Dean Patricia Empleo – Opening Remarks

November 2021, as announced in the IFRS foundation, they embrace the need for global
reporting standards by creating the separate ISSP. The news in the website is states “ISSP is
intended to deliver a comprehensive global baseline of sustainability related disclosure
standards that provide investors and other capital market participants with information
about companies related risk and opportunities to help them make informed decisions.” In
response to this series of events our own professional regulatory board of accountancy in its
resolution #44 dated September 8, 2020 to rename the financial reporting standards council
to financial reporting and sustainability reporting standards council instead of creating
another council or body the board of accountancy likewise made a decision to adopt the IFRS
sustainability disclosure standards that may be developed and later implemented by the
newly formed ISSP at present except for entities which made us part of their advocacies to
implement sustainability practices. PLEs nearly complied with the SEC guidelines in
memorandum circular #4 series of 2019 approach comply or explain for the first set of
mandated sustainability reports starting the period covering 2019 the first annual reports
were issued early 2020 as part of the annual financial statements.

The approach complied or explained would last during the first three years of
implementation which in effect would be until the period covering 2021 that means
therefore that we now wait for the next guidelines for the sustainability reporting that will
be implemented for the year covering 2022. The reports on which will be issued early in
2023 at present the requirement for sustainability reporting applies only to publicly listed
entities. However, we believe that non-publicly listed entities including of course
universities have their own goals to play companies applying the triple bottom line concept
that gives equal importance to people and planet. In addition to the traditional focus on profit
now measures a company's level of social responsibility its economic value and its
environmental impact but this must start with reviewing our practices. If we have not
implemented sustainability practices based on a crafted institutional framework, we can say
that we are merely in the introductory phase for the intended implementation of
sustainability practices which will be disclosed in our sustainability reports. This is the
primary objective of our theme for this year's foundation celebration sustainability practices
for inclusive growth. Just like what Mr. Yabut has stated we have invited the lineup of
esteemed lecturer and panelists this morning.
Kristine Aquirre
Inclusive Growth
 The Organization for Economic Cooperation and Development (OECD) defines
inclusive growth as "economic growth that is distributed fairly across society
and creates opportunity for all”
 Invest in people and ensure that there is no one left behind
 79% of CEOs globally mentioned that they have had to evaluate their purpose as a
result of covid 19 to better address the needs of their stakeholders
 Increased purpose and impact both from societal and economic perspective
 Empathy and humanity = talent and corporate responsibility
 Primary objective shifted from purely profit but to consideration of purpose and
society
o More conscious and purpose driven businesses

 Coping capabilities are low due to political stability, etc.

o EG: typhoon paeng damage
o It is urgent because of climate crisis
 How can the demands of crimate crisis be met while also making sure that
sustainability is present
 Philippine increased its commitment to be carbon neutral (75%) until 2030
o CANNOT BE ACHIEVED BY THE GOVERNMENT alone because companies
must also contribute
 COST of sustainability
o Investing on having the initiatives to be sustainable
o Tipping points are centralized on the decarbonization
▪ Predicting when this will be challenging
▪ It is needed to make long term investments in sustainability
o Reducing cost of decarbonization
▪ TECHNOLOGY INNOVATION
• EG: solar panels or cellphones
▪ Portfolio management
• Drivers of sustainable framework by BSP
• Withdrawing capital from carbon intensive companies and
reinvesting the capital to the efficient carbon companies
• Reallocate the capital
• Strong intensive to rechannel from carbon intensive to low
carbon activities
 How do they mobilize their workforce for the challenge
 PEOPLE IMPACT VARIES
o Impact of their companies’ activities are prioritized
o Sensitive and equitable manner of implementing their decarbonization plans

 Technology fuels economic growth and open more work

o Seismic shift – to navigate unstable labor market
o Continuously upgrading skills
o Important to remind ourselves that AUTOMATION DOES NOT HAVE a
universal effect in the employment
 Covid 19 pandemic exacerbated the challenges of reaching the sustainable goals
o It affected the health and wellbeing and livelihood
 Through innovation and scalable technology – economic development and labor
market transformation

 Involve the people affected in the decision about their lives

 Supporting locally conceived solution ➔ practical approach
o Need to give opportunities to LOCAL suppliers due to the constraints
experienced due to the pandemic
o It is more practical and accessible
o Energy, skills, knowledge, and enthusiasm of LOCAL suppliers are needed
 In the research by new economic foundation ➔ a more equal world is better for the
habitants
o This is included in the sustainability challenges by WHO
 UN office ➔ safe, clean, healthy, and sustainable environment ➔ enjoyment of lives
of people within the place

 Most companies are generally developing inclusive and diverse strategies for the
competitive industry
 Increasingly identifying new inclusion and adversity opportunities
o Engages the people to come together, talent and development of people
 o Supporting people of different backgrounds, experiences and cultures
 Diversity
o EG: younger members of the board
o Representative that are knowledgeable on EHG
 Strong relationship between business diversity metrics and overall performance

 Creativity
o Human ideas and ECONOMY for creative activities
o Creative economy – knowledge economy
o Based on individual
o Advertising, film, architecture, crafts
o GDP contribution ➔ 7% but ph is lagging behind other asean nations (only
2%)
 Deep Thinking
 Collaboration
o EG: vaccine rollouts
o EG: shift to remote working
o Unsocietal inequality and disintegration of trust and barriers to achieving
targets
 Growth is reflected in the improvement in the labor markets with decreasing
unemployment rate
 All the actors (government and private sectors) need to invest in the decarbonization
initiatives

 Ambisyon natin 2020

o Anchor for development planning

 Green jobs act of 2016

o For the benefit of the environment ➔ jobs
  To their investment allocation to ensure that the companies within the financial
sectors
 Mandatorily require PLEs sustainable report (SEC)
 Opportunities for local governments to finance their projects

New Era of Sustainability Reporting

 There is no one framework
 IFRS came up with one sustainability standards
 International sustainability standards disclosure
o 2 drafts already

 ISSB ➔ simplified sustainability reporting landscape

 IMPACT: Equal footing of sustainability reporting with the financial reporting
o Forward looking information
o Implement controls and processes related to sustainability
o Companies: to improve their processes
 Proposals are dependent on local jurisdictions
 Sustainability reporting ➔ part of gen purpose of financial reporting
 There are exposure drafts

 To address the investors, as a requirement, to base it on gen purpose financial

reporting
o Sustainability report is wider than the financial reports
o All the risks that the entity is exposed
 Consistency with the general reporting reqs

 Disclose information to help users understand the impact of sustainability related

risks
 Identify the individual aspects of strategy
 Consistent with the TCF disclosures
 A: depends on the user of information

 Measure performance against targets

 Metric indicates where we are in the implementation of the sustainability program
➔ If the targets are achieved or not
 Builds on EXISTING FRAMEWORKS with the vision of merging the framework to
come up with ONE STANDARD applicable to ALL entities
 Most companies will need to prepare the reports because the standards are soon to
be implemented

 Disclosing climate resilience and climate relating changes

 If scenarios align with the international agreement regarding climate change
 Identify differences and create and ACTION PLAN to fill the gaps
  ENGAGE: Impacts the operations of the entity
o People must be able to engage with the processes and the information
regarding the sustainability reports
o Control gaps must be addressed

 Expand and explore options to create efficiencies

TO SOLVE POVERTY, THE KEY IS EDUCATION (from Mr. Sycip)

Strong leadership generated and organized methods will yield better results than
fragmented actions
  Organized efforts in making the sustainability come true
 Automation and digital transformation can create new jobs that is not needed before
o Continuously learn, unlearn, and repurpose us to keep ourselves relevant
 Sustainability ➔ planet and people
 Not only focus on the present but also looking forward in the future

Political action is required to promote sustainable and inclusive growth development as well
as the people’s initiative to participate in the sustainable steps of the world

PRODUCE MORE STORIES ABOUT ENVIRONMENT TO ENCOURAGE PEOPLE

Esg ➔ environment, sustainability and growth