ESG Risk Mitigation Opportunities

The elevated environmental awareness of the consumers and the trends in ESG with relevant
regulations promulgated the various companies to implement various ESG risk mitigation initiatives in
addition to their already existing corporate social responsibilities. Along with this initiative comes
various opportunities

SMFB’s effective and well communicated environmental practices can elevate brand image, allowing
enterprises to realize higher margins, expand sales, and even charge higher prices.

 According to the PwC’s June 2021 Global Consumer Insight Survey, the Philippines ranked
second in Asia-Pacific region with 74% of the consumer-respondents identified themselves as
eco-friendly. The environmental practices applied by SMFB can add value to the company and
even established a strong market hold and develop brand-loyalty among consumers in in the
near-future.

The reduced events that damages the environment can help sustain the input needs of the business

 One of the key highlights of environment sustainability initiatives of SMFB is centered about
the minimization of energy and fuel consumption, water consumption and material usage.
In order to sustain their needs, SMFB integrated renewable energy, water treatment
facilities and started reusing by products of their production as a raw material into another.
These initiatives will reduce the input cost in the near future as renewable energy and water
treatment was proven cheaper compared to the outsourced energy and water distribution
providers.

Have a strong positive impact on human capital formation, empowerment and maintenance

 It is no secret that one way to business sustainability is by taking care of the employees.
Studies suggest that human capital formation, empowerment and employee maintenance
increased employee productivity, attracting talented prospects, promote innovation leading
to increase in profits. This is where of San Miguel Food and Beverage Inc. thrives. SMFB has
committed against discrimination in the workplace, enhance employee benefits and
employee upskilling through trainings and seminars. Recently, in order to protect its
employees against the pandemic, San Miguel Corporation, the parent of SMFB invested
Php1B to vaccinate employees and family members.