Geothermal energy producer Energy Development Corp. shifted to integrated reporting as part of a move toward sustainability and a “decarbonized and regenerative future” for energy.
EDC released its first IR with 2019 financial and non-financial performance to measure the value that the company contributes to the ecosystem.
“This shift toward an integrated reporting practice reflects EDC’s proactive approach to the long-term growth of the company. We have focused on improving and reporting on our sustainability performance for almost a decade. Today, we understand that sustainability was only the first step in our journey. Now, we shift our focus to regeneration, in the hopes that we can restore the environment we share and create a better future for all Filipinos,” the report stated.
EDC has for the past nine years reported on sustainability performance utilizing the Global Reporting Initiative Standards, which primarily covers the “triple bottom line” or impact on people, planet and profit.
EDC’s new report enhances the discussion and presentation of material issues and disclosures guided by GRI standards with the framework set forth by the International Integrated Reporting Council.
The IIRC framework measures the performance and value that businesses have created based on six forms of capital including financial capital; manufacturing capital; human capital; social and relationship capital; intellectual capital; and natural capital.
EDC said the integrated reporting is an essential tool in regenerative development, a globally emerging business principle centered on holistic processes among these various types of capital, building support systems for future growth, and enabling renewal of resources.
It goes beyond sustainability and organizational impact on citizens, the economy and the environment, and extends to how the company intends to create value in the short to medium and long term.
EDC chairman and chief executive Federico Lopez said the move is part of a renewed mission for the company and the entire First Philippine Holdings conglomerate “to forge collaborative pathways for a decarbonized and regenerative future.”
Being a pure renewable energy company with geothermal as its primary resource puts EDC at the heart of the Lopez group’s commitment to decarbonization, which is crucial to fighting climate change.
EDC posted its highest recurring net income of P11.6 billion in 2019 despite enduring challenges in the energy sector. It also reported a record 9,300.1 gigawatt-hours of total energy sales from 100-percent renewable energy sources, up by 4 percent from 8,945.3 GWh in 2018.
“As a result of all our operational improvements, our EBITDA grew by 15 percent versus the prior five-year average,” said EDC president and chief operating officer Richard Tantoco.
EDC maintains a portfolio of 1,499.14 megawatts of clean, 100-percent renewable energy consisting of 1,204.67 MW of reliable and sustainable geothermal energy, along with 150 MW of wind, 132.5 MW of hydro and 11.97 MW of solar.