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22
S U S T A I N A B I L I T Y
R E P O R T

READY
FOR
TOMORROW
READY FOR TOMORROW
The title “Ready for Tomorrow” encapsulates our transformative journey toward a
sustainable future. It reflects our readiness to drive change, innovate, and collaborate,
as we help lay the foundation for a better world.

At its core, “Ready for Tomorrow” acknowledges the need for immediate action and the urgency
to address the complex challenges of climate change, resource depletion, and social inequities.
It recognizes that tomorrow’s world will be shaped by today’s actions.

We invite you to delve into our organization’s commitment to creating positive environmental,
social, and economic impacts. Through this, we hope to inspire and engage our stakeholders to
join us in building a world that is not only prepared for tomorrow but thrives in it. We believe
that together, we can create a sustainable legacy that stands the test of time.
 CONTENTS
2 About the Report

4 Message from Our President and CEO

9 About San Miguel Corporation

18 Our Stakeholders

23 Our Approach to Sustainability

30 Our Sustainability Blueprint

40 Kalikasan: Good for Planet

78 Kalinga: Good for People

110 Kasaganahan: Good for Progress

123 Moving Forward Statement

124 Appendices

For a more comprehensive

understanding of the Company’s
operations and impacts, we
recommend a side-by-side review
of this Report with our 2022 Annual
Report, which you may access either KALIKASAN KALINGA KASAGANAHAN
through SMC’s company website at
https://www.sanmiguel.com.ph/
annual-reports or the above QR code.
 ABOUT THE REPORT
At San Miguel Corporation (SMC), we REPORTING STANDARDS
believe that purpose-driven investments
Our approach in the preparation and
will ultimately deliver higher and more presentation of this Report was based on the
sustainable returns. following frameworks.

The Philippine Securities and Exchange

Our 2022 Sustainability Report contains Commission
information on the environmental, social, and We prepared this Report in compliance with the
governance (ESG) performance topics identified Philippine Securities and Exchange Commission
as material to SMC’s business and stakeholders. Memorandum Circular No. 4 Series of 2019,
All the information provided in this Report entitled “Sustainability Reporting Guidelines
covers SMC and its selected subsidiaries from for Publicly Listed Companies.” The reporting
January 1 to December 31, 2022. requirements include the impacts, risks,
opportunities, and management approach for
SCOPE AND COVERAGE material ESG topics.

With a team of sustainability champions Global Reporting Initiative (GRI) Standards

across the San Miguel Group, we developed We provided SMC’s disclosures and information
a standardized data collection template and in reference to the GRI Reporting Standards. We
monitoring process to facilitate more efficient ensured that the data presented in this Report
data collection and consolidation for SMC. This meet the following GRI Reporting Principles:
Report covers the ESG data of the following key
business groups: • Accuracy: We ensured that the qualitative
• Food and beverage and quantitative information provided in this
• Packaging Report is consistent with all available data.
2 • Fuel and oil • Balance: We provided a fair and unbiased
• Energy representation of SMC’s negative and positive
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• Infrastructure impacts.
• Cement • Clarity: We presented clear information, so
• Others (as specified in “Our Businesses” it is easily understood by readers who have
section of the Report) reasonable knowledge of SMC.
• Comparability: We outlined information to
The subsidiaries included in this Report were enable SMC and other readers to assess the
selected based on their scale of operations and Company’s disclosures against our goals and
SMC’s ownership interest or level of control. targets. We also laid out information so it
SMC has majority ownership and operational can be easily assessed and benchmarked by
control over the included entities. Please refer external parties as part of rating activities,
to the Appendices for a complete list of the investment decisions, or advocacy programs.
subsidiaries covered by this Report.
• Completeness: We ensured to include all
sufficient information on SMC’s present
activities, events, and impacts for the
reporting period.

We provided a GRI content index in the

Appendices to help readers navigate the
disclosures and information in this Report.

Sustainability Accounting Standards

Board (SASB) Standards
We were guided by reporting principles in
the SASB Standards and integrated globally
applicable and sector-specific disclosures into
our core communications. We based our SASB
recommended disclosures on the following
industry standards: SASB Containers and
Packaging Standard, SASB Alcoholic Beverage
Standard, and SASB Processed Foods Standard.

We provided a SASB index in the Appendices

to easily reference SMC’s financial material
sustainability information.

We do not have any restatement of information

in the reporting period.
3
CONTACT INFORMATION

SUSTAINABILITY REPORT 2022

We value your comments and insights. Please
address your feedback on this Report and any
inquiries on SMC’s sustainability initiatives to:

Corporate Sustainability Office

SMC Corporate Head Office
40 San Miguel Avenue, Mandaluyong City
1550 Metro Manila, Philippines
Telephone: (632) 8 632 3974
SAN MIGUEL CORPORATION

Email: [email protected]
 4
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RAMON S. ANG
President and Chief Executive Officer
MESSAGE FROM THE
PRESIDENT AND CEO
Every day, we endeavor to serve our country The following are our four main targets:
and communities guided by the vision of a a. Establish a circular economy approach by
brighter and more inclusive future. This has 2040;
always been at the heart of what we do as a b. Net zero by 2050;
company and this Report is an affirmation of the c. At least 15 million people uplifted by 2030;
role our company plays in wider society and in and
the lives of many Filipinos. It will also hold us to d. A fully sustainable and ethical supply chain by
greater account. 2040

Together with PricewaterhouseCoopers (PwC), Not only will these targets and activities help
our external advisor, we have developed a us collectively deliver change, but they will also
series of bold sustainability goals and specific help measure the impact of our initiatives.
targets that offer a common starting point
and language to help us focus our efforts and On the one hand, we recognize that this is about
resources. These targets draw on new and optimizing business to be more successful in
existing social and environmental models to the long run. But more importantly, it is about 5
deliver economic value for SMC while upholding understanding and articulating a purpose

SUSTAINABILITY REPORT 2022

our responsibilities as good corporate citizens. beyond profit.

In 2022, we mapped out areas of impact As one of the nation’s largest, most diversified
and material topics most important to our conglomerates with revenues equivalent to
stakeholders, customers, our local communities, more than 7% of the Philippines’ GDP (Gross
and our business. We have also made an Domestic Product), San Miguel has an enormous
inventory of internal processes; a good impact on the national economy and its host
number of which are already best practice in communities—from the people it employs, and
sustainability, but many can still be improved. the downstream business it generates. We play
SAN MIGUEL CORPORATION

a critical role in regional and local economies

Categorizing our operations alongside ESG across the country, supporting thousands of jobs
issues is crucial to responsibly harness in every region. For every peso in profit created
San Miguel’s size and influence for good. by San Miguel, that peso generates at least an
additional 2.50 PhP for the larger economy. And
for every billion pesos we invest, San Miguel
creates at least 1,000 additional jobs.
 As a company, we have always taken an active
role in solving societal issues. Our 14 billion PhP
pandemic response, for instance, is just one of
the many ways we put our purpose into practice.

When you combine the impact of our more than We have always put our shoulder to the wheel
100 facilities throughout the Asia-Pacific, with in improving our operations, directing our
the contribution from our supply chain and efforts towards energy and water efficiency,
hundreds of business partners in the Philippines rethinking supply chains, and transforming
alone, and some 200 billion PhP spent in business models. While we have always
domestic procurement costs, it is staggering to known that these kinds of improvements have
think of our reach. the potential to drive competitive advantage,
innovation, and revenue growth, sustainability
As a company, we have always taken an active will demand we merge our core values and
role in solving societal issues. Our 14 billion financial goals into a single corporate strategy.
PhP pandemic response, for instance, is just
one of the many ways we put our purpose into We need to anticipate how the climate crisis
practice. Certainly, our social responsibility will directly affect our business. We will
model goes beyond simply aligning our need to build more climate-resilient business
philanthropy with business objectives or operations, adopt more aggressive energy
creating flagship Corporate Social Responsibility transition strategies, and find effective solutions
(CSR) programs in relevant stakeholder areas. that can—among others—help reduce our
Over 110,700 have benefited from our outreach carbon footprint.
efforts in 2022, with at least 7,150 members
of our Better World communities receiving While we have a long way to go, our four goals
6 almost daily support regarding access to food, and sustainability roadmap will define for San
healthcare, or training and learning programs. Miguel a way forward in a world where supplies
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of basic needs like water and energy are limited

Our very businesses are the best examples of and where far too many Filipinos live below the
corporate citizenry and civic responsibility in poverty line.
action. If you look at the roads and expressways
we have built, the power plants, and the This Report sets out the different ways
facilities we have put up across the country, San Miguel’s economic and social impacts are
you will see that San Miguel is an enabler of helping businesses and communities across
prosperity. Where we have led the way—in the Philippines and how we are pushing the
various parts of the country—we have opened envelope in areas where our company can
opportunities and stimulated local economies. create the most meaningful difference. For all
of our San Miguel employees, it offers us a
framework for understanding our weaknesses
and strengths as a company, providing a guide
for relevant, urgent action.
Our four goals and
sustainability roadmap will
define for San Miguel a way
forward in a world where
supplies of basic needs
like water and energy are
limited and where far too
many Filipinos live below
the poverty line.

SUSTAINABILITY REPORT 2022

SAN MIGUEL CORPORATION
 SMC has a portfolio of companies
interwoven into the economic fabric of
the Philippines, benefiting from, and
contributing to the development and
economic progress of the nation.

8
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ABOUT SAN MIGUEL CORPORATION
San Miguel Corporation together with its networks in the Philippines. Its Beer and Non-
subsidiaries (collectively with the Company Alcoholic Beverages (NAB) Division operates
referred to as “SMC”), is one of the largest more than 50 sales offices, has partnerships
and most diversified conglomerates in the with close to 500 dealers, and has a presence
Philippines by revenues and total assets, with in about 500,000 outlets. Meanwhile, its Spirits
sales equivalent to approximately 7.6% of the Division operates 16 sales offices situated
Philippine GDP in 2022, based on data from strategically across the Philippines and
its consolidated revenues for the year, divided coordinates with a network of 92 dealer sites
by country’s total revenue, sourced from covering around 156,000 outlets. On the other
the Philippine Statistics Authority. Originally hand, the Food Division offers products through
founded in 1890 as a single-product brewery in approximately 178,000 points of sale and has
the Philippines, SMC now has six key business partnerships with over 800 dealers, distributors,
groups, most of which are market leaders in and food service clients all over the country.
their respective industries, namely: (1) food
and beverage; (2) packaging; (3) fuel and oil; Since adopting its business diversification
(4) energy; (5) infrastructure; and (6) cement. program in 2007, SMC has channeled its
In addition, SMC has investments in other resources into what it believes are attractive
businesses, such as property development growth sectors, which are aligned with the
and leasing, shipping & lighterage, logistics development and growth of the Philippine
services, information technology, car economy. SMC believes that continuing this
distributorship, and banking services. strategy and pursuing growth plans within
each business will achieve a more diverse
SMC has a portfolio of companies interwoven mix of sales and operating income and will
into the economic fabric of the Philippines, better position SMC to access capital, take
benefiting from, and contributing to, the advantage of different growth opportunities and
development and economic progress of the mitigate the impact of economic downturns and 9
nation. business cycles.

SMC, through its subsidiaries and affiliates, has SMC is listed on the Philippine Stock Exchange SUSTAINABILITY REPORT 2022
become a market leader in its businesses in (PSE Ticker: SMC) including their publicly
the Philippines with an extensive portfolio of listed subsidiaries San Miguel Food and
products that include beer, spirits, non-alcoholic Beverage, Inc., Ginebra San Miguel Inc., and
beverages, poultry, animal feeds, flour, fresh Petron Corporation.
and processed meats, dairy products, coffee,
various packaging products, a full range of SMC is headquartered in the San Miguel
refined petroleum products and cement. In Corporation Head Office Complex, 40 San Miguel
SAN MIGUEL CORPORATION

addition, SMC contributes to the growth of Avenue, 1550 Mandaluyong City 1550, and has
downstream industries and sustains a network operations in more than 100 major facilities in
of hundreds of third-party suppliers. the Philippines, Southeast Asia, China, Australia,
and New Zealand.
SMC’s Food and Beverage Division has one of
the largest and most extensive distribution
 OUR BUSINESSES
Food and Beverage The Beer and NAB Division operates seven
production facilities that are strategically
San Miguel Food and Beverage Inc. (SMFB) is
located across the Philippines. International
a leading food and beverage company in the
operations are conducted through SMB’s
Philippines. SMFB has three primary operating
wholly owned subsidiary, San Miguel Brewing
divisions—(i) Beer and NAB, (ii) Spirits, and (iii)
International Limited, which in turn has
Food. SMFB operates its beverage business
production facilities located in five sites outside
through San Miguel Brewery, Inc. (SMB) and its
the Philippines (one production facility each
subsidiaries, and Ginebra San Miguel Inc. (GSMI)
in China, Hong Kong, Indonesia, Thailand, and
and its subsidiaries. The food business under
Vietnam). In addition to producing the core San
San Miguel Foods (SMF) is operated through
Miguel beer brands marketed internationally,
several key subsidiaries, including San Miguel
the international operations also produce
Foods, Inc., Magnolia Inc., The Purefoods-
Anker and Dragon, which are its local brands
Hormel Company, Inc., and San Miguel Mills, Inc.
in Indonesia and China, respectively. Beer
SMFB serves the Philippine archipelago through
products are exported to more than 70 countries
an extensive distribution and dealer network
and territories across the globe. Third-party
and exports its products to almost 70 markets
service providers transport the products
worldwide.
produced from these production facilities to
customers, consisting of dealers, wholesalers,
retail chains, or outlets, depending on the
market.

10 Beer and NAB Division

The Beer and NAB Division is the largest
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producer of beer in terms of both sales and

volume in the Philippines, offering a wide array
Spirits Division
of beer products across various segments and
Through GSMI, the Spirits Division is a leading
markets. Top beer brands in the Philippines
spirits producer in the Philippines and the
include San Miguel Pale Pilsen, Red Horse, San
largest gin producer internationally by volume,
Mig Light, Gold Eagle, and San Miguel Flavored
according to GlobalData as of 2020. GSMI
Beer. The Beer and NAB Division also produces
produces some of the most recognizable spirits
non-alcoholic beverages such as ready-to-drink
in the Philippine market, including gin, Chinese
tea, ready-to-drink juice, and carbonates. Its
wine, brandy, vodka, and rum. GSMI operates
flagship brand, San Miguel Pale Pilsen, has a
one distillery and five bottling plants.
history of over 132 years and was first produced
by La Fabrica de Cerveza de San Miguel, which
Spirits products are also exported primarily to
started as a single brewery producing a single
markets with a high concentration of Filipino
product in 1890 and has evolved through the
communities such as the United Arab Emirates,
years to become the diversified conglomerate
Taiwan, Macau, the United States, Korea, and
that is SMC.
India. It also produces certain brands that are
for export only, which include Ginebra San
Miguel Premium Gin Black, Añejo Rum 5 Years,
and Tondeña Manila Rum.

Packaging

The packaging business is a total packaging

solutions business servicing many of the leading
Food Division food, pharmaceutical, chemical, beverages,
The Food Division holds market-leading spirits, and personal care manufacturers in the
positions in many key food product categories region. It is comprised of San Miguel Yamamura
in the Philippines and offers a broad range Packaging Corporation (SMYPC) and its
of high-quality food products and services subsidiaries (San Miguel Yamamura Fuso Molds
to household, institutional, and foodservice Corporation, Can Asia Inc., and Wine Brothers
customers. The Food Division has some of the Philippines Corporation), San Miguel Yamamura
most recognizable brands in the Philippine food Packaging International Ltd and its subsidiaries,
industry, including Magnolia for chicken, ice and Mindanao Corrugated Fiberboard Corp
cream and dairy products, Monterey for fresh (collectively, the “Packaging Group”).
and marinated meats, Purefoods and Purefoods
Tender Juicy for refrigerated processed meats The Packaging Group has one of the largest
and canned meats, Veega for plant-based food, packaging operations in the Philippines,
Star and Dari Crème for margarine, San Mig producing glass containers, metal crowns and
Coffee for coffee, and B-MEG for animal feeds. caps, plastic crates, pallets and other plastic 11
packaging, aluminum cans, paper cartons,
The breadth of the Food Division ranges from

SUSTAINABILITY REPORT 2022

flexibles packaging, and other packaging
branded value-added refrigerated meats and products and services such as beverage toll
canned meats, ready-to-eat cooked meals, filling for aluminum cans, PET and glass bottles
seafood, plant-based protein, butter, margarine, as well as logistics services.
cheese, milk, ice cream, flour mixes (“Prepared
and Packaged Food”), and to integrated feeds, It is the major source of packaging requirements
petfood and veterinary medicine products of the other businesses of SMC and supplies
(“Animal Nutrition and Health”) to poultry and packaging products to customers in the Asia-
fresh meats (“Protein”) as well as flour milling, Pacific region, U.S., and Australasia, as well as
grain terminal handling, foodservice, and
SAN MIGUEL CORPORATION

major multinational corporations across the

international operations (“Others”). Philippines, including Coca Cola Beverages
Philippines, Inc., Nestle Philippines and Pepsi
Cola Products Philippines, Inc.
 The Packaging Group owns and operates three engaged in distribution and retail electricity
glass plants, one glass and plastics mold plant, services and has various power projects in the
four metal packaging plants, two plastics pipeline.
packaging plants, one beverage filling plant,
one composite plant, and one paper plant. The SMGP has a portfolio that includes some of
plants are strategically located throughout the newest and largest power plants in the
the Philippines. It also has 18 international Philippines. The baseload and peaking plants
packaging companies, located in China (glass, with diversified fuel sources of SMGP allow it
plastic, paper, and trading of packaging to manage costs and offer more competitive
products), Vietnam (glass and metal), Malaysia baseload power rates. In addition, SMGP also
(composite, plastic films, woven bags, and has capacity from its BESS facilities, which
radiant/thermal liners), Australia (trading of can provide more efficient ancillary services,
packaging products, plastic manufacturing, and has synergistic effects with renewable
wine closures, wine filling facilities, retail/ technologies, among other applications. BESS
online packaging, cargo protection, and technologies can strengthen the stability of a
materials handling) and New Zealand (plastic grid, while improving power quality.
manufacturing and trading).
As of December 31, 2022, the major power
assets of SMGP consist of the Sual Power Plant,
San Roque Power Plant, Angat Hydroelectric
Power Plant, Limay Greenfield Power Plant,
Davao Greenfield Power Plant, Masinloc Power
Plant (with the Masinloc BESS), and the Ilijan
Power Plant, which was turned over to SMGP
after the expiration of its Independent Power
Producer Agreement on June 3, 2022.

Power generated by the Sual Power Plant,

Energy Ilijan Power Plant, Limay Greenfield Power
Plant, Davao Greenfield Power Plant, and
San Miguel Global Power Holdings Corp. Masinloc Power Plant, is primarily used
(SMGP), together with its subsidiaries, as baseload supply, and sold to customers
12
associates, and joint ventures, is one of the pursuant to bilateral offtake agreements.
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largest power companies in the Philippines, Power generated by the San Roque Power
controlling 4,719 MW of combined capacity Plant and the Angat Hydroelectric Power Plant
as of December 31, 2022. SMGP benefits is used as peaking supply and sold through
from a diversified power portfolio, including the Wholesale Electricity Spot Market or as
natural gas, coal, and renewable energy such replacement power to affiliates. The entire
as hydroelectric power and Battery Energy capacity of the 10 MWh Masinloc BESS and the
Storage Systems (BESS). Based on the total 20 MWh Kabankalan BESS are contracted to the
installed generating capacities reported in National Grid Corporation of the Philippines and
Energy Regulatory Commission Resolution on provide regulating reserve ancillary services
Grid Market Share Limitation, SMGP’s combined to the Luzon Grid under an Ancillary Services
installed capacity comprises approximately Procurement Agreement.
19% of the National Grid, 26% of the Luzon Grid,
and 7% of the Mindanao Grid, in each case, as
of December 31, 2022. In addition, SMGP is
 Through its extensive network of some 1,900
retail service stations in the Philippines (as of
Dec. 31, 2022), Petron sells gasoline, diesel,
and kerosene to motorists and to the public
transport sector. Its LPG brands, Petron Gasul
and Fiesta Gas, are also available at these
service stations as well as from a nationwide
network of 1,500 LPG branch stores. Meanwhile,
Petron’s Lubes distribution network includes
47 car care centers, more than 350 active lube
Fuel and Oil bays, and around 840 service stations selling
lubes.
SMC operates its fuel and oil business through
Petron Corporation (Petron), the largest
integrated oil refining and marketing company
in the Philippines and is a strong third player in
the Malaysian market. Petron has a combined
refining capacity of 268,000 barrels per day and
refines crude oil, and markets and distributes
refined petroleum products in the Philippines
and Malaysia. Petron operates the only refinery
in the Philippines. Located in Bataan province,
the Limay Refinery is one of the most modern in
the region. It has a crude oil distillation capacity Infrastructure
of 180,000 barrels per day, processing crude oil
into a range of petroleum products, including The infrastructure business, conducted through
gasoline, diesel, LPG, jet fuel, kerosene, naphtha, San Miguel Holdings Corporation (SMHC),
and petrochemical feedstock such as benzene, consists of investments in companies that hold
toluene, mixed xylene, and propylene. long-term concessions in the infrastructure
sector in the Philippines. Currently operating
From the Limay Refinery, Petron moves its toll roads include the South Luzon Expressway
products, mainly by sea, to terminals and (SLEX), Skyway Stages 1, 2 and 3, Southern
13
airport installations situated throughout the Tagalog Arterial Road (STAR), Tarlac-

SUSTAINABILITY REPORT 2022

Philippines, representing the most extensive Pangasinan-La Union Expressway (TPLEX), and
distribution network for petroleum products NAIA Expressway (NAIAx). Ongoing projects
in the Philippines. The network comprises 13 include Skyway 4, SLEX-TR4, SLEX-TR5, Pasig
terminals in Luzon, seven (7) in the Visayas River Expressway (PAREX), MRT-7, Northern
and eight (8) in Mindanao, as well as four (4) Access Link Expressway (NALEX), Southern
airport installations in Luzon, five (5) airport Access Link Expressway (SALEX), and New
installations in Visayas and three (3) airport Manila International Airport (NMIA). SMHC
installations in Mindanao. Through this also operates and is currently expanding the
nationwide network, Petron supplies its various Boracay Airport and has investments in Manila
North Harbour Phil. Inc., the concessionaire
SAN MIGUEL CORPORATION

petroleum products such as gasoline, diesel,

and LPG to its customers. Petron also supplies of the domestic terminal North Port of the
jet fuel to international and domestic carriers at Manila North Harbour, and Luzon Clean Water
key airports in the Philippines. Development Corporation (LCWDC) for the
Bulacan Bulk Water Supply Project.
 NCC is a holder of a Mineral Production Sharing
Agreement (MPSA) granting it the rights to
a total of 630.50 hectares of land in Sison,
Pangasinan as a source of raw materials
for its plant, with an estimated limestone
deposit of approximately 715 million MT. The
extensive limestone deposits provide ample
supply to support the company’s raw material
requirements in the long term, covering both
the current operations and expansion plans.
Cement
ECC is the 3rd largest cement player in the
The cement business is conducted under San Philippines and owns a large cement plant with
Miguel Equity Investment Inc. (SMEII), which 3 integrated production lines, a grinding plant
owns 100% of the common stock of Northern and a limestone pulverizing plant. Through 4
Cement Corporation (NCC) and 99.96% of Eagle distribution centers, it serves 18 distribution
Cement Corporation (ECC) as of end December areas across 5 Luzon regions. It is vertically
2022. SMC owns 100% of SMEII. integrated with strategic locations and on-site
quarries that provide access to raw material
The NCC Plant is strategically located in reserves. It has 3,163 million MT of measured
the Province of Pangasinan that allows it to and indicated reserves and inferred resources
readily serve key markets in Northern Luzon, of limestone and other minerals, and 2,896
specifically in Pangasinan, Ilocos, La Union hectares of MPSA coverage, that can serve
and the Cordillera Administrative Region. Its operations for over 100 years.
location likewise provides a positive outlook on
the expansion of its market areas in Regions ECC’s ESG data is not yet included in this report
2 and 3. These, together with its reliable as its acquisition was completed at the end of
and established dealership network, provide 2022.
a significant competitive advantage in the
distribution of cement in the key markets in its Others
covered areas.
14
NCC distributes most of its cement products
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through its qualified and accredited dealers

that transport the cement products from the
plant to various destinations. The rest of the
cement products are directly delivered to end
consumers through bulk carriers managed
by NCC. This enables NCC to distribute to the
highest value and fastest growing markets,
particularly in Northern Luzon.
Real Estate
The end-to-end business model of NCC has Established in 1990 as the corporate real estate
enabled it to manage cost and margins in every arm of SMC, San Miguel Properties Inc. (SMPI)
stage of the cement production and distribution is aiming to be one of the major players in the
process, allowing for higher efficiency, property development sector of the country.
profitability, and operating synergy. SMPI is 99.97% owned by SMC and is primarily
engaged in the management, development, sale,
and lease of conglomerate’s real estate assets. BankCom’s ESG data is not yet included in
SMPI offers a diverse portfolio of mid-range this report, being an affiliate of SMC whose
homes and prime lots and is expanding into the performance is not consolidated with the Group.
high-end market with its foray into townhouse
developments and the hospitality segment
through Makati Diamond Residences.

Logistics
SMC Shipping and Lighterage Inc. (SMCSL) is
a subsidiary of SMC that is primarily engaged
Banking in shipping, cargo handling, warehousing, and
Bank of Commerce (BankCom), an affiliate trucking services for other businesses within
of SMC, is one of the country’s fast-growing the SMC Group.
commercial banks and is licensed by the
Bangko Sentral ng Pilipinas. The Bank has San Miguel Integrated Logistics Services,
been operating since 1963. BankCom provides Inc. (SMILSI) is another SMC subsidiary
innovative banking solutions and a complete providing logistics management services to
range of products and services in deposit, other businesses in the SMC Group. Utilizing
commercial loans, credit card services, both company-owned and leased storage
consumer banking, transaction banking, facilities, transport units and material handling
corporate banking, treasury, asset management, equipment, SMILSI provides integrated
trust, and investments. In terms of service planning, coordination, operations, and
reach, BankCom has retail and corporate maintenance services related to shipping,
internet banking facilities, 140 branches and 259 warehousing, and trucking activities, as well
automated teller machines strategically located as customs brokerage and port operations
15
nationwide as of December 31, 2022. services.

SUSTAINABILITY REPORT 2022

On March 31, 2022, BankCom completed its
initial public offering and successfully listed in
the PSE. On November 2, 2022, BankCom has
been conferred the authority to operate as the
latest universal bank in the Philippines. As a
universal bank, BankCom will strengthen its
presence in the domestic market and deepen
its relationship with clients through a broader
range of financial solutions by being able to
SAN MIGUEL CORPORATION

generate and warehouse interest-bearing assets

such as marketable securities and offer more
investment banking products and services.
 Information Technology Cars and Motorcycles
Established in 1999, San Miguel Information SMC Asia Car Distributors Corp. (SMCACDC)
Technology Services, Inc. (SMITS) is one of the was established in 2017. Its primary purpose is
leading Information Technology (IT) companies to import, buy, sell, and distribute all other kinds
in the Philippines today and is responsible of motor vehicles and means of transportation,
for managing the IT operations of SMC. The as well as spare parts, accessories, tires, tubes,
organization employs over 500 IT professionals batteries and other supplies, materials and
and business process experts, offering IT appliances used in motor vehicles. SMCACDC
consulting, implementation and support is currently the sole importer and distributor of
services to the San Miguel Group and non-San BMW vehicles, spare parts, and accessories in
Miguel clients. SMITS stands on four pillars the Philippines. The Company is a 65%-owned
to provide clients a more holistic approach to subsidiary of SMC.
digital innovation:

- Enterprise Applications, including SAP;

- Emerging Technologies, including developing
client or business-specific solutions;
- Infrastructure Management Services for all IT
facilities; and
- Business Process Outsourcing (BPO)
Services.
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OUR AWARDS AND RECOGNITIONS
2022 Presidential Mining Environmental Award
– Titanium Achievement Award for Quarry
Operator Category, Northern Cement Corporation

Consistently recognized as a Top Taxpayer in the

Local Government Units (LGUs) where we operate
and by the government’s revenue collection
agencies, in particular the Bureau of Customs

Catholic Mass Media Award for Best Digital Ad

– Ginebra San Miguel, Inc.

Special recognition by the Department of Labor Monde Selection Awards: Gold

and Employment (DOLE) as an exemplary Filipino – Ginebra San Miguel Premium Gin, Antonov
company, with malasakit for its own people (SMC) Vodka, Ginebra San Miguel, 1834 Premium
Distilled Gin, GSM Blue Light Gin, GSM Blue
Flavors Pomelo, Vino Kulafu

Monde Selection Awards: Silver

– GSM Blue Flavors Mojito, GSM Blue Flavors
Margarita

2021
The Asset ESG Corporate Awards
French Government’s Legion of Honor for
– San Miguel Corporation
Ramon S. Ang
The Asset Gold Award in Excellence in
Environmental, Social and Governance
– San Miguel Corporation
Catholic Mass Media Award for Best Digital Ad
– Ginebra San Miguel
Monde Selection Awards: Gold
– Ginebra San Miguel Premium Gin, Antonov
Vodka, Ginebra San Miguel, GSMI Blue Light Gin,
GSM Blue Flavors Pomelo, Vino Kulafu, GSM Blue 17
Flavors Mojito

SUSTAINABILITY REPORT 2022

Forbes Magazine, World’s Best Employers List
Monde Selection Awards: Silver
(SMC placed 174th out of 800 companies)
– GSM Blue Flavors Margarita
ASEAN Corporate Governance Scorecard
– Three Golden Arrows as a top-performing 2020
publicly-listed company in the Philippines given by
the Institute of Corporate Directors (SMFB) Corporate Governance Asia
– San Miguel Corporation
ASEAN Corporate Governance Scorecard 10th Asian Excellence Award – Asia’s Best in CSR
– Two Golden Arrows for commitment to excellence – San Miguel Corporation
in corporate governance given by the Institute of Catholic Mass Media Award for Best Digital Ad
SAN MIGUEL CORPORATION

Corporate Directors (Petron) – Ginebra San Miguel

Asia CEO Awards
The Asset Triple A Country Awards for
– Lifetime Contributor Award given to Ramon S.
Sustainable Finance
Ang for his leadership, contribution to the country,
– San Miguel Global Power
and the pandemic response of SMC
Alpha Southeast Asia ESG/Green Finance Awards Forbes Magazine
– San Miguel Global Power – Ramon S. Ang as one of Asia’s business leaders
who stepped up efforts to help combat COVID-19
 OUR STAKEHOLDERS

Stakeholder Engagement
As one of the largest and most diversified a sustainable enterprise boosts business
conglomerates in the Philippines, SMC owns performance and enhances shareholder value.
businesses and has investments in various
sectors that affect the everyday lives of We ensure that we are serving the needs of
the Filipino people. A significant part of our our stakeholders by constantly engaging with
sustainability philosophy revolves around them in open dialogue and in various means of
tackling pressing problems being encountered effective communication. At the same time, we
by our stakeholders and how our businesses continue to benchmark with the best practices
can contribute to solving these problems. of our peers, locally and globally, to further
At the same time, we recognize that being strengthen our ESG performance.

18
Shareholders and Investors
READY FOR TOMORROW

We view our shareholders and investors as our performance and plans and to air their
partners who support the Company’s vision and comments and questions. We engage with our
strategies, providing the capital requirements investors through one-on-one meetings, deal
that fuel the long-term business growth and non-deal roadshows, teleconferences, and
aspirations of SMC. As such, they play an email correspondences. We release PSE and
important role in SMC’s sustainable evolution Philippine Dealing & Exchange Corp. (PDEX)
and future value creation. We believe that our disclosures on a regular basis, hold quarterly
sustainability aspirations should be shaped investor briefings, and send out E-newsletters.
together with our shareholders and investors On the ESG front, SMC holds engagement
through constant feedback and open dialogue. meetings within the group and with external
parties to discuss our ESG ratings and various
To ensure open communication and initiatives we can adopt to address ESG-
transparency, we conduct monthly and quarterly related concerns. The open flow of dialogue
meetings with our Board of Directors and and exchange of information on our goals and
various Board-level committees. We hold strategies will ensure the Company is on the
annual stockholders’ meetings, a venue for right track toward more sustainable growth.
all shareholders to hear about the company’s
 Employees
We view our employees as the heart and soul of We have established succession planning
the Company, partners in realizing our Group’s programs for key positions to ensure continuity
strategy and purpose and together responsible of leadership and preservation of technical
for advancing our ESG agenda. As of 2022, SMC expertise.
had a total of 50,008 employees working in the
domestic operations of the subsidiaries covered We realize the importance of upholding labor
by this Report. laws; therefore, we endeavor to maintain good
labor relations by keeping an open line of
SMC employs qualified, skilled and experienced communication with our employees. This we do
personnel to manage our business and run our through various employee relations and internal
operations. We offer compensation and benefits communications programs, including employee
packages that are competitive within the engagement surveys, to achieve high levels of
respective industries that each business is in to employee satisfaction.
ensure adequate manning of critical positions.

Customers
We recognize our customers’ continued loyalty and harmonization of our marketing and
as a vital part of our Company’s success. We packaging efforts are of utmost importance as
view our customers as patrons at the receiving lack of these may send conflicting messages to
end of all our products and services offerings. our valued customers.
As such, we strive to produce quality products
that are affordable and services that provide the We secure trademarks and proprietary rights to
best customer care. This can only be achieved ensure that our brands are not compromised.
by keeping up with the customers’ evolving Our business units have skilled marketing and
preferences through customer satisfaction sales teams that handle customer relations
surveys, customer engagement initiatives, field and are trained in the right ways to receive and
visits and social media monitoring. respond to customer feedback. All our products
comply with standards set by the Department
We use a mix of traditional and non-traditional of Trade and Industry, Food and Drug
communication channels for our products and Administration, and other regulatory entities.
services. We aim to be present in the minds of 19
the everyday customer by means of product All these allow SMC to closely monitor and

SUSTAINABILITY REPORT 2022

marketing campaigns, social media launches, ascertain that our products maintain their
and traditional forms of advertising such as TV, quality and availability to our customers.
radio, and out-of-home advertising. Consistency

Suppliers and Vendors

We contribute to the growth of downstream audit and assessment and are screened for
industries and sustain a network of thousands business ethics, environmental, health, and
of third-party suppliers as a result of our safety compliance, and financial capability. We
SAN MIGUEL CORPORATION

extensive portfolio of products and services. also enhanced our Supplier Code of Conduct
We see our suppliers and vendors as partners to include ESG metrics. Moreover, materials
in value creation who provide us with vital and supplies requirements undergo strict
products and services that satisfy the evaluation to ensure conformity with Company
Company’s quality standards and requirements. requirements. Finally, we conduct orientations
with accredited suppliers to ensure alignment
Suppliers applying for accreditation pass with SMC’s Supplier Code of Conduct.
through our Corporate Procurement Group for
 Local Communities
Our operations span the whole Philippine the Group upheld its commitment to respect
archipelago with products available from the rights of IPs, and there were no reported
the smallest to the biggest business incidents of violations.
establishments. Our manufacturing facilities,
power plants, fuel terminals, and service Through the SMC Global Power Foundation,
stations are strategically located in many we directly work with indigenous groups in
communities around the country. the province of Zambales, particularly in the
municipalities of Palauig and Botolan. Our
We engage with the communities where we initiatives include the Biochar Community
operate, even as early as the planning stages Enterprise Development Project, where we
of our projects. For instance, we conduct an partner with the local communities to produce
extensive study covering Environment Impact and utilize biochar as an organic fertilizer that
Assessment and coordinate with LGU and enhances the survival rate of trees. This project
barangay officials through open dialogues with complements our forest rehabilitation program
the aim of building mutual trust. in the area. We also hold annual Christmas gift-
giving, and medical and dental missions in these
SMC implements programs that foster communities. In Angat, we actively engage with
harmonious working relationships with our the local indigenous population through various
host communities and LGUs. We understand livelihood, community empowerment, education,
that engaging with our communities is a long- social, and health programs — all while
term commitment that goes beyond just one- protecting the environment and the Kabayunan
off events or programs. It is about building Ancestral Domain.
meaningful relationships where we help each
other grow and succeed. Parallel to this is Petron Foundation, Inc.
(PFI), which implements the CSR initiatives of
Through San Miguel Foundation, we strive Petron for its host communities nationwide.
to connect with local communities and seek Under the banner of Fueling HOPE (Helping
mutually beneficial partnerships by providing Filipino children and youth Overcome
livelihood opportunities and education and Poverty through Education), PFI is providing
by supporting local government projects. In scholarships from elementary through college,
addition, we operate and manage community building classrooms, and actively supporting
clinics to provide residents access to urgently DepEd’s Brigada Eskwela. It also supports
20 needed health and medical services. the government’s National Greening Program
through the Puno ng Buhay reforestation
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We are also committed to protecting the rights efforts, as well as contributing to relief and
of indigenous peoples (IPs) in the areas where rehabilitation efforts in times of calamities.
we operate in coordination with the National
Institute for Indigenous Peoples. In 2022,

Government Bodies and Regulators

We have always worked closely with the Furthermore, SMC endeavors to maintain
government and our regulators—whether on diligent compliance with all relevant laws and
developmental, legal, regulatory, or legislative regulatory requirements. We conduct financial
matters—and view them as important partners and operational audits to ensure that we fulfill
in the attainment of the country’s development all requirements and aim to be at least at
goals. Our regular dialogues with them consist par with global standards and best industry
of consultation meetings, plant visits, legislative practices.
hearings, briefings, and conferences, to name
a few.
Also, we uphold and support national growth hold discussions with the government about
and progress through collaboration on projects any plans that may affect our products, such as
and initiatives through the government’s tax increases, to ensure that it will be fair and
Public-Private Partnership programs. By being acceptable to our consumers.
a partner of the government in enhancing the
country’s infrastructure and transportation As the country is moving forward from the
system along with providing stable power worst of the pandemic, we will maintain our
supply, we believe that we are contributing to good working relationship with the government
the overall economy and helping to improve to contribute to the country’s continued
people’s lives. We also closely monitor and recovery and growth.

Financial Institutions
Financial institutions are essential partners of in economic briefings, regular market
SMC in our mission to expand and grow our updates, credit update calls, and formal email
multiple businesses, with the ultimate goal correspondence.
of helping the nation prosper and progress.
They provide the funds necessary to support Financial institutions also further our
our various major undertakings. They have knowledge about the increasing importance of
been instrumental in successfully assisting sustainability in our strategies and operations.
SMC in our expansion strategy in key areas Banks would bring in their sustainability experts
of our business, particularly in infrastructure to assess our sustainable practices and give
and energy. They assist us with our funding valuable advice on how we can further improve
activities via bond deals, roadshows, project our ESG performance and ratings. Through their
financing, and loans. assistance, SMC is able to better convey our
ESG agenda and goals to our shareholders and
We consistently communicate and engage investors.
with financial institutions through participation

Media
We view the media as partners who are central key officers including our President and CEO.
in communicating our purpose to the wider The media are also invited to company events
21
community. The Company has long-standing such as annual stockholders’ meetings, the
professional relationships with the media, in inauguration of facilities and major projects,

SUSTAINABILITY REPORT 2022

which we engage and communicate SMC’s brand launches, and company-sponsored media
plans and performance, ensuring responsible trainings. While in-person gatherings were
and transparent management of issues. Press suspended for the duration of the pandemic,
briefings, conferences and interviews constitute virtual exchanges and small group meetings
regular channels of engagement with SMC with top management were held.
SAN MIGUEL CORPORATION
READY FOR TOMORROW

22
OUR APPROACH TO SUSTAINABILITY
Our Materiality Process
We are guided by the concept of materiality standards and frameworks. We identified and
in our sustainability strategic planning and selected peer companies based on similarity
reporting processes. We define materiality as in size, operations, and portfolio with SMC’s.
those topics and disclosures that embody SMC’s This provided us with a perspective of the ESG
significant economic, environmental, social, and issues deemed relevant by our global and local
governance impacts that would substantially peers. We then triangulated the results with
influence the decision-making activities of our materiality guidelines from ESG standards and
stakeholders. Our approach to materiality is in frameworks.
line with the principles of the GRI Standards,
SASB Standards, and other ESG frameworks. Afterwards, we brought the long list of material
issues to our stakeholders through a series
We conducted the materiality assessment of engagement sessions to determine which
exercise according to the following steps: ESG issues were most significant to them. This
produced a shortlist of material topics, which
We developed a long list of possible material we further prioritized through a Materiality
topics applicable to SMC through peer analysis Validation Workshop attended by SMC
and a review of globally recognized ESG management.

Topics Material to Our Business

MODERATE PRIORITY HIGH PRIORITY
1 Climate
Change Action

2 Resource
Significance of ESG material issue to SMC’s stakeholders

Management

3 Sustainable
Supply Chain
Employee Engagement, Customer Welfare
Training & Development 5 4
& Responsibility 23

SUSTAINABILITY REPORT 2022

Community 7
Engagement 6 Circular
Economy
Employee Health
& Safety 8 Business Ethics
Human Rights & 11 10 9 & Compliance
Labour Practices Biodiversity &
Ecosystems
Risk Management 12

Diversity & 15 Innovation &

Inclusion 13
14 Product Quality
Data Privacy 16 Digital
& Security Transformation
SAN MIGUEL CORPORATION

Significance of ESG material issues to SMC’s business

Economic/Governance Environmental Social

 The following ESG topics were identified launch sustainability strategies, programs, and
as being the most material to SMC and our initiatives around these high priority topics
stakeholders in 2022. The relative significance to be able to address the risks and priorities
of each of these issues were determined they present to the Group. The remaining 8
based on stakeholder survey feedback and the topics were identified as moderate priority
business units’ responses during the validation issues. These topics are already embedded in
workshop. the company’s practices or are specific only to
certain subsidiaries, rather than across all. We
The 8 high priority material topics are large continue to track and monitor data related to
focus areas of the Company for the next one these moderate priority issues.
to two years. We endeavor to create and

Top 8 High Priority ESG material issues

Ranking Material Issue Definition
1 Climate Change Action 1
Taking proactive action to build resilience to climate
change impacts across the business by incorporating
climate change risks and opportunities into decision
making
2 Resource Management2 Efficiently and sustainably managing the company’s
resources (i.e., energy, water, waste) and other materials
that are required to produce our products and services
3 Sustainable Supply Chain Managing ESG risks within the company’s supply chain
and ensuring sustainable and responsible procurement
practices
4 Customer Welfare and Managing societal expectations, ensuring a smooth
Responsibility customer experience, and listening and responding to
customer feedback. This also includes treating customers
fairly in the conduct of our business, as well as providing
them with accurate, adequate, and easily understood
information on the services they receive
5 Employee Engagement, The continued efforts of the organization to boost the
24
Training and Development performance of our employees. We aim to train and
develop employees by using an array of educational
methods and programs
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6 Circular Economy Reducing waste generation and optimizing the use of

valuable materials. Focusing on developing a circular
economy by transforming used materials into new
materials and products
7 Community Engagement Supporting community development to improve the
quality of life of people and reduce social inequality
8 Business Ethics and Includes management of risks associated with corruption,
Compliance fraud, and conflicts of interest as well as compliance with
all regulations and laws. It also extends to ensuring the
organization’s values, principles, standards, and norms
of behavior (e.g., code of conduct and code of ethics) are
developed and implemented
 Moderate Priority ESG material issues

Ranking Material Issue Definition

9 Biodiversity and The impact that the business has on biodiversity and
Ecosystems natural ecosystems (both land and ocean) and any
initiatives taken to mitigate adverse effects or restore the
natural state
10 Employee Health and Safety The ability to create and maintain a safe and healthy
workplace environment that is free of injuries, accidents,
fatalities, and illnesses
11 Human Rights and Labor Upholding human rights and labor standards in the
Practices workplace and across our supply chain, including
compliance with labor laws and internationally accepted
norms and standards such as the UN Guiding Principles
on Business and Human Rights and the International
Labor Organization (ILO)
12 Risk Management Encompasses the processes of identifying, assessing, and
controlling risks to SMC’s capital and earnings. These
risks stem from a variety of sources including financial
uncertainties, legal liabilities, technology issues, strategic
management errors, competitive moves, accidents, and
natural disasters
13 Innovation and Product Innovate, produce, and improve the quality of products
Quality and services that meet customers’ expectations. This
also includes the incorporation of ESG considerations in
the characteristics of products and services (e.g., health
and safety, and management of the life cycle impacts of
products and services)
14 Digital Transformation Using technology, such as AI and robotics, and the
evolving digital landscape to understand customer
preferences and trends to drive efficiency and value
creation
15 Diversity and Inclusion Diversity refers to a mixed and balanced representation
of workers in the organization, regarding race, gender,
25
ethnicity, religion, and other group identities; Inclusion
refers to equal opportunities for contribution and

SUSTAINABILITY REPORT 2022

influence in the workplace
16 Data Privacy and Security The management of customer data confidentiality,
mitigation of data breach risks, and protection of personal
data from unauthorized access or attacks. This includes
policies with regards to collecting data, obtaining consent,
and managing user expectations regarding how data is
used

Economic/Governance Environmental Social

1 Merged GHG Emissions and Climate Change Resiliency
2 Merged Water Security and Energy Management
SAN MIGUEL CORPORATION

Note: Economic performance is not included in the list, as this is thoroughly discussed in our 2022 Annual Report

As we advance in our sustainability endeavor, we will engage our external stakeholders in more
extensive materiality discussions.
 Our ESG Data Collection and Validation Process
We commit to complete transparency and
accountability for our ESG actions and
disclosures to our many stakeholders. We We commit to complete
adhere to global standards and ensure that
the data disclosed in this Report are accurate, transparency and
balanced, and complete.
accountability for
With the support of our external adviser, PwC, our ESG actions and
we developed a comprehensive, standardized
data template to capture pertinent data disclosures to our many
and disclosures on our material ESG topics
from our various subsidiaries. The data stakeholders.
template integrates standards, principles, and
requirements from various frameworks, such
as the SEC requirements, GRI Standards, SASB
Standards, the Task Force for Carbon Related
reviewing, analyzing, and consolidating the
Disclosure (TCFD) Framework, and the Carbon
data submitted by the various business
Disclosure Project Framework. We also created
units. Working alongside the Corporate
a supporting template to focus more on and
Sustainability Office were key representatives
capture detailed data on our environmental
from the Corporate Affairs Office, Corporate
performance.
Human Resources, Corporate Finance, Office
of the General Counsel, and the San Miguel
We also conducted workshops with the
Foundation, together forming the SMC
sustainability teams of the different
Sustainability Core Team. With a more extensive
subsidiaries included in this Report to facilitate
knowledge and understanding of the Group’s
a collaborative approach in the data template
activities, the Core Team ensured that the
development process. This allowed us to fully
submitted data were complete and of sufficient
capture nuances in various industries where
quality before the final consolidated data were
SMC is present and adjust the templates
utilized as the basis of our core communications
accordingly.
in this Report.
26
Data Collection Process
READY FOR TOMORROW

With the insights gained from writing this

Report, we have plans to make improvements
The sustainability teams of our subsidiaries
to our future Sustainability Reports. Plans
were responsible for distributing the data
are in place to enhance and automate our
templates to their respective business units,
data collection and validation processes and
as well as for collecting, verifying, and
to utilize data analytics to identify risks and
consolidating the data before submission to the
opportunities more effectively. By the end of
SMC parent company.
2025, we look forward to obtaining external
assurance on our ESG data and other non-
The Corporate Sustainability Office of the
financial metrics.
parent company was responsible for collecting,
OUR SUSTAINABILITY
GOVERNANCE STRUCTURE
To ensure that we have strong oversight and execution of our sustainability agenda, we have put
in place a robust sustainability governance structure. Our Board of Directors provides overall
direction and leadership on sustainability. Our President and CEO operationalizes our sustainability
framework through a dedicated Corporate Sustainability Office. Meanwhile, a Sustainability Working
Team, composed of sustainability champions across our various business units, is responsible for
implementing our sustainability strategies and programs throughout our different subsidiaries.

Furthermore, we will establish a stand-alone Board Sustainability Committee in the Third Quarter
of 2023 to oversee and provide guidance on the Group’s sustainability strategies and practices. The
Sustainability Committee will be responsible for reviewing and evaluating the Group’s ESG risks and
opportunities, as well as ensuring that the Group’s sustainability initiatives align with our long-term
business strategies.

Our sustainability governance structure plays a critical role in making sure that San Miguel
is pursuing a sustainable business model and making a positive impact on society and the
environment.

The Board of Directors provides overall direction and oversight on

BOARD OF DIRECTORS the entire Group’s sustainability agenda. It ensures integration of ESG
components into SMC’s overall business strategy, operations, risk
management, and culture.

The Board Sustainability Committee is the Board-appointed, stand-alone

BOARD SUSTAINABILITY
COMMITTEE committee that oversees the development of the Group’s sustainability
strategies and the execution of programs and monitors the Group’s ESG
performance.

27
The President and CEO is the highest management-level position mandated
PRESIDENT & CEO
to lead the successful implementation of SMC’s sustainability agenda,

SUSTAINABILITY REPORT 2022

including the management of climate change impacts.

The Chief Sustainability Officer supports the President and CEO in

CHIEF SUSTAINABILITY developing SMC’s overall ESG strategy, direction, and action plan, including
OFFICER the setting of ESG targets and the monitoring of ESG performance for
the Group.

The Corporate Sustainability Office is the dedicated unit responsible for

CORPORATE operationalizing and embedding sustainability across the Group and for
SAN MIGUEL CORPORATION

SUSTAINABILITY OFFICE the successful delivery of ESG programs and initiatives, as well as the
measurement and reporting of ESG progress, among others.

The Sustainability Working Team is composed of sustainability champions

SUSTAINABILITY
WORKING TEAM (SWT)
from the different business units (BUs) within SMC and is responsible
IN EACH BU for implementing sustainability strategies and initiatives in their
respective BUs.
 SUSTAINABILITY AT A GLANCE

ECONOMIC ENVIRONMENT
P1,516B+ 563MW
Direct economic
value generated Renewable energy
investments in hydro power

P1,456B+ P1,131B+ 1,000MWhs 800MW

Economic value Operating costs
distributed (including BESS online or for Solar POV projects
payment to completion in 2023 in the pipeline
suppliers)
6.5B
P175B+ Liters 34%
Payments to Or 5.38M MT of
Fresh water saved
government in taxes materials used in
through Water for
production were
All Project
renewable
P103B+
Payments to
28
providers of capital GOVERNANCE
(investors and
READY FOR TOMORROW

shareholders) P200.5B
Or 53% of total
procurement
P45B+ budget spent
Employee wages on local
and benefits suppliers Supplier Code
of Conduct
updated to
10 incorporate ESG
P0.64B+ Corporate
governance considerations
Investments in
policies updated
communities
to integrate ESG
principles
 SOCIAL

90% P14.8B+ 90,756

Total pandemic Free COVID-19
Solid waste
response, the vaccine doses for
diverted away
largest for a employees, extended
from landfills
Philippine corporate workforce, and their
families

52% 70% 1.7:1

Coal ash
Personnel employed male to female ratio
recycled
outside NCR, in management
reflecting workforce
regional diversity

6Mn+
Trees planted 567k hours P744Mn
through Online and in-person Spend on corporate
Project 747 trainings provided to social responsibility
employees

29

7,159
SUSTAINABILITY REPORT 2022
110,740 Members served
Individuals almost daily by
benefitting from SMC’s Better World
CSR programs Communities

0
complaints
11,359 350k
concerning
SAN MIGUEL CORPORATION

Consultations in 8 Families that

breaches of gained access
customer privacy community clinics
nationwide to clean water
through Bulacan
Bulk Water Project
 OUR SUSTAINABILITY
BLUEPRINT
Sustainability has always been an integral part of our business
long before it was ever a catchword and a catalyzing force
for positive change. Reducing our impact on the environment,
fostering social inclusion, and having robust governance
practices have been thoroughly ingrained in our culture over the
decades.

For most of our 132-year history, we have referred to these

sustainable practices as part of our corporate value system of
malasakit—that uniquely Filipino value of helping others without
being prodded and without expecting anything in return. We
manifest malasakit by taking care of our host communities, doing
good by everyone we come by, taking only what we need, and
working to make life better for people.

Our efforts in the wake of the COVID-19 pandemic were guided

by malasakit. Through our “Walang Iwanan” COVID-19 response,
we mounted the largest private sector efforts to respond to the
crisis and mobilized over 14 billion PhP to help our kababayan,
especially frontliners and the poorest of communities.

Clearly, the pandemic has thrown into sharp relief the important
role we could play in uplifting the lives of our fellow Filipinos
and in helping our nation build back better. Our goal now is
to use the present crisis to leap into a future reality that is far
better than where we currently find ourselves.
30
Thus, in 2022, we embarked on a pivotal journey to advance
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and elevate our sustainability performance. We worked closely

with our Board of Directors, top management, and our various
businesses to develop an overarching sustainability blueprint
that embodies San Miguel’s purpose and values as well as its
hopes and aspirations for a brighter and more prosperous future
for all Filipinos.

This sustainability blueprint—which presents our organizational

vision and purpose together with our sustainability agenda and
targets—will be our inner compass for our sustainability journey.
It is a framework that will challenge us in what we can hope for
and keep us accountable and committed in the decades to come.
Through this blueprint, we hope to provide lasting solutions to
challenges that have long beset our communities, our country,
and the environment.
 31

SAN MIGUEL CORPORATION SUSTAINABILITY REPORT 2022

 A BLUEPRINT FOR
SAN MIGUEL

VISION
A resilient and globally-competitive Philippines
where everyone can enrich and enjoy their lives.

PURPOSE
To lead in nation-building by creating opportunities that will
uplift generations of Filipinos, enabling all to share in the
rewards of sustainable development and prosperity.

C O R P O R AT E VA L U E S
Malasakit. We do what is right. We believe in doing our best. We take
accountability for our decisions. We think innovation. We help our people
succeed. We are a good neighbor. We advocate sustainable development.

S U S TA I N A B L E AG E N DA
We envision a world of good, where our business fosters a sustainable
future that is good for the planet, good for people, and good for
progress, benefiting present and future generations of Filipinos.

32
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KALIKASAN KALINGA KASAGANAHAN

Good for Planet Good for People Good for Progress

1 Establish a circular 2 Net Zero by 2050 3 At least 15 million 4 A fully sustainable

economy approach people uplifted by and ethical supply
by 2040 2030 chain by 2040

OUR BUSINESSES
 33

SAN MIGUEL CORPORATION SUSTAINABILITY REPORT 2022

 Our Sustainability Agenda
We deeply anchor our sustainability agenda Added to these are the economic and societal
on our mandate to help in nation-building. problems that continue to beset the Philippines
as a developing nation. This makes the
As one of the Philippines’ largest and most sustainability situation in our country severely
diversified conglomerates, we strive to use challenging compared with more developed
our business as a force for good, helping to nations. Hence, what we need are thoughtful,
nuanced solutions that will truly deliver
create a better world that is not just good
meaningful and enduring impact for all Filipinos.
for a small few, but is good for everyone.
Thus, we operationalize our sustainability
In all parts of the world, people are confronted agenda under an overarching framework
with the triple threat of climate, conflict, and called A World of Good, which articulates our
COVID-19. Our country ranks first on the list commitment to create positive returns for
of global disaster risk hotspots based on the all our stakeholders and to operate for the long-
WorldRiskIndex 2022 report. Over 7 million term benefit of society, the environment, and our
Filipinos lost their livelihoods during the country.
pandemic. Domestic prices of basic commodities
and fuel continue to be affected by the
geopolitical crisis.

A WORLD OF GOOD
We envision a world of good, where our business fosters a sustainable future
that is good for the planet, good for people, and good for progress,
benefiting present and future generations of Filipinos.

K ALINGA
Good For People
We uplift the well-being
34 KALIKASAN of all the lives we touch,
Good For Planet including people within
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We protect and nurture our organization and in

the environment, our communities.
through urgent climate
action, efficient resource
management, and
a circular economy
K A SAGA N A H A N
approach.
Good For Progress
We promote inclusive
economic growth and
ensure that progress
occurs in harmony with
nature and society,
so that all may enjoy
comfortable, secure, and
prosperous lives.
Our Sustainability Targets
In 2022, we set out clear and ambitious goals
across our focus environmental, social, and
governance areas. We anchored these targets on
the United Nations Sustainable Development Goals
(UN SDGs) and identified major levers and plays
that would help us fully realize these commitments.

Our overarching goals are supported by our Board of

Directors and are envisioned over three horizons—2030
as the more urgent and interim timeline, 2040 as the
intermediate outlook, and 2050 as the long-term path to a
truly sustainable future.

We strive to meet these goals by leveraging ongoing

sustainability initiatives and by partnering with others in
exploring new, high‑impact processes and technologies.

1 2
Establish a circular economy Net Zero by 2050
approach by 2040
contributing to the following SDGs contributing to the following SDGs

35

SUSTAINABILITY REPORT 2022

3 4
At least 15 million A fully sustainable and
uplifted people by 2030 ethical supply chain by 2040
contributing to the following SDGs contributing to the following SDGs
SAN MIGUEL CORPORATION
 1
Establish a circular economy
approach by 2040
We are optimizing our resources by eliminating waste and
pollution, circulating products and materials at their highest
value, and regenerating nature.

We strive to achieve this target through the following

sustainability initiatives:

IN-PROGRESS UNDER CONSIDERATION

Recycle coal ash as an aggregate Assess the viability of using plastic

material for cement plants waste as fuel for cement plants

Sustain returnable glass bottle Evaluate feasibility of plastic roads,

system of Beer and bottle buy-back initially within company facilities
program of Ginebra
Further expand value of spent
Recycle bottles, cullets, crates, grains from brewery operations as
cartons, and plastics as input ingredients for cereals
materials in production
Scale up production of organic
Step up compliance with the Extended fertilizer from poultry manure coming
36 Producer Responsibility Law in from broiler complexes
managing plastic waste
READY FOR TOMORROW

Repurpose manufacturing by-

products (e.g., spent grain, spent
yeast, feathers, and wheat bran /
pollard) as raw materials for feeds

Reduce reliance on scarce water by

50% by 2025 against a 2016 baseline
through “Water for All” initiative

Use desalination plants to process

sea water into consumable water in
operations
 2
Net Zero by 2050

We are minimizing our greenhouse gas (GHG) emissions by

investing in clean energy technologies and carbon reduction
programs toward Net Zero.

We strive to achieve this target through the following

sustainability initiatives:

IN-PROGRESS UNDER CONSIDERATION

Operate 1,000 MWh BESS project to Pursue transition of the existing

boost grid reliability and pave the power portfolio to significantly reduce
way for more renewable energy in the GHG emissions, while balancing
grid impacts on reliability, resiliency, and
affordability of energy
Expand natural gas capacity as a
bridge to cleaner energy and invest in Explore future fuels and technologies
solar PV plants as renewable energy such as the gasification of coal into
sources hydrogen and gravity battery systems

Continue and broaden initiatives Upgrade building management

to make our coal plants the most systems and obtain LEED certification
efficient and cleanest in the industry for company facilities 37
(e.g., High Efficiency and Low

SUSTAINABILITY REPORT 2022

Emissions or HELE technology) Electrify a portion of the company’s
vehicle fleet and build charging
Expand river rehabilitation projects stations to support their power
in partnership with the Department requirements
of Natural Resources (DENR) to help
alleviate flooding and solid waste
pollution for cities and people

Maximize nature-based solutions

SAN MIGUEL CORPORATION

such as mangrove reforestation and

tree planting

Implement and enhance biodiversity

conservation projects, such as
coral reef rehabilitation and coastal
management programs
 3
At least 15 million people
uplifted by 2030
We are creating equitable and transformative pathways to
a sustainable future for our employees, our customers, our
communities, our nation, and beyond.

We strive to achieve this target through the following

sustainability initiatives:

IN-PROGRESS

Build expansive and resilient Embed and track diversity and

road infrastructure and public inclusion in all aspects of employment
transportation projects to catalyze policies
trade, investment, and national
development Continue to improve the nutritional
value of food and beverage products
Build industrial parks and ecozones
that attract investments and create Embrace digital transformation to
jobs for adjacent communities improve workplace productivity,
reduce waste, and expand customer
Provide access to potable water at access
affordable rates to municipal water
38 districts (e.g., Bulacan Bulk Water
UNDER CONSIDERATION
project)
READY FOR TOMORROW

Enhance livability of our host Establish an ESG knowledge platform

communities by: for employees for capability-building
• Creating livelihood opportunities; on sustainability

• Extending educational assistance Launch programs to help develop

and scholarship programs to more STEM (science, technology,
schools and students; and engineering, and mathematics)
• Providing food, clean water, professionals
sanitation, housing, and access to
medical services Develop the next generation of
farmers and agri-leaders
Improve overall employee health and
well-being and ensure safeguards Launch teacher training programs
to prevent workplace injuries and and offer scholarships for higher
accidents education
 4
A fully sustainable and
ethical supply chain by 2040
We are upholding sustainable best practices across our
supply chain ecosystems that will benefit current and future
generations.

We strive to achieve this target through the following

sustainability initiatives:

IN-PROGRESS NEXT STEPS

Roll out the Supplier Code of Conduct Develop an ESG training program and
and Sustainability Questionnaire conduct regular dialogues on ESG,
incorporating ESG principles, as pre- first for the top 20 suppliers by spend
requisites to supplier accreditation in each business unit in 2023, with
and registration progressive inclusion of at least 80%
of spend

Join Global Compact Network

Philippines (GCNP) to contribute to
educating micro, small, and medium
enterprises in ESG
39

SUSTAINABILITY REPORT 2022

SAN MIGUEL CORPORATION
READY FOR TOMORROW

40
 GOOD FOR PL ANET

41

SAN MIGUEL CORPORATION SUSTAINABILITY REPORT 2022

 KALIKASAN
Climate Change Action Greenhouse Gas (GHG) Emissions
When San Miguel began its transformation We place paramount importance on mitigating
journey from a food, beverage, and packaging our GHG emissions. We recognize the profound
company to a diversified conglomerate with impacts that emissions from our businesses and
investments in fuel, power and infrastructure, operations have on climate change adaptation
the stimulus was the need to propel the and mitigation. As a result, we have embarked
country’s economic growth by providing on a pivotal journey to significantly reduce our
greater access to energy resources and an GHG emissions to Net Zero by 2050.
infrastructure that allowed industries to be
more competitive. The transformation generated An indispensable step toward achieving this
a larger environmental footprint with the use goal is to accurately measure our emissions
of fossil fuels and the development of parcels in line with globally accepted GHG accounting
of land into infrastructure projects, alongside and reporting standards. Thus, we use the
increased water and raw material usage and GHG Protocol—the most comprehensive global
waste generation. standardized framework to measure GHG
emissions, developed by the World Resources
Cognizant of the huge responsibility we have Institute and the World Business Council for
taken on, San Miguel is committing to twin Sustainable Development—to account for and
goals in relation to the environment. First, we manage emissions across all activities in our
aim to establish a Circular Economy Approach Group.
42 by 2040, ensuring that more of the waste we
generate is reused, recycled, or repurposed, and
READY FOR TOMORROW

increasing the component of recycled materials GHG EMISSION INTENSITY

15.8
used in our production processes. Second, in
response to the urgent global call to cut carbon
emissions, we align to the goal of Net Zero by
MT CO2e/Mn PhP
2050. This is not a commitment made lightly as
we consider the balance between the need for
more accessible and affordable energy and the In 2022, our GHG emissions intensity—or the
viability and reliability of clean energy sources. amount of GHG emissions that we generate
for every peso of our sales—is 15.81 MT CO2e/
Following are the baseline data on our Mn PhP. Our Power, Oil and Fuel, and Cement
environmental footprint and the ongoing and businesses are the largest contributors to our
planned initiatives to forge ahead toward our emissions intensity. Our aim is to reduce our
goals. emissions intensity by decoupling our business
growth from the growth in our emissions. This
we will do by employing low carbon solutions
 KALIKASAN

and initiatives across our various businesses In February and August 2022, we obtained a
and operations. Certificate of Registration from the DOE as a
renewable energy (RE) developer for a solar
Our power business is one of the major project located in Bataan and have entered into
contributors to our nation’s economic a Solar Energy Operating Contract (221MWp)
development. The energy it supplies spurs with the DOE for the development and
the growth of thousands of businesses, operation of RE projects using solar energy as
infrastructure, and investments nationwide. a renewable source (“Bataan Solar Project”).
Cognizant of this responsibility, we uphold the The lease agreements for the property in
government’s thrust to provide reliable and Bataan and in Isabela where the solar projects
affordable energy to all Filipinos. In the same will be located have already been executed.
breath, we also support the country’s plan Currently, the Bataan Solar Project is in the pre-
to have a just transition to more renewable development stage.
sources of energy. Hence, we actively seek to
diversify our power portfolio toward cleaner Together, these initiatives serve our overarching
energy sources, while at the same time goal of minimizing emissions from our power
ensuring energy security and affordability for business.
our customers.
Meanwhile, we have been reducing our carbon
emissions in our Bataan oil refinery through
COMBINED BESS PROJECTS various initiatives, such as plant reconfiguration,

1,000
replacement of thermal power plants with
steam generating facilities, and recovery
MWh and maximized utilization of fuel gas in the
refinery. Furthermore, our Bataan refinery
and fuel product terminals have Integrated
Management Systems (IMS) certification. The
We plan to increase our 1,200 MW liquefied
IMS certification we have earned combines
natural gas (LNG) and will complete 1,000
some of the most rigorous international
MWh of combined BESS projects nationwide,
standards on environmental management
which together contribute to increasing
(ISO 14001:2015), quality management (ISO
the diversity of our portfolio. The planned
9001:2015), and occupational health and safety
expansion of our gas-fired generation capacity 43
management (ISO 45001:2018) into a single,
and BESS reflects our overall commitment to

SUSTAINABILITY REPORT 2022

comprehensive, and harmonized management
reduce our carbon emissions and support the
system. This unified approach has created
government’s climate policies and objectives,
important synergies, a stronger foundation for
including the Philippines’ Nationally Determined
our business and facilities, and has enhanced
Contributions under the Paris Agreement.
our overall sustainability and competitiveness
in the industry.
Also, we have taken crucial steps to help the
country’s transition to renewable energy. Our
In our cement business, a substantial source
combined 563 MW hydro power plant capacity
of emissions is clinker production because
is a first step toward this direction. Moreover,
of the carbon released by limestone and the
SAN MIGUEL CORPORATION

we are developing a portfolio of solar power

energy required in the process. Thus, we have
projects with an initial aggregate capacity of 800
leveraged new technologies to develop cement
MW across various sites in Luzon including the
products that have lower clinker factor but
provinces of Bataan and Isabela. The proposed
have the same concrete strength. To reduce the
solar projects will be situated in areas with
clinker component in our products, we utilize
moderate to high photovoltaic potential.
supplementary cementitious materials like
natural pozzolan and fly ash. Despite the lower
 clinker factor, our cement products still exceed
industry benchmarks and remain versatile
We will elevate our energy and economical building materials used in
conservation initiatives a wide variety of commercial and industrial
applications.
to include the expanded
To further lessen our emissions from our
use of solar and biomass cement business, we are also employing
to address our energy circularity in our operations. In 2022, our cement
plant generated 4.58 MT of plastic waste from
requirements. We will its operations and third-party contractors. To

also monitor, assess, dispose of this waste responsibly and to reduce

the plant’s reliance on traditional fuels for its
and employ new energy- operations, the plastic waste was injected at the
pyro-processing stage of cement production,
efficient processes and harnessing its useful heat for the manufacture

technologies that will of clinker. At the same time, NCC recognizes

that it can do more to reduce its dependence on
enable us to minimize our traditional fuel sources. Currently, the company
is tapping into a specific technology that would
emissions. enable a higher percentage of waste to be used
as alternative fuel in the pyro-processing stage.
By substituting traditional fuel with alternative
fuels like plastics, municipal solid waste,
rubbers, and used tires, NCC aims to cut its
traditional fuel usage by up to 50 percent.

Throughout the years, our cement business has

garnered acclaim for managing environmental
impacts and meeting the requirements set by

44
READY FOR TOMORROW
 KALIKASAN

governing agencies like the Environmental

Management Bureau (EMB) and Mines and
Geosciences Bureau. It was awarded by We uphold the
the DENR with the Presidential Mineral government’s thrust
Industry Environmental Platinum Award in
recognition of its excellent environmental and to provide reliable and
safety performance as well as its community
development programs. Our cement business affordable energy to all
also has an IMS certification, which highlights Filipinos. In the same
its dedication to responsible operations and its
commitment to meeting international standards breath, we also support
for sustainable practices.
the country’s plan to have
We are also leveraging innovation across other a just transition to more
parts of our businesses to further reduce our
GHG emissions intensity. In our Beer and Spirits renewable sources of
divisions, we recover the carbon dioxide (CO2)
from the fermentation process and purify it
energy.
for use in the manufacturing process. We sell
any excess as industrial- and food-grade CO2
to other companies. To treat wastewater, we
utilize anaerobic reactors which significantly the conversion of our lighting to LED, the
reduce our carbon emissions from pure aerobic replacement of our air-conditioning units into
treatment. Moreover, our Beer and Spirits inverter type, and the use of solar panels
businesses have long-established initiatives to for our streetlights and for our office and
recover methane from the anaerobic treatment warehouse lighting.
of wastewater and use the methane as biogas
to fire up our boilers, thereby decreasing In our Properties business, we are employing
our consumption of fuel oil. Finally, we add green business solutions to reduce our energy
limestone in our coal-fired boilers to reduce consumption. Examples of these initiatives are
GHG emissions and employ wet scrubbers the orientation of our buildings to maximize
to reduce pollution. These key programs and natural lighting and ventilation and the use of 45
initiatives embody our responsible stewardship energy-efficient systems and equipment.

SUSTAINABILITY REPORT 2022

not only toward our customers but also
toward the environment. It underscores our We will elevate our energy conservation
commitment to sustainable development, initiatives to include the expanded use of
as we have made every effort to go beyond solar and biomass to address our energy
compliance. We know there is still more to do, requirements. We will also monitor, assess,
but we believe that we are on the right path and employ new energy-efficient processes and
toward achieving our goal of Net Zero. technologies that will enable us to minimize our
emissions.
Moreover, we continue to benefit from
the energy reduction and conservation
SAN MIGUEL CORPORATION

measures we have implemented across all

our businesses. These include the creation
of energy conservation teams in each of our
business units, the inclusion of power index in
key performance indicators of our businesses,
 Non-GHG Emissions
Our power plants have
The health and safety of the people in our host
communities is top priority for San Miguel. consistently maintained
Hence, we protect the quality of the air the emissions way below the limits
residents of our host communities breathe.
set for SOx, NOx, and PM set by
Our non-GHG emissions come primarily from
our thermal power plants, oil refining plant,
the DENR and World Bank by
cement plants, and to some extent, from fuel investing in the most advanced
consumption of our boilers, cookers, vehicles,
and generators.
and efficient technologies.

Being the primary source of our non-GHG

NON-GHG EMISSIONS emissions, our thermal power plants track their
2022 Unit emissions religiously through daily emissions
Nitrogen oxides (NOx) 11,616.77 MT testing and make sure that they are well within
Sulfur oxides (SOx) 37,097.25 MT
the limits set by the DENR and the World Bank.
Particulate matter (PM) 1,127.70 MT
Our thermal power plants have consistently
maintained emissions way below the limits set
Carbon monoxide (CO) 2,515.56 MT
for SOx, NOx, and PM based on data collected
Persistent organic pollutants
(POPs) over the past several years. We have achieved
Volatile organic compounds
this by investing in the most advanced and
Not being monitored efficient technologies on the market to make our
(VOCs)
Hazardous air pollutants power plants environmentally friendly. We have
(HAPs) leveraged the following forefront technologies
for our power plants:

Technology Description
46 High Efficiency, Low Emission (HELE) Uses supercritical boilers to generate steam at higher pressure
technology and temperature. This allows more electricity to be generated per
READY FOR TOMORROW

unit of coal when compared to traditional coal power plants.

Dynamic Classifiers Used to further improve coal fineness which allows more efficient
burning of coal reducing NOx and use of lower calorific value with
lower sulfur content reducing SOx
Circulating Fluidized Bed Operates the boilers at relatively lower pressure and
temperature which results in better combustion and lower NOx
and material particulates
Limestone Injection Injected to the fuel as it goes to the boiler to further reduce SOx
and particulate matter emissions
Supercritical Boiler Provides significantly better combustion process resulting in a
much-improved head rate of coal which reduces required coal to
produce a MW of electricity. Also allows lower calorific value and
lower sulfur coal which lowers SOx emissions
Flue Gas Desulfuration Removes up to 90% of SOx and particulate matter in the flue gas
emissions
Electrostatic Precipitators Removes particulate matter such as dust and soot
Catalytic Reduction Further improves NOx emissions
Charting a imbalance in power supply has contributed to
the uneven spread of growth and development,

low-carbon
particularly in the Visayas and Mindanao regions.

Our BESS facilities will support the country’s

future
power grid by storing excess energy and injecting
47
required power within milliseconds when needed,
ensuring power quality and stability all over the

SUSTAINABILITY REPORT 2022

country.
In 2022, as the Philippines takes urgent action
to avert a looming power crisis owing to the The BESS will address one of the major limitations
impending depletion of the Malampaya gas field in of renewable energy—the intermittence of solar,
2024 and aging power plants, SMGP is expediting wind, hydropower, and other renewables. Battery
completion of its first and largest grid-scale BESS systems can support RE sources and help bring
network in the country. about more renewable investments in the future.
In the near term, we estimate the integration of up
The network consists of 32 BESS facilities to 5,000 MW of renewable power into the grid, due
strategically located in provinces nationwide, with largely to our BESS facilities.
SAN MIGUEL CORPORATION

a combined capacity of 1,000 MWh. They are part

of SMC’s aggressive medium-term goal for power As nations around the world set ambitious goals to
system decarbonization and resilience. transition to renewables, demand for these large-
scale energy storage systems will grow. BESS
Today, lack of basic access to electricity and plays a key part in making renewables more viable
the reliability of supply remain common issues for more Filipinos, and through it, San Miguel will
for millions of Filipinos. Over the decades, this lead the charge toward a cleaner energy future.
 Balancing
600 MW Limay Bataan
2000

Act
1000
700 750
247.2
4.95
Sulfur Oxides Nitrous Oxides
in mg/Ncm in mg/Ncm
SMGP maintains a diversified portfolio
500
115.97
of both traditional and renewable power
0 24.77 150 50
facilities. Even at the beginning of
Carbon Monoxide Particulate Matter
in mg/Ncm in mg/Ncm implementing our next-stage strategies
to achieve a lower carbon future—such as
300 MW Malita, Davao Occidental investing in battery storage and renewable
2000
capacities on our way to net zero by 2050—
coal power remains an indispensable
1000 resource for the Philippines in the
700 750
foreseeable future.
169.77 114.98

Sulfur Oxides Nitrous Oxides

in mg/Ncm in mg/Ncm We have long recognized the crucial
importance of balancing our developing
500
nation’s need for reliable and affordable
0 150 50
7.39 6.98
baseload energy with the need to minimize
Carbon Monoxide Particulate Matter
in mg/Ncm in mg/Ncm our environmental impact. Our approach,
particularly for coal power, has been to
335 MW Masinloc, Zambales utilize the latest technologies that can
48
2000
drastically cut harmful emissions.
READY FOR TOMORROW

1000
700 750

210.98
110.5

Sulfur Oxides Nitrous Oxides

in mg/Ncm in mg/Ncm

500
0 150 50
1.25 1.6
Carbon Monoxide Particulate Matter
in mg/Ncm in mg/Ncm

2022 Actual Results

DENR Emission Standards
World Bank Emission Standards
HELE Technology suspension by the flow of hot gases produced by
HELE technologies are a type of cutting-edge the combustion of the fuel. This creates a fluidized
coal technology designed to increase production bed resembling boiling liquid, allowing solid fuel
efficiency while lowering the GHG and non-GHG particles to move freely, promoting mixing and
emissions per amount of power generated by our heat transfer. The hot gases are then circulated
coal-fired power plants. back through the bed to maintain the fluidized
state, hence the name “circulating fluidized bed.”
It can be achieved through a supercritical, ultra-
supercritical, or advanced ultra-supercritical Improving combustion efficiency and lowering
technology that allows the power plants to run emissions of pollutants like SOx and NOx are some
at higher temperatures and pressures to bring of the main benefits of CFB. Additionally, CFBs are
about more thorough fuel combustion, resulting in a flexible and eco-friendly technology because they
increased efficiency and lower CO2 emissions. This can be easily retrofitted with scrubbers to remove
enables coal-fired power plants to use less fuel to pollutants. CFB’s operating furnace temperature
produce the same amount of energy, ultimately is between 850 and 950 degrees Celsius, which
resulting in minimized environmental impact. is just enough for complete combustion. This
means that NOx cannot be produced in the furnace
HELE technologies also encompass other because that would require furnace temperatures
advanced technologies, such as improved coal to reach 1200 to 1300 degrees Celsius. In addition,
drying and cleaning processes, advanced air limestone is injected into the system to capture the
pollution control systems that aids in lowering generated SOx as a byproduct of the combustion
sulfur and nitrogen oxide emissions, and improved process.
materials for the high-temperature components in
facilities. HELE and CFB Technologies have been critical
to minimizing the impacts that our coal power
CFB Technology facilities have on the environment. Our Limay,
Meanwhile, circulating fluidized bed (CFB) Bataan and Malita, Davao Occidental plants, with
technology, used in the combustion of solid fuels, 600 MW and 300 MW capacities, respectively,
such as coal and biomass, is another way we are CFBs. A third CFB facility built in Mariveles,
produce power in a more environment-friendly Bataan, with an installed capacity of 600 MW, is
manner. also set to come online in 2023.

In a CFB, solid fuel is introduced into a furnace In Masinloc, SMGP operates a 335 MW
with bed material, such as sand or other supercritical coal-fired power plant. Construction
particulate matter. Fans supply excess oxygen is also ongoing on another supercritical plant, 49
into the furnace so that complete combustion can which would use less fuel than the conventional

SUSTAINABILITY REPORT 2022

take place. This causes the bed material to flow power plants, for the optimum generated amount
continuously inside the furnace and be kept in of electricity.
SAN MIGUEL CORPORATION
 In other parts of our business, we utilize
electrostatic precipitators and bag filters in our Energy
glass and cement plants to minimize particulate
matter. Energy is the fuel of the modern industrial economy.
We use energy to fuel our capacity to deliver our
Moving forward, we will continue to be on services and products to the market—from operating
our plants, for transportation and distribution, and for
OPERATIONAL SPENDING
the lookout for cleaner, more efficient, and
the lights in ourON ENERGY
offices and other company facilities.

38.3%
renewable technologies to further reduce
In 2022, the Company consumed 149.3 million GJ
our non-GHG emissions and to persevere in
Resource Management energy. A sizable portion of our energy consumption
comes from the non-renewable fuel usage of Petron
and SMGP for their operations.
We recognize the realities of our finite planet.
We are determined to reduce our energy
Each year, the world marks Earth Overshoot
consumption. By doing so, we would also reduce our
Day, a date when humanity’s demand for
operational costs and our environmental impact.
ecological resources in a given year exceeds
As of 2022, approximately 38.26% of the Company’s
what Earth can generate in that year. In 2022,
operational spending is used on energy. Through
this day landed on July 28, which means that
various energy related programs, we were able to
the present generation liquidated resources
reduce our energy consumption by 103.3 thousand
meant for future generations during the
GJ of energy this year. We accomplished this by
remainder of 2022. Over the decades, the
installing solar panels in various Petron gas stations
ecological footprint of humanity has worsened,
and integrating the use of biomass in electrical
leading to World Overshoot Day coming earlier
generation in SMFB operations, among others. We are
and earlier each year, moving from December
determined to continuously find new ways to be more
25 in 1970 to July 28 last year. The goal is to
efficient in our energy consumption and increase our
move the date forward. Not doing so will exact
use of renewable energy.
a heavy toll not only from an environmental
and ecological point of view (climate change,
biodiversity loss, drought) but also socially and
economically (poverty, conflicts, wars). ENERGY INTENSITY RATIO

50
Thus, we in San Miguel join the rest of the world
in the quest to postpone this date by ensuring
129.6
GJ / Mn PhP
the effective and efficient management of our
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resources. Energy and water are two of the

most vital resources for San Miguel. They Our energy intensity for 2022 is 129.6 GJ for every
are indispensable in the successful conduct million PhP of net sales. We aim to reduce our energy
of our businesses, from power generation, intensity while continuing to maintain robust growth
food and beverage production, to packaging and development in the Company. We plan to do this
operations and infrastructure development, through employing more efficient energy technologies
among others. Energy and water are key and alternatives such as recapturing excess heat from
so we can continue to create value for all manufacturing and implementing renewable energy
our stakeholders and to contribute to the sources, such as solar power, biomass, and bioenergy,
growth of the Philippine economy. Across our across all business units.
operations, we have adopted energy efficiency
and water conservation initiatives that we will We recognize the challenges associated with climate
continue to enhance, expand, and elevate in the change and the impacts it could have on SMC’s energy
coming years so that we can achieve the most consumption. By effectively managing our energy
sustainable use of our resources, for this and consumption, we improve production reliability,
future generations of Filipinos. lower our energy costs, and contribute to sustainable
business operations.
From
As part of the Refinery’s operation, the plant may
produce flare gas (waste gas) particularly during
plant shutdown and startup activities and day-to-day
operations. These waste gases are sent to the flare

Flares
facility to ensure safe release to the environment,
following strict environmental standards stipulated in
RA 8749 or the Philippine Clean Air Act of 1999 and its
Implementing Rules and Regulations.

to Fuel
In 2014, the refinery installed a Flare Gas Recovery
Facility to recover the flare gas composed mainly of
hydrogen, methane, ethane, butane, propane, and
other derivatives, and to upgrade these to fuel that
is used for the Refinery’s operation. Consequently,
As the only refining facility in the this reduced the requirement for supplemental fuel
from other sources and avoided the carbon emissions
Philippines, the Petron Bataan Refinery
from the supplemental fuel. The facility significantly
(PBR) is critical to ensuring fuel supply reduced the plant’s flaring rate from 4.1% (as % of
security for the country. Today, it is total GHG contributed by flaring) in 2012 to less than
0.7% since the completion of the project up to present.
one of the most advanced facilities in In 2022, actual waste gases recovered amounted to
Asia‑Pacific, having benefited from a 32,330 barrels , which is equivalent to a reduction in the
refinery’s energy consumption of around 206,597 GJ in
major upgrade completed in 2014.
the same year. The waste gas recovered in 2022 alone
avoided 10,123 MT of GHG emissions from flaring.

51

SUSTAINABILITY REPORT 2022

SAN MIGUEL CORPORATION
 Water
treatment facilities to properly handle the specific
Water plays a vital role in our daily reality. Out pollutants they are intended to treat, which can be by
of 115 million Filipinos, more than half lack a combination of physical, chemical, aerobic, and/or
access to sustainably sourced and safe water. anaerobic treatment. We also have in place a tertiary
treatment facility in cases where we can reuse treated
Achieving water security remains a wastewater. Wastewater with high chemical oxygen
longstanding challenge for our country. We demand or COD levels is pretreated using Upflow
Filipinos are no strangers to water-related Anaerobic Sludge Blanket technology to generate
challenges such as water pollution, water biogas that we use as fuel in our operations.
scarcity, and insufficient access to sanitation.
The remaining 3% of our total water withdrawal in
Recognizing this plight, we support the 2022 was consumed by the Group as part of our
government’s thrust to achieve universal access beverage products, in our business processes—
to safe, sufficient, affordable, and sustainable cleaning, rinsing, steam generation—and for office
water supply, hygiene, and sanitation by 2030. operations. Of our total wastewater, we were able to
We will help create solutions and contribute recycle 1.5 billion liters in 2022 alone, which we plan
to the government’s efforts in resolving to boost in the coming years.
water security challenges in the country.
Thus, we have instituted water-saving and
efficiency programs across our businesses and
WATER RECYCLED AND REUSED

1.5 Billion
operations.

WATER CONSUMPTION Liters

2022 Unit
Water withdrawn 3,070,643.37 ML
Water discharged 3,054,601.11 ML Foremost in our water sustainability initiatives is a
Water stored (5.50) ML flagship program called “Water for All,” an initiative
Water consumed 16,036.75 ML established in 2017 that aims to reduce our Group-
wide use of scarce water by 50% by 2025 against a
52 2016 baseline.
In 2022, 97% of our water withdrawal was
READY FOR TOMORROW

seawater, which was used for cooling our An example of a notable feat under “Water for
equipment in our power plants and oil All” comes from our cement business. As of 2022,
refinery. Approximately 98% of our total our cement business reduced its scarce water
extracted water was discharged back safely to consumption by 88% compared to 2016 values.
bodies of water at normal temperature after Furthermore, it aims to minimize if not do away
undergoing processing and treatment in our altogether with its freshwater usage by implementing
wastewater treatment facilities. The discharge solutions such as rainwater harvesting and full
of wastewater, whether to land or bodies of recycling. In 2022 alone, it collected 446 million liters
water, is highly regulated in the country and of rainwater, which it used for its manufacturing
should satisfy the Water Quality Guidelines processes.
and General Effluent Standards of 2016 (DAO
2016-08; and updated DAO 2021-19). We ensure
our full compliance with these standards by
establishing wastewater treatment facilities
across our operations. We designed these
Water for All
We may have the most trusted and well-loved brands, the best supply chains,
distribution systems, and manufacturing technologies, but our businesses
cease to exist without water. Water is indispensable to our daily operations,
whether used as an agricultural input, as raw material for our products, or to
generate steam, cool equipment, or sanitize facilities. That is why, over many
decades, we have invested in processes and technologies to treat, reuse, and
recycle more water and preserve vital water sources.

In 2017, even as our water management efficiency

levels were already among the highest in the
country, we chose to make our most significant
commitment yet to water sustainability. We
launched “Water for All,” our Group-wide program
to cut non-product, utility water use by 50% by
2025. We established the SMC Water Council,
comprised of technical representatives from each
of our operating businesses. They establish and
monitor water-saving measures and set water
consumption goals across our plants and offices
nationwide.

We have since been implementing several

programs across the Group to achieve our target.
This includes eliminating the wastage of water
by adopting stricter measures to improve water
use efficiency; utilizing water-saving technologies;
and implementing conservation programs. All
53
facilities and machinery are closely monitored for Water Reduction, %

SUSTAINABILITY REPORT 2022

any signs of leakage and malfunction that could
50
lead to wastage. Fixing leaks has also contributed
significantly to our water reduction efforts. We 40

have increased the recycling and reuse of water 30 25.33

across all our operations and have maximized 21.56
20 17.40 18.03 17.86
our utilization of desalinated seawater. We have 13.11
also built new rainwater collection features 10

and retrofitted or upgraded older facilities to

2017 2018 2019 2020 2021 2022
enable rainwater harvesting. Our businesses
optimize their wastewater treatment facilities
SAN MIGUEL CORPORATION

and constantly try to make greater use of treated SMC’s various businesses continue to implement
greywater for non-essential purposes. More Water for All programs according to a set
significantly, we continue to reduce groundwater schedule, including making capital expenditures
use, even as we work with communities to protect on improving systems in the facilities to meet their
these water sources. targets.
 Reviving our
ailing rivers
In August 2022, San Miguel Corporation impact the environment and the communities we
serve. In particular, the wide-scale impacts of
completed the Tullahan River cleanup
flooding and pollution on our cities and people
initiative, after 27 months of operations. have compelled us to take decisive action.
SMC was able to extract over 1.2 million
In a 2021 study published in OurWorldinData.
MT of silt and solid waste from an org, the Pasig River emerged as the top plastics-
11-kilometer stretch of the river system, emitting river responsible for the world’s ocean
plastics. Meanwhile, the Tullahan and Meycauayan
spanning four major cities. In partnership
Rivers are ranked four and five on that list. Four
with the DENR, the project represented other Philippine rivers—the Pampanga, Libmanan,
the largest river cleanup undertaken by Rio Grande de Mindanao, and Agno rivers—also
made it in the top 10 of that same global list.
any private company.
Keeping our rivers clean will help reduce the
54 This accomplishment would only be outpaced in
amount of plastic waste that pollutes our oceans,
scale and scope a year later by our next initiative—
READY FOR TOMORROW

improve water quality, support biodiversity, and

the Pasig River cleanup. By February 2023, just
mitigate threats to traditional fishing grounds. But
20 months into the project, we reached the one
just as important is deepening and widening them
million MT milestone of silt and solid waste
to mitigate decades of siltation and pollution that
removed from the Pasig River, long a symbol of
have rendered them unable to serve their purpose
pollution and neglect in the Philippines.
of directing flood waters away from our cities.

We have also begun the clean-up of Bulacan’s

Fully rehabilitating our rivers will of course take
Meycauayan river, to help alleviate perennial
more than just ridding them of silt and garbage.
flooding.
To transform our rivers into thriving ecosystems,
it will require the collective efforts of various
Our river initiatives demonstrate SMC’s
stakeholders, including government, communities,
willingness to go beyond what is expected. While
and private sector partners. While it seems like a
some of our projects are located along these
daunting endeavor, taking the first steps toward
rivers, our efforts to improve the health of our
restoration is a crucial part and one that SMC is
waterways are driven by our desire to positively
more than willing to take.
 55

SAN MIGUEL CORPORATION SUSTAINABILITY REPORT 2022

 Hope Flows
Angat Dam, Metro Manila’s main water source, may be located in Bulacan,
but for many decades, the province itself did not have access to a steady,
sufficient supply of potable water for its over 3.7 million residents.

Households would rely on deep wells, tapping into groundwater sources,

which yielded poor-quality water. Excessive groundwater extraction over a
long period, coupled with Bulacan’s exponential economic and population
growth, gave rise to a more pressing concern—land subsidence, said to be
a contributing factor to the perennial flooding in lower-lying areas in the
province.

But that would change in 2015. That year, SMC Infrastructure was awarded
the contract for the Bulacan Bulk Water Supply project that would provide the
province’s 24 cities and municipalities with potable water, at the lowest price
per cubic meter in the Philippines.

Since the project commenced operations in 2019, it now supplies treated

bulk water to 12 water districts that, in turn, distribute to some 220,000
households in Balagtas, Bocaue, Marilao, Meycauayan, Obando, San Jose del
Monte, Bulakan, Calumpit, Guiguinto, Malolos, Plaridel, and Sta. Maria. And
true to its commitment, this water is available to water districts at less than 1
centavo per liter, the lowest bulk water charge in the country.

In 2023, we are set to begin development on Stage 3A of the project, which

will make potable and affordable water from the Angat reservoir and other
surface water sources available to an additional 70,000 more households by
early 2025. Stage 3A will cover the water districts of Baliwag, Norzagaray,
Hagonoy, Pandi, San Ildefonso, San Miguel and San Rafael. Full completion of
Stage 3 will bring the total coverage to the target 24 areas.

56
Currently, the Bulacan Bulk Water Supply Project produces an average
volume of 210 million liters per day and has a maximum capacity of 388
READY FOR TOMORROW

million liters per day.

 KALIKASAN

Circular Economy
We have adopted practices
The concept of circular economy has been
part of our culture even before the term of reduction, recycling,
was mainstreamed. Since establishing a
circular economy approach is part of our
and recovery, as well as
topmost sustainability goals, we recognize developed programs and
the importance of utilizing our resources
sustainably, through better efficiency and the policies. We strive to
reduction of waste.
become more efficient
We recognize that the Company consumes in the materials we use
a large amount of both renewable and non-
renewable resources throughout its various and reduce the amount of
business activities. With our continued waste we generate.
push toward nation building, our demand
for resources will inevitably increase as the
Company grows. To address this, we aim to
transform our business model and to “close the
business. Also recycled are coal ash from SMGP’s
loop” in order to shrink our material footprint
power plants used as raw material in the cement
and to prevent any adverse impacts on the
production process of NCC. In 2022, NCC successfully
environment. We have adopted practices of
recycled 150,194 MT of coal ash as inputs for cement.
reduction, recycling, and recovery, as well as
developed programs and policies. We strive to
Solid Waste Management
become more efficient in the materials we use
and reduce the amount of waste we generate.
We understand the importance of proper waste
management to our business operations. The
Materials and Waste Company already has ongoing initiatives designed
to reduce the amount of waste we generate. We
Materials Management
accomplish this by finding ways to recirculate by-
products and materials at their highest value.

34.3%
57

OF TOTAL MATERIALS USED SOLID WASTE DIVERTED SUSTAINABILITY REPORT 2022

WERE RENEWABLE AWAY FROM LANDFILLS

We used 15.7 million MT of materials in 2022

90.3%
for our operations. Of this, 65.7% are non-
renewable materials and the remaining 34.3% The Company generated 330.6 thousand MT of solid
are renewable materials. Most material inputs
SAN MIGUEL CORPORATION

waste in 2022, of which we were able to redirect

were used by Petron and NCC in the form of approximately 90.3%. Waste classified as spent grain
crude oil, limestone, and clinker. We were able and spent yeast, generated by SMFB, has the largest
to recycle 442 thousand MT of the materials we contribution to our solid waste. Spent grain and
used. These recycled items consisted mostly spent yeast are protein-rich materials used by our
of glass bottles retrieved at post-consumer animal feeds business, providing nutrients required
stage, for reuse by our beverage businesses, or by poultry and livestock for maintenance, growth, and
broken glass cullets recycled by our packaging reproduction.
 The second largest contributors were glass, We generated a total of 566.6 thousand MT
cullets, and jars used for our bottles and of coal combustion residuals from our power
beverages, which we were able to reuse or generators. We were able to redirect a portion
recycle. SMB has in place a returnable glass of the coal ash and reuse these in our cement
bottle system that encourages customers to manufacturing process. The CCR that were
return empty bottles, which the company then not reused in our cement plants were sent to
retrieves from retail outlets. On the other hand, external companies for further recycling. As
GSMI has a robust bottle retrieval system a result, we were able to recycle 51.6% of our
through a network of territorial bottle suppliers. generated coal ash in 2022.
Recovered bottles are subjected to thorough
inspection and quality control protocols to Hazardous Waste Management
ensure safety for reuse. Both systems greatly
reduce the need to manufacture new bottles, COMPLIANCE WITH LAWS AND
minimizing product cost and conserving REGULATIONS ON HAZARDOUS WASTE
material resources. TRACKING, USAGE, AND DISPOSAL

Meanwhile, sludge and slop from wastewater

treatment facilities, and manure from SMF’s
100%
poultry and pig farms are converted to organic
fertilizer. Metal scraps, plastic waste and other The Company generated 8.9 thousand MT of
non-hazardous waste that cannot be used in our hazardous waste in 2022. Our hazardous waste
operations are sold to recyclers. The remaining is mostly made up of used oil and sludge from
solid waste that could not be recycled is sent to our vehicles and generators, as well as reactive
landfills. chemical waste from various manufacturing
processes. We were able to divert 36.2% of our
The Company is prepared to be fully compliant total hazardous waste generated.
with the Republic Act No. 11898, the Extended
Producer Responsibility (EPR) Act of 2022, Hazardous waste is strictly regulated by
which became effective on August 13, 2022. The environmental regulatory agencies. We abide by
law requires obliged enterprises, such as SMFB, all laws and regulations regarding hazardous
to recover and divert at least 20% of their 2022 waste tracking, usage, and disposal. The
plastic packaging footprint by the end of 2023 Company has established a hazardous waste
58
and increase this annually up to 80% by the end and solid waste management system that
READY FOR TOMORROW

of 2028. In future reports, we will be providing monitors the inventory, generation, and disposal
information on their compliance with EPR. of waste. Our Pollution Control Officers are
tasked with data management and ensuring
Coal Ash Management governmental compliance.

COAL ASH RECYCLED

51.6%
Turning Waste
into Resource
We make conscious and disciplined efforts to storage of the excess. We strictly follow and
recycle coal combustion residuals (CCR), mainly as comply with the DENR’s Water Quality Guidelines
an aggregate material for cement manufacturing. and General Effluent Standard of 2016 (DAO 2016- 59
We utilize coal ash as a supplementary material 08) to ensure proper management, storage, and

SUSTAINABILITY REPORT 2022

and as a substitute for clinker, an input used monitoring.
to strengthen cement. While coal ash cannot
completely replace clinker in cement production, We also value the involvement of our partner
using it as an add-on contributes to reducing GHG communities. We carry out information, education,
emissions. and communication campaigns to discuss specific
measures undertaken to ensure that our activities
SMGP’s Limay Power Plant and Malita Power Plant do not cause harm to the environment and to the
have been successful in recycling as much as health of individuals.
80-90% and 70-80% of their coal ash, respectively.
This is achieved through recycling coal ash from We also employ biomats made up of biodegradable
SAN MIGUEL CORPORATION

Limay Power Plant at Petron Bataan Refinery’s co- natural fibers, such as straw, coir, and jute, to
generation facility, reducing the plants’ cover the ash and prevent erosion and blowing
consumption of virgin inert materials (e.g. silica away. The biomats have seedlings already planted,
sand), and supplying NCC and Southern Concrete which provide immediate soil stabilization and
with aggregate material for cement production. protection, and strengthen vegetation on slopes.
This area will eventually be covered in trees by
Since not all CCR can be recycled, we put the end of its 25-year lifespan.
significant efforts and investments in proper
 60
READY FOR TOMORROW

From
Byproduct
to Benefit
As one of the largest manufacturing Agriculture Office in 2021. The partnership has been
yielding mutual benefits for both parties, albeit still in
companies in the country, San Miguel
its pilot phase.
Brewery (SMB) strives for excellence,
efficiency, and sustainability. It places great The majority of SMB’s breweries divert their spent
grain directly to B-MEG under San Miguel Foods, after
emphasis on sustaining the integrity of its they go through processing in SMB’s drying plants.
supply chain from sourcing to production
B-MEG was SMC’s initial foray into the poultry and
to distribution, including managing its
livestock industry and started from a one-ton feed
byproducts. mill adjacent to the brewery, growing into the market-
leading feed brand in the Philippines today with
One of the ways SMB keeps its byproducts in close to 900 MT per hour rated capacity. It is thus
check is by developing a system that handles fitting that, through the years, the feeds business has
them responsibly—whether for disposal, reuse, consistently utilized byproducts of beer production
or recycling. Solid waste, particularly wastewater and, in doing so, absorbed a large volume of what
sludge and spent grain, are some of the major would otherwise be waste materials and converted
byproducts of the beverage-making process. these into high-quality animal feeds.
SMB’s commitment to circularity is evident as it
has successfully recycled about 23 MT of these Due to rising demand for beer products, which results
byproducts on a daily basis across its seven in an increase in production volume, some of SMB’s
breweries nationwide. production facilities engage local organizations to
divert their oversupply of spent grain for repurposing.
Wastewater sludge accumulates during the These partnerships not only solve the oversupply
treatment of brewery effluents. These sedimentary concerns of the breweries but also aid the livelihood
materials are rich in organic matter making it of local business owners by providing cost-efficient
suitable as sanitary landfill cover (to reduce landfill- solutions to their business requirements.
related emissions, fire hazard, and prevent blowing
litter and dust) and as organic fertilizer. Spent While Mandaue Brewery taps business partners to
grain, on the other hand, is the byproduct of raw purchase its extra spent grain, Bacolod Brewery in
materials that go through the brewing process. These Negros Occidental partners with local cattle raisers.
are protein-rich materials used for hog feeds and Since 2017, Bacolod Brewery has partnered with
other feed types, providing nutrients required for the United Cattle Raisers Association in Negros and
maintenance, growth, and reproduction. Visayas (UCRAIN-V) and the Negros First Ranch
under the Negros Occidental Provincial Veterinary
SMB’s production facilities handle the dewatered Office. The brewery provides free spent grain, which
61
sludge by moving it to areas that can be transformed aids these organizations in providing their livestock
into fertile soil, which the company donates to

SUSTAINABILITY REPORT 2022

with consistent nutritious feeds.
various organizations in need.
“The addition of spent grains in the diet of our
Polo Brewery, located in Valenzuela, has been cattle has greatly improved the quality of our daily
donating its dewatered sludge to the local DENR rations at no cost,” shares UCRAIN-V President Louis
office since 2018 to be used as effective landfill Martin. “It has drastically lessened our dependence
covers for specific areas in the city. on commercial feed inputs thus lowering our total
feeding cost, especially during dry season when grass
Mandaue Brewery, located in Cebu, has partnered growth is low. We have seen a drastic improvement
with the Department of Agriculture and the in the overall condition and performance of our
Metropolitan Cebu Water District in diverting its
SAN MIGUEL CORPORATION

breeders, increases in the daily gain in weight of our

dewatered sludge as fertilizer. Most of the donations fatteners and in the milk production of our milkers.”
are channeled to nurseries that grow seedlings for
various tree-planting activities also initiated by the “The members of UCRAIN-V are aware that all these
brewery. gains would not have happened without the spent
grains from the brewery. We continue to hope and
Tagoloan Brewery, located in Misamis Oriental, also pray that this partnership will continue and grow
began donating its dewatered sludge to the Municipal in the future. This has also contributed to the food
security program of our province.”
 Closing the loop
Discarded glass containers and cullets are important raw materials in a bottle-to-bottle
closed loop. Glass is 100% recyclable, nonporous, and impermeable, which means it
can be perpetually recycled without any real loss of quality. However, despite this, the
Philippines has only managed to recycle around 40% of its glass, lagging behind other
countries like Spain, Belgium, and Switzerland, which have achieved recycling rates
from 73% to as high as 90%.
62

This is a challenge not only for the country but identified glass bottles and containers, including
READY FOR TOMORROW

also for the packaging industry, a challenge which broken glass known as cullets, to SMYPC’s glass
SMYPC has accepted through its long-standing plants.
and thriving practice of adopting a circular
economy approach in its business model and In 2022, SMYPC intensified its support of the Balik
operations. Bote Program by launching an information and
education campaign to encourage the mindset and
SMYPC engages with customers and key partners behavior of segregating and cleaning at source
to return used glass containers for recycling. The or at the household level. This campaign was
bulk of its collected glass materials come from done in partnership with the local communities
major beverage customers, as its supply contracts where SMYPC operates. Core programs were
include the return of up to 100% of the customers’ implemented in its own facilities, with major LGUs,
used glass containers. In 2022, two major and with participating schools.
customers turned over 100% of their used glass
containers to SMYPC. Balik Bote with LGUs began in July 2022
with one of the major cities in Metro Manila.
Another initiative of SMYPC on circularity is the SMYPC partnered with a waste management
Balik Bote Program, which promotes the return of solutions organization to expand the city’s waste
management program by adding glass to their
recoverable and recyclable materials portfolio.
SMYPC also initiated an information campaign to
instill the discipline of segregating and cleaning
at the household level. Through this, SMYPC
was able to significantly increase awareness on
the recyclability of glass and expand its area of
coverage by setting up collection sites in LGUs
within the NCR.

SMYPC also spearheaded the Balik Bote Program

in its own facilities. With the program already
deeply integrated into the culture of SMY Glass
Plant where it has been implemented for decades,
the program was expanded to other non-glass
manufacturing facilities of SMYPC in Cavite and
Laguna, as well as to communities and public 63
schools near their areas of operation.

To encourage participation from these SUSTAINABILITY REPORT 2022

communities and schools, SMYPC provides
an incentive in the form of school and office
equipment and supplies, based on a proportionate
amount of recyclables collected throughout the
year. This has resulted in a combined collection
volume of 34 MT in 2022, a 52% increase from the
previous year in 2021.
SAN MIGUEL CORPORATION

To date, SMYPC has recovered a total of 137,000

MT of discarded glass containers through its
circular initiatives in 2022, and it continues to
work with partner communities and stakeholders
to further increase used bottle collection and bring
the Philippines on par with leading countries in
glass recycling.
 GLASS BOTTLES

Where it all began

Long before sustainability and circular For many decades, SMB’s RGB system has
economy practices became bywords in contributed significantly to its bottom line,
minimizing costs and reducing required resources
modern business, San Miguel Brewery,
64
through the constant reuse and recycling of glass
one of the country’s oldest enterprises bottles. Under the system, customers only pay for
READY FOR TOMORROW

and Southeast Asia’s first brewer, was the contents and a deposit on the bottle when they
buy products. Returning the bottles to recover
already employing its returnable glass
the deposit becomes nearly routine for customers
bottle (RGB) system, which endures as a nationwide, allowing the bottles to be brought
critical part of its business. back to the SMB system where these are washed,
sanitized, and reused.

SMB’s glass bottles are designed to go through

this cycle 60 times or more. SMB ensures that
recycled bottles follow the company’s strict
quality standards, which also consider the bottles’
aesthetic value. Visibly worn bottles are sent to
SMB’s sister company, SMYPC, for recycling, along
with bottles reaching their end-of-life stage. This
ensures that all bottles are recycled, and none are
wasted.
As glass is perpetually 100% recyclable, the This highly efficient system of retrieval and reuse
system, in place for most of the company’s 132- keeps GSMI’s bottle in circulation for as long as
year history, has afforded both SMB and the possible to effectively reduce its requirement
environment incalculable benefits in lower costs, for brand new bottles by 72% in 2022. But more
decreased extraction of new raw materials and importantly, aside from minimizing production
minimized solid waste in landfills. This has also costs, it helps prevents the accumulation of solid
helped to ingrain a zero-waste mindset in our waste and reduces the use of natural resources
culture. needed to produce new bottles. This program
not only supports cost management for the
In many ways, glass bottle retrieval and recycling company but also plays a crucial role in reducing 65
is also crucial for SMC’s spirits business, Ginebra glass bottle manufacturers’ dependence on new

SUSTAINABILITY REPORT 2022

San Miguel Inc. The preference for glass bottles materials, leading to a substantial positive impact
as packaging material stems from its inherent on the environment.
characteristic to preserve the quality of our
products for a longer period of time as well as its Furthermore, both SMB and GSMI also maintain
high reusability and recyclability. their own internal bottle retrieval programs to
encourage employees to contribute to the effort to
With an expansive network of third-party bottle minimize the number of uncollected bottles not in
suppliers that spans the whole Philippine their systems.
archipelago, used bottles are retrieved, sorted and
pre-washed prior to delivery at GSMI’s various SMYPC plays a crucial role in the success of both
SAN MIGUEL CORPORATION

bottling facilities. Upon acceptance, these bottles SMB’s and GSMI’s circular economy programs.
undergo stringent quality inspections and further With its business model for discarded glass
cleaning prior to filling with Ginebra’s products. containers and cullets, SMYPC’s raw materials,
Bottles deemed unfit for reuse are transformed fuel, power consumption, and waste generation
into glass cullet, which are then sold to SMYPC to are significantly reduced.
be recycled into new bottles once again.
 From
Manila Plastics Plant (MPP) is one of
the domestic manufacturing facilities
of SMYPC. It manufactures durable and

pallet to economical rigid plastic products such as

crates, pallets, food trays, bottles, pails,

planet
and plastic flooring. With plastic being
non-biodegradable, the business has
found ways to reduce its impact on the
environment through the adaptation of a
66
circular economy model.
READY FOR TOMORROW

MPP has several programs for recycling

collected condemned plastic products, such as
the Pallet to Pallet and Crate for Crate (P2P
and C4C) initiatives, wherein the business
recovers damaged pallets and crates from its
customers and recycles them into new pallets
or crates. A similar process is implemented with
post-consumer lube oil plastic bottles. Aside
from minimizing plastic waste, these programs
strengthen the relationship between MPP
and its customers through a shared program
for sustainability.

For 2022, MPP utilized 4,148 MT of recycled

materials for the creation of new plastic
packaging, resulting in an equivalent reduction in
virgin material for production.
 KALIKASAN

Biodiversity and In 2022, we had six operational sites in the Group

Ecosystems that were based in or adjacent to protected areas or
areas of high biodiversity value. These were Petron’s
Our country is one of the most biodiverse places Bawing and Amlan terminals, GSMI’s DBI, SMGP’s
in the world, with at least 20,000 wildlife species Masinloc and Ilijan power plants, and SMHC’s LCWD.
which cannot be found anywhere else. Thus,
conserving our ecosystems and protecting Petron’s Bawing Terminal is located along the
their natural habitats from significant threats Sarangani Bay Protected Seascape, which is a
should be of utmost importance, not only for the proclaimed National Integrated Protected Area
government, but also for the private sector. System (NIPAS) and also classified as a Category
V Protected Area by the International Union for
In the recently held 27th UN Conference of the Conservation of Nature (IUCN). To protect the site, we
Parties (COP27) in Egypt, nature-based solutions developed and implemented a 10-year biodiversity
were included in UN Climate negotiations for the conservation plan that covers 91,737 m2 of foreshore
first time. COP27 “emphasizes the importance area along the seascape. The plan focuses on
of protecting, conserving and restoring nature preventing and managing any environmental (e.g.,
and ecosystems to achieve the Paris Agreement water pollution and habitat destruction) and socio-
temperature goal, including through forests and economic (e.g., alternative livelihood) issues that
other terrestrial and marine ecosystems acting may arise. We review and update this plan every 10
as sinks and reservoirs of greenhouse gases years or less, depending on the need, to account for
and by protecting biodiversity, while ensuring developments in the area and changes in regulations.
social and environmental safeguards.”
Meanwhile, Petron’s Amlan Terminal is adjacent to
We strongly support and welcome this positive the Tañon Strait Protected Seascape, which is the
development. We commit to the responsible largest Marine Protected Area in the Philippines. To
conduct of our businesses to ensure that we help protect the site as well as the other coastlines
maintain the balance of nature and that we give and coastal areas where Petron’s operations are
priority to the preservation and restoration of located, Petron has created “Puno ng Buhay,” a forest
our natural ecosystems. We have stepped up restoration and mangrove conservation program in
our sustainability initiatives through multiple partnership with the DENR and our host LGUs. Under
environmental protection and biodiversity this initiative, we adopt mangrove reforestation sites
67
conservation efforts. with the goal of protecting critical watersheds and

SUSTAINABILITY REPORT 2022

minimizing our carbon footprint. We also train the
ECOSYSTEM AND BIODIVERSITY residents of our neighboring coastal areas on how
to grow and take care of mangrove forests, with the
2022 Unit
hope of providing them with an additional source of
Operational sites owned,
livelihood. As of 2019, we have adopted a total of 30
leased, managed in, or
adjacent to protected hectares of mangrove reforestation areas in Tacloban
6 No. City, Leyte and Roxas City, Capiz, which resulted in
areas and areas of high
biodiversity value outside more than 1,000 tons of sequestered carbon.
of protected areas
Habitats protected or GSMI’s DBI facility is located along the coastline
SAN MIGUEL CORPORATION

112.74 Ha.
restored of the Guimaras Strait, which is identified as a
IUCN red list species and Biodiversity Conservation Site in Western Visayas
national conservation
by the DENR. In the mid-1990s, we established a
list species with habitats 14 No.
mangrove reforestation area along the coastline
in areas affected by
operations where the distillery is located. Now measuring close
to 12 hectares, the mangrove forest has an excellent
survival rate of 96%, proving the area has remained
 Lastly, SMHC’s LCWD is near the Angat
Watershed Forest Reserve, which protects the
We will safeguard the drainage basin in the southern Sierra Madre
well-being of the natural range north of Metro Manila. SMHC completed
the planting of over 26,000 trees in Angat,
habitats and ecosystems Bulacan together with the town’s
Dumagat communities. In partnership with the
where we operate. We will Dumagats, SMHC was able to cover the first
continue to work with 16 of 55 hectares targeted for planting with
dipterocarp tree species like white and red
others toward a world lauan, palosapis, apitong, yakal, guijo, and other

where biodiversity is indigenous species such as bignai and narra.

This initiative is part of SMGP’s Project 747.
valued and conserved. Furthermore, we also partnered with
Metropolitan Waterworks and Sewerage System
(MWSS) to launch an annual Million Tree
Planting Challenge to replenish the forest cover
of 126 hectares of the Angat Dam Watershed
healthy. These mangroves were also planted
within three years. Under this challenge, our
to contribute to the conservation of the natural
employees have planted 6,400 trees (including
biodiversity of the Guimaras Strait and to
3,200 Narra and Guyabano tree varieties)
reduce the risk of flooding and soil erosion. We
over 14 hectares at the Angat Dam Watershed
also conduct tree planting activities in the area
since 2019.
every year.
In the coming years, we will implement more
Furthermore, we constantly monitor Guimaras
large-scale changes with both the private sector
Strait’s coastline to ensure that the surrounding
and the government to help halt biodiversity
area is always kept clean. One of GSMI’s
loss. We will safeguard the well-being of the
longest-running biodiversity conservation
natural habitats and ecosystems where we
activities is regular coastal cleanups in
operate. We will continue to work with others
collaboration with LGUs and volunteers from
toward a world where biodiversity is valued and
nearby communities.
conserved.
68
SMGP’s Masinloc Power Plant is situated along
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Oyon Bay, a protected landscape and seascape

by virtue of the Expanded NIPAS Act; while
the Ilijan Power Plant is located by the Verde
Island Passage, which is recognized as the
center of global shore-fish biodiversity. SMGP
has developed a biodiversity management
system that safeguards the ecosystems around
these protected areas. We have long-standing
partnerships with environmental experts,
government agencies, and local communities
that implement tree planting, mangrove
reforestation, and coral rehabilitation projects.
One of our biggest initiatives is Project 747,
which aims to plant over 7 million upland and
mangrove trees over 4,000 hectares of land in at
least seven provinces nationwide.
In 2022, San Miguel Foods launched a
coral reef rescue program to help protect
and preserve the rich marine biodiversity
of Anilao in Mabini, Batangas, where the
company’s flour milling plants and grain
terminal are located.

Recognizing that coral reefs are a vital ecosystem

for life underwater, we identified an area close
to Barangay San Teodoro, in the southern part of
Mabini, as the pilot coral rescue site. Ten volunteer
divers, under the supervision of a marine biologist,
transplanted 100 corals at a depth of nine meters.
The site is expected to achieve a survival rate of
60% and further contribute to the growth of the
fish population.

The site is monitored regularly to measure the

program’s effectiveness in terms of fish biomass
and the number of fish species in the area. As the
coral community develops, the fish community and
other reef-associated organisms are expected to
flourish.

Coral reef rescue

69

SUSTAINABILITY REPORT 2022

SAN MIGUEL CORPORATION
 Green for good
PROJECT 747

70
READY FOR TOMORROW

For four years and counting, San Miguel the DENR and local communities—particularly
Global Power, in partnership with fishers and farmers’ groups- are crucial to
achieving this.
its foundation, has been planting
over six million upland trees and It is the role of the local DENR offices and
mangroves nationwide under its flagship community partners to identify indigenous tree
environmental initiative Project 747. varieties to be planted, nurture young trees,
and ensure their growth. Through their efforts
The Project is on track to meet its multi-year and SMGP’s continued support, survival rates of
goal of growing seven million trees across four planted upland trees were at 90%, and mangrove
thousand hectares of degraded forest lands, in at propagules at 89%, as of January 2023.
least seven key provinces in the Philippines.
To date, SMGP has planted 6,527,895 upland and
Growing, not just planting trees, is the main mangrove trees across 2,000 hectares of land, in
determinant of success. Close partnerships with eight provinces: Albay, Bataan, Bulacan, Davao
 71

SUSTAINABILITY REPORT 2022

Occidental, Negros Occidental, Pangasinan, Quezon Project 747 is by far the most expansive and most
province, and Zambales. ambitious, yet. It targets to rehabilitate 2,800
hectares of upland forests and 1,204 hectares of
The list is expected to grow as SMGP is committed mangrove forests. Tree varieties used in upland
to reforesting areas near its BESS facilities in Albay, plantations include narra, molave, white lauan,
Bohol, Cagayan, Cebu, Davao del Norte, Davao de Oro, palosapis, agoho, batino, igang, and malabayabas,
Isabela, Laguna, Leyte, Misamis Oriental, Pampanga, while mangrove varieties include bakawan babae,
SAN MIGUEL CORPORATION

Pangasinan, and Tarlac. bakawan lalaki, bungalon, and api-api.

Across the San Miguel Group, other major The program is aligned with SMGP’s thrust to help
reforestation initiatives have been successfully mitigate the impacts of climate change by lowering
implemented, and continue to this day. These include its carbon footprint through this nature-based
San Miguel Brewery’s long-running “Trees Brew Life” carbon capture initiative.
program and similar projects by Ginebra San Miguel,
Petron Corporation, and SMC Infrastructure.
 Casting a safety net
The Fishnet Assistance Program
launched by Distileria Bago Inc. (DBI) is
a demonstration of our commitment to
fostering sustainable development and
uplifting the livelihoods of the FisherFolks
Association in Barangay Taloc, Bago City,
Negros Occidental.

Since its inception in September 2022, the

program has provided members of the community
72 with the opportunity to rent or purchase fish nets
to improve their income and secure their financial
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future. The initiative operates as a revolving fund,

with revenue generated being used to acquire
more fishnets for the association’s members to
rent and eventually own.

In just a few months, by December 2022, the

program doubled its initial investment, enabling
more members to make a steady living from
fishing. So far, the program has made a positive
impact on the lives of 150 fishermen.

Located along the coastline of Guimaras Strait,

DBI recognizes the importance of empowering
individuals to build their livelihoods. By providing
opportunities for the FisherFolks Association to
earn a decent living, we contribute to the growth
and well-being of the community.
Taking
concrete
steps
NCC’s Environment Management Policy states, “NCC is committed to fulfill compliance
obligations to protect the environment where we operate, for the prevention of
pollution, sustainable use of resources, mitigation, and adaptation to climate change,
and for the protection of biodiversity ecosystems. We endeavor to improve our
environmental performance, taking into account the significant aspects and impacts
in our business operations, the needs and expectations of our customers, and of
relevant interested parties in achieving our environmental objectives and targets.
We pursue improvements to our environmental management system in keeping with 73
our corporate values, anchored on our Vision and Mission, in our desire to become a

SUSTAINABILITY REPORT 2022

world-class cement company and a true advocate of responsible mining.”

In compliance with DENR Administrative Order Certificate of

No. 2010-21 (the Revised Implementing Rules and Program Date Issued
Approval
Regulations of R.A. 7942, otherwise known as the Environmental Protection and EPEP #019-
Philippine Mining Act of 1995), our Environmental May 09, 2000
Enhancement Program (EPEP) 2000-04
Protection and Enhancement Program (EPEP) Annual Environmental AEPEP No. December 17,
is a comprehensive 25-year plan, which details Protection and Enhancement
1—2022 2022
NCC’s methods and procedures to attain its Program 2022 (AEPEP)
SAN MIGUEL CORPORATION

environmental protection and management Final Mine Rehabilitation and

019-2000-04A August 23, 2018
Decommissioning Plan
objectives over the life of the mine. Following
this long-term plan, the Annual Environmental
Protection and Enhancement Program (AEPEP)
expounds on NCC’s plans for 2022, which included
the following programs:
 1. Establishment of Reforestation Areas.
This includes establishing partnerships with
various groups (private sector, the academe,
LGUs, and community-based organizations) to
conduct tree planting activities and re-green areas
that are idle and open. For 2021 and 2022, with
the assistance of City Environment and Natural
Resources Office (CENRO) Urdaneta and CENRO
Alaminos, the company established partnerships
with people’s organizations. The first is with the
NAEVAM Irrigators Association Inc. located at
Barangay Nangapuan, San Quintin, Pangasinan, Members of Multipartite Monitoring Team (MMT) validating
which became the company’s partner in the NCC’s environmental compliance. MMT is composed of MGB,
EMB and Chairman of NCC’s host and neighboring barangays.
Expanded National Greening Program (ENGP) or
Bamboo Plantation Program. NCC established a
Satellite Nursery where NAEVAM can store and
maintain bamboo propagules until they are ready
for planting. NCC’s commitment is to plant 126
hectares of bamboo, and as of December 2022, a
total of 35 hectares have already been planted.
Another people’s organization partner is the
Villacorta Greenthumb Development Association
in Mabini, Pangasinan. The total area for this
program is 70 hectares, for which timber, fruit
bearing, and bamboo trees are to be planted.

Amidst the restrictions brought about by the Members of Bangol Canit Ibaloi Samahang Tribu Sa
pandemic, NCC celebrated Arbor Day on June Kaunlaran propagating fruit bearing and timber wood
seedlings in their own nursery.
10, 2022 by replanting more than 1,550 assorted
fruit bearing and hardwood seedlings within
a 2-hectare land located at Purok 6, Barangay
Nama, Pozorrubio, Pangasinan. The activity was
undertaken with partners from the DENR, the

74
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NCC celebrated Arbor Day and Environment Month through massive tree planting with its employees
together with partners from various schools, government agencies, Barangay Government Units,
Municipal Governments of Sison and Pozorrubio and Indigenous Cultural Communities.
National Commission on Indigenous People, NCC’s 2. Water Resources.
host and neighboring communities, indigenous To ensure that all water leaving its facility is free
cultural communities, people’s organizations, from harmful contaminants, NCC continuously
students, and teachers. maintains all silting ponds, draining canals, and oil
and water separators, which are crucial in filtering
NCC also joined the national celebration of out any pollutants from the water. Additionally,
Arbor Day on June 25, 2022 by conducting tree it regularly conducts clean-up drives along four
planting and officially launching its Arboretum in creeks that receive the discharged water: Buli
a 2-hectare property located in Sapid Mini Forest. Creek, Bagutan Creek, Kubuar Creek, and Sapid
The Arboretum houses various endemic and fruit Creek. To further guarantee the safety of its
bearing trees such as palosapis, lauan, narra, discharged water, NCC conducts monthly internal
cacao, balimbing, guyabano, and makopa. water sampling, with results consistently meeting
DENR effluent standards. These results are
As the development at the Mining Area verified through testing carried out by an external
continues, NCC ensures that topsoil is saved for DENR-accredited testing center. Moreover, NCC
reforestation. To date, a total of 4,714 MT of topsoil also ensures the proper disposal of all hazardous
are stored at the stockpile area for reforestation waste generated during its operations. All
activities and nursery use. Sapid Forest has been hazardous waste is labeled, stored, and disposed
an area for various environmental management properly through DENR-accredited waste haulers,
activities such as seedling propagation and with no chemicals or hazardous waste ever being
production, seed germination, and hunting of disposed of in local water bodies.
wildings for propagation. A clonal facility, where
stem cuttings are used to reproduce seedlings, 3. Noise and Vibration.
has been expanded for use in research programs To ensure that its operations are within the
and propagation of citrus fruits and other acceptable noise levels according to DOLE and
dipterocarp trees. DENR standards, NCC conducts its own ambient
noise level monitoring at Sitio Saguitlang in
NCC also involves local communities in its various Barangay Labayug and Barangay Inmalog.
environmental programs. This year, the company Furthermore, during blasting operations, NCC
partnered with Bangol Canit Ibaloi Samahang works with Delta Earth Moving Inc. to monitor
Tribu Sa Kaunlaran, a community-based forest vibration levels using specialized vibrometer
management association located in Barangay equipment. This ensures that the vibrations
Inmalog, Sison, which is one of its neighboring caused by our operations are within the required
communities. As part of the collaboration, NCC parameters, and that any potential risks to nearby
provided the association with the necessary communities or infrastructure are minimized. 75
resources, including a nursery and essential

SUSTAINABILITY REPORT 2022

tools, to help them establish their own seedling 4. Air Quality.
production. In return, the association sells To control dust and emissions generated during
seedlings to NCC for its greening and reforestation quarry operations, NCC uses water trucks at the
initiatives. This mutually beneficial partnership is Shale and Limestone Quarry to suppress dust
set to continue until 2026, during which period, generated during blasting operations. Additionally,
NCC will purchase 35,000 seedlings from the it employs a vacuum truck to siphon dust along
association, while the association and its members paved roads. Plans are in place to procure a
will earn an estimated income of 1.35 million PhP. new and more efficient vacuum truck, which will
increase the existing equipment’s capability.
NCC’s commitment to environmental sustainability Furthermore, NCC conducts regular emission
SAN MIGUEL CORPORATION

and community empowerment is further testing of heavy equipment involved in quarry

showcased by its National Greening Program and operations. It also carries out internal monthly
Mining Forest Program. From July 2021 to June ambient air monitoring at all identified sampling
2022, NCC successfully planted 15,995 seedlings points, in addition to confirmatory sampling
over 15.4 hectares, as part of its National Greening conducted during Multipartite Monitoring Team
Program. Additionally, as part of its Mining visits. All test results have passed and are within
Forest Program, it planted 200 seedlings over 0.8 the DENR parameters, indicating that NCC’s
hectares during the same period. measures are effective in controlling emissions
 Java Sparrow, categorized as one of the endangered
species, is found within NCC’s Mineral Production Sharing and ensuring the air quality in the surrounding
Agreement (MPSA). communities.

5. Conservation Values.
NCC conducts Information and Education
Campaigns to raise awareness and establish
volunteer programs that foster collaboration
between the company and the community in
conservation efforts.

6. Environmental Research
a. Inventory of Flora and Fauna
NCC upholds its commitment in identifying,
conserving, and enriching biodiversity, as the
76
preservation of flora and fauna is essential
for maintaining ecological balance. To develop
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effective conservation and preservation programs,

the company must first determine the occurrence
Philippine Collared Dove, categorized as Vulnerable Species,
is seen roaming around NCC. Researchers believe that the and distribution of the various plant and animal
surrounding area of NCC provides food. species thriving within the NCC’s MPSA. By doing
so, NCC can define and implement measures that
will help protect these species and their habitats.

b. Siltation Pond Efficiency

Quarry areas are sources of silt and sediments
that have the potential to cause adverse
impacts on aquatic ecosystems and downstream
communities if not properly managed. These
impacts can be mitigated through a number of
techniques. During quarry operations, silt is often
suspended in the water, and if left unchecked, can
harm sensitive aquatic organisms. To address this,
NCC conducts Siltation Pond Efficiency Research
An Information Education Communication on NCC’s environmental performance is conducted to
our host community. The activity is headed by Mines and Geosciences Bureau and Environmental
Management Bureau of Region 1 and members of Multipartite Monitoring Team.

to assess, evaluate, and monitor the sedimentation

rate of all siltation ponds. This research helps
the company develop environmental programs
and assess the effectiveness of its mitigating
measures.

7. Training.
To stay up to date with environmental and mining
regulations, NCC regularly enrolls its personnel
in relevant training programs. For example, the
members of the Multipartite Monitoring Team 77
recently underwent Basic Pollution Control

SUSTAINABILITY REPORT 2022

Orientations to update them with current trends
in pollution control and enhance their knowledge
and understanding of environmental programs,
policies, and laws.

NCC’s AEPEP, as reported in the 2022 Tenement,

Safety and Health, Environment and Social
Monitoring Validation, achieved physical and
financial accomplishment of 89%, which is
higher than the passing rate of 85%. This result
SAN MIGUEL CORPORATION

demonstrates NCC’s commitment to meeting and

exceeding regulatory standards for environmental
protection, safety, and social responsibility.
READY FOR TOMORROW

78
GOOD FOR PEOPLE
 79

SAN MIGUEL CORPORATION SUSTAINABILITY REPORT 2022

 TOTAL EMPLOYEES NUMBER OF EMPLOYEES BY POSITION

50,008
REGULAR CONSULTANTS PROJECT-BASED
EMPLOYEES EMPLOYEES

44,027 88%
182 0.4%
5,799 12%

OFFICER

265 1%
MIDDLE
MANAGER

1,367 3%

RANK
AND FILE

42,395 85%

NUMBER OF EMPLOYEES BY GENDER

WOMEN

13,582 27%
MEN

80
36,426 73%
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NUMBER OF EMPLOYEES BY AGE

UNDER 30 YEARS OLD

18,559 37%
BETWEEN 30 & 50 YEARS OLD

27,504 55%
OVER 50 YEARS OLD

3,945 8%

All 2022 Figures

Percentage to Total Employees
KALINGA
Our Employees
Our employees are integral to the Group’s 2.7:1 male-to-female ratio. However, among the
success. They are the driving force behind the management team, the male-to-female ratio
Company’s productivity and the fountainhead improves to 1.7:1. The ratios notwithstanding,
of innovative ideas that improve our various there is a significant number of women that
products and services. Our employees help occupy key leadership positions in every
us advance our ESG goals. They identify business unit.
opportunities to conserve resources, reduce
waste, and implement sustainability practices, Age group 30-50 years old dominates the
all of which will ultimately benefit the workforce count with 55% share of total
environment and society as a whole. population. The next group are under 30 years
old, accounting for 37%, and finally over 50
As of the end of 2022, SMC’s workforce was years old, 8%. Among the management team
composed of a total of 50,008 employees (officers and middle managers), 56% are from
(excluding those working in our foreign the 30-50 years age group, with the youngest
operations and the companies not in scope of officer aged 35.
this Report). Of this number, 88% are regular
employees, 12% are project-based, and less SMC added 4,931 jobs in 2022, an increase of
than 1% are consultants. 11% in total employment. Most of these new
jobs were created by infrastructure and power
Among regular employees, 96% are rank and projects, and expansion facilities in SMFB.
file employees, the majority of whom are in
sales, manufacturing, and logistics. Officers We recognize that our employees’ well-being is 81
and middle managers together comprise 4% of paramount, and we are committed to supporting

SUSTAINABILITY REPORT 2022

the total population, indicating a relatively light them in every way. Thus, we provide a highly
overhead cost. comprehensive and competitive remuneration
package that includes competitive salaries
Project-based employees are hired for the and healthcare benefits. We also offer a range
duration of specific assignments, such as of other benefits, such as leaves, healthcare
construction projects, and are accorded insurance, financial assistance programs, and
compensation and benefits aligned to the personal and group insurance. Our holistic
positions they occupy. Consultants are hired approach to employee compensation and
for their specific expertise or knowledge, and benefits highlights our dedication to our people.
generally provide support to the management By investing in our workforce, we ensure our
SAN MIGUEL CORPORATION

teams of the business units. They are likewise employees’ health, happiness, and longevity,
given compensation and benefits according to ultimately contributing to the Company’s overall
the value that they bring to the business. sustainability and success.

Male employees account for most of the The following sections further discuss how San
population at 36,426 or 73% and female Miguel Corporation nurtures the well-being of
employees at 13,582 or 27%, resulting in a its employees.
 SAN MIGUEL CORPORATION

174 out of Forbes’ 800

th

82 World’s Best Employers

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In its 2022 list of the World’s Best corporate impact and image, talent development,
Employers, American business magazine gender equality, and social responsibility. Survey
respondents were asked to score their willingness
Forbes ranked San Miguel Corporation to recommend their companies to family and
174th out of 800 global companies that friends based on these key criteria. SMC was
topped its extensive annual survey. SMC among the 800 companies that received the
was one of only two Filipino firms to highest scores from respondents.
make it to the top 200. The survey was
“It is a major honor for us at San Miguel to be
conducted in partnership with market included in such a list, and to be ranked within
research company, Statista. the top 200 in the world, and one of the very best
in the Philippines. We are also very proud to
Statista surveyed 150,000 full-time and part- stand together with other Filipino companies that
time employees across 57 countries working for have emerged as among the best in the world in
multinationals and institutions to determine which advancing the welfare of employees and workers,”
of their employers excel in key areas, such as SMC President and CEO Ramon Ang said.
 KALINGA

Human Rights and • Promoting active engagement and

participation of legitimate labor organizations
Labor Practices and their members in all the activities of the
San Miguel family; and,

• Ensuring good faith in the exercise of our

ACTIVE CBAs prerogatives related to employee discipline

34
by adhering to rules-based and fair
administrative investigation procedures, due
process requirements, and reasonableness in
the imposition of disciplinary actions.

We respect our workers’ rights to freedom of To promote a strong culture of compliance,

association and collective bargaining. we provide orientation and training for new
In consonance with our values, we have supervisors on relevant labor laws, rules,
consistently taken steps to maintain a and administrative issuances of the DOLE.
harmonious relationship between labor and CHR facilitates seminars and training for new
management. By the end of 2022, 34 labor supervisors on the proper interpretation and
unions were active in the SMC Group and modeling of SMC’s Code of Ethics and values.
approximately 14.8% of the Company’s rank Additionally, we continue to champion workers’
and file employees were parties to collective welfare by improving programs to orient new
bargaining agreements (CBA). employees on their growth opportunities,
improve their quality of life through industry-
Each of our subsidiaries has its own Labor competitive remuneration, and provide
Relations unit, which closely coordinates with initiatives that will improve their integration into
the Corporate Human Resources - Labor the SMC Group.
Relations (CHR-LR) department. In line with our
commitment to comply with labor and other With the challenges brought about by the
related laws, we are committed to undertake the pandemic to workplaces worldwide, we came
following actions: up with ways to effectively address the issues
of our employees through creative means of
• Educating employees about and providing communication. We utilized virtual meetings
83
copies of the Company’s Code of Ethics and conversations to ensure that no employee

SUSTAINABILITY REPORT 2022

manual and Employee Handbook, which was left behind during the global health crisis.
contain the policies and guidelines governing Our employees were also given the option to
the duties and responsibilities of every SMC seek redress of any grievances through internal
employee; platforms such as email, Viber, and Facebook
communities.
• Utilizing established communication
channels (i.e., labor-management councils, In full compliance with the Constitution and
tool-box meetings, townhall assemblies, other relevant and applicable laws, we have
one-on-one coaching/counseling) in instituted clear policies on protecting human
resolving organizational issues, and in rights and condemning child and forced
SAN MIGUEL CORPORATION

case of unresolved matters, activating the labor. Likewise, we denounce all acts that
escalation protocol to higher management for encourage violation of human rights and other
appropriate decision; related laws.
 An exemplary
Filipino
company
San Miguel Corporation was given special DOLE also cited SMC for institutionalizing its
recognition for being an exemplary Group-wide Labor Laws Compliance System to
ensure and strengthen labor compliance among
Filipino company by the Department
its businesses and contractors, sub-contractors,
of Labor and Employment (DOLE) for suppliers, and business partners. SMC’s strict
its continuous and sincere efforts to adherence to labor laws and continuous efforts
help Filipino employees and workers. to ensure compliance, not only among its own
companies but also from those in its network, is
The Company was able to support its
also a manifestation of the company’s respect
workforce by hiring and regularizing for the rights of all workers and its core value of
about 25,000 former workers of its third- malasakit.
party providers, strictly complying with
labor laws, and helping over 70,000 in SMC’s numerous pandemic response efforts,
aimed at helping its employees all over the
its nationwide network throughout the country cope with the many impacts of COVID-19,
pandemic. This was done even as the also got the Labor Department’s nod. Apart
economy and SMC’s businesses have yet from extending various economic assistance
to fully recover. programs and implementing adequate health and
84 safety protocols at all its facilities and offices,
In particular, DOLE extolled SMC’s successful SMC also invested in putting up its own RT-PCR
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completion of its Business Reintegration testing laboratory to ensure continuous COVID-19

program—where SMC ended its service surveillance testing of its employees. It also
agreements with third-party providers of non- successfully implemented a nationwide “Ligtas
core, auxiliary operations. It enabled some 25,000 Lahat” employee vaccination program, which saw
workers to become regular employees with full the company hire over 100 medical professionals
benefits. The employees are under its newly who were deployed to SMC employee vaccination
established Operations and Maintenance (O&M) sites nationwide and to vaccination centers
companies. of various LGUs to help with the nationwide
vaccination drive. By January 2022, over 97%
SMC’s Business Reintegration program, which of SMC’s target, 70,000 individuals, were fully
had been ongoing even before the pandemic, is vaccinated, with booster administration beginning
a clear manifestation of SMC’s sincere effort and as early as December 2021.
determination to use its businesses as platforms
for positive change and to bring about progress for SMC’s DOLE recognition is a testament to the
many Filipinos. Group’s unremitting efforts to help and support
its employees, especially amid challenging times.
It highlights SMC’s respect for the rights of all
workers and its core value of malasakit.
 85

SAN MIGUEL CORPORATION SUSTAINABILITY REPORT 2022

 Employee Health All Philippine-based employees, including regular, project-
based and consultants, are covered by the Company’s
and Safety OSH programs. We strive to maintain high standards for
safety and health, and consistently work to strengthen a
culture of safety in the workplace. Integral to this is the
San Miguel has one of the most comprehensive provision of safety and health training for our employees.
medical benefits programs for employees. In full compliance with Republic Act No. 11058 (“An Act
Both major and minor illnesses are covered Strengthening Compliance with Occupational Safety and
through Health Maintenance Organization (HMO) Health Standards and Providing Penalties for Violations
packages, up to a pre-determined maximum Thereof”), all our employees undergo a DOLE-prescribed
limit depending on the business unit. Medical eight-hour OSH seminar upon employment.
consultation, medicines and required medical
devices may be availed of through the clinics Furthermore, we actively seek to go beyond standards
located in each major facility of the Group. prescribed by the government’s OSH Administration
and the DOLE in relation to general safety and health
During the pandemic, we made significant provisions, drug-free workplace, mental health, and
investments in deliberate steps to mitigate any communicable disease prevention, among others. Manuals
possible spread of COVID- 19 in the workplace, on Worker Safety Procedures are maintained in each
including the following: facility. Safety Councils and Safety and Health committees
in our business units are tasked to immediately address
• Opening of an SMC COVID-19 testing issues in their respective facilities, including concerns
laboratory and engagement of external raised by employees. In relation to this, 31 facilities of the
partners to conduct RT-PCR and rapid antigen Company in Petron, Power, Infrastructure and Cement are
testing of employees and third-party providers accredited under ISO 45001:2018 for their Occupational
working in SMC facilities and offices for free; Health and Safety Management Systems.

• Providing sanitation points and disinfection We also conduct regular disaster and emergency drills
facilities (i.e., handwashing stations, alcohol in coordination with the local fire departments, police
dispensers, tire and foot baths), as standard departments, and the Philippine Red Cross to prepare
fixtures in all SMC offices, plants, and other employees to properly respond in case of emergency
86 installations; situations.
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• Developing an online application for health Additionally, our facilities undergo yearly multi-functional
and safety declarations of employees; and audits by our Corporate Technical Audit unit. This group
is tasked to provide independent and objective assurance
• Having Safety Officers stationed at each
services to improve the operation of the Company’s plants
business unit to consistently monitor and
and facilities. The scope of the technical audit includes
facilitate employee adherence and compliance
verification of adherence to government regulations and
with minimum health protocols.
engineering codes, reporting of significant risk exposures
and control issues, and communication of scientific
PHILIPPINE-BASED EMPLOYEES and technical information that would help to improve
COVERED BY OSH PROGRAMS operations and workplace conditions. Findings from these

100% audits are used to address deficiencies, upgrade facilities,

and strengthen existing controls and procedures.
Putting
People
First
San Miguel puts front and center the
health and safety of its employees, never
more so than throughout the COVID-19
pandemic. Three months after the first
nationwide lockdown in March 2020, the
company began testing its employees for
COVID-19 as part of an extensive plan to
reopen its workplaces safely and continue
providing essential services to the public.
By July 2020, San Miguel’s RT-PCR Better
World EDSA testing laboratory was fully entire workforce and their dependents, business
partners, and SMC support staff.
operational, processing over 1,000 tests
a day. All told, San Miguel bought over 600,000 doses of
Astra Zeneca and Moderna vaccines and donated
Among those prioritized for testing were line vaccines and the services of the 160-strong San
workers and employees in the company’s food Miguel Ligtas Lahat medical team to LGUs in Metro
manufacturing facilities as well as economic front Manila and over a dozen other urban centers
liners and support staff. across Luzon, Visayas, and Mindanao. From July 87
2021 to January 2022, the company was managing
By taking responsibility for testing its employees,

SUSTAINABILITY REPORT 2022

14 different vaccination centers throughout the
the company lessened the strain on the national Philippines.
health system, contributing to the government’s
efforts to test and trace COVID-19 transmission. Even before company-procured vaccines arrived in
With fewer cases and a rapidly improving late June 2021, the company’s medical team had
COVID-19 situation, Better World EDSA testing administered close to 180,000 doses at different
laboratory closed in May 2022. However, San government vaccination sites.
Miguel still continues to conduct regular antigen
tests on employees, through a third-party supplier, By the end of August 2021, we had vaccinated over
particularly in the NCR. 80% of our nationwide workforce, with more than
SAN MIGUEL CORPORATION

56,000 individuals receiving either their first or

The company was also among the first movers second primary vaccine doses.
and biggest supporters of the government’s
vaccination program. Our priority was always to By January 2022, 97 percent of our workforce
create safe workspaces in all our facilities and were fully vaccinated, and we began rolling out
offices nationwide: to protect our employees and to the first boosters to the most vulnerable in our
ensure that our operations would not be disrupted. population—just in time for the Omicron surge by
SMC procured enough vaccines to cover our the early part of 2022.
 SMC’s Mental Health Support Program for employees was established in 2020, at the
height of the COVID-19 pandemic. In line with the Groupwide employee wellness program,
it is a proactive response to DOLE’s Mental Health Workplace Policy and Program pursuant
to Republic Act No. 11036 or “The Mental Health Act.” The program started as a series of
virtual workshops conducted by one of our program partners, the Ateneo Bulatao Center,
about the importance of psychological well-being and mental health. We started with topics
such as “Understanding Mental Health,” with the goal of normalizing the subject among
SMC employees. Lighter topics included “How pets can help relieve anxiety” and “How
plants can improve our mental well-being”.

SMC took the initiative further by launching the “Arugâ” Program, a Filipino word that translates to “to
nurture and provide tender care.” This included webinars and information campaigns but was primarily
intended to provide access to mental health and psychosocial support services, such as mental health
consultation, counselling, psychological and psychiatric services, through a secure online platform facilitated
by mental health professionals.

Healthy The employee wellness program is guided by the

following framework:

minds
MIND: To provide programs and activities
that support mental health and well-being by
harnessing mindfulness, focus, and resilience.

at work
BODY: To promote physical fitness through
programs on nutrition, exercise, rest, and
relaxation. (Examples are Taichi and Dance Fitness
Fridays).

88 HEART: To give employees emotional support

through programs that encourage self-care,
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strengthen self-esteem, and nurture a positive

mindset.

SPIRIT: To help our employees discover and define

what is at the heart of what they value—connecting
this to a personal purpose and to SMC’s value of
malasakit.

With this, SMC aims to keep employees engaged

and active, enhancing their personal value, not
only to the company, but even more to their
respective families and communities.
 KALINGA

Employee Engagement, In 2022, our employees logged a total of over

593,000 learning hours, up by 88% compared
Training, & Development to the previous year. Online learning increased
when CHR partnered with LinkedIn Learning
and Udemy, which allowed training and
We fully recognize that engagement, learning, development to expand its reach Groupwide.
and development are vital for our employees to Learning administrators in each business unit
realize their full potential. As such, we strive to were trained to do content curation to develop
provide the requisite competencies and skills learning pathways in the LinkedIn Learning
for them to succeed in their roles, to increase platform. These learning pathways were
productivity, and produce a stable pool of talent assigned to identified employees for completion,
for future leadership opportunities. resulting in more than 238,000 content
completions on the platform. Learning in groups
Upskilling and reskilling gained heightened also increased as sessions on the platform
importance in 2022 with the growing shifts were conducted in larger forums to create a
in the way business is done. It became an sense of community among employees in our
imperative strategy for companies to enhance plants and sales facilities. Onboarding and
their learning and development programs to learning conversations were made available as
respond to the emerging needs of business. well using online collaboration tools such as
Microsoft Teams and Zoom.

The development of high-potential and high-

LEARNING HOURS performing employees is a particular focus area

593,000
in SMC. In addition to purposive career paths,
coaching and mentoring, there are advanced
learning programs where these employees
can further hone their skills. These are the
following:
TRAINING HOURS BY JOB CATEGORY
• Management Development Program (MDP),
Ave. Hours / 89
Total Hours run by Corporate HR;
Person

SUSTAINABILITY REPORT 2022

Officer 4,979 23
• Leadership and Management Development
Middle manager 35,105 29
Program (LMDP), run by the Ateneo Graduate
Rank and file 553,279 13
School of Business;
TOTAL 593,363 14

• Executive Management Development

Program (EMDP), run by the Asian Institute of
TRAINING HOURS BY GENDER Management; and
Ave. Hours /
Total Hours • ExecOnline, run by globally recognized
SAN MIGUEL CORPORATION

Person
Women 163,381 13 institutions such as the Columbia School of
Men 429,982 14 Business and the University of California
TOTAL 593,363 14 Berkeley.
 These programs provide leadership
development and continuous learning
opportunities and have become a laboratory of
Apart from leadership
novel ideas, producing capstone projects that and work-related
are high-impact and relevant, and promoting
themes related to sustainability, innovation, and competencies, programs
future of work. Despite pandemic constraints, are also offered for
hybrid learning allowed managers based
outside of Metro Manila and from offshore holistic well-being,
facilities to participate in meaningful learning health, and creative talent
experiences. Participants were able to
collaborate and appreciate the synergies that development.
came out of class discussions, workshops, and
case studies. The MDP, which is geared toward
high-potential supervisors and team leaders
across SMC, has 148 graduates since 2017. workforce, such as Volunteers in Action
LMDP has a total of 23 batches since 2016, program by Petron, visitation to Saguitlang
EMDP has 3 since 2018, and ExecOnline has pupils by NCC, and various employee-initiated
one since 2019, for a total of 660 graduates who programs in provincial locations.
have completed the more advanced courses.
For 2022, the programs produced 120 projects Performance reviews are an important
related to San Miguel’s sustainability programs mechanism to drive the achievement of
such as plant-based butter, and biocoal from business goals and strategic initiatives. Given
spent grains as a source of energy for plant agreed goals at the start of the year, the
facilities. employee’s performance is rated objectively
based on the achievement of these goals by
Apart from leadership and work-related year-end. Also included in the review is an
competencies, programs are also offered for assessment of the employee’s strengths
holistic well-being, health, and creative talent and areas for development, as well as
90
development. These are in the form of webinars, developmental plans. For officers, middle
individual consultation, interest groups, and managers, and non-unionized rank and file
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even internal competitions. employees, the performance rating becomes the

basis for salary increases in the following year.
Finally, we conduct employee volunteer For unionized employees, salary increases are
programs that help cultivate an engaged governed by their CBAs; nevertheless, some of
them still undergo performance reviews.

PERFORMANCE REVIEW BY JOB CATEGORY

Total No. of Regular
2022 Received Reviews % to Total
Employees
Officer 265 219 83%
Middle manager 1,367 1,165 85%
Rank and file 42,395 20,805 49%
TOTAL 44,027 22,189 50%
 KALINGA

PERFORMANCE REVIEW BY GENDER

Total No. of Regular
2022 Received Reviews % to Total
Employees
Women 11,890 7,252 61%
Men 32,137 14,937 46%
TOTAL 44,027 22,189 50%

While performance reviews are expected to be Moving forward, one of our imperative
completed for all officers, middle managers, development tasks is to raise awareness and
and non-unionized employees, the actual build capability for sustainability among our
91
compliance rate is still below standard. Between employees across the Group. We are working on

SUSTAINABILITY REPORT 2022

women and men, a higher percentage of women a combination of internal and external programs
undergo performance reviews. To facilitate the to equip our employees in ESG, including setting
performance review process, San Miguel piloted up a knowledge platform to serve as a group-
the use of SAP Success Factors as its platform wide repository of ESG resources and data and
for human capital management in 2018 and has launching employee engagement programs to
progressively increased both the application instill an ESG mindset in our workforce.
modules activated and the organizational units
migrated to the platform. The goal of HR is not
only to attain a comprehensive coverage of
SAN MIGUEL CORPORATION

performance reviews, but also to enhance its

value as a motivational and developmental tool.
 For over a century, SMC has built a San Miguel Foods University, on the other hand,
legacy of creating world-class products has 16 schools offering more than 100 courses
in various fields such as feed milling, poultry
that are recognized globally. To achieve and meats live and processing operations, flour
this, the company recognizes that its milling and applications technology, and basic
employees are its most valuable asset, quality assurance, among others. This in-house
and investing in them is key to excellence, school not only allows employees to obtain the
necessary knowledge and skills to perform their
innovation, and quality. That is why SMC
jobs well and expand their career opportunities,
has established in-house schools for its but also offers those in technical professions, such
employees across various business units as chemists, chemical, electrical, and mechanical
to develop specialized skills, keep up with engineers, veterinarians, and food technologists,
an opportunity to obtain the required CPD
industry trends, and drive innovation.
credits from the PRC to keep their licenses. The
school has introduced digital learning to provide
One such in-house school is the San Miguel School
employees with greater flexibility in accessing
of Brewing, which has been the primary institute
educational resources at their own pace, a feature
for developing future brewmasters, quality
that is particularly useful for employees on
assurance professionals, technical specialists,
manufacturing shifts.
and brewery engineers since its creation in 1975.
The school has produced brewmasters and other
GSMI has also established six in-house schools
key technical people, and today, it is an accredited
that cover a range of disciplines, such as
provider for Continuing Professional Development
manufacturing, sales, logistics, human resources,
(CPD) of the Professional Regulation Commission
and liquor making. One of these schools is the
(PRC) Councils of Chemical Engineering,
Alcohol and Liquor Technology Institute, which
Chemistry, Mechanical Engineering, and Electrical
focuses on developing alcohol sensory experts and
Engineering. This means that employees not only
honing employee skills in alcohol making. In 2022,
gain the knowledge and skills needed to advance
GSMI offered a total of 35 courses with a combined
their careers but can also obtain necessary CPD
196 CPD credits. This initiative not only boosts
credits to maintain their licenses.
employee morale and skill sets but also raises the
bar for the industry as a whole.

Raising In-house schools are not a new concept, but San

Miguel Corporation’s commitment to employee
development and growth sets it apart from the

the bar
92 rest. The in-house schools not only foster a culture
of learning and innovation but also ensure that its
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products remain of the highest quality. With SMC’s

in-house schools, employees can take their careers
to new heights, while the company remains at the
forefront of innovation and excellence.
 KALINGA

Diversity and Inclusion

We know that a diverse
In SMC’s Human Resources Manual, Section
9 on Recruitment and Hiring, it is stated, “All workforce brings unique
applicants are considered regardless of gender,
civil status, religion, or physical ability, provided
perspectives, experiences,
that the minimum education requirement and and ideas to the table,
competencies required by the position are
fulfilled.” leading to greater
We are indeed an equal opportunity employer
innovation, creativity, and
that hires based on the personal skills, problem-solving.
knowledge, and capabilities of each candidate.
The following standards of conduct, as codified
in our Recruitment Policy, Company Rules and
Regulations, and Employee Handbook, guide our
hiring process: brings unique perspectives, experiences, and
ideas to the table, leading to greater innovation,
• Respect for people: Recognize each other creativity, and problem-solving. That is why
as individuals and commit to nurturing each we have implemented policies and practices
other’s individual capabilities. that uphold gender equality, such as offering
• Integrity: Conduct business in a manner, which equal opportunities for career development
is ethical, fair, and right, and in all reasonable and advancement, providing equal pay for
circumstances, above reproach. equal work, and fostering a safe and supportive
• Manpower selection and placement policy: environment that is free from discrimination
Base selection process on merits and or harassment. Consistent with this, we fully
aptitudes comply with the Safe Spaces Act (Republic Act
• Diversity and gender equality: No. 11313), which aims to protect individuals
• Adhere to Republic Act No. 6725, which against sexual harassment. We stand firm in
protects against the discrimination of our commitment to promoting a workplace free
women with respect to the terms and from all forms of gender-based misconduct and
conditions of their employment. where everyone feels respected, valued, and 93
• Observe the Anti-Discrimination Act of protected.

SUSTAINABILITY REPORT 2022

2017, which protects employees from
discrimination in all operations. In 2022, there were no reported incidents of
• Do not consider age, gender, religion, discrimination within the Group.
ethnic affiliations as bases for prospective
employment. We recruit and reward employees based on
• Do not condone the use of child labor, nor merit. We give opportunities to individuals,
practice forced or compulsory labor. especially those belonging to our fence-line
communities, regardless of their social status.
At SMC, we value gender diversity in the While the Company has no formal hiring policy
SAN MIGUEL CORPORATION

workplace. We believe that promoting gender for ethnic minority groups, we actively support
inclusivity not only benefits our employees the programs of our subsidiaries for their
but also contributes to the success of our respective communities.
business. We know that a diverse workforce
 For instance, Petron’s Bataan Refinery gives The distribution of work location throughout the
members of Aeta communities the opportunity different regions of the Philippines generally
to be employed at this facility through an reflects the Company’s size of business in
apprenticeship program. A number of members these areas. We recognize the value of onsite
of these communities have successfully finished presence in each region in terms of better
the training program and have been gainfully understanding and quicker response to market
employed. This has inspired other members developments, easier access to local suppliers
of the indigenous group to apply for similar and direct contribution to local employment. At
apprenticeships. all facilities and offices nationwide, we prioritize
local hiring.

NUMBER OF EMPLOYEES BY WORK LOCATION

NORTH LUZON

NCR
7,892
16%
14,989
30%
SOUTH LUZON

CAVITE 9,275
9,042
19%
94

18% VISAYAS
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3,982
8%

MINDANAO

4,846
10%

All 2022 Figures

Percentage to Total Employees
ABANTE BABAE

Empowerment
and agency
A place where women can open up to others, learn,
laugh, and, if necessary, heal. That is SMC’s Better
World Cubao (BWC). We opened the center in March
2022 to create a community where members have
access to essential services to help them become
empowered 21st-century women.
95
Our main programs are focused on health, empowerment, and

SUSTAINABILITY REPORT 2022

women’s recovery. Health consultations are readily available
and “Abante Babae” workshops covering diverse topics such
as violence against women and children (VAWC), parenting
challenges, and gender equality are regularly conducted. Over
nine months, we have enrolled over 420 members, ran an
estimated 185 classes on health education, and conducted 2,600
workshops on empowerment.

In August 2022, we began offering members free ultrasound

services, with socialized costs for extended family and referrals
SAN MIGUEL CORPORATION

from neighboring barangay health centers.

Our BWC members are proof that we have been able to build
a strong sense of community with over 1,600 volunteer hours
logged. We have seen how women with different backgrounds
are able to come together to create a safe space for themselves
and break down barriers of difference, promoting confidence,
self- belief, and a sense of belongingness.
 Customer Welfare and
For Food in particular, efforts are ongoing to
Responsibility improve the nutritional value of our products.
Recent declarations have linked obesity
and non-communicable diseases such as
Across the diverse business units of San Miguel, hypertension and diabetes to processed food.
one of our priority responsibilities is to ensure To address this concern, the Food Group has
the health and safety of our customers. This been working on ways to improve the nutritional
is a cornerstone upon which our brands have quality of its products, including fortification
built their reputation and gained the trust of with vitamins and minerals, reformulation to
consumers. The key elements of our customer reduce sodium and preservatives, and the
welfare and responsibility program vary launch of plant-based food. The reformulation
according to the nature of each business. process is painstaking and iterative as it aims
to achieve target nutritional values while
For SMFB, compliance with the regulations preserving the taste that consumers are
of the Food and Drug Administration (FDA) is accustomed to.
primary. This includes obtaining a License to
Operate for each production facility, Certificates The marketing of consumer goods is likewise
of Product Registration, and compliance subject to certain regulations, more so for
with mandatory labelling requirements alcoholic beverages. All the advertising
such as product name, manufacturer’s materials released through media and on
name and address, nutrition information, digital platforms comply with the requirements
list of ingredients, allergen declaration, of Ad Standards Council, a self-regulating
serving size, net content, lot/batch number, organization that aims to safeguard truth in
and manufacturing and expiration dates. If advertising and give paramount consideration to
applicable, storage and handling conditions, and the consumer’s interest. This includes a one-
directions for use are indicated. Additional label second frame at the end of each commercial
markings such as vitamin fortification, low- reminding the viewer to “Drink Responsibly.”
calorie, low-alcohol or no preservatives are also The same caution is present in all outdoor
validated and approved by FDA. Each business advertising and merchandising materials.
96
monitors new guidelines released periodically Thus, we do our part not to promote excessive
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by the FDA and ensures that product drinking but capitalize on brand equity to
development personnel are informed and promote our products.
trained in the required compliance measures.
For our cement business, NCC follows
Prior to releasing products to market, the Philippine National Standards (PNS) in
company diligently conducts assessment of labelling its products. This includes product
all ingredients used in product formulations, classification, specification and application,
conducts sensory evaluation with respondents trade name, trademark of the manufacturer,
matching their target market, and establishes batch identification number, and information on
shelf life of each product. Standard parameters disposal of packaging, which are in accordance
of all raw materials, finished goods and with PNS 07:2018, PNS 63:2019, and PNS ASTM
packaging are fully documented. Once in the C91:2005.
market, samples from each production batch
are retained in the manufacturing plant for For infrastructure, a Road Safety Audit Report
reference in case of any product complaint that is produced based on two components, data
may arise. collection and data evaluation. The audited
 KALINGA

project (e.g., Skyway, NAIAx, SLEX, TPLEX, the video footage to assess the requirements
STAR Tollway) must abide by several laws and for signages, their proper placement and
regulations, including those relating to the categorization, the presence of hazardous items,
environment, public health, safety, municipal and other safety-related issues. Through these
and provincial requirements, and internal parameters and procedures, the organization
performance standards. Laws that address can then ensure safer and more convenient road
process safety management, right-to-know use for motorists.
issues, or environmental management are
examples of governmental controls. The Company’s commitment to deliver quality
products and services, and not cause any harm
The organization and the Toll Regulatory Board to people and the environment, is demonstrated
(TRB) jointly inspect the tollways during an by its ISO and Food Safety certifications, of
initial phase while driving a van equipped which there were 134 installations with valid
with a dashboard camera. TRB then reviews certificates as of the end of December 2022.

NO. OF
STANDARD DESCRIPTION BUSINESS UNITS COVERED
CERTIFICATIONS
SMFB, Packaging, Petron,
Quality Management
ISO 9001:2015 Power, Infrastructure, 58
Systems
Cement
Environmental SMFB, Petron, Power,
ISO 14001:2015 38
Management Systems Infrastructure, Cement
Requirements for
the Competence of
ISO 17025:2017 SMFB 1
Testing and Calibration
Laboratories
Food Safety
ISO 22000:2018 SMFB 1
Management Systems
Food Safety System
FSSC 22000v5.1 SMFB 15
Accreditation
Hazard Analysis Critical
HACCP SMFB 14
Control Points 97
Standards for Good
GMP SMFB 15

SUSTAINABILITY REPORT 2022

Manufacturing Practices

Gathering and addressing product complaints is and other individuals send in complaints,
another essential element in ensuring customer inquiries, and other feedback. ProSync sorts the
welfare. The Company has a Customer Care information and sends these to the respective
Hotline +632 8632-2000 which is staffed by contact persons in charge of each business. We
SMITS subsidiary, ProSync. We have a San also employ social media monitoring tools to
Miguel Corporation Facebook page, various track any issues or posts mentioning San Miguel
SAN MIGUEL CORPORATION

Facebook brand pages, company websites and or our brands.

email addresses through which customers
 COUNT TYPE OF TRANSACTION

0.1%
13.4%
44.4%
25.5% 82.1% 4.2%

0.3%

EMAIL
BUSINESS OPPORTUNITIES
SOCIAL MEDIA
QUALITY OF PRODUCT/SERVICE
TELEPHONE
OTHERS
29.9% SMS
GENERAL INFORMATION

Customer complaints about food, in particular,

are managed by Quality Assurance specialists
following a standardized procedure, with
the goal of resolving them within 24 hours.
In addition to their technical knowledge
about the products, the specialists are given
soft skills training to listen, empathize, and
properly interact with customers. An escalation
protocol is defined should it be necessary to
involve levels of management to settle issues.
The organization appreciates that customer
complaints and feedback are opportunities to
identify areas for improvement and further
strengthen food safety controls in place.

98
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Health consciousness increased significantly
during the pandemic. With products already VEEGA
meat-free
in development for a few years prior, the
heightened consumer awareness provided
an impetus for The Purefoods-Hormel
Company, Inc. (PHC) to launch plant-based
food to offer consumers a line of delicious,
easy-to-prepare and fully cooked alternatives
products
to processed meats. Taste and affordability
were the primary considerations, qualities
that are not normally associated with plant-
99
based meals.

SUSTAINABILITY REPORT 2022

PHC’s plant-based food line is sold under the brand,
Veega. The products are manufactured locally using
wheat, soy, mushroom, and egg, with no preservatives
added. The initial offering included five variants
namely, meat-free balls, burger patties, sausages,
nuggets, and giniling (ground meat). This was later
expanded to include a vegan native line of adobo
flakes, tapa, and tocino as well as vegetarian ready-to-
eat viands bulgogi and spicy soy garlic balls. Hence,
SAN MIGUEL CORPORATION

whether a consumer is a fully committed vegan or a

flexitarian looking to incorporate healthier meals in his
diet, there is something that Veega has to offer.

Veega products are available in most supermarkets,

convenience stores and quick service restaurants,
where it is a mainstay of healthy meals from meatless
pizza to healthy nachos, salad, and pasta.
 Raised without
antibiotics
When it comes to the safety of its
consumers, San Miguel Foods, Inc. (SMFI)
adheres to a strict policy of raising its
Magnolia chickens without antibiotic
growth promotants, beta-agonists,
hormones, or steroids. These are basic
and absolute, inflexible rules of SMFI
to guarantee the health of its chickens
but more importantly, the safety of its
consumers.

Vaccines are given to day-old chicks at the

hatchery to protect them against disease. No
injections of hormones or any other chemicals
are given to the broiler chickens at the farms
from start to harvest. In cases when antibiotics
are needed for treatment, animal-only antibiotics
are given under close supervision by a licensed
veterinarian. An appropriate withdrawal period
is strictly enforced to ensure no antimicrobial
100 residue is present in the meat.
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The living environment plays a key role in

ensuring that the chickens are in good health and
protected from diseases and other stressors. The
company’s farms use Controlled Climate Systems,
environmentally controlled facilities that are
maintained at five to seven degrees cooler than
outside temperature. Chickens are given access to
quality feeds and clean water 24/7.

By keeping the ambient temperature at an ideal

level for the chickens, controlling humidity,
and utilizing automated feeding and watering
equipment, chickens are raised in comfortable and
stress-free conditions, compared to conventional
open-sided houses. Closed houses also provide
better biosecurity, keep wild birds out, and protect
the flock from diseases.
 Don’t pass the salt, please
In 2019, the Food and Nutrition Research
Institute under the Department of
Science and Technology reported that
nearly two out of 10 Filipino adults aged
20 and above suffered from elevated
blood pressure. One of the risk factors
contributing to this condition is the intake
of too much sodium in the diet, often
attributed to eating salty foods.

In response to this development, San Miguel Foods 101

launched its Corporate Nutrition and Sustainability

SUSTAINABILITY REPORT 2022

Guidelines in 2020 to improve its products’
nutrition profile and set the landscape for inclusive
and sustainable nutrition in the country. Given the Among the early achievements was a 25% sodium
World Health Organization’s recommendation of reduction for Purefoods Fun Nuggets using a
2,000 mg per day intake of sodium for adults, the salt replacer technology. Since then, nine more
Food Group set out its sodium threshold to 667 products have been reformulated to reduce
mg per serving of processed meats and processed sodium content by 25% to 40% through a direct
dairy products. reduction of salt. These are Purefoods Pork Katsu,
Purefoods Chicken Katsu, Higante Chicken Franks
The guidelines put a formal structure to sodium with Cheese, Tender Juicy Cheesy Spaghetti,
SAN MIGUEL CORPORATION

reduction efforts initiated as early as 2007. With Tender Juicy Cheesy Pizza, Purefoods Deli Spicy
the Filipinos’ penchant for patis (fish sauce), toyo Pepper Beef Franks, Purefoods Chicken Sisig,
(soy sauce), and dried fish, many of the Company’s STAR Corned Beef, STAR Corned Beef Chunky
processed meat products catered to this flavor Cheese, and Purefoods Classic Honeycured Bacon.
profile. It was a challenge to reformulate products
without significantly changing its taste. Moreover, The Company continues to improve the nutrient
as salt is a preservative, reducing it would also profile of its products in line with its commitment
affect shelf life. to responsible food production.
 Purpose in
a bottle
The role of beer is deeply embedded
within a culture that “it acts like a window
into who we are as individuals and as
members of larger social groups, and in
so many ways shapes the cultural norms
and hierarchies that pattern the society
around us.” (Wilson & Stone, 2022).

In the Philippines, beer is among the most

celebrated alcoholic beverages, with 2.1 billion
liters consumed annually*. New trends have been
introduced in recent years, such as concoctions
with experimental flavor profiles to accommodate
the ever-changing consumer lifestyles. Still, the
role of beer as the cultural glue that drives social
discourse remains the same.

Ahead of the curve was San Miguel, recognizing San Mig Light conversations have progressed
early on the importance of beer in the social space. beyond promoting a product and into the realm
SMB launched in 1999 as the country’s first low- of purpose. It seeks to influence important
calorie beer for consumers who loved to drink but discussions that challenge the status quo and
disliked the bloated feeling after a night out. San bring up issues that people might be hesitant to
Mig Light (SML) was a breakthrough in the local talk about. This way, the brand aims to contribute
102 scene, its tagline, “Sa mahaba-habang usapan, San to shaping a better culture.
Mig Light,” resonated deeply with the emerging
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drinker profile of that era. The impact of its 2017 campaign would garner
San Mig Light a win at the Asia Pacific Tambuli
San Mig Light would become the most visible Awards—a recognition given to brands able to
brand in bars and gastropubs over the years, seamlessly integrate creativity and results with
emerging as the drink of choice among young, positive change.
upwardly mobile drinkers. The brand became
associated with what was “present and The brand’s messaging has evolved over
happening,” Eventually, SML would pivot into the years, from simply promoting the beer’s
spaces where it could align with social causes. In 100-calorie content, to conversations all day
2017, the brand tapped into a growing inclusivity long, to driving conversations relevant to today’s
awareness among Filipinos through a campaign society. In so doing, the brand has been able to
featuring women in male-dominated fields such communicate its values not just for San Mig Light
as aviation, firefighting, and biochemistry. Taking but for the entire San Miguel brand.
the creative direction a notch higher, the brand
executed podcasts and mounted round-table SML has successfully shifted its value by
discussions nationwide with key opinion leaders immersing itself into our cultural fabric, becoming
to kickstart conversations on inclusivity and an emblem of the socially conscious Filipino.
empowerment.
*Source: United States Department of Agriculture
 KALINGA

Community Engagement
Having deliberately moved away from the
At San Miguel, we do not see strategy and CSR
traditional philanthropic model of the last few
as separate. Our overarching value, malasakit,
decades, the foundation has tried to take a
is actionable and sustainable. At the heart of the
context-focused approach to corporate giving
relationship between our businesses and society
that has a greater chance of producing social
is not just the charitable and philanthropic
benefits far exceeding those provided by
deeds that we do, but business activities that
individual donors or traditional foundations. In
are aligned with social issues. From the roads
solving social problems, specifically in helping
and power plants we build to the food and
communities tackle barriers to participation
drink we put on people’s tables, our projects
and progress, the Foundation collaborates
support the basic needs of the Philippines as a
closely with government agencies, international
developing economy.
and regional organizations, and other non-
The Company’s social development arm, San
governmental actors.
Miguel Foundation, was established in 1972, and
in the 50 years since, the Foundation has run
A big part of our sustainability thinking is trying
a wide range of projects and activities in areas
to understand society’s big problems, and how
such as environmental stewardship, community
our businesses can play a part in solving them.
and livelihood development, housing, education,
nutrition, health, and disaster relief.
Our incubators for social change, San Miguel’s
Better World sustainable communities make
San Miguel has always been a vital first
use of idle, abandoned, and vacant properties
responder in times of crisis and natural
and repurpose them for community and civic
disasters. Over one billion pesos went toward
uses such as green space, learning centers, and
housing the homeless following Typhoon
health care facilities. Most important, through
Sendong in 2012 and Typhoon Yolanda in 2013.
committed, long-term community engagement,
Since then, San Miguel has demonstrated the
we are able to encourage greater civic capacity,
same quick response in the face of calamity,
and give the economically disadvantaged a
donating millions of pesos in relief goods and
voice in their community’s future.
mobilizing to help communities get back on their
feet. The most recent example of its CSR efforts
Better World Tondo, San Miguel’s first 103
was in full evidence during the pandemic.
community center, focuses on food waste,

SUSTAINABILITY REPORT 2022

Between 2020 to 2022, San Miguel donated
hunger, and improving learning outcomes.
close to 530 million PhP in food donations, and
Member families are provided free meals and
almost a billion pesos in medical donations
weekly groceries and after-school learning
alone.
tutorials.
As a company that prides itself in being a
When public schools closed during the
contributor to national development on the
pandemic, our afterschool program run by the
macro level, San Miguel is present at the micro
Foundation’s partner AHA Learning Center
level through the Foundation. Like its parent,
innovated to keep kids safe and engaged,
San Miguel Foundation has taken a problem-
SAN MIGUEL CORPORATION

expanding their hours and services to help

solving approach to address important social
children cope with the challenges of distance
issues. Its key aims are closely aligned with the
learning. AHA also provides its expertise in
company’s social development agenda: lifting
social-emotional learning and trauma-informed
Filipinos out of poverty and strengthening
care to help our students (and their parents)
community and national resilience.
recover emotionally.
 Local community
engagements
Program Project 2022 Coverage

Scholarships 2,844 students

Short-term courses 25 students

Education
88,800 students
Brigada Eskwela
120 schools

1,284 patients

Community clinics 11,359 consultations

8 clinics

Feeding 76,962 meals

Health
1,000 Days project 340 patients

9,000 patients

Medical missions 9 areas

200 hygiene kits per person

74 persons

Enterprise Livelihood assistance 6 areas

11 people’s organizations

Housing Housing and water provision 280,359 houses

Infrastructure Road access 19,644,794 vehicles or motorists

104

Arts and culture Showcase 11 artists

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Restoration & conservation 58 sites

100 square meters

Environmental
Coral rescue program 25 species

25 kilo biomass

1,800 persons

Better World Tondo Membership services 365 families

194 students

Better World Cubao Membership services 665 women

Better World Diliman Farmer’s produce program 4,500 farmers

 KALINGA

The impact of COVID-19 had acute effects of those who might otherwise be attracted to
on women, including a rise in gender-based agriculture. SEED Sumilao adopts a holistic
violence amid lockdowns, women’s loss of approach to teaching through classroom
economic security, and increased demands in instruction, hands-on learning, and enterprise
the home that fall largely on women. development. Students take on a raft of courses
that center around character development,
Designed to be a safe space for women and enterprise management, communications, and
mothers in nearby communities—a place where farming technology. During the pandemic, the
they can share their stories and silent struggles school’s focus shifted given the urgent need
and find the support they need—Better World to strengthen local food production and create
Cubao H.E.R. (Health, Empowerment, Recovery) more resilient and reliable food systems.
Center is the Foundation’s newest Better World
initiative. San Miguel Foundation and AHA Health is another major focus area for San
have developed a comprehensive approach Miguel. Through a network of community
to women’s overall health and well-being, clinics, San Miguel continues to provide its host
empowering women to advocate for themselves communities with better access to healthcare
and one another. services. Every year, over 1,200 individuals
benefit from healthcare services offered for
As we see it, each of San Miguel’s Better free at San Miguel Brewery community clinics
World initiatives helped build communities in Valenzuela, Pampanga, Davao, and Cebu,
where values and citizenship, and participation San Miguel Mills’ community clinic in Batangas,
matter—where people can hope for a better life and the Petron Community Health Center in
and be self-propelled to seek it. Pandacan and Bataan.

One of the keys to ending hunger and poverty These clinics, though small in scale, provide
in both rural and urban areas is to enhance specialist care, particularly for patients with
linkages. Launched in February 2021 as a diabetes, tuberculosis, and other cardiovascular
response to the disruption in supply chains, diseases. San Miguel, through the San Miguel
Better World Diliman serves as a ready Foundation, also runs regular medical missions
marketplace for fruits and vegetables rescued and outreach programs in far-flung communities
by our partner Rural Rising. where basic healthcare services are wanting.
105
As of June 2022, we have rescued 950,000 kg Another long-running, high-impact initiative of

SUSTAINABILITY REPORT 2022

of produce and helped some 4,500 farmers the Foundation is its First 1,000 Days project
throughout the Philippines. Apart from food for mothers and babies, a health and nutrition
rescue, Better World Diliman provides training intervention program starting from the mother’s
and access to farming inputs and other conception up to the child’s second birthday. The
resources to promote resiliency in the face of program, spearheaded by San Miguel’s Food
disruption and market shocks. group, aims to address the wasting and stunting
of Filipino children by focusing on an infant’s
Another of San Miguel’s flagship community growth trajectory, providing nutritious food,
programs is the School for Experiential and promoting healthy routines and behaviors, and
Entrepreneurial Development (SEED) Sumilao reducing health disparities among vulnerable
SAN MIGUEL CORPORATION

through which we strive to promote the children and families.

welfare of agricultural communities while
helping ensure food security. Through a
partnership with SEED Philippines, we hope to
raise the next generation of farmers and agri-
entrepreneurs. Farmers and farm workers are
undervalued in our society, driving away many
 During the pandemic, guerrilla gardening
initiatives became relevant as urban farming
programs. Backyard Bukid is a 1,000-square-
meter, volunteer-led farm located at the
Company’s headquarters in Mandaluyong City. The
training was provided by San Miguel Foundation
partner, SEED Philippines, to SMC maintenance
and support staff, prioritizing organic farming
methods and the production of valuable edible
crops. Whatever produce is grown on the farm
augments their families’ daily dietary needs
or allows them to earn extra income. In 2022,
Backyard Bukid’s volunteer farmers harvested 15
crops from okra and string beans to romaine and
kale. The total harvest amounted to 475 kilograms
of vegetables, with 17 member volunteers earning
4,000 PhP each over three harvests.

106
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Seeding
Self-sufficiency
Better health,
stronger communities
The ambition to deliver more and better health services in the community is
not new, but for a company whose portfolio of businesses does not extend to
health services, San Miguel nevertheless has invested heavily in a network
of six clinics in its fenceline communities throughout the Philippines: three
of which are in Luzon (Valenzuela, Pampanga, Batangas); two in the Visayas
(Bacolod and Cebu); and, one in Mindanao (Davao del Sur).
Managed by San Miguel Foundation in close
coordination with the barangay health office, our 107
community health services provide support across

SUSTAINABILITY REPORT 2022

a range of needs and age groups and are most
often used by children, older people, or those
living with chronic conditions such as diabetes or
heart disease.

SMC’s clinics in San Fernando, Pampanga are

secondary clinics specializing in lifestyle-related
diseases. The remaining four are primary health
clinics. Barangay health workers identify and
endorse patients, and the clinics serve as one-
SAN MIGUEL CORPORATION

stop service outlets for health, family planning,

and nutrition, focused on comprehensive
preventive, basic curative health services, and
health education. Our clinics have earned the
local community’s confidence, evidenced by
ever-increasing utilization. In 2022 alone, close
to 900 patients were served across all six clinics
resulting in 8,705 visits.
 While figures in the Philippines are not
readily available, it is estimated that 25%
to 30% of the food that passes through our
kitchens goes to waste.

This is one of the major motivations behind Better

World Tondo (BWT), San Miguel’s first Better
World community center. Located at the epicenter
of communities marred by hunger and grinding
poverty, the community center primarily focuses
on food waste and hunger, while also acting as a
learning center that works at improving academic
108 outcomes. Together with the hunger relief
organization, Rise Against Hunger Philippines
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(RAHP), we distribute food that would otherwise

be destined to a landfill to society’s most
vulnerable, where a day’s meal consists of food
scraps collected from a nearby dump.

Since opening in 2019, BWT has received

donations worth roughly 87 million PhP. Over a
three-year period, the estimated amount of food
diverted from landfills donated by San Miguel is
1,768 MT. In 2022 alone, BWT received over 85
MT of food and beverage products from various
companies, enough to feed 23,455 families and
serve 76,962 meals.

In addition, as RAHP manages a national network

of redistribution charities, SMC is also able to
provide surplus food to urban centers in Visayas
and Mindanao.
 Food
Rescue
SAN MIGUEL CORPORATION SUSTAINABILITY REPORT 2022
109
110
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GOOD FOR PROGRESS

SAN MIGUEL CORPORATION SUSTAINABILITY REPORT 2022
111
 Sustainable Supply Chain
TOTAL SPENDING ON
It has been said that without the last UN SDG, LOCAL SUPPLIERS

200.5
SDG:17 Partnership for the Goals, achieving the
other 16 goals would be impossible. Forging
transformative partnerships and collaborations
is vital in unlocking the greatest possible Bn PhP
impact from sustainability initiatives. It creates
multiplier effects and In 2022, we spent 53% of our total procurement
even makes possible a systems-level reset— budget on local businesses, representing 200.5
feats that can never be achieved by going at it billion PhP in local spending. By sourcing
alone. locally, we hope to provide a big boon to
the local economy, especially to our host
In San Miguel, we strive to form positive communities and our fellow Filipinos. We intend
alliances outside the four walls of our business, to build capacity at the grassroots level and
first within our ecosystem of suppliers. We create more partner businesses that will grow
regard our suppliers as partners in value and thrive with San Miguel. Lastly, by tapping
creation and work with them in full trust local suppliers, we aim to help the environment
and transparency. We believe that a genuine through reduced emissions and energy usage
alliance with our suppliers will help us tackle by eliminating shipping and storage associated
industry-wide challenges, innovate, and test with importation.
new technologies together, and overall find
opportunities to improve lives. On Course for a Fully Ethical and
Sustainable Supply Chain
To form a truly beneficial partnership, our
suppliers and we help each other elevate our To succeed in building a more sustainable
individual sustainability journeys by instituting supply chain, we have laid the groundwork
initiatives that inculcate ethical and sustainable for corporate governance in our procurement
practices in our end-to-end supply chain. practices. We have established a group-wide
Procurement Policy Manual that promotes the
112
Supporting Local Businesses adoption of good governance principles among
our suppliers and advances ethical principles
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As one of the Philippines’ largest and most throughout our supply chain.
diversified conglomerates, we have more than Our Corporate Procurement Group centrally
100 major facilities all over the country and manages supplier accreditation for all our
the Asia Pacific. As such, we need a steady and business units, except for Petron, which
reliable supply of raw materials and services for separately manages its supplier accreditation.
our businesses to run optimally. Our supplier processes ensure superior quality,
cost efficiency, and timeliness of delivery of
53% materials and services to our various facilities.

More recently, in 2022, we took the opportunity

to further embed ESG principles in our
47% supply ecosystem by enhancing our Supplier
Code of Conduct. The updated Code of
Conduct underlines our strong commitment
LOCAL SUPPLIERS to doing business in an ethical, legal, and
FOREIGN SUPPLIERS environmentally and socially responsible
manner. It applies to all our suppliers,
 KASAGANAHAN

personnel, agents, subcontractors, and entities

engaged by our businesses to provide goods
and services. In San Miguel, we strive
to form positive alliances
Apart from addressing compliance with anti-
bribery, anti-fraud, data privacy, and fair-trade outside the four walls of
standards, our Supplier Code of Conduct
has enhanced sections on environmental, our business, first within
occupational health and safety, and labor our ecosystem of suppliers.
practices.
We regard our suppliers as
On environmental practices, we ask our
suppliers to continually look for ways to
partners in value creation
minimize consumption of energy and resources and work with them in full
and the generation of GHG emissions and
waste in their businesses. We also require trust and transparency.
them to comply with environmental laws and
regulations applicable to their operations
worldwide.

On occupational health and safety, we urge Going forward, we will request our suppliers
our suppliers to provide a safe and healthy to fill out a sustainability checklist, which
working environment for all their employees is a comprehensive questionnaire on social
that includes appropriate training, a system for accountability and environmental management.
reporting injury and illness, medical treatment
for any injuries sustained at work, and clean and To read more about our Procurement Policy
safe facilities. Furthermore, we mandate our Manual and Supplier Code of Conduct, please
suppliers to comply with all relevant local and visit SMC’s company website: https://www.
national laws and regulations such as DOLE’s sanmiguel.com.ph/page/company-policy.
OSH requirements.
Achieving a fully ethical and sustainable supply
On labor practices, we expect our suppliers to chain is a journey and demands constant
113
treat their workers fairly and with respect and engagement with our suppliers. In 2022, we
conducted an initial engagement with the top

SUSTAINABILITY REPORT 2022

dignity. Our suppliers must comply with laws on
forced labor, child labor, human trafficking and 20 suppliers of each of our business units to
slavery, and minimum wage, to name a few. We survey their ESG performance, a total of 263
also encourage our suppliers to exercise due unique suppliers in all, accounting for 18% of
diligence in selecting their own suppliers and spend. It is noteworthy that more than 52% of
subcontractors in order to ensure responsible 188 respondents have external certifications
sourcing throughout the supply chain. such as ISO 14001: Environmental Management
Systems.
The Supplier Code of Conduct is an important
element of our supplier accreditation process. In the coming years, we intend to do more. For
SAN MIGUEL CORPORATION

We ask our suppliers to study and agree to 2023, we have set a target of over 500 suppliers
the Code of Conduct as a pre-requisite to (all top suppliers of SMC and accounting for
registration. By virtue of this, no suppliers of over 50% of the total procurement spend) with
SMC were identified as having significant risk whom we will have regular dialogues on ESG to
of incidents related to child labor or exposing help raise their sustainability performance for
young workers to hazardous working conditions everyone’s collective benefit.
in 2022.
 Changing the landscape
for corn farmers
The stories of struggle, risk, and worries The program required a lot of pre-work, with
of over 122 corn farmers across the the procurement and agribusiness development
groups conducting interviews and profiling studies
country sounded all too familiar as the to determine the various parameters in corn
Company engaged them in consultation farming. Eventually, partnerships with farmers
114 meetings. The meetings were meant to were established and the program took off.
introduce them to a new way of doing
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The program yielded better margins both for the

business — a direct corn-buying program
farmers and the Company. As payment for the
of SMFI that would bypass their usual harvest is deposited directly to farmers’ bank
channels. accounts within 2-3 days of delivery, farmers are
able to immediately recover their costs and have
As corn is one of the key ingredients of animal cash available for other expenses.
feeds, and with the continuing expansion of the
Company’s feed mills, the direct buying program is During the first year, San Miguel Foods purchased
as essential to the Company’s feeds business as it over 35,000 MT of corn. As the program continues
could be for the farmers themselves. With global to expand, so do stories of corn farmers bouncing
feed commodity prices reaching unprecedented back from huge debts incurred during the
highs in 2022, local corn supply became more pandemic. Today, farmers involved in the program
critical than ever, but a stalled economy at the end are more liquid and better prepared for any crisis.
of the pandemic did not provide farmers enough Some were even able to purchase their own
capital to expand their output. delivery trucks and more equipment. With the
improvement in their quality of life, these farmers
have encouraged their families and other farmers
to join the program and enjoy its benefits.
Growing Hope
“Noong 1996, ako nagsimulang magtanim. Simula
noon, naranasan ko na ang iba’t-ibang suliranin
sa pagsasaka, katulad ng madalas na pagbagyo,
mga insekto sa pananim, kakulangan sa imbakan
or storage, pagpapatuyuan ng mais, madalasang
pagbabago ng teknolohiya sa pagtatanim, mataas na
gastusin sa pananim, mahirap na daanang farm to
market roads, at ang hirap sa pakikipagtransaksyon
sa mga buyers na madalas pang manipulahin ang
presyo at timbang na kulang pa na pangpuhunan at
kapital. Sa pag-asam ko na mapaunlad ang aking
mga kagamitan sa pagsasaka nagkaroon ako ng mga
utang na naging dahilan upang makontrol na ng aming
pinagkakautangan or financier ang mga binebenta
naming mais. Sa mababang halaga na lamang naming
ito naibebenta at minsan pa kahit konting dumi lamang
ay mas lalo pang binababaan pa ang presyuhan sa
amin.

Naging iba ang ihip ng hangin ng makausap ko at

makilala ang isang tauhan ng B-MEG na nagpaliwanag
sa akin ng programang ito. Hindi ako makapaniwala
dahil bilang isang simpleng magsasaka hindi ko maisip
na makakapagsupply ako sa pangarap kong kumpanya
“Ako po ay dating OFW sa Saudi, (SMC). Ako’y nagagalak dahil sa 25 years kong
nagsumikap po akong makabili pagsasaka ay makararanas na din ang aking pamilya
ng kapanatagan at kaginhawaan.
ng sariling lupa. Nang nakaipon, 115

nagdesisyon akong umuwi at Marami pang magandang naidulot sa aming

SUSTAINABILITY REPORT 2022

mga farmers ang pakikipag-ugnayan at
makasama na ang aking pamilya.” pakikipagtransaksyon sa San Miguel Foods/B-MEG.
Samuel Lago Una po rito ang kasiguraduhan ng presyo ng mais.
Corn farmer for 25 years Kampante po ako na hindi magkakaroon ng iregular or
biglang pagbaba ng presyo ng aking mais. Pangalawa,
ang maayos at tamang pagtitimbang at pagsusuri ng
kalidad ng aming mga mais. Pangatlo po ang mabilis
na transaksyon at pag-galaw ng aming mga mais.

At ang panghuli, bilang isang farmer dinanas

SAN MIGUEL CORPORATION

naming madalas mabaon sa utang at mabigyan ng di

makatarungang pagpresyo sa aming mga mais. Ngunit
dahil sa B-MEG nagkaroon kami ng kapanatagan ng
isip at motibasyon na ipagpatuloy ang pagtatanim.

Sana po ipagpatuloy ninyong suportahan ang maliliit

na farmers na katulad namin. Maraming salamat.”
 Business Ethics and Our dedication to good governance is further
evidenced by the requirement that the Board
Compliance of Directors and key officers attend continuing
training on corporate governance, including
courses on developments in business and
San Miguel Corporation stands firm in its regulatory environments and emerging
commitment to the highest standards of risks relevant to the Company. First-time
integrity, fairness, and honesty in all of its Directors receive orientation on their duties
business affairs. Upholding these principles and responsibilities, covering SEC-mandated
is not just a matter of good practice, but a topics on corporate governance, and an
fundamental pillar of the Company’s success. introduction to the Company’s business, Articles
We believe that to build a truly sustainable of Incorporation, and Code of Business Conduct
enterprise, a culture of good governance and Ethics.
must permeate throughout all levels of the
organization. Thus, we have implemented Our Code of Ethics and Conduct reflects our
policies and programs that promote ethical unwavering commitment to ethical business
business practices. At the heart of our efforts practices, fair dealings, respect for trade
is our Manual on Corporate Governance, secrets and confidential information, and the
which serves as a comprehensive guide responsible use of Company funds and assets.
to implementing and institutionalizing the Our Compliance Officer ensures that the
principles of good governance throughout the Code of Ethics is properly disseminated to all
entire San Miguel Group. directors, senior management, and employees.
Furthermore, all employees are provided with
Pursuant to this, we also established a a copy of the SMC Employee Handbook and are
Corporate Governance Committee, which is required to acknowledge receipt of the same.
responsible for overseeing the implementation By acknowledging, employees state that they
of our corporate governance framework, understood its contents and commit themselves
ensuring that the policies and procedures to comply with the items contained therein,
remain relevant, and periodically evaluating including SMC’s core purpose and values and
the performance of the Board and executive the policies governing the Company’s activities.
116
management.
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We also have policies in place to promote

proper business conduct. Our Whistle-blowing
DIRECTORS AND OFFICERS TO WHOM Policy encourages our employees, suppliers,
ANTI‑CORRUPTION POLICIES AND and other stakeholders to report any suspected
PROCEDURES WERE COMMUNICATED
wrongdoing within the organization. This

100%
policy protects informing employees and
others from retribution or retaliation by
ensuring confidentiality. All bona fide cases
are investigated, and if necessary, audited.
Critical concerns are communicated through the
proper channels, and if they are related to anti-
corruption, then they are referred to the Audit
Committee of the Board.
 KASAGANAHAN

classifying and managing information, we are

able to protect data against theft, cyberattacks,
Under our No Gifts Policy, and other forms of malicious activity. At the
we ask our employees not same time, we recognize the importance
of transparency and collaboration with our
to accept personal favors stakeholders, and we classify information as
or gifts from individuals public to ensure that the right people have
access to the right information.
or entities doing
business with the Group, At San Miguel, our dedication to good corporate
governance is not just a matter of good practice
including in matters of — it is a fundamental pillar of our success.
hiring and awarding of Our efforts to promote responsible and ethical
business conduct, through our policies and
contracts. Transactions training programs, serve as a testament to our
with the government commitment to excellence in all aspects of our
business operations.
and regulators are
done with the highest In 2022, there were zero reported incidents of
corruption in the Group. Moreover, there were
level of transparency no legal actions regarding anti-competitive

to foster trust with our behavior and violations of antitrust and

monopoly legislation that were pending or
stakeholders. completed during the period.

Our Manual on Corporate Governance, Code of

Ethics and Conduct, and other policies are
We have a Conflict of Interest Policy that found on SMC’s company website at https://
requires all directors, officers, and employees to www. sanmiguel.com.ph/page/company-policy.
disclose any potential conflicts of interest. The 117
expectation is that employees’ actions are made

SUSTAINABILITY REPORT 2022

in the best interest of the Group.

Under our No Gifts Policy, we ask our REPORTED INCIDENTS OF CORRUPTION,

LEGAL ACTIONS REGARDING
employees not to accept personal favors or gifts ANTI‑COMPETITIVE BEHAVIOR, AND
from individuals or entities doing business with VIOLATIONS OF ANTITRUST AND
the Group, including in matters of hiring and MONOPOLY LEGISLATION

zero
awarding of contracts. Transactions with the
government and regulators are done with the
highest level of transparency to foster trust with
SAN MIGUEL CORPORATION

our stakeholders.

Furthermore, we prioritize the protection of

sensitive information through our Information
Security Management System. By carefully
 Risk Management In today’s rapidly evolving
business landscape, we are
Risk management in the current context no committed to maintaining
longer serves its sole purpose of avoiding risks;
rather, it evolved to become a structure in a robust risk management
decision making that maximizes opportunities to
achieve business objectives while maintaining framework that enables us
risks at acceptable levels for the company. We to seize opportunities and
have been practicing risk management since
the late 1990s but are on our way to formally achieve our objectives.
adopting an Enterprise Risk Management (ERM)
framework within 2023.
Currently we are looking into how the guidelines of
We have institutionalized the ERM process in the TCFD can be incorporated into our current ERM
SMC parent company with the assistance of structure.
SGV & Co. We collaborated with representatives
from our different departments to ensure Another potential risk is in the area of procuring
a holistic and cross-functional view of the goods and services. At San Miguel, we recognize
exposures faced by the Group. We identified and the immense importance of procurement in
prioritized critical business risks and developed our operations and the impact it can have
risk strategies to manage or mitigate the on our business. Thus, we have established
occurrence and impact of the risks. We crafted the Procurement Governance Group (PGG),
comprehensive action plans to implement these which exercises guidance and oversight over
strategies. procurement activities across San Miguel. The
PGG is responsible for (1) reviewing existing
Our Risk Management Executive Team, headed procurement policies, guidelines, and procedures,
by our Chief Risk Officer, defines our risk and establishing necessary and appropriate
priorities, aligns risk policies and strategies process improvements in collaboration with all
with our overall company plan, monitors the functions concerned; (2) conducting compliance and
effectiveness of our strategies, and reports the operational audits on procurement transactions;
118 status of implementation of our action plans and (3) identifying training programs for existing
pertaining to risks. personnel to enhance their skills in all aspects of
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the purchasing process. In addition, as part of our

As risks and opportunities emerge over time, pre-emptive measures, procurement personnel
we will make evaluations periodically to keep are periodically rotated among different business
abreast of the exposures of the company and units. This will not only serve as a preventive
assure stakeholders that our management measure, but also provide our staff with valuable
is fully updated on the potential threats developmental opportunities.
surrounding the continuous operation of SMC.
In today’s rapidly evolving business landscape,
A key exposure that presents significant risk we are committed to maintaining a robust risk
to the continuity of our operations is climate management framework that enables us to seize
change. Climate-related catastrophes—such as opportunities and achieve our objectives. By
typhoons, droughts, and floods—may disrupt keeping a keen eye on emerging risks, such as
our operations and the delivery of our products climate change, and taking pre-emptive measures
and services. As such, we continue to develop to address them, we are ensuring the continuity of
initiatives to both mitigate and adapt to ongoing our operations and strengthening the trust of our
and possible impacts of climate change. stakeholders in our brand.
Nothing left
to chance
In a world where risk is the norm, Petron are addressed, the results of these assessments
stands out as a company that refuses to are funneled up to the Management Committee
leave anything to chance. That’s why they and subsequently the Board of Directors through
have implemented a robust enterprise the annual Business Planning process.

risk management system that focuses on But Petron does not stop there. They have
identifying and managing potential risks designated specific corporate units with special
even before they become actual issues. duties to ensure effective oversight and technical
assistance. For example, the International
Petron’s approach to risk management is built on a Trade Finance Section, under the Treasurers
foundation of good governance and sustainability. Department, oversees foreign exchange hedging
They recognize that managing risks not only transactions. The Transaction Management Unit,
protects their business, but also helps to ensure operating under the Controllers Department,
119
the safety of their employees, the communities in provides backroom support for all financial
which they operate, and the environment. transactions. The Corporate Technical Services

SUSTAINABILITY REPORT 2022

Group is responsible for ensuring compliance with
Petron’s operations follow an integrated value domestic and international standards for health,
chain, which means risks can arise from every safety, and environment. Lastly, the Internal
process and even cut across different divisions. Audit Department is tasked with implementing
The major risks managed by Petron are foreign a risk-based auditing approach to ensure the
exchange risk, potential operational disruptions, effective implementation of its risk management
profit margin and cash flow risk, and regulatory framework.
risk. These risks could have a significant negative
impact on the company if left unchecked. By adopting a comprehensive approach to
SAN MIGUEL CORPORATION

risk management, Petron ensures that they

Following a bottom-up approach, each of its are not only prepared for the unexpected but
divisions is required to conduct regular risk also able to operate sustainably in the long
assessments to identify and map potential risks, run. With a commitment to good governance
with action plans formulated to manage them and sustainability, they are able to build trust
effectively. This proactive approach ensures that with their stakeholders, create value for their
risks are identified and mitigated, no matter how shareholders, and contribute to the well-being of
small or large they may be. To ensure that all risks the communities in which they operate.
 Digital Transformation
Starting in 2018, we
We see digital transformation as a key driver
shifted our processes to a
of sustainable development, whether it is in
automating and digitizing processes to improve cloud platform. This has
productivity or in investing in new technologies
and innovation that future proof our businesses. enabled us to increase
our disaster recovery
We began streamlining our manual processes
in 1995, which led to adopting integrated capabilities, reduce
Enterprise Resource Planning systems for
financial consolidation, treasury, sales and
reliance on on-premise
manufacturing operations. Since then, we have infrastructure, and
periodically updated our systems, taking into
account our business continuity and disaster improve energy efficiency.
recovery plans and our information security
governance. In doing so, we have operated more
efficiently, reduced costs, and enhanced our
competitiveness in the market.
in compliance with the DENR EMB’s Hazardous
Starting in 2018, we shifted our processes to a Waste Management standards.
cloud platform. This has enabled us to increase
our disaster recovery capabilities, reduce On IT governance, we have implemented robust
reliance on on-premise infrastructure, and governance protocols to ensure compliance
improve energy efficiency. with policies and guidelines, thereby promoting
a digitally safe work environment. Information
We have also implemented several IT security and cybersecurity measures are
innovations throughout the years. These include comprehensively managed through an
automation through workflow approval and established framework that safeguards
launching various systems for management company assets and data.
reporting, business controls, financial
120
consolidation and reporting, and regulatory There are many other examples of initiatives
within the Group that aim to digitally transform
READY FOR TOMORROW

compliance.
our ways of doing business for the better.
To promote sustainable energy consumption, we
procure only TCO Certified desktops, laptops, e-Commerce
and printers. TCO Certified is the world’s most We leverage online selling platforms to improve
comprehensive sustainability certification for product accessibility. In 2022, we relaunched
IT products. Furthermore, we have undertaken an online ordering system called San Miguel
initiatives to pursue consolidation of our servers Mart as a mobile app and continued to utilize
through virtualization and having an energy- the country’s top e-commerce sites to sell our
efficient data center. By adopting inverter- products.
type technology for our cooling systems and
modifying the DC rack design, we have reduced Digital Marketing
our power consumption from these systems by Our Food Division connects and interacts with
30% and 15%, respectively. Our lower energy our consumers through digital media in the
consumption decreased the carbon footprint form of ads, online baking demonstrations, live
from our data centers. Additionally, we ensure veterinary consultations and webinars. Their
proper disposal of our IT assets and equipment consistent release of relevant and engaging
 KASAGANAHAN

digital content has effectively drawn audiences

to our social media platforms. To date, our
Magnolia Chicken, Purefoods Tender Juicy
Hotdog, and Home Foodie Facebook pages have
more than one million followers. Meanwhile, our
Spirits Division has also delivered innovative
and engaging campaigns across all its brands,
such as cocktail making videos that showcase
the unique flavors and versatility of its products.
Its flagship brand Ginebra San Miguel has
garnered acclaim for its digital advertising
automated equipment for palletizing. Moreover,
campaigns, winning the Catholic Mass Media
glass molds are produced using modern
Award for Best Digital Ad for three straight
machining technologies to provide total mold
years (from 2020 to 2022).
and machine solutions at superior quality.
121
The lithograph sheets used for metal crowns
Technical Leadership
and lug caps utilize ultraviolet or UV printing

SUSTAINABILITY REPORT 2022

Our Beer and NAB Division employs state-
technology to achieve long-lasting, more
of-the-art brewing technology. Our highly
vibrant, and clearer labels of metal closures,
experienced brewmasters and quality assurance
while minimizing VOCs in the process. Finally,
practitioners provide technical leadership and
its plastic pallets and slatted plastic flooring
direction to continuously improve and maintain
for poultry houses have several designs that
the highest standards in product quality.
are tailored to meet the unique needs and
New products and variants are explored and
preferences of customers.
attuned to the evolving consumer profile and
preferences.
Robotics
SAN MIGUEL CORPORATION

We are among the pioneers of robotic palletizing

Innovative Packaging
system in the domestic feeds industry, which
Our Packaging group maintains advanced
can perfectly stack 42 bags of feeds in just
manufacturing facilities and best practices in
under five minutes; hence resulting in shorter
packaging procedures. Its glass manufacturing
cycle times, increased productivity and less
facility in Cavite uses robotic technology in
wastage from torn bags. As of end-2022, six
its glass forming processes as well as highly
feed mills have robotic palletizers in place.
 Data Privacy and Security
We are committed to
Our Data Privacy and Security Office (“DPSO”)
compliance with the
was organized in 2017 to ensure the compliance
of the Group to the Data Privacy Act of 2012. The Privacy Laws, fulfilling
DPSO primarily governs the efforts of all our
business units in data privacy compliance and our accountability to data
leads the Group in our data privacy initiatives. subjects, and observing
DPSO is a unit under the Office of the President ethics and governance in
led by its Data Protection Officer (DPO). It works
hand in hand with the SMC Compliance Officers
data protection.
for Privacy (COP) Council, composed of COPs
of our corporate service units. The DPSO also
oversees the compliance of our subsidiaries
through the SMC DPO Council, which is
composed of Data Protection Officers from our COMPLAINTS CONCERNING
business units. BREACHES OF CUSTOMER PRIVACY

Compliance is monitored through the conduct

of Privacy Sweeps, Onsite Visits and Privacy
zero
Impact Assessments, and regular monitoring
of SMC and the businesses’ compliance to data
privacy. LEAKS, THEFTS, OR LOSSES
OF CUSTOMER DATA

To build a culture of data privacy in the Group,

DPSO conducts regular Data Privacy Awareness
training for new employees and focused groups.
zero
SMITS subsidiary, ProSync, has been accredited
as a training institution for the DPO Ace Level 1
We are committed to compliance with the
Program to train data protection practitioners of
122 Privacy Laws, fulfilling our accountability to data
the Group as well as external participants.
subjects, and observing ethics and governance
READY FOR TOMORROW

in data protection. For 2022, there were no

San Miguel and its DPO were awarded in 2021
reported complaints concerning breaches of
by the National Privacy Commission as the
customer privacy and no identified leaks, thefts,
Personal Information Controller of the Year and
or losses of customer data.
DPO of the Year, respectively. In the same year,
the SMC DPO Council was also a finalist under
the category of Privacy Initiative of the Year.

Our DPSO and its DPO have been extending

their activities including training, seminars and
advisory, to affiliates and partners, as well as
to the data privacy community. Our DPO is the
president of the NPC Data Privacy Congress
for 2023 and representative of the Retail and
Manufacturing Sector in the Data Privacy
Council.
MOVING FORWARD
STATEMENT
During these last two and a half years of the pandemic, we
opened our eyes to the impacts of human behavior on climate
change and how our role as a leading Philippine corporation
might improve Filipinos’ lives. We know that our collective
action will impact the energy sector, transport, manufacturing,
and supply chains.

Recognizing SMC’s impact areas and ESG issues is a starting

point to harness our company’s influence and size for good.
In this Report, we have communicated our sustainability
goals and targets to you for the first time, making ourselves
accountable.

While our biggest challenges remain attaining our carbon-

neutral goals, we have a long tradition of successful circular
and even regenerative practices. We are developing a more
detailed roadmap to arrive at these targets, allowing us to
benchmark or measure where and how we need to take further
action to achieve our targets. We are confident this will lead to
even greater innovation and advancement of our goals.

We will harness leadership,

imagination, and courage to create a
world of good for present and future
123
generations, and we will work hand

SUSTAINABILITY REPORT 2022

in hand with everyone in the over
50,000-strong San Miguel family to
bring this to fruition.

Sustainability is all about embracing change, and we

understand that the longer we wait to adopt sustainable
practices, the narrower our choices become.
SAN MIGUEL CORPORATION

You can count on San Miguel to take an active role in solving

social and environmental problems in a way that can deliver
for us tangible and mutually reinforcing triple bottom-line
results.

We look forward to reporting to you on our progress.

 APPENDICES
Scope and Coverage of the Report
Food and Beverage
• San Miguel Food and Beverage, Inc. (SMFB)
• San Miguel Brewery, Inc. (SMB)
• Ginebra San Miguel Inc. (GSMI)
• San Miguel Foods, Inc. (SMFI)
• The Purefoods-Hormel Company, Inc. (PHC)
• Magnolia Inc. (MI)
• San Miguel Mills, Inc. (SMMI)
• San Miguel Super Coffeemix Company, Inc. (SMSCCI)
• Golden Bay Grain Terminal Corporation (GBGTC)

Packaging
• San Miguel Yamamura Packaging Corporation (SMYPC)
• Mindanao Corrugated Corporation (MINCORR)

Fuel and Oil

• Petron Corporation (Petron)

Energy
• San Miguel Global Power Holdings Corporation (SMGP)

Infrastructure
• San Miguel Holdings Corporation (SMHC)

Others
• San Miguel Properties Inc. (SMPI)
• Northern Cement Corporation (NCC)
124 • SMC Shipping and Lighterage Inc. (SMCSL)
• SMC Asia Car Distributors Corporation (SMCACDC)
READY FOR TOMORROW

• San Miguel Information Technology Services, Inc. (SMITS)

Process Synergy Inc. (ProSync)
• San Miguel Integrated Logistics Services, Inc. (SMILSI) and affiliate companies

Notes:
* A number of entities and operations are covered by the Company’s 2022 Annual Report that are not in
scope of this Report, namely: (a) SMC’s international operations, (b) SMHC’s Aerocity project, (c) Eagle
Cement Corporation, and (d) Bank of Commerce.

** SMHC’s Aerocity project is not in scope, as the project is still in the very early stages of development.
Nonetheless, the project’s ESG impacts are being governed by the International Finance Corporation
according to internationally recognized standards.
*** Eagle Cement’s ESG data is not yet included in this Report as its acquisition was completed at the end
of 2022.

**** Bank of Commerce’s ESG data is not yet included in this Report, being an affiliate of SMC whose
performance is not consolidated with the Group.
ESG PERFORMANCE INDICES
ECONOMIC
ECONOMIC PERFORMANCE
2022 Unit
Direct economic value generated (revenues) 1,515,784 Mn PhP
Economic value distributed 1,455,529 Mn PhP
Operating costs (including payment to suppliers) 1,131,377 Mn PhP
Employee wages and benefits 45,090 Mn PhP
Payments to providers of capital (investors and shareholders) 103,033 Mn PhP
Payments to government (taxes) 175,388 Mn PhP
Community investments (expenses for CSR projects) 641 Mn PhP
ECONOMIC VALUE RETAINED 60,255 Mn PhP

ENVIRONMENT
GHG EMISSIONS
2022 Unit
Scope 1 GHG emissions 17,485,337.68 MT CO2e
Scope 2 GHG emissions 728,258.25 MT CO2e
Emissions of ozone-depleting substances Not yet being monitored

GHG INTENSITY
2022 Unit
GHG emission intensity (Scope 1 & 2) 15.81 MT CO2e / Mn PhP Sales Revenue

BIOGENIC CO2 EMISSIONS

2022 Unit
Biogenic CO2 emission (Scope 1) 84,957.13 MT CO2e
Biologically sequestered CO2 emission Not yet being monitored
125

SUSTAINABILITY REPORT 2022

GHG REDUCTION
2022 Unit
Fuel reduction 3,861.21 MT CO2e
Electricity reduction 5,730.52 MT CO2e
Total GHG reduction 9,591.73 MT CO2e

NON-GHG EMISSIONS
2022 Unit
Nitrogen oxides (NOx) 11,616.77 MT
SAN MIGUEL CORPORATION

Sulfur oxides (SOx) 37,097.25 MT

Particulate matter (PM) 1,127.70 MT
Carbon monoxide (CO) 2,515.56 MT
Persistent organic pollutants (POPs)
Volatile organic compounds (VOCs) Not yet being monitored
Hazardous air pollutants (HAPs)
*Excludes non-GHG emissions from mobile sources such as motor vehicles, forklifts, earth movers and other construction
equipment, and ships and boats.
 ENERGY CONSUMPTION
2022 Unit
Energy consumption (renewable sources) 594,842.04 GJ
Energy consumption (non-renewable) 187,776,704.90 GJ
Energy consumption (electricity, heating, cooling, steam) 3,660,396.89 GJ
Self-generated energy which are not consumed 840,099.95 GJ
Sold Energy (electricity, heating, cooling, steam) 43,575,701.56 GJ
TOTAL NET ENERGY CONSUMPTION 149,296,342.22 GJ

ENERGY INTENSITY
2022 Unit
Energy intensity ratio for the organization 129.56 GJ/Mn PhP
Absolute energy consumption 149,296,342.21 GJ
Normalization factor 1,152,307.39 Mn PhP

OPERATIONAL SPENDING ON ENERGY

2022 Unit
% Operational spending on energy 38.26 %
Operational spending on energy 88,164.87 Mn PhP
Total operational spending 230,421.20 Mn PhP

GRID ELECTRICITY
2022 Unit
% Grid electricity 2.45 %
Purchased grid electricity consumption 3,660,396.89 GJ
Total energy consumption 149,296,342.22 GJ

REDUCTION IN ENERGY CONSUMPTION

2022 Unit
126 Fuel reduction 67,538.26 GJ
Electricity reduction 35,789.72 GJ
READY FOR TOMORROW

TOTAL ENERGY REDUCTION 103,327.98 GJ

 WATER CONSUMPTION
2022 Unit
Water withdrawal 3,070,643.37 ML
Surface water 1,288.95 * ML
Ground water 25,467.74 ML
Sea water 2,978,058.93 ML
Rainwater 474.57 ML
Produced water 206.30 ML
Third-party water 65,146.88 ML
Water discharged 3,054,601.11 ML
Discharged as treated wastewater 2,992,631.5941 ML
Sold as clean water 61,969.70 ML
Stored water (5.50) ML
TOTAL WATER CONSUMPTION 16,036.75 ML
Water recycled and reused 1,457.40 ML
% Water recycled and reused 1.57 %
*Excludes fresh water passing through Angat Hydro Power Plant, which is utilized by the plant for electricity generation. This
water is not under SMC’s control and does not undergo any processing. Rather, the power plant converts the potential energy
of the water into electrical energy. The water is primarily discharged as domestic water supply to MWSS and irrigation water
supply to the National Irrigation Administration.

WATER WITHDRAWAL FROM AREAS WITH WATER STRESS

2022 Unit
TOTAL WATER WITHDRAWAL 2,730,882.01 ML
Surface water 985.94 ML
Ground water 22,447.55 ML
Sea water 2,641,733.26 ML
Rainwater 469.88 ML
Produced water 206.29 ML
Third-party water 65,039.08 ML

WATER DISCHARGE BY DESTINATION

2022 Unit 127
TOTAL WATER DISCHARGE 3,054,601.11 ML

SUSTAINABILITY REPORT 2022

Surface water 7,706.27 ML
Ground water 694.45 ML
Sea water 2,983,311.29 ML
Third-party water 62,889.10 ML
Total water discharge to areas with water stress 2,716,591.85 ML

WATER DISCHARGES
2022 Unit
SAN MIGUEL CORPORATION

Total volume of water discharges 3,054,601.11 ML

% Wastewater recycled 1.57 %

NON-COMPLIANCE WITH WATER-RELATED LAWS AND REGULATIONS

2022 Unit
Total monetary fines for non-compliance 384,000.00 PhP
Incidents for non-compliance (monetary & non-monetary) 13 No.
 COAL ASH MANAGEMENT
2022 Unit
TOTAL COAL COMBUSTION RESIDUALS (CCR) GENERATED 566,641.30 MT
Weight of CCR that was reused or reclaimed 29.68 MT
Weight of CCR recycled (through treatment or processing) 1,655.26 MT
Weight of CCR sent externally for further recycling 290,797.86 MT
% of CCR recycled 51.62 %

SOLID WASTE MANAGEMENT (EXCLUDING COAL ASH)

2022 Unit
TOTAL SOLID WASTE GENERATED 330,553.20 MT
Reused 1,487.57 MT
Recycled 273,076.70 MT
Other recovery operations 24,055.73 MT
Incineration (with energy recovery) 170.50 MT
Incineration (without energy recovery) 6.30 MT
Landfilling 21,194.31 MT
Other disposal operations 10,562.09 MT

SOLID WASTE GENERATED (EXCLUDING COAL ASH)

2022 Unit
TOTAL SOLID WASTE GENERATED 330,553.20 MT
Residual, mixed 10,228.68 MT
Biodegradable, mixed 5,999.42 MT
Ferrous metal 6,476.74 MT
Aluminum 1,243.73 MT
Plastic 4,896.81 MT
Wood 1,715.42 MT
Paper and cartons 7,574.06 MT
Glass, cullets, jars 89,983.89 MT
Tires 176.96 MT
128 Sacks 2,228.03 MT
Mortalities 260.58 MT
READY FOR TOMORROW

Feathers, blood, offals 4,650.23 MT

Spent grains, spent yeast 165,220.74 MT
Inorganic sediment, eggshell, filter aid 11,696.26 MT
Organic sludge, scum 18,201.65 MT
Concrete debris - MT
SOLID WASTE DIVERTED FROM DISPOSAL
2022 Unit
TOTAL SOLID WASTE DIVERTED FROM DISPOSAL 298,620.00 MT
Residual, mixed 265.32 MT
Biodegradable, mixed 1,319.76 MT
Ferrous metal 5,912.86 MT
Aluminum 1,239.72 MT
Plastic 4,745.14 MT
Wood 1,626.70 MT
Paper and cartons 7,142.65 MT
Glass, cullets, jars 89,983.34 MT
Tires 148.96 MT
Sacks 2,202.21 MT
Mortalities 205.60 MT
Feathers, blood, offals 4,623.29 MT
Spent grains, spent yeast 165,216.64 MT
Inorganic sediment, eggshell, filter aid 886.78 MT
Organic sludge, scum 13,101.02 MT
Concrete debris - MT

SOLID WASTE DISPOSED

2022 Unit
TOTAL SOLID WASTE DISPOSED 31,933.20 MT
Residual, mixed 9,963.36 MT
Biodegradable, mixed 4,679.66 MT
Ferrous metal 563.88 MT
Aluminum 4.01 MT
Plastic 151.68 MT
Wood 88.72 MT
Paper and cartons 431.42 MT
Glass, cullets, jars 0.55 MT
Tires 28.01 MT 129
Sacks 25.82 MT

SUSTAINABILITY REPORT 2022

Mortalities 54.98 MT
Feathers, blood, offals 26.93 MT
Spent grains, spent yeast 4.10 MT
Inorganic sediment, eggshell, filter aid 10,809.48 MT
Organic sludge, scum 5,100.63 MT
Concrete debris - MT

HAZARDOUS WASTE MANAGEMENT

SAN MIGUEL CORPORATION

2022 Unit
Total hazardous waste generated 9,552.91 MT
Total hazardous waste transported 8,855.71 MT
 HAZARDOUS WASTE GENERATED
2022 Unit
TOTAL HAZARDOUS WASTE GENERATED 9,552.91 MT
A-Cyanide waste 1.45 MT
B-Acid waste 29.11 MT
C-Alkali waste 26.48 MT
D405-Chromium waste 3.02 MT
D406-Lead compounds 94.09 MT
D407-Mercury and compounds 16.07 MT
D-Other inorganic chemicals 10.41 MT
E-Reactive chemical waste 2,745.98 MT
F-Inks/Dyes/Resins/Organic sludge 288.79 MT
G-Waste organic solvents 227.94 MT
H-Organic waste 127.13 MT
I-Used oil and sludge 5,585.53 MT
J-Containers 282.45 MT
K-Stabilized waste - MT
L-Organic chemicals 0.03 MT
M501-Infectious waste 2.99 MT
M502-Asbestos waste 0.00 MT
M503-Pharma and drugs 0.11 MT
M504-Pesticide - MT
M505-POPS - MT
M506-WEEE 111.34 MT

HAZARDOUS WASTE TRANSPORTED

2022 Unit
TOTAL HAZARDOUS WASTE TRANSPORTED 8,855.71 MT
Reused 113.89 MT
Recycled 2,548.14 MT
Other recovery operations 540.84 MT
130 Incineration (with energy recovery) 201.61 MT
Incineration (without energy recovery) 224.40 MT
READY FOR TOMORROW

Landfilling 60.75 MT
Other disposal operations 5,166.09 MT
HAZARDOUS WASTE DIVERTED FROM DISPOSAL
2022 Unit
TOTAL HAZARDOUS WASTE DIVERTED FROM DISPOSAL 3,202.86 MT
A-Cyanide waste - MT
B-Acid waste - MT
C-Alkali waste - MT
D405-Chromium waste 0.33 MT
D406-Lead compound 20.53 MT
D407-Mercury and compound 1.24 MT
D-Other inorganic chemicals 6.16 MT
E-Reactive chemical waste 0.15 MT
F-Inks/Dyes/Resins/Organic sludge 62.14 MT
G-Waste organic solvents 145.14 MT
H-Organic waste 1.54 MT
I-Used oil and sludge 2,731.37 MT
J-Containers 221.17 MT
K-Stabilized waste - MT
L-Organic chemicals - MT
M501-Infectious waste - MT
M502-Asbestos waste - MT
M503-Pharma and drugs - MT
M504-Pesticide - MT
M505-POPS - MT
M506-WEEE 13.10 MT

HAZARDOUS WASTE DISPOSED

2022 Unit
TOTAL HAZARDOUS WASTE DISPOSED 5,652.86 MT
A-Cyanide waste 1.34 MT
B-Acid waste 15.01 MT
C-Alkali waste 16.31 MT
D405-Chromium waste 0.78 MT 131
D406-Lead compounds 60.48 MT

SUSTAINABILITY REPORT 2022

D407-Mercury and compounds 8.49 MT
D-Other inorganic chemicals 0.42 MT
E-Reactive chemical wastes 668.02 MT
F-Inks/Dyes/Resins/Organic sludge 80.66 MT
G-Waste organic solvents 8.80 MT
H-Organic waste 78.82 MT
I-Used oil and sludge 4,691.00 MT
J-Containers 4.31 MT
K-Stabilized waste - MT
SAN MIGUEL CORPORATION

L-Organic chemicals - MT
M501-Infectious waste 2.00 MT
M502-Asbestos waste - MT
M503-Pharma and drugs 0.01 MT
M504-Pesticide - MT
M505-POPS - MT
M506-WEEE 16.40 MT
 ECOSYSTEM AND BIODIVERSITY
2022 Unit
Operational sites owned, leased, managed in, or adjacent to protected
6 No.
areas and areas of high biodiversity value outside of protected areas
Habitats protected or restored 112.74 Ha.
IUCN red list species and national conservation list species with
14 No.
habitats in areas affected by operations

SOCIAL
All employee-related data exclude those of SMC personnel working in foreign operations
and in subsidiaries not covered in this Report.

NUMBER OF EMPLOYEES BY POSITION

2022 % to Total Employees % to Regular Employees
Regular employees 44,027 88% 100%
Officer 265 1% 1%
Middle manager 1,367 3% 3%
Rank and file 42,395 85% 96%
Consultants 182 0.4%
Project-based employees 5,799 12%
TOTAL EMPLOYEES 50,008 100%

NUMBER OF EMPLOYEES BY AGE

2022 %
Under 30 years old 18,559 37%
Between 30 and 50 years old 27,504 55%
Over 50 years old 3,945 8%
TOTAL EMPLOYEES 50,008 100%

NUMBER OF EMPLOYEES BY GENDER

2022 %
Women 13,582 27%
Men 36,426 73%
132
TOTAL EMPLOYEES 50,008 100%
READY FOR TOMORROW

NUMBER OF EMPLOYEES BY WORK LOCATION

2022 %
NCR 14,989 30%
Cavite 9,042 18%
North Luzon 7,892 16%
South Luzon 9,257 19%
Visayas 3,982 8%
Mindanao 4,846 10%
TOTAL EMPLOYEES 50,008 100%

TRAINING HOURS BY JOB CATEGORY

Total Hours Ave. Hours / Head
Officer 4,979 23
Middle manager 35,105 29
Rank and file 553,279 13
TOTAL 593,363 14
 TRAINING HOURS BY GENDER
Total Hours Ave. Hours / Head
Women 163,381 13
Men 429,982 14
TOTAL 593,363 14

PERFORMANCE REVIEW BY JOB CATEGORY

2022 Total No. of Employees Received Reviews % to Total
Officer 265 219 83%
Middle manager 1,367 1,165 85%
Rank and file 42,395 20,805 49%
TOTAL 44,027 22,189 50%

PERFORMANCE REVIEW BY GENDER

2022 Total No. of Employees Received Reviews % to Total
Women 11,890 7,252 61%
Men 32,137 14,937 46%
TOTAL 44,027 22,189 50%

SECURITY PERSONNEL TRAINED IN HUMAN RIGHTS POLICIES AND PROCEDURES*

2022 Unit
Total number of security personnel 3,224 No.
Security personnel trained in human rights 2,341 No.
% Security personnel trained 73% %
*All security personnel are third-party contracted.

COLLECTIVE BARGAINING AGREEMENTS (CBAs)

2022 Unit
Active CBAs 34 No.
Total members 5,837 No.
% Security personnel trained 73% %
133

SUSTAINABILITY REPORT 2022

EMPLOYEES COVERED BY OCCUPATIONAL SAFETY AND HEALTH (OSH) MANAGEMENT SYSTEM
2022 Unit
Employees covered by an OSH management system 45,797 No.
Employees covered by an OSH management system that have been
19,468 No.
internally audited
Employees covered by an OSH management system that have been
16,816 No.
externally audited

WORK-RELATED INJURIES
SAN MIGUEL CORPORATION

2022 Unit
Fatalities as a result of work-related injuries 2 No.
% Fatalities as a result of work-related injuries 0.004% %
High-consequence work-related injuries 44 No.
% High-consequence work-related injuries 0.1% %
Recordable work-related injuries 593 No.
Total employee hours worked 99,908,405 Hours
 WORK-RELATED ILL HEALTH
2022 Unit
Fatalities as a result of work-related ill-health - No.
% Fatalities as a result of work-related ill-health 0% %
Recordable work-related ill-health 1,454 No.
% Recordable work-related ill-health 3% %

AVAILMENT OF PARENTAL LEAVES

2022 Count %
Women 954 7%
Men 2,917 9%

PRODUCT AND SERVICE INFORMATION AND LABELLING

2022 Unit
% Significant product or service categories covered by and assessed
for compliance with requirements for product and service information 100 %
and labelling
Total incidents of non-compliance with regulations and/or voluntary
5 No.
codes concerning product and service information and labeling
Incidents of non-compliance with regulations resulting in a fine or
0 No.
penalty
Incidents of non-compliance with regulations resulting in a warning 5 No.
Incidents of non-compliance with voluntary codes 0 No.

INCIDENTS OF NON-COMPLIANCE WITH PRODUCT LABELLING, RESULTING IN A WARNING

2022
1. Moccona Coffee Specialty Mixes – Use of a heart logo in the label was disallowed by the FDA because it
implies a health claim. Product was imported from Malaysia where such logo was permitted.
2. Star Margarine Sweet Blend (30g) – Use of the product descriptor "Margarine" was disallowed due to the fat
content being below the 80% minimum for margarine.
3. Bongga Carne Norte Hot and Spicy – Cited for use of old labels not declaring new ingredients. Business
requested permission to deplete labels inventory as there were no food safety risks associated with the new
ingredients.
4. Bongga Carne Norte and Purefoods Chicken in Broth – Cited for wrong use of dietary reference. Business
advanced implementation of the 2015 Philippine Dietary Reference Intake (PDRI) while the FDA is still using
134
the 2012 Recommended Energy and Nutrient Intake (RENI).
READY FOR TOMORROW

MARKETING COMMUNICATIONS
2022 Unit
Incidents of non-compliance with regulations concerning marketing
0 No.
communications resulting in a fine or penalty
Incidents of non-compliance with regulations concerning marketing
0 No.
communications resulting in a warning
Incidents of non-compliance with voluntary codes 0 No.

PRODUCT SAFETY-RELATED RECALLS

2022 Unit
Total product safety-related recalls, including: 0 No.
Voluntary recalls 0 No.
Involuntary recalls 0 No.
EMERGING MATERIALS AND CHEMICALS OF CONCERNS
2022
Ethylene Oxide (EtO) was recently the subject of a product recall in Europe. Among other uses, it may be a
fumigant in agricultural products, specifically for spices. While EtO is banned in the European Union, other
countries such as the United States, have defined maximum residue limits. It is currently not a regulated
substance in the Philippines, but the Company has reached out to suppliers of materials at risk to inform us of
steps taken to ensure compliance with maximum residue limits or to eliminate said substance.

PRODUCT SAFETY-RELATED RECALLS

2022 Unit
Total notices of violation received that substantiate a violation
of advisory and administrative code(s), statute(s), or other 0 No.
requirement(s) related to food safety
% Notices of violations received related to food safety that was
0 %
corrected.
Notices of violations corrected 0 No.
Total notices of violation received 0 No.

LOCAL COMMUNITY ENGAGEMENTS

Program Project 2022 Unit
Education Scholarships 2,844 Students
Short-term courses 25 Students
Brigada Eskwela 88,800 Students
120 Schools
Health Community clinics 1,284 Patients
Feeding
11,359 Consultations
8 Clinics
76,962 Meals
1,000 Days project 340 Patients
Medical missions 9,000 Patients
9 Areas
200 Hygiene Kits / Person
Enterprise Livelihood assistance 74 Persons
6 Areas 135
11 People’s Organizations

SUSTAINABILITY REPORT 2022

Housing Housing and water provision 280,359 Houses
Infrastructure Road access 19,644,794 Vehicles / Motorists
Arts and culture Showcase 11 Artists
Environmental Restoration & conservation 58 Sites
Coral rescue program 100 Square Meters
25 Species
25 Kilo Biomass
Better World Tondo Membership services 1,800 Persons
SAN MIGUEL CORPORATION

365 Families
194 Students
Better World Cubao Membership services 665 Women
Better World Diliman Farmer’s produce program 4,500 Farmers
 GOVERNANCE

PROCUREMENT SPEND
2022 Unit
Procurement spend on local suppliers* 200,498.63 Mn PhP
Procurement Spend on foreign suppliers 176,372.23 Mn PhP
Total procurement spend 376,870.86 Mn PhP
% Spend on local suppliers 53% %
% Spend on foreign suppliers 47% %
*A local supplier is a business whose address is in the Philippines.

NUMBER OF SUPPLIERS BY CLASSIFICATION

2022 Unit
Tier 1 suppliers 263 No.
Non-Tier 1 suppliers 6,184 No.
TOTAL SUPPLIERS 6,447 No.

NUMBER OF SUPPLIERS BY LOCATION

2022 Unit
Local suppliers 5,852 No.
Foreign suppliers 595 No.
TOTAL SUPPLIERS 6,447 No.

COMMUNICATION OF ANTI-CORRUPTION POLICIES AND PROCEDURES

2022 Unit
% Directors to whom the organization’s anti-corruption policies and
100 %
procedures have been cascaded
% Officers to whom the organization’s anti-corruption policies and
100 %
procedures have been cascaded

COMPLAINTS CONCERNING BREACHES OF CUSTOMER PRIVACY

2022 Unit
136
Complaints received from outside parties and substantiated by the
0 No.
organization
READY FOR TOMORROW

Complaints from regulatory bodies 0 No.

LEAKS, THEFTS, OR LOSSES OF CUSTOMER DATA

2022 Unit
Identified leaks, thefts, or losses of customer data 0 No.
MATERIALITY INDICES

GRI Content Index

Disclosure Page no.
GRI 2: General Disclosures 2021
2-1 Organization detail 3; 8 – 17;
2-2 Entities included in the organization’s sustainability re-porting 2; 124;
2-3 Reporting period, frequency and contact point 2–3;
2-4 Restatement of information 3;
2-5 External assurance 26;
2-6 Activities, value chain and other business relationship 8 – 16;
2-7 Employees 80 – 81; 132;
2-8 Workers who are not employees 80 – 81; 132;
2-9 Governance structure and composition 27; The composition of the highest
governance body is disclosed in the
SMC Integrated Annual
Corporate Governance Report
found in the company website at
https://www.sanmiguel.com.ph/
disclosures/annual-corporate-
governance-report-acgr; and in the
SMC Annual Report also found in
the company website at https://
www. sanmiguel.com.ph/annual-
reports;
2-10 Nomination and selection of the highest governance body 27; The nomination and selection
of the highest governance body are
disclosed in the SMC Integrated
Annual Corporate Governance
Report found in the company
website at https://www.sanmiguel.
com.ph/disclosures/annual-
corporate-governance-report-acgr;
and in the SMC Annual Report also
found in the company website at
https://www. sanmiguel.com.ph/ 137
annual-reports;

SUSTAINABILITY REPORT 2022

2-11 Chair of the highest governance body 27; The chair of the highest
governance body is disclosed in the
SMC Integrated Annual Corporate
Governance Report found in the
company website at https://www.
sanmiguel.com.ph/disclosures/
annual-corporate-governance-
report-acgr; and in the SMC,
Annual Report also found in the
company website at https://www.
sanmiguel.com.ph/annual-reports;
2-12 Role of the highest governance body in overseeing the management 18 – 21; 27;
SAN MIGUEL CORPORATION

of impacts
2-13 Delegation of responsibility for managing impacts 27;
2-14 Role of the highest governance body in sustainability re-porting 27;
2-15 Conflicts of interest 116 – 117;
2-16 Communication of critical concerns 18 – 21; 83; 116 – 117;
 Disclosure Page no.
2-17 Collective knowledge of the highest governance body The profiles of the directors are
disclosed in the SMC Integrated
Annual Corporate Governance
Report found in the company
website at https://www.sanmiguel.
com.ph/disclosures/annual-
corporate-governance-report-acgr;
and in the
SMC Annual Report also found in
the company website at https://
www. sanmiguel.com.ph/annual-
reports;
2-18 Evaluation of the performance of the highest governance body Evaluation of the performance of
the highest governance body is
disclosed in the SMC Integrated
Annual Corporate Governance
Report found in the company
website at https://www.sanmiguel.
com.ph/disclosures/annual-
corporate-governance-report-acgr;
and in the SMC Annual Report also
found in the company website at
https://www. sanmiguel.com.ph/
annual-reports;
2-19 Remuneration policies Remuneration policies of the
highest governance body and
officers are disclosed in the SMC
Integrated Annual Corporate
Governance Report found
in the company website at
https://www. sanmiguel.com.ph/
disclosures/annual-corporate-
governance-report-acgr;
2-20 Process to determine remuneration Process to determine remuneration
is disclosed in the SMC Integrated
Annual Corporate Governance
Report found in the company
website at https://www.
sanmiguel.com.ph/disclosures/
annual-corporate-governance-
report-acgr;
138 2-21 Annual total compensation ratio SMC regards individual employee
salaries as highly confidential
data; Thus, SMC cannot disclose
READY FOR TOMORROW

said information and any related

information in the Sustainability
Report.
2-22 Statement on sustainable development strategy 30 – 39;
2-23 Policy commitments 83 – 86; 89 – 91; 93 – 94; 112 – 113;
116 – 117; 122;
2-24 Embedding policy commitments 83 – 86; 89 – 91; 93 – 94; 112 – 113;
116 – 117; 122;
2-25 Processes to remediate negative impacts 83 – 86; 89 – 91; 93 – 94; 116 – 117;
122;
2-26 Mechanisms for seeking advice and raising concerns 83 – 86; 89 – 91; 93 – 94; 116 – 117;
122;
2-27 Compliance with laws and regulations 83 – 86; 89 – 91; 93 – 94; 116 – 117;
122;
2-28 Membership associations 145;
2-29 Approach to stakeholder engagement 18 – 21;
2-30 Collective bargaining agreements 83 – 133;
Disclosure Page no.
GRI 3: Material Topics 2021
3-1 Process to determine material topics 23 – 26;
3-2 List of material topics 23 – 26;
3-3 Management of material topics 23 – 26; 40 – 122;
GRI 201: Economic Performance 2016
201-1 Direct economic value generated and distributed 28; 125;
201-2 Financial implications and other risks and opportunities due to 40 – 77;118;
climate change
201-3 Defined benefit plan obligations and other retirement plans This is disclosed in the SMC FY
2022 17-A found in the company
website at https://www.
sanmiguel.com.ph/annual-reports;
201-4 Financial assistance received from government This is disclosed in the SMC FY
2022 17-A found in the company
website at https://www.
sanmiguel.com.ph/annual-reports;
GRI 203: Indirect Economic Impacts 2016
203-1 Infrastructure investments and services supported 10 – 16; 28 – 29;
203-2 Significant indirect economic impacts 5 – 7; 8 – 16; 28 – 29; 83; 86; 89 –
91; 93 – 94;
GRI 204: Procurement Practices 2016
204-1 Proportion of spending on local suppliers 112; 136;
GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks related to corruption 116 – 118;
205-2 Communication and training about anti-corruption policies and 116 – 117; 136;
procedures
205-3 Confirmed incidents of corruption and action taken 116 – 117;
GRI 206: Anti-competitive Behavior 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and 116 – 117;
monopoly practices
GRI 207: Tax 2019
207-1 Approach to tax This is disclosed in the SMC FY
2022 17-A found in the company 139
website at https://www.
sanmiguel.com.ph/annual-reports;

SUSTAINABILITY REPORT 2022

207-2 Tax governance, control, and risk management This is disclosed in the SMC FY
2022 17-A found in the company
website at https://www.
sanmiguel.com.ph/annual-reports;
207-3 Stakeholder engagement and management of concerns related to 11; 63; This is also dis-closed in the
tax SMC FY 2022 17-A
found in the company website at
https://www. sanmiguel.com.ph/
annual-reports;
207-4 Country-by-country reporting This is disclosed in the SMC FY
2022 17-A found in the company
SAN MIGUEL CORPORATION

website at https://www.
sanmiguel.com.ph/annual-reports;
 Disclosure Page no.
GRI 301: Materials 2016
301-1 Materials used by weight or volume 57 – 58; 128 – 131;
301-2 Recycled input materials used 57 – 58; 128 – 131;
GRI 302: Energy 2016
302-1 Energy consumption within the organization 50 – 51; 126;
302-2 Energy consumption outside the organization 50 – 51; 126;
302-3 Energy intensity 50 – 51; 126;
302-4 Reduction of energy consumption 50 – 51; 126;
GRI 303: Water and Effluents 2018
303-1 Interaction with water as a shared resource 52 – 56; 127;
303-2 Management of water discharge-related impacts 52 – 56; 127;
303-3 Water withdrawal 52 – 56; 127;
303-4 Water discharge 52 – 56; 127;
303-5 Water consumption 52 – 56; 127;
GRI 304: Biodiversity 2016
304-1 Operational sites owned, leased, managed in, or adjacent to, 67 – 77; 132;
protected areas and areas of high biodiversity value outside
protected areas
304-2 Significant impacts of activities, products, and services on 67 – 77; 132;
biodiversity
304-3 Habitats protected or restored 67 – 77; 132;
304-4 IUCN Red List species and national conservation list species with 67 – 77; 132;
habitats in areas affected by operations
GRI 305: Emissions 2016
305-1 Direct (Scope 1) emissions 125;
305-2 Indirect (Scope 2) emissions 125;
305-4 GHG emission intensity 42 – 49; 125;
305-5 Reduction in GHG emissions 42 – 49; 125;
305-6 Emission of Ozone Depleting Substance (ODS) 125;
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air 42 – 49; 125;
emissions
140
GRI 306: Waste 2020
READY FOR TOMORROW

306-1 Waste generation and significant waste-related impact 57 – 66; 128 – 131;
306-2 Management of significant waste-related impacts 57 – 66; 128 – 131;
306-3 Waste generated 57 – 66; 128 – 131;
306-4 Waste diverted from landfill 57 – 66; 128 – 131;
306-5 Waste directed to landfill 57 – 66; 128 – 131;
GRI 401: Employment 2016
401-1 New employee hires and employee turnover 81;
401-3 Parental leave 134;
GRI 403: Occupational Health and Safety 2016
403-1 Occupational health and safety management system 86 – 88; 133 – 134;
403-2 Hazard identification, risk assessment and incident investigation 86 – 88; 133 – 134;
403-3 Occupational health services 86 – 88;
403-4 Worker participation, consultation and communication on 86 – 88;
occupational health and safety
403-5 Worker training on occupational health and safety 86 – 88;
403-6 Promotion of worker health 86 – 88;
Disclosure Page no.
403-7 Worker training on occupational health and safety 86 – 88;
403-8 Workers covered by an occupational health and safety management 86 – 88; 133 – 134;
system
403-9 Work-related injuries 86 – 88; 133 – 134;
403-10 Work-related ill health 86 – 88; 133 – 134;
GRI 404: Training and Education 2016
404-1 Average hours of training per year per employee 89 – 92; 132 – 133;
404-2 Programs for upgrading employee skills and transition assistance 89 – 92;
programs
404-3 Percentage of employees receiving regular performance and career 89 – 92; 132 – 133;
development reviews
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity of governance bodies and employees 93 – 95; 132; Diversity of
governance bodies is disclosed
in the SMC Integrated Annual
Corporate Governance Report
found in the company website at
https://www.sanmiguel.com.ph/
disclosures/annual-corporate-
governance-report-acgr; and in the
SMC Annual Report also found in
the company website at https://
www. sanmiguel.com.ph/annual-
reports;
GRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions taken 93 – 95;
GRI 408: Child Labor 2016
408-1 Operations and suppliers at significant risk for incidents of child 112 – 113;
labor
GRI 410: Security Practices 2016
410-1 Security personnel trained in human rights policies or procedures 133;
GRI 411: Rights of Indigenous People 2016
411-1 Incidents of violations involving rights of Indigenous peoples 20; 93 – 95;
GRI 413: Local Communities 2016
413-1 Operations with local community engagement, impact assessments 20; 103 – 108; 135; 141
and development programs

SUSTAINABILITY REPORT 2022

413-2 Operations with significant actual and potential negative impacts on 20; 103 – 108; 135;
local communities
GRI 416: Customer Health and Safety 2016
416-1 Assessment of the health and safety impacts of product and service 96 – 102; 134 – 135;
categories
416-2 Incidents of non-compliance concerning the health and safety 134 – 135;
impacts of products and services
GRI 417: Marketing and Labelling 2016
417-1 Requirements for product and service information and labeling 96 – 102;
417-2 Incidents of non-compliance concerning product and service 134 – 135;
SAN MIGUEL CORPORATION

information and labeling

417-3 Incidents of non-compliance concerning marketing communications 134 – 135;
GRI 418: Customer Privacy 2018
418-1 Substantiated complaints concerning breaches of customer privacy 122; 136;
and losses of customer data
 SASB Index
Disclosure Page no.
Greenhouse Gas Emissions
Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations 125;
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, 42 – 49;
emissions reduction targets, and an analysis of performance against those targets
Air Quality
Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) particulate 46; 48; 125;
matter (PM10), (4) H2S, and (5) volatile organic compounds (VOCs)
Energy Management
(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable, (4) 50 – 51; 126;
total self-generated energy
Water Management
(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with 52 – 56; 127;
High or Extremely High Baseline Water Stress
Description of water management risks and discussion of strategies and practices to 52 – 56;
mitigate those risks
Number of incidents of non-compliance associated with water quality permits, standards, 127;
and regulations
Waste Management
Amount of hazardous waste generated; percentage recycled 56 – 66; 128 – 131;
Workforce Health & Safety
(1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) near miss frequency rate 133 – 134;
(NMFR) for (a) full-time employees and (b) contract employees
Discussion of management systems used to integrate a culture of Safety 86 – 88;
Packaging Lifecycle Management
(1) Total weight of packaging, (2) percentage made from recycled and/or renewable 57; 96 – 98;
materials, and (3) percentage that is recyclable, reusable, and/or compostable
Discussion of strategies to reduce the environmental impact of packaging throughout its 57; 96 – 98;
lifecycle

Disclosure Page no.

142 SASB: Containers and Packaging Standard 2018
RT-CP-250a.1 Number of recalls issued; total units recalled 134 – 135;
READY FOR TOMORROW

RT-CP-250a.2 Discussion of process to identify and manage emerging materials 134 – 135;
and chemicals of concern
RT-CP-250a.3 Food safety violation 134 – 135;

Disclosure Page no.

SASB: Containers and Packaging Standard 2018
Responsible Drinking & Marketing
FB-AB-270a.2 Number of incidents of non-compliance with industry or regulatory 96 – 102; 134 – 135;
labeling and/or marketing codes
FB-AB-270a.3 Total amount of monetary losses as a result of legal proceedings 96 – 102; 134 – 135;
associated with marketing and/or labeling practices
FB-AB-270a.4 Description of efforts to promote responsible consumption of 96 – 102; 134 – 135;
alcohol
Disclosure Page no.
SASB: Processed Foods 2018
Food Safety
FB-PF-250a.3 (1) Total number of notices of food safety violation received, (2) 96 – 102; 134 – 135;
percentage corrected
FB-PF-250a.4 (1) Number of recalls issued and (2) total amount of food product 96 – 102; 134 – 135;
recalled
Health & Nutrition
FB-PF-260a.2 Discussion of the process to identify and manage products and 96 – 102;
ingredients related to nutritional and health concerns among
consumers
Product Labelling & Marketing
FB-PF-270a.3 Number of incidents of non-compliance with industry or regulatory 96 – 102; 134 – 135;
labeling and/or marketing codes
FB-PF-270a.4 Total amount of monetary losses as a result of legal proceedings 96 – 102; 134 – 135;
associated with labeling and/or marketing practices

143

SUSTAINABILITY REPORT 2022

SAN MIGUEL CORPORATION
 CONTRIBUTIONS TO THE UN SDGS
At San Miguel, there are many ways our sustainability programs and initiatives align with the global
goals. The following shows how our sustainability agenda and material ESG topics correspond and
contribute to the UN SDGs.

KALIKASAN CLIMATE CHANGE ACTION RESOURCE MANAGEMENT

CIRCULAR ECONOMY BIODIVERSITY AND ECOSYSTEMS

KALINGA HUMAN RIGHTS AND

LABOR PRACTICES
EMPLOYEE HEALTH
AND SAFETY

EMPLOYEE ENGAGEMENT, DIVERSITY AND

TRAINING, AND DEVELOPMENT INCLUSION

CUSTOMER WELFARE COMMUNITY

AND RESPONSIBILITY ENGAGEMENT

144
READY FOR TOMORROW

KASAGANAHAN SUSTAINABLE SUPPLY CHAIN BUSINESS ETHICS AND COMPLIANCE

RISK MANAGEMENT DIGITAL TRANSFORMATION

DATA PRIVACY AND SECURITY

MEMBERSHIP IN ASSOCIATIONS
Association of Foundations (AF)

Association of Petrochemical Manufacturers of the Philippines (APMP)

Beverage Industry Assoc of the Phils. (BIAP)

Business for Sustainable Development (BSD)

European Chamber of Commerce of the Philippines (ECCP)

Federation of Philippine Industries (FPI)

Go Negosyo

League of Corporate Foundations (LCF)

LPG Industry Association (LPGIA)

Makati Business Club (MBC)

Philippine Alliance for Resource and Materials Sustainability (PARMS)

Philippine Association of Broiler Integrators (PABI)

Philippine Association of Feed Millers Inc. (PAFMI)

Philippine Business for Social Progress (PBSP)

Philippine Chamber of Commerce and Industry (PCCI)

Philippine Chamber of Food Manufacturers Inc. (PCFMI)

Philippine Coalition on Volunteerism Inc. (PhilCV)

Philippine Council for NGO Certification (PCNC)

Philippine Disaster and Resilience Foundation Inc. (PDRF)

Philippine Institute of Petroleum (PIP)

145
Pollution Control Association of the Philippines (PCAP)

SUSTAINABILITY REPORT 2022

SAN MIGUEL CORPORATION
 ACCREDITATIONS AND CERTIFICATIONS
CERTIFICATIONS BUSINESS UNIT FACILITY/LOCATION
ISO 9001:2015 GSMI Cabuyao Plant
Quality Management Systems East Pacific Star Bottlers Phils. Cauayan Plant
Distileria Bago, Inc.
Ligao Plant
Mandaue Plant
Sta. Barbara Plant
Food B-Meg Plant - Bataan 1 & 2
B-Meg Plant - Bukidnon
B-Meg Plant - Bulacan
B-Meg Plant - Cebu
B-Meg Plant - Davao del Sur
B-Meg Plant - Iloilo 2
B-Meg Plant - Isabela 1 & 2
B-Meg Plant - Leyte
B-Meg Plant - Misamis Oriental 2
B-Meg Plant - Pangasinan
B-Meg Plant - Tarlac
Purefoods-Hormel Cavite Plant
Ready-to-Eat Plant Sta. Rosa, Laguna
Packaging Manila Glass Plant
Mindanao Corrugated Fibreboard Inc.
San Fernando Beverage Packaging Plant
Petron Amlan, Negros Oriental Sales Office
Bacolod Terminal
Batangas Terminal
Bawing, Gen. Santos Terminal
Davao Terminal
Iligan Terminal
Iloilo Terminal
Isabel, Leyte Terminal
Jimenez, Misamis Occ. Terminal
146 Joint Oil Companies Aviation Fuel Storage Plant
Legaspi LPG Facility
READY FOR TOMORROW

Limay, Bataan Refinery

Mactan Aviation Fuel Storage
Mandaue Terminal
Navotas Terminal
Nasipit, Agusan del Norte Terminal
New Lube Oil Blending Plant
Ormoc Terminal
Palawan Terminal
Pasacao, Camarines Sur Sales Office
Pasig LPG Facility
Poro, La Union Terminal
Rosario, Cavite Terminal
Roxas City, Capiz Terminal
San Fernando, Pampanga LPG Facility
Subic Blending Plant
Tacloban Terminal
Tagbilaran Sales Office
Tagoloan Terminal
Zamboanga Terminal
 CERTIFICATIONS BUSINESS UNIT FACILITY/LOCATION
SMGP Limay Power Plant
SMHC Manila Toll Expressway Systems, Inc.
Skyway Operations & Maintenance Corp.
NCC Pangasinan Plant
SMITS SMC Data Center
SMCSL Harbor Center
ISO 14001:2015 GSMI Mandaue Plant
Environmental Management Systems Sta. Barbara Plant
Food Purefoods-Hormel Cavite Plant
Petron Amlan, Negros Oriental Sales Office
Bacolod Terminal
Batangas Terminal
Bawing, Gen. Santos Terminal
Davao Terminal
Iligan Terminal
Iloilo Terminal
Isabel, Leyte Terminal
Jimenez, Misamis Occ. Terminal
Joint Oil Companies Aviation Fuel Storage Plant
Legaspi LPG Facility
Limay, Bataan Refinery
Mactan Aviation Fuel Storage
Mandaue Terminal
Nasipit, Agusan del Norte Terminal
Navotas Terminal
Ormoc Terminal
Palawan Terminal
Pasacao, Camarines Sur Sales Office
Pasig LPG Facility
Poro, La Union Terminal
Rosario, Cavite Terminal
Roxas City, Capiz Terminal 147
San Fernando, Pampanga LPG Facility

SUSTAINABILITY REPORT 2022

Subic Blending Plant
Tacloban Terminal
Tagbilaran Sales Office
Tagoloan Terminal
Zamboanga Terminal
SMGP Limay Power Plant
Masinloc Power Plant
SMHC Manila Toll Expressway Systems, Inc.
Skyway Operations & Maintenance Corp.
NCC Pangasinan Plant
SAN MIGUEL CORPORATION

SMCSL Harbor Center

ISO 17025:2017 SMB Polo Brewery - Central Analytical Laboratory
General Requirements for the
Competence of Testing and
Calibration Laboratories
ISO 22000:2018 GSMI East Pacific Star Bottlers Phils. Cauayan Plant
Food Safety Management Systems
ISO 22301:2019 SMGP Malita Power Plant
Business Continuity Management
Systems
 CERTIFICATIONS BUSINESS UNIT FACILITY/LOCATION
ISO 45001:2018 Petron Amlan, Negros Oriental Sales Office
Occupational Health & Safety Bacolod Terminal
Management System
Batangas Terminal
Bawing, Gen. Santos Terminal
Davao Terminal
Iligan Terminal
Iloilo Terminal
Isabel, Leyte Terminal
Jimenez, Misamis Occ. Terminal
Joint Oil Companies Aviation Fuel Storage Plant
Legaspi LPG Facility
Limay, Bataan Refinery
Mactan Aviation Fuel Storage
Mandaue Terminal
Nasipit, Agusan del Norte Terminal
Navotas Terminal
Ormoc Terminal
Palawan Terminal
Pasacao, Camarines Sur Sales Office
Pasig LPG Facility
Poro, La Union Terminal
Rosario, Cavite Terminal
Roxas City, Capiz Terminal
San Fernando, Pampanga LPG Facility
Subic Blending Plant
Tacloban Terminal
Tagbilaran Sales Office
Tagoloan Terminal
Zamboanga Terminal
SMGP Limay Power Plant
Masinloc Power Plant
SMHC Manila Toll Expressway Systems, Inc.
Skyway Operations & Maintenance Corp.
148 NCC Pangasinan Plant
SMCSL Harbor Center
READY FOR TOMORROW

ISO 55001:2014 SMGP Malita Power Plant

Asset Management System
ISPS CODE Petron Bacolod Terminal
International Ship & Port Facility Batangas Terminal
Security Code
Bawing, Gen. Santos Terminal
Davao Terminal
Iloilo Terminal
Iligan Terminal
Mactan Aviation Fuel Storage
Mandaue Terminal
Navotas Terminal
Ormoc Terminal
Palawan Terminal
Rosario, Cavite Terminal
Roxas City, Capiz Terminal
Tagoloan Terminal
Zamboanga Terminal
 CERTIFICATIONS BUSINESS UNIT FACILITY/LOCATION
2022-2026 SDMP & NCC Pangasinan Plant
2022 Annual SDMP
Social Development & Management
Program
FSSC 22000 v5.1 SMB Polo Brewery
Food Safety Management System GSMI Distileria Bago, Inc.
Food Magnolia Plant Cavite
Purefoods-Hormel Cavite Plant
Ready-to-Eat Plant Sta. Rosa, Laguna
San Miguel Mills, Inc. Mabini Plant
San Miguel Mills, Inc. Tabangao Plant
Packaging Can Asia, Inc.
Cebu Glass Plant
Manila Glass Plant
Metal Closure & Lithography Plant Cebu
Metal Closure & Lithography Plant San Fernando
Rightpak Plant
San Fernando Beverage Packaging Plant
San Miguel Yamamura Glass Plant
HACCP SMB Bacolod Brewery
Hazard Analysis Critical Control Davao Brewery
Points
Mandaue Brewery
Polo Brewery
San Fernando Brewery
Sta. Rosa Brewery
Tagoloan Brewery
GSMI Distileria Bago, Inc.
Food Magnolia Plant Cavite
Magnolia Ice Cream Plant
Purefoods-Hormel Cavite Plant
Ready-to-Eat Plant Sta. Rosa, Laguna
San Miguel Mills, Inc. Mabini Plant
San Miguel Mills, Inc. Tabangao Plant
GMP SMB Bacolod Brewery
Standards for Good Manufacturing Davao Brewery 149
Practices
Mandaue Brewery

SUSTAINABILITY REPORT 2022

Polo Brewery
San Fernando Brewery
Sta. Rosa Brewery
Tagoloan Brewery
GSMI Distileria Bago, Inc.
Food Magnolia Plant Cavite
Magnolia Ice Cream Plant
Magnolia Poultry Products Plant Camarines Sur
Purefoods-Hormel Cavite Plant
Ready-to-Eat Plant Sta. Rosa, Laguna
SAN MIGUEL CORPORATION

San Miguel Mills, Inc. Mabini Plant

San Miguel Mills, Inc. Tabangao Plant
 ABBREVIATIONS
BankCom Bank of Commerce LMDP Leadership and Management
Development Program
BESS Battery Energy Storage Systems
LNG Liquefied Natural Gas
BU Business Unit
LR Labor Relations
CBA Collective Bargaining Agreement
MWSS Metropolitan Waterworks and Sewerage
CCR Coal Combustion Residuals System
CHR Corporate Human Resources NAB Non-Alcoholic Beverages
CO2 Carbon Dioxide NAIAx NAIA Expressway
COP Compliance Officers for Privacy NALEX Northern Access Link Expressway
COP27 27th UN Conference of the Parties NCC Northern Cement Corporation
CPD Continuing Professional Development NIPAS National Integrated Protected Area
System
CSR Corporate Social Responsibility
NMIA New Manila International Airport
DBI Distileria Bago, Inc.
NOx Nitrogen Oxide
DENR Department of Natural Resources
OSH Occupational Safety and Health
DOLE Department of Labor and Employment
OSHA Occupational Safety and Health
DPO Data Protection Officer Administration
DPSO Data Privacy and Security Office PAREX Pasig River Expressway
EMB Environmental Management Bureau PDEX Philippine Dealing & Exchange Corp.
EMDP Executive Management Development PET Polyethylene terephthalate
Program
PFI Petron Foundation, Inc.
EPR Extended Producer Responsibility
PHC The Purefoods-Hormel Company, Inc.
ERM Enterprise Risk Management
PNS Philippine National Standards
ESG Environmental, Social, and Governance
PRC Professional Regulation Commission
FDA Food and Drug Administration
150 PSE Philippine Stock Exchange
GHG Greenhouse Gas
PwC PricewaterhouseCoopers
READY FOR TOMORROW

GRI Global Reporting Initiative

RE Renewable Energy
HELE High Efficiency and Low Emissions
RT-PCR Reverse Transcription Polymerase
HMO Health Maintenance Organization Chain Reaction
IMS Integrated Management Systems SALEX Southern Access Link Expressway
IP Indigenous Peoples SASB Sustainability Accounting Standards
Board
IPPA Independent Power Producer
Agreement SEED School for Experiential and
Entrepreneurial Development
ISO International Organization for
Standardization SLEX South Luzon Expressway
IUCN International Union for Conservation of SMB San Miguel Brewery, Inc.
Nature
SMC San Miguel Corporation
LCWDC Luzon Clean Water Development
Corporation SMCACDC SMC Asia Car Distributors Corp.
LGU Local Government Unit SMCSL SMC Shipping and Lighterage Inc.
 MEASUREMENTS
SMEII San Miguel Equity Investment Inc. GJ Gigajoule

SMF San Miguel Foods (refers to the Food HA Hectares

Division of SMFB)
KG Kilograms
SMFB San Miguel Food and Beverage, Inc.
M2 Square Meters
SMFG San Miguel Food Group (also refers to
the Food Division of SMFB) ML Million Liters

SMFI San Miguel Foods, Inc. Mn Million

SMGP San Miguel Global Power Holdings Corp. MT Metric Ton

SMHC San Miguel Holdings Corporation MT CO2e Metric Ton of Carbon Dioxide Equivalent

SMILSI San Miguel Integrated Logistics MW Megawatt

Services, Inc.
No. Number
SMITS San Miguel Information Technology
Services, Inc. PhP Philippine Peso

SMMI San Miguel Mills, Inc.

SMPI San Miguel Properties Inc.

SMYPC San Miguel Yamamura Packaging

Corporation

SOx Sulfur Oxides

STAR Southern Tagalog Arterial Road

TCFD Task Force for Carbon Related

Disclosure

TPLEX Tarlac-Pangasinan-La Union

Expressway

TRB Toll Regulatory Board

UN SDGs United Nations Sustainable

Development Goals
151

SUSTAINABILITY REPORT 2022

SAN MIGUEL CORPORATION
 FILIPINO WORDS & ENGLISH TRANSLATIONS
The Filipino word "malasakit" is a term that conveys a deep sense of concern, care,
Malasakit and empathy towards others. It is often used to describe a willingness to go beyond
what is required to achieve a goal.

The Filipino phrase "walang iwanan" literally translates to "no one left behind". The
Walang Iwanan phrase embodies collective effort, where everyone works together towards a common
goal, and no one is left behind or excluded.

The Filipino phrase “Brigada Eskwela” is “School Brigade” in English. This refers to
a national program in the Philippines that encourages volunteerism and community
involvement in preparing public elementary and high schools before the start of the
academic year. Prior to the start of classes, parents, teachers, students, civic groups,
and volunteers come together to clean, repair, and beautify public schools in the
Brigada Eskwela area. They paint classrooms, repair desks and chairs, clean windows and floors, and
plant trees and flowers. The program also involves the preparation of emergency
kits and the conduct of disaster drills to ensure that schools are ready to respond in
case of emergencies. Brigada Eskwela is a testament to the Filipinos’ commitment to
ensuring that every child has access to a safe and conducive learning environment.

The Filipino word "kababayan" is a term that refers to a fellow countryman. It is a

Kababayan word that fosters a sense of community and solidarity among Filipinos, whether we
are in our home country or living abroad.

The Filipino word "kalikasan" refers to nature or Mother Earth. It is a term that is
deeply ingrained in Filipino culture, as our country is known for its diverse and rich
natural resources, including its forests, mountains, and bodies of water. It highlights
Kalikasan the importance of preserving and protecting the natural world for future generations.
It is a word that evokes a sense of awe and appreciation for the beauty and complexity
of the natural world, as well as a sense of responsibility to protect it.

The Filipino word "kalinga" is a word that connotes care or compassion for people,
particularly for those who are vulnerable or in need. The concept of kalinga embodies
Kalinga the Filipino value of "bayanihan" or collective effort, which is the Filipino tradition of
152 community and mutual support, especially in times of challenges. Kalinga also means
protecting or guarding, especially keeping someone safe from harm or danger.
READY FOR TOMORROW

The Filipino word "kasaganahan" refers to abundance, prosperity, or plenty. It is

a word that conveys a sense of great prosperity, whether in terms of resources or
opportunities. Kasaganahan is a word that is often used to describe the potential
for growth and development in the Philippines. The word further embodies the
Kasaganahan Filipino value of optimism and resilience, as it suggests a belief in the abundance of
opportunities and resources available to those who work hard and persevere in life.
Overall, kasaganahan celebrates the abundance and richness of life and encourages
people to be generous and giving towards others.

Puno ng Buhay Trees of Life

 CONTACT US
CORPORATE HEAD OFFICE
SAN MIGUEL CORPORATION
40 San Miguel Avenue, Mandaluyong City
1550 Metro Manila, Philippines
P.O. Box 271 Manila Central Post Office
T (632) 8-632-3000

Corporate Sustainability Office

T (632) 8-632-3794
Email: [email protected]

San Miguel Customer Care Center

San Miguel Customer Care Hotline
T (632) 8-632-2000
Email: [email protected]

Shareholder Services and Assistance

SMC Stock Transfer Service Corporation
40 San Miguel Avenue, Mandaluyong City
1550 Metro Manila, Philippines
T (632) 8-632-3450 to 52
F (632) 8-632-3535
Email: [email protected]
The San Miguel Corporation Sustainability Report is printed
on paper certified by the Forest Stewardship Council.
Institutional Investor Inquiries
Production of the report utilized process free plates SMC - Investor Relations
and CO2-neutral printing press equipment. T (632) 8-632-3752/ 8-632-3706
F (632) 8-632-3313/ 8-632-3749
Email: [email protected]
Design Matchbox
Photos by Paolo Antonio Buendia, Alexies Santiago, Our Website
Paul Quiambao, and Blair Bernardino http://www.sanmiguel.com.ph
San Miguel Avenue,
Mandaluyong City
1550 Metro Manila
Philippines

Tel. (632) 8-632-3000

www.sanmiguel.com.ph