Employee should initiatives, the Board is responsible for setting
consult with the Risk Management Committee of policies, directing programs, managing sustainability
the Corporation, the Chief Legal Officer, or his or impacts, and leading LTG’s sustainability report.
her immediate supervisor, whichever is applicable Upon the establishment of LTG’s Sustainability
based on the personnel’s rank. Reporting Framework in 2019, the Company has
been regularly submitting its Sustainability Report
LTG’s Board delegates its authorities, including the subject to review and approval of the Board.
responsibility of managing economic, environmental
and social concerns, through the Committees in the For PNB, the institutionalization and adoption
Company and its subsidiaries. Each subsidiary has of sustainability principles within the corporate
a Committee Chairman and executives appointed governance, risk management framework, and
by the Board to deal with these topics. Key Directors strategic objectives of the Bank is the main
and Officers of LTG undergo seminars with topics responsibility of its Board. The Bank’s Corporate
relating to Environment, Social and Governance Governance and Sustainability Committee
(ESG). Stakeholders of the Company and assists the Board in performing its governance
subsidiaries are consulted on sustainability-related responsibilities, including the Nomination and
topics to gather their concerns and issues. These Remuneration Committee functions, ensuring
issues are compiled and forwarded to the Board in compliance with and proper observance of
the form of Committee reports. good corporate governance. It also oversees
the consistent implementation of the Bank’s
To assess the performance of the Company’s sustainability framework.
highest governance body, an annual self-
assessment is conducted by the Board of Directors
to review their performance and revisit their roles
and responsibilities. To make the evaluation process
more efficient, LTG has developed an electronic
Performance Evaluation Form (“form”) outlining

Risk Management
Effectively Managing business risks helps the management’s activities in handling credit, market,
Company protect its operations, avoid losses, and liquidity, operational legal, and other related risks.
achieve business objectives. In an environment of The Audit and Risk Committee receives information
uncertainty, LTG is determined to enhance its risk from the management on risk exposures and risk
management system and find ways to turn these management activities. Yearly, the committee
risks into opportunities. reviews our risk appetite levels and risk tolerance
limits against the developments in the business
We formed a Risk Management Committee and its context, regulatory frameworks, and other
composed of mostly independent Directors to lead significant events that may impact the business.
in monitoring the Company’s risk environment
and provide direction to mitigate risks that may The Risk Oversight Committee (ROC) is one of
negatively impact our goals. This Committee PNB’s eight board committees. It assists the board
regularly holds meetings to identify the material in overseeing the risk profile and approving the
risks facing the Company and presents to the Board risk management framework of PNB, including
its assessment and recommendations on issues its related allied subsidiaries and affiliates. It is
related to EESG. The Board decides the course of mandated to set the Bank’s risk appetite; approve
action to be taken by the Company based on the frameworks, policies, plans, and programs for
recommendations of the Committee. As part of its managing risks; and accept risks beyond the
Risk Oversight and Related Party Transactions approval discretion provided to management.
(RPTs) Functions, the Committee also reviews and
screens related party relationships and transactions Specific risks have been identified by Tanduay
to protect the interest and reputation of LTG. that are crucial to its business operations, such
as market risk, raw material supply risk, credit
The Company’s subsidiaries also established their risk, trademark infringement risk, regulatory risk,
respective Risk Management Committees tasked safety health and environmental law risk, and
with formulating and setting directions on mitigating counterfeiting risk. Tanduay’s primary market is
and resolving business risks. The subsidiaries’ lower-income consumers who are highly sensitive
Risk Management Committee head or Chief Risk to price changes. Thus, the entry of new competitive
Officer is required to submit a report to LTG’s Risk and substitute products suitable to the purchasing
Management Committee, which elevates the report power of its consumers will adversely affect
to the Board and formulates solutions addressing Tanduay’s financial position and performance. To
the identified risks. The Board deliberates the address this risk, Tanduay continuously expands its
proposed recommendations and decides on the portfolio of products and constantly monitors market
action to take to manage the risks. trends, and consumer needs to identify potential
opportunities and respond to customer preferences.
In 2022, the Company’s Risk Management
Committee organized six meetings to discuss the Tanduay regularly monitors its molasses and alcohol
current risk exposures of LTG based on submitted requirements, provides adequate storage to stock
Management reports. its raw materials, and maintains a network of local
and foreign suppliers to boost the resilience of its
Eton identifies and responds to business-related supply chain. We manage credit risk by thoroughly
risks using its Enterprise Risk Management policy. assessing the credit worthiness of our distributors,
One of the committees under the company’s Board and for the past twenty years, Tanduay’s credit
is the Audit and Risk Committee, which oversees dealings with existing distributors have been

Compliance GRI 2-27
generally satisfactory. We address trademark The culture of compliance has always been
infringement and counterfeiting risks by developing a bedrock of LTG’s commercial operations.
safeguards and taking preventative actions. Accordingly, the Company’s management requires
Tanduay registers its brand names, trademarks, and all employees, officers, directors, and personnel to
other intellectual property rights with the Intellectual comply with all laws, rules, and regulations relevant
Property Office (IPO) in all countries where its to LTG’s business.
products are being sold, while products under
development are registered in advance. Further, we PNB’s Board Audit and Compliance Committee
actively evaluate counterfeiting risk and undertake assists the Board in performing its oversight
legal actions against violators. responsibility relating to financial reporting process,
internal control systems, audit process, and
With the nature of its core business, Tanduay monitoring of compliance with applicable laws, rules,
undergoes extensive review from regulatory bodies. and regulations.
To manage regulatory risks such as the imposition
of a higher specific tax, we resort to increasing our Tanduay gives serious consideration to its
selling prices and reducing our production costs. compliance with laws and regulations. The
In addition, Tanduay coordinates with appropriate Company’s Corporate Governance Committee
regulatory agencies and industry associations to diligently monitors business units responsible for
check potential problems and policy direction shifts. ensuring compliance with regulatory agencies.
Compliance with safety, health, and Across the Company, there was no record of
environmental laws and regulations is a top significant non-compliance with laws and regulations
priority for Tanduay. As such, we strictly follow relevant to our business operations.
government regulations and have invested in
an environmental protection system for our
physical facilities, all of which have been cited as Anti-Corruption GRI 3-3, 2-25, 205-2, 205-3
compliant by environmental regulators. Supporting and sustaining LTG’s long-term
development as a business requires vigilance
against corruption, unethical behaviors, and unfair
business practices. To create a fair business
environment, we are bolstering our anti-corruption
efforts by strictly enforcing the Group-wide Code
of Business Conduct and Ethics, expanding
educational campaigns, and strengthening
mechanisms for reporting unethical practices.
At Asia Brewery, business transactions are conducted

under high ethical standards. Internal rules and
regulations prohibit corruption, monopoly, anti-
competitive behavior, and other unethical business
practices. Corruption and unscrupulous behavior are
prevented within the supply chain by implementing
a competitive procurement process subject to the

Executive Committee’s review and approval. To bribery, through the Whistleblower Hotline using
ensure understanding and compliance with the Code call, text, or email. All reports are kept confidential
of Conduct, we conduct orientation programs and to encourage reporting of bribery and corruption-
send all employees reminders on our whistleblowing related acts, and the whistleblower is protected from
policy and grievance mechanisms. Complaints and harassment, retaliation, or bullying. The harassment
reports, if any, are investigated thoroughly, and or victimization of the whistleblower is treated as a
sanctions are imposed as deemed appropriate. serious disciplinary offense, which will be dealt with
under the PNB’s code of conduct.
Upholding business integrity is always crucial for
Eton. Thus, the company’s Corporate Governance At Tanduay, honesty and integrity are core values
Manual outlines the ethical requirements that that govern our business dealings. Our policies
management and employees should follow. The and guidelines to promote ethical behavior are
management officers, executive directors, and key anchored on LTG’s Code of Ethics, Conflict of
officers must disclose to the Board of Directors or Interest Policy, and Corporate Code of Conduct. To
the Audit and Risk Committee any potential conflict ensure employees act ethically and adhere to anti-
of interest arising from their business dealings. In corruption laws, Tanduay disseminates company
line with Eton’s Related Party Transaction Policy memos and conducts onboarding orientation
of the Code of Business Conduct and Ethics, all explaining our Code of Conduct and core values.
company employees, including its subsidiaries, Tanduay also designed a Work Attitude and Values
should divulge business and family-related Enhancement program to promote awareness of
transactions to prevent conflicts of interest. The ethical practices and develop a positive working
company does not tolerate corrupt behavior and attitude among employees. This program helps
practices such as fraud and bribery. Employees influence work behaviors and provides a holistic self-
cannot give or accept gifts in exchange for management framework to help employees identify
business favors. To promote fair competition, the their personal values and explore ways to align
company does not infringe any trademark, patent, these with their organizational values.
or trade secrets of its competitors. Aside from
these company policies, we conduct orientation We ensure that LTG employees know our anti-
on the Code of Business Conduct and Ethics as corruption policies and procedures. In 2022, the
well as corporate governance seminars to improve Group’s anti-corruption policies and procedures
professionalism in the workplace. were communicated to employees from rank-and-
file staff to officers as well as relevant third parties.
PNB does not tolerate offenses related to bribery As a result, 3,646 LTG employees across all
and corruption. Accordingly, the Anti-Bribery and subsidiaries and 2,917 governance bodies received
Corruption (ABC) Policy of the Bank prohibits anti-corruption training in 2022. In the same period,
giving, promising, authorizing, offering, soliciting, no major incidents of corruption have been reported
or receiving any item of value, whether directly within the Company.
or indirectly, intended to improperly influence the
decisions or actions of another party to obtain an Looking forward, LTG will consistently strive to
unfair advantage. prevent corrupt and abusive practices to protect its
business and stakeholders.
Our employees may report suspected violations
of integrity standards, including corruption and

Illicit Trade
LTG’s Unique Key Material Topic prevent and penalize the illicit trade of cigarettes.
These legislations include House Bill No. 3917,
LTG has been relentless in combating the illicit amending the Anti-Agricultural Smuggling Act
tobacco trade in the country. The problem has to include smuggling of tobacco and tobacco
significantly affected our business interests, the products as economic sabotage; the BIR
local tobacco industry, and the economy. To address Revenue Memorandum Circular on fixing floor
this issue, we have been strengthening our internal price of cigarettes and listing registered brands
capacity and forging external partnerships to curb of cigarettes that can be legally sold; and the
illegal trade. BIR Revenue Memorandum Order No. 40-2022
instituting guidelines in the conduct of enforcement
Tax-driven price hikes further compound illicit trade operations against illicit traders of cigarettes. At the
in the tobacco industry. A study by Euromonitor local level, some government units have passed
estimates that the tax boost has resulted in a 14% ordinances penalizing retailers engaged in the illicit
increase in illicit trade in 2022 and 13.9% in 2023. trade of cigarettes.
With the annual increase of Php5 in cigarette
excise taxes since 2019, the excise tax on a pack Within and outside the organization, LTG
of legitimate cigarettes costs Php60 as of January launched and sustained an information campaign
2023. In comparison, the price gap between against illegal cigarettes directed at its retailers,
legitimate and smuggled cigarettes ranges from consumers, and law enforcement agencies. Direct
66 to 200%. The significant price difference makes engagements with more than 300,000 tobacco
smuggled cigarettes more affordable to consumers, points of sales combined with traditional and social
especially for the youth and low-income earners. media engagements are being utilized as a part of
Across the country, illicit cigarettes are more its information drive to reach its target audience.
prevalent in Mindanao than in other regions. In addition, we conduct briefings on illicit trade
incidence studies for law enforcement agencies to
For a holistic response, we have developed inform them of geographic areas where illicit trade
programs and initiatives to fight illicit trade that is rampant. Partner retailers are also educated on
aim to prevent the diversion of its products, share the consequences of patronizing illicit cigarettes
its knowledge with other parties, and pre-empt to help de-normalize sales of smuggled cigarettes.
attempts to illegally divert its smoke-free products. By the end of 2022, we have managed at least 33
LTG is channeling its resources and tools and training sessions with 1,102 attendees composed
ensuring due diligence to secure its supply chain of employees, retailers, consumers, and law
and prevent product diversion. Collaboration with enforcement officials.
external partners, including the Philippine and
foreign governments, is also done by intelligence Through PMFTC Inc. (“PMFTC’’), LTG supports
sharing, active monitoring, and investigation to the objectives and principles outlined in the World
fight illicit trade. The Company takes preemptive Health Organization Framework Convention on
action to address the illegal diversion of its products Tobacco Control (FCTC) Protocol to Eliminate
in cooperation with the enforcement teams of the Illicit Trade in Tobacco Products. PMFTC is an
Bureau of Internal Revenue (BIR) and the Bureau of active member of “Fight IT” (Fight Illicit Trade), a
Customs (BOC). multi-sectoral movement led by the Federation of
Philippine Industries (FPI) which aims to curb unfair
LTG has also actively supported the enactment trade and secure national revenues, and protect
of national and local legislations and policies to legitimate players in the local market. Moreover,

PMFTC is a founding member of the Alibaba Anti- primary objective of our leasing process. Thus,
Counterfeiting Alliance, whose goal is to take down Eton’s leasing sector continued to account for the
sellers of counterfeit products. Across the country, largest share of the company’s revenues in 2022.
the tobacco industry works closely with government Although many offices were not operating at full
enforcement agencies such as the BIR, BOC, the capacity, interest in the company’s office properties
National Bureau of Investigation (NBI), and the remained strong as locators prized the flexible
Philippine National Police (PNP) to fight the illicit spaces in Eton’s office developments.
cigarette trade. In 2022, at least 297 enforcements
by agencies relating to illicit tobacco products The commercial segment showed resilience and
were recorded based on the Company’s internal strength as new tenants opened up in several
monitoring. Of these enforcements, 335.59 million properties. As the economy fully reopened in 2022,
sticks and 15 machine components were seized, more new stores are expected to open in our
while one (1) illegal cigarette factory was shut down. various commercial properties.
Moving forward, LTG will remain vigilant in the fight Eton’s adaptability and flexibility in 2022 were
against the entry and proliferation of smuggled and captured through innovative marketing strategies.
illegal cigarettes. This included building brand equity through
partnerships with various companies and different
campaigns that led to stronger brand awareness
Supply Chain Management and recall on top of continued digitization.
GRI 2-6, 3-3, 414-2
Effective supply chain management is vital in For supplier selection, Eton considers price and
growing LTG’s business and achieving customer quality as two crucial factors. The company prefers
satisfaction. Over the years, we have developed to procure locally to achieve cost-efficiency in
a reliable, efficient, and resilient supply chain purchasing goods and services. Local suppliers
to ensure the sustained production of excellent undergo an accreditation process conducted
products and services. We ensure integrity and by Eton to vet service providers. Our supplier
transparency in its procurement processes and selection method is thorough, transparent, and
enhance the resilience of our supply chain to gain a well-documented. A feedback mechanism is also
competitive advantage. embedded in the company’s procurement process
to allow suppliers to submit their concerns through
Asia Brewery ensures uninterrupted business email or a written letter.
operations by strengthening its supply chain
management. The company’s Board Executive PNB strongly emphasizes supply chain efficiency,
Committee is in charge of managing our supply leading to enhanced business performance.
chain. The Committee is concerned with making The Bank follows a simple process to streamline
decisions and approving supply purchases, procurement: canvassing and bidding, reviewing
including strategic sourcing. As part of its managerial proposed bids, and awarding purchase orders
responsibility, the Committee implements operational to credible vendors or suppliers. Suppliers are
and tactical strategies, monitors issues, and selected based on their financial capacity, ability
recommends corrective and preventive actions. to deliver within the company’s turnaround
time, and adherence to our sustainability policy,
At Eton, the operational and financial efficiency among other criteria. Using our Outsourcing and
of the supply chain is vital. Value for money is the Accreditation Policy, an enhanced due diligence

process is conducted before, during, and after service provider complies with the specifications or
vendor engagement to guarantee that suppliers terms of reference. The Bank’s various business
adhere to PNB policies and government regulations. units have a Business Continuity Plan to manage
The assessment is also carried out to determine supply chain risks effectively while we also maintain
the supplier’s social and environmental impacts. a pool of suppliers for our procurement needs.
Throughout the contract period, suppliers are
required to enhance their sustainability practices in Transparency is embedded in the procurement
sync with PNB’s sustainability policy. process of the Bank. Results of bidding are
released following the Manual of Operations.
The Bank established a Procurement Committee Feedback channels are also provided to suppliers
composed of various Senior Management Team where they can raise their concerns or clarifications.
members to serve procurement functions and
review and deliberate on bids. PNB offices and Finally, Tanduay requires its business chain
branches in the National Capital Region tap Metro partners to follow its stringent supplier
Manila-based service providers, while provincial accreditation policy. The company’s Code of Ethics
and overseas branches employ local suppliers. guides the process of scrutinizing suppliers to
Concerned Bank units are required to evaluate ensure their integrity and avoid conflict of interest
each supplier’s service and technical capability in and unethical activities. Suppliers commit to
line with PNB’s Vendor Management Policy. Under complying with our social standards through a
the Corporate Services Division, the Accreditation legally binding agreement.
and Vendor Management Department (AVMD)
enhanced its accreditation process, risk We also promote equal opportunity among our
assessment, and conduct of due diligence of suppliers and engage with both local and foreign
suppliers. Part of the upgrade in the accreditation service providers. However, engaging local
process is the inclusion of ESG criteria, such suppliers has attendant risks that could affect
as gender inclusion in human resources and the company’s supply chain. To mitigate these
compliance with environmental and social laws risks, we only accredit suppliers with an ISO
and regulations. Certification. Preference is also given to suppliers
that promote environmental sustainability, human
Local suppliers with high service standards are rights, diversity, and health and safety. Suppliers
prioritized to support the local economy and are expected to adhere to responsible business
minimize logistics costs. However, preference for practices such as screening for abuses, including
local suppliers may come with associated risks, modern slavery and child labor; compliance with
particularly during disasters. Thus, PNB requires environmental, health and safety regulations, and
local suppliers to submit a proof of concept and industry best practices; and implementing rigorous
approval proofing from the requesting unit to programs to eliminate bribery and other illegal
minimize procurement-related risks. Approval behavior. The Quality Assurance, Warehouse
proofing is a process to confirm or approve whether Department, and Purchasing Department conduct
or not the sample goods or services comply with the a Supplier Performance Evaluation to monitor
requirements of the requesting unit. This is done suppliers’ compliance with company rules and
before mass production of the items to prevent standards. A rejection notice is issued to suppliers
defects and errors in the items for procurement. In with non-compliant practices. Moreover, non-
the case of services being procured, a technical compliant suppliers are required to submit a
evaluation and vendor due diligence are performed corrective action report.
to evaluate technical capacity and guarantee that the

We source our raw materials locally and The molasses ADI needs for its products are
internationally to ensure a robust supply chain. acquired from sugar millers and traders such as
In 2022, Tanduay imported most of its alcohol the Universal Robina Corporation, Victorias Milling
requirements due to the high cost of locally Corporation, Binalbagan Sugar Company, LYL
produced alcohol, while 10% of its requirements Marketing, Shurmanns & Van Ginneken Philippines,
were supplied by ADI. Glass bottles needed Inc., Grandcane Company, Inc. and Tate and Lyle
to package our liquor products account for Corporation. Instead of entering into long-term
approximately 15% of the cost of goods sold, purchase commitments, we make purchase orders
while caps and labels account for 3% and 1% of on a per need basis.
the total product cost. Aside from buying brand
new bottles to package its liquor products, we For this reporting period, LTG and its subsidiaries
manage a network of secondhand bottle dealers have not identified any significant adverse
across the country to source cheaper glass bottles. environmental and social impacts in its supply chain.
Economic Performance GRI 3-3

LTG demonstrated its resilience and stayed competitive amid the challenges
posed by the ongoing pandemic. Under unfavorable circumstances, we applied
innovative solutions to continue operations and deliver products to consumers.
Company revenues dipped throughout the pandemic; however, LTG’s financial
performance is starting to improve.
GRI 201-1
Total direct economic value distributed Total economic value generated
2022 112.76 2022 128.28
2021 103.66 2021 112.81
2020 101.26 2020 114.77

In Php Billions In Php Billions
In Php Billions 2022 2021 2020
Operating costs 49.57 50.72 46.87
Employee wages and benefits 12.07 12.32 12.29
Payments to government 26.30 19.91 20.84
Payments to providers of capital 24.77 20.63 21.15
Community investments .03 .08 .10
Economic value retained 15.52 9.15 13.51

Environment
Resource Efficiency
Water Management GRI 3-3, 303-1, 303-2, FB-AB-140a.2, FB-NB-140a.2
Over the years, LTG has stepped up its efforts to Despite PNB’s minimal water use, the Bank has
effectively and efficiently manage its water resources. implemented various initiatives to reduce water
Water is primarily used as a raw material by LTG consumption, reuse water, and mitigate water
subsidiaries, such as Asia Brewery and Tanduay, management risks. Employees are reminded to
which are both in the business of producing observe proper usage and conservation of water.
beverages. For the rest of the Group, water is used At the same time, regular maintenance activity is
for operational purposes and employee needs. Given conducted to inspect water supply equipment and
the importance of water to the business, LTG is repair water leakages as needed. We have installed
promoting a culture of responsible water use across water-efficient fixtures and fittings to conserve water.
its operating companies. Moreover, we engage in community awareness and
outreach programs of local governments to preserve
As a beverage company, Asia Brewery reaches high water and promote sustainability principles.
levels of water use in its operations, specifically
for its bottled water, alcoholic and other beverage The effluent generated by the Bank is handled and
products. To manage this, we keep track of our treated by public utility agencies or water sewage
usage and aim for an optimal water usage ratio. treatment facilities. However, to minimize the
The water discharge standard of the company is environmental impact and avoid soil or underground
compliant with the quality parameters based on the contamination, we use environment-friendly
DENR Administrative Order (DAO) No. 2016-08, cleaning materials and substances to clean and
which was amended to DAO No. 2021-19. We aim maintain toilets and other facilities. Moreover, sink
to reduce our water usage by 5% from 2020 to 2023 strainers are used to separate solid wastes from
and plan to reduce water losses from the source. In wastewater and dispose of them properly.
parallel, Asia Brewery has started water recycling
efforts by re-using alcohol effluent to minimize its Given the nature of its business, water is an
industrial wastewater. essential resource for Tanduay. As such, we ensure
the sustainable use of water within our business
Eton advocates the sustainable use of water within operations by reducing water consumption,
its operations and projects. The company strives to recycling water, and improving the quality of our
reduce its water consumption by eliminating existing wastewater. Recycling activities of Tanduay include
and potential leak sources within its properties reusing water for gardening and flushing canals.
and recycling water from its rehabilitated sewage We establish targets of the Water Use ratio (liters
treatment plant. For its effluent discharge, the of water consumed over liters of products) and
company adheres to the water quality guidelines Energy Use ratio (megajoules consumed over liters
and general effluent standards set by the DENR. of products) to monitor how efficiently resources
Eton’s sewage treatment plant has also been are used. Moreover, we track our water usage by
upgraded to comply with DENR standards. installing a sub-flow meter in every business unit.
The company also adheres to the General Effluent
While water is not integral to PNB’s business Standard set by DENR to monitor wastewater
operations, the Bank still uses water for sanitation discharge. Tanduay has wastewater treatment
and hygiene. In particular, water is vital to ensure facilities in all its bottling plants which screen,
branch cleanliness, safe drinking water, and hygienic collect, and neutralize all waste generated from the
practices, especially amid the ongoing pandemic. bottling process before these are discharged. The

wastewater generated by our production process is Meanwhile, ADI, one of Tanduay’s subsidiaries,
collected in lagoons, where it undergoes a treatment also has a wastewater treatment digestor and
process to minimize adverse environmental effects. methane gas collector that help reduce carbon
Regulatory agencies such as the DENR and Laguna emissions and serve as a secondary power source
Lake Development Authority (LLDA) conduct annual for the distillation plant. For its Lian Batangas
inspections of our wastewater treatment process. Distillation Plant, ADI has installed a biomethanated
spent wash evaporator plant to be used for the
evaporation of its wastewater.
GRI 2-4, 303-3, 303-4, 303-5, FB-AB-140a.1, FB-NB-140a.1
Total water withdrawn 2021

7,214.09 ml
2022
7,562.54 ml
2020
7,795.68 ml
Water Withdrawal, Discharge, and

Consumption in megaliters (ml) 2022 2021 2020
Groundwater 6,402.09 6,072.83 1,158.04
Third-party water 1,160.45 1,141.265 6,637.64
Total water withdrawn 7,562.54 4 7,214.09 5 7,795.68
Surface water 1,594.09
Groundwater 184.92
NA - We initiated the
Seawater 504.16
collection of these
requirements in the
Third-party water 570.53
year 2022.
Total water discharged 6 2,853.70
Total water consumed 2,374.13
4 Increase is capacity driven (additional production line at Bottled Water Plant 2)

5 Amended figures (withdrawal from PNB branches were not included in the total)
6 No flow meter yet for El Salvador plant

Managing Waste GRI 3-3, 306-1, 306-2
As a responsible business, LTG applies waste wastes from Eton’s properties and facilities. In
management and recycling solutions to reduce addition, the company monitors the compliance
the amount of waste it generates and conserve of its stakeholders to its waste management
resources. Waste prevention is the central strategy program through a quarterly risk compliance
of the Company to manage waste, combined with tracker and regular reporting of its service vendors.
materials recycling and proper waste disposal. Our customers are also encouraged to adopt a
sustainable lifestyle to reduce waste and mitigate
Asia Brewery strives not only to reduce but adverse environmental impacts.
also to address its negative impacts on the
environment. Typically, the waste generated by PNB has embedded waste reduction into its
our company comes from production operations, waste management and sustainability efforts.
preventive maintenance, and wastewater treatment For example, to reduce waste in the workplace,
activities. Asia Brewery’s waste management the Bank is pushing for digitalizing its services
policy emphasizes minimization, segregation, and and processes. This includes issuing electronic
recycling. We use alternative raw materials in its copies of e-statements of accounts and forms for
production process to further minimize wastage. office requests, approvals, and other transactions.
Meanwhile, waste segregation is done to dispose Employees are also encouraged to reuse and
of waste properly and facilitate recycling. In recycle office materials such as paper and plastics.
addition, we recycle waste, such as used oil and
solvents, while scrap materials are sold to scrap The types of waste generated by PNB mainly
buyers for recycling. include construction and renovation materials,
defective equipment, and office waste materials,
A third-party disposal firm handles Asia Brewery’s such as papers, plastics, and busted light bulbs.
waste collection and disposal. We require a In terms of waste management, we rely on a third-
Certificate of Treatment and Certificate of Disposal party private contractor to haul our waste. We also
from the service provider to track its waste placed a system for collecting, processing, and
management system. disposing of equipment such as printers, computers,
and hazardous materials. Internally, PNB has
Asia Brewery conducts an annual training course designated pollution control officers to monitor and
on Waste Management for employees and third- assess our office requirements and compliance with
party service providers as part of its commitment local and national laws. The pollution control officers
to promote waste management. In addition, undergo regular training and seminars to keep them
quarterly audits of manufacturing plant business abreast of environmental regulations.
units and site visits for annual accreditation of
third-party haulers are also conducted to monitor The Bank strictly adheres to the strict
stakeholder compliance. implementation of local government regulations
on proper waste segregation and disposal. In
Eton has developed a solid waste management addition, we conduct regular smoke emission tests
program and policy to minimize the waste generated to minimize our carbon footprint and comply with
from its business operations. This policy is DENR standards.
strictly implemented in each property owned and
managed by the company. Part of the solid waste Tanduay introduced and implemented several
management program is the establishment of a initiatives and schemes to reduce the amount
recovery materials facility to recycle and reuse of corporate waste generated from its business.

These include implementing a ban on plastic
and styrofoam and rolling out the Back to
Supplier scheme and 3Rs program. In addition,
the company employs the Far East Petroleum
Corporation, a third-party service provider, to
manage our chemical waste. We conduct on-
site visits and spot checks to verify the service
provider’s activities regarding chemical waste
management. Further, we also submit a quarterly
report to DENR on our effluent quality.
GRI 2-4, 306-3
Waste by composition in
metric tons (mt)9 2022 2021 2020
Total hazardous waste 2,326.83 488.54 261.45
Total non-hazardous waste 5,540.75 5,613.08 8,578.05
Total waste generated 7,867.587 6,210.408 8,839.50
GRI 2-4, 306-4
Waste diverted from disposal by

recovery operation in metric tons (mt)9 2022 2022
Preparation for reuse 0.00 Preparation for reuse 0.00
Recycling 33.72 Recycling 974.41
Others 3,039.55 Others 849.04
Total hazardous waste 3,073.27 Total non-hazardous waste 1,823.45
7 Improved scope and disclosure have led to increased figures

8 Amended figures (waste from PNB branches were not included in the total)
9 Change of unit from kilotons (KT) to metric tons (MT) and disposal method following GRI requirement.

GRI 2-4, 306-5
Waste directed to disposal by 2022 2022

disposal operation in metric tons (mt)9
Incineration 0.18 Incineration 0.00
Landfilling 2,981.73 Landfilling 3,557.27
Others 290.64 Others 0.00
Total hazardous waste 3,272.54 Total non-hazardous waste 3,557.27
Biodiversity GRI 3-3, 304-2
LTG is one of the companies in the Philippines

that is paying greater attention to biodiversity PNB respects all life forms and ensures that its
protection. The long-term sustainability of business and operations do not pose any threat
businesses such as LTG is dependent on to the environment and all living creatures,
biodiversity. As such, LTG has developed and especially in areas or communities where it has
integrated sustainability strategies into its business a presence. To demonstrate this commitment,
operations and processes. we have put together an Exclusion List, or a list
of activities or businesses that the Bank will not
Eton’s business operations have indirect effects support or finance, to include activities that can
on the environment. Thus, the company ensures harm the environment and threaten biodiversity,
it complies with national laws and regulations such as the production or trade of wildlife; illegal
to mitigate the negative effects on biodiversity logging or uncontrolled fire for clearing forest
and implements programs to lessen its carbon lands and conversion of land for plantation use
footprint. In particular, Eton complies with the in primary tropical moist forests; land clearance
DENR Department Administrative Order 2016-08 by burning, fishing with the use of explosives or
on sewage treatment plant discharge parameters, cyanide; finning and/or trading (wholesale or retail)
RA 9003 on segregation of residual wastes, or serving at eateries of shark’s fin and deriving
RA 6969 on controlling toxic substances and material revenue from such activities; and natural
hazardous wastes, and RA 8749 on the Clean resource extraction or engaging in transactions
Air Act. Moreover, the company complies with focused on natural extraction within UNESCO
the regulations on the applications of sources of World Heritage sites, among others.
pollution and has introduced new technologies
in its sewage treatment facility and sourcing To date, we have managed to limit the
renewable electricity supply. environmental impacts of our operations. An
Environmental Management Program (EMP)
Protecting and preserving the environment is a serves as Tanduay’s framework to identify
critical consideration in the business operations potential environmental risks from business-
of PNB and lending practices. Internally, we related activities and implement biodiversity
promote sustainability principles and practices in programs. The company also ensures strict
our operations, from energy emission to waste compliance with regulatory requirements such
management. Sustainability considerations also as the General Effluent Standards of the DENR,
extend to our customers and service providers. which sets guidelines for wastewater discharge.

In line with this regulation, we regularly test and will power 24% of the company’s facilities. Asia
monitor the quality of our surface and groundwater Brewery will pay for the electricity generated
sources, including wastewater discharge. We over a period of 9 years, without the need for any
also implemented several initiatives to promote initial investments under the no-capex business
biodiversity, such as tree planting activities, river model. The solar rooftop project is expected to
cleanup, fingerlings distribution, and solid waste result in significant cost savings for Asia Brewery
management. and reduce the company’s carbon footprint by
approximately 9,600 tons of CO2 emissions per
For the year under review, all activities and year, equivalent to planting over 129,000 trees
operations of LTG had no significant negative during the contract period.
impact on the environment.
Asia Brewery has inked a power supply agreement
Energy Efficiency and Emissions GRI 3-3 (PSA) with Shell Energy Philippines, requiring the
latter to supply at least 15 megawatts of renewable
LTG has institutionalized measures to promote energy-generated electricity to the beverage
energy efficiency and conservation within the company. Based on the power supply deal, Shell
Company. At the same time, these measures Energy Philippines will supply renewable energy to
reduce the Company’s carbon footprint, reduce Asia Brewery’s manufacturing facilities located in
electricity consumption, and save operational Luzon. Asia Brewery President and COO Michael
costs. With these multiple benefits to the business G. Tan and Shell Energy Philippines President and
and environment, LTG continuously updates its Chief Operating Officer Bernd Krukenberg signed
policies and upgrades its energy management the supply contract. Shell Energy Philippines, a
system to promote business efficiency and local power investment and retailing division of the
environmental sustainability. Anglo-Dutch energy company Shell, is committed
to achieving its mid-century net-zero emissions
Asia Brewery actively monitors its GHG emissions target and assisting customers in adopting clean
and carbon footprint to determine its environmental energy solutions.
impact. We engage a third-party service provider to
conduct quarterly testing of our Scope 1 emissions. Eton aims to be energy efficient to reduce energy
In addition, we plan to install waste gas treatment usage and business costs. We have already
and redesign and repair the furnace to reduce our started implementing an energy conservation
emissions proactively. Throughout the reporting program to meet this goal and introduced
period, we have not recorded any instances of air renewable energy in some of its properties.
pollution exceeding the regulatory limit. The company is also implementing a weekly
functionality performance test to manage its fuel
To step up its efforts to reduce carbon footprint and consumption. We prefer vendors who maximize
promote sustainability, Asia Brewery is turning to renewable energy sources, even in terms of
renewable energy to power some of its business engaging service providers.
operations. Two significant partnerships have been
initiated by the company towards this direction. PNB has invested in energy efficiency activities to
Asia Brewery will soon be powered by sustainable minimize the Bank’s carbon footprint while lowering
energy, thanks to the solar rooftop project awarded its energy costs. We have upgraded all outdated
to TotalEnergies ENEOS which will be responsible equipment and acquired energy-efficient devices
for setting up and maintaining the 13.8 MWp solar to reduce and manage energy consumption.
photovoltaic (PV) system. The PV system is set From conventional lighting fixtures, we shifted to
to generate approximately 20,000 megawatt- energy-efficient LED lights and inverter-type air
hours (MWh) of renewable energy per year, which conditioning units. Employees are also reminded to

unplug office equipment that is not being used and performs regular preventive maintenance of
minimize the use of office equipment and lighting. equipment to reduce its energy consumption. We
have invested in a 2.04 MW Lian Solar plant, which
The Bank regulates fuel consumption by is being operated by ADI, to support its operations
implementing a trip maximization policy where with an alternative, sustainable and renewable
official business travel is subject to approval. Aside energy source. The solar plant is licensed under
from using fuel for its transport requirements, RA 9513 or the Renewable Energy Act of 2008.
PNB also requires fuel for its generator sets.
These generators undergo regular preventive We strictly comply with the existing regulatory limit
maintenance through a third-party service provider and air quality standards. The Scope 1 emission of
to ensure a fuel-efficient operating condition. the Tanduay is monitored quarterly by conducting
stack sampling and ambient air monitoring.
Tanduay’s approach to becoming energy efficient
is by reducing energy waste in its processes and In 2022, LTG’s business activities resulted in 2800
investing in renewable energy. The company kWh of electricity consumption, which is 29% lower
actively tracks any possible fuel leakage and than the previous year’s.
GRI 2-4, 302-1, FB-AB-130a.1 FB-NB-130a.1
Total energy Total fuel Total electricity

consumption In GJ consumption In GJ consumption In kWh
2022 2,549,615 1,788,471 211,434,909
2021 1,910,161 1,373,894 148,962,877
2020 3,241,299 2,688,481 153,560,428
Total energy consumption within the

organization 2022 2021 2020
Total energy consumption (GJ) 2,549,615 1,910,161 3,241,299
Luzon and Visayas (GJ) 1,646,688

NA - We initiated the collection of
these requirements in the year 2022..
Mindanao (GJ) 141,783
Total fuel consumption from non-renewable 1,788,47110 1,373,894 2,688,481

sources (GJ)
Luzon and Visayas (GJ) 192,555,829

NA - We initiated the collection of
these requirements in the year 2022..
Mindanao (GJ) 18,879,080
Total electricity consumption (kWh) 211,434,90911 148,962,877 153,560,428

GRI 2-4
Fuel consumption breakdown

within the organization from non-
renewable sources in gigajoule (GJ) 2022 2021 2020
Bunker Fuel 586,022 560,374 579,955
Coal 867,77012 377,319 321,705
Low Sulfur Fuel Oil (LSFO) 254 0.00 0.00
Diesel 139,736 16,265 11,973
Gasoline 14,604 246,741 1,621,950
Liquefied Petroleum Gas 180,085 173,19613 152,89813
Total fuel consumption 1,788,471 1,373,894 2,688,481
10 Increase is due to additional scope (company-owned vehicles for Eton and branches for PNB)
11 Increase due to additional scope (two buildings for Eton and branches for PNB)
12 Increase due to the high demand for products driving the need to expand production capacity
13 Amended. LPG figures last 2021 is in MJ
Climate Change GRI 201-2, 3-3
The increasing impacts of climate change threaten is regularly discussed at the management level.
companies and business operations worldwide. Risk assessment results serve as the basis for
As in other companies, LTG is exposed to climate systematic management and adaptation measures
impacts which consequently affect its operations, employed by the Company against climate risks
supply levels, financial standing, and bottom line. and hazards.
LTG is addressing climate change by implementing
measures to reduce its carbon footprint and To complement the regular climate-risk assessment,
strengthening its internal capacity to withstand the LTG plans to have a long-term evaluation of the
direct impacts of the changing weather patterns. impact of climate change risks and understand its
To remedy potential climate impacts, the Company potential effects on the business. Based on the
has taken steps to factor climate risks in building a findings, LTG will develop long-term climate change
resilient business. mitigation and adaptation strategies.
Being located in a country prone to disasters and LTG assesses climate change risks through its
climate change, LTG integrates into its governance annual risk assessment. The Company utilizes
an assessment of climate-related risks that could impact and vulnerability assessments to recognize
harm its operations as well as opportunities the climate-related risks relevant to LTG. In addition,
that could enhance its business. In particular, evaluating risks enables the Company to test
the Company has developed methodologies to the effectiveness of its existing risk management
examine aspects of its operations that could be measures and policies. LTG engages a Business
disrupted by weather and other hazards. The Continuity Manager (BCM) to help manage and deal
evaluation is conducted on an annual basis and with disasters such as typhoons and floods.

Annually, LTG conducts carbon accounting to Social Governance (ESG) scorecard. The resulting
analyze its carbon footprint and enhance efficiency ES total score in the scorecard shall then be
of its processes. We disclose our annual GHG incorporated in the final Credit Risk Rating (CRR)
emissions through our Sustainability and Annual of the borrower. Also, the borrower must comply
reports. Our management also plans to have a with all the applicable enhanced due diligence
long-term target to reduce our carbon footprint in requirements of the Bank before loan approval or
our operations. implementation, where applicable.
PNB has actively taken steps to reduce its carbon Currently, PNB is developing an Environmental and
footprint and negative environmental impacts. Social Risk Management System (ESRMS) with
We recognize that climate change and other the assistance of the Tan Yan Kee Foundation, the
environmental and social risks could threaten CSR arm of the Lucio Tan Group of Companies,
financial stability, both at the Company’s operations and its pool of Subject Matter Experts. The ESRMS
and macro-economic level. As such, we embarked is a set of policies, procedures and tools that will
on a journey to integrate sustainability principles help identify, assess, monitor and mitigate exposure
in our business, governance, risk management, of the Bank to environmental and social risks. The
and other aspects of operations. The Bank framework which integrates environment and social
also promotes sustainable and resilient growth risk criteria in PNB’s risk management framework
through environmentally and socially responsible will cover all business functions and operations of
business decisions coherent with the Philippine the Bank. The target completion and delivery of
Development Plan. the ESRMS Framework to the Bangko Sentral ng
Pilipinas is in April 2023.
We assess climate-related risks through the
Business Continuity Risk Assessment (BCRA), Risk PNB also plans to enter into Sustainable Financing
and Control Self-Assessment (RCSA) to identify Transactions (SFTs) to finance or refinance projects
climate-related risks, and the Business Continuity and expenditures that have positive environmental
Plan Manual and Crisis Management Plan to and social impacts. Specifically, the Bank commits
address the identified risks. In addition, PNB has a to fund or finance projects that will not harm the
Crisis Communication Plan and Disaster Recovery environment and society in general, as well as
Plan to strengthen operational and infrastructure support those aligned with its growth objectives
resiliency during climate disasters and business and will contribute to achieving the United Nations’
disruptions. Using the RCSA, the Bank identifies Sustainable Development Goals (SDGs). Projects
and evaluates risks such as Corporate Social that promote rural development include food
Responsibility Risk, Environment Risk, Losses from manufacturing, agricultural production, water
damage due to natural calamities, and Business distribution and supply, energy generation and
Disruption-related threats and vulnerabilities. distribution, construction and operation of toll roads
and bridges, telecommunications infrastructure, and
Aside from the business unit level RCSA, the Bank construction of green buildings and health facilities.
also started the E&S risk scoring at the portfolio In addition, PNB provides continuous support to
level for corporate clients. The Bank has created environmentally compliant projects such as the
the ESG Scorecard/Checklist, which includes the Operation of Toll Roads and Bridges; Generation
questionnaire, checklist and relevant documents and Distribution of Power and Water; Construction
to be submitted by the client, as applicable. The of Green or LEED buildings and infrastructure; and
Credit Manager evaluates the E&S risk of the Real Estate Development.
borrower by accomplishing the Environmental and

At the end of 2022, a total of Php 289.6 billion, acquisition of raw materials by the company.
or 57.4% of the Bank’s loan portfolio, has been Considering these potential impacts, we maintain
provided to different sectors and businesses in the a buffer stock to ensure business continuity.
country. Specifically, these projects contribute to We also ensure that our business operations
attaining Sustainable Development Goals 1, 2, 3, only generate emissions within the allowable
6, 7, 8, 9, 11 and 12. threshold values and comply with local regulatory
requirements on the use of alternative diesel fuel.
Tanduay has an Incident Management Crisis Tree planting activities to mitigate the impacts
Resolution Procedure (QMS-IMP-B-P-1000), which of climate change are also integrated into our
guides the company in identifying the climate corporate social initiatives.
risks and opportunities that financially impact its
operations. Climate risks will potentially affect the
warehousing activities, logistics and delivery, and
GRI 305-1, 305-2
Scope 1 (tCO2e) Scope 2 (tCO2e) Total carbon footprint (tCO2e)
2022 66,320 151,858 218,178
2021 155,468 107,695 263,163
2020 149,227 110,208 259,435
Emissions 2022 2021 2020
Generator sets 10,008
Company-owned vehicles 2,585
Others 53,727
Scope 1 (tCO2e) 66,320 155,468 149,227
Luzon and Visayas 137,138
Mindanao 14,720
Scope 2 (tCO2e) 151,858 107,695 110,208
Total carbon footprint (tCO2e) 218,178 263,163 259,435

Employees
LTG employees are the backbone of the Company,

providing stability and ensuring the business's Total Employees
success. The critical importance of workers to any 12,325
industry has been underscored during the pandemic,
Total New Hires
but simply acknowledging their importance and
contribution is not enough. Instead, companies must 890
provide programs and incentives for the holistic
Total Turnover
development of employees. For LTG’s part, strategic
initiatives have been developed and rolled out across 1,679
the Group to empower its personnel and enable their
productivity and career advancement.
Employment GRI 2-7, 2-25
MALE FEMALE
Employee breakdown < 30 y.o 30-50 y.o >50 y.o < 30 y.o 30-50 y.o >50 y.o Total
Officers 1 137 172 0 101 107 518
Managers 274 1,881 749 155 967 322 4,348
Supervisors 81 307 66 53 115 15 637
Rank and file 1,139 2,208 275 1,430 1,565 205 6,822
Total 12,325
GRI 401-1 MALE FEMALE
Employee breakdown < 30 y.o 30-50 y.o >50 y.o < 30 y.o 30-50 y.o >50 y.o Total
Luzon 258 145 7 232 97 5 744
Visayas 26 4 0 24 7 0 61
Mindanao 43 15 1 23 3 0 85
Total New Hires 890
New Hire Rate 7.22%

GRI 401-1
MALE FEMALE
Turnover < 30 y.o 30-50 y.o >50 y.o < 30 y.o 30-50 y.o >50 y.o Total
Luzon14 310 333 119 353 300 217 1,632
Visayas 6 2 0 2 0 0 10
Mindanao 11 12 4 5 3 2 37
Total Turnover 1,679
Turnover Rate 13.62%
Number Percentage
GRI 401-2
Benefits Breakdown Male Female Male Female
SSS 741 1,802 15% 25%
Philhealth 214 201 4% 3%
Pag-IBIG 625 1,492 12% 20%
Parental leave 152 420 3% 6%
Vacation leave 3,225 3,276 64% 45%
Sick leave 3,029 2,089 60% 29%
Medical benefits 519 1,897 10% 26%
Housing assistance 1 2 0% 0%
Retirement fund 118 57 2% 1%
Telecommuting 162 141 3% 2%
Flexible working hours 1,238 898 25% 12%
14 PNB currently does not have turnover data by island group. For 2022, all PNB turnovers are under Luzon.

GRI 401-3
Parental Leave Male Female Total
Total number of employees that were entitled to 2,310 977 3,287

parental leave
Total number of employees who took parental leave 138 270 408
in 2022
Total number of employees who returned to work in 138 269 407

2022 after parental leave ended
Return to work rate 100% 99.6% 99.8%
Total number of employees who availed leave in 2021 86 149 235

and are still with the company in 2022
Total number of employees that took parental leave in 90 171 261

2021
Retention rate 95.6% 87.1% 90%
Solo Parental Leave Male Female Total
Total number of employees that were entitled to 16 192 208

parental leave
Total number of employees who took parental leave 14 150 164

in 2022
Total number of employees who returned to work in 14 150 164

2022 after parental leave ended
Return to work rate 100% 100% 100%
Total number of employees who availed leave in 2021 12 138 150

and are still with the company in 2022
Total number of employees that took parental leave in 12 149 161

2021
Retention rate 100% 93% 93.2%

GRI 3-3, 404-2, 404-3
LTG places a premium on the growth and well- Eton provides opportunities for its employees to
being of employees. From hiring and onboarding to take part in training and development. Company-
managing employees, LTG has integrated practical sponsored training on essential and technical
considerations for employee development and skills is offered to employees for professional
performance enhancement. In addition, LTG offers advancement and increased productivity.
its employees a comprehensive benefits package Employees with excellent performance are also
and opportunities, such as training and leadership recognized and rewarded through promotions and
opportunities; health and wellness promotion; merit increases.
and a combination of government-mandated
benefits such as SSS, PhilHealth and Pag-IBIG Employee growth and development are key
and Company-initiated benefits such as retirement priorities for PNB. The Bank actively promotes
fund, medical and leave benefits. work-life balance and provides career and personal
development opportunities. We have introduced
Asia Brewery understands that its employees are a competitive salary program, attractive benefits
the company’s most valuable assets. Employees and incentives, and a holistic employee wellness
drive every fundamental aspect of the business, program to attract and retain talent.
from the company’s profit strategies to its current
sustainability targets. As such, we employ a PNB practices a non-discriminatory hiring process
holistic approach to nurturing and developing and adopts gender-equal and inclusive programs.
our employees. The company implements a We hire, retain and develop qualified and suitable
competitive salary program to attract and retain candidates regardless of gender and background.
talent. At the same time, non-financial benefits The company adopts gender, diversity, and
are also provided to employees, such as leave inclusion principles across different employee
and retirement benefits, health care services, and programs from hiring or recruitment, training
training opportunities. Leave benefits available to and development, wellness and engagement,
our employees include paternity leave, special leave compensation and benefits, and promotions and
under the Magna Carta for Women, violence against career development. The same opportunities for
women leave, and parental leave. Asia Brewery employment, remuneration, recognition, and career
offers leadership, personal development, and soft advancement are given to all, regardless of gender.
skills training to boost employee performance. To demonstrate its seriousness in promoting
gender equality, PNB uses and monitors Gender
We adopt an inclusive hiring process and comply Equality indicators to track its policy performance.
with the Anti-Discrimination Act of the Philippines.
Discriminatory practices are not tolerated in the During the pandemic, we offered various benefits
company. To protect employees from unfair labor to our employees while ensuring a safe and healthy
practices upon hiring down to retirement, we working environment. For example, employees were
have established an accountability and grievance given a COVID-19 Quarantine Leave (CQL) for a
mechanism. The Labor Management Committee maximum of 10 days for reporting onsite and five
facilitates the monthly meeting between the union days for working from home.
and management to monitor compliance with
provisions outlined in the collective bargaining Employee training also continued during the
agreement (CBA), while the Committee on Right lockdown through PNB’s e-learning platforms.
Ethics (CORE) upholds the ethical standard in Annually, employees are encouraged to undergo at
the Company. Grievances and complaints are least 32 hours of training, which is included in their
addressed using our Grievance Handling Machinery performance review. In addition, we sponsored
and Disciplinary Case Handling Procedures. webinars on various topics such as leadership,

communication, health and wellness, and work is under a joint program of the European Union and
dynamics. In addition to maximizing the use of UN Women.
LinkedIn Learning, we are currently developing a
learning platform incorporating a standard learning PNB was also a proud recipient of the ASEAN
and mandatory training course available to new Asset Class Award in the 2021 ACGS Regional
hires and transferees. Virtual Awards conducted in December 2022.
These awards and recognition are a testament to
An assessment mechanism to monitor the the commitment and impact of the Bank toward
performance of PNB employees is conducted gender equality.
regularly. Through the mechanism, the Bank can
determine individual performance, strengths, and Employee development is a top priority for
areas for improvement. Top-performing employees Tanduay. To achieve this, we offer prospective
are recognized and given promotion opportunities, and current employees a competitive salary
performance-based incentives, Service Excellence package, additional benefits, and training and
Awards, and Outstanding Work awards, among career opportunities. Regarding employee
other merits. development, our goals include better performance
and increased overall productivity, employee
True to its promise of reducing the gender gap, retention, and improvement of employee morale.
PNB has implemented policies and programs With the ongoing pandemic, we faced difficulties
promoting gender equality within the company. in organizing training for employees, given the
Our initiatives to empower women have earned us mobility and social distancing restrictions. Thus, we
recognition from various institutions. In 2022, PNB utilized virtual platforms to conduct online training
was awarded by the Asia Corporate Excellence and learning sessions.
and Sustainability Awards (ACES) as one of
“Asia’s Most Influential Companies,” an award ADI conducts performance appraisals on an
that is given to companies with a genuine interest annual basis to evaluate the performance of
in promoting the interests of its stakeholders its employees. To acknowledge the valuable
through corporate social responsibility initiatives contributions of employees, ADI recognizes the
embedded into policies and operations. The best employees at the end of the year based
award also recognizes businesses with high on three criteria: contribution, attitude, and
employee and top management involvement in performance. Incentives are given to employees
community engagement, environment, and social with excellent performance in the form of
empowerment programs. recognition and cash rewards.
For the second year in a row, PNB was a Runner The Labor Management Committee (LMC) serves
Up for Transparency and Reporting in the UN as a grievance mechanism where employees
Women 2022 Philippines Women’s Empowerment can submit their issues or complaints. Regular
Principles (WEPs) Awards. The Bank’s transparency communication is ensured between employees and
and reporting practices include gender data and officers of the workers’ union.
indicators, specifically analyzing the performance
and impact of gender on its adaptive policies and For 2022, all employees of LTG, from the rank
programs. The data gathering also includes tracking and file to officers, have received a regular
the Bank's performance toward gender equality and performance and career development review to
women’s economic empowerment. WEPs Awards monitor and enhance staff performance.

Training and Development
GRI 404-1
Total training hours Total number of Average hours

Male employees trained of training
Officers 2,997 212 10
Managers 55,527 1,433 19
Supervisors 3,853 380 10
Rank and File 87,756 2,697 27
Female
Officers 5,582 295 27
Managers 96,901 2,757 67
Supervisors 1,964 238 13
Rank and File 170,928 3,147 55
TOTAL 425,508 11,159 35
Safety and Well-being GRI 3-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7
The Company maintains a safe workplace by the existing procedures and processes using the
implementing measures that prevent workplace Hazard Identification, Risk Assessment, and Control
incidents and addressing occupational safety (HIRAC) method. Safety audits are conducted
hazards and risks that may adversely affect its through onsite verification and inspection. Our
employees. LTG employees are covered by the safety audits include Cross-functional Audits
occupational health and safety (OHS) management (internal) and Customer Audits (external), conducted
system of the Company in accordance with the quarterly and annually, respectively. The identified
legal requirements and recognized standards and hazards and risks are addressed by developing
guidelines on workplace safety. Across the Group, corrective and preventive actions. Asia Brewery has
LTG has also invested in occupational safety also organized a formal joint management-worker
measures to comply with safety requirements and health and safety committee to decide on health and
protect its personnel. safety measures and ensure the implementation of
health and safety policies and regulations within the
To protect the health of employees and prevent company. We disseminate health and safety policies
workplace injuries, Asia Brewery implements a and updates through email reminders, messages,
health and safety policy that complies with the and EHS bulletin board posts.
country’s occupational safety and health (OSH) law.
Identifying occupational safety hazards and risks Asia Brewery employees are also enabled to
is the first step in promoting OSH. To do this, we respond to health and safety emergencies as
conduct audit patrols in its manufacturing plants, needed. The company provides employees with
collect safety reports from workers, and assess internal and external training opportunities regularly

or as needed. The training modules include First employees. The Human Resource unit of our
Aid Training and Basic Life Support, Emergency company recently launched the Kumustahan online
Response Training, Environment Health and Safety- platform to encourage employees to consult with the
related training, and other specialized courses. We team on health and wellness issues.
also have an Emergency Response Procedure,
Manufacturing Continuity Plan, and Chemical Spill From construction to maintenance of properties,
Response training to prepare for disaster events. Eton always considers and identifies the hazards
and risks associated with their projects. Before
Amid the ongoing pandemic, Asia Brewery starting a construction project, a job hazard analysis
strengthened its initiatives to ensure the health and safety orientation for contractors are required.
and well-being of its employees. For example, the Also, each property we own and manage has its
company enforced strict health and safety protocols, own disaster protocol.
such as signing health declaration forms, COVID-19
testing before entering the workplace, social Eton conducts training on OSH and Hazard
distancing, and wearing facemasks. In addition, we Identification, Risk Assessment and Control
provided non-occupational medical and healthcare (HIRAC) to enhance employees’ awareness of
services, such as HMO, medicines and vitamins, workplace safety. In addition, employees are trained
and flu vaccines, to all employees through our in- to perform risk assessments to identify work-related
house medical facilities. Annually, employees also hazards and anticipate hazardous situations.
undergo a physical examination to identify health-
related illnesses and provide healthcare through For PNB, a healthy workforce is key to its business
accredited service providers. success. Thus, it has implemented a wide range of
employee wellness programs to promote a healthy
Workplace wellness is front and center at Eton. lifestyle among its employees. Having realized the
Employee health and safety is the company’s unprecedented effects of the ongoing pandemic on
greatest asset and investment. Thus, we employees’ mental health, PNB provided mental
developed an OSH program in line with the health programs to cope with stress, reduce anxiety,
Department of Labor and Employment (DOLE) and support employees experiencing emotional
Department Order on strengthening occupational difficulties. Alongside these programs, we organized
health and safety standards. The OSH program sports and wellness activities via online platforms
was submitted to DOLE and is being enforced by such as e-Zumba sessions and digital wellness and
the company’s OSH Committee, which is in charge sustainability fairs. Telemedicine consultations were
of developing, implementing, and monitoring OSH also offered to our employees to ensure access to
policies and programs. Additionally, the Committee medical services as needed.
oversees and investigates workers’ safety and
health issues and concerns. For example, during Tanduay makes employee health and safety
the pandemic, the OSH Committee formed a programs available to promote workplace safety.
Health Monitoring team to track COVID-19 cases Primarily, our OSH Program complies with DOLE
and assist affected employees. Department Order 198-08 where Personal
Protective Equipment, OSH training, and mandatory
Eton supports the health and well-being of its seminars are provided to employees. Occupational
employees by providing free health insurance hazards and risks are identified and investigated
and health services. Regular health and wellness by Safety Officer (SO) and Occupational Health
sessions and seminars are also offered to all Nurse SO, OH Nurse and Safety Officers. Health

and safety protocols are enforced based on the existing policies and programs on promoting a
rules and regulations of DOLE, DOH and IATF. drug-free workplace; prevention and control of
We are also implementing an occupational health HIV/AIDS, tuberculosis, and Hepa B; and mental
and safety management program covering all health promotion. Employees are also encouraged
employees, service providers, security personnel to participate in health awareness seminars
and contractors. To protect the health and well- and have a more active lifestyle through playing
being of employees, we require them to undergo sports, attending Zumba sessions, and joining
an annual physical examination and attend safety weight loss contests.
training provided by DOLE. The company has
GRI 403-8
OHS Management System Coverage # %
Covered by occupational health and safety management system
Regular employees 12,325 100%
Covered by occupational health and safety management system that has been internally audited
Regular employees 12,107 98.23%
Covered by occupational health and safety management system that has been audited or
certified by an external party
Regular employees 8,936 72.50%
GRI 403-9
Work-Related Injuries Employees
Number of fatalities as a result of work-related injury 0
Rate of fatalities as a result of work-related injury 0.00
Number of high-consequence work-related injuries (excluding fatalities) 3
Rate of high-consequence work-related injuries (excluding fatalities) 0.11
Number of recordable work-related injuries 37
Rate of recordable work-related injuries 1.39
Number of hours worked 26,699,299
Safe man hours 26,460,502

Human Rights GRI 2-23, 2-24, 2-25, 2-26, 3-3, 406-1
LTG believes that businesses have the responsibility Any form of harassment or bullying is not tolerated
to promote and respect human rights. For its part, at PNB. The Bank has institutionalized a robust
the Company has taken meaningful actions to whistleblower policy to protect the Bank from
protect the human rights of its personnel regardless damages to assets, reputation, finances, and people
of rank or background. From its policies to and mitigate risk and losses through the early
programs, LTG is creating a company culture that discovery and proper reporting of suspected or actual
values human rights. wrongdoings. Within the Bank, a committee was set
up to investigate, deliberate and decide on appropriate
Respecting workers’ rights and fundamental actions regarding whistleblower and retaliatory cases
human rights is a commitment embedded in Asia raised by employees. According to the PNB’s Code
Brewery’s Code of Conduct and Company Rules of Conduct, appropriate administrative sanctions will
and Regulations. At the same time, the prohibition of be imposed for harassment and bullying. We also
child labor is explicitly underscored in the company’s adhere to a Diversity and Inclusion policy to foster
Recruitment, Selection and Placement Policy and inclusion and equality—a culture that recognizes team
Procedures. These policies are communicated to members as collaborators and peers regardless of
employees through orientation, email reminders, their backgrounds.
and bulletin posts. In addition, we conduct
orientation seminars on the code of conduct and Prevention of sexual harassment is a priority of
relevant company rules and regulations to prevent PNB to ensure a safe and respectful workplace for
workplace discrimination. We also handle employee all its employees. In recent years, we have updated
complaints and feedback through the Committee our Anti-Sexual Harassment (ASH) policy following
on Right Ethics (CORE), Grievance Handling, and the enactment of the Safe Spaces Act. In our
Disciplinary Case Handling Procedures. In case a policy, the parameters of sexual harassment were
violation of human rights occurs within the company, defined based on the law. To ensure that incidences
due process of law will be applied. of unwelcome sexual conduct are dealt with,
PNB established a Committee on Decorum and
Eton has institutionalized its obligation to promote Investigation dedicated solely to investigating and
human rights through its company policies. The addressing cases of sexual harassment.
company’s Code of Business Conduct and Ethics
sets out the professional and ethical behavior that Employees with complaints or grievances may
its employees must observe. This policy prohibits file a report through the Bank’s whistleblowing
unethical and discriminatory behavior as well as channels or to the disciplinary authorities such
disrespectful and unfair treatment of employees. as the Group or Sector Head, Human Resource
Internal complaints of discrimination, harassment, or Group and Ethical Standards Committee. The
other misconduct are submitted to the Compliance complaints are discussed during the Labor
Officer, who determines if the act violates the Management Council meeting, followed by a
company’s policy. To protect complainants or formal investigation. To ensure the protection of
whistleblowers, we have a Whistleblower Policy whistleblowers, we have a Whistleblower Policy
that includes Investigation Procedures and a Non- with a provision on anti-retaliation.
Retaliation policy. For false or malicious reports,
the complainants will be subjected to disciplinary or For Tanduay, protecting human rights is vital in
legal actions and applicable laws and regulations. fostering equality and respect in the workplace.

Therefore, we have a non-discrimination
policy when it comes to hiring and adhere to
the government's anti-discrimination policies.
Tanduay strives to create an environment free
of discrimination by educating its employees,
encouraging them to respect diversity in the
workplace, and responding appropriately to
complaints of discrimination. A grievance machinery
is in place to deal with employee complaints and
issues. The Human Resources office coordinates
with the employee’s immediate head to resolve
complaints or pursue legal action if necessary.
Before issuing a decision, the Head of Office
requires the concerned employee to submit a
written explanation within five working days. The
Head of Office also convenes a conference or
a hearing to evaluate the evidence presented
to the office. Appropriate disciplinary measures
will be implemented based on the final decision
of the Head of Office. The HR office handles all
communications in total confidentiality to alleviate
fears of possible retaliation.
Based on the Company’s monitoring, no critical

incidents and violations of labor laws and human
rights occurred in 2022.

Customers
Marketing and Labeling GRI 3-3, 417-1, 417-3
To build and maintain brand integrity, LTG complies with the high standards
of marketing and labeling regulations. We ensure that our subsidiaries follow
legal compliance with marketing and advertising laws and regulations set by
the government.
GRI 417-1, 417-2, FB-AB-270a.2, FB-AB-270a.3, FB-NB-270a.3, FB-NB-270a.4,
2022
Total no. of incidents of non-compliance with regulations resulting in a fine or penalty 0
Total no. of incidents of non-compliance with regulations resulting in a warning 0
Total no. of incidents of non-compliance with voluntary codes 0
Total no. of substantiated complaints 130
Total no. of complaints addressed 130
Number of significant product or service categories offered 35
Number of significant product or service categories covered by and assessed for 35

compliance with information and labeling procedures
Percentage of significant product or service categories covered by and assessed for 100%
compliance with information and labeling procedures
FB-AB-270a.1, FB-NB-270a.1
Responsible Drinking, Product Labelling & Marketing15 2022
Percentage of total advertising impressions made on individuals at or above the legal 5%

drinking age
Total number of advertising impressions made on individuals at or above the legal 3,448,276
drinking age
Total number of advertising impressions made on alcoholic beverages 70,000,000
Percentage of total advertising impressions made on children 39%
Number of advertising impressions made on children 2,857,143
Total number of advertising impressions made on non-alcoholic beverages 7,400,000
15 Figures cover Asia Brewery only

Customer Health and Safety
GRI 2-25, 3-3, 416-1
Asia Brewery adheres to the Food and Drug LTG has implemented proactive efforts to ensure
Administration (FDA) standards for its marketing customer health and safety throughout the pandemic.
and labeling policy to ensure consumers always These efforts range from ensuring sanitary and
get the correct product information. We disclose clean production facilities to providing avenues
critical product-related data such as the sourcing for customers to register their concerns related to
components, content, safe use of product or service, product quality.
and environmental and social impacts resulting from
product disposal. Asia Brewery strives to protect the health and safety
of consumers and ensure quality excellence by
Eton follows marketing and labeling guidelines to enforcing food safety policies and enhancing the
ensure customers receive the correct product and competencies of its employees. We adhere to a
service information. Following our Code of Ethics, stringent Food Safety and Quality Policy and follow a
employees are required to comply with marketing Food Safety and Quality Management System based
and labeling laws and regulations set by various on international and local standard requirements.
government agencies such as the Department As a beverage manufacturer and distributor, some
of Trade and Industry (DTI), Intellectual Property concerns customers raise include product spoilage
Office of the Philippines (IPOPHL), Housing and and products with foreign objects. We respond
Land Use Regulatory Board (HLURB), and Ad to such complaints through Customer Complaint
Standards Council (ASC). We also employ a digital Handling, which now has a digital version via the
marketing strategy to advertise its products and support portal. In addition, we implement internal
increase its customers. Promotional materials assessments and corrective actions to prevent the
are published through our website and third-party recurrence of issues.
websites like Rentpad and Carousell. Further, we
organize event sponsorships, cross-promotion During the COVID-19 pandemic, we responded
referrals, and media programs. to the demand for immunity-boosting products
by enhancing the nutritional value of some of its
Tanduay’s marketing and labeling approach is beverages. For example, the Cobra Energy drink,
governed by a Brand Guidance Policy, which intended initially as an energy-boosting drink, was
aims to promote fair and responsible marketing enhanced to include immunity-boosting ingredients.
practices. The company complies with all
mandatory requirements on advertising set by To minimize the environmental impact of its chemical
regulatory bodies such as the ASC, IPO, and FDA. byproducts, Asia Brewery ensures strict compliance
As part of Tanduay’s Quality Policy and Quality with various standards and regulations such as
Management System (QMS), regular product the FDA Good Manufacturing Practices, ISO 9001
assessment and evaluation are conducted to Quality Management System, Food Safety System
ascertain compliance with regulations and to Certification (FSSC) (ISO 22000 Food Safety
develop innovative ways to strengthen brand Management System) and Hazard Analysis Critical
equity in its existing and emerging markets. Control Point (HAACP), among others.
For 2022, no notices for non-compliance with Tanduay formulated a quality policy and quality
regulatory requirements on marketing and labeling management system to protect and promote the
have been reported for the entire Group. health and safety of its consumers. The compliance
and effectiveness of these measures are assessed
through an annual surveillance audit. This process
provides and interprets data to facilitate the

prevention and control of disease to safeguard digital platforms to handle customer issues
our customers. With the pandemic, we continue to more effectively. For the reporting year, Eton
implement health and safety measures in line with customers reported concerns about Condominium
the IATF regulations and standards to protect our Certificates Titles and Transfer Certificate of Titles.
consumers and employees. The concerns were addressed through constant
communication through phone and email with the
Our company ensures customer health and safety client by the Customer Service Department, which
compliance by strictly implementing its Quality provides updates and answers.
Policy, Mission and Vision, and Strategic Business
Objectives. Tanduay is currently ISO 9001: 2015 PNB believes that customer satisfaction is an
Certified and is annually assessed for compliance essential metric for business success. As such, it
and renewal/maintenance of certificate by TUV SUD offers a robust feedback and grievance mechanism
Asia Pacific TUV SUD Group and complying with to respond to customer complaints promptly. The
FDA’s Good Manufacturing Practices. Customer Experience Division (CED) enforces the
Consumer Protection Policy of the Bank. Through
Customer Engagement and the Unified Contact Center Solution project,
the CED’s Contact Center Operations is being
Satisfaction
improved to achieve shorter handling time, better
The Company intentionally cultivates positive agent user experience, better case logging tools,
relationships with its customers by delivering and automated quality evaluation and scorecard
products and services that exceed customer management. These improvements will take effect
expectations and providing customer touchpoints. by the fourth quarter of 2023. Customers of the
Across the Group, LTG actively solicits customer Bank also have the option to raise issues or report
feedback to determine aspects of their products and complaints to the various customer service channels
services that require enhancements. by email, telephone, and messenger applications.
A consistently excellent customer experience is PNB encountered several challenges during the
essential to Asia Brewery’s business growth. Thus, COVID-19 pandemic due to the implementation of
we ensure that our products are of high quality the Bayanihan Act. The customer-related concerns
and that our services are delivered on time. To the Bank received during this period include interest
enhance customer experience, we developed charges, re-computation of amortization, and
an E-Commerce site where customers can order waiving charges. The most common customer-
products anytime and expect faster delivery. related concerns are related to credit cards, account
Moreover, customers can provide feedback on the openings, billing statements, and the PNB Digital
products and services of Asia Brewery through our App, such as password changes. We have instructed
social media pages and website. relevant offices to coordinate with each other and
implement the changes based on the government’s
Eton seeks to understand its customers’ experience policy and help address customer concerns.
to determine how to improve its products and
services. Customers are requested to submit PNB implements an after Call and Email
their feedback via online platforms such as our Customer Satisfaction survey to evaluate
website, email address, and messenger. During customer satisfaction. Customer feedback informs
the pandemic, when customers could not visit improvements in the policies, service delivery,
our offices in person, we have enhanced our process, and customer engagement.

Tanduay understands that satisfied customers help Consumer Protection. In alignment with the BSP
drive business growth. Thus, we endeavor to offer Digital Payment Transformation Roadmap, which
our customers high-quality and affordable products operates under the National Retail Payment System
by strengthening our quality policy and complying (NRPS), PNB launched services such as Person
with product certifications such as ISO, HACCP, to Merchant (P2M) and Person to Business (P2B)
and HALAL. In addition, we actively seek customer payment streams. In addition, we also adhere to the
feedback by deploying customer satisfaction Open Finance Framework of BSP, where financial
surveys and conducting after-sales communication institutions can share data with customers' consent
to improve the quality of our products and services. to optimize various banking-related services.
For better customer experience, we have also

Digital Transformation and Innovation digitally transformed some of our existing systems
and processes, such as automating bank forms,
LTG is slowly embedding digital technologies in its shifting customers to electronic Statements of
business processes. The Company acknowledges Account (e-SOA), and migrating existing customers
the value that digital transformation can contribute to PNB’s digital channels. These efforts also help
to its business model and operations. lessen our environmental footprint.
PNB’s digital strategy and initiatives are aligned PNB’s mobile banking platform, PNB Digital, offers
with the Bank’s key strategic business pillars. more advanced and secure features, expanded
Understanding market and customer trends as well payment and disbursement capabilities, and better
as the business and regulatory landscape, gives us access to products and services. For 2022, the
actionable insights to enhance our strategy. Our key PNB Digital and Account Access Portal users
retail business units also provide inputs that help grew by 349% or an overall increase of 31% in
shape the strategic direction of our Bank’s digital our total digital user base. In parallel, significant
innovation and transformation. growth in our customer engagement, particularly in
transaction count and volume, increased by 118%
The Bank’s digital program is implemented through and 160%, respectively. In addition, through our
various Committees within the company. Our social media platforms, we continue to communicate
Projects Prioritization Committee is in charge of to consumers our digital banking app to increase its
clearing and approving major strategic projects enrolment and usage.
of PNB. The Mobile Steering Committee and
Technology Committee approve and monitor the Apart from our digital platforms, we continue to
project priorities of the Bank, while the Board operate our automated teller machines (ATMs)
IT Governance ensures the alignment of digital and cash acceptance machines (CAMs), providing
initiatives with enterprise priorities and overall customers with easy access to their funds. By
targets of PNB. the end of 2022, PNB has a total of 1,575 ATMs,
145 CAMs, 29 Corporate CAMs, and 8,367 point-
To avoid digital and financial-related risks, we of-sales (POS) terminals for 24-hour banking
adhere to the BSP Policy on Electronic Banking and convenience for our clients.
Financial Services and related regulations such as
Guidelines on Electronic Payments, Operations on
Payment Systems, Anti-Money Laundering (AMLA)
Rules and Regulations, Data Privacy Law, and

FB-AB-270a.1, FB-NB-270a.1
ATMs CAMs POS Terminals

2022 1,575 145 8,367
2021 1,586 165 6,603
2020 1,578 144 7,120
Source: Digital Innovations Group and ITBG, PNB
PNB introduced the PNB Cashnet Plus mobile app in February 2022 to provide
more efficient online business transactions. The mobile app enables clients
to view their accounts, monitor their receivables, and initiate and approve
payments. At year-end, nearly a thousand IBS clients were onboarded in less
than four months.
FB-AB-270a.1, FB-NB-270a.1
Digital banking
(mobile and internet) Enrolled users 31% 517% New enrollment
2022 1,508,741 % Inc./Dec. 347,878
2021 805,906 2022 v. 2021 56,342
2020 749,564 221,418
For the reporting period, no violation of the policies and regulations governing
our digital products and services has been noted.
Tanduay is slowly integrating digital technology into its business process and
operations. Various avenues for digital transformation are being explored to
enhance customer experience. In 2022, we implemented the enhancement
of freight charges for accrual. We are also planning to implement a Human
Capital Management (HCM) payroll system for efficient payroll processing and
the enhancement of its inventory costing.
Customer Data Privacy and Security

GRI 3-3, FN-CB-230a.2
LTG takes data privacy and security very seriously. for monitoring trends and training key staff who
Mindful of the risks and threats to data security, could be at risk of cyber-attacks. To enhance data
we have enhanced our data protection policies security, we set up a secure network for its staff and
and equipped ourselves with cybersecurity tools to a secure channel for storing sensitive information.
protect the Company and customer information. The Company’s IT equipment is constantly
reviewed, modified, and upgraded as needed. The
LTG created an Information Technology (IT) IT Team also regularly conducts staff training to
Team to flag data security risks that would impact enhance internal cybersecurity awareness.
the business. The IT Team is also responsible

To manage customer privacy, Asia Brewery has Data Privacy Manual for overseas branches.
started developing its Data Classification Policy To proactively assess risks, we implement a
that governs the use of all data or information Privacy Impact Assessment Policy based on ISO
created, collected, stored, or processed by its 27001/2/5 and DPA of 2012 for the conduct of the
business. The company has established an Incident Privacy Impact Assessment Process, Information
Management Policy and Information Security Security Risk Assessment Process, and Third Party
Incident Policy and Procedures to minimize and Information Security Risk Assessment Process.
respond to potential data or security breaches. We
also apply a non-disclosure agreement for third- With the introduction of teleworking, the Bank’s
party agencies or service providers. We adhere Human Resource Group has issued a Policy on
to the Advertising Standard Council’s policy to Telecommuting to protect employee privacy and
ensure that information on our advertising and ensure the security of equipment, IT infrastructure,
communication materials are not misleading or and systems.
violative of existing advertising standards.
Eton respects customer privacy by complying

with the provisions of the Data Privacy Act of
2012 and implementing its own data privacy and
cybersecurity practices. The purpose of the law
is to protect personal data in the information and
communications systems of the public and private
sectors. In line with the Data Privacy law, we
have installed cybersecurity tools and established
processes related to backup procedures to
minimize data security risks. In the event of a data
breach, our company immediately reports it to
the National Privacy Commission within 72 hours.
The organization actively promotes cybersecurity
awareness to prevent and respond to data breaches
and other cybersecurity threats.
PNB implements various company policies to

ensure customer data privacy and security.
For instance, the Bank’s data protection policy
addresses security risks that could affect PNB’s
data and operations. Under the overall framework
of the Revised Policy and Implementing Guidelines
on Consumer Protection, PNB highlights the
importance of protecting consumers in all stages
of their transactions. Our consumer protection
and data privacy policies include the Enterprise
Data Privacy Policy, the Governance and Risk
Management Sub-Policy, and Data Privacy
Architecture, supplemented by the PNB Enterprise

Society
Community Relations and Initiatives GRI 3-3, 203-2, 413-1
LTG considers local communities as development

partners. Thus, the Company is committed to Total number of operations with
positively impacting the communities in which it implemented local community
operates. Across the Group, active steps have been engagement, impact assessments
taken to integrate social good into LTG’s business. and/or development programs
2022 168
Asia Brewery is committed to supporting local
development by delivering various community- 2021 155
oriented programs. In particular, we have
implemented environmental protection and 2020 38
education initiatives. For example, a tree-planting
activity was coordinated by the Pampanga Plant,
Davao Plant, El Salvador Plant, and Cabuyao Plant
to prevent flooding and protect the local communities Total number of operations
in these areas. Furthermore, to generate positive
social impact, education programs organized by the 2022 194
company include the Brigada Eskwela and Balik
2021 82
Eskwela Program. The Brigada Eskwela Program
aims to help parents and government school 2020 57
officials rehabilitate classrooms and clean up the
school to prepare for class opening. Meanwhile,
we donated school supplies and educational
materials to government schools under the Balik
Eskwela Program. We also distributed tokens of Percentage of operations with
implemented local community
appreciation to Special Education teachers during
engagement, impact assessments
World Teachers’ Day and donated books at selected
and/or development programs
orphanages as part of National Children’s Day.
2022 87%
Eton aims to positively impact the community by
2021 67%
creating charitable programs in partnership with
government and non-government entities. For 2020 67%
example, we linked with the Rotary Club of Quezon
City to raise funds to help generate more awareness
and strengthen the vaccination drive against polio.
Furthermore, to increase agricultural productivity in
the province of Nueva Ecija, we donated additional
seedlings to local farmers under the Masaganang
Palayan program with the assistance of the Tan Yan
Kee Foundation. For the Christmas season, our
company collaborated likewise with the TYKFI to
nurture health and provide fresh produce to seniors
discarded from society in Kanlungan ni Maria in
Antipolo City and Group Home for Abandoned

Older Women. Moreover, our company organized projects, which include clean-up and rehabilitation
a Christmas Parol-making contest with the Quezon activities in schools, donative drives for fisherfolks
City government to promote camaraderie and unity and farmers, and supporting fisherfolks by
among the barangays in the city. augmenting their income.
For PNB, corporate social responsibility (CSR) is In 2022, LTG delivered a total of 130 community-
a way to effect positive changes in the community. oriented operations, 123 of which comprise local
With the leadership of the Bank’s Corporate community engagement, impact assessments, or
Sustainability Unit (CSU) and Human Resources development programs. LTG’s corporate social
Group (HRG), various CSR and volunteer- responsibility programs are focused on agriculture
oriented initiatives are being implemented by and forest development, such as reforestation,
PNB. Our onsite CSR activities were limited during agroforestry, agri-entrepreneurship and livelihood,
the Covid-19 pandemic; however, community and food security. LTG operations with local
coordination and communication continued. In community engagement, impact assessments,
addition, we have organized virtual activities such as and development programs include calamity
wellness and sustainability fairs. and healthcare assistance, vaccination drive,
tree planting activities, food and school supplies
The Bank also carried out initiatives to protect distribution, and agricultural input distribution.
and preserve the environment. For example,
this year, we held a tree-planting activity called
“PNB CommuniTree” in Brgy. Mamuyao, Tanay,
Rizal to celebrate the Bank’s 106th anniversary in
partnership with Tan Yan Kee Foundation, Inc.
PNB also extended support to its outsourced

personnel during the pandemic, given the social
and economic consequences of the health crisis.
Our company focused on helping the guards,
maintenance staff, clerks, drivers, and messengers
greatly affected by the pandemic. An employee-
giving program was also rolled out to support the
outsourced personnel of the Bank.
Tanduay forged a partnership with Dualtech

Training Center, a private vocational school
established in 1982, to train the Center’s students
for a period of 18 months. Under TESDA,
beneficiary students were given dual training on
operating, repairing, and maintaining various
industrial equipment and facilities.
ADI partners with local communities to implement

social and environmental initiatives. ADI employees
are encouraged to volunteer in these company-led

GRI Content Index
Statement of use LT Group, Inc. has reported in accordance with the GRI Standards for the
period 1 January 2022 to 31 December 2022.
GRI 1 used GRI 1: Foundation 2021

Applicable GRI Sector Standard(s) None
Omission GRI
GRI Standard / Sector
Disclosure Location Requirements (s)
Other Source Reason Explanation Standard
Omitted Ref. No.
General Disclosures
GRI 2: General 2-1 Organizational details 7
Disclosures 2021
2-2 Entities included in the organization's sustainability reporting 1
2-3 Reporting period, frequency and contact point 1-2
2-4 Restatements of information 5, 30, 32,

33, 35
2-5 External assurance 1
2-6 Activities, value chain and other business relationships 9, 11, 26
2-7 Employees 39
2-8 Workers who are not employees 2-8-a to 2-8-c Information Collection of this
unavailable information has not
been initiated
2-9 Governance structure and composition 19-20

2-10 Nomination and selection of the highest governance body 19
2-11 Chair of the highest governance body 19
2-12 Role of the highest governance body in overseeing the 19
management of impacts
2-13 Delegation of responsibility for managing impacts 21
2-14 Role of the highest governance body in sustainability reporting 21
2-15 Conflicts of interest 21
2-16 Communication of critical concerns 21
2-17 Collective knowledge of the highest governance body 21
2-18 Evaluation of the performance of the highest governance body 21
2-19 Remuneration policies 21
2-20 Process to determine remuneration 21
2-21 Annual total compensation ratio 2-21-a to 2-21-c Confidentiality Owing to the
constraints sensitivity of the
information, the
Company deems
the salary of the
highest paid indi-
vidual as confiden-
tial. Nevertheless,
compensation is
based on perfor-
mance.
2-22 Statement on sustainable development strategy 21
2-23 Policy commitments 47
2-24 Embedding policy commitments 47
2-25 Processes to remediate negative impacts 47, 50
2-26 Mechanisms for seeking advice and raising concerns 47
2-27 Compliance with laws and regulations 23
2-28 Membership associations 12
2-29 Approach to stakeholder engagement 13-16

Material Topics
GRI 3: Material 3-1 Process to determine material topics 2, 17
Topics 2021
3-2 List of material topics 17
Economic and Governance

GRI 3: Material 3-3 Management of material topics 28, 36
Topics 2021
GRI 201: Economic 201-1 Direct economic value generated and distributed 5, 28
Performance 2016
201-2 Financial implications and other risks and opportunities due 36
to climate change
GRI 3: Material 3-3 Management of material topics 55
Topics 2021
GRI 203: Indirect 203-2 Significant indirect economic impacts 55
Economic Impacts
2016
GRI 3: Material 3-3 Management of material topics 23-24
Topics 2021
GRI 205: Anti- 205-2 Communication and training about anti-corruption policies 23-24
corruption 2016 and procedures
205-3 Confirmed incidents of corruption and actions taken 23-24

Topics 2021
GRI 414: Supplier 414-2 Negative social impacts in the supply chain and actions taken 26-28
Social Assessment
2016
Environment
Topics 2021
GRI 302: Energy 302-1 Energy consumption within the organization 35
2016
Topics 2021
GRI 303: Water and 303-1 Interactions with water as a shared resource 29-30
Effluents 2018
303-2 Management of water discharge-related impacts 29-30
303-3 Water withdrawal 30
303-4 Water discharge 30
303-5 Water consumption 30
Topics 2021
GRI 304: Biodiversity 304-2 Significant impacts of activities, products and services on 33-34
2016 biodiversity
GRI 305: Emissions 3-3 Management of material topics 34-38
2016
GRI 3: Material 305-1 Direct (Scope 1) GHG emissions 38
Topics 2021
305-2 Energy indirect (Scope 2) GHG emissions 38
Topics 2021
GRI 306: Waste 306-1 Waste generation and significant waste-related impacts 31-32
2020
306-2 Management of significant waste-related impacts 31-32
306-3 Waste generated 32
306-4 Waste diverted from disposal 32
306-5 Waste directed to disposal 33

Employees
Topics 2021
GRI 401: 401-1 New employee hires and employee turnover 40
Employment 2016
401-2 Benefits provided to full-time employees that are not provided 40
to temporary or part-time employees
401-3 Parental leave 41

Topics 2021
GRI 403: 403-1 Occupational health and safety management system 44-46
Occupational Health
and Safety 2018
403-2 Hazard identification, risk assessment, and incident 44-46
investigation
403-3 Occupational health services 44-46
403-4 Worker participation, consultation, and communication on 44-46

occupational health and safety
403-5 Worker training on occupational health and safety 44-46
403-6 Promotion of worker health 44-46
403-7 Prevention and mitigation of occupational health and safety 44-46

impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety 46
management system
403-9 Work-related injuries 46

Topics 2021
GRI 404: Training 404-1 Average hours of training per year per employee 44
and Education 2016
404-3 Percentage of employees receiving regular performance and 42-43
career development reviews
Topics 2021
GRI 406: Non- 406-1 Incidents of discrimination and corrective actions taken 47-48
discrimination 2016
Customers
Topics 2021
GRI 416: Customer 416-1 Assessment of the health and safety impacts of product and 50-51
Health and Safety service categories
2016
Topics 2021
GRI 417: Marketing 417-1 Requirements for product and service information and 49
and Labeling 2016 labeling
417-2 Incidents of non-compliance concerning product and service 49
information and labeling
417-3 Incidents of non-compliance concerning marketing 49
communications
Society
Topics 20 21
GRI 413: Local 413-1 Operations with local community engagement, impact 55-56
Communities 2016 assessments, and development programs

SASB Content Index
LT Group, Inc. has also prepared this report following the industry-specific ESG
guidance framework of SASB Standards Food and Beverage Sector - Alcoholic
and Non-Alcoholic Beverages 2018, Infrastructure Sector - Home Builders and
Real Estate 2018, and Financials Sector - Commercial Banks 2018. This content
index provides an overview of LTG's Environmental, Social, and Governance
data that align with these standards. Other SASB codes are omitted due to lack
of applicability, confidentiality, or unavailability of data.
Location/
Topic Code Accounting Metrics
Response
Food & Beverage Sector - Alcoholic and Non-Alcoholic Beverages
Energy FB-AB-130a.1 (1) Total energy consumed, (2) percentage grid 35
Management FB-NB-130a.1 electricity, (3) percentage renewable
FB-AB-140a.1 (1) Total water withdrawn, (2) total water consumed, percentage of each 30
Water FB-NB-140a.1 in regions with High or Extremely High Baseline Water Stress
Management FB-AB-140a.2 Description of water management risks and discussion of strategies and 29
FB-NB-140a.2 practices to mitigate those risks
Percentage of total advertising impressions made on individuals at or 49
FB-AB-270a.1
above the legal drinking age
Responsible
Number of incidents of non-compliance with industry or regulatory 49
Drinking & FB-AB-270a.2
labeling and/or marketing codes
Marketing
Total amount of monetary losses as a result of legal proceedings 49
FB-AB-270a.3
associated with marketing and/or labeling practices
Percentage of advertising impressions (1) made on children and (2) 49
FB-NB-270a.1
made on children promoting products that meet dietary guidelines
Product
Number of incidents of non-compliance with industry or regulatory 49
Labeling & FB-NB-270a.3
labeling and/or marketing codes
Marketing
Total amount of monetary losses as a result of legal proceedings 49
FB-NB-270a.4
associated with marketing and/or labeling practices
Financials Sector - Commercial Banks
Data Security FN-CB-230a.2 Description of approach to identifying and addressing data security risks 53

TCFD Content Index
Recommended Disclosures Location/Response
Governance
Disclose the organization’s governance around climate-related risks and opportunities
a) Describe the board’s oversight of climate-related risks and opportunities 36-38
b) Describe management’s role in assessing and managing climate- related risks and opportunities 36-38
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy,
and financial planning where such information is material
a) Describe the climate-related risks and opportunities the organization has identified over the short,
36-38
medium and long term
b) Describe the impact of climate- related risks and opportunities on the organization’s businesses,
36-38
strategy and financial planning.
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-
36-38
related scenarios including a 2°C or lower scenario
Risk Management
Disclose how the organization identifies, assesses, and manages climate-related risks
a) Describe the organization’s processes for identifying and assessing climate- related risks 36-38
b) Describe the organization’s processes for managing climate- related risks 36-38
c) Describe how processes for identifying, assessing, and managing climate- related risks are integrated into the
organization’s overall risk management
36-38
Metrics and Targets

Disclose the metrics and targets used to assess and manage relevant climate- related risks and opportunities where such
information is material
a) Disclose the metrics used by the organization to assess climate- related risks and opportunities in line
36-38
with its strategy and risk management process
b) Describe the targets used by the organization to manage climate- related risks and opportunities and
36-38
performance against targets

2023 March 20. LT Group SR 2022 - Final

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Table of Contents

About this Report 1

Message from the Chairman 3

Message from the President 4

2022 Highlights and Contribution to the UN SDGs 5

Our Organizational Profile 7

Sustainability for LT Group 13

Economic & Governance 19

GRI Content Index 57

SASB Content Index

Task Force on Climate-related Financial Disclosures (TCFD) Content Index

Reporting Scope and Boundary

Economic Performance Boundary

This report provides a comprehensive account of the financial performance

2022 LT Group, Inc. Sustainability Report 1

To assess significant environmental, social, and governance issues within the

Sustainability Reporting Guidelines and Standards

Furthermore, we also disclose our contributions to the United Nations (UN) 17

Sustainability Report Feedback

Your opinions, feedback, and recommendations will be much appreciated as

Advancing our Sustainability Journey 2

Business resilience is a critical element that can help

We are on the cusp of a prolonged economic recovery, and it will not be

Dr. Lucio C. Tan

2022 LT Group, Inc. Sustainability Report 3

Sustaining a business is undoubtedly challenging, particularly in

Advancing our Sustainability Journey 4

ENVIRONMENT GRI 2-4

Two-megawatt solar power generation Green Power Initiative

2022 LT Group, Inc. Sustainability Report 5

12,325 26,460,502 safe man hours

ZERO 1,575 ATMs, 179 CAMs, and

Php 170,908 amount of in-kind

Advancing our Sustainability Journey 6

The LT Group, Inc., or the companies under the

The conglomerate was organized in 2012, through

In terms of ownership, LTG’s ultimate parent

2022 LT Group, Inc. Sustainability Report 7

To be a world-class conglomerate Anchored to its Vision, the LT Group, Inc. commits:

Our Corporate Structure

1 Owns 50% less 1 share

Advancing our Sustainability Journey 8

Beverages mid-income high-rise and horizontal residential

To date, Eton has 36 projects under its wing, including

2022 LT Group, Inc. Sustainability Report 9

Advancing our Sustainability Journey 10

2022 LT Group, Inc. Sustainability Report 11

Advancing our Sustainability Journey 12

HOW WE ENGAGE KEY CONCERNS RAISED COMPANY’S RESPONSE

Government Agencies and Regulators

• Email • Better customer engagement • A reliable 24/7 customer

2022 LT Group, Inc. Sustainability Report 13

• Products and services that and overseas, offering

• Consultation • Hiring and retaining talents • Competitive salary

Advancing our Sustainability Journey 14

2022 LT Group, Inc. Sustainability Report 15

Advancing our Sustainability Journey 16

We conducted a thorough materiality assessment In October 2022, we held a materiality assessment

Following the assessment, our Senior Management organized an in-person