1.

Corporations are now exposed to sustainability reporting and some of the companies here in
our country have published and actually won awards for their sustainability reports. Using this
sustainability report of FPH (FPH 2017 Sustainability Report), kindly identify what are the
company's:

a. Environmental impacts as discussed in the report

FPH’s environmental impacts are observed in its water withdrawal, waste and disposal, energy
consumption, and carbon emissions.

The company monitors its water footprint to efficiently use water; however, every sector except
the manufacturing sector increased their water consumption over the past year due to having
more business activities such as the energy sector 6.4% increase in water use caused by the full
operation of First Gen’s new 511-MW natural gas power plants, FPH Head Office’s increase in
tenant occupants, and the construction sector expanding the coverage of its reporting.

As for the waste and disposal, FPH increased its waste production in 2017 due to one-time clean-
ups as seen in the amount of waste after the clean-up of EDC’s power plant in Leyte caused by
an earthquake, the energy sector’s and health service sector’s wastes collected and disposed by
waste treaters authorized by the DENR, the real estate sector’s wastes disposed by the tenants,
the construction sector’s wastes from the operation and maintenance of heavy equipment along
with scrap metals to be sold to recyclers, and the manufacturing sector’s wastes from streamlined
operations.

80% of FPH’s energy consumption comes from renewable sources as proven by the energy
sector producing it and Rockwell’s three sites powered by geothermal energy, and other
subsidiaries installing solar panels while the rest of the percentage comes from non-renewable
sources which is still being lessened.

Moreover, FPH’s carbon emissions in the energy sector and the Head Office increased due to
business’ growth through the full time operation of First Gen’s new 511-MW natural gas power
plants and the construction of a new business, the Liquefied Natural Gas (LNG) terminal;
however, the other sectors such as the real estate sector and construction sector decreased their
emissions due to less electricity being used by the locators within FPIP and having fewer projects,
respectively.

b. Economic impacts with corresponding numbers

FPH’s 2017 operations distributed Php 98.8 billion in which Php 238.9 million was spent on social
services and another Php55 million on environmental protection and enhancement. FPH also
retained Php 13.6 billion and generated Php 112.4 billion in economic value.

FPH reduced both the social and environmental investments in 2017 as proven by the
environmental expenses going down by 40% from Php 92.8 million in 2016 to Php 55.16 million
in 2017 and the social investments decreasing by 36% from Php 376.2 million in 2016 to Php
238.9 million in 2017.
These successes are the result of habitat restoration initiatives in EDC's various geothermal
concession areas, as well as some aided community associations' independence in power
projects and a decline in the number of small-scale projects that were given to them. With less
expenditure, the preceding two decades' investments in forest restoration now annually provide
the necessary commodities and ecological services.

c. Social impacts especially in their local communities

Corporate Social Responsibility (CSR) is a major advocacy of the Lopez companies which is
based on the company's values. Thus, without exception, all the FPH subsidiaries have
community projects.

FPH had a social investment of Php 238.9 million which were allocated to different community
projects regarding health which provided health care provision; education which provided training
and scholarship; livelihood which aided farmer federations; and culture which focused on
Indigenous Peoples in the Mt. Apo Geothermal Project with 11,764 tribesmen.

2. The Levels of Sustainability is a tool to assess one's place in the bigger scheme of a sustainable
society as well as the achievement of balance of the three spheres of sustainability. Based on our
class discussion, explain why there needs to be a revision of the model and what should be the
priority of that revision? Please include an illustration of the proposed revision of this model.

The original model needs to be revised by inverting it—putting the environmental value at the
bottom and the economic and social value on the same level at the top. The priority of this revision
is the environmental value since the economic and the social value depend on it and will not thrive
with it diminishing or with the environment being destroyed. If the environmental values vanish,
everything will collapse including the two values. For instance, furniture companies need natural
resources as raw materials such as wood, leather, steel, and so on to manufacture pieces of
furniture including sofas, tables, and beds. These companies which depend on natural resources
must care for the environment the most since without aiding in the regeneration of their resources,
they will not be able to have raw materials to manufacture products. Therefore, their economic
value will decrease due to less business activities, along with their social value due to providing
less employment opportunities. In addition, another revision made is the replacement of profit by
prosperity wherein profit is based on the company’s financial parameters only while prosperity is
based on the growth of not just the company, but also the growth of the external environment.

Meanwhile, in the original model, if the environmental values vanish, the economic values will fall
while the social values’ position is retained. This indicates that if either of the environmental or
the social values diminish, the economic values will be awfully affected, so this model prioritize
and is mostly concerned with the economic values. Therefore, true sustainability is achieved
through a balance between the three values.

3. Explain the dynamics and relationships of CSR, Sustainability, and Sustainable Development.
Provide examples if you think those will enrichen your discussion.

CSR is related to sustainability and sustainable development since it functions as the "framework"
that incorporates sustainability and sustainable development into its operational
procedures. Within the internal organization of business economic, social, and environmental
spheres are interrelated concerns of business operations that involve employees, contractors,
and suppliers who are all contributing for the successful operations of the business. Sustainable
development emerges from CSR as a company strategy and as it maximizes its beneficial effects
through increasing the population's "intragenerational and intergenerational ability" to meet its
developmental needs.

For instance, Coca Cola cannot do CSR activities without aiming for Sustainability which requires
Sustainable Development Goals (SDGs). Coca‑Cola is strongly focused in the areas of clean
water and sanitation (SDG 6), decent work and economic growth (SDG 8), responsible
consumption and production (SDG 12), life below water (SDG 14), and partnerships for the goals
(SDG 17); thus, it has CSR activities regarding the environment, employment, health, and so on.
Companies consult their stakeholders first, then develop their SDGs to plan their CSR activities
and ultimately, achieve sustainability. All three concepts cannot stand with one of it missing. With
this, we can concur that sustainability is not an end goal, instead it is a moving target that
corporation should follow in order to achieve sustainability.