2019 Integrated Report
Human CapitalMotivating our workforce to be fit for the future
Overall employee engagement, three points higher than global high-performing organizations
of employees receive regular performance and career development reviews
Average training hours per employee
of total workforce represented in Health and Safety Committees
of total workforce covered by Collective Bargaining Agreements (CBA)
Grievances and employee discipline cases
Man-hours lost due to industrial disputes
Our human capital refers to the combined skills and know-how of our highly engaged workforce, as well as their commitment, motivation, and ability to lead, cooperate, and innovate. Drawing the best from our employees inevitably rests on our ability to properly manage and motivate our diverse teams and look after their overall welfare and wellness. This involves cultivating an environment where they can learn and grow with the company, feel appreciated, be fairly rewarded, and, ultimately, build meaningful careers.
The Human Resources Management Group (HRMG) takes the lead in meeting these challenges by actively collaborating with other designated teams in the areas of strategy development, culture-building, organizational development, and talent management based on key directions given by the Senior Leadership Team. The result is a fully integrated approach to people-related matters where goals and solutions are always aligned with the overall business objectives of the company.
This enables us to match our commitment to provide clean, renewable energy to our customers with the same drive in promoting the professional growth of our employees. Ours is a partnership that goes beyond the business of energy since they embody our very efforts to achieve sustainable development. We focus on putting them in the best position to lead the company into the future by providing them a progressive organization structure, listening to what they have to say, and investing in improvements to the delivery of employee services.
Empowered and Engaged Employees
In November 2019, we conducted an Employee Engagement Survey called MySay@EDC. This gathered the actual thoughts and opinions of the employees themselves related to the on-going transformation journey of the company. This was conducted by a leading global advisory company, which received the survey responses directly from the employees to ensure complete confidentiality.
The key survey measure was Sustainable Engagement, which aimed to answer the question: “Are employees motivated, enabled, and energized to deliver their best performance for the company?”
A total of 1,467 employees, or 96% of our workforce, participated in the survey through their candid feedback and inputs. This is higher than the global average response rate of 81%. Their individual responses revealed an incredible overall engagement score of 91%, which is three points higher than global high-performing organizations.
We are keen to understand further all the concerns of our workforce, so we will conduct similar surveys and continue to ask for their inputs to improve the overall employee experience in our organization. This is another example of our collaborative effort, as employees help define what is important to them while our leaders identify the action plans and solutions to be given priority.
EDC is supported by a highly engaged and empowered workforce.
Promoting Workplace Safety
EDC’s Mt. Apo Geothermal Project wins national safety award
In 2019, EDC was chosen as the National Occupational Safety and Health Champion at the 11th Gawad Kaligtasan at Kalusugan (GKK) Awards of the Department of Labor and Employment (DOLE). Since 1991, DOLE has been giving the GKK Awards to organizations and individuals with commendable safety practices in the workplace and in the community.
The award was given to EDC’s 108.48-megawatt Mt. Apo Geothermal Project (MAGP), located in Kidapawan City, North Cotabato, for its exemplary implementation of its safety and health programs and its promotion of occupational safety and health (OSH) towards zero accidents in the workplace.
Engr. Joel Handugan, the Health, Safety, and Environment (HSE) Officer at MAGP, together with Eduardo Morales, Jr., the Head of the HSE Department at MAGP, both won a National Silver Award for the individual category for their significant accomplishments and contributions to MAGP’s OSH initiatives.
“We are deeply honored to receive these awards that recognize our painstaking efforts to maintain a safe and healthy environment, not only for all employees of EDC, but also for all our stakeholders in our areas of operation,” says Morales.
EDC’s Health, Environment, and Safety Team, led by Engr. Joel Handugan, Ronnie Andador, Drigo Rizo, Engellau Flores, and Paulo Gooco, received the company’s national occupational safety and health award at the 11th Gawad Kaligtasan at Kalusugan Awarding Ceremony.
Our Management Approach: Social Development
The provision of clean renewable power is a critical factor of national development. Thus, our standard for leadership and excellence goes beyond the bottom line. We believe we do good business by doing good.
Throughout our value chain, we deal with various publics and commit to uplifting the lives of our internal and external stakeholders. These partners in social development include our employees, contractors, suppliers, host communities, energy industry allies, the media, the academe, non-governmental organizations (NGOs), peoples’ organizations, local government units (LGUs), government regulatory agencies, and our customers.
Our employment practices and workplace culture seek to bring out the best in people, while our corporate social responsibility (CSR) programs conform to international best practices and respond to global investor expectations concerning sustainability. We seek to protect human rights and enhance development opportunities as we deal with them.
To us, this is what it means for a company to be Powered by Good.
We encourage sustainable value creation for our employees through an established performance management system, a comprehensive individual development plan, and a competitive compensation and benefits package. We highlight the need for regular discussion between the managers and employees on career and individual development.
Our compensation and benefits programs are guided by principles that enable us to achieve our primary reward objectives, which are: (1) to keep rewards competitive in the relevant markets; (2) to align rewards with the individual, team performance, and company’s performance; (3) to send the right message; and (4) to deliver the appropriate total value.
At the same time, EDC strives to identify the optimal rewards and recognition mix, i.e., monetary and non-monetary, to attract, retain, engage, and motivate all our employees effectively .
We seek to maintain good management-employee relations to promote industrial harmony in the workplace. This is characterized by continuous communication and dialogue, good faith and transparency, and fairness and cooperation. A labor-relations policy is found in our Policy Manual, and there are provisions for the creation of labor-management councils in all our collective bargaining agreements (CBAs).
Occupational Health and Safety
We seek to promote a positive safety culture across the organization. Our new Corporate Health and Safety Policy provides for a safe and healthy working environment for all employees, contractors, and various stakeholders. Our Health and Safety Center of Excellence translates the policy into health and safety strategies, programs, and standards for uniform and consistent information and application across all our project sites.
We also comply with international guidelines and standards on labor and occupational health and safety (OHS). We have fleet-wide safety training with experts for employees and contractors to ensure safety management throughout operations. We have a Contractor Health and Safety Management Program, which requires them to attend and pass the Safety Passport Training before entry and work in EDC workplaces. Our third-party agreements also require compliance with the Independent Contractor Health, Safety, and Environment Requirement.
We collect, maintain, and monitor all necessary health and safety performance data through incident reporting and records management to measure the performance and effectiveness of the Health and Safety Management System and facilitate its continual improvement.
Regular assessments and internal and external audits seek to ensure the effectiveness of the Health and Safety Management System in managing OHS risks. Our targets are zero fatalities, zero lost-time incidents, and a total recordable incident rate of 0.10.
Training and Education
EDC trains its employees to be the best in their chosen fields of expertise. We believe that a highly trained and motivated employee can fortify the company’s geothermal leadership position and its reputation for global excellence.
To maintain this alignment, it is our policy to support the employees’ training and education, both in the Philippines and abroad, and finance relevant postgraduate courses and training in specialized non-degree courses. A leadership development program supports succession planning and management, and we make it a point to monitor the career development of each staff.
We ensure the provision of skills management and lifelong learning programs for the employees’ continued employability or for their transition to retirement.
Diversity and Equal Opportunity
We believe in upholding equal opportunity in the workplace. Our Wage and Salary Administration Policy states that employees who demonstrate their abilities through satisfactory job performance are given preference for promotions and upgrading opportunities.
It is also our policy to accord courteous reception to everyone seeking employment with the company. Employees are appraised and compensated based on their performance and not their gender.
Supplier Assessment for Labor Practices and Impacts on Human Rights
EDC’s commitment to protect labor and promote employee rights extends to its suppliers. We only deal with legal contractors that comply with labor laws and have no labor or human rights cases filed against them. Our contract terms and conditions stipulate that the independent contractor must strictly abide with all applicable laws pertaining to labor, employment, and contracting.
The supplier must fulfill all its legal obligations to its personnel, such as compensation, wages or fees, and all mandatory benefits related to labor, social security, health, and taxes. Part of our vendor’s documentary requirements for payment is the submission of an affidavit of compliance with the minimum wage and other mandatory statutory benefits of the government, such as SSS and PhilHealth.
Labor Practices and Human Rights Grievance Mechanisms
Our Whistleblower Policy allows employees, customers, shareholders, as well as other stakeholders to raise and report serious concerns involving labor practices and human rights violations, including illegal and questionable activities or omissions, unethical behavior, fraud, and other malpractices, prior to seeking resolution outside the company, without fear of harassment, retaliation, or adverse employment consequence. Our Whistleblower Policy laid down the procedures for whistleblowing, as well as the rights and responsibilities of the involved parties.
Our Intellectual Capital
Our 2019 Integrated Report
Our Integrated Report tells the story of our efforts to achieve our business objectives, hand-in-hand with our sustainability aspirations.