Professional Documents
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GLO Integrated Report 2019
GLO Integrated Report 2019
of connectedness
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Contents
4 Business Overview
About Globe
Conglomerate Map
Globe Presence
2019 at a Glance
2019 Awards and Recognition
About this Report
18 Leadership
Message from the Chairman
Message from the President
Corporate Governance
Board of Directors
Risk Management
Management Discussion & Analysis
82 Strategy
Strategy Map
Stakeholder Engagement
Materiality
How Globe Creates Value
94 Capitals
Financial
Manufactured
Intellectual
Human
Social and Relationship
Natural
164 Statutory Reports
Certificates of Compliance
Board Committee Reports
External Assurance Statement
Audited Financial Statements Overview
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Globe Telecom 2019 Integrated Report
Business
Overview
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Globe Telecom 2019 Integrated Report
About Globe Telecom, Inc.
Globe Telecom, Inc. (“Globe” or the “company”) is a leading Globe keeps Filipinos connected wherever they may be in
full-service telecommunications company in the Philippines the world, through its tie-up with 776 roaming partners in 237
and is listed in the Philippine Stock Exchange under ticker calling destinations worldwide.
symbol GLO. The company serves the telecommunications
and technology needs of consumers and businesses across Its principals are Ayala Corporation and Singapore Telecom,
an entire suite of products and services including mobile, both acknowledged industry leaders in the country and in
fixed, broadband, data connectivity, internet and managed the region.
services. It has major interests in financial technology, digital
marketing solutions, venture capital funding for startups, and In 2019, Globe became a signatory to the United Nations
virtual healthcare. Global Compact, committing to implement universal
sustainability principles.
Supported by over 8,000 employees and over 1.2 million
retailers, distributors, and business partners nationwide, The company’s headquarters is located at The Globe Tower,
the company currently has 94.2 million mobile subscribers, 32nd Street corner 7th Avenue, Bonifacio Global City, Taguig
both prepaid and postpaid, and more than 2 million home City 1634, Metro Manila, Philippines. For more information,
broadband customers. visit www.globe.com.ph.
Vision Mission
We see a Philippines where families’ We create wonderful experiences for
dreams come true, businesses flourish people to have choices, overcome
and the nation is admired. challenges and discover new ways to
enjoy life.
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Circle of Happiness
EMPLOYEES are empowered and find meaning in work.
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Globe Telecom 2019 Integrated Report
Conglomerate Map
The Globe Group
GLOBE TELECOM, INC
INNOVE
100% TechnoGlobal1
49%
ASTICOM
100%
GTIBH
100% Globetel European Limited GTI Corp. GTHK Globetel Singapore
100% 100% 100% 100%
UKGT3
100%
GMI3
100%
GIEE2
GTowers6 100%
100%
Kickstart
100% Flipside5
40%
Bayantel
98.58% RCPI TelicPhil6 Sky Internet Globetel-Japan NLI
91% 58% 100% 100% 70.38%
Taodharma
67%
VTI1
50%
BAHC1
50%
BHC1
50%
EC Pay7
77% 1
Accounted for as Joint Ventures
2
Liquidated in 2019
BMPL1
3
Liquidated in 2018
4
Deconsolidated in 2017 due to loss of control
10% (Accounted as Joint Ventures)
5
Ceased Operation
6
Incorporated in 2018
7
Consolidated in 2019
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The 2019 consolidated financial statements include the accounts of Globe Telecom and the following subsidiaries:
Parent Company’s
Name of Place of Principal percentage of
Subsidiary Incorporation Activity Ownership
2019 2018
Subsidiaries
Innove Philippines Wireline voice and data communication services 100% 100%
GTI Philippines Holding company 100% 100%
GTIC United States Wireless and data communication services 100% 100%
GTHK Hong Kong Marketing and distributing company 100% 100%
GTSG Singapore Wireless and data communication services 100% 100%
GTEU United Kingdom Holding company 100% 100%
UKGT*** United Kingdom Wireless and data communications services - -
GMI*** Italy Wireless and data communications services - -
GIEE** Spain Wireless and data communications services - 100%
KVI Philippines Venture capital company 100% 100%
FPSI* Philippines E-book solutions 40% 40%
Asticom Philippines Support and shared services provider 100% 100%
GCVHI Philippines Holding company 100% 100%
GFI**** Philippines Holding company 46% 45%
Fuse**** Philippines Lending company 100% 100%
GXI**** Philippines Fintech company 100% 100%
AHI Philippines Holding company 100% 100%
AI Philippines Advertising company 100% 100%
Socialytics Philippines Advertising company 70% 70%
BTI Philippines Wireline voice and data communication services 99% 99%
RCPI Philippines Wireline communication services 91% 91%
Telicphil* Philippines Telco equipment administration and maintenance 58% 58%
Sky Internet Philippines Data communication services 100% 100%
GlobeTel Japan Japan Wireless and data communication services 100% 100%
NLI Philippines Land holding company 70% 70%
Tao Philippines Distributing company 67% 67%
G. Towers Inc.***** Philippines Tower company 100% 100%
Yondu****** Philippines Information technology and software development 100% 49%
EC Pay****** Philippines Information technology and electronic services 77% -
Details of the Globe Group’s investments in associate and joint ventures and the related percentages of ownership
as of December 31, 2019 and 2018 are shown below:
Associates
Yondu******* Philippines Mobile content and application development services 100% 49%
AFPI Philippines Construction and establishment of systems, infrastructure - 20%
Joint Ventures
VTI Philippines Telecommunications 50% 50%
BAHC Philippines Holding company 50% 50%
BHC Philippines Holding company 50% 50%
Konsulta Philippines Health hotline facility 50% 50%
TechGlobal Philippines Installation and management of data centers 49% 49%
GFI/Mynt******** Philippines Holding company 46% 45%
BMPL Singapore Mobile technology infrastructure and common service 10% 10%
Prepaid
Globe Prepaid Corporate Offices
TM
Valero Telepark
Home Broadband
Fixed Line and Home TGT (The Globe Tower)
Broadband Business Corporate Data
W City Center
Fixed Line Voice
GTPlaza 1 and GTPlaza 2
International Long Distance Services GTITPlaza Lahug
TGT-Cebu
Mandalagan Bacolod
Customers JM Basa Iloilo
94.2 million over 2 million CDO Gateway Corp Office
mobile home broadband Davao Abreeza
customers customers
Employees
8,048
Globe employees
Vendors
840 234
local international
vendors vendors
Globe Stores
AYALA CENTRIO CDO KCC MALL KORONADAL SM TARLAC PD FISHERMALL
CDO LIMKETKAI GOS MIDSAYAP PD IBA ZAMBALES PD ROBINSONS MAGNOLIA QC
VALENCIA SM GENERAL SANTOS PD BALANGA BATAAN SM MASINAG
SM CDO PD TACURONG SM TELABASTAGAN SM ANGONO
PD GINGOOG MISAMIS ORIENTAL PD KIDAPAWAN SM CLARK SM TAYTAY
PD MALAYBALAY, BUKIDNON PD KCC MALL GENSAN SM SAN FERNANDO PD MONTALBAN RIZAL
PD SM CDO PREMIER TUGUEGARAO SM PAMPANGA PD ROBINSONS PLACE ANTIPOLO
GAISANO BUTUAN PD SANTIAGO PD MARQUEE MALL PD SM SAN MATEO
PD SAN FRANCISCO PD ILAGAN ISABELA SM BALIUAG PD TANAY RIZAL
PD TANDAG PD ROXAS ISABELA SM MARILAO ROBINSONS GALLERIA
PD SURIGAO PD SOLANO PD GRACELAND MALOLOS SM EAST ORTIGAS
OZAMIS PD SM CAUAYAN PD SM SAN JOSE DEL MONTE SM MARIKINA
GAISANO ILIGAN PACIFIC MALL CABANATUAN PD STARMALL SAN JOSE DEL MONTE AYALA 30TH
PAGADIAN MS SM CABANATUAN PD PLARIDEL PD LUCKY GOLD
ZAMBOANGA WALTERMART GAPAN PD STA. MARIA PD STA. LUCIA
PD DIPOLOG PD BALER, AURORA SM VALENZUELA GREENHILLS
PD OROQUIETA CANDON PD ROBINSONS TOWN MALL MALABON SHANGRI-LA
PD ZAMBOANGA VIGAN PD SM CENTER SANGANDAAN SM MEGAMALL
PD SINDANGAN PUREGOLD LAOAG PD VALENZUELA TOWN CENTER ALABANG TOWN CENTER
DAVAO ABREEZA SM BAGUIO FAIRVIEW TERRACES AYALA FESTIVAL SUPERMALL
TAGUM PD LA TRINIDAD SM FAIRVIEW SM SOUTHMALL
SM DAVAO DAGUPAN SM NOVALICHES SM MUNTINLUPA
SM LANANG SAN FERNANDO, LA UNION SM NORTH EDSA PD SM CENTER LAS PINAS
PD MATI SM ROSALES TRINOMA GLORIETTA
PD GAISANO DIGOS SM URDANETA UP TOWN KATIPUNAN GREENBELT 4
PD PANABO PD AGOO PD CONGRESSIONAL AVE QC ROCKWELL
PD DAVAO GAISANO HARBORPOINT MS ALI MALL TOWER ONE
PD TORIL DAVAO SM OLONGAPO EASTWOOD MALL PD CASH & CARRY
COTABATO CITY SM OLONGAPO CENTRAL GATEWAY AYALA MANILA BAY
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Globe Stores
Globe Corporate Offices
Globe Stores
SM BF HOMES SM BACOOR PD GAISANO CARCAR BORACAY (DMALL)
SM BICUTAN SM ROSARIO PD ICM LAPU-LAPU ROBINSONS ROXAS
SM SUCAT SM MOLINO PD PARK MALL CEBU PD SAN JOSE, ANTIQUE
PUERTO PRINCESA AYALA ARVO KIOSK AYALA CENTER CEBU PD GAISANO ROXAS
SM MALL OF ASIA AYALA IMUS MS ELIZABETH MALL PD KALIBO
PD CORON PALAWAN PD ROBINSONS IMUS GAISANO TABUNOK GAISANO ILOILO
BINONDO PD SM TRECE MARTIRES SM CEBU SM ILOILO
ROBINSONS PLACE MANILA CITIMART BAUAN SM SEASIDE CEBU SM DELGADO
SM SAN LAZARO ROSARIO BATANGAS PD ROBINSONS CYBERGATE CEBU PD PASSI ILOILO
SM STA. MESA LEMERY PD ROBINSONS GALLERIA CEBU CITY MALL BORACAY
SM MANILA SM BATANGAS CATBALOGAN ATC ACTIVITY CENTER
PD TUTUBAN CENTER MALL SM LIPA CALBAYOG GREENBELT ODYSSEY
ICONIC PD NASUGBU BATANGAS MAASIN GREENBELT BRIDGEWAY
MARKET MARKET PD TANAUAN TACLOBAN MARKET MAIN CONCIERGE
SM AURA PINAMALAYAN PD ORMOC MARKET STARBUCKS
GLOBE HQ, TAGUIG CALAPAN PD NAVAL MARKET TIME STUDIO
UPTOWN BGC LUCBAN QUEZON LOPUES EAST GLORIETTA LANDMARK
PD TAGUIG SM LUCENA ROBINSONS BACOLOD GLORIETTA OLD ACTIVITY CENTER
CALAMBA PD BOAC MARINDUQUE SM BACOLOD TRINOMA 2F
SAN PABLO AYALA LEGAZPI AYALA BACOLOD TRINOMA ACTIVITY CENTER
SM STA. ROSA SM LEGAZPI PD GAISANO SAN CARLOS, NEGROS OCC TRINOMA LOTTO AREA
PD NUVALI SM NAGA PD CADIZ NEGROS OCC PD SM MINDPRO ZAMBOANGA
PD ROBINSONS SAN PEDRO PD TUGBO MASBATE PD LA CARLOTA, NEGROS OCC AYALA CAPITOL BACOLOD
PD STA. CRUZ PD LIGAO ALBAY GALLERIA LUISA PD SM GRAND CENTRAL
PD WALTERMART CABUYAO PD SORSOGON ISLAND CITY MALL
CENTRAL MALL CAVITE PD DAET DUMAGUETE
SM DASMARINAS J.CENTER MANDAUE PD KABANKALAN NEGROS OCC
PD SERIN TAGAYTAY SM CONSOLACION PD TANJAY
PD WALTERMART CARMONA PD BOGO PD BAYAWAN
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Globe Telecom 2019 Integrated Report
2019 at a Glance
Five-Year Financial Highlights
Gross Service Revenues (in Billion Pesos) 113.679 120.588 127.906 132.875 149.010
(up 12% YoY)
22.284
Net Income After Tax (in Billion Pesos) 16.484 15.888 15.084 18.626 (up 20% YoY)
Market Capitalization (in Billion Pesos) 245.840 200.333 252.542 252.801 269.081
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Economic Supply Chain
• Over 1.2 million AMAX retailers, distributors and business
Financials partners nationwide
• 149.0B Gross Service Revenues (up 12% YoY) • 86.5B business to local suppliers
• 76.0B EBITDA (up 17% YoY)
• 22.3 Net Income (up 20% YoY) Subsidiaries
• 34.2% CAPEX to Revenue Ratio • TELEHEALTH
• 12.1B Dividend Payment to Common Shareholders »» 12,429 health-related consultations through KonsultaMD
• 28.9% Return on Equity »» 699,414 customers with access to KonsultaMD
• 11% Shareholder Return (based on a closing share price of • FINANCIAL TECHNOLOGY
2,020 as of December 27, 2019) »» 75,000 QR Merchants
Customers »» 30,000 Cash-In points
• 94.2M mobile customers (up 27% YoY) »» 400 partner billers accepting GCash payments
»» 91.5M Prepaid customers »» Financial inclusion for over 20M Mynt customers
»» 2.7M Postpaid customers • VENTURE CAPITAL
• 2.0M home broadband customers (up 25% YoY) »» Invested US$15.8M in five (5) new portfolio companies
• 38.4 Transactional Net Promoter Score (NPS) score versus and in follow-on rounds for five (5) high-performing earlier
34.5 in 2018 investments
Network and IT Infrastructure »» Raised a new US$195M venture capital fund, mostly from
• 51.0B (US$989M) Capital Expenditures (CAPEX) non-Globe investors, broadening our investment influence.
• 1,699 petabytes of mobile data traffic (78% increase YoY) Kickstart is now the largest venture capital fund in the
• New Cell Sites put up in 2019: 139% more vs FY 2018 Philippines, with more than US$250M AUM.
• Base Stations Expansion in 2019: 69% more vs FY 2018
• Over 2,500 locations with GoWiFi access nationwide More information may be found at the Financial Capital (pages 96-99),
• Invested US$60M since 2015 in privacy and cybersecurity Manufactured Capital (pages 100-109) and Intellectual Capital sections
capabilities (pages 110-119) of this report
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Globe Telecom 2019 Integrated Report
About this Report
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Third Party Assurance governments of the Philippines; the impact of legal or other proceedings;
and Disclaimer company’s expectations as to the loss of suppliers or disruption of
Globe’s Integrated Report 2019 launch and roll out dates for products, supply chains; developments in
has undergone third-party external services or technologies; expectations the company’s financial condition,
assurance conducted by DNV- regarding the operating environment earnings and distributable funds
GL. Navarro Amper & Co. is the and market conditions; growth in and other factors that the Board
independent auditor of the company’s customers and usage; and the rate takes into account when determining
financial statements. In accordance of dividend growth by the company. levels of dividends; the company’s
with the regulations issued by the Forward-looking statements are ability to satisfy working capital
Securities and Exchange Commission sometimes, but not always, identified and other requirements; changes
and the Globe Audit and Related by their use of a date in the future in statutory tax rates or profit mix;
Party Transactions Committee or such words as “will”, “anticipates”, and/or changes in tax legislation or
Charter, the audit partner principally “aims”, “could”, “may”, “should”, final resolution of open tax issues. All
handling the company’s account is “expects”, “believes”, “intends”, subsequent oral or written forward-
to be rotated every five (5) years or “plans” or “targets” (including in looking statements attributable to
sooner. The following documents can their negative form). By their nature, the company or any member thereof
be found on the Statutory Reports forward-looking statements are or any persons acting on their behalf
section of this Integrated Report: inherently predictive, speculative and are expressly qualified in their entirety
involve risk and uncertainty because by the cautionary statements above
•• External Assurance Statement they relate to events and depend on and below. Globe expressly disclaims
•• Certificates of Compliance circumstances that may or may not any liability in respect of the content
•• Board Committee Reports occur in the future. There is a number of any forward-looking statement
•• Audited Financial Statements of factors that could cause actual and also expressly disclaims any
Overview results and developments to differ obligation or undertaking to
materially from those expressed or disseminate any updates or revisions
implied by these forward-looking to any forward-looking statements
Responsibility Statement
statements. These factors include, contained herein or to reflect any
The Board collectively acknowledges
but are not limited to, the following: change in their expectations with
the contents of this report and
changes in economic or political regard thereto or any change in
believes that this report presents
conditions in markets served by events, conditions or circumstances
a fair representation of the
operations of the company; greater on which any such forward-looking
overall financial, operational and
than anticipated competitive activity; statement is based.
sustainability performance of Globe
higher than expected costs or capital
in 2019.
expenditures; slower than expected Risks and Impact of COVID-19 on
customer growth and reduced Globe’s Business Operations
Forward Looking Statements customer retention; changes in the Globe recognizes the critical risks
This report which presents annual spending patterns of new and existing that a disruption from an Emerging
results for Globe for the year ended customers; the company’s ability Infectious Disease (EID) as outlined in
December 31, 2019 contains forward- to expand its spectrum position or its Business Continuity Plan can bring
looking statements, which have not renew or obtain necessary licenses; to its operations. Workforce health
been reviewed or reported on by the the company’s ability to achieve and safety, supply chain disruption
company’s auditors, with respect to cost savings; the company’s ability and the need to provide seamless
the company’s financial condition, to execute its strategy in fiber connectivity are some of the critical
results of operations and businesses deployment, network expansion, new aspects that the company should
and certain company plans and product and service roll-outs, mobile prepare for. On March 16, 2020 the
objectives. In particular, such data, Enterprise and broadband; Philippine government declared an
forward-looking statements include changes in foreign exchange rates, as enhanced community quarantine
statements relating to: the company’s well as changes in interest rates; the covering the whole of Luzon including
future performance; future company’s ability to realize benefits the National Capital Region (NCR)
capital expenditures, acquisitions, from entering into partnerships in light of COVID-19, which was
divestitures, expenses, revenues, or joint ventures and entering declared a pandemic by the World
financial conditions, dividend policy, into service franchising and brand Health Organization on March 11,
and future prospects; business and licensing; unfavorable consequences 2020. The magnitude of its impact
management strategies relating to to the company of making and to the company’s overall business
the expansion and growth of the integrating acquisitions or disposals; operations and the whole economy
company; the effects of regulation changes to the regulatory framework will have to be assessed further.
of the company’s businesses by the in which the company operates; the
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Globe Telecom 2019 Integrated Report
Awards & Recognitions
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Globe receives the highest
honors at the Asia Corporate
Excellence & Sustainability
(ACES) Awards 2019, for its
awards in “Top Workplaces
in Asia” and “Industry
Champion” (Left) Emil dela Cruz,
Communications Expert (second
from left) Nicolette Bambao,
Employee Engagement Director,
(center) Rosemarie Maniego-
Eala, Chief Finance Officer,
(rightmost) Abelyn Evangelista,
Sustainability Manager, with
ACES judges and committee
Memberships
•• American Chamber of Commerce Management Association of the •• Philippine Chamber of
of the Philippines, Inc. (AmCham) Philippines (HIMAP) Telecommunications Operators
•• Asia-Pacific Telecommunity •• Infocomm Technology Association (PCTO)
Canadian Chamber of Commerce of the Philippines (ITAP) •• Philippine Management
of the Philippines (CanCham) •• International Association of Privacy Association of the Philippines
•• Business for Sustainable Professionals (IAPP) (PMAP)
Development (BSD), formerly •• IT and Business Process •• Philippine Disaster Resilience
Philippine Business for the Association Philippines (IBPAP) Foundation (PDRF)
Environment (PBE) •• Makati Business Club (MBC) •• Philippine Retailers Association
•• Canadian Chamber of Commerce •• Management Association of the •• Philippine Software Industry
Philippines Philippines (MAP) Association (PSIA)
•• Contact Center Association of the •• Internet and Mobile Marketing •• Semiconductor and Electronics
Philippines (CCAP) Association of the Philippines Industries in the Philippines
•• DPO in the Asia Pacific Privacy (IMMAP) Foundation, Inc. (SEIPI)
Authorities (APPA) 52 Working •• International Telecommunication •• Supply Chain Management
Group Union (ITU) Association of the Philippines
•• DPO in the Cross-Border Privacy •• National Disaster Risk Reduction (SCMAP)
Rules (CBPR) Working Group Management Council (NDRRMC) •• Telecommunications and
•• Employee Confederation of the •• Philippine Association of National Broadcast Attorneys of the
Philippines (ECOP) Advertisers (PANA) Philippines, Inc. (TELEBAP)
•• European Society for Opinion and •• Philippine Cable Television •• United Nations Global Compact
Marketing Research (ESOMAR) Association (PCTA) (UNGC)
•• Financial Executives of the •• Philippine Chamber of Commerce •• Venture Capital and Private Equity
Philippines (FINEX) and Industry (PCCI) Association of the Philippines
•• GSM Association (GSMA) •• Pollution Control Association of (VCAP)
•• Healthcare Information the Philippines, Inc. (PCAPI)
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Globe Telecom 2019 Integrated Report
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Leadership
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Globe Telecom 2019 Integrated Report
Message
from the
Chairman
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JAIME AUGUSTO
ZOBEL DE AYALA
Chairman
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Globe Telecom 2019 Integrated Report
Message from
the Chairman
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proof Globe’s distribution network, on building the resilience of our value service delivery. With the substantial
bringing the company a step closer chain to extreme weather events strengthening of our infrastructure
to its vision of a digitally enabled and ensuring protection of the Globe capabilities, coupled with our brand
Philippines. Additionally, our GCash network in times of disasters. While value composition, Globe has been
partnership with CIMB Philippines focusing on climate adaptation, our able to fortify its market leadership
reached a milestone of 1 million strategy also contributes towards position.
GSave accounts opened after only climate change mitigation through
8 months from launch. Moreover, fostering an organizational culture of I look forward to walking alongside
together with our operators, we resource conservation and actively all of you in our journey towards
entered into a consortium with taking part in reforestation activities. sustainable value creation for our
Syniverse for Mobile Number Globe is also committed to resource country and all our fellow Filipinos.
Portability. usage optimization and waste
minimization with a focus on effective
COMMITMENT TO UN SUSTAINABLE e-waste management.
DEVELOPMENT GOALS
The robust performance we
We became a signatory to the United witnessed this year serves as
Nations Global Compact, committing a testament of our integrated
to implement universal sustainability approach to value creation and our
principles and contribute to commitment to adopting a holistic
the United Nations Sustainable approach to risk management.
Development Goals. Our focus areas Globe installed a dedicated Board Jaime Augusto Zobel de Ayala
in this vision include education, Risk Oversight Committee (BROC) Chairman
environmental conservation, digital in April 2019. The BROC was
inclusion and development. We established to assist the Board of
have rolled out various programs to Directors in fulfilling its oversight
realize our vision. We also expanded responsibilities. This allowed us
the reach of DTP via the National to balance risk governance and
Summit on Digital Citizenship and define risk-taking responsibility and
Responsibility (NSDCR) in partnership authority while ensuring the effective
with the Department of Education functioning of the Enterprise Risk
last September. Over 400 curriculum Management framework. This step
experts on Values Education and ICT will play a crucial role in enhancing
from DepEd were in attendance and the robustness of the company
help them become responsible online by proactively managing risks
citizens. We also encourage social and thereby ensuring continuous
innovators, using ICT through the stakeholder value generation.
regional Future Makers program.
CLOSING REMARKS
COMMITMENT TO HOLISTIC
VALUE CREATION The transformative growth and
progress we have been able
In line with Globe’s commitment to achieve in upgrading digital
to holistic value creation, we have infrastructure and capabilities has the
made considerable progress in potential to fundamentally change
our environmental stewardship the way people live in our country.
programs. This year, we rolled out Globe has always been a people
our Marine Protection Program for focused business, with our employees
Boracay and Siargao Islands aimed taking the lead to devise creative
towards biodiversity conservation. solutions to meet the emerging
In recognition of the material risks needs of customers. The timely
and opportunities climate change delivery of services with high-quality
presents, we have devised a dedicated standards has helped Globe make
climate strategy. Our strategy focuses the issue of quality a hallmark of its
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Globe Telecom 2019 Integrated Report
Message
from the
President
“In 2019, Globe became
a signatory to the
United Nations Global
Compact and we
commit to implement
universal sustainability
principles and integrate
these into the business.”
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ERNEST L. CU
President & CEO
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Globe Telecom 2019 Integrated Report
Message from
the President
The year 2019 has been a year and upload speeds, and lower “For us at Globe,
of remarkable growth, driven latency as confirmed by a third party
by innovative customer-centric network quality test provider. We the true value we
solutioning, paving the way to have also extended our partnerships create lies in the
enabling fast-tracked digital with leading providers of content,
transformation of the economy. mobile messaging, social media
impact we have on
The year in focus has been special and other popular OTT applications the lives of people
for all of us at Globe, as we launched in order to provide products and - our customers,
5G in June 2019. This strengthens services that anticipate and cater to
our service delivery of broadband shifting customer preferences. As our employees, business
via fixed wireless access technology. customers realize the potential of associates,
Having made a record investment of digitization, our service proposition
51.0 billion, we have made strong will focus on “owning our customers” suppliers, vendors
strides aligned with our vision of through superior service experience. and Filipinos
redefining customer experience,
enabling last mile connectivity and
We anticipate enhanced customer
delight, given our improved service
at large. Our
revitalizing the digital economy of delivery capabilities, coupled with employees are at
the country. We were able to deliver unique offerings encompassing the forefront of
strong financial performance, while personalized plans and attractive
making a substantial positive impact product/device bundles. helping us achieve
on our society and environment. our goals and
Our company emerged with strong
For us at Globe, the true value we
create lies in the impact we have on
vision of ensuring
performance despite market the lives of people - our customers, that we create
changes, and the domestic and global employees, business associates, value for all our
economic slowdown of the economy. suppliers, vendors and Filipinos at
We posted a service revenue of large. Our employees are at the stakeholders.
149.0 billion, 12% higher compared forefront of helping us achieve our They share our
to 2018. This growth was primarily goals and vision of ensuring that we
fueled by the gains from data services create value for all our stakeholders.
desire to do
-spanning mobile, broadband and They share our desire to do sustainable
corporate data. Total data revenues
at the end of 2019 accounted for 71%
sustainable practice and are key to
furthering our sustainability agenda.
practice, and are
of total service revenues, evidencing We make it known to our employees key to furthering
more Filipinos embracing a digitally that the ideas and innovation they our sustainability
enabled lifestyle. bring to the company are central
to the success we achieve year on agenda. We make
It is a matter of immense delight that year. In recognition of our employee- it known to our
today, we are the service provider of
choice for over 96 million customers
centric organizational culture, we
have achieved 91% Sustainable
employees that
nationwide. This positions us as Engagement Index Score in 2018 the ideas and
an important player in connecting (net of retention score) and 88% on innovation they
minds and inspiring ideas across Organizational Health Index Score
the Philippines through digitization. in 2018. bring to the
With an increasing customer base company are central
and emerging customer needs,
we made substantial investments
Globe aspires to be an industry leader
with purpose, helping customers
to the success
towards building our infrastructural discover new ways to enjoy life. As we achieve year
prowess. As of December 2019, a company driven by passion and on year.”
we put up 139% more sites and purpose, we are proud to share the
28% more 3G and 4G base stations result of our Purpose Survey with 3
compared to 2018. These investments Purpose Index Indicators as follows:
have translated to more customers (1.) Role and Work contribution
enjoying higher data speeds, to Globe Purpose: 91 in 2019 vs
specifically improved LTE download 87 in 2018; (2.) Personal Purpose
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Fueling the power of connectedness
contribution to Globe Purpose: 88 our expansion and capability building experience with a committed spending
in 2019 vs 87 in 2018; (3.) Employer in a manner that exerts minimum of 63.0 billion in capital expenditures
NPS is the likeliness to recommend impact on the environment. We strive in 2020. Our acquisitions and
Globe as an employer: 53.40 vs 43.38 to find innovative avenues to offset partnerships in the area of electronic
in 2018. The Purpose Survey serves the impact we could have on the payments (EC Pay) and IT (Yondu)
as a gauge to determine how our environment. We have focused on points toward how we intend to grow
employees resonate with the Globe deploying green network solutions new businesses by leveraging our
Purpose and their insights on factors and have rolled out almost 7,000 core assets. For 0917 Lifestyle, we are
that contribute to how they can solutions in 2019. Indeed, we are excited for the next year, as we expand
live out Purpose in Globe including now living in times where we are outside our Globe stores and online
culture, clarity and ways of working. experiencing the impacts of climate shop, to open our first flagship 0917
change. We have worked towards Store in Makati. Our flagship store will
Aside from our employees, our instating a robust Business Continuity be carrying our exclusive Vanguard
business partners, vendors and Management Plan to mitigate the collection - infusing Fashion and Tech
suppliers play a vital role in furthering risks arising from extreme weather in our Apparel collection, as well as key
our business in a sustainable manner. events and climate linked risks. collaborations to give life to our vision
We have formed an ecosystem We are also actively contributing for 0917 to become a Fashion and
that creates a mutually inspiring to climate change mitigation. For Tech Brand that consumers desire.
atmosphere to achieve greater instance, we have been able to save
integration of sustainability in over 650 tons of paper through I hope you find this integrated
business. customers shifting to paperless report informative, relevant and
billing. In addition, by automating engaging. This report will enable
This year, we reinforced our position and migrating to a paperless process, you to understand our shared
as a change agent, leading Filipinos we were able to save over 20 tons value creation story and approach
to a digitally-enabled lifestyle by of paper, equivalent to saving 480 toward entrenching the culture
incubating, developing, and operating trees. We also institutionalized the of sustainability in our business
new non-telecom businesses. By avoidance of Single-Use Plastics endeavors.
leveraging on Globe’s strengths and (SUP) in our office and engaged
assets, these startups are nurtured our concessionaires to look for SUP Thank you.
by Globe to maximize the value alternatives. Last September, we
they generate. We launched a new held the Plastic Exchange Program
subsidiary, 917 Ventures, that will in seven (7) barangays in Metro
hold all of Globe’s incubated startups Manila in partnership with Ayala
that are beyond telecommunication. Land and Green Antz. Over 31,000
917 Ventures will also now house pieces of single-use plastic waste
Globe Fintech Innovations (Mynt), were collected which were turned
the company that operates mobile into 24,500 ecobricks by Green Antz
wallet GCash; AdSpark Holdings, a Builders, Inc. The ecobricks will be
digital advertising firm; and Konsulta used to build community gardens and
MD, a telehealth firm. Globe’s push benches, a waste segregation facility Ernest L. Cu
for new digital businesses is seen to and a creek fence. It would also be President and CEO
play an important role in actualizing used for rehabilitation for daycare
the company’s vision, while sealing centers.
its future growth trajectory. Through
this initiative, we are confident that In 2019, Globe became a signatory to
the Philippines can catch up with the United Nations Global Compact,
the rest of the region in terms of ICT and we commit to implement
adoption, especially in areas of great universal sustainability principles and
importance like advanced medicine, integrate these into the business.
health and wellness, delivery of basic
services, and education. For the global telecom sector,
interesting and promising times lie
As natural resources play an ahead. To sustain the momentum
indispensable role in the well-being we have gained, we will ramp up
of the society, we strive to conduct infrastructure to improve network
27
Globe Telecom 2019 Integrated Report
Board of Directors
Ernest L. Cu
Executive Director, President and Chief Executive Officer
Romeo L. Bernardo
Non-Executive Director
Delfin L. Lazaro
Non-Executive Director
Samba Natarajan
Non-Executive Director
Cirilo P. Noel
Non-Executive and Independent Director
28
Fueling the power of connectedness
Jaime Augusto Zobel de Ayala
Chairman, Non-Executive Director
Skills and experience: He graduated with B.A. in Economics (Cum Laude) from
Outside the Ayala group, he is a member of various Harvard College in 1981 and obtained an MBA from the
business and socio- civic organizations in the Philippines Harvard Graduate School of Business in 1987.
and abroad, including the JP Morgan International
Council, JP Morgan Asia Pacific Council and Mitsubishi Directorship in other publicly listed companies:
Corporation International Advisory Council. He sits on Ayala Corporation; Ayala Land, Inc.; Bank of the
the board of the Singapore Management University, Philippine Islands; Integrated Micro-Electronics, Inc.;
and on various advisory boards of Harvard University, Manila Water Company, Inc.; and AC Energy Philippines,
including the Global Advisory Council, HBS Board of Inc. All of which are listed on the Philippine Stock
Dean’s Advisors, and HBS Asia-Pacific Advisory Board, Exchange.
29
Globe Telecom 2019 Integrated Report
Board of
Directors
Filipino, 59, has served as Director since October Skills and experience:
1995. He has been the President and Chief Operating Mr. Zobel holds a liberal arts degree from Harvard
Officer (COO) of Ayala Corporation. He is the Chairman College and a CIM from INSEAD, France. He is also
of AC International Finance Ltd.; Liontide Holdings, Chairman of Habitat for Humanity’s Asia Pacific
Inc.; AC Energy, Inc.; AC Energy Philippines, Inc.; Capital Campaign Steering Committee and a
Ayala Healthcare Holdings, Inc.; Automobile Central Member of Philippine-Singapore Business Council,
Enterprise, Inc.; Alabang Commercial Corporation; Tikehau International Advisory Board, INSEAD Board,
Accendo Commercial Corp.; and Hero Foundation, Georgetown University Board, World Presidents’
Inc. He is also Co-Chairman of Ayala Foundation, Organization, and Chief Executives Organization. He is a
Inc. and Ayala Group Club, Inc. He is Vice-Chairman Member of the Board of Trustees of Caritas Manila.
of AC Industrial Technology Holdings, Inc.; ALI Eton
Property Development Corporation; Ceci Realty Inc.; Directorship in other publicly listed companies:
Fort Bonifacio Development Corporation; Bonifacio AC Energy Philippines, Inc.; Ayala Corporation; Ayala
Land Corporation; Emerging City Holdings, Inc.; Land, Inc.; Bank of the Philippine Islands; Integrated
Columbus Holdings, Inc.; Berkshires Holdings, Inc.; and Micro-Electronics, Inc.; Manila Water Company, Inc.; and
Bonifacio Art Foundation, Inc. He is a Director of LiveIt Pilipinas Shell Petroleum Corporation. All of which are
Investments, Ltd.; AG Holdings Ltd.; AC Infrastructure listed on the Philippine Stock Exchange.
Holdings Corporation; Asiacom Philippines, Inc.;
30
Fueling the power of connectedness
Lang Tao Yih, Arthur
Co-Vice Chairman, Non-Executive Director
Committee memberships: a board member of Airtel Africa, NetLink NBN Trust, the
Executive Committee Land Transport Authority of Singapore, the National
Compensation and Remuneration Committee Kidney Foundation Singapore, the Straits Times Pocket
Money Fund, Bharti Infratel Limited, and the Advisory
Singaporean, 47, has served as Director since April Board of the Lee Kong Chian School of Business,
2017. He is the CEO International of Singapore Singapore Management University.
Telecommunications Limited. His main responsibilities
are to oversee the growth of the Group’s regional Mr. Lang received the Best CFO of the Year Award, for
associates across India, Indonesia, the Philippines, listed companies with market capitalization of S$1
Thailand and 14 countries in Africa, strengthen its billion and above, at the Singapore Corporate Awards
relationship with overseas partners, and drive regional in 2015.
initiatives, such as the mobile financial services, video
gaming businesses and Esports, for scale and synergies. Mr. Lang has a Master of Business Administration from
the Harvard Business School and a BA in Economics
Skills and experience: (magna cum laude) from Harvard University.
He was formerly the Group CFO of CapitaLand Limited,
one of Asia’s largest real estate companies. Prior to Directorship in other publicly listed companies:
joining CapitaLand, he was at Morgan Stanley having Bharti Infratel Limited that is listed on the National
been the co-head of the Southeast Asia investment Stock Exchange of India Ltd.; NetLink NBN Trust that
banking division and the Chief Operating Officer for the is listed on the Singapore Stock Exchange; and Airtel
Asia Pacific investment banking division. Mr. Lang is also Africa that is listed on the London Stock Exchange.
31
Globe Telecom 2019 Integrated Report
Board of
Directors
Ernest Cu
Executive Director, President and Chief Executive Officer
Committee memberships:
Executive Committee
Skills and experience:
Filipino, 59, has served as Director since April 2009. He Prior to Globe, he was President and CEO of SPi
is the President and Chief Executive Officer (CEO) of Technologies from 1997 to 2008. At the cusp of the
Globe Telecom, Inc. He joined Globe in October 2008 new millennium, he spurred the beginning of the BPO
as Deputy CEO, and was officially appointed President business model for the Philippines, earning him the
and CEO on 2 April 2009. Since then, Mr. Cu has been recognition as one of the founding fathers of BPO in the
passionately driving a sweeping transformation across country. Lauding his pioneering spirit, Ernst & Young
the company, including modernizing its network and named him ICT Entrepreneur of the Year in 2003. In
IT infrastructure, developing a strong collaborative 2017, he was hailed as the Philippines’ Best CEO by
and service-oriented culture, and creating product Finance Asia. A second for Cu, he first received the
innovations in its core business segments. Globe has award in 2010. Also in 2017, for the fifth straight year,
since outperformed industry growth, with the company Cu was recognized as one of the 100 most influential
breaking records across all key product groups, brands telecom leaders worldwide by London-based Global-
and market segments, catapulting Globe as the Telecoms Business Magazine Power 100. Frost &
number 1 mobile brand in the country. Sullivan Asia Pacific has also named him CEO of the
Year twice, first in 2012, and again in 2017.
Under Mr. Cu’s visionary leadership, Globe embarked on
a purpose-led transformation in 2016 to create a more Mr. Cu has a Bachelor of Science Degree in Industrial
sustainable organization. With its renewed mission, Management Engineering from De La Salle University
vision, and core values, collectively embodied in the new in Manila, and an M.B.A. from the J.L. Kellogg Graduate
Globe Purpose, the company is now setting its sights School of Management in Northwestern University.
on serving as a catalyst in driving the nation forward. In
2019, Globe became a signatory to the United Nations Mr. Cu is not a Director or an executive in any other
Global Compact, committing to implement universal publicly listed company.
sustainability business principles.
32
Fueling the power of connectedness
Romeo Bernardo
Non-Executive Director
33
Globe Telecom 2019 Integrated Report
Board of
Directors
Delfin Lazaro
Non-Executive Director
34
Fueling the power of connectedness
Samba Natarajan
Non-Executive Director
Skills and experience: Mr. Natarajan is not a Director in any other publicly listed
He worked for Citibank from 1988 to 1997 and company.
McKinsey & Company from 1999 to 2014. In his last
35
Globe Telecom 2019 Integrated Report
Board of
Directors
36
Fueling the power of connectedness
Rex Ma. Mendoza
Non-Executive and Lead Independent Director
37
Globe Telecom 2019 Integrated Report
Board of
Directors
38
Fueling the power of connectedness
Cirilo Noel
Non-Executive and Independent Director
39
Globe Telecom 2019 Integrated Report
Corporate Governance
2019 was another stellar year under the ASEAN Corporate the top publicly listed companies
for Globe Telecom’s corporate Governance Scorecard (ACGS), category. The company also received
governance (CG) standards and presented by the country’s Institute recognition for the Best Investor
initiatives. Last June 11, Globe of Corporate Directors (ICD). Relations Company in the Philippines
Telecom received recognition as Globe Telecom was the only telco from the 9th Asian Excellence Awards
a top-performing publicly listed recognized among six (6) others in of Corporate Governance Asia in July.
company (PLC) in the Philippines
Notwithstanding the CG awards the Management, the officers, and all including the principal duties of the
and recognition, Globe proactively of Globe’s employees commit to the members of the Board with emphasis
adopts policies and practices that principles and best practices of CG on the governance structure,
are beyond minimum requirements in the attainment of corporate goals composition, and diversity in the
of applicable laws and regulations, aligned with the company’s strategic Board, ensuring that duties and
and persevere to sustain good CG direction. responsibilities are performed in a
standards embedded in our corporate manner that safeguards the interests
culture and business conduct Globe’s CG practices are principally of the company and protects Globe’s
alongside providing quality products contained in the Articles of stakeholders amidst an increasingly
and services to our subscribers and Incorporation (AOI) and By-Laws, competitive environment.
customers. Globe realizes its strategic complemented by the Manual
influence in the capital market of Corporate Governance (MCG), Globe is likewise dedicated to
and, thus, continues to balance its company policies, Committee maintaining the organization’s
aggressive business environment charters, the Board’s charter, and compliance with the Securities
with upholding a culture of good the Code of Conduct and Ethics and Exchange Commission’s (SEC)
governance. (CoC). The AOI and By-Laws maintain Code of Corporate Governance, all
the basic structure of CG while listing rules of the Philippine Stock
As strong advocates of fairness, the MCG, charters, policies and Exchange (PSE) and other regulations
accountability, transparency, integrity CoC act as supplements. These issued by the SEC, among other
and sustainability in all aspects of legal documents outline the core regulatory agencies. An annual
the business, the Board of Directors, of Globe’s operational framework Certification of Compliance with the
40
Fueling the power of connectedness
company’s MCG is issued and signed continuous regulatory compliance, Globe does not discriminate by
by the Chief Compliance Officer with CG enables Globe business to operate reason of gender, age, disability,
the President and CEO. An annual aggressively while ensuring the ethnicity, nationality or political,
Certification of Compliance with the interests of the company’s customers religious, or cultural backgrounds
CoC is issued and signed by the Chief – internal and external stakeholders – on its directors or candidates for
Human Resource Officer (CHRO). are protected and addressed. directors, officers and employees.
These Certifications are also posted on Globe’s Board diversity policy remains
the company website’s CG page and BOARD OF DIRECTORS up-to-date and enforced. As a result,
included in this Report on page 166. the board members have different
Board Composition expertise, corporate qualifications
Globe also continues to align the The Board of Directors (Board) is and academic backgrounds. The
company’s policies and practices with the supreme authority in matters directors have diverse professional
the ASEAN Corporate Governance of governance and management backgrounds and experience in
Scorecard (ACGS), which adopts over the business of Globe Telecom. various industries other than the telco
international CG best practices and Within their chartered authority, industry such as law and litigation,
standards including the CG principles the directors acting as a Board international tax, tax advisory and
of the Organisation for Economic Co- have the fullest powers to regulate planning, tax advocacy, investment
operation and Development (OECD). the concerns of the company and trade laws, accounting and
The company website is maintained according to their best judgment. audit, finance and investment
to ensure investor-friendliness and 11 board members are elected by management, sales and marketing,
the convenient access of information the shareholders during Globe’s network operations, IT solutions,
for all of Globe’s shareholders and Annual Stockholders’ Meeting (ASM) customer and services management,
various stakeholders. The company and hold office for the ensuing year CG and strategic planning. The
website contains comprehensive until the next ASM. The President directors also come from various
information about Globe’s business, and Chief Executive Officer (CEO) educational backgrounds that
products and services, disclosures and is elected as the sole executive include biochemistry, business
reports, CG scorecard, surveys and director while the other members as administration, marketing and
reports, press releases and an archive non-executive directors (NEDs) who finance, and metallurgical
thereof, as well as the corporate are not involved in the day-to-day engineering, accountancy and law,
policies, charters and manuals, vision, management of business. and mathematical sciences, among
mission, core values, investor relations others.
program, sustainability and corporate Among the board members are three
social responsibility activities, (3) independent NEDs, one of whom The Globe Board has at least one
among others. Globe ensures that all is the lead independent director (ID). (1) female independent director in
information included in the company In 2019, Mr. Rex Ma. A. Mendoza the Board. The Board is composed
website are accurate, relevant and was appointed the lead ID. Mr. of directors with a wide age range,
up-to-date. Mendoza chaired the Nomination and from 40s to early 70s. None of the IDs
Governance Committee as well as serve in more than five (5) boards of
Globe’s MCG, likewise, complies the Compensation and Remuneration PLCs and have served the company
with the SEC’s Code of CG and is Committee. Globe’s IDs, as defined in in the same capacity for more than
aligned with the CG best practices the company’s MCG, are independent nine (9) years. The executive director
espoused in the SEC’s Integrated of the company, from Management does not serve any other PLC’s Board.
Annual CG Report (i-ACGR). The and major/substantial shareholders The board members also come from
Charter of the Board of Directors and are free from any business or different ethnic backgrounds and
and different Board Committee relationship that could materially are a mix of different nationalities.
Charters undergo regular review interfere in their exercise of Apart from the Philippines, Globe has
and enhancement in accordance independent judgment in carrying out a director from Singapore and the
with the company’s MCG, the ACGS their responsibilities as directors. United States of America.
and the SEC Code of CG, among
other guidelines and regulatory Board Diversity and Skills Matrix
issuances. Through keeping these As part of the company’s CG best
CG structures effectively working practices and in implementation of
and updated in place, coupled with the diversity policy in the workplace,
41
Globe Telecom 2019 Integrated Report
Corporate
Governance
Jaime
Industry Knowledge/ Lang Fernando Jose Saw Cirilo
Augusto Ernest Delfin L. Samba Romeo L. Rex Ma. A.
Tao Yih, Zobel de Teodoro K. Phaik P.
Experience Zobel de L. Cu Lazaro Natarajan Bernardo Mendoza
Arthur Ayala Limcaoco Hwa Noel
Ayala
Technology/digital
√ √ √ √ √ √ √ √ √ √ √
expertise
Industry experience –
√ √ √ √ √ √ √ √ √ √ √
Conglomerate
Understanding of
√ √ √ √ √ √ √ √ √ √ √
business environment
Telco experience √ √ √ √ √ √ √ √ √ √ √
Finance experience √ √ √ √ √ √ √ √ √ √
Marketing √ √ √
Business management,
strategy and √ √ √ √ √ √ √ √ √ √ √
administration
International expertise √ √ √ √ √ √ √
Economics √ √ √
Engineering √ √ √
Financial investments
√ √ √ √ √ √
and investment banking
Liberal Arts √
Biochemistry √
Sustainability and
√ √ √ √ √ √ √ √ √ √ √
Corporate Governance
Board Diversity
Racial diversity √ √ √
Gender diversity √
* For IDs, tenure as ID is reckoned from 2012 in compliance with SEC Memorandum Circular No. 9, Series of 2011
42
Fueling the power of connectedness
Key roles and responsibilities and CoC. The Board also encourages Secretary, supported by the Assistant
The Globe Board of Directors is the environmental concern, sustainability Corporate Secretary, presents all
highest governance body in the and social responsibility among nominations to the Committee
organization. The Board establishes Globe employees and stakeholders. together with profiles of each
the company’s vision, mission, It motivates the company to nominee that include, among
and strategic direction, as well as participate in domestic and regional others, their qualifications, expertise
monitors the implementation of the CG forums, conferences, fellowships beneficial to the business, academic
corporate strategy and the overall and initiatives. It is instrumental in and professional backgrounds and
corporate performance of the encouraging sustainable development notable corporate exposures relevant
company to ensure transparency, and empowering the organization for to Globe’s business.
accountability, integrity and fairness, responsible business operations and
and to protect the long-term interests working alongside local government Prior to the election of directors
of all stakeholders. The Board, and other institutional partners at the ASM, the Nomination and
through the Board Risk Oversight to contribute to solving complex Governance Committee, chaired
Committee (BROC) with support from global challenges that may affect the by an ID, reviews the qualifications
the various committees, also oversees company. The Board sets the tone of each nominee. In addition to the
and conducts a review of the overall and makes a stand against corrupt qualifications and disqualifications
risk management (RM) systems, practices reflected through Globe’s stated in the Board and Nomination
and material controls, covering anti-corruption policy and program Policy, the Committee also considers
operational, financial and compliance espoused in the Globe CoC coupled other factors in the evaluation of
areas, and overall RM-related systems. with Globe’s whistleblower policy and nominee directors for election such
Finally, the Board approves corporate channels. as record of integrity and good
operation and capital budgets, major repute and ability to promote smooth
acquisition and disposal of assets, The Board, in its decision-making interaction among Board members,
major investments, and changes in function, is also encouraged to decide among others that are in accordance
authority and approval limits. An with integrity, accountability and on with good CG principles and
annual review of the Globe mission, behalf of the good interest of the standards as well as the Nomination
vision, and values, together with the organization and all its stakeholders. and Governance Committee
company’s business strategies, is Among relevant considerations Charter. As necessary, Globe uses
conducted to stay relevant to the when carrying out its duties, the professional search firms or other
growing needs of the business and Board is aware of its duty as the external sources of candidates (such
stakeholders. The Board performed governing body of a public utility as director databases set-up by
this exercise again in 2019. rendering public service. Meanwhile, director or shareholder bodies) when
Management is entrusted with searching for candidates to the Board
The thrust for a CG proactive business implementation and close monitoring of Directors. Furthermore, Globe’s
culture emanates from the top. The of Board-approved business board diversity policy states that no
Board, as part of its functions and strategies, and is likewise tasked to director or candidate for director
responsibilities, leads, develops and conduct the company’s business shall be discriminated upon by reason
reviews Globe’s strategic direction with the highest CG standards and of gender, age, disability, ethnicity,
and business strategies regularly. The conduct. nationality or political, religious, or
Board created various committees to cultural backgrounds.
support Board functions and serve as Nomination and election of directors
venues to discuss business strategies, The board members are highly The profiles of the nominee directors
CG responsibilities and Globe’s qualified and have the ability to are also provided in Globe’s Definitive
strategic direction, among other thoroughly examine issues and Information Statement (DIS or
business matters. These committees matters that affect Globe’s business. SEC Form 20-IS), which is annually
also serve as venues to discuss In accordance with Globe By-Laws, submitted to pertinent regulators,
matters in relation to the specific MCG and company policies, any disseminated to shareholders and
responsibilities of each committee. shareholder, including minority posted on the company website
shareholders, may submit to the at least 28 days before annual
In upholding good CG within Globe’s Nomination and Governance stockholders’ meetings (ASMs). The
corporate culture, the Board also Committee the names of the profiles of the Board are included in
adheres to its own Charter, as a nominees to the Board of Directors this report as well on pages 28-39.
supplement to Globe’s By-Laws, MCG including the IDs. The Corporate
43
Globe Telecom 2019 Integrated Report
Corporate
Governance
The full discussion of the procedures and criteria for election of the directors are included in the Globe By-Laws, MCG,
company policies, and respective Board and Committee Charters. All of which are available on the company website.
Board Committees
The Board may create committees as it deems necessary, in accordance with the company’s By-Laws, MCG, and Charter
of the Board of Directors to support it in the performance of its functions and to aid in CG responsibilities, among others.
The eleven Board members are also members of the different Board Committees created. Appointments of directors to
their respective Committees are completed at the organizational meeting held after the ASM. There are six (6) Board
Committees subject to the authority of the Board as a whole. These committees are the Executive Committee, Audit
and Related Party Transactions (RPT) Committee, Compensation and Remuneration Committee, Nomination and
Governance Committee, Finance Committee, and Board Risk Oversight Committee (BROC).
All the Committees have their own charters that are aligned with the objectives and responsibilities of each Committee.
All charters are posted on the company website.
44
Fueling the power of connectedness
Audit and Related Provides assistance to the Board of Directors in fulfilling its Chairman:
Party Transactions oversight responsibility to the shareholders relating to: Cirilo P. Noel (NED, ID)
(ARPT) (a) the integrity of the financial statements and the
disclosures; financial reporting process and principles; Members:
(b) internal controls; Saw Phaik Hwa (NED, ID)
(c) policies and processes on external/independent auditor’s Rex Ma. A. Mendoza* (NED, ID)
appointment, enhancing independence and audit quality, Romeo L. Bernardo (NED)
remuneration, and assessment of performance of the
external auditors;
(d) adequacy and effectiveness of the internal audit
function;
(e) compliance with legal, regulatory, and corporate
governance requirements;
(f) assessment, review, approval and disclosure of related
party transactions according to Globe Telecom’s RPT
policy.
Nomination and Provides assistance to the Board of Directors in relation to: Chairman:
Governance (a) installing and maintaining a process to ensure that all Rex Ma. A. Mendoza* (NED, ID)
directors to be nominated for election at the next Annual
Regular Stockholders' Meeting have the qualifications Members:
and none of the disqualifications for directors stated in Saw Phaik Hwa (NED, ID)
the company's By-Laws, MCG and in relevant laws, rules Cirilo P. Noel (NED, ID)
and regulations;
(b) selecting a mix of competent directors, each of whom
can add value and create independent judgment as
to the formulation of sound corporate strategies and
policies; and
(c) previewing and evaluating the qualifications of all
persons nominated to positions in the corporation, which
require appointment by the Board.
45
Globe Telecom 2019 Integrated Report
Corporate
Governance
* Lead ID
Notes: Non-Executive Director (NED), Independent Director (ID)
In 2019, the Board of Directors had a total of seven (7) Board meetings. Attendance of each director in Board meetings
held in 2019 is enumerated below:
46
Fueling the power of connectedness
The average rate of attendance of the Board of Directors was ninety-six percent (96%) in 2019, which is more than
compliant with the SEC’s minimum attendance requirement of fifty percent (50%). Meanwhile, the average attendance
rate of the IDs was ninety-five percent (95%) for the same year.
The attendance of each Director according to their respective Committee meetings is enumerated below:
Discussions with independent views adviser to directors regarding their as directors and members of
during meetings are encouraged, responsibilities and obligations, and committees of the Board of Directors.
given due consideration and properly oversees the flow of information
documented through the minutes of prior to meetings. The Board is also Globe Telecom’s directors receive
meetings. assisted by the Chief Compliance P200,000 per diem remuneration
Officer to ensure regulatory for every Board meeting and
The NEDs also meet separately compliance and sustain engagement stockholders’ meeting attended. This
during the year without any on CG-related matters, among other rate was based on a benchmark study
executives present. The NEDs held duties and responsibilities. against industry rates as well as a
their meeting in December, which was previous study in 2010 to standardize
led by Mr. Rex Ma. A. Mendoza, the Board Remuneration the pay of Board of Directors across
lead ID. All NEDs were present at the The Board’s remuneration is set the Ayala Companies. Per diem
meeting. Among the agenda items at an optimum level to attract remuneration of directors remains
covered during the meeting were and retain high caliber directors at P100,000 for every committee
updates on talent management, and a who continuously and effectively meeting attended or such meetings
discussion on sustainability. deliver services. In accordance with other than those mentioned above.
Globe’s By-Laws, the Board may Globe’s stockholders ratified this
The Board has access to the receive, pursuant to a resolution resolution at the regular ASM in
Corporate Secretary who, among his of the stockholders, fees and other April 2014.
duties and responsibilities, acts as compensation for their services
47
Globe Telecom 2019 Integrated Report
Corporate
Governance
In accordance with the MCG and the director’s attendance at Board and place dedicated to evaluating and
Charter of the Board of Directors, no committee meetings, participation in discussing matters concerning the
director participates in discussions or boardroom discussions, and manner Board, including evaluating Globe’s
deliberations involving his/her own of voting on material issues. performance and an independent
remuneration. The directors, including review of its Management team.
the IDs, do not receive options, The self-assessment exercise, through
performance shares or bonuses other a self-assessment questionnaire, is There is likewise an annual strategy
than their per diem remuneration as given to each director to ensure the workshop held at the beginning of
directors. Meanwhile, the executive effectiveness of their governance, the year to discuss Globe’s strategic
director does not receive per diem to reflect on the performance of top direction for the entire year.
remuneration in addition to his management including the President
remuneration as part of the Globe and CEO, to highlight specific Training and Continuing
senior management in his role as the strengths, and to identify areas of Education Program
President and CEO. improvement. It also provides a venue To execute their roles well, training
for the Board members to identify on CG is given to directors prior
The following NEDs, who were priorities for the Board and the to assuming office. This is also
elected at the ASM on April 23, company for the succeeding year. The institutionalized in the MCG and
received gross per diem remuneration assessment is comprised of appraisal Charter of the Board. The Board,
for attending Board and Committee of the Board, of individual directors, of together with the key officers,
meetings in 2019: the different Board Committees, the also actively attend training
Management and of the Chairman of programs annually to keep abreast
Gross Per Diem the Board. of updates in CG standards and
Remuneration relevant discussions to support their
Director (in Php) The questionnaire covers a leadership roles in Globe that cover
thorough evaluation criteria issues and relevant market trends,
Jaime Augusto 2,200,000.00
focused on structure, efficiency, new laws and regulations that can
Zobel de Ayala
and effectiveness of the Board, affect the business, sustainability and
Lang Tao Yih, 2,300,000.00
participation and engagement of CG matters, among others.
Arthur
each Board member, contribution
Fernando Zobel 1,900,000.00 of each Board member to their The directors and key officers
de Ayala respective Committees as well as attended various CG seminars
Delfin A. Lazaro 1,700,000.00 the performance of Management conducted by SEC-accredited CG
Samba Natarajan 2,300,000.00 and the Chairman of the Board. The training providers throughout 2019.
Jose Teodoro K. 2,100,000.00 criteria also reflect the specific duties, On June 28, a couple key officers
Limcaoco responsibilities, and accountabilities participated in a CG seminar series
of each Board member assessed with an esteemed list of speakers
Romeo L. 2,300,000.00
in line with Globe By-Laws, MCG, conducted by the Philippine Institute
Bernardo
Charters and governing policies. For of Corporate Directors (ICD), a SEC-
Rex Ma. A. 2,800,000.00
transparency and an additional layer accredited CG training provider. Topics
Mendoza
of feedback mechanism for Globe discussed during the seminar included
Saw Phaik Hwa 2,500,000.00 shareholders, the questionnaire culture of innovation and technology,
Cirilo P. Noel 2,800,000.00 criteria is posted on the company and culture and corruption. On
TOTAL 22,900,000.00 website. August 9, members of the Board and
the key officers attended the first
Board Performance The self-assessment exercise is Integrated CG, RM and Sustainability
The Board values inputs and facilitated by the Chief Compliance Summit conducted by the Ayala
suggestions that feedback Officer. Every three (3) years, the Group in collaboration with the
mechanisms provide to assist them assessment shall also be supported ICD. The Summit was a whole-day
as they reflect on their performance by an external facilitator selected event of CGRM and Sustainability-
as individual directors and as a for this purpose. Aon Hewitt Pte Ltd. related plenary sessions and panel
governing body. As such, the Board is the external facilitator engaged discussions. Topics and discussions
of Directors participates in an by Globe to support the self- during the event included the launch
annual self-assessment exercise assessment exercise for the Board of of the Group’s Sustainability plans
to assess their individual and Directors covering their performance and blueprint, updates from the
collective performance. This exercise and service for the year 2019. An Securities and Exchange Commission,
also provides a means to assess a annual executive session also takes task force on climate-related
48
Fueling the power of connectedness
financial disclosures (TCFD) and November 6, which was conducted by annually. Globe programs, practices
reporting, impact investing, and Risks, Opportunities, Assessment and and activities implementing company
market trends and sustainability. Management (ROAM), another SEC- policies and standards on employee
The afternoon program featured accredited CG training provider. The training and development are also
plenary sessions specific to CG, RM seminar program included discussions included in this Report.
and Sustainability. The CG sessions on SEC and other CG-related
were on how boards tackle CG trends, regulatory updates, sustainability MANAGEMENT
priorities and challenges, and on reporting guidelines for publicly listed
accountability, stewardship, and value companies, the Revised Corporation The President and CEO is accountable
creation. Meanwhile, the RM sessions Code of the Philippines released to the Board for the development
discussed brand management and this year, ease of doing business and and recommendation of strategies,
reputation risk in times of crisis efficient government service delivery and the execution of the defined
as well as measuring its impact to act, case studies of recent corporate strategic imperatives. Through the
organizations and understanding scandals, economic statistics, Board and Executive Committee, the
alternative risk transfer solutions. Data Privacy Act compliance, and President and CEO is able to update
The Sustainability sessions included CG global and regional trends for and inform the Board of Globe’s
Morgan Stanley Capital International the year. business strategies and plans, CG
(MSCI) on sustainability and and sustainability initiatives and
investors, and a discussion on why The attendance of the Board and key requirements, among other economic
integrated reporting matters. Events, officers to the CG training programs matters relevant in the performance
collaborations and partnerships such and seminars are properly and of the business.
as this, within the conglomerate, timely disclosed through posting of
manifest the stronghold of CG in the the Certificates of attendance and After ASMs, the newly-elected
business’ governance framework. completion on the Globe website Board of Directors convenes an
It is crucial to sustain this for the and the inclusion of the same in organizational meeting to set-up its
long term such that all members of the company’s i-ACGR. All training board committees and appoint key
the Globe community, its partners programs and seminars attended by officers. After the ASM on April 23,
and stakeholders are able to benefit the directors and key officers fulfill the key officer appointments and
from the initiatives and thrust of the compliance with the SEC directive for board committee members were
CG culture. all key officers and members of the disclosed to pertinent regulators
Board of publicly listed companies accordingly.
An in-house CG seminar was also to attend a program on CG at least
attended by other directors on
Name Position
Ernest L. Cu President and Chief Executive Officer (CEO)
Alberto M. de Larrazabal Chief Commercial Officer (CCO)
Rosemarie Maniego-Eala Chief Finance Officer (CFO), Treasurer, and Chief Risk Officer (CRO)
Carmina J. Herbosa Chief Audit Executive (CAE)
Gil B. Genio Chief Technology and Information Officer (CTIO), and Chief Strategy Officer
(CSO)
Maria Aurora Sy-Manalang* Chief Information Officer (CIO)
Rebecca V. Eclipse Chief Customer Experience Officer (CCEO)
Renato M. Jiao Chief Human Resource Officer (CHRO)
Vicente Froilan M. Castelo General Counsel
Bernard P. Llamzon Executive Vice President – Channel Management
Solomon M. Hermosura Corporate Secretary
Marisalve Ciocson-Co Senior Vice President – Law and Compliance, Chief Compliance Officer, and
Assistant Corporate Secretary
*Effective January 1, 2020, Carlomagno E. Malana has been appointed as Chief Information Officer
while Ms. Sy-Manalang will assume a new role in GFI as Chief Technology and Operations Officer.
49
Globe Telecom 2019 Integrated Report
Corporate
Governance
The President and CEO is assisted by the senior management. The Chief Audit Executive (CAE) assists in discussions
with and updates to the Board through the Audit and RPT Committee while the CRO, Treasurer, and CDO reports and
updates through the Finance Committee, Audit and RPT Committee, and BROC. Meanwhile, the Chief Compliance
Officer assists the President and CEO to the Board through the Nomination and Governance Committee and Executive
Committee with regard to CG, compliance, and sustainability strategies and matters. Support from the CHRO is most
evident in the Compensation and Remuneration Committee. The General Counsel provides high-level legal consultation
and updates to the Board together with the Corporate Secretary. Other executive officers are invited during Board and
Board Committee meetings as necessary.
Ernest L. Cu
President and CEO
*Effective January 1, 2020, Carlomagno E. Malana has been appointed as Chief Information Officer
while Ms. Sy-Manalang will assume a new role in GFI as Chief Technology and Operations Officer.
50
Fueling the power of connectedness
Meanwhile, the Chief Sustainability In addition, the Office of Strategy Corporate Objectives
Officer (CSO), Ms. Maria Yolanda C. Management (OSM) reports to the Globe is not simply a telco company.
Crisanto, was appointed to monitor President and CEO and oversees Globe is an organization that creates
and report on the environmental, Globe’s strategy management and enables digital life for the
sustainability and social impacts of processes from strategy formulation Philippines, so Filipinos can access
the business operations. Ms. Crisanto to execution and performance choices, overcome challenges, and
and the Sustainability team also tracking linked to the company’s discover new ways to enjoy life. Globe
help ensure that Globe continues rewards system. Globe reviews achieves this through obsessing
to do its part in recognizing Globe’s and formulates the company’s about its customers, digitally
environmental and social impacts strategic priorities annually, which transforming businesses, building the
as well as in maintaining the then guide the formulation of the network of choice, and empowering
company’s commitment to carrying key business strategies and goals its people. Globe continues to
out responsible business operations. for the year. Using the balanced provide meaningful support to all its
The CSO also reviews economic scorecard framework, each business stakeholders and creates wonderful
aspects, environmental and social group identifies financial and non- channels to the digital lifestyle for
aspects for the annual Integrated financial objectives, and sets targets Filipinos and all stakeholders.
Report. Part of Ms. Crisanto’s duties and initiatives to achieve them as
and responsibilities as the CSO is to reflected in the groups’ terms of The strong thrust towards
communicate sustainability concerns reference (TOR). To ensure line of information and communications
and initiatives from the management sight, the group TORs are cascaded technology (ICT) infrastructure
to the Board through the President to all employees, making sure growth and network upgrades
and CEO, who empowers Globe’s that everyone understands and continued in 2019. Globe followed
advocacy for sustainability and appreciates their contribution to the through with the building and
CG. The CSO is also Globe’s Senior group goals. deployment of cellular towers in
Vice President for Corporate the country throughout the year,
Communications, who reports directly Key programs, projects, and major spending roughly 45% of its annual
to the President and CEO and is part organizational initiatives are taken income on telco infrastructure.
of senior management. up by the senior management,
composed of the President and CEO, The company continues to believe
Supporting the office of the CTIO and the heads of each major business that providing data services is
and CSO, the Data Protection Officer units and support groups. All budgets crucial towards true progress. Globe
(DPO), Atty. Irish Krystle Almeida, and major capital expenditures must will continue to push its network
performs her function in accordance be approved in accordance with expansion to meet its customers’
with Philippine Republic Act 10173 Globe’s limits of authority and by growing demand for data. The
or the Data Privacy Act of 2012 and the CEO prior to endorsement to company committed to spending
its relevant implementing rules and the Board for approval. The senior P63.0 billion in capital expenditures
circulars. As DPO, she also functions management consults with the chief in 2020, which includes spillover of
as the key liaison with the National advisors to provide sound inputs and CAPEX commitments from 2019.
Privacy Commission. Mr. Anton advice as required. They all meet at Globe is set to fulfill its commitment
Reynaldo M. Bonifacio, the Chief least once a week. to provide two million homes with at
Information Security Officer (CISO), least 10 Mbps connectivity by the end
leads the Information Security and Management is mandated to provide of 2020.
Data Privacy Division (ISDP), which complete and accurate information
is a fully-operationalized group that on Globe’s operations and affairs Remuneration of Executive Director
focuses on Globe’s data privacy and in a timely manner. Management is and Senior Management
cybersecurity matters. The Board, also required to prepare financial Globe’s remuneration philosophy,
through the ARPT Committee and statements for each preceding policy and framework is designed to
the BROC, is provided regular updates financial year in accordance with attract, retain and engage talents. It
on information security and data Philippine Financial Reporting is designed to support the business
privacy matters by the CISO to ensure Standards (PFRS). Management’s strategies and enhance value of the
that cyber risks and technology or statement of responsibility with organization. The policy specifies the
digital threats to the business and regard to the company’s financial relationship between remuneration
the customers are prepared for, statements and the fair and truthful and performance, including but not
addressed and managed effectively. preparation thereof is included in this limited to, specific financial and non-
annual report. financial metrics.
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Globe Telecom 2019 Integrated Report
Corporate
Governance
•• Encourage and nurture a strong Remuneration is also reviewed vis- experience that the employee brings
performance-oriented culture; à-vis market rates and the financial into the company. The year-on-
•• Recognize and reward talents who capability is considered for any year increases are determined by
demonstrate and create value for incentive payout. Performance individual performances, prevailing
the organization; evaluations for senior management market rates on annual salary
•• Position the company as a were made according to these increases, pay positioning, economic
preferred employer in providing considerations and in accordance indicators, and Globe Telecom’s
compelling total rewards with the Charter of the Compensation financial capability.
experience encompassing and Remuneration Committee. In
continuous learning and 2018, the HR Group participated in Benefits
development; Willis Towers Watson’s Compensation Globe benefits are consistent with
•• Competitive and market-driven Survey as part of its enterprise-wide local market practice and are relevant
compensation; remuneration benchmarking exercise. to meet the personal and family
•• Pay for performance; and, needs of employees. Included here
•• Core and innovative benefits to Current remuneration initiatives are medical benefits for in-patient
meet personal and family needs. allow for certain incentives to be and out-patient care, life insurance,
withheld or deferred in any year retirement benefits, club membership,
In order to support the rewards should an executive fail to meet and car and car-related expenses.
philosophy, the targeted reward performance requirements or be
strategies are as follows: involved in any misconduct and are Short-Term Incentives
given a disciplinary action resulting to (Performance Bonus)
•• Adopt a total rewards approach, suspension or demotion. The short-term incentive plan
using both the tangible and is Globe Telecom’s Variable Pay
intangible aspects of rewards Remuneration Components Program for non-sales employees.
to drive the Globe employment The remuneration structure of The incentive is determined by the
experience Globe is composed of four (4) main achievement of performance targets
•• Market driven to attract and retain components – Fixed Remuneration, that are set at the beginning of
top talent in the business Benefits, Short Term Incentives the performance year. It considers
•• Promote relevant reward programs (Performance Bonus) and Long Term delivery of corporate, business unit,
that will be sensitive to employee Incentives. The structure is designed and individual performance targets
lifecycles and experiences such that the variable component that are defined annually. This is
•• Practice transparency, clarity, and increases as the employee moves usually paid out to employees within
consistency in the reward delivery up in our corporate ladder. This only the second quarter of the year
applies to the employees, including following the confirmation of all
The benchmark for remuneration the executive director. Meanwhile, performance targets and individual
is developed through a rigorous non-executive directors of the Board performance.
review and evaluation by the Human receive per diem remuneration
Resources (HR) Group according approved by the shareholders. The Corporate and Business unit targets
to a comprehensive criteria that Compensation and Remuneration are financial/operational targets
consider numerous factors including Committee establishes the formal set in order to support the overall
market trends, employee roles in and transparent procedure for business goals and thereby increasing
the organization, applicable laws developing policy on executive value as a company. This incentive
and rules, and business competitors, remuneration and for fixing the plan drives employees to work
among others. Through these annual remuneration packages of employees together towards achieving common
sessions, the HR Group compares as provided in the Charter of the goals and encourages performance
Globe remuneration criteria, Committee. in the company. The award size for
packages and plans against top this incentive is differentiated by the
companies across industries such Fixed Remuneration employee’s level such that higher
as fast-moving consumer goods, The fixed remuneration is composed incentive multiple is at stake as the
telecommunications, banking and of the base salary and is reflective of employee moves up the organization.
financial services, to name a few. the value of the role in the prevailing
These reviews also consider the market and the value of the role On the other hand, sales employees
company as a whole, business units’ compared to the other roles in are part of the Sales Incentive
contribution to the organization Globe Telecom. Other factors that Program. The incentive is determined
and individual performance. come into play in the base salary are by the achievement of sales targets
individual performance, qualifications, that are likewise set at the beginning
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Fueling the power of connectedness
of the performance year. It considers ACCOUNTABILITY AND AUDIT of management, as needed, based on
delivery of business targets, typically, the meeting agenda.
on revenue, acquisition etc. Similarly, To support the Board in the discharge
the award size varies by employee of its functions, primarily on internal During these meetings:
level and increases as the employee controls, material related party •• The Committee reviews the
moves up the organization. transactions (RPTs) and other key financial statements and all
corporate governance matters, it is related disclosures and reports
Long-Term Incentive Plan the policy of Globe to constitute and prepared and presented by the
The Long-Term Incentive Plan’s maintain a competent and working CFO and released to the public
primary objective is to drive long term Audit and RPT Committee in fulfilling and/or submitted to the SEC for
performance in a highly competitive their oversight responsibility to compliance with both the internal
market by aligning management the shareholders relating to: a) the financial management handbook
interest with the shareholders’ integrity of the financial statements and pertinent accounting
interest. It also aims to motivate and disclosures, financial reporting standards, including regulatory
participants to sustain high levels principles, processes, policies and requirements. The Committee,
of contribution. Furthermore, it is systems; b) internal controls; c) after its review of the quarterly
designed to attract and retain key policies and processes on external unaudited and annual audited
executives whose contributions auditor’s appointment, enhancing consolidated financial statements
are essential to Globe’s growth independence and audit quality, of Globe Telecom, Inc. and
and profitability through a rewards remuneration, and assessment Subsidiaries, including key audit
scheme that fosters a sense of of performance of the external/ matters, endorses these to the
genuine loyalty among employees independent auditors; d) adequacy Board for approval. The Board
and belongingness within the Globe and effectiveness of the internal audit of Directors, in turn, reviews,
community thereby retaining these function; e) compliance with legal, approves and affirms the true and
talents even after payouts are given regulatory, and corporate governance fair representation of the annual
out. Lastly, the plan should propel requirements; and f) assessment, audited consolidated financial
shareholder value through superior review, approval and disclosure statements and presents the same
business performance driven by of related party transactions in the ASM.
happy and satisfied employees. according to Globe Telecom’s RPT
policy. Management however, has •• The Committee approves the work
The incentive is delivered through primary responsibility for financial plan of Globe Internal Audit (IA), as
a performance share, based plan statements and disclosures, financial well as the overall scope and work
where it awards executives with reporting process, internal controls, plan of the external auditors. The
company shares contingent upon the legal and regulatory compliance, Committee meets with the internal
achievement of specified long-term and risk management. The Audit auditors and external auditors to
goals over a specified performance and RPT Charter approved by the discuss the results of their audits,
period. Board defines clearly the roles and ensuring that management is
responsibilities of the Audit and RPT taking appropriate corrective
The plan allows for overlapping Committee. actions on internal control issues
performance periods to support and areas for improvement in a
rolling multi-year business plans and The Audit and RPT Committee is timely manner.
employee retention. It has a 3-year composed of four (4) directors,
performance period to support three (3) are independent and non- •• The Committee ensures tenders
business planning cycle. executive including the Chairman. for external audit services are
The Board appoints all members of conducted every five (5) years,
To ensure alignment of executives’ the Committee. or when the need arises as
interest to that of Globe’s, the decided by the Audit and RPT
plan includes a stock ownership The Audit and RPT Committee Committee. The Committee
requirement where the executives meets at least four (4) times during recommends the appointment,
are required to maintain shares the year and invites the President retention or discharge of the
equivalent to 50 or 75 percent to and Chief Executive Officer (CEO), external auditors, reviews audit
100 percent of their annual base Chief Finance Officer (CFO) and fees or the remuneration of the
salary, depending on the rank of the concurrently the Treasurer and Chief external auditors and endorses to
executive and specific internal HR Risk Officer (CRO), external auditors, the full Board. The Board, in turn,
policies. internal auditors, and other members submits the appointment of the
53
Globe Telecom 2019 Integrated Report
Corporate
Governance
external auditors and audit fees for Globe Telecom’s RPT Policy, and effectiveness. The CRO provides
approval of the stockholders at the including write-off of exposures, the Audit and RPT Committee with
ASM. The amount of audit fees is policies on conflicts of interest periodic reports on risk exposures
disclosed in this Integrated Report. (COI) or potential COI to the and risk management activities
Board of Directors and ensures by management, while Globe IA
•• The Committee reviews the appropriate disclosure. Likewise, provides reasonable assurance on the
external auditors’ performance the Committee oversees the effectiveness of internal controls and
and assesses the external auditor’s implementation of the system for compliance systems and processes.
qualifications, skills, resources, identifying, monitoring, measuring,
effectiveness, and independence. controlling, and reporting RPTs, The Audit and RPT Committee
To limit the possible risk of and periodically reviews RPT reports regularly to the Board of
impairment of independence, policies and procedures. All Directors on our internal controls,
the Committee also reviews and relevant RPTs were reported material RPTs, compliance, and other
approves in advance, audit vs. to, reviewed, and approved by key corporate governance matters.
non-audit services performed the Audit and RPT Committee
by the external auditors, and last February 3, 2020. All RPTs With guidance provided by the Board,
the corresponding fees paid, in are done at arm’s length and in management remains primarily
relation to the SEC regulation on accordance with the RPT policy. responsible for the development and
“permitted” vs. “not permitted” For a disclosure of the RPTs, implementation of risk management
services and the significance of please refer to the 2019 Audited strategies, policies and systems.
the fees to the external audit Consolidated Financial Statements.
firm’s total service revenues and The Audit and RPT Committee
Globe Telecom’s total consultancy The overall responsibility over reports after each meeting and
expenses, respectively. our risk management oversight provides a copy of the minutes
rests with the Board of Directors. of its meetings to the Board. To
•• The Committee assesses the Various Board committees have ensure compliance with regulatory
adequacy and effectiveness of been designated with oversight for requirements and assess the
the internal audit function by specific risk areas. The Executive appropriateness of the existing
reviewing and approving Globe Committee has oversight on Charter for enabling good corporate
IA’s scope of work, authority, corporate strategic risks, technology, governance, the Audit and RPT
independence, compliance to and operational risk management, Committee also reviews and assesses
professional standards, reporting putting in place the infrastructure the adequacy of its Charter annually,
relationships, key responsibilities, for risk management systems seeking Board approval for any
and changes in their work plan. that assess risks on an integrated amendments. The most recent
cross-functional approach; reviews Charter review and assessment was
•• The Committee reviews the and assesses the adequacy of our done on August 1 and the Audit
results of management’s annual strategic, technology, and operational and RPT Committee approved
risk assessments based on risk management processes, jointly the retention of the existing
reports provided by CRO covering with Management. The Finance Charter (approved by the Board on
information on risk exposures and Committee oversees our financial risk August 2, 2019).
risk management activities, and as management, including risks related
supported by the results of internal to capital structure, acquisitions To ensure the Audit and RPT
audit reviews. and divestments, treasury activities, Committee effectively fulfills its
tax strategy and compliance. The responsibilities according to global
•• The Committee reviews and Audit and RPT Committee provides best practices and expectations set
discusses with management, the oversight of the financial reporting out in the approved charter, Globe
internal and external auditors; and operational risks specifically on Telecom’s MCG, SEC Memo Circular
and reports annually to the Board financial statement and reporting, No. 4 (Series of 2012), ACGS and SEC
of Directors, the adequacy and internal controls, legal and Memo Circular 19 (Series of 2016)
effectiveness of the company’s regulatory compliance, corporate or Code of Corporate Governance
internal controls in all material governance, fraud risks and related for Publicly-Listed Companies, the
respects. party transactions. The BROC was Committee conducts an assessment
established and organized to assist of its performance and undergoes
•• The Committee assesses, reviews, the Board for the oversight of our training, at least annually. The results
approves and discloses all covered Enterprise Risk Management (ERM) of the assessment and any ensuing
and material RPT defined in system to ensure its functionality action plans are reported to the Board.
54
Fueling the power of connectedness
On an annual basis, our President and To perform its auditing functions Telecom’s Code of Conduct. The CAE
CEO, CFO, and CAE provide a written effectively, Globe IA maintains its is responsible for overall conformance
certification to the Audit and RPT independence from management and with the Standards. To assess
Committee confirming the reliability controlling shareholders by reporting whether the purpose, authority and
of financial statements for the year; functionally to the Board, through responsibility of internal audit, as
full compliance with financial, legal the Audit and RPT Committee and defined in the IA Charter continue
and regulatory requirements and administratively, to the President and to be adequate and effective in
reporting; attestation on Globe CEO. The Audit and RPT Committee, enabling the internal audit function,
Telecom’s sound internal controls and having appointed the CAE, also the CAE develops, maintains, and
compliance system; and confirmation concurs in his/her replacement, communicates an appropriate and
that the CAE reports functionally to reassignment, or dismissal. effective quality assurance and
the Audit and RPT Committee and improvement program (QAIP) that
administratively to the CEO allowing Working closely with the Audit and covers all aspects of internal audit
Internal Audit to independently fulfill RPT Committee, the CAE maintains reviews and activities. The Audit
its responsibilities. an effective internal audit function and RPT Committee also receives
by managing the entire operations, periodic reports on the status of
INTERNAL AUDIT and strongly supports the attainment internal audit activities, achievement
of corporate objectives through of key performance indicators, and
The establishment of an Internal coverage of the most critical QAIP. Globe IA periodically undergoes
Audit (IA) function is a fundamental processes in the conduct of risk- an independent external Quality
part of Globe Telecom’s CG practices based assurance reviews. The CAE Assurance Review (QAR) to ensure
and policies. An IA Charter, approved reports the results of audit reviews consistent conformance with the
by the Audit and RPT Committee/ and other activities in a manner that Standards. The last external QAR
Board, establishes the mission, scope helps management take appropriate was done in 2018, where Globe IA
of work, authority, independence, action on identified risks/issues obtained “Generally Conforms”, the
compliance to professional standards, within a reasonable period of time. highest rating that can be given in an
reporting relationships, and key Management remains primarily external QAR process. The Standards
responsibilities of the IA function. responsible for resolving the risks/ require an external assessment at
issues. The CAE continuously least once every five (5) years.
IA is a service, providing an improves the internal audit operating
independent and objective assurance process and standards and ensures Globe IA adopts a risk-based
and consulting function within Globe strict compliance with International audit approach in developing its
that shares our common goal of Standards for the Professional annual work plan ensuring that
creating and enhancing shareholder Practice of Internal Auditing (the risks, mapped to eTOM (enhanced
value and improving the company’s Standards) of the Institute of Internal telecommunications operations map)
operations. This is done through a Auditors (IIA) and ensures alignment based processes, with integrated risk
systematic, disciplined, and risk-based to global best practices. Among other assessments for processes across
approach in evaluating and improving responsibilities, the CAE strengthens the enterprise, are captured in the
the effectiveness of risk management, leadership and talent bench, uplifts audit universe. Globe IA’s annual
control, and governance processes. performance management and work plan is reassessed quarterly
Globe IA provides reasonable manages internal costs. or earlier to consider emerging
assurance to the Board, management risks and the changing dynamics of
and the stockholders on the Globe IA maintains, reviews, and the telecommunications business,
adequacy and effectiveness of assesses the adequacy of its Charter thereby allowing maximum and
controls encompassing Globe annually to ensure conformance with timely coverage of key/critical risk
Telecom’s governance of the Standards and SEC regulations. areas. The Audit and RPT Committee
operations, information systems, The result of the periodic assessment reviews and approves the annual work
reliability and integrity of financial and any arising revisions are reviewed plan and all deviations. The Audit
and management information, and approved by the Audit and RPT and RPT Committee also ensures
effectiveness and efficiency of Committee, with concurrence by the that audit resources are allocated
operational systems and processes, Board. The latest charter review was adequately and focused on the areas
safeguarding of resources and performed on August 1. of highest risks.
effective utilization, and compliance
with laws, rules and regulations. Globe IA governs its internal audit To promote excellence, Globe IA
activities in conformance with the provides for continuing professional
IIA’s Code of Ethics, and Globe and personal development for all
55
Globe Telecom 2019 Integrated Report
Corporate
Governance
internal auditors to equip them in independence and improve its audit Globe Telecom, Inc. and Subsidiaries
the conduct of reviews, with focus quality. The external auditors are (Globe Group) for the calendar year
on acquiring expertise on Globe directly responsible to the Audit and 2019. NA/DP has been the external
Telecom’s business processes, RPT Committee in helping ensure the auditor of Globe Group since 2015. In
network and IT systems, internal integrity of the company’s financial accordance with regulations issued
controls, new accounting and statements and reporting process. by the SEC and the Audit and RPT
auditing standards, data analytics and Committee Charter, the audit partner
regulatory updates. The audit team is The last tender bid process for the principally handling the company’s
composed of professionally certified external auditor’s annual statutory account shall be rotated every five
accountants, internal auditors, IT and audit was conducted in Q2 2019. (5) years or sooner. The most recent
information security auditors, control The Audit and RPT Charter requires rotation occurred in 2019.
self-assessors, licensed engineers, bid tenders every five (5) years or
and data experts, among others. In as the need arises as decided by the There were no disagreements with
addition, Globe IA has been actively Audit and RPT Committee. Annually, NA/DP on any matter of accounting
participating in Ayala Group and the company conducts an external principles or practices, financial
Singtel Internal Audit Networks auditors’ performance appraisal. statement disclosures, auditing scope
and learning from international From the results, the Audit and RPT and procedures.
knowledge and thought experts to Committee evaluates and proposes
benchmark and adopt leading-edge to the Board for endorsement and Fees approved in connection with
global best practices on methodology, approval of the stockholders, the the audit and audit-related services
process improvement and audit tools appointment of the external auditors. rendered by NA/DP pursuant
for digitalization to develop a team The endorsement is presented to to the regulatory and statutory
of world class, multi-skilled, internal the stockholders for approval at the requirements for the years ended 31
audit professionals. ASM. Representatives of the external December 2019 and 2018 amounts
auditors are expected to be present at to ₱20.16 million and ₱55.38 million
To keep up with the dynamic risk the ASM to have the opportunity to respectively, inclusive of 7.5% out-of-
environment and rapidly changing make a statement on the company’s pocket expenses (OPE).
regulatory and industry requirements, financial statements and results
Globe IA has also adopted of operations and be available to In addition to performing the audit of
technology-driven audit processes respond to appropriate questions Globe Group’s financial statements
such as Continuous Auditing (CA), during the meeting. and audit-related services, NA/DP was
Robotics Process Automation also contracted to provide tax and
(RPA), Simple, Digital, Agile (SDA) In line with Globe Telecom’s MCG, non-audit services in accordance with
auditing, among others, to improve the Audit and RPT Committee has established procurement policies.
overall audit efficiency and enhance an existing policy to review and
organizational value. pre-approve the audit and non- The aggregate fees billed by NA/DP
audit services rendered by Globe are shown below:
Globe IA also continuously facilitates Group’s external auditors. It does not
self-assessment activities among allow the Globe Group to engage 2019 2018
various business groups to aid the external auditors for non-audit (Amount in millions of Pesos)
management and to foster increasing services prohibited expressly by Audit and Audit-
₱20.16 ₱55.38
controls awareness and maturity at SEC regulations to be performed by Related Fees*
Globe. external auditors for its audit clients. Tax and Non-
This is to ensure that the external 30.52 6.89
Audit Fees
The Audit and RPT Committee auditors maintain the highest level of Total ₱50.68 ₱62.27
regards Internal Audit as a vital independence from the Globe Group,
support in the effective discharge of both in fact and appearance. *Excludes 2019 audit fees rendered by external
auditors other than NA/DP:
the Committee’s oversight role and
GTI HK, ₱730K (₱640K in 2018) performed by
responsibilities. In the ASM last April 23, the Deloitte HK
shareholders voted to appoint GT EU, ₱349K (₱249K in 2018) performed by
EXTERNAL AUDIT the accounting firm of Navarro Wellden and Turnbull LLP
Amper & Co./Deloitte Philippines GT SG, ₱304K (₱307K in 2018) performed by
Ardent
The Audit and RPT Committee (NA/DP), an affiliate of Deloitte
Taodharma, Inc., ₱345K (₱288K in 2018)
ensures that Globe has set Southeast Asia Ltd. (a member performed by Punongbayan and Araullo
appropriate policies and processes firm of Deloitte Touche Tohmatsu ECPAY, Inc., ₱357K performed by Punongbayan
that strengthen the external auditor’s Limited) as the external auditor of and Araullo
56
Fueling the power of connectedness
Audit Fees represent audit of Globe including, but not limited to, conflict •• Continuously assess all health and
Group’s annual financial statements of interest, whistleblowing, insider safety hazards in the workplace
and review of quarterly financial trading, RPTs, anti-corruption, and provide programs towards its
statements in connection with protection of intellectual property eliminations;
statutory and regulatory filings or rights and data privacy, and health, •• Comply with all occupational
engagements for the years ended safety and welfare of employees. safety and health news and
2019 and 2018. Globe also has existing formal policies regulations applicable to telco
concerning unethical, corrupt, and business;
Audit-related Fees. NA/DP was not other prohibited practices covering •• Train and motivate employees
engaged to perform audit-related its employees, Management and to work in a safe manner and
services for 2019. Audit-related fees members of the Board. These policies encourage business partners to
in 2018 represent quality assurance serve as guide to matters involving adopt these principles;
review of data clean-up activity work performance, dealings with •• Report occupational safety
performed by a third party for Globe. employees, dealings with customers and health performance to
and suppliers, handling of assets, stakeholders;
Tax Fees in 2019 amounting to ₱0.78 records and information, avoidance •• Conduct a regular review of
million refers to tax advisory services of conflict of interest situations management systems to ensure
for Kickstart Ventures, Inc. There were and corrupt practices, as well as that the commitments of this
no tax fees incurred for 2018. the reporting and handling of policy are being delivered and that
complaints from whistleblowers. the same are included in Globe’s
Non-Audit Fees represent These documents support and assist continual improvement.
services rendered for the Finance maintain the balance of business
Transformation and Ariba Phase 2 and governance in Globe. These are Globe programs, practices and
projects in 2019, totalling ₱29.74 also on the company website, under activities implementing policies and
million. Non-audit fees in 2018 ‘Company Policies’ (https://www. standards on employee welfare,
pertain to services rendered in globe.com.ph/about-us/corporate- health and safety are also included in
relation to the adoption of Philippine governance/company-policies.html), this report.
Financial Reporting Standards (PFRS) for the reference of investors and
16: Leases which includes trainings, other stakeholders. Rewards or Compensation Policy
impact assessment, advisory services Globe attracts, retains and
(e.g., guidance and recommendations Customer Welfare engages talents to support its
with regard to its implementation) Globe puts customers first. Globe business strategies and enhance
and agreed-upon procedures truly makes a difference through value of the organization through
on data gathering from existing superior, end-to-end customer its remuneration philosophy
lease contracts as part of the pre- experience brought to life by a and framework. Globe puts a
implementation activities. genuine culture of service and caring. premium on workplace diversity,
Service is embedded into Globe just compensation and benefits,
NA/DP has confirmed to the culture, as well as with the company’s engagement, safety and well-being,
Committee that the 2019 non- vendor partners, sustaining the human rights, and continue to
audit services rendered by them are momentum of Globe’s Circle of promote learning for every employee.
allowed to be provided to an audit Happiness where happy employees
client under existing SEC regulations create happy customers. Policy on Suppliers and Vendor Audit
and the Code of Ethics of Professional Globe follows socially responsible
Accountants in the Philippines Employee Welfare, procurement practices for vendors.
and do not conflict with their role Health and Safety The team maximizes value through
as Independent Auditors of the Globe is committed to provide the commodity management, selection
company. best protection for the health and of best-in-class suppliers, and pursuit
safety of all employees. The same is of process excellence in procurement
ETHICS AND INTEGRITY done to the communities surrounding and supply chain management.
its operations. It is Management’s Vendor partners undergo a
Globe respects the rights of all its primary objective and the employee’s comprehensive accreditation process
stakeholders, including minority individual and collective responsibility which includes assessment of
shareholders. Globe has adopted to meet this commitment. To this end, their legal, technical, and financial
its CoC, and promulgated policies Globe shall: capability from business continuity
57
Globe Telecom 2019 Integrated Report
Corporate
Governance
to conflict of interest, safety, health, standards contained therein. Globe translate principles into effective
and environmental policies. Grounded expects that the principles apply to actions and shares best practices
on the practice of fair, ethical and vendors, their parent entities and relating to social responsibility,
governance policies, opportunity is subsidiaries or affiliated entities, and globally.
equitably provided to the appropriate with other entities with whom they
suppliers through competitive do business including employees, Conflict of Interest
bidding and auctions. Proposals are suppliers, subcontractors, and other Globe is above board and, at all times,
evaluated on the basis of best-value parties. exercises discretion, prudence, and
including a consideration of their mature judgement when entering
environmental and social policies and Environmental Sustainability Policy transactions for the company. In
practices. Given equivalent proposals, Globe is committed to promote carrying out their duties with
preference for purchase award is environmental sustainability integrity and in the interest of the
given to local suppliers. by reducing the impact of the company, it is the duty of board
company’s business operations to members to withdraw themselves
Relationships with suppliers are also the environment and the company from discussions that put them in a
highly valued, with each considered a continues to achieve this together conflicted situation. This is likewise
business partner. Globe continues to with the help of its employees, reiterated in the Charter of the Board
recognize and foster strong business business partners, and clients. Globe of Directors. In the same manner,
relations with its partners through has robust systems in place to it is the obligation of every regular
the Business Partner Awards. Vendors manage its environmental impact and employee, officer and director of
also provide learning opportunity integrate these into the company’s Globe and its subsidiaries, including
through plant visits and technology corporate social responsibility consultants/project hires seconded
briefings. Conversely, Vendor Clinics management. to or engaged on a full-time basis
are initiated for selected vendors to by Globe, to declare and divulge in
help improve their performance and Community Interaction writing to the company their own
competitiveness. Through Globe Bridging involvement in any conflict of interest
Communities, the Corporate Social with the company. The CoC provides
As strong advocates of fairness, Responsibility (CSR) platform for the definition, guidelines and
accountability, transparency, and of Globe, and its subsidiaries, procedures, including the reportorial
integrity in all aspects of the business, the company aims to transform of any such circumstance, involving
Globe commits to the principles and underserved communities nationwide conflict of interest.
best practices of CG and responsibility through relevant and innovative
in the attainment of the company’s solutions that harness the power of In general, conflict of interest will be
corporate goals and strategic collaboration and inclusivity through deemed to exist where an employee
direction. information and communications has or may possibly have a financial
technology. The objective is to or personal interest divergent with
Furthermore, Globe recognizes the provide opportunities to partake or in conflict with his professional
importance of institutionalizing of the digital economy by creating obligations, or where financial or
practices in the pursuit of its goals. shared value across all employees, other personal considerations may
The Globe Supplier Code of Ethics customers, and stakeholders in compromise, or have the appearance
establishes standards of quality areas where the company operates. of compromising the employee’s
and business integrity to ensure As the business continues to grow, judgment in the administration,
that working conditions are safe, the company contributes to nation- management, decision-making, and
workers are treated with respect and building with an engaged and discharge of his official functions.
dignity that business operations are empowered workforce committed to Personal interest is not confined
environmentally responsible and do a Globe of Good. to the personal involvement of
conducted ethically. the employee himself-- it may also
The company adopts best practices arise from the employee’s family or
The Supplier Code of Ethics shall of ISO 26000 Social Responsibility close personal relationship with a
be applicable to all vendors of the and a governance framework using contractor, sub-contractor, customer,
Globe Group of companies. Globe the Social Return on Investment competitor, creditor, or any other
expects its vendors to acknowledge (SROI) model for its community entity that does business with the
and actively support the Code and relations and CSR efforts. ISO 26000 company.
to continually seek to conform to the helps businesses and organizations
58
Fueling the power of connectedness
Globe HR Group requires all the company are subject to and portal, and receives, collates and
employees to submit annually the conducts its business in accordance submits all disclosure reports to the
Related Party Disclosure Form, with ethical standards. All Globe proper Globe Disclosure Committee.
regardless if an employee has any officers and employees, and all The Portal Administrator shall send a
declaration or none. suppliers and business partners, are notice to the whistleblower that the
thus required to observe and practice report has been received and that
Anti-corruption high standards of business and it shall be processed in accordance
The employee, by virtue of his or personal ethics in the conduct of their with the Whistleblower Policy. There
her employment, is bound not to duties and responsibilities. are different Disclosure Committees
betray that trust by seeking to gain identified to keep the integrity of
any undue personal or pecuniary Globe Telecom’s whistleblower policy reports received. The whistleblower
advantage (other than the rightful provides various channels, which policy and processes relevant thereto
proceeds of employment) from his include a hotline, portal, an e-mail are available through the company
dealings with or for and in behalf of address as well as designated group, website, under ‘Company Policies’
Globe. that allow, employees, suppliers, and (https://www.globe.com.ph/about-us/
even third parties to report suspected corporate-governance/company-
Globe employees maintain the violations by employees, officers and policies.html).
highest standards of honesty and directors, and suppliers and partners
professional conduct. Seeking undue of company policies on improper Insider Trading
financial and material advantage from activities, and other violations of All directors and key officers are
transactions with Globe is a breach the company’s Code of Conduct or required, within three (3) trading days
of trust between the employee and the company’s ethical standards. upon any change in their ownership
the company. Corruption is identified In 2019, the HR also updated the of Globe securities, to submit their
under Category 4 of the Level of whistleblower policy and launched statement of changes of ownership
Offenses under Globe’s CoC, which the Globe Whistleblower Network in relation to their trades to the
are serious and grave offenses that Facility (GWeN Portal), an online Office of the Chief Compliance
are considered severe and warrant facility digitalizing whistleblower Officer for immediate submission and
Dismissal. reports, administration of reports and disclosure to pertinent regulators.
communication with whistleblowers. All Covered Persons are required to
As part of the anti-corruption Among other channels, reports or report their trades to the Office of the
programs and initiatives of the concerns may also be sent via e-mail Compliance Officer on a regular basis.
company, employees are reminded through gt_whistleblower@globe.
through internal communications com.ph or the Hotline 09178189934. Globe restricts trading of securities
channel to fill out various disclosure The company aims to provide (buying or selling) by covered persons
forms especially during national feedback within twenty-four (24) considered to have knowledge of
festivities. The form is submitted hours upon receipt of the e-mail. material non-public information,
to the employees’ respective group All reports, issues, concerns and/or during the blackout period, except
heads who will decide whether the grievances submitted to the company in accordance with this policy. The
gift shall be returned or kept by will be treated with confidentiality to company’s insider trading policy
the employee or be surrendered to ensure the safety of the whistleblower identifies the covered persons in
Human Resources Group for possible and parties involved. The identity and relation to this matter.
use during company events. source of the information are likewise
protected to the extent required Globe prohibits key officers,
Globe also conducts periodic lectures by law. employees and other covered persons
and seminars on anti-corruption with access to material non-public
initiatives through the Human These are by no means the only information, including information
Resources Group for all employees. channels by which disclosures may be on the quarterly results and other
The same is also included in the received. Persons or units within the regular reports in the course of its
on-boarding orientation program organization who receive disclosures review and preparation, from trading
attended by new employees. shall forward or relay the disclosures in company shares 5 trading days
to the GWeN Portal. Reports may also before and 2 trading days after any
Whistle-blowing be submitted via the dedicated e-mail structured report or disclosure, and
Globe is committed to compliance address or the hotline. The Complaint 2 trading days after an unstructured
with laws and regulations to which Administrator administrates the report or disclosure.
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Globe Telecom 2019 Integrated Report
Corporate
Governance
Related Party Transactions (RPTs) its shareholders’, and all other Management and Discussion Analysis
Globe discloses, reviews, and stakeholders’, and that the RPTs are and Financial Statements on a
approves RPTs, in accordance with executed with fair and transparent periodic basis that allow the creditors
the principles of transparency and terms prior to endorsement to the to continuously evaluate and monitor
fairness, to ensure that they are at Board for approval. In the review the company’s performance and
arm’s length, the terms are fair, and of RPTs, the Committee considers, credit standing.
they will inure to the best interest among others, the terms of the
of the company, its subsidiaries transaction, the aggregate value of Moreover, Globe adopted an
or affiliates and all shareholders. the transaction, purpose and timing expanded CG approach in managing
Together with the other company of the transaction, the fairness of business risks. A strong and strictly-
policies, the Policy on RPTs is the terms of the transaction, the implemented Enterprise Risk
posted on the company website and extent of Related Party’s interest in Management Policy provides a better
embedded in the MCG and CoC. the transaction, and other material understanding of the different risks
information or factors the Committee that could threaten the achievement
RPTs are disclosed in the financial may deem relevant. of the company’s vision, mission,
statements included in the company’s strategies, and goals. The policy also
annual reports, and other applicable Non-compliance with any of the highlights the vital role that each
filings in accordance with the relevant provisions of the policy on RPT shall individual plays in the organization
rules and issuances of the SEC and result in the nullification of any from senior management to staff in
other applicable regulatory bodies. agreement or contract involved in managing risks and in ensuring that
The disclosure includes, but is not the execution of the RPT. A director, the company’s business objectives
limited to, the name of the related officer, employee, or Related Party are attained. With this, it assures
party, relationship with the company is subject to the corresponding the creditors that Globe is proactive
for each RPT, the nature, and value procedures and penalties under in managing company risks and
for each RPT. Such disclosure is Globe’s CoC and relevant laws, as are committed to sustaining the
also made publicly available, for all applicable. growth of the company. As part of
shareholders and other stakeholders, the implementation, the company
through the company website The role of the Audit and RPT regularly submits quarterly financial
and such other media channels as Committee in the review and approval results to the PSE and SEC, among
applicable. of all RPTs is discussed in this Report. pertinent market regulators.
Globe updated the RPT policy in 2019. Creditors’ Rights Loan agreements with banks and
Under the RPT policy, shareholders, It is Globe’s policy to protect the other financial institutions provide for
including minority shareholders, and rights of its creditors by maintaining, certain restrictions and requirements
other stakeholders are provided with at all times, the company’s good with respect to, among others,
proper guidelines and procedures credit standing. Globe strictly maintenance of financial ratios
for right of action and remedies that observes contractual obligations, and and percentage of ownership of
are readily accessible in order to regards fair and truthful disclosure specific shareholders, incurrence of
redress corporate conduct in case of and transparency of financial records additional long-term indebtedness
any abuse on such transactions (e.g. and dealings of utmost importance or guarantees and property
email account and hotline numbers), to assure creditors of the company’s encumbrances.
as necessary. The policy contains this continued credit worthiness. Globe’s
whistle-blowing mechanism, provides periodic reports to its creditors, Board Diversity Policy
for the creation of a dedicated such as the latest certified Financial In addition to the qualifications,
committee for the review of material Statements, Certificate of No Default, disqualifications, and other criteria
RPTs, and identifies materiality and CFO Certification on compliance set forth in the company’s corporate
thresholds of such transactions with financial ratios, ensure the documents and relevant law in
including the SEC materiality creditors of the company’s financial relation to the nomination and
threshold. soundness. election of members of the Board,
Globe is committed to promote and
In accordance with the Policy on Globe provides prompt and accurate observe diverse membership among
RPTs, the ARPT Committee convenes reports of its financial standing to its directors.
to review and monitor material RPTs creditors by providing them with
to ensure the company’s best interest, financial and operating results,
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Fueling the power of connectedness
The Board of Directors, led by Privacy Policy by posting it on the The status of all Globe’s privacy
the Chairman, encourages its company website for easy reference. and cybersecurity programs and
shareholders to nominate candidates Globe also initiates internal campaigns operations are presented to and
who will diversify membership in on data privacy and cybersecurity reviewed primarily by the Board
the Board. Therefore, as company to ensure all internal stakeholders Risk Oversight Committee (BROC)
policy, no director or candidate for are fully aware of their rights and regularly. However, depending on the
directorship shall be discriminated responsibilities in relation to the use issue, reports may also be presented
upon by reason of gender, age, of the products and services that the to the Audit and RPT Committee.
disability, ethnicity, nationality digital lifestyle offers. The function Annually, the Board also receives a full
or political, religious or cultural and responsibilities of Atty. Irish report and is updated on the matters.
backgrounds. The Globe MCG Krystle Almeida as the company’s
reiterates this policy and further Data Protection Officer further Among other safeguards, Globe keeps
states that the Board must be establishes Globe’s adherence to the records as accurate as possible. If
composed of at least three (3) country’s Data Privacy Act of 2012 customer personal information is
independent directors, one of whom (Republic Act 10173). wrong, Globe provides ways to update
shall be a female, at all times. The it. Registered customers may access
company will review its Board Further, unlike most organizations, account details, correct personal
diversity goals regularly to ensure Globe has its Information Security and information and report abuse of
relevance and that the goals are Data Privacy Division (ISDP), which is privacy or intellectual property rights
reflective of good CG. a fully operationalized, separate and by contacting the Globe Customer
independent group that focuses on the Care (+632 77301000 or 211 using
Directors must also have company’s privacy and cybersecurity your mobile phone) or his/her
understanding of the matters. ISDP is headed by the Chief designated relationship manager, as
telecommunications industry or Information Security Officer (CISO), may be applicable; or by visiting any
sufficient professional experience Mr. Anton M. Bonifacio, who reports to Globe Store or the company website
and competence in other relevant the CTIO and CSO. at www.globe.com.ph. Contact details
industries, which further encourage a of the data privacy office are likewise
diversified collaboration of views and Globe respects customer and publicly available through the website
skillset within the Board. stakeholder privacy and intellectual and effective procedures are in place
property. As such, Globe secures and in case of a report or complaint on
In 2019, Globe had one female protects Customer Data with proper data privacy or intellectual property.
independent director, who was safeguards to ensure confidentiality Rest assured, Globe does its utmost
appointed as chair of the Board and privacy, prevent loss, theft, or to comply with relevant rules and
Risk Oversight Committee (BROC). use for unauthorized purposes, and laws on data privacy and intellectual
The company’s directors have comply with the requirements of the property rights.
various nationalities such as Filipino, law. Globe uses international and
American, and Singaporean with global frameworks as a reference for CG CULTURE AND ACTIVITIES
different religious and educational the control environment and utilizes
backgrounds as well. The directors’ the latest tools and technologies Globe understands that governance
age range from 40s to early 70s. The that allows the company to prevent, is beyond regulatory compliance,
profiles of the members of the Board detect, investigate, and respond to reports, and disclosures. Globe
are part of this Report and posted on the various threats in its environment. believes that CG’s relevance is most
the company website. Globe has a Security Operations evident when its standards and
Center (SOC) that monitors the practices are embedded in business
Data Privacy and Intellectual company’s technology infrastructure culture and that having governance
Property Rights and environment, operates 24x7, integrated in business operations
The Privacy Policy outlines standard and manned by a dedicated team. is a commitment to a corporate
and framework in relation to the All systems and processes in the journey that the company chooses to
collection, use, and protection of organization go through extensive invest time and effort in. Therefore,
Customer Data to provide customers assessments and reviews, targeting fairness, transparency, integrity,
and other stakeholders with a information collection, storage, sustainability and accountability
wonderful experience. The company and processing practices, to guard must be experienced not only by
notifies all customers and relevant against unauthorized access, the company’s customers and
stakeholders with any update on the alteration, disclosure, or destruction. stakeholders, but also among its
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Globe Telecom 2019 Integrated Report
Corporate
Governance
employees. As such, collaborations internet connectivity for the school effective implementation. The
of the Compliance and Governance and its students. More importantly, practice of sustainability reporting
team, under the Corporate and Legal the company conducted a training was implemented as a means to
Services Group (CLSG), with the workshop on cyber wellness for provide fair, accurate, and meaningful
Internal Audit, Investor Relations high school students as part of the assessment of its overall performance
and Corporate Communications company’s stakeholder engagement on triple bottom line (viz. Economic,
groups are sustained. These initiatives. Discussions included Environment, and Social) responsibility
collaborations result in regular topics on digital insight and digital to all stakeholders including investors.
campaigns that promote appreciation discernment. The San Jose School
for principles and fundamentals of of La Trinidad is home to over 100 As a listed company in the PSE and
CG and sustainability among Globe students. PDEx, with reportorial requirements,
employees as well as Globe’s user- rules and applicable laws as well as
friendly and up-to-date website for As more stakeholders benefit regulations of relevant regulatory
investors and stakeholders. from these strategic initiatives and agencies, Globe aims to provide
partnerships, the more valuable CG a fair, accurate, complete and
Globe also continued to reach out becomes for Globe business and meaningful assessment of the
to its internal stakeholders through its people. Through these kinds of company’s financial performance
the Attorney At Iba Pa (AttyATBP), an activities, the company is able to and prospects through the annual
initiative led by the CLSG that extends extend accountability, sustainability report, quarterly financial reports,
corporate and legal services out of and care to its employees and and analyst presentations. Globe
the daily contracts and reports into communities that surround it. practices regular disclosure of its
contributing to the practical needs of financial results. Quarterly financial
employees. This has been an annual DISCLOSURE AND results are immediately disclosed
event following its debut in October TRANSPARENCY after the approval by the Board to
2015. In 2019, AttyATBP once again PSE and SEC, among other pertinent
extended assistance outside the Management is continuously market regulators. Quarterly and
Globe Telecom workplace to serve committed to high standards year-end financial statements and
one of the company’s stakeholder of disclosure, transparency, and detailed management’s discussion
local communities. The team provided accountability. The management and analysis are filed within 45 and
educational supplies for the San established the sustainability 105 calendar days, respectively,
Jose School of La Trinidad in the policy and reviews its adequacy from the end of the financial period.
province of Benguet. The company at the highest level periodically Financial reporting disclosures are
provided a new LCD projector and and allocated resources to ensure in compliance with the PSE and SEC
62
Fueling the power of connectedness
requisites, among other pertinent are organized by the IR Department Globe maintains the company website
market regulators. Globe continues and/or Corporate Communications regularly to ensure user-friendliness,
to drive management and respective Group or in partnership with Globe accessibility, accuracy of information
departments to release the audited shareholders, broker or other partner and relevance for all stakeholders.
financial statements within 60 days institutions. Other than keeping the The company website has dedicated
from financial year-end, in compliance company website up-to-date, these pages for CG (https://www.globe.
with the ACGS standard that is earlier venues provide another means for com.ph/about-us/corporate-
than the local regulatory deadline. Globe to discuss its quarterly financial governance.html), IR (https://www.
These reports are made available to results, announcements, material globe.com.ph/about-us/investor-
the analysts after disclosure, as well disclosures and other relevant relations.html) and Sustainability
as released through various media information with its stakeholders. (https://www.globe.com.ph/about-
channels, on the company website. In the past years, Globe has been us/sustainability.html), among
further streamlining communication other relevant pages. The company
In case of mergers, acquisitions and/ efforts and opening-up several new enccourages its subscribers and
or takeovers requiring shareholders’ customer touch points, enabling stakeholders to explore the CG and
approval, the Board of the them to interact with the company IR pages of the company website to
offeree company shall appoint an at their convenience. Among learn more about Globe’s wonderful
independent party to evaluate the other enhancements, Globe uses corporate culture apart from its
fairness of the transaction price. Such e-mail, live chat, SMS, website, products and services.
shall be disclosed in the financial and social media channels (e.g.,
statement and relevant reports. Facebook, Twitter, Instagram) to Dividend Policy
The company shall also ensure provide its customers with real-time Globe declares dividends to its
compliance with applicable law, information and quicker responses common stockholders on a regular
rules, and regulations prescribed by to concerns. A conference call facility basis as may be determined by the
the SEC and the PSE. Any market- is set-up during analysts’ briefings Board of Directors. Globe returns to
sensitive information such as and meetings to enable wider its shareholders, dividends equivalent
dividend declaration is also disclosed participation among shareholders to 60 to 75 percent of the prior year’s
to the SEC and PSE and then and other stakeholders. The core net income. Dividends declared
released through various modes of company also participates in both by the company on its stocks are
communication as applicable. local and international investor payable in cash or in additional shares
conferences, which host various of stock. As a policy and as much as
In accordance with the strong investors, shareholders and other practicable, Globe observes a 30-day
advocacy for CG, Globe recognizes stakeholders. Details and information period for the payment of dividends
the importance of regular on these conferences are published to shareholders from the declaration
communication with its investors, on the company website. The IR date of such dividends.
and are committed to high standards program sustains this convenient and
of disclosure, transparency, and accessible line of communication and The Board regularly reviews the
accountability through its Investor will continue to enhance this in the company’s dividend policy, including
Relations (IR) program. The IR succeeding years. the frequency of its distribution,
Program is geared towards fulfilling taking into account the company’s
Globe’s commitment to a transparent Globe fully understands that operating results, cash flows, debt
disclosure regime and accessibility for the changes and progress in covenants, capital expenditure
all stakeholders. digital lifestyle include the fast- levels and liquidity. The payment
paced character of its customers, of dividends in the future will
Stakeholder engagement shareholders and different depend upon the earnings, cash
(Consulting stakeholders about ESG) stakeholders. Because of this, the flow, and financial condition, among
In addition to the ASM, Globe extends company website must also be an other factors.
various venues for stakeholders to effective channel of information
communicate effectively with the and a manifestation of CG advocacy.
company through the conduct of Among other information, Globe
analysts’ briefings, ad-hoc briefings, keeps its website up-to-date with
investor conferences, media corporate announcements, reports
briefings, one-on-one or small group and disclosures that are accessible to
meetings, and investor days that all stakeholders.
63
Globe Telecom 2019 Integrated Report
Corporate
Governance
February 11, 2019 22.75 3,024 February 26, 2019 March 13, 2019
May 3, 2019 22.75 3,033 May 20, 2019 May 31, 2019
August 2, 2019 22.75 3,031 August 19, 2019 August 30, 2019
November 6, 2019 22.75 3,030 November 20, 2019 December 6, 2019
Ownership Structure
Globe regularly discloses the top 100 shareholders of the company’s common and preferred equity. Disclosure is
also made of the security ownership of certain record and beneficial owners who hold more than 5% of common and
preferred shares. Finally, the shareholdings and percentage ownership of the directors and key officers are disclosed in
the Definitive Information Statement sent to the shareholders prior to the ASM.
% of % of Non-Voting % of Non-Voting
Stockholders Common Preferred Total % of Total
Common Preferred Preferred Preferred
Ayala
41,157,276 30.90% - - - - 41,157,276 13.20%
Corporation
Singtel Group 62,646,487 47.03% - - - - 62,646,487 20.10%
Asiacom
- - 158,515,016 100% - - 158,515,016 50.85%
Philippines, Inc.
Directors,
559,595 0.42% 5 0% 27,500.00 0.14% 587,100 0.19%
Officers, ESOP
Public 28,845,049 21.65% - - 19,972,500 99.86% 48,817,549 15.66%
DEALINGS IN SECURITIES
Globe has adopted strict policies and guidelines for trades involving the company’s shares made by directors and key
officers and those with access to material non-public information. In accordance with the company’s blackout period
rule under the insider trading policy, directors and key officers and covered persons with access to the quarterly
financial and operating results, in the course of its review and preparation, are prohibited from trading Globe shares
5 trading days before until 2 trading days after Globe publicly discloses the results. Notices of trading blackouts are
regularly issued to the directors and key officers concerned and to covered persons with access to such material non-
public information.
All directors and key officers are required, within 3 trading days upon change in their ownership of securities, to
submit the statement of changes of ownership in Globe securities in relation to their trades to the office of the Chief
Compliance Officer for immediate submission and disclosure to the SEC and the PSE, among other pertinent market
regulators. Once submission and disclosure to pertinent regulatory agencies are completed, the same is reflected on
the company’s relevant reports and the company website under “PSE/SEC Disclosures” of the Investor Relations page.
64
Fueling the power of connectedness
End Balance in
2019
Title of Class and 2019 Beginning Balance Company Shares
Change/s in
Nature of Ownership in Company Shares as of
Shareholdings
31 December 2019
27,780 (A)*
May 16
Common (indirect)1 4,000 1,955 (D) 73,544
February 19
1,045 (D)
February 20
330 (D)
February 21
1,670 (D)
February 22
4,000 (D)
March 14
1,000 (D)
March 15
Voting Preferred 1 - 1
(direct)
Voting Preferred 1 - 1
(indirect)
65
Globe Telecom 2019 Integrated Report
Corporate
Governance
End Balance in
2019
Title of Class and 2019 Beginning Balance Company Shares
Change/s in
Nature of Ownership in Company Shares as of
Shareholdings
31 December 2019
Fernando Zobel Common (indirect) 1 - 1
de Ayala
3,000 (A)**
December 2
Common (direct)3 18,302 10,307 (A)* 10,082
May 16
Renato M. Jiao Common (direct) 9,535 4,740 (A)* 14,275
May 16
Common (indirect) 285 - 285
66
Fueling the power of connectedness
End Balance in
2019
Title of Class and 2019 Beginning Balance Company Shares
Change/s in
Nature of Ownership in Company Shares as of
Shareholdings
31 December 2019
Bernard P. Common (direct) 7,065 3,600 (A)* 10,665
Llamzon May 16
(A) Acquired
(D) Disposed of
1
Change in the nature of shareholdings of Mr. Cu was also disclosed in January 2019.
2
Change in the nature of shareholdings of Ms. Ciocson-Co was disclosed in February 2019.
3
Change in the nature of shareholdings of Mr. Genio was disclosed in June 2019.
4
Change in the nature of and correct shareholdings of Ms. Maniego-Eala was disclosed in August 2019.
*Stocks grant plan
**Indirect ownership through immediate family in the same household
None of the members of the Board of Directors and management owns 2% or more of the outstanding capital stock
of Globe.
67
Globe Telecom 2019 Integrated Report
Risk Management
Globe believes that effective Risk Management (RM) practices are crucial to sustaining its profitability and resilience as
a company. Hence, Globe ensures that RM remains a core capability and an integral part of how decisions are made in
the organization to deliver value to shareholders. The company’s thrust is to embed RM in the daily lives of employees,
empowering them to make intelligent choices when confronted by risks and opportunities.
Globe lives out its RM philosophy via three (3) key pillars - Structure, Process and Culture.
ROLES AND RESPONSIBILITIES The BROC is mandated to assist •• Fostering a risk-aware culture that
the Board in fulfilling its oversight is pervasive throughout Globe, and
Board of Directors responsibilities in relation to ensuring transparency in reporting
The Board of Directors oversees Risk Governance in Globe. This of key risks to relevant stakeholders.
and conducts an annual review of ensures that the Board and Globe’s
Globe’s material controls, covering Management will be able to make
The BROC is led by a Chairperson
operational, financial and compliance well-informed and intelligent
who must be an independent, non-
areas and overall RM systems. The decisions based on thorough
executive director. At present, it
overall responsibility for RM oversight assessment of risks and opportunities.
is composed of four (4) directors,
rests with the Board. To enable This includes:
three (3) of which are independent,
the Board to effectively discharge non-executive directors. The
Globe’s RM function, various Board •• Ensuring that there is an effective,
Board appoints all members of the
committees have been designated to efficient and integrated risk
committee.
provide RM oversight for specific risk management process working in
areas. place.
The BROC meets on a quarterly basis
•• Enabling the identification,
or as frequently as needed. The BROC
BOARD RISK OVERSIGHT analysis, and assessment of key
also submits and presents a report
COMMITTEE risk exposures its impact to Globe’s
to the Board at least two (2) times a
strategic and business objectives,
year containing updates on all actions
A Board Risk Oversight Committee as well as the formulation of an
initiated by the committee at the
(BROC) was created in 2Q 2019 effective RM strategy.
board meeting following the BROC
to provide focus and effectively •• Cultivating a sound organizational
meetings, as well as a year-end report
consolidate the decentralized and structure with an effective
outlining the committee’s actions
overlapping risk oversight duties Enterprise Risk Management
for the year, confirmation of how
performed by various Board sub (“ERM”) framework working in
its responsibilities were discharged,
committees. The establishment of place.
assessment performed on the
the BROC will ensure an integrated •• Establishing clear definition of
effectiveness of the committee, and
and holistic oversight on RM at the risk-taking authority, ownership,
recommendations for improvement.
Board level. accountability, and proper
segregation of duties.
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Fueling the power of connectedness
The BROC has the following roles and Chief Risk Executive exercise and updates on the status
responsibilities: The President and Chief Executive of top risks, key risk mitigation
Officer (CEO) acting as the Chief activities, key risk and performance
•• Develop a formal Enterprise Risk Risk Executive (CRE) is ultimately indicators and emerging risks that
Management Framework. responsible for RM priorities, could impact the attainment of
•• Provide oversight on Globe’s including strategies, tolerances and Globe’s objectives.
activities in identifying and policies which he recommends to the
managing key enterprise-wide and Board for approval. The CRE: On a quarterly basis, the Board,
operational risks (but not limited through the BROC is appraised on
to): Strategy, Technology, Financial, Acts as the final enforcer of the RM the company’s critical risks, control
Credit, Market, Information/Cyber process; issues and key mitigation plans by the
security, Data Privacy, Business CRO. Insights on the following are
Disruption, Legal, Regulatory, •• Establishes organizational provided:
Fraud, Customer Experience, and structure, assigns authority and
other risk areas. designates management of key •• Risk management processes are
•• Through the Enterprise Risk risks to risk owners to ensure that working as intended,
Management Department, exercise the RM activities are carried out •• Risk measures and mitigation plans
oversight and guidance over effectively; are reported and continuously
Globe’s risk management and •• Reviews the continuing reviewed by risk owners for
governance structure. effectiveness and relevance of effectiveness; and
•• Review and approve the annual the RM framework, processes, •• Established risk policies and
work plan (i.e., activities and organization and tolerances, as procedures are being complied
initiatives such as risk assessments, assisted by the Chief Risk Officer; with.
risk embedding programs, etc.) •• Ensures that RM activities are
of the ERM Department, based linked to the risk owners’ Key Outside the quarterly scheduled
on the priorities and direction of Result Areas. BROC Meetings, the CRO and
the company, and ensure that it the Enterprise Risk Management
remains relevant, comprehensive, Chief Risk Officer Department provides regular updates
and effective. The Chief Finance Officer (CFO) and to the BROC Chairwoman via
•• Review disclosures regarding risks concurrent Chief Risk Officer (CRO) executive sessions, on the status of
and risk management contained in supports the CRE at the management key risks, management’s risk action
Globe’s Annual Integrated Report level. The CRO ensures that: plans and strategies and new or
and other publicly-issued reports emerging risks needing immediate
and statements as applicable. •• There is adequate supervision and attention.
•• Ensure alignment, on a regular guidance over the development,
basis, with other assurance implementation, maintenance Enterprise Risk Management
providers of Globe on critical risks and continuous improvement Department
and control identification and of RM policies, processes and The Enterprise Risk Management
assessment. documentation. Department (ERMD) supports the
•• Secure independent expert advice •• Risk Management processes and CRO in undertaking her role. Key
on RM matters where considered activities are embedded within the functions of the ERMD include:
necessary or desirable. organization’s policies, business
cycles and operational decisions. •• Facilitating Management Team’s
Management •• Responsibilities for managing annual risk assessment exercise
With guidance provided by the specific risks by Senior and reporting the results thereof
BOD and sub-committees, Globe’s Management are clear. •• Coordinating with risk owners to
management is fully responsible for •• The level of risk accepted by the gather information and updates
decision-making over the day-to-day company is appropriate. on Risk, the status of and its
affairs of Globe including the design, •• An effective control environment management/mitigation activities
development and implementation exists for the company as a whole. •• Facilitating the execution of Line
of the RM strategies, policies and •• In collaboration with the CEO/ Management’s risk assessment
systems intended to address the CRE and Senior Management, exercise
identified risks. the BROC and the Board, and •• Developing and implementing
other Stakeholders are provided risk culture building programs to
periodic information on the results drive and embed the RM discipline
of the annual risk assessment across the organization
69
Globe Telecom 2019 Integrated Report
Risk
Management
70
Fueling the power of connectedness
risks. Management believes that across the organization is essential in The ERMD partners with various risk
these studies are essential for a embedding and ensuring consistent owners to ensure that RM advocacies
strong RM process as it reinforces application of sound RM practices in are effectively cascaded to every
the lines of defense while providing every decision point by every ka- employee through culture building
relevant insights both decision Globe. and continuous learning activities
making and the management of to further complement the RM
Globe’s top enterprise-wide risks. As a testament of Globe’s risk aware advocacy.
When necessary, the company seeks and intelligent culture, Globe has
external technical support from third been assessed to have an advanced Various learning sessions, summits,
party experts to aid management and level of risk maturity (5.0 on a 1 to 5 and information drives are organized
the board in the performance of their scale) in an independent assessment throughout the year by risk owners
RM duties and responsibilities. conducted by Aon Risk Services, in and in collaboration with ERMD.
late 2018. This places Globe as one of These activities provide every
FOSTERING THE RIGHT the highest among the Ayala group ka-Globe with opportunities to
RISK CULTURE of companies, and belonging to understand the latest technologies,
the top 1% of the 1,958 companies solutions, and trends in various fields,
Globe believes that fostering a culture interviewed by Aon globally across 25 and learning about the risks, both at
of risk awareness and intelligence industries. present and in the future and how
they are effectively managed.
RISK AND SUSTAINABILITY way forward. The ERMD, together annual enterprise-wide risk refresh
with Globe’s Sustainability team, exercise. Further, the Board, through
Given the accelerated pace of change have initiated steps to integrate the the BROC has been introduced to
in the business landscape brought activities as well as the reporting Globe’s sustainability mandates,
about by business disruptions, cadence of these two (2) disciplines. framework, principles, programs and
global megatrends, and changes in In 2019, the teams’ collaboration has roadmap. Discussions on Globe’s
stakeholder mindsets, Globe supports led to the first Risk and Sustainability material sustainability topics and
the Ayala vision of integrating RM forum and integration of strategies to address them were also
and Sustainability practices as the sustainability material topics into the discussed to the BROC.
71
Globe Telecom 2019 Integrated Report
Risk
Management
72
Fueling the power of connectedness
Technology (DICT), for its Mitigation: to the need of the customers,
telecommunications business, and focusing on superior customer
by the Securities and Exchange •• Regular monitoring of rulings, experience,
Commission (SEC) for other aspects especially those that could •• Continuously invest, build, and
of the business as well as the negatively impact the business improve the Globe network
Philippine Stock Exchange (PSE) as •• Implement government-relations to deliver superior network
one of its capital market regulators, to management strategies experience to customers.
name a few. On the other hand, the •• Quarterly reporting to Board of •• Launch programs that aim to
Philippine Competition Commission Directors on the updates from maintain high value customers
(PCC) has oversight on the company’s upcoming laws and regulations and improve customer loyalty
mergers, acquisitions, and other and the current implementation for both consumer and business
similar transactions as it is tasked status of new laws and regulations segment.
to effectively level the playing field •• Enhancing compliance •• Delivery of superior
among businesses and penalize anti- effectiveness of Globe by/through: customer experience as a key
competitive agreements and abuse of »» Proactive internal compliance differentiator.
market dominance. assessments
»» Enhancing internal controls on b. Substitute and Alternative
Some of the recent key legislation processes impacted by specific Competition (External)
and regulations implemented by laws and regulations The competitiveness of the
the Government and the Regulator, »» Training the required staff and industry is further underscored
which impact Globe are listed below. management on new laws and by cheap alternatives to
Globe is closely monitoring the regulations communication such as instant
developments in relation to laws »» Programs that will establish messaging, social network services
and regulations and has taken the and enhance the culture of and Voice Over Internet Protocol
necessary steps to ensure compliance compliance (VOIP). These alternatives are
with such. also driven by the proliferation
Competition Risk (External) of affordable smartphones and
•• Common Tower Policy (DICT a. Traditional Competition (External) internet-capable mobile devices.
Ruling) - A policy promulgated by Competition remains intense in
the DICT to ensure more access to the Philippine telecommunications As customers move towards an
cost-efficient ICT infrastructure in industry amidst a mature mobile “everything on demand” lifestyle,
areas not adequately served, via market and high growth data there is an increased demand for
common towers. business, as current competitor telecom operators to be more than
•• Mobile Number Portability seeks to regain market share just service providers, opening
(RA11202) - A law that allows with aggressive offerings. In July the door for companies to offer
subscribers to switch from one 2019, a new player was given its content, media, and other services
network operator to another permit to operate as the third bundled with internet services at
without having the need to change telecommunications player of competitive prices as substitute
their mobile telephone numbers. the Philippines. Its commercial products and services as compared
•• 8-Digit Landline (NTC operations were initially targeted with traditional telecom data
Memorandum Order 10-10-2017) to start by September 2019 but services.
- Migration of 7-digit landline were eventually moved to the
telephone numbers to 8 digits, to second quarter of 2020. These As new technology and
ensure adequacy of assignable factors are seen to further innovations emerge, such as 5G,
exchange code numbers. heighten the competitive dynamics Internet of Things (IoT), Smart
amidst a mature mobile market. Cities, among others, potential
The introduction of new, modified, new substitutes and alternatives
or inconsistent application of laws or Mitigation: to existing telecom services
regulations from time to time, may may arise in the future that can
significantly affect the company’s •• Assert Globe’s market position impact the company’s growth
operations, financial condition and through offering of personalized and sustainability should it fail to
reputation. There is no assurance plans and launching of respond well.
that the regulatory environment innovative products and services
will support any increase in the that are relevant and responsive
company’s business and financial
activity.
73
Globe Telecom 2019 Integrated Report
Risk
Management
Mitigation: right work environment, office culture, There are no assurances that
and development opportunities declines in the value of the peso
•• Partner with leading providers where high potential talents can will not occur in the future or that
of content, mobile messaging, thrive and develop into the next the availability of foreign exchange
social media and other popular generation of leaders and where the will not be limited. Recurrence of
applications in order to provide entire people of the organization these conditions may adversely
products and services that remains engaged and productive, affect the company’s financial
anticipate and cater to shifting are the key risks that Globe faces in condition and results of operations.
customer preferences retaining and developing talent.
•• Enable swift response to Mitigation:
new market developments Mitigation:
and customer preferences •• Manage FOREX risks in such a
by implementing an agile •• Development of robust talent way that transaction exposures
organization and open succession development program will offset translation exposures.
technologies that identifies high potential This is done by:
•• Develop innovative services talents and ensure a healthy »» Assessing FOREX risk through
with new business and pricing supply of ready-now talents to key sensitivity analysis estimating
models that will cater to leadership positions the Profit & Loss (P&L) impact
the changing needs of the •• Implementation of various people of a change in the US$/Php
customers engagement and development rate
•• Develop a monitoring program programs and activities that »» Entering into forward
that will identify key changes boost employee morale, including contracts to hedge against
and developments in market programs that promote workplace peso appreciation in the
environment, supply chain psychological safety and fostering case of a FOREX transaction
management, technological purpose-driven mindset to all ka- exposure
advancements and customer Globe. »» Entering into short-term
preferences. •• Robust internal training programs foreign currency forwards and
for continuous learning and long-term foreign currency
Talent and Succession Risks development, including specialized swaps in the case of a FOREX
(Internal) courses that upskill the workforce translation exposure
Globe believes that its greatest asset to new technologies and disciplines »» Entering into principal-only
is its people, thus ensuring that the that would otherwise be not readily swaps to hedge FOREX
company is able to acquire and retain available on traditional learning risk exposure to principal
competent, purpose-driven, and channels. repayments on USD debts
future-thinking talents is crucial to •• Strict compliance monitoring for
the company’s continued success. accredited third-party vendor b) Interest Rate Risk (External)
Succession planning is also a critical partners on pertinent labor laws In order to fund the company’s
area as in order to build a Globe that and regulations major expenditures, Globe has
lasts, developing the next generation entered into various short and
of leaders ensures that there will Financial Risks (External/Internal) long-term debt obligations, which
always be people who can, and will, a) Foreign Exchange Risk (External) exposes the company to the risk of
lead Globe into the future. Globe is exposed to two (2) types changes in interest rates.
of Foreign Exchange (FOREX)
Increasing need for specialized risks - transaction exposures and Mitigation:
talent that is in short supply, the translation exposure. FOREX
threat of talent poaching both from transaction exposures results •• Manage interest rate risk in such
competition and other industries from inflows of US Dollar (USD) a way that levels of debt can
that aim to acquire talents with from operations during a peso achieve a balance between cost
telecom exposure, the allure of appreciation. The company’s and volatility. This is achieved
working abroad versus working locally FOREX translation exposures through:
due to better compensation and result primarily from movements •• Assessing interest rate risk
opportunities are the key risks that of the Philippine peso against through sensitivity analysis
Globe faces in securing talent. On the USD with respect to estimating the P&L impact of an
the other hand, the lack of ready-now USD-denominated financial indicated movement in interest
talents for key leadership positions, assets, liabilities, revenues and rates
as well as the inability to provide the expenditures.
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Fueling the power of connectedness
•• Setting a target level of fixed robust and anticipate and meet future Business Disruptions (External/
and variable debt mix demands. This ensures improved Internal)
•• Entering into interest rate swaps network quality, enhanced customer The quality and continued delivery
to reduce volatility related to service and experience, optimized of Globe’s services are highly
interest rate movements total cost of ownership. dependent on Globe’s network/IT
infrastructure and a well-functioning
c) Liquidity Risk (Internal) Globe considers the following factors work force, which are vulnerable to
Globe revolves in an industry as its key risks in this area: threats caused by extreme weather
where there is rapid technological disturbances, natural calamities,
advances. This puts a great •• Anticipating and selecting the right fire, acts of terrorism, intentional
pressure on the company’s mix of technologies to adopt and damage, malicious acts, pandemic
financial structure to generate implement and other similar events which could
sufficient cash flows to finance its •• Constant change and improvement negatively impact the attainment of
capital investments and refinance leading to disruption of customer revenue targets and the company’s
its outstanding debts. service and experience reputation.
•• Technology ecosystems not
Mitigation: working harmoniously with one Mitigation:
another
•• Evaluate Globe’s projected and •• Total cost of ownership and •• Enhance Globe’s incident and
actual cash flows and continuously operation are not optimized crisis management plans and
assess conditions in the financial •• The right technologies are not capabilities and incorporate
markets for opportunities to implemented at the right place at disaster risk reduction and
pursue fund raising activities the right time. response objectives in the
•• Strengthen Capital Expenditure company’s business continuity
(CAPEX) planning supported Mitigation: planning
by data-driven decision making •• Regular exercising of established
process •• Continuous environmental plans to ensure that they stay
•• Ensure stable access to the scanning for the latest relevant and effective, updating
capital market by maintaining an innovations and trends in telecom the plans as needed.
investment grade credit rating, technologies, devices, and gadgets •• Continuous partnerships with local
strong liquidity position and to determine the right information and national government, as well
balance in resource allocation and communication technologies as non-government organizations,
between CAPEX and Operational needed to both support new in responding to natural and man-
Expenditures (OPEX). products and services, and for made crisis.
future-proofing both from a
Information and Communications technology and cost to maintain Cybersecurity Risk (External/
Technology Risk (Internal) and operate perspective. Internal)
The transformation of Globe’s •• Adoption of best practice The cyber security landscape is
product portfolio from traditional frameworks and standards to rapidly evolving and users are heavily
telecom services to a data driven ensure that Network and IT relying on digitized information and
ecosystem of product and service transformation programs meet sharing vast amounts of data across
offerings is enabled by the right global standards in execution, complex and inherently vulnerable
systems and technologies. Mobile efficiency, and security. networks. As Globe continues to
data applications and the rising •• Institutionalize appropriate introduce personalized products and
popularity of smartphones, social program governance organizations services and customized transactions
media platforms as enabled by mobile with Management oversight to to its customers, it stores personal
and connected devices continue to ensure that key Network and information through product and
drive the exponential surge in data IT transformation programs service preferences and transaction
traffic. Consequently, this leads are on track, its risks managed, history. This exposes Globe to
to a clamor for fast, reliable, yet integrates harmoniously with the various forms of cyber attacks which
affordable data services. In response, overall technology ecosystem, could result in disruption of business
Globe’s network infrastructure and and does not result in unintended operations, damage to reputation,
Information Technology platforms disruptions that negatively impact legal and regulatory fines and
and systems undergo constant customer experience. customer claims.
change and improvement to remain
75
Globe Telecom 2019 Integrated Report
Risk
Management
76
Fueling the power of connectedness
•• Implement comprehensive of “free” services, to take advantage managing total cost to operate to
programs that farm customer of device offers or defraud Globe’s remain competitive. Globe banks on
feedbacks effectively and analyze customers. With the increased the partners’ industry expertise and
them to create customer centric complexity of technologies, network wealth of experience to extend the
strategies elements and IT infrastructure, new reach and expand the capabilities
•• Closely monitor customer online types of fraud that are more difficult of the company. Currently, Globe
sentiments to immediately address to detect or combat could also arise. engages third party partners across
customer issues before it surface This risk also involves irregularities in key aspects of the company’s
to mainstream online platforms transactions or activities executed by operations - from supply chain and
employees for personal gain. procurement, managed services,
Revenue Leakage Risk (Internal) billing and collection, facilities
The telecommunications industry Mitigation: management and security, call center
is inherently vulnerable to revenue services, store operations, among
leakage, with the continuing •• Institutionalize processes and build others.
innovations in Telecom Technologies, capabilities that enable the early
Network and IT systems and the detection, investigation, resolution As a result, these partners
multitude of its service/bundle/ and enforcement of sanctions and indirectly carry the Globe brand.
plan offerings accompanying such legal options, close monitoring Thus, this exposes the company
advancements. The pace at which and timely reporting of various to third party risks on business
new offers are launched in the market instances of fraudulent activities continuity, cybersecurity, legal and
and the speed of technological •• Increase organizational regulatory compliance, supply chain
innovations being adopted by Globe, awareness of fraud policies and management, and responsible
coupled with the ongoing Network its consequences through regular business operations to name a few.
and IT transformation programs communication channels of the
heightens the need to identify and company. The company promotes Mitigation:
plug revenue leakages becomes an a positive work environment
even more important capability in through clear organizational •• Implementation of strict vendor
maximizing revenues and returns. structure, written policies and fair accreditation, selection/award and
employment practices, effectively retention process. Vendors are also
Mitigation: preventing employee fraud and closely monitored for compliance
theft. with agreed-upon quality and
•• Identify and embed appropriate •• Strengthen internal controls on service level standards as a means
revenue assurance controls into processes with high vulnerability for retention, and imposition of
new products and services on fraud risks rewards and penalties.
•• Ensure solid internal controls •• Implement various programs to •• Vendor trainings and
on existing revenue-impacting equip its customers with the right indoctrination on Globe’s
processes through periodic information so that they do not fall processes, policies, quality
controls review exercises, controls victim to fraudsters standards and targets
discovery and review of critical •• Closely coordinates with law •• Conduct third party partner
processes enforcement agencies to help audits on key standards and
•• Implement Revenue Assurance protect its customers from best practices such as business
tool that would increase efficiency activities meant to defraud them continuity management,
in its operations through information security management
automated execution of controls Third party Risk (External) system, environmental compliance,
In an increasingly globalized and among others.
Fraud Risk (Internal/External) interconnected world, Globe seeks •• Identification of alternative
Globe runs the risk of falling victim to out various third party providers who suppliers for key network
fraud perpetrated by unscrupulous play significant roles in delivering components, devices, services, etc.
persons or syndicates either to avail superior products and services,
77
Globe Telecom 2019 Integrated Report
Management’s Discussion
and Analysis
YoY
31-Dec 31-Dec
Results of Operations ( Mn) Change
2019 2018
(%)
Operating Revenues 166,660 151,173 10%
Service Revenues 149,010 132,875 12%
Mobile1 111,767 99,531 12%
Home Broadband2 21,747 18,606 17%
Corporate Data3 12,828 11,762 9%
Fixed Line Voice4 2,668 2,977 -10%
Non-Service Revenues 17,650 18,297 -4%
1
Includes mobile voice, SMS, data revenues and fully mobile broadband services.
2
Includes revenues from wired and fixed wireless,
3
Includes international and domestic data services, corporate internet access, and data center solutions.
4
Includes revenues from landline and DUO services.
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Fueling the power of connectedness
year EBITDA. Bulk of the all-time net income and based on average Consolidated cash, cash equivalents
high spend went to data-related equity balances for the year just and short-term investments
requirements, comprising 79%, as ended. Using core net income, which (including investments in assets
Globe continued to invest in the excludes the effects of non-recurring available for sale and held to maturity
Philippines towards enabling Filipino expenses on net income, return on investments) stood at ₱8.3 billion as
families and businesses. This record average equity as of end-December of end-December of 2019 compared
spend allowed the company to make 2019 and 2018 were 29.1% and to ₱23.2 billion as of end-December
significant gains and fast-track its 26.8%, respectively. 2018.
network rollout during the year. As of
December 2019, Globe put up 139% Accordingly, consolidated basic Consolidated net cash flows provided
more sites versus 2018 and also earnings per common share by operating activities for the year
added more 3G and 4G base stations, were ₱162.96 and ₱135.91, while just ended was at ₱74.0 billion, up
putting up 28% more than last year. consolidated diluted earnings per by 28% year on year. Net cash used
These gains benefitted customers common share were ₱162.20 and in investing activities amounting to
as evidenced in the latest results ₱135.40 as of end-December 2019 ₱55.0 billion, was 29% higher than
of third party network quality test and 2018, respectively. last year. Meanwhile, net cash from
providers, which showed that Globe’s financing activities amounted to
LTE download and upload speeds, The balance sheet and cash flows ₱33.3 billion, significantly higher
and latency in the 4th quarter of remain strong with ample liquidity than last year’s ₱3.4 billion driven by
2019 improved nearly 16%, 6% and and gearing below bank covenants. higher repayment of borrowings, and
9% respectively, compared to the On a consolidated basis, Globe closed interest payments, coupled with the
same period last year. Moreover, these 2019 with gross debt to equity ratio lease liability payments this period
improvements were achieved despite on a consolidated basis at 1.68:1 with the adoption of PFRS 16.
a 58% growth in mobile data traffic and is well within the 3.0:1 debt to
over the same time period. To sustain equity limit dictated by Globe’s debt Consolidated total debt, declined by
this momentum, Globe is committed covenants. Meanwhile, net debt to 8% from ₱148.3 billion at the end of
to spend ₱63.0 billion CAPEX for equity ratio was at 1.58:1 as of end- 2018 to only ₱136.3 billion at the end
2020, which includes spill over of December 2019 and 1.71:1 as of end of December 2019.
CAPEX commitments from 2019. December 2018.
Lastly, Globe paid out ₱12.1 billion
Meanwhile, consolidated Return on Globe Group’s consolidated assets as in common cash dividends in 2019,
Average Equity (ROE) registered at of 31 December 2019 amounted to representing 65% of 2018 core net
28.9% as of end-December 2019, ₱304.3 billion compared to ₱299.5 income. This was in line with our
compared to 26.7% in 2018 using billion as of December 31, 2018. dividend policy of distributing 60% to
75% of prior year’s core net income.
79
Globe Telecom 2019 Integrated Report
Management’s Discussion
and Analysis
Financial
Globe is committed to efficiently managing the company’s resources and enhancing shareholder value. The company
regularly reviews its performance against its operating and financial plans and strategies, and use key performance
indicators to monitor its progress.
Some of its key performance indicators are set out below. Except for Net Income, these key performance indicators are
not measurements in accordance with Philippine Financial Reporting Standards (PFRS) and should not be considered as
an alternative to net income or any other measure of performance which are in accordance with PFRS.
ARPU measures the average monthly gross revenue generated for each
subscriber. This is computed by dividing recurring gross service revenues
AVERAGE REVENUE PER UNIT (ARPU) (gross of interconnect charges) for a business segment for the period by
the average number of the segment’s subscribers and then dividing the
quotient by the number of months in the period.
80
Fueling the power of connectedness
As presented in the unaudited condensed consolidated financial statements
NET INCOME for applicable periods, net income provides an indication of how well the
company performed after all costs of the business have been factored in.
Core net income is defined as net income after tax (NIAT) but excluding
CORE NET INCOME
foreign exchange and mark-to-market gains (losses), and non-recurring items.
Computed as non-service revenues less cost of sales, mostly on sale of handsets/SIM packs, accessories & gadgets
1
2
Operating expenses do not include any property and equipment-related gains and losses, equity share in net earnings (losses) of associates and joint
ventures and financing costs
Non-financial
Globe also uses non-financial performance indicators to measure the success of the business and emphasize
its commitment to sustainability. These include: (1) employee engagement score; (2) customer satisfaction; (3)
environmental and social impacts; among others, which are discussed in this report.
81
Globe Telecom 2019 Integrated Report
Strategy
82
Fueling the power of connectedness
83
Globe Telecom 2019 Integrated Report
Strategy
Market Outlook
The Philippine telecommunications Filipinos to avail of transport network On competition, the industry will
industry has seen a shift in recent vehicle services, food delivery potentially experience changing
years, with the advent of data and services, navigation services, and market dynamics with the entry of
the internet of things changing more using their smartphones. the third player, which is slated to
the way consumers behave and launch commercial operations by
telcos do business. Consumers are The fixed line industry is also March 2021.
increasingly favoring data for their seeing an increasing demand for
communication needs, causing data. At home, smart televisions Lastly, on the regulatory front, the
a decline in traditional voice and and gaming consoles are enabling government continues to review
SMS services. Telecommunication the consumption of bandwidth- existing laws and policies, aligning
companies have had to reposition intensive multimedia content such as them with international norms. In
themselves to remain relevant in the high definition videos and network recent years, this has led to lower
age of digitization. gaming. More customers are now interconnection rates, and new rules
taking advantage of free multi-media governing prepaid load expiry and
For a highly penetrated mobile content and paid video streaming Mobile Number Portability (MNP).
market such as the Philippines, the services which are encroaching on On MNP, the incumbents, along with
prevalence of affordable data plans cable TV service. Beyond connectivity, the new player, have since formed a
and smart devices is further driving corporate and enterprise clients are joint venture and enlisted US-based
the demand for data. Visiting social looking to service providers, including Syniverse as its Mobile Number
media and streaming video sites, and telco partners, to provide solutions to Portability Service Provider (MNPSP).
playing games are the top activities help businesses grow, generate more Full implementation of MNP is set
for Filipinos online. Other than revenue, and safeguard vital business for 2021.
entertainment, data also allows more information and corporate assets.
Strategies
Globe continues to invest in the Increase Household Penetration through programs to acquire quality
Philippines towards enabling Filipino Laying the groundwork for owning customers through content
families and businesses, reaching the home through innovative
a record CAPEX of 51.0 Billion products and services, right channel Create new and profitable
in 2019. play, and strategic network migration revenue streams
Unlocking value in digital technology,
Globe’s programs in 2019 are Develop ICT Capabilities lifestyle and entertainment through
anchored on improving customer Establishing Globe as a trusted digital complementary plays with core telco
experience and elevating digital transformation partner of large products
proposition: and small enterprise customers by
providing compelling ICT services Agile Workforce
Accelerate network roll out Building an agile organization with
Accelerating builds of wireless sites to Habituate and Monetize a deeper understanding of the
catch up on demand, increasing wired Sustaining gains in data habituation customer to allow us to be more
footprint to address serviceability by protecting the customer base and responsive to customer needs
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Fueling the power of connectedness
Strategy Description 2019 Performance 2020 Priorities
Accelerate Long-term commitment CAPEX of P51.0 billion or Committing to CAPEX of P63.0 billion
Network to provide best-in-class US$989 million
Rollout internet connectivity Bring internet services to more
As of end December 2019, Filipino households through wireless
Globe put up 139% more home broadband and constantly
sites versus 2018 improve overall network experience
Increase To be the leader of the 2.0 million home broadband Continue to forge partnerships and
Household Filipino digital lifestyle customers as of end of 2019 create innovative content-driven
Penetration by providing world- experiences for customers
class technologies 94.2 million mobile
Habituate And for entertainment, subscribers as of end of 2019 Establish Esports Center as home for
Monetize education, engagement Esports thought leadership
and rewards designed Launch of the commercial
to address customers’ pilot for At Home Air Fiber Continue deployment of Go WiFi and
needs. 5G services in 2019, offering Community WiFi where and when it
new connectivity options to matters
deliver high-speed broadband
access Transform trade / distribution
experience, beyond telco-products
38.4 Transactional Net
Promoter Score (NPS) score Transform end-to-end prepaid
versus 34.5 in 2018 experience, to enable digital life
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Globe Telecom 2019 Integrated Report
Strategy
Develop New To empower the local Enabled micro, small, medium and Empower the local economy
ICT Capabilities economy in its digital large enterprises with relevant in its digital transformation
transformation by business solutions by helping business flourish
New and helping businesses through the right technology,
Profitable flourish through the Cloud adoption and Cyber Security infrastructure, solutions and
Revenue right technology, solutions for Enterprise customers know-how
Streams infrastructure, solutions
Over 1.2 million AMAX retailers Enable small business owners
and know-how to offer more products and
GCash has 75,000 QR merchants, services to stimulate the
30,000 cash-in points and 400 e-commerce industry and the
partner billers who accept GCash digital economy, through EC Pay
payments
Agile Workforce To create a high- 8,048 regular employees (53% male Create a high-performing
performing organization and 47% female) organization through a
through a purpose- purpose-driven workforce with
driven workforce with a 91% Sustainable Engagement score a culture of empowerment,
culture of empowerment, in 2018 (net of retention score) collaboration and innovation
collaboration and
innovation 88% Organizational Health Index Pioneer the transformation
Score in 2019 of the service delivery engine
to Simple, Digital, Agile (SDA)
Purpose Survey Indicators for faster time to market,
• Role and Work contribution to efficient delivery, effective
Globe Purpose: 91 in 2019 vs 87 in cost management and better
2018 collaboration
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Fueling the power of connectedness
2020 Outlook
2020 is seen as another record year • Build a customer-centric approach • Build foundations to provide a
in terms of reinvestment, as Globe to execute more efficiently and unified, deeper and insightful view
serves over 96 million customers effectively of the customers.
nationwide and committing to
63.0 billion in CAPEX in 2020 • Further enhance brand proposition
through offers that will improve
• Protect customer base by overall experience and heighten
improving network experience customer engagement
As part of the Singtel group and a Globe holds a high standard of This is aligned with the Philippine
GSMA-led initiative, Globe has joined responsibility towards its stakeholders Government priority programs to
more than 50 mobile operators to to deliver transparency in the implement energy efficient measures
combat climate change through company’s methods of environmental to reduce power consumption.
the Carbon Disclosure Project’s stewardship, particularly through
(CDP) global disclosure system. the CDP system. With thousands of Globe also has several governance
With a vision to achieve net-zero cell sites nationwide, the company’s teams working on various initiatives
greenhouse gas (GHG) emissions by footprint spans two-thirds of the towards decarbonizing the company.
2050, in alignment with objectives country’s population. The company’s This process of inculcating climate
of the Paris Agreement 2016, the Chief Technology and Information action in Globe’s strategy has also
initiative aims to develop a mobile Officer (CTIO) and Chief Strategy initiated a shift in corporate policy as
industry climate action roadmap to Officer (CSO), Mr. Genio states that well as the implementation of energy
create a decarbonization pathway power consumption is one of the saving programs that are conducted
for the mobile sector by February most pressing issues for Globe as across sites nationwide.
2020. Efforts are underway to well as the Philippines. While the
completely incorporate the TCFD increased cell sites would contribute
recommendations in Globe’s strategy to the consequent increase in
and risk management procedures. It the footprint, it would also have
has been further elaborated in the a positive technological impact
Natural Capital section of this report. through reduced power consumption.
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Globe Telecom 2019 Integrated Report
Stakeholder Engagement
Globe’s stakeholder’s expectations, Understanding the company’s platform-based dialogue and group
needs, and aspirations are at the core stakeholders is imperative to align interactions. The company’s identified
of its purpose. The company considers the corporate strategy and enhance medium of engagement is tailored for
it important to periodically engage the relevance of communications each stakeholder group depending
with its wide range of stakeholders to published through various on stakeholder convenience. The
capture the multitude of expectations platforms. Globe employs a range response received is reviewed by
they have from the business. of engagement techniques with the management periodically and
various stakeholders spanning from incorporated into business strategy
one to one meetings, surveys, online and implementation.
Globe Telecom Annual Stockholders’ Meeting, April 23, 2019 (L-R) Ernest Cu, President and CEO; and Jaime Augusto Zobel
de Ayala, Chairman, at the Globe Telecom 2019 Annual
Stockholders’ Meeting
Stakeholder Stakeholder
Mode of Engagement Frequency Globe initiatives
Group Concerns
88
Fueling the power of connectedness
Stakeholder Stakeholder
Mode of Engagement Frequency Globe initiatives
Group Concerns
89
Globe Telecom 2019 Integrated Report
Materiality
Globe’s materiality assessment geographic presence, product •• New regulatory issues, Public
is based on the Sustainability offering, as well as important recent Policy and Business Ethics were
Accounting Standards Board developments and trends. also noted as material issues.
(SASB) framework. The Materiality The company is dedicated to
Matrix presents, industry specific Some key findings from the work together with regulatory
material ESG issues from a business company’s materiality assessment authorities to form policies
impact and/or environmental/ included1: and actively take part in policy
social impact perspective. ESG advocacy.
issues can be interpreted as the •• Customer Experience & Service •• Integrity, anti-corruption and anti-
most important management focus has been identified as the most competitive behavior have always
areas, i.e. the topics that could cause material issue amongst Globe’s been high priority issues for Globe.
the most significant business and/ stakeholders. The company’s assessment further
or environmental/social impacts •• Customer Privacy and Data reaffirmed Globe’s understanding
if not managed well. The location Security moved a few points down, and the focus that it should give to
on the matrix indicates the relative however, it remains one of the top these issues.
importance of the ESG issue, with issues, continuing to focus on this •• While Globe is not a
those located in the top right corners issue to ensure integrity and trust manufacturing company, it is
being the most material for the from Globe’s customers. expected to be mindful of the
industry. The graph also highlights •• A huge move was noted on resources that third party vendors
the 2-3 ESG issues that have been Community Relations, due to procure or dispose of. This points
identified as the most relevant to a strong call from the current towards the materiality of effective
elucidate further in this report. This administration on major changes in implementation of Globe’s values
selection considers factors specific the telecom industry. towards sustainability throughout
to Globe such as business model, the company’s supply chain.
Highly Important
SOCIAL
CAPITAL Supply Chain & Public Business Responsible Customer
Environmental Policy Ethics Business Experience
Responsibility Operations & Service
LEADERSHIP
& GOVERNANCE
Selling Practices & Community
Product Labelling Relations
VALUE TO GLOBE
Material Sourcing
HUMAN & Efficiency
CAPITAL
Customer Privacy
& Data Security
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Fueling the power of connectedness
Sustainability Reporting Frameworks Index
Page
Material Topics GRI Standards SASB TCFD <IR> SDGs
Number(s)
103-1
Customer Experience TC0301-09 Social and
103-2 138-142
& Service TC0301-10 Relationship Capital
103-3
102-44
103-1
103-2 Social and 88-89
Community Relations
103-3 Relationship Capital 147-151
413-1
413-2
103-1
Selling Practices & Product 103-2 Social and
138-142
Labelling 103-3 Relationship Capital
417-1
103-1
103-2
44-46
Responsible Business 103-3 Corporate
54-59
Operations 204-1 Governance
145-146
205
206
103-1
103-2
• Climate risks
103-3
• Climate linked
Supply Chain & 307-1 87
TC0301-01 metrics and
Environmental 204-1 Natural Capital 145-147
TC0301-08 targets
Responsibility 302-1 152-163
• Climate linked
305-1
strategy
305-2
306-2
103-1
Waste and Hazardous 103-2 • Climate linked 87
TC0301-08 Natural Capital
Materials Management 103-3 strategy 160-162
306-2
103-1
103-2
Material Sourcing and • Climate linked 87
103-3 TC0301-08 Natural Capital
Efficiency strategy 154-160
306-2
204-1
103-1
103-2 Manufactured
Public Policy 103-106
103-3 Capital
415
TC0301-02
103-1 TC0301-03
Customer Privacy & Data 103-2 TC0301-04 Social and
116-119
Security 103-3 TC0301-05 Relationship Capital
418-1 TC0301-06
TC0301-07
103-1
103-2
103-3
401-1
401-2
Employee well-being Human Capital 122-135
404-1
404-2
404-3
404-3
405-1
103-1
103-2
Corporate
Business Ethics 103-3 • Governance 57-64
Governance
102-16
102-17
103-1
103-2
Economic Impact and
103-3 Financial Capital 98-99
Financial Performance
203-1
203-2
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Globe Telecom 2019 Integrated Report
How Globe Creates Value
FINANCIAL CAPITAL
Resources and investments
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or
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Disaster Respondents
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capabilities
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UN GLOBAL COMPACT
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over 1.2 million AMAX retailers, diustributors CATALYZING CHANGE AND SYNERGIZING NETWORKS
and business partners nationwide As a purpose-led organization, Globe operates on a business model
that aims to digitally transform the lives if its stakeholders - customers,
businesses and the nation.
NATURAL CAPITAL This IIRC <IR>-based business model presents the company’s inputs
Environmental management to help and outcomes primarily around its business activities and respective
address climate emergency outputs which are also mapped against the company’s contribution
Commitment to reduce carbon footprint by towards the UN Sustainable Development Goals (SDGs) and UN Global
30% - based on the 2017 levels - by 2030 Compact Principles. To ensure harnessed opportunity for sustained
6,948 Green Network Solutions deployed growth, this also captures the company’s business activities and the
inculcation of innovative strategies, creating shared value for all.
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Fueling the power of connectedness
Our Outputs Our Outcomes
FINANCIAL CAPITAL
A record CAPEX of 51.0 billion spent in 2019
149.0B Gross Service Revenues
Total mobile subscriber base is 94.2 million
11% Shareholder Return
Total home broadband subscriber base now
stands at over 2.0 million 12.1B Dividend Payment to Common
Shareholders
93
Globe Telecom 2019 Integrated Report
Capitals
94
Fueling the power of connectedness
95
Globe Telecom 2019 Integrated Report
Financial Capital
Rosemarie Maniego-Eala
Chief Financial Officer,
Financial Risk Treasurer and Chief Risk Officer
Business Disruption Risk
Competition Risk
RISKS ADDRESSED
Digital Transformation Risk
SDGs IN FOCUS
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Fueling the power of connectedness
Understanding
Social Return on
Investment (SROI) Interlinkages and
Pilot SROI in Citizenship
Synergies for
and Corporate Social Financial Capital
Responsibility (CSR)
program
HUMAN
MANUFACTURED
FINANCIAL
Investments made in
Enterprise applications enhancing resource usage
and tools optimization
97
Globe Telecom 2019 Integrated Report
Financial
Capital
FINANCIAL PERFORMANCE were 162.96 and 135.91, while “First and foremost,
consolidated diluted earnings the company needs to
Globe Telecom Inc. closed 2019 per common share were 162.20
perform efficiently
with consolidated service revenues and 135.40 as of 31 December 2019
amounting to P149.0 billion, a solid and 31 December 2018, respectively.
and generate returns
12% higher from 2018. This growth that are not only
was fueled by an increase from data The balance sheet and cash flows competitive in the
usage across mobile, broadband and remain strong with ample liquidity short-term but also
corporate data services. and gearing below bank covenants. sustainable in the
On a consolidated basis, Globe closed long run, in order to
OPERATIONAL HIGHLIGHTS 2019 with gross debt to equity ratio
attract investors.
on a consolidated basis at 1.68:1
and is still within the 3.0:1 debt to
This means (a) pushing
Globe Group’s consolidated assets as
of 31 December 2019 amounted to equity limit dictated by Globe’s debt for automation and
P304.3 billion compared to P299.5 covenants. Meanwhile, net debt to operational efficiencies
billion as of December 31, 2018. equity ratio was at 1.58:1 as of end- to increase net cash
Consolidated cash, cash equivalents December 2019 and 1.71:1 as of end flows, (b) adhering
and short-term investments December 2018. Lastly, the company to our corporate
(including investments in assets also paid out P12.1 billion in common
governance policies,
available for sale and held to maturity cash dividends in 2019, representing
investments) was at P8.3 billion as 65% of 2018 core net income. This (3) investing in the
of 31 December 2019 compared to was in line with Globe’s dividend network to cater to
P23.2 billion as of 31 December 2018. policy of distributing 60% to 75% of the long-term demand
prior year’s core net income. of our customers, and
Consolidated net cash flows provided (4) supporting adjacent
by operating activities for FY 2019 DIRECT IMPACT AND businesses that keep
was at P74.0 billion, up by 28% last CONTRIBUTIONS TO THE
the company relevant
year. Net cash used in investing ECONOMY
in the lives of
activities amounting to P55.0 billion,
was 29% higher than last year. In 2019, Globe spent a record CAPEX customers.”
Meanwhile, net cash used in financing of P51.0 billion, about US$989
activities amounted to P33.3 billion, million, which is 18% higher than a Rosemarie Maniego-Eala
which is significantly higher than last year ago and this represented 34% Chief Financial Officer,
year’s P3.4 billion. This was driven of Globe’s gross service revenues Treasurer and Chief Risk Officer
by higher repayment of borrowings, and 67% of Globe’s full year Earnings
and interest payments, coupled with Before Interest, Taxes, Depreciation
the lease liability payments this and Amortization (EBITDA). A
period with the adoption of Philippine significant amount of the all-time
Financial Reporting Standard (PFRS) high spend went to data-related
16 on Leases. Consolidated total debt requirements, comprising 79%, as
declined by 8% from P148.3 billion as the company continued to invest
of 31 December 2018 to only P136.3 in the Philippines towards enabling
billion as of 31 December 2019. Filipino families and businesses. This
record spend allowed Globe to make
Consolidated Return on Average significant gains and fast-track its
Equity (ROE) registered at 28.9% as network rollout during the year. As
of 31 December 2019, compared to of December 2019, the company
26.7% in 2018 using annualized net put up 139% more sites versus 2018
income and based on average equity and added 69% more base stations
balances for 2019. Using annualized than last year. These gains benefited
core net income, which excludes the customers as evidenced in the latest
effects of non-recurring expenses on results of third party network quality
net income, return on average equity test providers. The results showed
as of end-December 2019 and 2018 that Globe’s LTE download speed,
were 29.1% and 26.8%, respectively. upload speed and latency in the 4th
quarter of 2019 improved nearly 16%,
Accordingly, consolidated basic 6% and 9% respectively, compared to
earnings per common share the same period last year. Moreover,
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Fueling the power of connectedness
these improvements were achieved
despite a 58% growth in mobile data
traffic over the same period.
99
Globe Telecom 2019 Integrated Report
Manufactured Capital
Building Infrastructural Value for the Next Decade “The most immediate
thing we can do is
to manage power
consumption. Power is
not just about power
Accelerate Network Rollout efficiency. If we can
have more sites, we
STRATEGIC INTENT can lower the power
for literally across
the entire network and
Responsible Business Operations bring dramatic savings
for both the company
Public Policy
and the customers. With
MATERIAL TOPIC higher site density,
devices of customers
such as mobile phones,
Climate Risk
tablets, or modems
Political and Socio-Economic Risk can operate with lower
Regulatory Risk power, thereby leading
to consumer savings as
Cybersecurity and Data Privacy Risk
well. Modernizing our
Revenue Leakage Risk equipment is equally
RISKS ADDRESSED
Fraud Risk important to us as we
Information and Communications Technology Risk expand. That’s why it
is important for us
Third Party Risk
to keep on investing
Customer Experience Risk in CAPEX because
every year, we tend to
buy newer equipment.
The newer equipment
Decent Work and Economic Growth
tends to be also more
Industry, Innovation and Infrastructure efficient.”
Sustainable Cities and Communities
Gil B. Genio
Climate Action Chief Technology and Information
Officer (CTIO) and Chief Strategy
Partnerships for the Goals Officer (CSO)
SDGs IN FOCUS
100
Fueling the power of connectedness
Understanding
Interlinkages and
Embedding environmental
Synergies for
conservation in the Manufactured
functioning of
infrastructural assets Capital
Business continuity LEED Certification
management enables
customers to continuously The Globe Tower is Gold
have access to services LEED Certified since 2014
FINANCIAL
SOCIAL &
RELATIONSHIP
MANUFACTURED
Tapping into current
Infrastructural intellectual assets such as
investment for employee 5G technology
well-being Built in technology for apps
Utilization of Globe Pad Progress on 5G deployment
by the Flat’s initiative INTELLECTUAL and market uptake
Launch of The Globe Pad HUMAN
Live demonstration of its
5G technology at Bonifacio
Encourage utilization of Global City in Taguig City
The Globe Pad and showcased wireless
speeds of 2Gbps
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Globe Telecom 2019 Integrated Report
Manufactured
Capital
102
Fueling the power of connectedness
speed lines, Globe aims to deliver an Rate) to reach US$708.86 billion by An unprecedented wave of
even better customer experience to 2025.6 capital spending, in Php
digitally empower more Filipinos. 51.024B
The company has undertaken various 42.54B
43.5B
With industry trends and reports initiatives in 2019 to address the
36.74B
depicting a steady increase in the use growing demand for data as well
of data, Globe has made significant as increasing diversification in the 32.13B
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Globe Telecom 2019 Integrated Report
Manufactured
Capital
LTE technology in order to deliver a large number of antennas to digital enables better access to
an enhanced overall fixed wireless improve cell capacity. The technology world class entertainment as well as
experience for its customers. In 2019, increases wireless throughput while enablement to Filipinos. In 2019, the
the company increased its wireless accommodating more users at higher company made remarkable progress
footprint, adding 139% more cell sites data rates with better reliability on the broadband front by exceeding
versus 2018. Additionally, Globe has while consuming less power. Globe NTC Wireless Broadband speed
been commercially deploying massive deployed the technology in homes commitment with 93% of cities and
MIMO technology using 2CC carrier during the second quarter of 2019. municipalities covered.
aggregation since 2017. This doubles In addition to the deployment of LTE
the LTE capacity and provides vast services, Globe has deployed almost ringing the reality of 5G to Globe At
B
mobile capacity, coverage, and 300 massive MIMO (multiple input, Home consumers
reliability for the 5G in the future. multiple output) sites using high- With 5G networks bringing in the
band spectrum 2600 MHz. This is next generation of mobile internet
As a result of these continuous twice the deployment in 2017, adding connectivity, it would be seen to
efforts, Globe won the 4G availability 100Gbps of capacity. deliver faster and enhanced mobile
award from OpenSignal (a company broadband to consumers as well as
that tracks the real-world experience roadband
B enable hyper-connectivity between
of consumers on mobile networks). Broadband’s (BB) key strategy is machines, people and things (the
to provide a strong foundation as Internet of Things or IoT technology),
I mproving network quality with a world-class digital enabler for all. thus allowing for a smarter and
Multiple Input, Multiple Output As a great equalizer, digital caters to more connected world. In delivering
(MIMO) the needs of the rich and the poor. better customer experience using
Massive MIMO is a wireless In the Philippines, where there is 5G, telecommunication companies
transmission technique that uses huge disparity in incomes present, will have to put up more cell
Case Studies
Expanding Digital Reach
“Digital inclusion is Globe’s efforts to bring in increased coal reserves. However, most of
a huge undertaking connectivity and better infrastructure the workers and their families
because it requires for the Philippines can be seen are from the nearby provinces of
through the company’s initiatives Mindanao. Mobile connectivity and
cooperation from
and the subsequent outcomes. The digital applications thus form an
a broad set of company leverages its infrastructural indispensable part of their lives.
stakeholders—private capabilities to create sustained Through this initiative, over 19,000
enterprises, local value for communities and bolster residents of Semirara Island now have
residents, and local sustainable development in the access to better mobile connectivity,
government. We are economy. digital applications and cyber
happy that the wellness training. The partnership
stakeholders have Digital inclusion with SMPC was also aimed to further
given their support Globe has partnered with the largest upgrade all cell towers in the island
so we can bring about coal producer in the Philippines, with LTE technology to improve voice
Semirara Mining and Power and video communication focusing on
change that would
Corporation (SMPC) and the local bringing better network connectivity
eventually result to government unit to work towards to serve as a bridge between Semirara
a more progressive promoting digital inclusion in the Island and the outside world. Through
community,” remote island community of Semirara this initiative, forecasts about
Ernest Cu, in Caluya, Antique. An hour’s flight typhoons were readily available for
President and CEO from Manila, Semirara Island has an the fisherfolk community and island
area of 55 square kilometers and residents were able to keep in touch
is home to the country’s richest with family members. The upgrade
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Fueling the power of connectedness
towers, antennas, and base stations, can now circumvent infrastructure
especially in cities where line-of- bottlenecks usually encountered in
The company has
sight transmissions are made more traditional fiber rollouts, particularly
difficult. the tedious and lengthy process of maintained its
securing multiple permits from local certification on
5G was first offered to Globe at government units. Business Continuity
Home fixed broadband subscribers Management (ISO
who would enjoy the benefits of CELL SITES AND CHALLENGES 22301) in 2019
speeds from 50 Mbps to 100 Mbps.
Globe has already completed a live Globe’s efforts to improve access
demonstration of its 5G technology and connectivity is concentrated
at Bonifacio Global City in Taguig through its initiatives to increase
City and showcased wireless speeds cell site footprint as well as address
of 2Gbps. The company officially various bottlenecks in deploying ICT
made its 5G fixed wireless broadband and broadband infrastructure in the
service called Globe At Home Air country. Facing the criticality of the
Fiber commercially available to digital divide, it is seen that 80% of
select areas in Pasig City, Rizal, homes do not have fixed broadband
Cavite and Bulacan making the access (We Are Social 2020), 10% of
Philippines the first country in local communities have no mobile
Southeast Asia to experience 5G coverage and 33% of the Philippines’
fixed wireless broadband. With the 107 million population do not have
use of 5G-enabled wireless radios access to the internet at all (Global
(Air Fiber) technology, the company Data). With this growing digital divide
in the network infrastructure also particularly in high-traffic areas like Sustainable Digital Transformation
significantly enriched the resident’s malls, hospitals and schools through In 2019, the
leisure hours with readily available strategic partnerships with the public company’s
movies, music streaming and mobile and private sector. GoWiFi thereby Network
gaming content. enabled more Filipinos to easily enjoy Technology
high-quality internet connection at Group
Globe has also focused on providing affordable rates. initiated Save To
connectivity in remote tourist Grow (S2G), a
destinations such as Siargao by In the city of Makati, Globe entered multi-year program focused on
installing cell sites to enhance a Public Private Partnership with finding sustainable operational
connectivity. Through this move the Makati City local government. efficiencies and identifying savings.
the company contributes to not just This partnership enabled Globe These can be reinvested back to the
digital inclusion but also boosting the to provide free WiFi access to 27 network to fund additional capacity
thriving tourism driven economy of barangay health centers, employees and help address the growing
the province. and constituents at Makati City Hall, demand for data, and where possible,
and students and faculty at University integrating energy efficient solutions
Digital Coverage of Makati. Globe also partnered with in the process. S2G also aims to
Globe has been expanding its digital one of the metro’s biggest lifestyle strengthen the demand forecasting
footprint through its public free complexes, Araneta Center, to provide process and the demand-to-build
WiFi service provider, GoWiFi to fast and reliable internet connectivity cycle time to be ahead of the curve
over 2500 locations nationwide. In via its GoWiFi services. and provide superior internet
2019, GoWiFi expanded its coverage, experience to customers.
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Globe Telecom 2019 Integrated Report
Manufactured
Capital
between those who have access to probability of cyber-attacks, data alternatives to diesel-powered
the internet and those who do not, breaches and network disruptions. generators; and Generators-on-a-
it is imperative to address these Further, climate change and weather- Truck (GOAT). To augment its disaster
challenges. related disasters are projected response capabilities, Globe acquired
to increase in frequency as per satellite phones and built its own two-
Globe has undertaken various the 2019 report by the Business way radio infrastructure that spans
initiatives to increase internet Continuity Institute.7 These risks can across the country.
accessibility for all as well as enable have significant bearing on Globe’s
better connectivity in the country. business activities and reputation. In the aspect of disaster
preparedness, Globe enables its
upporting a Common Tower Policy
S As a major telecommunications customers to prepare for disasters
With permit issues posing a serious provider in the Philippines, Globe’s through the release of SMS alerts
bottleneck to enable seamless investment in Business Continuity as well as Cell Broadcast. This
mobile internet connectivity, Globe Management (BCM) forms an is done in partnership with the
has established a separate tower important component of its National Disaster Risk Reduction and
holding company for the divestment operational resilience and excellence. Management Council (NDRRMC).
of its tower assets and signed
memorandum of agreements with Globe has a dedicated team along BUSINESS CONTINUITY
tower companies for the leasing with other groups in the organization MANAGEMENT FRAMEWORK
of additional towers. These will running the Business Continuity
enable the company to speed up the Management System that address Globe has incorporated a Business
deployment of cell sites and also to business continuity needs. In July Continuity Management Framework,
maximize Globe’s telco assets. Globe 2019, the company’s management which ensures the readiness of its
has also appealed to the Department system governing this process people, processes and infrastructure
of Information and Communications was re-certified by BSI Singapore, to withstand, respond effectively and
Technology (DICT) to adopt an an experienced and trusted BCM ensure quick recovery from disasters.
inclusive policy on the establishment certification body in the region. Under This was completed to maintain
of cell sites under the proposed the Globe’s #GlobeREADY campaign, its ISO 22301 (Business Continuity
common cell tower policy. the company regularly participates in Management) certification. The focus
the Metro Manila Metrowide Shake in 2019 was the continuous buildup of
eaching Out to the Entire
R Drill of the government and ensures resources and the operationalization
Archipelago alignment of the company’s Disaster of the crisis response plans. The
The company’s efforts to consistently Recovery Program (DRP) with various highlights of the operationalization
improve user experience can be seen state agencies, local government plans are listed below.
through its initiatives to enhance the units, local communities, socio-civic
data network in Mindanao. Globe organizations, and other stakeholders • A nationwide rollout of a radio
almost doubled its LTE cell count to raise awareness and build network for the exclusive use of
to add a total of 1,400 new cells in resilience against calamities. Globe the response team.
Davao city. The company’s cell count also conducts evacuation drills in its • A revamp of emergency
was extended by 50% in CDO, with offices, mobilizes response teams and communications equipment.
an addition of 400 cells. An overall activates multiple crisis command • The establishment of a temporary
of 70% of Davao’s population has centers. shelter for employees and their
access to LTE services, across 84% of families in the event of a disaster.
municipalities. For Mindanao, Globe To manage the impact of a potential This ensures security in case they
upgraded 937 sites with additional 7.2-magnitude earthquake in Metro are forced to be displaced from
capacity to cater to the data growth Manila, Globe has ready resources to their homes.
in the region. Additionally, the deploy emergency communication • The distribution of hard hats
company also provided 102 new sites solutions to support customer to employees for additional
in Mindanao. requirements such as free calling protection during evacuation.
services in the affected areas. Some
BUSINESS CONTINUITY of these solutions include, Mobile 2019 ENGAGEMENT ACTIVITIES
MANAGEMENT Command Center, Network-in-a-Box AND EXERCISES FOR BCM
ENSURING NETWORK READINESS (NIB); Cellsite-on-Wheels (COW);
full mobile cell phone network In 2019, Globe ensured the roll-out of
Increased digitalization is system called Cellular-on-a-Light- activities and exercises to address the
accompanied with a rise in the Truck (COLT); fuel cells and other
106
Fueling the power of connectedness
Globe enhanced the connectivity
at the tourist paradise of Siargao
in Surigao del Norte as it fires
up three (3) cell sites in the
municipalities of General Luna,
Pilar, and Dapa.
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Globe Telecom 2019 Integrated Report
Manufactured
Capital
108
Fueling the power of connectedness
that contribute to a one of a kind • A safe place to stay for those who
social and psychological workplace. need to stay late in the office due
Extensive surveys and interactions to evening shift or overtime work.
with employees were conducted to • A shelter for those who are
ensure the implementation of this stranded and cannot go home
idea. The concept of the interior due to typhoons, flooding or even
spaces at the headquarters ensured transportation strike.
the integration of the company’s
vibrant culture and passion for Each room can accommodate 2 to
technology as well as providing the a maximum of 4 employees and
utmost comfort and encouraging has facilities such as individual
teamwork. workstations, individual closets, air
conditioners, 2-way toilet and bath
0917 Lifestyle and kitchen sink.
As a strategic move in 2020, Globe
now looks to expand 0917 Lifestyle 2020 OUTLOOK
with the opening of its first flagship
store 0917 Store in Makati, and its With the company’s commitment to
e-commerce shop prior to the store strengthen the data network capacity
launch. Expansion will also be seen in the Philippines, Globe plans to
through new Retail Partners to carry build a record number of new cell
the 0917 Apparel and Gadgets Line. sites with significant investment
The flagship store will be carrying towards the company’s broadband
Globe’s exclusive Vanguard collection footprint. Globe spends more than
- infusing Fashion and Technology in one-third of the company’s topline
Globe’s Apparel collection, as well as revenues every year to incorporate
key collaborations, towards its aim internet services and deliver on the
for 0917 to be a Fashion Brand that company’s commitment to provide 2
consumers desire. million homes with at least 10 Mbps
connectivity by 2020.
Globe Pad by The Flats
The Globe Pad by The Flats is well The company is also committed to
located and just 10 minutes from ensure seamless number porting
the Globe headquarters, it ensures services in line with the new mobile
convenience and ease of travel for number portability initiative of
Globe employees. the government (“Mobile Number
Portability Act”). Globe along with
Served as a “centralized” housing for other mobile operators has chosen
Globe employees, it provides: Syniverse, to be the Mobile Number
Portability Service Provider (MNPSP).
• T he primary accommodation for The company will continue to invest
regional employees traveling to in enabling smooth implementation
Manila for training/meeting at The of number porting services.
Globe Tower (TGT) - BGC, WCC,
GTP and Makati Valero Offices.
• A temporary home for those who
live very far from TGT-BGC office
and would like to stay close to have
more quality time for one’s self.
1
https://www.globe.com.ph/about-us/newsroom/corporate/ph-radiology-oncology-society-debunks-cell-tower-misconception.html
2
Philippines - Telecommunications Industry Report - Revenue Analysis & Forecasts, 2019-2025
3
https://www.ericsson.com/en/press-releases/2019/11/ericsson-mobility-report-5g-subscriptions-to-top-2.6-billion-by-end-of-2025
4
https://www.internetworldstats.com/top20.htm
5
https://wearesocial.com/blog/2019/01/global-digital-report-2019
https://globenewswire.com/news-release/2019/04/05/1465857/0/en/Data-Monetization-Market-expected-to-reach-US-708-86-Bn-by-2025-Transparency-
6
Market-Research.html
7
https://www.thebci.org/resource/horizon-scan-report-2019.html
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Globe Telecom 2019 Integrated Report
Intellectual Capital
Climate Action
110
Fueling the power of connectedness
New app-based
interventions and customer Understanding
Capacity building for
touchpoints enhancing Interlinkages
customer experience
internal and external and Synergies
stakeholders on the
principles of resource
Increase in NPS score year for Intellectual
on year
conservation Capital
Transactional NPS score
Programs conducted on
for 2019 was noted at 38.4
instilling values of resource
compared to 34.5 in year
conservation and resulting
2018
reduction in energy/
resource consumption
Retain momentum on
developing innovative
Initiatives such as
touchpoints and apps for Investments in building
encouraging flexible
customer experience capabilities in current and
work arrangements and
internal advocacy has emerging technologies
enabled employees to
make environmental Enhanced service delivery
conservation a personal capabilities to attract a
agenda. wider customer base
NATURAL
INTELLECTUAL
Investments to protect
Employee training to customers’ data
enhance organization
knowledge base in the Compliance to local Data
area of data science Privacy regulations
Enhance employee
training in learning
platforms and digital
tools
111
Globe Telecom 2019 Integrated Report
Intellectual
Capital
112
Fueling the power of connectedness
Sweepr is an electronic request a market disruptor in terms of
for condemnation of assets for innovative technology.
Completed Cloud
disposal. It supports a paperless
working environment and helps The company’s journey since 2016
Mass migration for
employees perform admin work showcases increasing focus given to 86 servers as of
faster by reducing the need to transitionary development of the old 2019
manually submit documentation. system to a new platform, enhancing
the digital quality of a landmark Launched
Volunteer App is an automated migration for Globe’s customers
Accelerated
way for employees to volunteer and partners. ISG has a structured
individually or as a team. It has year-on-year strategy to strengthen Cadetship
real-time reporting to monitor CSR its partnerships. From the Beyond Enablement
events which Globe sponsors and Information Technology Forum and Program (AC2E) in
events that employees joined. the Global Innovation Forum to 2019
launching and developing the GoIT
CUSTOMER & PARTNER FOCUS program, the company understands
modernization and migration to be
The company conducted 48 various a continuous cycle rather than a
partner immersion programs, random initiative. The benefits of this
technology focused sessions, and migration and support of digitization
business reviews with partners to efforts of the company can be seen
enable them to make steady strides in terms of building better network
in their digital journey in 2019. connectivity, advanced infrastructure,
To protect its customers, Globe improving the company’s reach
developed various technological and margins, delivering fantastic
applications to improve innovative customer experience and showcasing
integration, maximize operational value creation across the company’s
efficiency, and enhance customer value chain.
experience. These initiatives and
applications address challenges In October 2019, the eCWT
faced by society as well as Globe’s (electronic Creditable Withholding
customers. It also provides an avenue Tax) application was released to
to push forth the boundaries of the pilot users which automated the
company’s core business activities, end-to-end handling and processing
thus enabling Globe to become of CWTs. This gives customers the
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Globe Telecom 2019 Integrated Report
Intellectual
Capital
The Information
System Group
launched the 6th
Globe Innovation
Forum with the
theme: Digital As
One: Co-Creating
a Digital Globe,
headed by Pebbles
Sy-Manalang, Chief
Information Officer
Case Study
Broadband Agile Release Train (BB ART)
Globe has developed 141 internal pushed for the improvement of back- Business work together in order
Application Program Interface (API) end operations and the delivery of a for the BB ART Teams to deliver
with a total of 476 APIs to-date. The real do-it-yourself (DIY) experience. features that are of value to Globe
company has 65 Agile teams across The benefits of this initiative can be at Home.
10 domains and has completed 3 seen in the release of approximately •• One of the promising features
program increments in Broadband’s 211 features in the last 13 months delivered is enabling the Globe
Agile Release Train (BB Art). The and the support of at least four at Home Mobile App to be
BB ART initiative was a pilot for (4) priority Broadband initiatives, Consumer Mobile Service-ready
the scaling of agile teams prior to specifically: for campaigns configured without
SDA and is currently implemented having to alter the code.
using the Scaled Agile Framework •• The Streamwatch Xtream Prepaid •• The gamification of the app was
(SAFe®). The purpose was to have Box released in time for 917 Grateful
multiple agile teams co-located in •• DIY Postpaid Wireless @ High For You Celebration.
one (1) area to deliver value for each Speed •• The Process Automations and
Program Increment (PI) and foster •• An increase in customer Serviceability Tool enhancements
collaboration for teams with minimal engagement through multiple have also helped Broadband
dependencies. Each PI spans across 3 campaigns and gamification Businesses ensure that Globe’s
months or 12 weeks and consists of 6 •• The enablement of Data Analytics customers are assisted with their
iterations or sprints, which is a 2-week prior and post sales transactions.
period. At the end of each iteration, Benefits and Impact: In summary, the collaboration
the deliverables of all the teams are between business and tech teams
showcased to stakeholders to get •• The PI planning events have has been evident from the time
feedback and in turn, released to become key to the Train’s that BB ART teams garnered
production once ready. success as this is where all the support to deliver value for
representatives from Information Broadband customers.
BB ART as an initiative underscores a Systems Group, Product
better way of developing software. It Management, and Broadband
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Fueling the power of connectedness
opportunity to access the creation applications. The adoption of Zoom
and submission of the CWT as part led to easier telepresence and team
of their bill payment. The benefits of collaboration.
which include accessibility from the
comfort of their workplace or through PARTNERING WITH DIGITAL
an assigned terminal in Globe stores. STALWARTS
The company presented this to the
Bureau of Internal Revenue where To keep pace with the digital
Globe influenced the passing of the transition, it is imperative to
Revenue Memorandum Circular 121- effectively adapt to disruptive shifts
2019, allowing the use of certain BIR in technology and volatile business
form/certificate in electronic format. environments. This should occur
in tandem with honing workforce
ANCHORING OPERATIONAL skillsets and devising innovative
EXCELLENCE business models. To achieve this, the
company partnered with leaders in
In line with operational efficiency, the market like Amazon Web Services
the SAP Ariba Invoice Management (AWS), Amdocs and Outsystems to
was implemented to complete the co-create capabilities. Additionally,
automation of the purchase-to-pay the company had to effectively
process at Globe. This eliminated execute large transformation
the back office encoding of invoices initiatives such as the consolidation of
for PO-based transactions. Vendors Globe’s managed service partners for
can now upload their own invoices application support, adoption of open
in the SAP Ariba Network and source and driving business value
workflow approval has thereby optimization initiatives to maintain its
been automated. In 2019, Globe market leadership position. To enable
also undertook a major upgrade of such transformative capabilities,
the company’s Enterprise Resource Globe has embarked on a journey
Planning (ERP). The SAP S/4 of evolving into an integrated IT
HANA migration allowed Globe to organization.
simplify its transaction processing
and reporting, as well as provide To allow for agile innovation
mobile access for the users, through across the enterprise, a review
the use of SAP Fiori. MemoApp is of the existing architecture was
another application that was released
in 2018 and fully utilized in 2019.
The automation for our enterprise
applications replaced manual
approval processes and paper-based
internal communications by 89%,
saving around 10,000 reams of
paper(equivalent to saving 480 trees)
in 2019.
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Globe Telecom 2019 Integrated Report
Intellectual
Capital
116
Fueling the power of connectedness
Center under its Information Security
and Data Privacy Group with the
capability to identify and address data
security risks. The nature and use of
compiled customer data are clearly
outlined in Globe’s Privacy Policy. The
company monitors customer opt-in
and opt-out through its processes
Globe myBusiness
governing consent management held a data
system. Government or law privacy awareness
workshop for SMEs
enforcement requests for customer in the finance
data are documented by the sector, specifically
cooperatives, to
company’s Corporate Legal Services help them improve
Group (CLSG). Upon validation by their data security.
CLSG, the requested information is
approved for release. Hence, each • I t was recommended that those
Globe customer is assured that their affected change their passwords
data is in safe hands. and other means of identity
verification.
To demonstrate Globe’s commitment • Those affected were cautioned
to protect customer privacy and against possible phishing attempts
uphold privacy rights, the company and other online risks.
represents the telecommunication
sector as a member of the National Privacy initiatives for customers
Privacy Commission’s (NPC) Data A Privacy Awareness Week for Globe
Privacy Council. Globe’s Data employees and customers was
Protection Officer (DPO) has conducted in May 2019. To uphold
secured the NPC DPO ACE Level the importance of data privacy, the
1 Certification as well as the IAPP following activities were initiated:
Certified Information Privacy
Manager (CIPM) Certification. • P rivacy Policy has been updated
Additionally in 2019, Globe has not with the Inclusion of Customer
been imposed with any legal or Portrait and Telco Score, which can
regulatory fines for violation of data be accessed at https://www.globe.
privacy. com.ph/privacy-policy.html.
• FAQs were updated under the
In accordance with the notification Privacy Policy which can be
requirements set out in the Data accessed at https://www.globe.
Privacy Act, on 27 January 2019, com.ph/help/globe-privacy-policy.
Globe formally notified the NPC html.
of a personal data breach, through • Executed Data Sharing
its Data Protection Officer (DPO). Agreements with vendors and
Based on the report, the personal partners and installed Privacy and
data breach occurred due to a system CCTV Notices in Globe Stores as
error, potentially affecting 8,851 required by the Data Privacy Act of
customers. Following a standard 2012.
procedure, the team proceeded with
the evaluation of the incident and Project SOCO (Securing Our
the verification of the information Customers Online) is an internal
submitted. The following mitigation initiative of Globe that aims to make
measures were implemented: its customers aware of cyber threats
and provide mitigation measures
• T
hose affected were advised to to ensure their online safety. This
monitor their online and offline project is an ongoing process. The
accounts for any unusual activities. company has also provided samples
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Globe Telecom 2019 Integrated Report
Intellectual
Capital
118
Fueling the power of connectedness
and unsolicited SMS messages. Some Globe Business partnered with Globe blocked a total of 2,471
of these numbers were subject of world-class providers such as domains or sites that hosted lewd
complaints reported through www. Amazon Web Services, Google, content and child pornography as
globe.com.ph/stopspam where RightCloud, GoCanvas, Trustwave, part of this campaign.
customers can provide all the details and Bitsight to unveil these cloud
of spam and scam messages received and cybersecurity innovations at • T
hrough its #makeITsafePH
in their mobile devices. Phone the “Breakthrough with Globe campaign, the company provides
numbers which are verified to be a Business Solutions” in January practical tips and accessible
constant source of spam messages 2019. information about the various
are disconnected from service. • As the Philippines’ leading threats an individual or an
advocate against online piracy organization may face. Globe
SPAMS AND SCAMS through #PlayItRight, Globe, along ensures that its clients are aware
OUTCOMES OF GLOBE INITIATIVES with international Coalition Against of their responsibilities to protect
IN 2019 Piracy (CAP), expressed positive themselves and their organization.
support for the proposed bill
• 3 5% reduction in spam call ordering the blocking of websites The company’s commitment to
complaints received that illegally distribute copyrighted cybersecurity is evident in every
• 4,941 SIMs found to be the material like videos, music and partnership and service it provides.
sources of SPAM/SCAM messages gaming. The proposed Senate For instance, GCash gives customer
deactivated Bill No. 2109 (also known as the safety the utmost priority. In order to
• Over 55 million spam SMS Philippine Online Infringement avoid the possibility of cybersecurity
messages blocked Act) aims to give more power to linked risks materializing, Globe
the Intellectual Property Office has a dedicated analytics team in
INCREASING CYBERSECURITY to address illegal websites that order to constantly monitor these
infringe on copyright. fraudulent activities and protect user
Today’s highly accessible and transactions. Additionally, proper
affordable data and content packages Ernest Cu, Globe President and CEO, compensation is also given to users
has made it easier and more says the legislation will put a stop affected by these unauthorized
convenient to download content. on the growing online piracy in the transactions.
This raises the vulnerability of users country. Cu is concurrently serving as
to unsafe and illegal content, and to a Board Member of the international 2020 OUTLOOK
potential risks to their data privacy. group Asia Video Industry Association
It also deprives the sources of (AVIA), which is a major player While Globe enables enhanced
original content protection for their dedicated to connecting the video digital experience to its customers,
intellectual property or licensing industry with the government in the the company remains committed
rights. To stem the tide of illegal and fight against video piracy. AVIA is to adhering to its core values of
unsafe content online, Globe set up also a credible source in providing securing the customer’s trust through
the following initiatives: information, intelligence reports on a focused approach to data privacy
latest developments and trends that and security. Globe strives to embrace
• I n light of an increasingly hostile print, broadcast and online media a beyond compliance approach to
digital environment, the Globe can use. The group also champions the Data Privacy Act, 2012 in every
Advanced Security Operations the creation of a more sustainable operational endeavor.
Center (ASOC), which opened in business environment for the video
2017, houses the infrastructure industry.
and teams that deliver customer
service, platform management, Moreover, the company’s #PlayItRight
threat detection, threat hunting advocacy campaign advocates for the
and incident response for both protection of its customers against
Globe and its customers. malware and other cybersecurity
• Through its ICT arm, Globe threats from illegal pirated content
Business, the company offers a or torrenting sites. In addition,
full suite of powerful tools and Globe combats child pornography
solutions to enable enterprises to by blocking websites and related
build and secure their business and content, in accordance with the
digital ecosystems for seamless Republic Act 9775 or the Anti-Child
connections with customers. Pornography Act of 2009. In 2019,
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Globe Telecom 2019 Integrated Report
Human Capital
Quality Education
Gender Equality
Reduced Inequalities
SDGs IN FOCUS
Partnerships for the Goals
120
Fueling the power of connectedness
Employee engagement in
environmental conservation
Understanding
Interlinkages and
Employee led environmental
conservation programs and Synergies for
participation Human Capital
Over 300 participants from
Globe stores and partner
communities participated
in Boracay Sustainability
Employee’s role in Week’s Beach Clean-Up Drive
customer engagement
Retain momentum
Employee engagement in and increase employee
social causes engagement in Investments made
Number of employees environmental conservation in human capital
volunteering in social
development
causes
Amount invested in
3,192 employees
employee training and
volunteered in programs
development
targeting social causes
65M invested in employee
Sustain participation and NATURAL training and development
encourage more employees
to volunteer
Enhance return of training
investment
FINANCIAL
SOCIAL &
RELATIONSHIP
Office spaces, employee
housing and employee
HUMAN safety linked infrastructural
development
Enriching employee skills Investments made in
improving office space
Training hours average providing employee housing
per headcount provision
39 training hours average MANUFACTURED Investments made in safety
per headcount linked infrastructure
INTELLECTUAL
Support continuous 86% utilization of employee
employee training and housing provision Globe pad
development by the flats noted
Further improve
infrastructural facilities
offered to employees
121
Globe Telecom 2019 Integrated Report
Human
Capital
122
Fueling the power of connectedness
and sexual orientation, among other performance, reputation and security Human Resource Team, headed by
Renato Jiao, Chief Human Resource
personal attributes. of the company as well as offences Officer (4th from the right), receives
against security, safety, health the award for Globe as one of the
Best Companies to Work for in Asia
Code of Conduct and environment. The code also at the HR Asia Awards 2019
includes administrative roles that are
Globe’s Code of Conduct (CoC) established to ensure implementation
reveals a clear and unified theme of respective procedures, thus
of Philosophy, Purpose and safeguarding compliance to Globe’s
Provision. The company’s Code of Code of Conduct.
Conduct enshrines the values on
the protection of human rights. Collective Bargaining Agreement
The same is also available on the
website https://www.globe.com. The congruence of Globe’s aspiration
ph/. The company assures adherence with employee values is enabled by
to principles to which employees the company through programs that
observe the highest standards of inculcate Globe’s ethics on human
accountability, performance, honesty, right protection in the minds of each
integrity, courtesy and teamwork. employee. This results in employees
The CoC also provides a platform being aware of their rights and
for a reasonable and lawful process, channels to exercise the same. Nearly
to ensure the resolution of issues 3.7% of Globe’s workforce is covered
and problems arising from an by collective bargaining agreements.
employee’s performance or behavior
and subsequent compliance to the
Collective Bargaining
company’s policies. The code includes 2017 2018 2019
Agreement
improper activities involving honesty
and integrity, good behavior and Percentage of total permanent
3.60% 4.3% 3.72%
conduct, Globe’s customers, job employees covered
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Globe Telecom 2019 Integrated Report
Human
Capital
DIGITAL WORKPLACE • G
lobe University’s (GU) Class
Management Information System
Digitizing HR Management enables automated attendance
monitoring. The attendance
Globe has digitized its HR monitoring tool is hosted on an
management system to transform application called the RollCall app
its HR processes. In 2019, HR forms which allows the generation of
are 100% online and digital. HR digital food tickets and logging in
processes have been streamlined and and out of class.
the following digital applications have
been implemented: • M
yChoice Flexible Benefit
Program allows employees to
• EVA enables Globe employees choose the benefits they want.
to file and view their work leaves, Through an in-house system, they
salary as well as update personal can trade non-core benefits (car,
and work information on their vacation leave, paid time-off),
mobile phones. The mobile convert these into points, and use
app acts as a Human Resource the points to buy benefits they
Information System (HRIS) on the prefer, like additional coverage
go. This intervention was launched for dependents, expanded
in late September 2018 with 94% outpatient limit, rice allowance,
(7,303 of 7,751) of employees have clothing subsidy and more. What
downloaded the app. On average, was innovative was that for the
there are 3,420 unique EVA users first time, the MyChoice program
who access or transact on the app was housed inside EVA ensuring
about 61 times per month. smoother transition for the 5,000+
employees who availed of it.
• SAP Concur was launched to
proactively manage employees’ Flexible Work Arrangement (FWA)
travel and expense spending Program
through an integrated travel and
expense ecosystem. It helps in The Flexible Work Arrangement
the reduction of disbursement program allows eligible employees
processing time by having to perform work outside of
approvals for travel, cash advance their regular work site and work
requests, and expense liquidation schedule, enabled by technology
all done using the tool. Through and digitization of work linked
this initiative, Globe won the 2020 activities. This program was officially
Concur Innovation Award, the first launched in May 2019. Eligibility
company in Southeast Asia to ever to the program was assessed by
get the award. Division Heads and concurred by
Group Heads based on the following
criteria: communications and
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Fueling the power of connectedness
system access requirement, office Marketing, Professional Development,
hardware/devices, team dynamics Leadership and Culture. Partnerships
as well as collaboration and overall with the different training groups
performance. as well as individual advocates
of learning are nurtured through Awards for Quest:
Those who may need to stay overtime Learning Circles.
(due to cutovers, traffic, or sudden Bronze Stevie International
inclement weather) may choose to With the need to develop key talent Awards (October 2019) for
do so at the Globe Pad. The HR team, imperatives for the organization,
recognizing the changing needs of Globe University is a visionary
Mobile Integrated Experience
the employees, bought one whole step in the direction to drive a step
floor at The Flats Tower in Bonifacio change in workforce capabilities and
Global City, Taguig and repurposed it performance.
into a dormitory exclusively for Globe
employees. The dormitory, called the Globe’s learning and development
Globe Pad, is a temporary respite for strategy is a blend of traditional
Ka-Globe who want a place to stay learning platforms and digital
overnight or a place closer to the tools to maximize employees’
office. The Globe Pad is also where holistic development. This blended
employees flying in from the regional methodology enables employees
offices get to stay for free. with both technical and leadership
skills. Some key learning interventions
TALENT DEVELOPMENT AND rolled out in 2019 include.1
FUTURE OF WORK
• Data Scientists Program
Enabling Employee Growth This program provides training on
& Success through the Globe Big Data Analytics, SQL, Business
University Analysis and Programming. 39
In today’s knowledge-based economy, fresh graduates from various
human capital development as a Philippine universities were
valuable organizational resource has accepted into the Data Science
become central to business strategy. Program
With the rising trend towards
teamwork and empowerment to • Artificial Intelligence Course
hurdle the pace of technological This eCourse covers a basic
advancement, organizational learning background on Artificial
and the agility to learn faster than Intelligence (AI) and Machine
competition is seen as the route to Learning, and how they are related
competitive advantage and market and enabled by Big Data and Data
leadership. Science.
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Globe Telecom 2019 Integrated Report
Human
Capital
• ImmersiV
Employee Training and Education Performance Barometer
Globe also ventured into training
innovation by introducing Training Education 2017 2018 2019
ImmersiV – a Virtual Reality
Total Training Hours 135,976 193,203 227,416
(VR) training that simulates the
Stores’ day-to-day operations to Average Training Hour per headcount 24.66 25.04 39.94
immerse Store front liners into
Total Investment (in M) 62.2 65 65
multiple customer interactions and
experiences. ImmersiV was piloted
in several Stores and has been
incorporated in Stores’ Onboarding
Academy Training Hours
program for new hires. With this
kind of innovation, attrition of Technology and Innovation 93,052
store personnel which impacts
Sales and Marketing 17,356
manning and operations would be
minimized. VR training modules for Leadership 37,208
Stores also aim to prepare them
Professional Development 76,712
for their day-to-day responsibilities,
reduce their anxiety and make
them feel confident in engaging
with Globe customers. EMPLOYEE ENGAGEMENT
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Case Study
Enabling Employee Learning
and Development
Given the ever dynamic market,
it is essential to create a future
ready human resource strategy
that ensures success, longevity
and relevance of the company. The
Channel Governance and People
Excellence (CGPE) team under the
Channel Management Group at Globe
strategized to enable a future-ready
organizational proposition, thus
ensuring continuous value creation
through employee development. This
strategy is based on four (4) strategic
pillars:
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Singtel volunteer
Ronnie Shani repaints
the wall of one of the
classrooms of the
Asian Development
Bank Spouses
Association (ADBSA)
Aeta Elementary
School during the
first day of the Globe
- Singtel OVP, titled
Better Together 2019.
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Fueling the power of connectedness
excited to show the volunteers disadvantaged. Activities ranged
around Zambales and are enthused to from building homes, painting and
see how their efforts will greatly help repairing schools under Brigada
the community.” Eskwela, cleaning up coastal areas,
teaching sports to children and
Aside from tree-planting, the promoting digital citizenship, among
volunteers conducted a Brigada others.
Eskwela activity at the ADBSA Aeta
School (Jesmag Iba) located in Globe has also been spearheading
Tambac, Palanginan, Iba, Zambales. the introduction and expansion of
volunteering in its various forms,
The volunteers also learned how such as livelihood, education, and
creativity can always flourish by environmental protection throughout
receiving hands-on experience—from many regions of the country. Its
weaving bamboo bags and baskets own employees frequently join
to lahar pottery-making—two of the volunteerism activities as part of their
most popular sources of livelihood own corporate social responsibility
among Aetas that help sustain their (CSR) program, investing their time
families and the entire community. and effort in sustainable ventures
that can improve the state of
“This program made me realize locations where they volunteer while
that this country can be a better enriching their appreciation of their
place for the tourists and the own history and culture.
community,” Charles Diomampo, a
Globe volunteer said, while Singtel
volunteer Ronnie Bin Shani quipped,
“It’s an eye-opening experience and
heartwarming to be part of this
program, knowing that our efforts
can have a long-lasting impact on the
community.”
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Fueling the power of connectedness
goals. Consequently, Globe adopts a
proactive approach aligned to global
best practices to ensure the safety Globe’s Safety Strategy
and well-being of the workforce.
Safety hazards identification and assessment
1. Globe’s Safety-First Approach
Development of safety linked protocols and
The company has a dedicated health guidelines
and safety policy that forms the •• Safety linked training
basis of its Occupational Health and •• Safety linked infrastructure
Safety (OHS) strategy which covers •• Safety audits
six (6) key components. The first •• Safety linked certification
component is identification of safety
linked hazards in every operational
site. Once the hazards are identified,
they are assessed and a strategy to effectively. They are also encouraged
minimize the impact of this hazard to provide timely feedback to ensure
is chalked out. This is followed by alignment of operations with the
devising and implementing safety policy.
linked protocols and guidelines which
incorporate the insights gained HAZARD AND RISK ASSESSMENT
from the safety hazard assessment
study. As employees are at the The Globe Integrated Management
forefront of implementing the safety System Committee regularly reviews
linked guidelines, they are trained the job hazards and risk assessment
on various safety linked aspects. of all Globe activities to ensure the
Through training and other platforms, protection and welfare of employees,
employees are actively engaged with workers and the general public.
the safety dialogue encouraging them Activities identified as moderate
to embrace a proactive approach to to high risks are provided with
safety in the workplace. appropriate programs and controls.
Some of the significant health
Globe also invests in infrastructure and safety risks identified in Globe
and personal protective equipment operations include:
for its facilities and employees. To
ensure each operational site is aligned •• Motor vehicle accidents during
with Globe’s safety standards, safety field work and sales operations
audits are conducted. Lastly, the •• Physical injuries due to equipment
company obtains safety certifications failure, office maintenance,
to strengthen the alignment of construction and installations
safety practices to global best •• Office accidents and ergonomics
practices. These 6 components are concerns such as prolonged
implemented in a cyclical manner sitting/standing, eye strain,
to ensure feedback received at the musculoskeletal pain
end of audits is incorporated into the •• Danger from hazardous activities
standard operating procedures and such as tower climbing, radiation
guidelines. This then leads to revised exposure, and activities in confined
training for employees and new space
investments in safety. Hence, Globe’s •• Psychosocial, workplace violence,
safety strategy is continuously and human behavior limitations
evolving with the vision of setting •• Security incidents and acts of
safety benchmarks for the industry. terrorism
As part of Globe’s health and safety
strategy, Safety Officers have been Managing risk through Insurance
appointed to ensure the health The company partners with local and
and safety policy is implemented international Insurance providers to
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Globe Telecom cares for people, not only for our employees but also the communities surrounding our
operations, as they are critical to the success of our business. We protect their rights and promote safe and
secure working environments for all workers. It is the management’s primary objective, the employees’
individual and collective responsibility, including our business partners to meet this commitment.
We commit to:
•• Continuously assess all ill health and safety hazards of our business operations and provide programs and
process improvements toward prevention and elimination of occupational injury, accidents, and illnesses
in the workplace and the communities where we operate;
•• Ensure that occupational health and safety is a core consideration of planning, delivery, monitoring and
review processes at a strategic and operational level;
•• Monitor the non-ionizing radiation exposures of our sites and ensure that these are below the limits
recommended in national and international guidelines;
•• Train and equip our employees with necessary skills and information to work in a safe and environmentally
responsible manner and mandate our business partners to adopt these principles to ensure communities’
health and safety;
•• Conduct a regular review of our partners’ management system to ensure that the commitments of this
policy are being delivered, and that we strive for continuous improvement;
•• Comply with all occupational safety and health laws applicable to our telecommunication business and
adopt international best practices;
•• Report our safety, health, and environmental performance to our stakeholders.
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was conducted by the Philippine Action Team) and 45 members of
Red Cross as required by the new Globe’s workforce have received
RA 11085, “Act Strengthening First Aid Accreditation, Industrial
Compliance with Occupational Safety Fire Fighting as well as Urban Search
and Health Standards (OSHS) and and Rescue operation. Preparation Zero fatality and zero
Providing Penalties for Violations for the recruitment of the 3rd man-hours lost due to
Thereof”. batch to be trained is underway
work-related injury/
for 2020. Globe employees have
4. Investing in OHS-related also been encouraged to undergo
accidents
Infrastructure and OHS Audits Basic Occupational Safety and
Health (BOSH) and Loss Control
In 2019, Globe completed the Management (LCM) training. Globe
preparation of temporary shelters. has made it mandatory for employees
These shelters will be utilized from certain cadres such as SO1
during times of disasters. The first (Staff officer 1) to undergo at least 10
step towards this activity was to hours of safety training .
identify facilities which would be
feasible options for developing an 2020 OUTLOOK
evacuation set-up. This was followed
with efforts towards making The company ensures a culture of
the temporary shelter facilities diversity and inclusivity. In 2020, HR
operational by purchasing 450 created the Pride@Globe Workplace
units of tents with a complete set of Group for the LGBTQI+ community.
basic needs. An intricately laid out This is followed by a Diversity Policy
organizational plan, complete with where dependents of legally married
details of logistics and customized same-sex couples can avail of the
safety communication protocols same company benefits with the
was also established. Distribution rest of the employee force. These are
of helmets to all employees in case some of the ways where Globe show
of earthquakes and installation of real caring for our employees – a
an earthquake monitoring machine testament that here, Love Wins.
linked to the evacuation alarms have
been implemented.
5. OHS Training
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Employment 2017 2018 2019 NEW EMPLOYEE HIRES 2017 2018 2019
AND TURNOVER
Total Employees 7,206 7,716 8,048
New Employee 769 1,220 871
Category 2019
Category 2017 2018 2019
Senior Management 4
Sr Management 476 480 521
Mid Management 253
Mid Management 4,203 4,446 5,336
Specialists & CBU 74
Specialists & CBU 2,527 2,790 2,191
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EMPLOYEE TURNOVER EMPLOYEE ENGAGEMENT
Turnover Rate
PARENTAL LEAVE
TRAINING EDUCATION
Mindanao 40 24 26
Employees Volunteering
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Fueling the power of connectedness
Understanding
Employee volunteering for Interlinkages
Green product offerings e.g.
the social causes and Synergies
E sims, paperless billing Number of employees for Social &
Paper saved through
volunteering in social Relationship
development causes
paperless billing Capital
40% of workforce or 3,192
Number of customers employees volunteered for
participating in Globe’s social development causes
environmental conservation
activities Sustain participation and
encourage more employees
655 tons of paper saved to volunteer Investments in enhancing
from 40.9M customers with service quality
paperless billing
Investments made in Network
1.7 million GCash users’ and IT Infrastructure
partner with Globe in
its efforts towards tree CAPEX 51 billion / US$989
plantation million dedicated towards
network expansion
Retain momentum and HUMAN
increase customer and Committing to 63.0 billion/
community engagement in US$1.2 billion in network
environmental conservation expansion
FINANCIAL
NATURAL
Increasing investments in
data privacy and increase
number of beneficiaries
for programs targeting
awareness building on
responsible use of the
internet
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Globe values the growing network Globe nurtures its relationships with “Our goal is to
of customers, suppliers and its customers through the philosophy
build a relationship
communities that it has been able of “Treating People Right to Create
with every customer.
to partner with over the years. a Globe of Good”. The company’s
The company believes in forging customer value proposition is
With the millions of
strong relationships based on trust, captured by the acronym and customers Globe has,
mutual respect, cooperation and a dictum “SEED”. Its aim is to nurture our digital platforms
vision of shared growth with all its each customer as a seed would and technology makes
stakeholders. The focal point is to be nurtured by a gardener. Globe it possible to engage
nurture these invaluable relationships focuses on the resources and the them at scale -
by leveraging an innovation centric infrastructure required for customer with efficiency and
approach to enable unique value value creation while also actively consistency. Most
propositions for its customers contributing to enhance the quality
importantly, we are
and communities at large. With a of the enabling environment. Hence,
able to care for our
substantial network outreach across Globe focuses on fueling the power of
the Philippines, Globe envisions a interconnectedness among Filipinos
customers in a relevant
vast web of people to be impacted in a manner that is holistic and and meaningful way.”
through its business activities. This sustainable.
Rebecca Eclipse
can be seen as a valuable opportunity Chief Customer Experience Officer
for the company to promote a culture 1. Secure the customer (CCEO)
of responsible stewardship in the
economy. Consequently, through Globe’s strategy of securing a
these relationships, Globe furthers thriving customer base is enabled
its sustainability agenda towards by delivering technologies and
holistic growth and the development services that are second to none.
of the Philippine economy, powered The company is a one stop solution
by digital transformation and for customer needs spanning
connectivity. connectivity, entertainment,
education and customized services.
CUSTOMER FIRST: STAYING ONE Globe conducts field research to
STEP AHEAD understand its customer’s needs
better while also adopting the
Globe serves over 94 Million latest technologies and customer
mobile customers and 2 million experience (CX) trends. Field research The company’s CX strategy
home broadband customers in the often comprises visiting customer’s focuses on:
Philippines. With a growing and homes and gaining insight into their 1. Customer Insight: An
dynamic customer base, Globe context and needs. The company also in-depth understanding of
has a dedicated approach towards closely monitors customer’s online
ensuring customer delight enabled sentiments to immediately address
customer needs, challenges and
by innovative and creative service customer issues before it surfaces opportunities.
delivery. Actualizing customer vision to mainstream online platforms. 2. Customer Journeys: Re-
into reality and making quality a Globe conducts surveys across the imagining customer end-to-end
hallmark of service delivery are at the numerous customer touchpoints. experience
core of Globe’s approach to elevating This gives Globe rich insights into 3. Digital/Omnichannel:
the value generated for its customers. customer sentiment. Receiving real-
time feedback is a key enabler of
Enabling seamless offline-
agile challenge resolution and service to-online and personalized/
delivery. contextualized capabilities.
4. Treating our own people
Globe has been able to secure and right: Empowering frontlines to
retain its customer base through serve customers better through
Secure the customer
its customer centric approach that
Engage the customer puts them at the heart of every
the alleviation of menial tasks.
Empower the customer endeavor, from design ideation This elevates the quality of
Delight the customer to service delivery. The company interactions with the customer.
uses a management tool called the
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Fueling the power of connectedness
Net Promoter Score (NPS) which customer challenges and create
serves as a compass for customer market differentiators. To establish
satisfaction and engagement. Over a continuous dialogue with its
the years, Globe has seen a consistent customers, Globe has designed
increase of the NPS score, evidencing a blended approach to customer 8-digital landline
the deep-rooted relationship the engagement which combines
company has been able to forge with technology and human interface to In compliance with the
its expansive customer base. Overall, create unique customer touchpoints. regulatory requirement of the
Globe’s 2019 Transactional NPS score The company uses these numerous
was at 38.4, versus 34.5 in 2018. platforms as a means of educating
National Telecommunications
customers on various features of the Commission Memorandum
The increase in NPS score year apps and services. These platforms Order No. 10-10-2017, a prime
on year is a testament of the also enable customers to receive example of Globe’s commitment
company’s success in delivering the quick resolution on queries regarding to secure its customers is the
best omnichannel experience to its services and products. 8-digit landline migration in
customers.
1. Amazon Connect: This platform
2019 which entailed seamless
2. Engage with the Customer transforms hotline experience transition in the Metro Manila
for Globe customers and enables area. The company ensured
Multiple Touchpoints expedited resolution of customer smooth service delivery during
At the heart of Globe’s unique queries or concerns. Amazon connect such shifts and made internal
value proposition is understanding provides Globe’s postpaid customers adjustments to buffer customers
the customers. Over the years with a personalized touch by greeting
the company has been able to them with their first name (without
through any such transitional
demonstrate deep insight into the need to key in/dictate their mobile phase1.
what matters most to customers number). It also offers enhanced
by understanding their needs and self-service possibilities within the
aspirations. Customer engagement IVR, reducing the need to wait to be
is one of the key thrusts that enables connected to an agent (for balance
Globe to identify critical triggers inquiry, reconnection requests, etc.).
and pain points. Identified customer This optimizes operations as only
challenges form the foundation for complex transactions reach a human
creative ideation at Globe. When agent. The hotline also has a call back
customer challenges coalesce with feature decreasing the need to wait in
the company’s workforce and its the call queue for customers.
technical prowess, it creates unique
solutions that seamlessly resolve
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2. Enabling Frontline Services: Globe customers, e.g. through the User c. Globe Studios and Globe Live:
has additional frontline services in Council, to help with ideation and In Globe’s endeavor to transform the
place to assure commitment to quick testing of products and services1. Philippine entertainment landscape,
product or service queries and to This also deepens the understanding the company has planned to
take care of customer challenges. of customer engagement activities produce original shows, live events
and aids in contributing to better and engaging world class content
a. Broadband CFS: The service customer experience. through the creation of Globe Studios
line comprises of frontline and Globe Live. Globe studios aims
technicians to handle installation Globe also encourages customer to bring about transformation
and repair for the company’s through events and activities such as in television and cinema by
broadband customers. Globe Live, Elements Music Camp and bringing in the next generation
Wanderland, among others. of entertainment to mobile with
b. Globe myBusiness aftersales: original video productions. The
Globe has established frontline a. Digital Entertainment: Globe has strength of this venture is also
aftersales service for its SME been enabling Filipinos to experience backed by local and Asian media
customers. a wide array of entertainment houses such as Viva Films, Reality
solutions spanning seamless access to Entertainment, Quantum Films,
c. Globe Online Telesales: videos, music, online games, Esports Spring Films and Astro of Malaysia.
The company provides a direct and e-commerce among others. To address the challenge of delivering
customer touchpoint through The company offers pioneering the most engaging and creative
its frontline sales service of content bundles and partnerships events to satisfy customers, Globe
Broadband and Postpaid plans. with globally recognized brands Live leverages Globe’s extensive
such as FreeFB, YouTube, Netflix and experience to increase production
d. Contact Center: The center Disney. Broadband plans bundled quality as well as its wide distribution
at Globe provides customers with with the best local and international coverage.
direct access to hotline agents content has led to more customers
handling mainstream LOBs (Line enjoying high quality entertainment d. Social Media and Globe
of Business). and services. Globe’s digital Community: The company also
entertainment products and services engages with its customers through
e. Globe Stores: The company has led to mobiles becoming Filipinos social media platforms. This paves
has 212 stores nationwide to primary source of entertainment, way to increase the company’s
ensure frontline services to often replacing televisions. outreach and ensures easy digital
take care of customer concerns. accessibility. This platform created
The establishment of Globe b. Esports: In 2019, Globe unveiled by Globe connects its extensive
Generation (GEN3) stores also its first Esports Center (ESC) at Play customer base. Globe customers
provides customers with a diverse Nation in UP Town Center, Quezon exchange learning and tips and help
experience. City. The company has also expanded each other through this community
its #PlayItRight advocacy into Esports platform. This creates a sense of
f. Account Managers: The with the recent launch of Team Liyab belonging and connectedness in the
company has specialized teams and in partnership with Mineski, mind of the customer. In 2019, the
in place to look after customer Megaworld, and Logitech. The ESC omnichannel enablement ensured
accounts. There are dedicated offers unique and exclusive activities that customers are more digitally
Globe employees to take care consisting of mini-tournaments, savvy and expect to be self-served.
of sales accounts. SG Account gameplay, fan meet-ups and meet & It has also facilitated the frictionless
Managers handle SME clients and greets with Team Liyab.2 The center handover of transactions to
EG Account Managers handle also aims to develop recent triumphs traditional or offline channels.
corporate clients. of Philippines Esports as it continues
to attract strong supporters and Globe Telecom Facebook
3. Customer Engagements: Globe acceptance following its inclusion •• Chats Received: 2,984,362
has also established various other in the 2019 SEA games. Strong •• Chats Answered: 2,945,924
platforms to interact with customers community support was also seen »» Globe At Home: 649,981
such as User Council, Business to increase with the success of the »» Postpaid: 343,169
Advisory Council and Women’s Philippine’s national contingent finish »» GP and TM: 779,030
Council. The company also conducts on the top of the medal tally for »» Brand not specified:
Human Centered Design and Esports.3 | 4 1,153,102
User Research by partnering with •• Response Rate: 98.71%
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Fueling the power of connectedness
‘@talk2GLOBE’- Twitter to check account details, data usage “One of the major
•• Chats Received: 619,390 and the ability to add data to their things that dictate
•• Chats Answered: 617,577 respective account and plan. a lot of what we are
»» GAH: 97,268
doing right now in
»» Postpaid: 56,790 Globe One App: The app acts as a
»» GP and TM: 57,621
channel management is
digital companion for all Globe needs
»» Brand not specified: 405,898 the changing customer
or challenges. It allows the customer
»» Response Rate: 99.71% behavior and their
to monitor Globe accounts such as
Postpaid, Prepaid/TM or Broadband.
preferences. They
Globe One also enables the customer are young and they
Globe Community
to track data usage and bills as well as are digital. Their
•• Total page views**: 175,760
(combined web and mobile page lives revolve around
request for service modification and
views)
payment of bills. smartphones and they
•• Total membership: 373,579
are the kind of
**Total pageviews: 175,760
(combined web and mobile
Gmovies: Promoting convenience generation that prefer
with the tagline “Get Inside, Not in convenience. So, in
pageviews) - this is significantly
line”, the app empowers the customer
lower compared to previous everything and anything
with access to purchase movie tickets
years since Globe migrated to a that we do, we are
even before the premiere date. It is
new platform, AEM, in 2019 and
also the only movie ticketing platform
always thinking about
in the process lost its SEO tags.
in the Philippines that aggregates those attributes and
more than 100 cinemas nationwide the behaviors of the
3. Empower the customer with customer enriching app features. target customers.”
Additionally, it has also partnered
Self Service Through Technology with Ayala Malls Cinemas, SM Bernard P. Llamzon
and Applications Executive Vice President,
Cinemas, and Robinsons Movieworld, Channel Management
Through a high quality and diversified to provide an extended avenue for
service portfolio Globe is dedicated their customers.
to making it easy for customers to
enjoy and experience the complete Rush: A customizable digital platform
potential of a digital lifestyle. The that allows enterprises to easily
company focuses on providing build, track, and manage their own
enhanced service quality and customer loyalty program. Rush’s
ensuring ease of product use and digital solutions for loyalty help
applicability. Through the unique businesses conveniently develop and
digital ecosystem, Globe unlocks deploy a custom-branded mobile
limitless possibilities for each app in as fast as 10 days. Rush also
customer. provides in-house marketing tools
for highly targeted communication
Gie: Globe designed a personalized with end customers via SMS, in-app
Facebook Messenger bot to notifications, and email.
effectively engage with customers
through a user friendly and relatable 4. Delight the customer
chatbot. Gie takes the form of a
young, digital savvy Filipina. This a. Globe Rewards
design makes it easier for customers Globe believes in valuing customers
to easily approach and discuss by offering personalized rewards,
queries. celebrating milestones, and enabling
delightful experiences. Globe Rewards
Globe at Home App: The app allows customers to earn points from
provides a free and convenient way to their Prepaid reloads or Postpaid
track and boost the customer’s Globe monthly bill which they can use for
at Home Postpaid and Prepaid Wifi data, call, and text promos. It also
account. It can be accessed through promotes pay as cash with partner
any smartphone or tablet. The Globe stores and allows customers to enjoy
at Home app allows the customer exclusive discounts.
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Thank you Globe for giving Thank you Globe for the Thank you so much Globe
me free 3GB for surfing. 200 bonus points. Telecom for the treats!
It was an awesome treat! - Sylvia Mendoza Got 917 points. Free 3
💕👌🙂 doughnuts from Krispy
- Will de Guzman Kreme and Free upsize from
Happy 7th year to us Globe. Chatime.
Thank you for the privileges! Thank you for the reward. 🙌🙌🙌🙌🙌🙌
- Ekay Tan Hinay
😍😍😍 #GlobeGratefulDay
- Liezel Sichon - Dondon Medalle Luberio
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Fueling the power of connectedness
Case Studies
“Our vision for M
Victor Consunji Development Corporation Residences is to be
(VCDC) Real Estate the beginning of a
long and fruitful
Globe at Home has partnered with Victor Consunji Development Corporation partnership with VCDC
(VCDC) to introduce the first future-ready residences with built-in high-speed in pioneering more
home internet at M Residences in Taguig. Through this connectivity, residents innovative residential
can also equip their homes with Globe Connected Home powered by Samsung developments fit for the
SmartThings for enhanced entertainment, convenience and security inside demands and lifestyle
their households.
of today’s digital
Filipino family.”
Alberto de Larrazabal
Chief Commercial Officer
Korona-911
Koronadal City
Through Globe Business and the City Government of Koronadal, the company launched the Korona-911 emergency
hotline. This acts as an all-in-one emergency communication for information dissemination and response coordination
during a crisis such as the Intensity 6.0 earthquake which hit the town on October 29, 2019. Now under the
management of Koronadal’s City Disaster Risk Reduction and Management Office, the hotline ensures implementation
of communication strategy for early warning, community awareness, coordination or dispatch of emergency response
such as police, fire control, ambulance, and counterterrorism.
Globe prepaid and postpaid customers have the added advantage of being able to call the hotline, free of cost. Globe
Business provided the hardware, infrastructure and communication as well as text blasting through Amber by Globe
Labs and the Session Initiation Protocol (SIP) Trunking of the Korona-911 service.
Connectivity for Real Estate PIONEERING DIGITAL SOLUTIONS includes Mynt, a business venture
Developers: Globe has entered into a BEYOND TELECOMMUNICATION of Globe, Ant Financial and Ayala
strategic partnership with real estate Corporation; KonsultaMD, the largest
giant Megaworld Corp. to integrate Globe is committed to be a change telehealth in the Philippines; and
digital technology in its properties. agent in anchoring the digital digital advertising firm AdSpark
This partnership with First Oceanic transformation across industries Holdings.
Property Management Inc. (FOPM) spanning healthcare, financial
brings focus to design innovation and services, entertainment and Mynt
connectivity in its properties. A total education through its partners and Globe Fintech Innovations (Mynt)
of 25 FOPM-managed properties subsidiaries. operates the mobile wallet GCash
enjoy the benefits of this partnership, the fastest growing e-wallet in the
with the number of beneficiaries 917 Ventures Philippines. Mynt aims to provide
to increase in 2020. FOPM has In 2019, Globe launched its corporate secure, accessible and convenient
also initiated the implementation incubator 917 Ventures to strengthen fintech solutions to individuals,
of digitized payment processes its position as the leader of Filipino businesses and organizations. The
in residential and office units in digital lifestyle by developing and company also addresses financial
collaboration with GCash, Globe at operating new non-telco businesses inclusion through mobile money,
Home and Globe Business. With the that leverage Globe’s existing micro loans and investments.
understanding that sustainability strengths. The company’s accelerated
goes hand-in-hand with technological push for new digital businesses a. GCash
advancement, FOPM also aims to through 917 Ventures is seen to play In the Philippines, the number of
implement Globe’s E-waste recycling an important role in the company’s people owning mobile phones is
program. future growth. 917 ventures also greater than the number of people
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owning bank accounts5. Based on the Telehealth, Inc. (GTI). This hotline
“Our core continues
2017 BSP Financial Inclusion Survey, focuses on delivering health care
to grow very well.
only 23% of adults have a formal to marginalized and underserved
bank account in the Philippines6. This customers by paving an easy channel
There are very few
presents an immense opportunity of communication between the countries with the
to leverage technology to enable customers and licensed doctors. characteristics of the
digital financial inclusion. Through The platform enhances ease and Philippines that is
GCash, a leading mobile wallet in affordability of healthcare access growing at the rate it
the Philippines; Globe has been able by enabling preliminary health is. But having said
to promote financial inclusion and services through a mobile or landline that, we are taking
expand the digital cash ecosystem in connection. the time as early as
the country. GCash introduced several now to ensure that we
innovations in 2019 elucidated below: In line with the vision of serving
are likewise addressing
the underserved communities,
• GSave: A digital savings account, in 2019, GTI in collaboration
what other revenue
in partnership with CIMB bank with Globe Telecom’s Enterprise streams Globe could
that can be opened straight from Group completed a pilot with the develop and tap to be
the GCash app. GSave allows first Department of Health (DOH) in able to continue the
time depositors to participate in Region IV-A. Through this pilot, growth of the company.”
the formal banking segment and telehealth services were made
provides a competitive edge with available to 10 remote barangays. Alberto De Larrazabal,
an interest rate of up to 4% interest The intent of DOH IV-A was to Chief Commercial Officer
per annum, with no minimum initial incorporate health innovation and
deposit or maintaining balance technology into its existing service
requirement. delivery network to further drive
• Bank Transfer (Instapay): Enables health care services in geographically
customers to send money from isolated and disadvantaged areas
their e-wallet to their chosen (GIDA). GTI has identified several
bank without having to pay any municipalities outside of NCR that
additional charges. GCash is intend to use this solution.
currently the #1 Instapay Sender respective categories for Vivo, Globe,
amongst all Instapay-registered Adspark, Inc. and TM.
MFIs. On a mission to accelerate digital and
• International Remittance Feature mobile advertising in the Philippines, AdSpark joins the portfolio of
(for Dubai & Hong Kong): In guided by an in-depth understanding 917 Ventures to strengthen and
partnership with AlipayHK, GCash of the Filipino consumer, AdSpark has continue delivering delight on display
launched a cross-border remittance evolved into a full service, data-driven through creative, media, and unique
service within the app, promoting agency from SMS marketing solely innovations. This is enhanced by
convenient money transfer abroad back in 2012. Adspark helps brands intelligent solutions and decisions
for its customers. This feature in create digitally assisted human that are more efficient, faster and
the app is powered by blockchain connections through innovative, controlled for marketers today,
technology which supports faster, less invasive and more intuitive while strongly leveraging on telco
more secure, and transparent advertising solutions for SMEs, assets, creative capabilities, and data
processing compared to other enterprises, and agencies. intelligence.
remittance methods in the country.
• GCash Help Center: Assists AdSpark advanced its success in Kickstart Ventures
customers with app inquiries and 2019 due to an increasing number To anchor Globe’s focus area of
concerns. This platform enables of clients, helping them navigate the sustainable innovation, the company
customers to directly access complex and ever-changing digital established a strong foundation with
GCash’s knowledge base to provide marketing landscape. The company Kickstart Ventures (“Kickstart”),
information on how to fully utilize is able to solidify its reputation its independent, wholly owned
the app. (help.gcash.com) by accomplishing 11 wins across corporate venture capital entity. As
prestigious award giving bodies in an institutional venture capital firm,
Konsulta MD the national and international arena, Kickstart is a global investor that
Konsulta MD is a pioneering 24/7 such as Tambuli, PANAta, Boomerang, seeks out and invests in promising
health hotline service of Global YouTube, and MMA Smarties under technology startups - innovative
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founders and technologies that can services. To continue delivering
positively transform businesses, efficient employee services, Asticom
industries, and communities. To date, strengthens labor relations and
Kickstart has made investments in 42 increases training hours to improve
tech startups in seven (7) countries ~ performance with clients through the Globe launched the Supplier
the Philippines, Indonesia, Singapore, use of tools and technology. It also Code of Ethics in 2017
Malaysia, United States, Canada, focuses on achieving an increase in
and Israel ~ backing 88 founders of employee NPS to energize employees
100% of Globe vendors signed
companies in diverse fields such as to thrive at work via employee
enterprise SaaS, fintech, healthtech, retention and engagement programs.
the SCOE upon onboarding
education, digital lifestyle and
entertainment, e-commerce and RESPONSIBLE SUPPLY CHAIN In 2019, Globe launched a
digital logistics. MANAGEMENT Supplier Self-Assessment
Survey against the SCOE via
In 2019, Globe’s parent company, Harnessing Synergies to Enable
Procurement System, SAP Ariba
Ayala Corporation, chose Kickstart Sustainable Transformation
Ventures to manage a new fund, Globe partners with a myriad of
targeting US$150M from subsidiaries suppliers, vendors and business
across the conglomerate. This partners in its endeavor of delivering
was also anchored by the Ayala customer delight and enabling
Corporation to double down on the digital transformation of the
innovation investments in tech Philippines economy. Globe engages
startups. The new fund, called the suppliers for various categories
ACTIVE Fund is the first and largest from network, IT, construction
corporate VC fund in the Philippines and facilities, and marketing and
and underscores Globe and Ayala’s advertising. With the company’s
commitment to sustainable dedicated approach to sustainable
innovation and technology development, Globe envisions the
entrepreneurship. ability to influence its partners
in accelerating the sustainable
Asticom Technology Inc. transformation of the economy. The
As a Philippine-based shared company’s approach to responsible
service company under the Ayala supply chain management imbibes a
conglomerate, Asticom focuses life cycle perspective embedding the
on providing superior customer culture of responsible stewardship
experience with consistent delivery throughout Globe’s value chain.
of high-quality responsive services. Globe has embarked on assessing
This is driven by tailor made and its complete value chain from
value driven solutions, underlined by planning to disposal for sustainability
innovation to address client’s business linked risks. There are three (3) key
needs. The services under Asticom cornerstones that anchor Globe’s
include, Staffing Services, Managed responsible supply chain vision; the
Service and Payroll Administration Globe Supplier Code of Ethics (SCOE),
and Management. The strategy Supplier Contract Constructs and a
falls under 4 verticals of Financial, Vendor Monitoring System. Globe
Customers, Products and Services envisages this strategy to culminate
and People. This year showcased in the company, partnering with
7 new association memberships businesses that share its values of
(MAP, FINEX, ECCP, PCCI, BCCP, sustainability.
ANZCHAM and AMCHAM) along
with a 20% increase in new business Globe’s Supplier Code of Ethics
(non-Globe) and 18% new business (SCOE) clearly lays down the
(Globe). The company also launched company’s expectations from its
HR Chatbot (Eva) for Globe HR suppliers with regard to doing
managed services (HELPDESK) and sustainable practices. The Globe
BRAD Mobile APP for Globe concierge Supplier Code of Ethics (SCOE)
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of sustainability. The company Globe ensures the adoption of
HUMAN RIGHTS PROTECTION ensures that none of its operations best practices of ISO 26000 Social
IN GLOBE’S SUPPLY CHAIN have a negative impact on local Responsibility and a governance
communities. Globe is dedicated framework using the Social Return
Globe prescribes to a supply chain to support community building on Investment (SROI) model for the
perspective on the protection activities in partnership with the company’s community relations
of human rights. Consequently, government in geographies of its and CSR efforts. ISO 26000 enables
the company ensures the operation, to ensure holistic growth businesses and organizations to
protection of human rights at its and development. In 2019, Globe translate principles into effective
supply chain level by engaging embraced the Social Return on actions and shares best practices
with suppliers, vendors and Investment (SROI) framework in relating to social responsibility on a
partners on the importance implementing, monitoring and global front. The SROI framework is
of implementing measures evaluating its Citizenship programs. a guidance used to measure social
to protect human rights. The SROI is a framework that provides impact using the following indicators:
company adopts a conscientious guidelines on how to measure social value of investment, reach, monetary
approach while screening and impact by using financial proxies value of outcomes, attribution,
onboarding suppliers to ensure to quantify shared value created displacement and deadweight.
engagement only with partners by projects of activities. The initial
who share the company’s values SROI guide was originally written in • Digital Thumbprint Program
of human rights protection. 2009 with the UK Cabinet Office and (DTP)
updated in 2012 as a result of a multi- The world is evolving drastically
stakeholder consultation. on the technology front which
not only brings opportunities
A. Globe Bridging Communities but also bears several
2020 OUTLOOK Through Globe Bridging challenges. The company sees
Communities, the Corporate Social the importance of educating
Guided by the GSMA Climate Responsibility (CSR) platform of Filipinos on the responsible
Taskforce recommendations, Globe Globe and its subsidiaries, the use of technology (gadgets,
will align its Climate Strategy company envisions a transformation website, social media platforms
with the GSMA Mobile Sector of underserved communities etc.). The Digital Thumbprint
Net Zero Pathway and include nationwide. This is harnessed Program (DTP), a cyber wellness
Supply Chain in its environmental through the power of collaboration program of the Singtel Group
management framework. The and inclusivity through innovative within the Asia Pacific region,
company will continue to work with information and communications promotes responsible digital
its business partners to address technology. With the growth of citizenship and teaches Filipino
key environmental issues (waste business at Globe, the company youth about the impact of
management for e-wastes, single- does initiatives that will help address their online behavior through
use plastics and carbon reduction the needs of the minority and workshops on cyber security
and offsetting) using the circularity marginalized sector. This contributes and safety, online etiquette and
framework and innovations such as to an engaged and empowered responsibility, empowerment
IOT. workforce, committed to do a Globe through technology. The program
of Good. encourages students, teachers, and
CREATING A GLOBE OF GOOD parents to participate in creating
B. Governance and Strategy an open, inclusive, collaborative,
Delivering Social Impact Beyond To ensure implementation of Globe’s and safe online environment. The
Operational Boundaries initiatives in building a resilient initiative was launched in 2016 and
It is Globe’s vision to serve the community, Maria Yolanda C. includes four (4) major learning
Philippine economy as a whole, Crisanto was appointed along with a modules:
the company consistently makes sustainability team to carry out the
investments beyond its revenue company’s commitment towards »» Digital Insight: Trains
generating activities. These responsible business operations. beneficiaries to identify threats
programs span various focus areas The Sustainability team works with and secure information better
such as education, environmental other members of the organization »» Digital Impact: Enables
conservation and digital inclusion. to carry out sustainability practices understanding of technological
Through these initiatives, Globe and communicate said initiatives impacts on social activities
contributes to its key strategic pillars throughout the organization.
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Fueling the power of connectedness
Insights from Asia and the Pacific. 6. Angeles City National Trade
The study cited that the GFS School KEY HIGHLIGHTS AND
program contributed to the 7. Ramon Magsaysay Cubao High OUTCOMES
following: School, Quezon City
8. Camarin High School, •• Officially turned over the
»» Improved digital skills among Caloocan City program to the Department of
teachers and students, 9. Batangas National High Education (DepEd) in 2019
specifically on usage of mobile School •• Reached all 17 regions in the
technology and computer 10. Abellana National School, Philippines, enabling 218
software; Cebu City schools, 11,666 teachers
»» Enabled 21st century learning 11. General Santos City National and 331,241 students with
outcomes that involve High School access to ICT tools and
creativity, communication and methodologies.
collaboration; • Globe Future Makers (GFM)
»» Increased student engagement Program •• Improved creativity,
in classroom activities; and Future Makers is a Singtel Group communication, collaboration,
»» Enhanced school culture regional program designed to critical thinking and increased
through readiness in ICT gather social innovators with student engagement in the
integration. innovative technology solutions classroom
focused on solving social
Globe rolled out its Home WiFi issues in Singapore, Australia, •• GFS contributed to the 2018
Library Program which consists of Philippines, and the region. For National DQ Impact Report
donations of Prepaid Wifi Modems Globe, its Future Makers program that assessed the Digital
to public schools as a way to acceleration program for tech Quotient (DQ) of Filipino
encourage learners to access the start-ups and social innovators learners
internet in the comfort and safety that leverage technology to •• 73% of 8-12 Year Old
of the home. As it is a common help address the country’s most Filipino Students at Cyber-
practice for public school students pressing social issues. The program Risk (DQ Institute Study,
to complete work assignments which was initiated in 2017, 2018)
in internet cafes after school, encourages social innovators
the program provides schools to integrate use of technology
with a free supply of modems into the business model, while
plus a borrowing program that addressing UN SDGs. The program
enables students to bring the provides identified startups with
modems home and continue their mentorship, marketing assistance
work without the need to stay and networking opportunities.
out of the house for extended The top 5 selected startups
receive technology support Five (5) startups (Tagani, Grupo
periods to complete online school Kalinangan, Antipaea, AIDFI, and
requirements. This is in line with valued at 200,000, networking LexMeet) with game-changing digital
solutions have made it to the 2019 Globe
Globe At Home’s mission to opportunities, mentorship and Future Makers (GFM) program. GFM aims
provide internet to 2 million homes opens the unique opportunity to to help build an ecosystem of support
for local social innovators that uses
by 2020. pilot their business in any of the technology to solve the country’s most
Singtel Group markets challenging social problems.
These 11 schools below were
included in the pilot program:
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The ecobricks make use of plastic
laminates which are compressed
via a proprietary process. Each
ecobrick contains 100 grams
of plastic. 7 communities were
rewarded with ecobricks to be used
for various construction projects.
The ecobricks will be used to build
community gardens
1
https://www.globe.com.ph/business/sme/user-council.html
2
https://www.globe.com.ph/about-us/newsroom/corporate/globe-unveils-first-esports-center.html
3
https://www.globe.com.ph/about-us/newsroom/consumer/bigger-esports-center-back-in-eastwood.html
4
https://sports.abs-cbn.com/esports/news/2019/12/06/sea-games-enderra-secures-sibola-s-first-medal-starcraft-64106
5
http://www.bsp.gov.ph/downloads/Publications/2018/FIP_1Sem2018.pdf
6
http://www.bsp.gov.ph/downloads/Publications/2019/microfinance_2019.pdf
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Globe Telecom 2019 Integrated Report
Natural Capital
Climate Action
SDGs IN FOCUS
Environment
Principle 7: Businesses should support a
precautionary approach to environmental
challenges;
Principle 8: undertake initiatives to promote
UNGC PRINCIPLES greater environmental responsibility;
Principle 9: encourage the development and
diffusion of environmentally friendly technologies.
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Fueling the power of connectedness
Globe’s workforce
Green product offerings e.g. E
commitment to Understanding
drive environmental
sims, paperless billing
conservation Interlinkages
Engaging customers in and Synergies
Initiatives undertaken
environmental stewardship
by Globe workforce and for Social &
through volunteerism
outcomes Relationship
Paper saved through Capital
Globe banned the single-
paperless billing
use plastics within its
headquarters at The Globe
Number of customers
Tower (TGT) Investments in renewable
participating in Globe’s
environmental conservation energy solutions and energy
Continue implementing efficient equipment
activities
environmental
conservation programs Outcomes on the investments
655 tons of paper saved
from 40.9M customers with in environmental conservation
paperless billing including energy efficiency,
green product offering
1.7 million GCash users’
partner with Globe in its 1,083 tCO2e of carbon
efforts on tree plantation emission reduction noted in
the period October 26, 2019 -
Retain momentum and December 25, 2019 in the GTIT
HUMAN Plaza, Cebu City, Cebu facility
increase customer and
community engagement in
environmental conservation Make investments towards
Globe’s aspiration developing
5 GW of renewables capacity
and generating at least
FINANCIAL 50% of energy output from
SOCIAL & renewables by 2025
RELATIONSHIP
Business Continuity
NATURAL Energy efficient equipment
Management
Initiatives for greening cell
Business Continuity sites
(ISO 22301:2012)
certification Globe deployed green
solutions targeting energy
Integrated Management efficiency in 3,017 cell sites
MANUFACTURED
System (IMS) certification
on Environmental INTELLECTUAL Integrate environmentally-
Mangement (ISO sound infrastructure and
14001;2015) strategies towards achieving
Occupational Health and the target of reducing its
Safety (ISO 45001:2018), carbon footprint by 30%,
and Business Continuity based on the 2017 levels, by
(ISO 22301:2012) 2030
Retain certification
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Fueling the power of connectedness
Environmental non-compliances the Philippines’s vision towards
related to administrative matters decarbonizing the economy by Climate Change Risks
(no permits or no submitted 70% by 2030. This is relative to its
reports) are addressed accordingly. business as usual scenario of 2000- Globe has identified and broadly
While the company is dedicated to 2030 as expressed in the nationally classified climate linked risks into
ensuring environmental regulatory determined contribution. In this two (2) categories:
compliance, Globe embraces a effort, the company has devised an
beyond compliance approach intricately laid out climate strategy 1. Physical risks - these are the
and envisions making substantial that assessed various facets of its risks that arise from the physical
contributions to drive progress on operations to identify climate change impacts of climate change
the commitments made under the mitigation and adaptation potential. including:
Paris Agreement and the UN SDGs. •• Service disruption as a result
To ensure that the environmental The key aspects of the strategy of destruction of network and
management system at all Globe include: transmission infrastructure
operational sites are continuously •• Impact on network
evolving with the vision of redefining Climate change adaptation: Globe infrastructure due to increase
benchmarks, the company embarked has been evaluating the potential in average temperature (heat
on a journey of receiving the impact of climate change on its wave linked risk)
Integrated Management System operations since 2014. The company •• Supply chain disruptions
(IMS) certification. has identified climate risks such as
extreme weather events (stronger 2. Transitional risks - these
Globe conforms with global typhoons, floods and drought are the risks that arise from
guidelines and standards to step up among others). To enhance the new national/global policy and
environmental data management climate readiness of the company, regulatory directives rolled out
and define the company’s Globe has reviewed and updated its to accelerate corporate action on
environmental footprint reduction Business Continuity Plans to include climate change.
roadmap. The company has aligned response procedures to extreme
its data management system to weather events. For instance, to The company has incorporated
the recommendations made in the ensure readiness in cases of drought these climate linked risks into its
GRI standards and SASB standards. and water shortage, the company risks and strategy discussion.
The climate strategy of Globe has identified potential partners for
has been influenced by the TCFD water supply for buildings. Globe has
recommendations. Given Globe’s also employed engineering controls
commitment to the UN SDGs and such as installation of lightning
UNGC Principles, the company takes arrestors. This contributes to the
on targets to accelerate success on effort in enhancing the resilience
six (6) environment-linked SDGs. of infrastructure assets to extreme
Globe has also committed to disclose weather events.
its impact on the environment
through the CDP (Carbon Disclosure Climate change Mitigation: Globe
Project) to its stakeholders. has adopted a multi-pronged
strategy to effectively contribute to
GLOBE’S CLIMATE STRATEGY global climate change mitigation
efforts through carbon emission
Globe has designed a dedicated management. This focuses on
climate strategy enabling the both, reducing the amount of GHG
company to remain resilient to emissions and offsetting emissions
climate risks while capitalizing on by way of tree planting and
opportunities presented by the reforestation.
transition to a low carbon future. The
company has broadly categorized CARBON MANAGEMENT
identified climate risks under physical
risks and transitional risks. Under the umbrella of carbon
emission management, Globe rolled
Globe is dedicated towards making out numerous initiatives aimed at
meaningful contributions to anchor reducing the company’s greenhouse
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Verified Emission Reduction Certificates issued by AC Energy to Globe Telecom
CARBON
FACILITY DURATION EQUIVALENT TO
REDUCTION
1,273 MWh x
Emissions of 3,255,955
Bayantel, Quezon July 26, 2019 - 0.64075 GEF =
kilometers driven by a
City, Metro Manila December 25, 2019 815 tCO2e
gasoline-fueled car
Globe sees a wonderful Philippines compliance and apply best • Influence stakeholders to move
by reducing our impact to the practices and global voluntary towards a more sustainable
environment and supporting a standards on environmental and consumption and production;
low carbon future to address social responsibility;
climate change. While we operate • Support partners which share
in the Philippines, our employees, • Consciously improve on resource the same environmental values
customers, vendor partners consumption efficiency and to ensure the conservation and
and other stakeholders have a minimize waste generation restoration of vital ecosystems;
presence worldwide. We have through prevention, reduction,
the responsibility to demonstrate recycling and reuse within our • Review and improve on
high standards of environmental operation and through the life environmental management
management and stewardship in cycle of products; system to ensure that the
order to reduce our impact and commitments of this policy is
that of our stakeholders. • Manage our activities to delivered;
minimize pollution and impacts
We commit to: on air, water, land, flora, fauna • Collaborate with government,
and cultural and heritage values; businesses, international
• Integrate climate change institutions, special interest
measures into our strategies and • Encourage and train our groups, portfolio companies and
planning, set targets and report employees and business other organizations to innovate
environmental impacts to our partners to help reduce products that will address
stakeholders; environmental impact through climate change.
mutual
• Comply with all local
environmental laws, relevant • understanding of this policy
standards and practices to and implementation standards
our business. Where possible, among our value chain;
we move beyond regular
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been used to replace gensets •• Flexible Work Arrangement: The
which use diesel fuel. The fuel cell Flexible work arrangement enables
system relies on cleaner fuel (with employees to work remotely from
lower emissions) and is easier to their homes thereby reducing the
maintain with lower maintenance number of trips made by them in a
cost compared to diesel motors. week to their office.
•• Direct Current (DC)-Hybrid •• Project Loop: This program
Generator: deployment of these encourages employees to adopt
hybrid generators can result in carpooling through web based
up to 60% reduction in usage of mobile applications called Loop
diesel fuel, thereby resulting in and Pasabay Pilo. Loop enables
lower reliance on diesel and lesser employees to reserve seats on
requirement for maintenance. the company’s shuttle services
•• Free Cooling System: These whereas Pasabay Pilo enables
systems provide energy efficient employees to plan carpooling.
heat removal solutions for the cell
sites. 4. Offsetting Carbon Emissions
•• Lithium-Ion Batteries: These Another way to reduce its carbon
batteries have been used as footprint is by offsetting. Globe
replacement to Lead-Acid Batteries partners with the Department of
with faster charging time and Natural Resources (DENR) and other
longer life. non-profit organizations to do tree
planting and reforestation programs.
Globe has decommissioned legacy Aside from using its volunteer
machines to ensure only energy program to do these activities,
efficient systems are in place for its the company also encourages its
operations. Finally, in view of the customers to join via donations to key
Philippine Energy Efficiency and partners doing the same endeavors.
Conservation Law (RA 11285), the
company has embarked on a project Some novel interventions organized GCash launched the ‘GCash Forest’
to ensure compliance with this law. by Globe encouraging customers to in partnership with DENR, WWF, and
BIOFIN to increase tree plantation in the
The company is also preparing to participate in tree planting include: Philippines (L-R) Mynt Chief Marketing
gain ISO 50001 Certification for an and Head of Marketing and App Product
energy management system which •• GCash Forest: A “green” feature Chris Manguera, World Wide Fund for
Nature (WWF) Philippines President
will ensure a structured management was introduced on the GCash app and Chief Executive Officer Joel Palma,
system in place to reduce energy aimed at tapping the interest for Mynt President and Chief Executive
Officer Anthony Thomas, United Nations
consumption. Aligned to the environmental causes among its Development Programme Resident
company’s carbon emission reduction users. GCash Forest allows users to Representative to the Philippines Titon
targets, Globe is continuously seeking collect green energy earned from Mitra, and GCash Vice President for
Corporate Communications Reyner
innovative means and adopting best cashless transactions and enables Villaseñor
practices to enhance energy and
resource efficiency.
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them to plant virtual trees that will campaign entitled WASSUP (‘Wag
have real life counterparts. As of Sa Single Use Plastic) which aims at
end-December 2019, total GCash educating employees on the impacts
Forest users were at 1.7 million. of plastics to the environment.
1.7 million
•• Globe Rewards & Hineleban Globe has also tailored programs GCash Forest users
Foundation: This program is and products that make it easier
based on a partnership forged by for its customers to choose greener
Globe with Hineleban Foundation, options. The company rolled out its
which has been widely recognized e-billing scheme in 2015 and has been
for its innovative reforestation successful ever since in encouraging
methodology. By enabling its customers to opt for this greener
customers to donate Globe choice. Globe also provides green Globe customers donated
Rewards points towards restoring service offerings such as E sims which almost 2M through Globe
the Philipines’ primary rainforest enable Globe customers to move Rewards App to Plant 16,000
cover to Hineleban Foundation, away from using plastic physical SIMs.
Globe tapped on its massive
Trees in Bukidnon in just 18 days
customer base to increase To empower customers to easily
awareness about the state of the recycle E- waste, Globe designed an
Philippine Primary Rainforests. electronic recycling program called
The program design has been Project 1 Phone that focused on
built such that the donation of 100 recovering and recycling electronic
reward points leads to the planting waste, specifically mobile phones and
of one (1) tree. Customers can also portable devices such as tablets.
name the tree they are planting
through the Hineleban website Safe disposal of waste is one of
link sent via Globe Rewards app. Globe’s key thrust areas under waste
The program will be operational management. Globe has partnered
until year 20213. On a similar note, with accredited DENR Treatment,
Globe’s partnership with The Mead Storage, and Disposal (TSD) facilities
Foundation, in collaboration with and transporters nationwide for lead
the local community, started at the recycling, battery acid neutralization,
latter part of 2019. The partnership re-refinement of used oil and physico-
focuses on the restoration of an chemical treatment of grease wastes.
initial 2.5 hectares of denuded This ensures effective disposal and
forests in Iba, Zambales but has recycling of hazardous waste.
yet to be integrated to the Rewards
platform. To ensure that generated hazardous
wastes of Globe are disposed of
WASTE MANAGEMENT properly, the company partnered with
accredited DENR Treatment, Disposal,
Globe’s approach to waste and Storage (TSD) Facilities and
management focuses on waste Transporters nationwide. For used
minimization at source, effective lead acid batteries, it has partnered
waste segregation and safe disposal with Oriental and Motolite Marketing
of waste. In the company’s efforts Corporation (OMMC) and EnviroCare
towards minimization of waste as its primary transporters nationwide
generation throughout its value and Evergreen Environmental
chain, Globe has introduced solutions Resources, Inc. (EERI) as its TSD. EERI
that reduce usage of paper and has a closed-loop system to eliminate
plastic which consequently reduce waste generation. They utilize a green
waste generation. The company slag technology for lead recycling,
banned single-use plastics within its crushing and recovery of plastic
headquarters at The Globe Tower. materials for plastic recycling as well
To support this initiative, Globe as acid neutralization for the battery
embarked on an employee education acid. All water used in the treatment
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Fueling the power of connectedness
process is sent to their in-house Environmental Management
wastewater treatment facility. For Solutions, Inc. (CEMSI) for proper
used oil, the company partnered with treatment and disposal. The grease
Genetron International Marketing waste undergoes physico-chemical
through the Bantay Langis Project treatment prior to encapsulation and
of ABS-CBN Lingkod Kapamilya disposal in their very own double-
Foundation which has nationwide lined secure landfill located within
coverage. Genetron collects used oil their facility premises.
and re-refines it to re-incorporate the
treated product into the economy. For electronic wastes (e-wastes),
Water used in the treatment process it partnered with several TSDs
is then treated through their in-house that employ the same method
wastewater treatment facility. for recycling. These are, Total
Environment Solutions - Asset
For Busted Fluorescent Lamps Material Management Philippines
(BFL), Globe partnered with (TES-AMM) and Maritrans Recycler,
Maritrans Recycler, Inc. for Visayas Inc. E-wastes are disassembled
and Mindanao and Cleanway or shredded to recover plastic
Environmental Management materials, electronic components,
Solutions, Inc. (CEMSI) for Luzon as and precious metals for recycling. The
unrecyclable components would then
its transporters and treaters. BFL be decontaminated, encapsulated
contains mercury vapor hazardous to and sent to a secured sanitary landfill
human health. BFLs are treated using for final disposal. The company has
bulb-crusher machines which contain recycled over 343,000 kilograms of
the mercury vapor through a vacuum e-waste and diverted 12.05% waste
and separates the glass fragments for from Landfill.
recycling.
Globe also participates and
For grease wastes, the company spearheads various clean up drives One of the areas in Bukidnon
covered by Hineleban’s
partnered with Cleanway to contribute to the country’s waste rainforestation program
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practices on sustainability and TARGET AND METRICS 2020 OUTLOOK
biodiversity conservation were
discussed4. Globe has committed to reduce its In addition, by joining the Net Zero
carbon footprint by 30% - based on GSMA-led initiative, the company
Underwater mapping the 2017 levels - by 2030; leading to aims to contribute to the end goal
Globe partnered with Antipara carbon-neutrality by 2050. of achieving net zero greenhouse
Exploration Inc., an underwater gas (GHG) emissions by 2050, in
mapping and analytics company that The key metrics used to track alignment with the Paris Agreement
specializes in geospatial mapping and performance on climate change in 2016.5
assessment. It scans coastal areas mitigation efforts includes natural
using an underwater towed platform, capital accounting with a focus on:
sonar and camera. Mosaic images and
sonar data are captured and analyzed • Energy consumption
to identify important marine sites • Energy mix (incorporating
and critical habitats along the coasts. Sustainable Energy Procurement)
Derived data also help determine • Emissions (Scope 1 and 2)
coral reef health which can aid LGUs • Contribution to reforestation
and local businesses in developing
long term plans for coastal
rehabilitation and marine biodiversity
conservation programs.
1 http://visionofhumanity.org/app/uploads/2019/06/GPI-2019-web003.pdf
2 https://www.globe.com.ph/about-us/newsroom/sustainability/mobile-tech-reduce-carbon-emissions-climate-change.html
3 https://www.globe.com.ph/about-us/newsroom/sustainability/restore-primary-rainforests-globe-rewards.html
4 https://ani.seafdec.org.ph/handle/20.500.12174/4787?show=full
https://www.globe.com.ph/about-us/newsroom/business/globe-mybusiness-leads-awareness-campaign.html
5 https://www.globe.com.ph/about-us/newsroom/sustainability/globe-50-mobile-firms-disclose-climate-impacts.html
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Glossary
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Glossary
ESG Environmental, Social and Governance ISDP Information Security and Data Privacy
E-waste Electronic Waste ISG Information Systems Group
FINEX Financial Executives of the Philippines ISO International Organization for
Standardization
FOPM First Oceanic Property Management Inc.
ISR International Simple Resale
FOREX Foreign Exchange
IT Information Technology
FPSI Flipside Publishing Services, Inc
ITIL Information Technology Infrastructure
FWA Flexible Work Arrangement
Library
FY Financial Year
KVI Kickstart Ventures, Inc
GAH Globe at Home
kWh Kilowatt-hour
Gbps Gigabits per Second
LCM Loss Control Management
GCVHI Globe Capital Venture Holdings Inc
LED Light Emitting Diodes
GEF Globe Environment Facility
LEED Leadership in Energy and Environmental
GEN3 Globe Generation Design
GFI Globe Fintech Innovations LGU Local Government Unit
GFM Global Future Maker LTE Long Term Evolution
GFS Global Filipino School Mbps Megabits Per Second
GIEE Globetel Internacional European España, MCG Manual of Corporate Governance
S.L.
MHz Megahertz
GHG Greenhouse Gas
MIMO Multiple In, Multiple Out
GOAT Generators-on-a-Truck
MNP Mobile Number Portability
GMI Globe Mobilé Italy S.r.l.
MNSP Mobile Number Portability Service Provider
GRI Global Reporting Initiative
MSCI Morgan Stanley Capital International
GSMA GSM Association
MSME Micro, Small and Medium Enterprise
GT Globe Telecom
MwH Megawatt hour
GTEU Globetel European Limited
NA/DP Navarro Amper & Co./Deloitte Philippines
GTHK Globe Telecom HK Limited
NDRMMC National Disaster Risk Reduction and
GTI Global Telehealth, Inc. Management Council
GTIC GTI Corporation NED Non-Executive Director
GTSG Globetel Singapore Pte. Ltd NGO Non-Governmental Organization
GU Globe University NIAT Net Income After Tax
GWeN Globe Whistleblower Network Facility NIB Network-in-a-Box
Portal
NIST National Institute of Standards and
HR Human Resource Technology
HRIS Human Resource Information System NLI NDTN Land, Inc.
i-ACGR Integrated Annual Corporate Governance NPC National Privacy Commission
Report
NPS Net Promoter Score
IA Internal Audit
NSDCR National Summit on Digital Citizenship and
IAPP International Association of Privacy Responsibility
Professionals
NSED National Simultaneous Earthquake Drills
ICC International Coastal Clean-Up
NTC National Telecommunications Commission
ICD Institute of Corporate Directors
OECD Organisation for Economic Cooperation and
ICT Information and Communications Development
Technology
OHS Occupational Health and Safety
ID Independent Director
OMMC Oriental and Motolite Marketing
IIA Institute of Internal Auditors Corporation
IIRC International Integrated Reporting Council OPE Out-of-Pocket Expenses
IMS Integrated Management System OPEX Operating Expenses
INNOVE Innove Communications, Inc OSHS Occupational Safety and Health Standards
IoT Internet of Things OTT Over-the-Top Applications
IPD Integrated Project Delivery OVP Overseas Volunteering Program
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P&L Profit and Loss SOCIOLYTICS Socialytics Inc.
PAW Privacy Awareness Week SOCO Securing Our Customers Online
PCC Philippine Competition Commission SEO Search Engine Optimization
PCCI Philippine Chamber of Commerce and SQL Structured Query Language
Industry
SUP Single-Use Plastics
PDEA Philippine Drug Enforcement Agency
SROI Social Return on Investment
PDEx Philippine Dealing System Holdings
SSCM Sustainable Supply Chain Management
PDRF Philippine Disaster Resiliency Foundation
TAO TaoDharma Inc.
PEX Process Excellence Network
tCO2 Carbon Dioxide Measure
PFRS Philippine Financial Reporting Standards
tCO2e Tons of carbon dioxide equivalent
PI Program Increment
TCFD Task Force on Climate-related Financial
PLC Publicly Listed Companies Disclosures
PMBOK Project Management Body of Knowledge Telicphil Telecoms Infrastructure Corp. of the
Philippines
PSE Philippine Stock Exchange
TES-AMM Total Environment Solutions – Asset
PUE Power Usage Effectiveness
Material Management Philippines
QAIP Quality Assurance Improvement Program
TGT The Globe Tower
QAR Quality Assurance Review
TM Touch Mobile
QR Code Quick Response Code
ToR Terms of Reference
RCPI Radio Communications of the Philippines,
TSD Treatment, Storage, and Disposal
Inc.
TGT The Globe Tower
RM Risk Management
UKGT UK Globetel Limited
ROAM Risks, Opportunities, Assessment and
Management UN United Nations
ROE Return on Equity UN OCHA United Nations Office for the Coordination
of Humanitarian Affairs
ROI Return on Investment
UNESCAP United Nations Economic and Social
RPA Robotics Process Automation
Commission for the Asia and the Pacific
RPT Related Party Transactions
UNESCO United Nations Educational, Scientific and
S2G Save2Grow Cultural Organization
SAFe Scaled Agile Framework UNGC UN Global Compact
SASB Sustainability Accounting Standards Board UNSDGs UN Sustainable Development Goals
SCOE Supplier Code of Ethics USD US Dollar
SDA Simple, Digital, Agile VAS Value-Added Service
SDG Sustainable Development Goal VCDC Victor Consunji Development Corporation
SEAT Special Emergency Action Team VER Verified Emission Reduction
SEC Securities and Exchange Commission VOIP Voice Over Internet Protocol
SEED Secure, Engage, Empower and Delight the VR Virtual Reality
Customer
WASSUP Wag Sa Single Use Plastic
Sky Internet Sky Internet, Incorporated
WiFi Wireless Fidelity
SMPC Semirara Mining and Power Corporation
WWF World Wide Fund for Nature
SME Small and Medium Enterprise
YoY Year-on-Year
SMS Short Message Service
SOC Security Operations Center
A list of common terms and acronyms used in the telecommunications sector may be accessed here:
https://www.globe.com.ph/about-us/investor-relations/glossary.html
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Subsidiaries Affiliate Corporate Information
Innove Communications, Inc. Yondu Head Office
The Globe Tower-Cebu 7th Floor, Panorama Tower Globe Telecom, Inc.
Samar Loop corner Panay Road 34th Street corner Lane A The Globe Tower
Cebu Business Park Bonifacio Global City, Taguig City 32nd St. corner 7th Avenue
6000 Cebu City Website: http:// www.yondu.com/ Bonifacio Global City, Taguig
Trunkline: (02) 7730-2000
G-Xchange, Inc. Website: www.globe.com.ph
32nd Floor, Trade and Financial Tower Shareholder Services Office of Corporate Secretary
32nd Street corner 7th Avenue 28th Floor, The Globe Tower
Bonifacio Global City, Taguig For inquiries regarding dividend 32nd St. corner 7th Avenue
Website: www.globe.com.ph/gcash payments, change of address, Bonifacio Global City, Taguig
account status, and lost /damaged Email: corporatesecretary@globe.
Kickstart Ventures, Inc. stock certificates, please contact com.ph
55 Paseo de Roxas Avenue our stock transfer agent:
Makati City Bank of The Philippine Islands (BPI) Investor Relations
Website: www.kickstart.ph Stock Transfer Office 10th Floor, The Globe Tower
16th Floor, BPI Building 32nd St. corner 7th Avenue
Asticom Technology, Inc. Ayala Avenue corner Bonifacio Global City, Taguig
4th Floor, Globe Telecom Plaza 1 Paseo de Roxas Makati City Email: ir@globe.com.ph
Pioneer Street corner Madison Street Tel. (02) 8816-9067 / (02) 8816-9321
Mandaluyong City Fax. (02) 8845-5515 Corporate Communications
26th Floor, The Globe Tower
32nd St. corner 7th Avenue
Globe Directory Bonifacio Global City, Taguig
Email: gtcorpcomm@globe.com.ph
Mobile Landline
Talk2Globe 211 (02) 7 730-1000 Stock Trading Information
Republika ng TM 808 (02) 7 730-1500 Globe Telecom is listed on the
Platinum 188 (02) 7 730-1888 Philippine Stock Exchange.
Sales (02) 7 730-1010 (02) 7 730-1010 Ticker Symbol: GLO
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