2018 Performance Report
Our Economic PerformanceBouncing back strong as consumers make the switch to renewable energy
Our Sustainability Development Goals and Commitments
Economic value generated
Economic value distributed
Economic value retained
avoided CO2e(based on EDC’s 0.1 ton CO2/MWh intensity)
Worth of small- and large-scale contracts to cooperatives and community associations
customer facilities supplied with clean power
invested for our environment programs
million invested in our strategic CSR programs
As a leading renewable energy company, EDC is committed to provide healthy financial returns to our shareholders. However, our responsibility to share value goes beyond our financial performance.
Given the scale and the footprint of our operations nationwide, we are cognizant of the fact that our business does not exist in a vacuum–we are but a part of a bigger community, and our primary resources come from the environment that we also share with others. Our sustainability framework demonstrates this relationship clearly: our business only grows and thrives when the society and environment wherein we operate grows and thrives as well.
Through our strategic operations, environmental stewardship, and corporate social responsibility, we are able to create and share value and extend the benefits of our business to a wider range of stakeholders. This multiplier effect shows how we are able to create greater positive impact from our business operations, and contribute to sustainable development in the long term.
One clear example of our multiplier effect at work is through our supply chain, and through our direct and indirect contributions to the local economies wherein we operate. Continued economic prosperity in the areas where we operate provides a meaningful indicator of how well we contribute to the local economy. As such, it is our policy to directly award the procurement of goods and services to local suppliers and contractors, and to prioritize qualified applicants from our primary partner barangays and host communities.
In 2018, we awarded PhP33.3 million worth of small- and large-scale contracts to cooperatives and community associations, which helps build their capabilities for economic conclusion. By employing local suppliers and contractors, we continue to boost the local economy and help create growth opportunities for local businesses.
EDC also supplies energy to 97 customer facilities supplied with clean power, and they, in turn, become part of a supply chain that not only helps power commercial and industrial business activities, but does so with clean and renewable energy. This working relationship has its inherent economic and environmental benefits as well.
We also recognize that our business is only made possible through the healthy and stable forest and watershed ecosystems that support our geothermal resources. In 2018, we invested around PhP43.6 million for our environmental programs geared towards reforestation, watershed management, waste management, and sanitation, among others.
Through our environmental programs, such as our BINHI Greening Legacy program, we not only help protect the natural resources, but also help generate significant environmental returns that have far-reaching benefits for the country like carbon sequestration, biodiversity conservation and mitigation of climate change impacts. .
Similarly, we also invest heavily on strategic corporate social responsibility programs, with a particular focus on education, health, and livelihood. In 2018, our community investments amounted to around PhP127 million. These community investments do not just benefit EDC in terms of strengthening its social license to operate, they also help create economic and social opportunities for our host communities, our 47 primary partner barangays (PPBs), thereby empowering them towards community resilience and self-sufficiency.
In 2018, prudent planning and proper management of costs enabled EDC to effectively maintain its strong financial position, bolstered by the excellent performance of its individual business units.
Following our strategic investments to build resilience into our operations, our business units not only met but exceeded our targets for power generation and recurring net income attributable (RNIA) in 2018.
In 2018, total core revenue amounted to PhP38 billion (with PRFRS 15 adoption), a 14.2% increase from the PhP33.3 billion in 2017. Had the Philippine Financial Reporting Standards (PFRS) 15 been applied in 2017, this would have resulted in a revenue of PhP34.5 billion. This strong financial performance is bolstered by a higher generated total energy sales of 8,945.3 gigawatt hours (GWh), a 12.5% increase from our 7,951.4 GWh generated total energy sales in 2017. If the PFRS 15 were applied, in 2017 energy sales would have amounted to 8,437.9 GWh. This increase in total company revenue is also attributable to our expanded customer base. In 2018, we saw an increase in both the number of our customers, and the number of customer facilities that we serve. The number of customer facilities served increased from 84 to 97, a 15.5% increase over 2017.
Our Management Approach: Economic Sustainability
- the acquisition of key government geothermal privatization projects;
- development of existing geothermal capacity;
- diversification of its renewable energy portfolio; and
- the establishment of viable operations in Asia, Latin America, and Africa.
Indirect Economic Impact
The quality of suppliers plays a critical role in our success. Supply Chain Management allows us to undertake strategic sourcing for uninterrupted supply of goods and services, optimized inventory levels, vendor accreditation, spend analysis and market studies, and warehousing and logistics, among others.
Our Environmental Performance
Our 2018 Sustainability Report
Our Performance Report tells the story of our efforts to achieve our business objectives, hand-in-hand with our sustainability aspirations.