• Annual Report 2019
  • Vision, Mission, and Core Values
  • Financial Highlights
  • Message of the Chairman
  • Message of the President & CEO
  • Operational Highlights
  • Corporate Social Responsibility
  • Corporate Governance Report
  • Board of Directors & Senior Management
  • Financial Statements
  • Map of Projects
  • Sustainability Report

Vision, Mission, and Core Values

Financial Highlights

Message of the Chairman

Message of the President & CEO

Operational Highlights

Corporate Social Responsibility

Corporate Governance Report

Board of Directors & Senior Management

Financial Statements

Map of Projects

Sustainability Report

REACHING OUT

TO THE UNDERSERVED

 

With a diverse portfolio and an expanding geographic footprint, Filinvest Land, Inc. (FLI) reaches out to the affordable and middle-income markets, which are largely underserved yet hold vast potential for growth. FLI continues to serve these sectors with responsive products such as integrated townships and dynamic workspaces. As it develops more land, FLI is focused on enhancing lives and leaving a positive social impact as it builds more Filipino dreams across the country.

On
1218

VISION

To be the most trusted placemaker of environs that inspire and enhance a happy life

MISSION

  • To enliven and enrich lives in Filinvest communities
  • To enable and encourage the growth of our partners
  • To create and add value for our investors
  • To build platforms that create vibrant and sustainable ecosystems
  • To respect and protect the environment
  • To keep affordable housing at our core

CORE VALUES

The core values of integrity, customer service, professionalism, teamwork, innovation and cost-effectiveness are highly valued. The highest standards of business and moral ethics shall be exercised.

On
1219
On
1220
JONATHAN T. GOTIANUN

JONATHAN T. GOTIANUN

The Philippine Economy and Real Estate Industry

In 2019, the Philippine economy grew at a slower pace compared to 2018, ending the year with 5.9% growth in GDP, the first time in eight years it went below 6%. However, Business Process Outsourcing (BPO) revenues and OFW remittances which grew 3.9%, continue to be drivers of growth while inflation stabilized at 2.5% by the end of the year. Filinvest Land, Inc. (FLI) benefitted from the solid growth of the BPO business with office revenues rising 34%.

BUILDING FOR GROWTH

At the end of 2019, the recurring income portfolio reached close to 780,000 square meters. The rental business now accounts for 48% of the company’s total net income, with revenues growing by 25%. We expect to maintain this growth trajectory as we expect a number of our office buildings will be completed this year and prospective clients have already signified their interest to lease from us.

Your Company has expanded to logistics and industrial parks by providing large spaces needed by logistics and light manufacturing companies, initially in the Filinvest Innovation Park in New Clark City. The Filinvest Innovation Park will be ready to welcome locators by the third quarter of 2020. Another new leasing product, a dormitel project, which offers office workers a temporary home close to their workplace will be completed within this year.

Your company targets to reach 2.1 million square meters GLA by 2024 for its recurring income business which includes office, retail, logistics/innovation and dormitel investment properties.

Your Company also launched Php13 billion worth of residential projects across the country catering primarily to the affordable and middle-income markets.

MAXIMIZING SHAREHOLDER VALUE

FLI ended the year with a net income attributable to equity holders of Php6.28 billion, 7% higher than in 2018. We are proud to report that our residential development as well as our rental business achieved significant growth with residential revenues reflecting an 18% growth and a 25% growth from the rental business.

 

In 2019, we declared cash dividends amounting to Php 0.0619 per share equivalent to 25% payout ratio and a dividend yield at the time of declaration of 4% among the highest for Philippine property companies.

2020: A Challenging Year Ahead

In the first few months of 2020, your company is faced with new challenges brought by the COVID-19 pandemic. We will be adversely impacted, the magnitude of which will depend on the extent and duration of the spread of the disease. Nevertheless, your Company is proactively managing the crisis by putting into action its Business Continuity Plan. Your management will see to it that the long-term prospects of your company are preserved.

Corporate Social Responsibility

Amidst the COVID-19 global health crisis, your Company, together with the Filinvest Group through its foundations, pledged Php100 million to support the fight against COVID-19. We supported healthcare workers with over 30,000 personal protective equipment and provided temporary accommodations for them. We also donated ventilators and PCR testing equipment to various hospitals and local government units. Through its affiliate Filinvest Alabang Inc., a space for a quarantine center that can accommodate 108 patients was provided. The Filinvest foundations also sponsored the development of a COVID-19 dashboard together with the Department of Health, the Department of Science and Technology and Thinking Machines, a data science company, to help the government have relevant, timely and accurate data.

Filinvest donates rapid test kits to Muntinlupa City

Filinvest donates rapid test kits to Muntinlupa City

Appreciation

On behalf of our Board of Directors, I would like to express my appreciation to all of you, our shareholders, creditors, business partners and customers for your trust and faith in us. We are grateful for the opportunity to serve you.

On
1221
JOSEPHINE GOTIANUN YAP

JOSEPHINE GOTIANUN YAP

We are now amidst the world’s most perplexing crisis, one that impacts both the economy and public health and is global in nature. Its precedent was more than a 100 years ago when the world was less interdependent, the population less dense and world travel less intense. Your Company’s response to this crisis was far from an insular one.

It was a multi-dimensional response in fighting COVID-19 which included public health care and testing support, financial relief and safety measures for our customers and the community and most important, mitigation measures and financial support to ensure the safety and financial peace of mind of our workforce, both direct and indirect.

Steady Financial Performance

The year 2019 was a year of achieving growth for your Company, FLI. Consolidated revenues grew 16% to Php25.67 billion. This was driven by a 25% increase in rental revenues, which reached Php7.01 billion, and an 18% rise in residential revenues, which amounted to Php17.01 billion. The Company reported a 7% increase in net income attributable to equity holders of the parent from Php5.89 billion in 2018 to Php6.28 billion in 2019. Consolidated net income likewise grew 7% from Php6.08 billion to Php 6.52 billion.

Filinvest Land 10 yr

Rental Business Accounts for 48% of Net Income and Growing

In line with your Company’s program to build up its leasing portfolio, FLI and its subsidiaries now operate 33 office and retail developments with close to 780,000 square meters of Gross Leasable Area (GLA). Currently, there are 210,000 square meters of rental space for delivery in 2020; some of which will move down to 2021 due to the pandemic’s impact on construction. Rental revenues amounted to Php7.01 billion, growing 25% compared to 2018. This was on the back of the completion of two new office buildings that brought FLI’s total to 30 office buildings equivalent to 524,000 square meters of gross leasable area (GLA), and the full-year effect of rentals for buildings completed in 2018.

The office buildings are concentrated in its three major PEZA hubs in Filinvest City, Alabang, Mimosa+ in Clark Special Economic Zone and Cebu Cyberzone. Its other office developments spread around Metro Manila are found in strategic locations in Makati, Bay City, Ortigas complex; many of which are along the MRT and major highways. The office segment is expected to continue to grow in the medium term driven by demand from traditional offices, BPOs, co-working spaces, and emerging technology and e-commerce companies.

Filinvest Cybezone Cebu

Filinvest Cybezone Cebu

Diversifying Your Leasing Portfolio

To further boost its rental business, FLI has also ventured into the logistics space through the launch of the Filinvest Innovation Park at New Clark City in 2019. Another logistics park will be launched in Laguna beside the fully sold Filinvest Technology Park. The company is seeing a demand for big land parcels and ready-built factories to address the needs of the growing logistics and e-commerce industry. Apart from lot leases, FLI is looking at constructing high-specification structures for lease to customers. By the second half of 2020, Phase 1 or 64 hectares of the Innovation Park can start receiving locators who may wish to immediately start their building and warehouse construction. Meanwhile, your Company will be watchful of market demand to start the development of Phase 2 originally programmed to commence by the fourth quarter of 2020. The newly-completed government-built access road from the Subic- Clark-Tarlac Expressway (SCTEX) to New Clark City has substantially improved travel and transportation to and from the Filinvest Innovation Park.

Your Company has also developed a new leasing product which is the “dormitels” to address the needs of office workers who wish to live near their workplace. The first project, Lodgeplus, which will be completed this year, is located within the Filinvest Mimosa+ Leisure City.

Filinvest Innovation Park

Filinvest Innovation Park

Futura Vinta, Zamboanga

Futura Vinta, Zamboanga

Underserved End-User Housing Continues to Be Our Focus

FLI’s residential projects continue to address the needs of the end-user affordable and middle-income markets which remain to be stable and underserved. Residential revenue growth of 18% is attributable to the high sales take-up levels in 2018 as well as the completion of mid-rise and high-rise residential buildings in 2019. Over the last decade, the market has evolved from being in-house financing-centric to bank financing. The residential segment supports its cashflow requirements from customer deposits and bank take-outs.

This growth was brought about by strong demand for FLI’s product offerings under the Futura brand, focused on affordable housing projects and mid-rise building communities, and its dynamic lifestyle Aspire brand with its selection of themed horizontal, resort-inspired mid-rise and highly accessible communities catering to the middleincome segment. In 2019, FLI launched Php13.1 billion worth of residential projects in greater Metro Manila such as Valenzuela City, Taguig City, Manila, Cainta and Muntinlupa, as well as in the provinces of Cavite, Rizal, Laguna, Pampanga, Cebu and Davao. To ensure that demand for housing across the country is addressed, your Company continues to acquire land in key areas and insure sufficient inventory for the medium term.

Making a Big Bet on the Clark Special Economic Zone

Your Company has continued to focus on the development of its projects in the Clark Special Economic Zone: Filinvest Mimosa+ Leisure City which is a joint development of your Company and parent company Filinvest Development Corporation (FDC); and Filinvest at New Clark City which is a joint venture between FLI and the Bases Conversion Development Authority (BCDA).

Developments in the Filinvest Mimosa+ Leisure City are in full swing as one more 15,295-square meter office building is scheduled to be completed in 2020. A total of 10 office buildings will form Phase 1 of the Workplus Office Park over the next five years. FLI has nearly completed the first residential tower of Lodgeplus to house the locator workforce of the business park. The retail strip mall which will cater to the business park workers and guests of the Filinvest Mimosa+ Leisure City has been substantially completed and is expected to be operational later this year. The 24,876-square meter Mimosa Lifestyle Mall has been awarded and has broken ground.

The 288-hectare township Filinvest in New Clark City, a joint venture with BCDA, now has the Filinvest Innovation Park which will be host to logistics locators.

Recognition

In 2019, your Company was recognized by The International Finance’s Real Estate Awards as “The Most Innovative Mixed-Use Developer”. The award-giving body recognizes excellence in the residential and commercial property space in emerging markets. It also honors companies that stand out due to the quality of the products, service standards and consistency of service, by ensuring customer satisfaction and related products, including home loans.

6th Floor, FLI EDSA Office

6th Floor, FLI EDSA Office

Operating Under the New Normal

Your Company has prepared a re-entry program post-Enhanced Community Quarantine (ECQ). The program defines three major issues:

On the financial side, your company reassessed and revisited our project launches and capital expenditure programs and pushed back secondhalf launches to 2021 cutting our capex by 48% to Php16 billion. We will observe sales absorption in this environment and can easily accelerate projects should we experience a V-shape rebound since the project plans are ready and in place.

On workplace safety, we reduced office density by increasing work-from-home arrangements coupled with dual shifting schedules. This is complemented by a sanitation, social distancing and COVID-19 testing protocol which clearly defines the rules governing the new normal. Personal hygiene tools like masks and sanitizers are required and the adoption of video conference meetings is the rule in communicating internally and with our clients and consultants.

Your Company has adjusted to new customer communications and expectations. Your Company is supporting clients by granting our homebuyers a grace period during the duration of the ECQ period. We also gave rent relief to mall tenants who have remained closed during the period. We have instituted new sanitary and social distancing guidelines in both our office and residential properties. Our property management team has provided new services such as organizing small markets or group deliveries to save our homeowners from long lines at the groceries.

Your Company recognizes that financial performance will be impacted in 2020. The extent of the impact will be dependent on the duration and extent of the pandemic and how the government will intervene to minimize the economic disruption from the ECQ. We expect the office business to be most resilient while the retail business will be significantly impacted due to restrictions during the ECQ period and the General Community Quarantine (GCQ) period which limit the operations of our malls and the volume of mallgoers. We also expect the residential business to be weaker because of the more difficult financial circumstances of potential Overseas Filipino Workers (OFW) and the domestic buyers.

Nevertheless, your Company assures all its stakeholders that despite the difficulties, it will continue to deliver outstanding service to its office and retail tenants, and quality housing to residential customers. We are in this for the long term. Your Company has surpassed several crises in the past and has proven itself to be resilient.

Filinvest donates to the Province of Cebu

Filinvest donates to the Province of Cebu

An Active Supporter in the Fight Against COVID-19

Filinvest, through its foundations, pledged Php100 Million to support the fight against COVID-19. First, we rallied to support our healthcare workers with over 30,000 personal protective equipment and provided temporary facilities for frontliners as well as the use of our properties as temporary quarantine centers to prevent any meltdown in our healthcare system. This was followed by donation of ventilators and PCR testing machines to increase testing capacity of the country.

The Filinvest foundations also sponsored the fasttrack development of a COVID-19 dashboard together with the Department of Health and Department of Science and Technology and Thinking Machines, a data science company. This dashboard now serves to track and provide the public and key government decision-makers visibility to cases, testing and hospital resources.

Appreciation for Support

To our home buyers and office and retail tenants, it has been our privilege to serve you. Thank you for your trust. Be assured that we will serve you in the best way possible.

I would also like to express my gratitude to our different stakeholders: our business partners, creditors and shareholders for your support in our efforts to provide the needs of our clients. Finally, to my management team and employees, thank you for your dedication, loyalty and hard work. Together we will continue to build the Filipino dream.

Heartwarming messages from RITM frontliners after being accommodated at The Palms Country Club

Heartwarming messages from RITM frontliners after being accommodated at The Palms Country Club

On
1222
Filinvest Innovation Park at New Clark City

Filinvest Innovation Park at New Clark City

LOGISTICS & INNOVATION PARK

In 2019, the 288-hectare Filinvest at New Clark City in Tarlac took steps towards its vision of creating a future-ready and environmentally sustainable mixed-use township. In addition to acquiring PEZA accreditation, it also marked the start of construction activities within the township. This will dovetail with the government’s completion of the access road to the development from the SCTEX Highway.

With Filinvest Innovation Park at its heart, it is envisioned to bring together international locators and investors within a world-class business and industrial community supported by retail and residential developments.

Golf Ridge at Mimosa+

Golf Ridge at Mimosa+

In addition to the demand for bigger land parcels and ready-built factories, Filinvest Innovation Park is positioning itself to deliver high-specification structures that will match the requirements of the growing logistics and e-commerce industry. Delayed by the COVID-19 disruption, the 64-hectare first phase of the park will now be ready by the second half of 2020 to accept prospective locators and start construction of their buildings or warehouses.

Filinvest at New Clark City is a mixed-use development joint venture with the Bases Conversion Development Authority (BCDA) with Filinvest owning 55%. For 2020, Filinvest is also exploring other locations in its landbank for industrial use. In the pipeline are plans to establish another Filinvest Innovation Park in Laguna.

TOWNSHIPS & MIXED-USE DEVELOPMENTS

Filinvest Mimosa+ Leisure City

The 201-hectare Filinvest Mimosa+ in Pampanga is being developed by Filinvest Mimosa, Inc., a consortium of FLI and Filinvest Development Corporation (FDC). FLI handles projects along its core competencies - the retail, office and residential components while FDC undertakes the hospitality, leisure and gaming components.

The Filinvest Mimosa+ township has been replanned and rehabilitated. Since 2019, interactive installations can be enjoyed in Filinvest Mimosa+ which enhance the community’s experience of open spaces. The township also inaugurated its new showroom for visitors to better appreciate the different establishments and developments in the township and to help prime locator growth.

In support of the township, FDC’s hospitality group completed common area upgrades of the Quest Hotel. Work is now in progress to elevate the current 36-hole
golf course to championship standards. The clubhouse renovation will start in 2020. All these set the overall standards of the township.

Activa Flats, Cubao

Activa Flats, Cubao

FLI’s Workplus Park is now in business with 1Workplus and 2Workplus buildings operational and fully leased out. Two other office buildings are under construction. The company plans to build a total of 10 buildings within the office complex. In 2020, Filinvest Mimosa+ is positioned for further growth with the first phase of the retail strip that will cater to the needs of the office workers within Filinvest Mimosa+ and visitors of the township. The Lodgeplus development will offer residential options to complement the Workplus office hub. The first building is expected to be completed within the year with more than 800 beds. FLI will start selling leasehold rights for its premier residential condominium Golf Ridge Private Estate overlooking the Mimosa Golf Course.

100 West
100 West, with a gross floor area (GFA) of almost 69,000 square meters, has residential, office and retail components. The fully topped-off building is currently undergoing architectural works which are expected to be completed in the coming months. The office and retail components have been completed, and the retail areas started partial operations in the latter part of 2019.

Studio 7
Studio 7, which has a gross floor area (GFA) of almost 58,000, includes an 18-storey BPO tower with three levels of retail spaces and a 17-storey residential tower with studio-type and one-bedroom units that range from 18 to 23 square meters. The residential tower was topped off in the first quarter of 2019 and the units are currently being readied for turnover to buyers.

Activa
Strategically located at the corner of EDSA and Aurora Boulevard in Cubao, the Activa mixed-use complex will have five buildings, with a total GLA of 71,000 square meters for leasing and almost 40,000 square meters for trading. It will have a residential and SOHO (small office/ home office) condominium, a commercial development, two office towers and a hotel. Foundation works and construction of basement levels were completed in 2019. The podium levels are expected to rise in the coming months.

Filinvest Axis, Alabang

Filinvest Axis, Alabang

Doubling the Rental GLA in 5 years (in thousand square meters)

FLI table operational highlights

FLI’s strong office portfolio continued to grow in 2019 as it provided a steady income stream for the company. At the end of 2019, total office GLA reached 524,000 sqm.

OFFICE PORTFOLIO

Alabang
The 18.7-hectare Northgate Cyberzone in Filinvest City, Alabang is currently the market leader in providing premium office buildings catering primarily to Business Process Outsourcing (BPO) companies in Southern Metro Manila. Over 20,000 square meters of new leases and more than 42,000 square meters of renewals were signed and closed in 2019. Northgate Cyberzone’s total GLA of 327,554 square meters was 90% occupied by the end of the year.

Tower Two of Filinvest Axis was completed in 2019 with a GLA of 39,340 square meters. It is currently occupied by multinational BPO companies. The remaining two towers are scheduled for completion in the next two years and are also pursuing LEED Gold Certification.

Cebu
In 2019, two buildings were fully operational in Filinvest Cyberzone Cebu, a joint venture development with the Provincial Government of Cebu. Towers 3 and 4 are slated for completion in 4Q 2021 and 3Q 2022, with 13 BPO office floors each and a combined GLA of 38,718 square meters.

Makati
The mixed-use 100 West in Makati City offers four office levels with a total GLA of 14,333 square meters. Completed in the second quarter of 2019, it was able to attain 100% occupancy by the end of the year.

Aside from 100 West, construction is in progress for the nine-story 387 Building, also located along Gil Puyat Avenue. It is targeted for completion by 2021 and will add 10,010 square meters of GLA to FLI’s portfolio. This has been pre-committed and leased to East West Bank.

Ortigas
Construction continued for One Filinvest, a premium office tower rising in the Ortigas CBD. Originally scheduled for 2020 but delayed by the ECQ, completion is slated by December 2020. It offers 27 office floors with a total GLA of 39,759 square meters. 

Quezon City
Along the stretch of EDSA in Quezon City, FLI has office components in two mixed-use developments: Activa in Cubao and Studio 7 near Timog. These two buildings are expected to add a GLA of 53,572 square meters and 36,541 square meters, respectively within the next two years.

Pasay
Filinvest Cyberzone Bay City has four office buildings with a combined GLA of 66,589 square meters and have been fully occupied. The buildings feature seven office floors and one retail floor located the ground floor of each building.

Clark Freeport Zone
Located within Filinvest Mimosa+ in Pampanga, Workplus is a cluster of 10 office buildings surrounded by verdant greens and retail components. With two operational buildings, two more are slated for completion within the next two years with a combined total GLA of 45,255.29 square meters for the four office buildings with retail components at the ground floor of each building.

RETAIL DEVELOPMENTS

Festival Mall
Located at the heart of Filinvest City in Alabang, Festival Mall is the premier, shopping, dining and recreational destination in southern Metro Manila. With over 340,000 square meters of floor area, it is one of the country’s largest shopping malls with more than 1,500 shops.

As Festival Mall continued to gain traction with its expansion wing in 2019, it remained a preferred location for global brands entering the Philippine market and local brands establishing their names on a national level. Recently opened stores include Promod, Penguin, Perry Ellis, Perigon, Innisfree, Dr. Esthe, Kidzoona, VR Land and Gizmo Central. The line-up of these new concepts allows interactive expression and entertainment for the kids, yuppies, and family market.

Festival Mall, Alabang

Festival Mall, Alabang

Fora Mall
Fora Mall Tagaytay is poised to be a strong regional mall in the Cavite-Laguna triangulate (Silang, Sta. Rosa, and Nasugbu), a location being eyed by tenants while waiting for the completion of the Fora township development.

This prime retail destination provides about 31,000 square meters of leasable space amidst nature, open spaces, and a beautifully-landscaped amphitheater, essentially serving the strengthening local market and burgeoning tourist influx from Metro Manila and neighboring towns. Beyond being a weekend destination, the mall’s increasing weekday foot traffic has proven that it is indeed an everyday mall.

Fora Mall features four cinemas, the Super Metro 24-hour hypermarket, and other junior anchors such as Abenson, La Sedia, and Ace Hardware. To tap the huge market of M.I.C.E. (Meetings, Incentives, Conventions and Exhibitions), Fora Mall recently opened its 1,390-square meter Trade Hall which can be divided into three and can accommodate a capacity of 500 people. It also houses four meeting rooms with sizes ranging from 39 to 57 square meters.

Main Square
Main Square is located along Bacoor Boulevard, in a high-visibility spot along the main thoroughfare of Bacoor, Cavite. With a smaller format of over 18,000 square meters leasable space, it is positioned as a one stop hub for the neighboring gated villages including FLI’s Princeton Heights community. The latest additions to its roster of tenants include Coffee Bean and Tea Leaf, Starbucks and Samgyupsalamat.

Il Corso
Il Corso is a redefined lifestyle destination integrated in FLI’s master-planned coastal township, City di Mare, in Cebu’s South Road Properties. With a resort-style ambience, it has been an in-demand venue for prestigious events covering diverse interests. Recently opened were Il Corso’s four digital cinemas complemented by the dining concepts of Parilya, Chika- an, The Dessert Factory Restaurant and Bakery, and Fishes Seafood and Wine. The mall also welcomed the opening of EastWest Bank and 360 Pharmacy. With all these, Il Corso is steadily realizing its vision of creating the ideal venue to unwind by the sea where people from all walks of life can find their passions, interests and lifestyle essentials.

Alta Spatial, Valenzuela

Alta Spatial, Valenzuela

RESIDENTIAL OFFERINGS

In line with the company’s mission of keeping affordable housing at its core, FLI has developed quality housing products that address the needs of families in key locations across the country, with the whole range of housing products from landed housing to mid-rise and high-rise units. FLI’s Futura brand caters to the affordable market while Aspire serves the middle-income segment.

Under the Futura brand, FLI helps the hardworking Filipino attain his dream of owning a home. Futura offers value-for-money homes built with the Buhos Tibay quality seal. In 2019, three horizontal communities were launched: New Leaf in Cavite, Futura Mira in Laguna and Futura Plains in Rizal. In addition, five mid-rise buildings were also launched: Futura Centro in Manila, Alta Spatial in Valenzuela City, Futura East in Cainta, and 8 Spatial-7 and Centro Spatial-B in Davao.

In 2019, FLI launched 17 new projects and expansion phases worth Php13.1 billion

Sorrento Oasis, Pasig City

Sorrento Oasis, Pasig City

On the other hand, the Aspire communities are developed to meet the demands of urban professionals and upwardly-mobile families through flexible living spaces. In 2019, three horizontal communities were launched: Mira Valley in Rizal, Montebello Phase 3 in Laguna and Hampton Orchards in Pampanga. Five mid-rise buildings were also launched: Belize in Muntinlupa, Panglao Oasis- Daloy in Taguig, Sanremo Oasis-8 and One Oasis-8 in Cebu, and Maldives Oasis-B in Davao.

FLI residential communities are geographically diverse, from Luzon including Metro Manila, to Visayas and Mindanao with landed housing and mid-rise buildings as the most suitable products for the core market. Mid-rise buildings, located primarily within or at the fringes of business districts are preferred by young families for convenience, accessibility and open spaces. The company has allocated key land properties for MRB development.

FLI’s projects in Central Luzon continue to generate good market absorption, particularly in Pampanga and Bulacan. These were attributed to growth drivers such
as the completion of various development projects primarily for the 2019 SEA Games, and the government’s aggressive infrastructure programs in the region.

We believe that part of having happy and satisfied home buyers is enriching their lives through inspiring environs. In FLI residential communities, we allocate a huge percentage of the land for open spaces and amenities. We also have a dedicated team for property management that focuses on ensuring that homeowners’ needs are addressed. The amenities and utilities within the communities are managed and regularly maintained to be made available all the time for the enjoyment of the homeowners.

Optimizing Digital Marketing Technology

FLI has invested heavily in digital technology as it adapts to the younger generation who are mobile and heavy internet and technology users. The Company’s digital assets are now highly optimized as virtual site tours are being conducted. Sales trainings are now also done through FLI’s e-learning training program which was already in place along with webinars and online meetings. FLI has an exisiting advanced inventory management system which is accessible by the sales force digitally, and online reservations were practiced before the pandemic. FLI has an Online Service Desk which allowed FLI to do work-from-home servicing of its customers during the ECQ.

Online Availability and Online Payment Facility in Mobile App
Project virtual tours in website
Buyers’ Kiosk: Customer account and project updates
Website chat facility in filinvest.com and brand microsites
On
1231
Ventilator donation to the Lung Center of the Philippines

Ventilator donation to the Lung Center of the Philippines

The company’s current Corporate Social Responsibility (CSR) initiatives are focused on supporting the government in its fight against the ongoing COVID-19 pandemic and to help ensure the health and well-being of our countrymen.

Concerted COVID-19 Response

Through its foundations and subsidiaries, the Filinvest Group pledged to donate Php100-million worth of COVID-19 test kits and personal protective equipment (PPE) for frontliners and hospital workers. PPEs, rapid test kits and PCR testing machines have been delivered to various hospitals and LGUs across the country. Ventilators have also been donated to RITM, Lung Center and several LGUs to help in the treatment of patients. The company also converted the Filinvest Tent into a 108-bed quarantine facility for mild and asymptomatic COVID-19 cases.

In other efforts, Filinvest opened The Palms Country Club as a temporary shelter for RITM health workers and donated relief goods to families affected by the ECQ in Muntinlupa City. The company also approached the DOST and DOH to help fast-track the development of a COVID-19 dashboard and its underlying data warehouse with the goal of getting relevant and accurate data into the hands of the Inter-Agency Task Force for Emerging Infectious Diseases (IATF-EID) and the general public. Filinvest tapped Thinking Machines Data Science, Inc., the leading data science company in the Philippines, for this project. This was supplemented by apps and training videos for health officers produced by Filinvest’s marketing, training and IT departments.

Filinvest for Taal relief caravan

Filinvest for Taal relief caravan

Balik Eskwela Program

Balik Eskwela Program

Other Advocacies

Following the eruption of Taal Volcano, the Filinvest Group consolidated its resources to help displaced families in Batangas. Employee-volunteers across the conglomerate participated in two relief caravans organized in cooperation with Senator Ralph Recto and Batangas Representative Vilma Santos-Recto. Cleaning kits, drums, fresh water, grocery bags, food packs and other basic necessities were handed out to more than 3,000 beneficiaries in the towns of Laurel, Talisay, Balete, Mataas na Kahoy and Lipa Cityin Batangas. In 2019, FLI continued its “Keep it Green” initiative with tree-planting activities in Rizal and Cebu with a total of 200 tree seedlings planted by FLI volunteers. FLI also participated in the International Coastal Cleanup Day at Freedom Island in the Las Piñas-Parañaque Critical Habitat and Ecotourism Area.

In Mindanao, FLI supported the Department of Education’s “Balik Eskwela” initiative by donating school supplies and backpacks to the students of Nueva Fuerza Elementary School. FLI also mounted simple feeding and gift-giving programs to give back to the less fortunate. FLI employees went to three charities specifically aimed at caring for abandoned children and the elderly.

Employee Welfare and Engagement

Ensuring Health and Safety

When ECQ was declared, FLI immediately enacted initiatives to ensure the safety of employees and their families while keeping the business running. This was done through a skeletal force supported by work-from-home teams. During this period, Human Resources continued to reach out to all employees to monitor their condition and boost morale. Continuous learning was encouraged through leadership trainings and other programs offered online by FLI’s Dream Weaver Institute. 

Workplace safety became the top priority when the company was allowed to reopen under modified ECQ. Sanitation, social distancing and commute support committees were created to help ease employees into the new guidelines. Safety protocols will continue to be implemented such as rapid testing, temperature checks, wearing of masks, shifting work schedules and more, to keep employees protected as they adjust to the new normal.

Employee Engagement

In March 2019, FLI launched the EnRiCh program to further enhance employees’ individuality and growth through ensuring wellness, ripening relationships, and channeling their passions. 

Under EnRiCh, FLI promoted holistic wellness, work life balance, camaraderie, and fun work environments through various employee engagement activities held throughout the year.

Major activities for 2019 were the Sports Fest, fun programs for special occasions such as Valentine’s Day and Halloween, and an MTV-themed Christmas party celebrations which gave employees outlets to destress and socialize with co-workers.

 

Implementing safety protocols in FLI offices

Implementing safety protocols in FLI offices

2019 Christmas party

2019 Christmas party

#BuildTheDreamTogether

2020 without doubt is a year that will go down in history. But let it be known that it was a year when we all came together as one community, as one family - braving the challenges set before us from the Taal eruption to today's COVID-19 pandemic. Hand in hand, we shall continue to #BuildTheDreamTogether

On
1229

Compliance with Best Practices on Corporate Governance

For the year 2019, FLI substantially complied with the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC) regulatory requirements. It is also in compliance with its Revised Manual for Corporate Governance. In particular, your Company wishes to highlight the following: (a) the election of three (3) independent directors to the Board; (b) the appointment of members of the Executive Committee, the Audit and Risk Management Oversight Committee, the Nominations Committee, the Compensation Committee, the Technical Committee and the Related-Party Transaction and Corporate Governance Committee; (c) the conduct of regular quarterly board meetings and special meetings, the faithful attendance of the directors at these meetings and their proper discharge of duties and responsibilities as such directors; (d) the adoption of the Related Party Transaction Policy; (e) the submission to the SEC of reports and disclosures required under the Securities Regulation Code; (f) FLI’s adherence to national and local laws pertaining to its operations; and (g) the observance of applicable accounting standards by FLI.

In order to keep abreast of best practices in Corporate Governance, the members of the Board and top management have attended seminars on corporate governance initiated by duly accredited institutions. FLI constantly reviews its Corporate Governance practices and welcomes proposals, especially from institutions and entities such as the SEC, PSE and the Institute of Corporate Directors.

Leading the practice of good Corporate Governance is the Board of Directors. Your Board of Directors is firmly committed to the adoption of and compliance with the best practices in Corporate Governance as well as the observance of all relevant laws, regulations and ethical business practices.

Nominations and Voting for the Board of Directors


The members of the Board are elected during the annual stockholders’ meeting. The stockholders of FLI may nominate individuals to be members of the Board of Directors.


The Nomination Committee receives nominations for independent directors as may be submitted by the stockholders. After the deadline for the submission thereof, the Nomination Committee meets to consider the qualifications as well as grounds for disqualification, if any, of the nominees based on the criteria set forth in FLI’s Revised Manual on Corporate Governance and the Securities Regulation Code. All nominations shall be signed by the nominating stockholders together with the acceptance and conformity by the would-be nominees. The Nomination Committee shall then prepare a Final List of Candidates enumerating the nominees who passed the screening. The name of the person or group of per-sons who recommends nominees as independent directors shall be disclosed along with his or their relationship with such nominees.


Only nominees whose names appear on the Final List of Candidates shall be eligible for election as in-dependent directors. No other nomination shall be entertained after the Final List of Candidates shall have been prepared. No further nomination shall be entertained or allowed on the floor during the annual meeting.


The conduct of the election of independent directors shall be in accordance with FLI’s Manual on Corporate Governance. In 2008, FLI filed with the SEC its application for the amendment of the by-laws to include the procedure that will govern the nomination and election of independent directors. This procedure is consistent with FLI’s Revised Manual on Corporate Governance and Rule 38 of the Securities Regulation Code. The approval by the Commission on said application was issued on April 8, 2009. The power of the Board to amend the By-Laws has been delegated by the stockholders representing two-thirds (2/3) of FLI’s outstanding capital stock in an annual meeting of said stockholders on May 27, 1994.


It shall be the responsibility of the Chairman of the annual meeting to inform all stockholders in attendance of the mandatory requirement of electing independent directors. He shall ensure that independent directors are elected during the annual meeting. Specific slots for independent directors shall not be filled up by unqualified nominees. In case of failure of election for independent directors, the Chairman of the meeting shall call a separate election during the same meeting to fill up the vacancy.

A stockholder may vote such number of shares for as many persons as there are directors to be elected. He may cumulate said shares and give one candidate as many votes as the number of directors to be elected multiplied by the number of his shares, or he may distribute them on the same principle among as many candidates as he shall see fit; Provided, that the total number of votes cast by him shall not exceed the number of shares owned by him as shown in the books of FLI multiplied by the whole number of directors to be elected.


The directors of FLI are elected at the annual stockholders’ meeting, to hold office until their respective successors have been duly appointed or elected and qualified. Vacancies in the Board occurring mid-term are filled as provided in the Corporation Code and FLI’s Revised Manual on Corporate Governance. Officers and committee members are appointed or elected by the Board of Directors typically at its first meeting following the annual stockholders’ meeting, each to hold office until his successor shall have been duly elected or appointed and qualified.


Independent Directors


Before the annual meeting, a stockholder of FLI may nominate individuals to be independent directors, taking into account the following guidelines:

  1. “Independent director” means a person who, apart from his fees and shareholdings, is independent of management and free from any business or other relationship which could, or could reasonably be perceived to, materially interfere with his exercise of independent judgement in carrying out his responsibilities as director in any corporation that meets the requirements of Section 17.2 of the Securities Regulation Code and includes, among others, any person who:
    1. Is not a director or officer or substantial stockholder of FLI or of its related companies or any of its substantial shareholders (other than as an independent director of any of the fore-going);
    2. Is not a relative of any director, officer or substantial stockholder of FLI, any of its related companies or any of its substantial shareholders. For this purpose, “relative” includes spouse, parent, child, brother, sister, and the spouse of such child, brother or sister;
    3. Is not acting as a nominee or representative of a substantial shareholder of FLI, any of its related companies or any of its substantial shareholders;
    4. Has not been employed in an executive capacity by FLI, any of its related companies or any of its substantial shareholders within the last two (2) years;
    5. Is not related as a professional adviser of FLI, any of its related companies or any of its substantial shareholders within the last two (2) years, either personally or through his firm;
    6. Has not engaged and does not engage in any transaction with FLI or any of its related companies or any of its substantial shareholders, whether by himself or with other persons or through a firm of which he is a partner or a company of which he is a director or substantial shareholder, other than transactions which are conducted at arms-length and are immaterial or insignificant.
  2. When used in relation to FLI, subject to the requirements above:
    1. “Related company” means another company which is: (a) its holding company, (b) its subsidiary, or (c) a subsidiary of its holding company; and
    2. “Substantial shareholder” means any person who is directly or indirectly the beneficial own-er of more than ten percent (10%) of any class of its equity security.
  3. An independent director of FLI shall have the following qualifications:
    1. He shall have at least one (1) share of stock of FLI;
    2. He shall be at least a college graduate or he shall have been engaged in or exposed to the business of FLI for at least five (5) years;
    3. He shall possess integrity/probity; and
    4. He shall be assiduous.
  4. No person enumerated under Part II, Item A, Par. 8 of the Revised Manual of Corporate Governance shall qualify as an independent director. He shall likewise be disqualified during his tenure under the following instances or causes:
    1. He becomes an officer or employee of FLI, or becomes any of the persons enumerated under items (A) hereof:
    2. His beneficial security ownership exceeds 10% of the outstanding capital stock of FLI;
    3. He fails, without any justifiable cause, to attend at least 50% of the total number of board meetings during his incumbency unless such absences are due to grave illness or death of an immediate family member;
    4. If he becomes disqualified under any of the grounds stated in FLI’s Revised Manual on Corporate Governance.

 

  1. Pursuant to SEC Memorandum Circular No. 04, Series of 2017, which took effect on March 2017, the following additional guidelines, amending the rules on the term limit of independent directors, shall be observed in the qualification of individuals to serve as independent directors:
    1. The independent director shall serve for a maximum cumulative term of nine (9) years;
    2. After which, the independent director shall be perpetually barred from re-election as such in the same company, but may continue to qualify as non-independent director;
    3. In the instance that a company wants to retain an independent director who has served for nine (9) years, the Board should provide meritorious justification/s and seek shareholders’ approval during the annual shareholders’ meeting; and
    4. The reckoning of the cumulative nine-year term is from 2012.

 

Members of the Board of Directors, Attendance and Committee Memberships

The following table lists down the members of the Board of Directors and their attendance in Board Meetings during 2019 which was which was reported during the Annual Stockholders’ Meeting held on April 22, 2019.

Board Name Date of Election No. of Meetings
Held During the
Year
No. of Meetings
Attended
%
Chairman Jonathan T. Gotianun April 22, 2019 5 4 80%
Member L. Josephine Gotianun-Yap April 22, 2019 5 5 100%
Member Andrew T. Gotianun, Jr. April 22, 2019 5 4 80%
Member Michael Edward T. Gotianun April 22, 2019 5 4 80%
Member Efren C. Gutierrez April 22, 2019 5 5 100%
Member Francis Nathaniel C. Gotianun April 22, 2019 5 4 80%
Independent Val Antonio B. Suarez April 22, 2019 5 5 100%
Independent Ernesto S. De Castro* April 22, 2019 5 2 100%
Independent Gemilo J. San Pedro** July 17, 2019 5 2 100%

 

Committee Membership

Name Position
Mr. Jonathan T. Gotianun

Chairman of the Board

Member – Executive Committee

Member - Audit & Risk Management

Oversight Committee

Member – Compensation Committee

Mrs. L. Josephine Gotianun-Yap

President and Chief Executive Officer

Chairman – Executive Committee

Member – Nominations Committee

Member – Compensation Committee

Mr. Michael Edward T. Gotianun

Member – Executive Committee

Member – Technical Committee

Mr. Andrew T. Gotianun, Jr.

Member – Executive Committee

Francis Nathaniel C. Gotianun

Member – Executive Committee

Atty. Efren C. Gutierrez

Member – Audit & Risk Management

Oversight Committee

Chairman – Nominations Committee

Member- Related-Party Transaction &

Corporate Governance Committee

Atty. Val Antonio B. Suarez

Lead Independent Director

Member – Audit & Risk Management

Oversight Committee

Chairman – Nominations Committee

Chairman – Compensation Committee

Member- Related-Party Transaction &

Corporate Governance Committee

Engr. Ernesto S. De Castro

Independent Director

Chairman – Technical Committee

Mr. Gemilo J. San Pedro

Lead Independent Director

Member – Audit & Risk Management

Oversight Committee

Chairman – Nominations Committee

Chairman – Compensation Committee

Member- Related-Party Transaction &

Corporate Governance Committee

 

Duties and Responsibilities of the Different Board Committees

Committee Members

Office Name Date of Appointment

No. of Meetings

Held During

the Year

No. of

Meetings

Attended

%

Length of

Service in

Committee

Chairman L. Josephine Gotianun-Yap April 22, 2019 6 6 100% 1 year
Member (ED) Michael Edward T. Gotianun April 22, 2019 6 5 83% 1 year
Member (ED) Francis Nathaniel C. Gotia-nun April 22, 2019 6 5 83% 1 year
Member (ED) Jonathan T. Gotianun April 22, 2019 6 6 100% 1 year
Member (ED) Andrew T. Gotianun, Jr. April 22, 2019 6 4 67% 1 year
Member (ED) Not Applicable          

*Committee members are appointed annually.

 

The functions, duties and responsibilities of the Board of Directors may be delegated, to the fullest extent permitted by law, to an Executive Committee to be established by the Board of Directors. The Executive Committee shall consist of five (5) members, at least three (3) of whom shall be members of the Board of Directors. All members of the Executive Committee shall be appointed by and under the control of the Board of Directors.

The Executive Committee may act on such specific matters within the competence of the Board of Directors as may be delegated to it by a majority vote of the Board of Directors, except with respect to: (i) approval of any action for which shareholders’ approval is also required; (ii) the filing of vacancies in the Board of Directors; (iii) the amendment or repeal of these By-Laws or the adoption of new by-laws; (iv) the amendment or repeal of any resolution of the Board of Directors which by its express terms is not so amendable or repealable; and (v) the distribution of cash dividends to shareholders.

The act of the Executive Committee on any matter within its competence shall be valid if (i) it is approved by the majority vote of all its members in attendance at a meeting duly called where a quorum is present and acting throughout, or (ii) it bears the written approval or conformity of all its incumbent members without necessity for a formal meeting.

The Executive Committee shall hold its regular meeting at least once a month or as often as it may determine, in the principal office of the Corporation or at such other place as may be designated in the notice. Any member of the Executive Committee may, likewise, call a meeting of the Executive Committee at any time. Notice of any meeting of the Executive Committee shall be given at least seven (7) business days prior to the meeting or such shorter notice period as may be mutually agreed. The notice shall be accompanied by (i) a proposed agenda or statement of purpose and (ii) where possible, copies of all documents, agreements and information to be considered at such meeting.

Committee Members

Office Name

Date of

Appointment

No. of Meetings

Held During

the Year

No. of Meetings

Attended

%

Length of

Service in

Committee

Chairman (ID) Gemilo J. San Pedro** October 16, 2019 1 4 100% 2 months
Member (ID) Val Antonio B. Suarez April 22, 2019 3 3 100% 8 months
Member (ED) Jonathan T. Gotianun April 22, 2019 3 2 67% 8 months
Member (NED) Efren C. Gutierrez April 22, 2019 3 3 100% 8 months

* Committee members are appointed annually.
** Gemilo J. San Pedro was appointed as Chairman of the Audit & Risk Management Oversight Committee on October 16, 2019

 

The Audit & Risk Management Oversight Committee is composed of at least three (3) Director-members, preferably with accounting and financial background, at least one of whom must be an independent director and another should have related audit experience.

The Chairman of this Committee should be an independent director. He is responsible for inculcating in the minds of the Board members the importance of management responsibilities in maintaining a sound system of internal control and the Board’s oversight responsibility.

  • Duties and Responsibilities:
    • Provide oversight of financial management functions, specifically in areas of managing credit, market, liquidity, operational, legal and other risks of the Corporation, and crisis management;
    • Provide oversight of the Corporation’s internal and external auditors;
    • Review and approve audit scope and frequency, and the annual internal audit plan;
    • Discuss with the external auditor before the audit commences the nature and scope of the audit, and ensure coordination where more than one (1) audit firm is involved;
    • Set up an internal audit department and consider the appointment of an internal auditor as well as an independent external auditor, the audit fee and any question of resignation or dis-missal;
    • Monitor and evaluate the adequacy and effectiveness of the Corporation’s internal control system;
    • Receive and review reports of internal and external auditors and regulatory agencies, where applicable, and ensure that management is taking appropriate corrective actions, in a timely manner, in addressing control and compliance functions with regulatory agencies;
    • Review the quarterly, half-year and annual financial statements before submission to the Board with particular focus on the following matters:
      • Any change/s in accounting policies and practices
      • Major judgmental areas
      • Significant adjustments resulting from the audit
      • Going concern assumptions
      • Compliance with accounting standards, and
      • Compliance with tax, legal and regulatory requirements
    • Coordinate, monitor and facilitate compliance with existing laws, rules and regulations;
    • Evaluate and determine non-audit work by external auditor and keep under review the non-audit fees paid to the external auditor both in relation to their significance to the auditor and in relation to the Corporation’s total expenditure on consultancy. The non-audit work should be disclosed in the Annual Report.
    • Establish and identify the reporting line of the chief audit executive so that the reporting level allows the internal audit activity to fulfill its responsibilities. The chief audit executive shall report directly to the Audit & Risk Management Oversight Committee functionally. The Audit & Risk Management Oversight Committee shall ensure that the internal auditors have free and full access to the Corporation’s records, properties and personnel relevant to the internal audit activity, and that the internal audit activity is free from interference in determining the scope of internal auditing examinations, performing work, and communicating results, and shall provide a venue for the Audit & Risk Management Oversight Committee to review and approve the annual internal audit plan.

Committee Members

Office Name

Date of

Appointment

No. of Meetings

Held During

the Year

No. of

Meetings

Attended

%

Length of

Service in

Committee

Chairman (ID) Val Antonio B. Suarez April 22, 2019 1 1 100% 8 months
Member (ED) L. Josephine Gotianun-Yap April 22, 2019 1 1 100% 8 months
Member (ED) Jonathan T. Gotianun April 22, 2019 1 1 100% 8 months
Member (ID) Gemilo J. San Pedro** October 16, 2019       2 months

* Committee members are appointed annually.
** Gemilo J. San Pedro was appointed as Chairman of the Audit & Risk Management Oversight Committee on October 16, 2019

The Compensation Committee is composed of at least three (3) Director-members, two (2) of whom must be independent
directors.

  • Duties and Responsibilities:
    • Establish a formal and transparent procedure for developing a policy on executive remuneration and for fixing the remuneration packages of corporate officers and directors, and provide oversight over remuneration of senior management and other key personnel, ensuring that compensation is consistent with the Corporation’s culture, strategy and control environment.
    • Designate amount of remuneration, which shall be in a sufficient level to attract and retain directors and officers who are needed to run the Corporation successfully.
    • Establish a formal and transparent procedure for developing a policy on executive remuneration and for fixing the remuneration packages of individual directors, if any, and officers.
    • Develop a form on Full Business Interest Disclosure as part of the pre-employment requirements for all incoming officers, which, among others, compel all officers to declare under the penalty of perjury all their existing business interests or shareholdings that may directly or in-directly conflict in their performance of duties once hired.
    • Disallow any director to decide his or her own remuneration.
    • Provide in the Corporation’s annual reports and information and proxy statements a clear, concise and understandable disclosure of the compensation of its executive officers for the previous fiscal year and ensuing year.
    • Review the existing Human Resources Development or Personnel Handbook, to strengthen provisions on conflict of interest, salaries and benefits policies, promotion and career advancement directives and compliance of personnel concerned with all statutory requirements that must be periodically met in their respective posts.

Committee Members

Office Name

Date of

Appointment

No. of Meetings

Held During

the Year

No. of

Meetings

Attended

%

Length of

Service in

Committee

Chairman (NED) Nomination Committee April 22, 2019 2 2 100% 8 months
Member (ED) L. Josephine Gotianun-Yap April 22, 2019 2 2 100% 8 months
Member (ID) Val Antonio B. Suarez April 22, 2019 2 2 100% 8 months
Member (ID) Gemilo J. San Pedro** October 16, 2019 1 1 100% 2 months

* Committee members are appointed annually.
** Gemilo J. San Pedro was appointed as Chairman of the Audit & Risk Management Oversight Committee on October 16, 2019

The Nomination Committee consists of at least three (3) Director-members, two (2) of whom must be independent directors. The
Head of the Human Resources Department is a non-voting ex-officio member.

The Nomination Committee may review and evaluate the qualifications of all persons nominated to the Board, as well as those nominated to other positions requiring appointment by the Board, and provide assessment on the Board’s effectiveness in directing the process of renewing and replacing the Board’s members.

The Nomination Committee may consider the following guidelines in the determination of the number of directorships for the
Board members:

  • The nature of the business of the Corporations in which he is a director;
  • Age of the director;
  • Number of directorships/active memberships and officerships in other corporations or organizations; and
  • Possible conflict of interest.

The Chief Executive Officer and other executive directors shall submit themselves to a low indicative limit on membership in other corporate Boards. The same low limit shall apply to independent, non-executive directors who serve as full-time executives in other corporations. In any case, the capacity of directors to serve with diligence shall not be compromised.

The Nomination Committee may pre-screen and shortlist all candidates nominated to become a member of the Board of Directors, taking into account the qualifications and the grounds for disqualifications as set forth in FLI’s Revised Manual of Corporate Governance and the Securities Regulation Code.

The Nomination Committee promulgates the guidelines or criteria to govern the conduct of the nomination for members of the Board of Directors. The same shall be properly disclosed in the Company’s in-formation or proxy statement or such other reports required to be submitted to the Securities and Ex-change Commission (SEC).

The nomination of independent directors is be conducted by the Committee before the stockholders’ meeting. All recommendations should be signed by the nominating stockholders together with the acceptance and conformity by the would- be nominees.

The Committee pre-screens the qualifications and prepares a final list of all candidates and put in place screening policies and parameters to enable it to effectively review the qualifications of the nominees for independent directors as set forth in the Company’s Revised Manual on Corporate Governance.

After the nomination, the Committee prepares a Final List of Candidates which contains all the information about all the nominees for independent directors, and is made available to the SEC and all stockholders through the filing and distribution of the Information Statement, or in such reports the Company is required to submit to the SEC. The name of the person or group of persons who recommended the nomination of the independent director shall be identified in such report, including any relationship with the nominee.

Committee Members

Office Name

Date of

Appointment

No. of Meetings

Held During

the Year

No. of

Meetings

Attended

%

Length of

Service in

Committee

Chairman (ID) Val Antonio B. Suarez April 22, 2019 No meeting held     8 months
Member (NED) Efren C. Gutierrez April 22, 2019 No meeting held     8 months
Member (ID) Gemilo J. San Pedro** October 16, 2019 No meeting held     8 months

* Committee members are appointed annually.
** Gemilo J. San Pedro was appointed as Chairman of the Audit & Risk Management Oversight Committee on October 16, 2019

The Related Party Transaction and Corporate Governance Committee is composed of at least three (3) non-executive directors,
two (2) of whom must be independent, including the Chairman of the Com-mittee.

The Related Party Transaction Committee has the following duties and responsibilities:

  • Conduct continuous evaluation and monitoring of existing relations among counterparties to en-sure that all related parties are identified, related party transactions (“RPTs”) are monitored, and subsequent changes in relationships with counterparties (from non-related to related and vice versa) are captured. Related parties, RPTs and changes in relationships should be reflected in the relevant reports to the Board and the SEC;
  • Evaluate all material RPTs to ensure that these are transacted on an arm’s length basis and that no corporate or business resources of the company are misappropriated or misapplied, and to de-termine any potential reputational risk issues that may arise as a result of or in connection with the transactions.
  • In evaluating RPTs, the Committee may take into account the following:
    • The related party’s relationship to the Corporation and interest in the transaction;
    • The material facts of the proposed RPT, including the proposed aggregate value of such transaction;
    • The benefits to the Corporation of the proposed RPT;
    • The availability of other sources of comparable products or services; and
    • An assessment of whether the proposed RPT is on terms and conditions that are compa-rable to the terms
      generally available to an unrelated party under similar circumstances. The company should have an effective price
      discovery system in place and exercise due diligence in determining a fair price for RPTs.
  • Ensure that appropriate disclosure is made to the regulating and supervising authorities relating to the Corporation’s RPT exposures and policies on conflicts of interest or potential conflicts of interest;
  • Report to the Board, on a regular basis, the status and aggregate exposures to each related party, as well as the total amount of exposures to all related parties;
  • Ensure that transactions with related parties, including write-off of exposures, are subject to a periodic independent review or audit process; and
  • Oversee the implementation of the system for identifying, monitoring, measuring, controlling, and reporting RPTs, including a periodic review of RPT policies and procedures.

Committee Members

Office Name

Date of

Appointment

No. of Meetings

Held During

the Year

No. of

Meetings

Attended

%

Length of

Service in

Committee

Chairman (ID) Ernesto S. De Castro April 22, 2019 No meeting held     8 months
Member (NED) Michael Edward T. Gotianun April 22, 2019 No meeting held     8 months
Member (ID) Val Antonio B. Suarez April 22, 2019 No meeting held     8 months

* Committee members are appointed annually.

Shareholders’ Rights

The Corporation recognizes that the most cogent proof of good corporate governance is that which is visible to the eyes of its investors. Therefore the following provisions are issued for the guidance of all internal and external parties concerned, as a governance covenant between the Corporation and all its investors:

The Board shall be committed to respect the following rights of the stockholders:

A. Voting Right

  1. Shareholders shall have the right to elect, remove and replace directors and vote on certain corporate acts in accordance with the Corporation Code.
  2. Cumulative voting is mandatory in the election of directors.
  3. A director shall not be removed without cause if it will deny minority shareholders representation in the Board.

B. Power of Inspection

  • All shareholders shall be allowed to inspect corporate books and records including minutes of Board meetings and stock registries in accordance with the Corporation Code, during business hours and upon prior written notice to the Corporation and for good reason.
  • All Shareholders shall be furnished with annual reports, including financial statements, without cost or restrictions.

C. Right to Information

  1. The Shareholders shall be provided, upon request, with periodic reports which disclose personal and professional information about the directors and officers and certain other matters such as their holdings of the Corporation’s shares, dealings with the Corporation, relationships among directors and key officers, and the aggregate compensation of directors and officers.
  2. The minority shareholders shall be granted the right to propose the holding of a meeting, and the right to propose items in the agenda of the meeting, provided the items are for legitimate business purposes.
  3. The minority shareholders shall have access to any and all information relating to matters for which the management is accountable for and to those relating to matters for which the management shall include such information and, if not included, then the minority shareholders shall be allowed to propose to include such matters in the agenda of stockholders’ meeting, being within the definition of “legitimate purposes”.

D. Right to Dividends

  1. Shareholders shall have the right to receive dividends, subject to the discretion of the Board.
  2. The Commission may direct the Corporation to declare dividends when its retained earnings shall be in excess of 100% of its paid-in capital stock, except: i) when justified by definite corporate expansion projects or programs approved by the Board; or ii) when the Corporation is prohibited under any loan agreement with any financial institution or creditor, whether local or foreign, from declaring dividends without its consent, and such consent has not been secured; or iii) when it can be clearly shown that such retention is necessary under special circumstances obtaining in the Corporation, such as when there is a need for special reserve for probable contingencies.

E. Appraisal Right

The Shareholders shall have appraisal right or the right to dissent and demand payment of the fair value of their shares in the
manner provided for under the Corporation Code of the Philippines, under any of the following circumstances:

  • In case any amendment to the articles of incorporation has the effect of changing or restricting the rights of any stockholders or class of shares, or of authorizing preferences in any respect superior to those of outstanding shares of any class, or of extending or shortening the term of corporate existence;
  • In case of sale, lease, exchange, transfer, mortgage, pledge or other disposition of all or substantially all of the
  • corporate property and assets as provided in the Corporation Code; and
  • In case of investment of corporate funds for any purpose other than the primary purpose of the Corporation; and
  • In case of merger or consolidation.

F. The Board should be transparent and fair in the conduct of the annual and special shareholders’ meetings of the corporation.

  • The shareholders should be encouraged to personally attend such meetings. If they cannot attend, they should be apprised ahead of time of their right to appoint a proxy. Subject to the requirements of the By-Laws, the exercise of that right shall not be unduly restricted and any doubt about the validity of a proxy should be resolved in the shareholder’s favor.

G. It shall be the duty of the directors to promote shareholder rights, remove impediments to the exercise of shareholders’ rights and allow possibilities to seek redress for violation of their rights. They shall encourage the exercise of shareholders’ voting rights and the solution of collective action prob-lems through appropriate mechanisms. They shall be instrumental in removing excessive costs and other administrative or practical impediments to shareholders participating in meetings and/or voting in person. The directors shall pave the way for the electronic filing and distribution of shareholder information necessary to make informed decisions, subject to legal constraints.

Notice of Annual Stockholders’ Meeting

On January 16, 2019, FLI disclosed to the Philippine Stock Exchange that its Board of Directors had fixed the date of the Annual
Stockholders’ Meeting on April 22, 2019 with the record date set on March 20, 2019.

Stockholders were informed that the Annual Stockholders’ Meeting for 2019 would be held at 10:30 a.m. at Ballroom 1 and 2,
Crimson Hotel Filinvest City, Manila, Entrata Urban Complex, 2609 Civic Drive, Filinvest City, Alabang, Muntinlupa City.

Procedures During the Annual Stockholders’ Meeting

The following was the agenda of the Annual Stockholders’ Meeting last April 22, 2019:

  1. Call to Order
  2. Proof of Notice of Meeting
  3. Certification of Quorum
  4. Approval of the Minutes of the Annual Stockholders’ Meeting held on 20 April 2018
  5. Presentation of the President’s Report
  6. Ratification of the Audited Financial Statements for the year ending 31 December 2018
  7. Ratification of the Acts and Resolutions of the Board of Directors, Board Committees and Management from the Date of the Last Annual Stockholders’ Meeting up to 22 April 2019
  8. Election of the Members of the Board of Directors, including three (3) Independent Directors, to serve for 2019-2020
  9. Appointment of the External Auditor
  10. Other Matters
  11. Adjournment

On the same day, right after the annual stockholders’ meeting, FLI disclosed to the Philippine Stock Exchange the results of the meeting which included the following:

  • Approval of the Minutes of the Annual Stockholders’ Meeting held on April 20, 2018;
  • Ratification of the Audited Financial Statements for the year ended December 31, 2018;
  • Ratification of all the acts, resolutions and proceedings of the Board of Directors, Executive Committee and Management from the date of the last annual stockholders’ meeting up to April 22, 2019; and
  • Approval to delegate to the Board of Directors the authority to select, designate and appoint the independent external auditor of FLI for the year 2019.

FLI also disclosed that the following were elected as directors, to serve for the period 2019-2020 and until their successors shall have been duly elected and qualified:

  1. ANDREW T. GOTIANUN, JR.
  2. JONATHAN T. GOTIANUN
  3. L. JOSEPHINE GOTIANUN-YAP
  4. MICHAEL EDWARD T. GOTIANUN
  5. EFREN C. GUTIERREZ
  6. FRANCIS NATHANIEL C. GOTIANUN
  7. ATTY. VAL ANTONIO B. SUAREZ (as independent director)
  8. LUIS Y. BENITEZ, JR. (as independent director)
  9. ERNESTO S. DE CASTRO (as independent director)

FLI made another disclosure to the Philippine Stock Exchange regarding the declaration of the Board of Directors of a cash dividend for all stockholders on record as of May 22, 2019 in the amount of P0.0619 per share. The payment date was set on June 17, 2019.

FLI fully complied with the Philippine Stock Exchange (PSE) and Securities and Exchange Commission (SEC) regulatory requirements. Below is the Company’s Reportorial Compliance Report:

Type of Report Number of Filings

Type of Report
Financials

Annual Report (17-A)

Quarterly Report (17-Q)

Audited Financial Statements

 

1

3

1

Ownership

Annual List of Stockholders – for Annual Stockholders’ Meeting

Foreign Ownership Monitoring Report

Public Ownership Report

Report on Number of Shareholders and Board Lot

Statement of Changes in Beneficial Ownership of Securities (23-B)

Top 100 Stockholders’ List

 

1

14

4

12

32

4

Notices – Stockholders’ Meetings/Briefings/Dividends

Notice of Annual/Special Stockholders’ Meeting

Dividend Notice (part of disclosure on Results of Stockholders’ Meeting)

Notice of Analysts’ Briefing

 

1

1

4

Other Disclosures

Certification – Qualifications of Independent Directors

Clarifications of News Articles

Definitive Information Statement (20-IS)

General Information Sheet

Preliminary Information Statement (20-IS)

SEC Form 17-C (Current Report)

Which includes the following:

  • Results of Annual Stockholders’ Meeting/Board Meetings (7)
  • Press Releases (7)

 

1

2

1

1

1

 

 

On January 8, 2007, the Board of Directors approved an annual cash dividend payment ratio for the Company’s issued shares of twenty percent (20%) of its consolidated net income from the preceding fiscal year, subject to the applicable laws and regulations and the absence of circumstances which may restrict the payment of such dividends. Circumstances which could restrict the payment of cash dividends, include, but are not limited to, when the Company undertakes major projects and developments requiring substantial cash expenditures or when it is restricted from paying cash dividends by its loan covenants. The Company’s Board may, at any time, modify such dividend pay-out ratio depending upon the results of operations and future projects and plans of the Company.

On June 30, 2008, FLI paid cash dividends of Php0.02 per share or a total of Php485.72 million to all shareholders on record as of June 15, 2008. This equivalent to 28.5% of the Php1.704 billion in net income generated in 2007.

On June 9, 2009, FLI paid a cash dividend of Php0.033 per share or a total of Php800.24 million to all shareholders on record as of May 14, 2009. This is equivalent to 42.9% of the Php1.867 billion net income reported in 2008.

On June 9, 2010, FLI paid a regular cash dividend of Php0.017 and special cash dividend of Php0.016 per share or a total of Php800.24 million to all shareholders on record as of May 18, 2010. This is equivalent to 39.7% of 2009’s Php2.018 billion net income.

On June 7 2011, FLI paid a regular cash dividend of Php0.0196 and a special cash dividend of Php0.0196 per share or a total of Php950.59 million to all shareholders on record as of May 13, 2011. This is equivalent to 39.2% of 2010’s Php2.246 billion core net income.

On June 21 2012, FLI paid a regular cash dividend of Php0.0237 and a special cash dividend of Php0.0237 per share, or a total of Php0.0475 per share. This was equivalent to Php1,151.86 million, and paid to all shareholders on record as of May 25, 2012. This is equivalent to 39.2% of 2011’s Php2.940 billion net income.

On July 3, 2013, FLI paid a regular cash dividend of Php0.0280 and a special cash dividend of Php0.020 per share, or a total of Php0.0480 per share. This was equivalent to Php1,163.99 million, and paid to all shareholders on record as of June 7, 2013. This is equivalent to 33.9% of 2012’s Php3.431 billion net income.

On July 2, 2014, FLI paid regular cash dividends of Php0.032 and a special cash dividend of Php0.018 per share, or a total of Php0.050. This was equivalent to Php1,212.48 million and paid to all shareholders on record as of June 6, 2014. This is equivalent to 30.9% of 2013’s net income.

In 2015, FLI declared cash dividends to all stockholders of record as of June 5, 2015 (ex-date June 2, 2015), in the amount of P0.0560 per share, broken down as follows:

  • Regular Cash Dividend of P0.0373 per share
  • Special Cash Dividend of P0.0187 per share

Payment date was set on July 1, 2015.

In 2016, FLI declared cash dividends to all stockholders of record as of May 22, 2016, in the amount of P0.061 per share, broken down as follows:

  • Regular Cash Dividend of P0.041 per share
  • Special Cash Dividend of P0.020 per share

Payment date was set on June 15, 2016.

In 2017, FLI declared cash dividends to all stockholders of record as of May 21, 2017, in the amount of P0.0613 per share, broken down as follows:

  • Regular Cash Dividend of P0.0430 per share
  • Special Cash Dividend of P0.0183 per share

Payment date was set on June 14, 2017.

In 2018, FLI declared cash dividends to all stockholders of record as of May 20, 2018, in the amount of P0.0618 per share, broken down as follows:

  • Regular Cash Dividend of P0.0469 per share
  • Special Cash Dividend of P0.0149 per share

Payment date was set on June 14, 2018.

In 2019, FLI declared cash dividends to all stockholders of record as of May 22, 2019, in the amount of P0.0619 per share, broken down as follows:

  • Regular Cash Dividend of P0.0486 per share
  • Special Cash Dividend of P0.0132 per share

Payment date was set on June 17, 2019.

FLI’s website, www.filinvestland.com, makes available to the public, current information on the Company, including details of its operations.

The Investor Relations section of the website provides information on financial statements, press releases, declaration of dividends, ownership structure and any changes in the ownership of major shareholders and officers, notice of analysts’ briefings, other reportorial requirements by the Philippine Stock Exchange.The contact details of the Investor Relations Office are available in the website.

To meet the requirements of FLI’s investors, the Company conducted four (4) Analysts’ Briefings in 2019:

  1. March 22, 2019 at the Filinvest Building in No. 79 EDSA, Mandaluyong City, Metro Manila for Full Year 2018 results
  2. On May 20, 2019 at the Filinvest Building in No. 79 EDSA, Mandaluyong City, Metro Manila for First Quarter 2019 results;
  3. On August 16, 2019 at the Filinvest Building in No. 79 EDSA, Mandaluyong City, Metro Manila for First Half 2019 results; and
  4. On November 15, 2019 at the Filinvest Building in No. 79 EDSA, Mandaluyong City, Metro Manila for First Nine Months of 2019 results

On May 21, 2020, FLI conducted an analysts’ briefing through an online video conference facility for the Full Year 2019 results.

The company welcomed analysts and investors in its offices for one-on-one meetings and also hosted project site tours for them.

In 2019, FLI participated in six (6) conferences organized by different stock brokerages in Thailand, Singapore and the Philippines.

On
1223

Board of Directors

MERCEDES T. GOTIANUN

CHAIRPERSON EMERITA

JONATHAN T. GOTIANUN

CHAIRMAN

ANDREW T. GOTIANUN

VICE CHAIRMAN

JOSEPHINE GOTIANUN YAP

DIRECTOR - PRESIDENT & CEO

MICHAEL EDWARD T. GOTIANUN

DIRECTOR

FRANCIS C. GOTIANUN

DIRECTOR

EFREN C. GUTIERREZ

DIRECTOR

ERNESTO S. DE CASTRO

INDEPENDENT DIRECTOR

GEMILO SAN PEDRO

INDEPENDENT DIRECTOR

VAL ANTONIO B. SUAREZ

INDEPENDENT DIRECTOR

Senior Management

ARNULFO N. DELOS REYES

PRESIDENT - DREAMBUILDERS PRO, INC.

MARICEL B. LIRIO

EVP - CYBERZONE PROPERTIES, INC.

TRISTANIEL D. LAS MARIAS

EVP - CHIEF STRATEGY OFFICER

ANA VENUS A. MEJIA

FSVP - CHIEF FINANCE OFFICER

VINCE LAWRENCE L. ABEJO

FSVP - CHIEF SALES AND MARKETING OFFICER

FRANCIS V. CEBALLOS

SVP - BUSINESS GROUP HEAD

WINNIFRED H. LIM

SVP - CHIEF TECHNICAL PLANNING OFFICER

ROMEO T. BAUTISTA

SVP - BIDS & AWARDS

JOSELITO F. SANTOS

SVP - BUSINESS GROUP HEAD

LUIS L. FERNANDEZ

FVP - HOA & WATER SYSTEMS

CESARINE JANETTE B. CORDERO

FVP - FILINVEST CYBERPARKS, INC.

REYNALDO JUANITO S. NIEVA

FVP - OPERATIONS

ALEXIS AVALONE C. OJEDA

FVP - SALES CHANNEL DEVELOPMENT

MICHAEL EDWARD T. GOTIANUN

VP - SUPPLY CHAIN MANAGEMENT

RIZALANGELA L. REYES

VP- HRAD & CUSTOMER CARE

JIMMY S. ROQUE

VP - ARCHITECTURAL DESIGN & PLANNING

BERNADETTE M. RAMOS

VP - GROUP REAL ESTATE MARKETING

ROMEO L. MAGTANONG

VP - LITIGATION

HARRIET C. DUCEPEC

VP - CHIEF OF STAFF

ALAN J. BARQUILLA

VP - AREA GROUP HEAD, VISMIN

LEONARD A. GONZALES

VP - SECURITY & SAFETY

SEAN PHILIP R. IMPERIAL

VP - BUSINESS PLANNING

AVEROSE VALDERRAMA

VP - BUSINESS GROUP HEAD
On
1224

FILINVEST LAND, of INC. AND SUBSIDIARIES

On
1225
On
1230

Filinvest Land – ESG/CSR Report 2019

Welcome to our first sustainability report where we share our progress and the latest initiatives in 2019.

The vision of Filinvest Land is to be a trusted placemaker and to inspire those who live and walk and work among our environs. At the core of our business, we not only aim to create high value living and working spaces for our customers – we aim to build the Filipino Dream. 

While our business focus is on contributing to nation-building by serving the underserved, we are also adamant about taking responsibility for our environmental impact and for uplifting the people who work with and around us, both integral parts of our community. Indeed, it is our mission to not only create and add value for our investors but also to respect and protect the environment and keep housing affordable.

Since we consider the environmental impact of our company to be of utmost importance to preserving our nation’s delicate ecosystem and limited natural resources, we have been making every effort to operate in an environmentally considerate manner. As part of FLI’s mission to provide superior properties to our customers through cost efficiencies without sacrificing safety, quality, and the environment, we have sought to act as sustainably as possible by minimizing waste, reducing emissions, and actively innovating our building and construction practices.

By considering our impact and thinking beyond our economic growth, we are committed to finding new ways that our business can activate an industry-wide commitment to sustainability, such as through joint ventures that aim to enhance energy efficiency and reduce carbon emissions.

Working in collaboration with our stakeholders, business partners, and clients, we strive to build a better tomorrow for our community. However, we understand that sustainability is a continuous process and there is a long way ahead of us.

Looking forward, we intend to expand our reporting on sustainability initiatives and to continuously improve our approach to collecting data on our environmental and social performance. In addition, acknowledging the business value of the UN Sustainable Development Goals, we look forward to aligning our sustainability plans with them in a strategic and meaningful way in coming years.

I appreciate your taking the time to read our report and look forward to hearing your feedback on our progress towards meeting our commitments on sustainability.

JONATHAN T. GOTIANUN
Chairman

Filinvest Land (“FLI” or the “Company”) welcomes this opportunity to publish its first environmental social and governance (ESG) report. This chapter details FLI's non-financial performance across the economic, environmental, and social aspects of our business for the reporting period from 1 January through 31 December 2019.

This chapter aims to satisfy the "comply or explain" provisions in accordance with the Sustainability Reporting Guidelines for Publicly Listed Companies (the “SEC ESG Guidelines”) issued by the Philippine Security and Exchange Commission (the “SEC”) and outlined in SEC Memorandum Circular No. 4, series of 2019. It was prepared with reference to the Global Reporting Initiative (GRI) Standards Reporting Guidelines.

Scope

This chapter describes the performance and initiatives of Filinvest Land’s operations in the Philippines. For a complete list of our operations, visit the List of Building Sites in the Appendix of this report.

Materiality

The SEC’s sustainability reporting requirement among publicly listed companies is an opportunity for FLI to take stock of everything that we have done to deliver on our commitment and find ways to build our big ideas better. In 2019, we undertook an initial assessment of our current organizational processes, procedures, and policies in efforts to better understand our current practices and how they relate to ESG issues. Per the SEC ESG Guidelines, the content of this Chapter is informed by the principle of materiality and focuses on the economic, environmental, and social impacts of our operations and activities in the Philippines, as well as our approaches to the material topics listed below. We currently prioritize our efforts on social and economic topics.

 

Impact Location (within or outside the Company)
Material Topics Within Outside External Stakeholders Affected
Governance
Economic Performance x x Investors, Communities, Government
Procurement Practices x x Suppliers and Vendors
Anti-Corruption x x Employees, Government
Environmental
Resource Management x   --
Environmental Impact Management x   --

 

Impact Location (within or outside the Company)
Material Topics Within Outside External Stakeholders Affected
Environmental Compliance x x Government
Social
Employee Management x   Employees, Government
Supply Chain Management x x Suppliers and Vendors
Relationship with Community x x Communities
Customer Management   x Customers

 

Moving forward, we intend to conduct a materiality assessment that will enable us to focus our energies and resources on a sustainability agenda that is strategic to our business, promotes growth, manages impacts and minimizes risks, and contributes to sustainable development.

FLI’s approach to sustainability is built on a solid foundation of integrity, strong governance, and accountability to our stakeholders. We are committed to consistently instilling sustainable and environmentally considerate practices within our company culture, across our supply chain, and for our customers. As we progress on our sustainability journey, we look forward to refining our data collection processes to accurately measure and therefore manage our environmental and social impacts better, particularly in the areas of customer management, resource use efficiency, employee development, and community engagement.

Sustainability Governance

We strive to embed sustainability into our corporate culture and to ensure that everyone on the FLI team conducts business responsibly and ethically. Our Code of Conduct is observed across the company.

We maintain strong governance practices to ensure proper monitoring of risk management, internal controls, and other compliance matters (detailed in the Annual Report). The Board is responsible for setting the Company’s overall approach to ESG matters, evaluating ESG-related risks, and implementing sustainability initiatives. It is supported by our senior management team and the Audit and Risk Management Oversight Committee (which is composed of an Independent Director, a Director and the Chairman) who implement risk management and internal control systems.

We are working to strengthen our sustainability governance structures and mechanisms and to integrate economic, social, and environmental structures into our business decision-making processes at all levels. In coming years, motivated by the SEC’s sustainability reporting requirements, we seek to improve our understanding of the impact our operations have on ESG related topics. We will also assess ESG related risks and opportunities as related to our sustainability management, governance, and climate-related issues.

Anti-corruption

Bribery and corruption are significant ESG risks that can undermine trust in a company and have direct impacts on its performance. We take corruption very seriously and are committed to ensuring compliance with applicable laws and regulations (such as the Anti-Graft and Corrupt Practices Act (Republic Act No. 3019)) on anti-corruption, anti-bribery, and money laundering, among others. We also adhere to standards of conduct to prevent or regulate the offer or receipt of gifts or other advantages that may induce dishonest, improper or illegal conduct, or which may create an actual or potential conflict of interest.

Our anti-corruption efforts are supported by several strictly enforced policies, including our Conflict of Interest Policy, Insider Trading Policy, and Related Party Transactions Policy. Our Code of Business Conduct and Ethics (the “Code of Conduct”) provides a framework for all of the FLI’s operations and sets out standards of behavior for all employees, including day-to-day business conduct and customer service interactions. When there are changes to the Code, the Human Resources department will issue new guidelines or update our policies, then circulate the files to each department. Implementation of the Code of Conduct’s guidance on anti-bribery and anti-corruption is supported by our Whistle-Blowing Policy.

In 2019, no incidents of fraud or misconduct that have a significant effect on the Company’s financial statements and overall operations were reported by employees, shareholders, or other stakeholders and no Directors or employees were removed or disciplined for corruption. In coming years, we will enhance our employee development and training to include specific anti-corruption topics.

For more information on these policies and our Corporate Governance practices, please refer to the Corporate Governance Section of the Annual Report.

We have a customer-centric corporate culture that is focused on delivering high-quality services to our customers with honesty and integrity. We aim to cultivate an environment where they will be healthy, engaged, and productive. We invest in our employees and provide them with rewarding career paths.

In coming years, motivated by the SEC’s sustainability reporting requirements, we seek to improve our understanding of the impact our operations have on our employees. We will also assess ESG related risks and opportunities as related to our team management and will survey opportunities to improve learning and development, employee engagement, workplace culture and work-life balance, operational transparency, and hiring practices where feasible.

Employee Profile

Our 1,1701 high caliber team members, 1,000 of which are employed on a regular, full-time basis, are the key to our success. Characteristics we cultivate in our people include a willingness to take initiative, open-mindedness, ability to work as a team, and passion for continuous learning and improvement. With female employees comprising 60.77% of our workforce, we have a demonstrably high proportion of women among our regular and probationary staff which reveals FLI commitment to gender diversity and fair hiring practices.

Employee profile by category and gender

Employee profile by category and gender

Hiring and Benefits

We have set companywide requirements and expectations through our Employee Handbook and various Human Resources policies to ensure that all aspects of employment, including fair hiring practices, compensation and dismissal, working hours, rest periods, anti-discrimination and employee welfare, meet or exceed local legal requirements.

When it comes to hiring practices, it is our preference to promote from within before expanding our search outside the company. This lends itself to fostering a workplace culture in which strong bonds are formed between individuals with a keen awareness of our business and customer needs. As such, most new vacancies are filled initially by promotions and transfers from within the organization.

All full-time employees are eligible for our benefits package, which includes medical care, group life and accident insurance, and retirement benefits. In addition, we provide the paid leave for vacation, illness, maternity and paternity, change of civil status, birthday, bereavement and calamity leave, a car financing program, and a housing assistance plan.

We also offer Health Maintenance Organization (HMO) coverage for all regular employees, a loan fund for regular employees including an emergency loan to aid in the hospitalization of an employee or their family members or for immediate repair of an employee’s home after a natural disaster or fire, as well as an educational loan to cover tuition fees for employees or their dependents.

Training and Development

We believe that cultivating a highly skilled workforce and supporting employees’ long-term career goals is an integral part of sustaining our social and economic success. Arranged by our Learning and Development Team, we offer a wide array of professional development programs that aim to nurture talent and help employees build skills and capabilities so that they can fulfill their potential. In house training is conducted regularly and recommended employees are enlisted based on their potential to attend external seminars. In 2019, training topics included:

 

PROGRAM DESCRIPTION
New Employee Orientation A 2-day orientation for new employees designed to introduce to them the company, its vision, mission and core values, and equip them with the fundamental knowledge needed to perform their tasks.
Customer Service Mindset A whole day workshop highlighting the importance of delivering and embodying good customer service not only to buyers and external clients but also to our colleagues and fellow Dream Builders.
Business Grammar and Writing A whole day workshop session designed to equip our employees with the right knowledge in business communications and grammar to ensure professionalism and exceptional quality of service as Dream Builders.
Problem Solving and Decision Making A 2-day workshop session for our supervisors and managers designed to explore multiple approaches to solve problems in varying ranges and help them come up with sound decisions.
BFP Orientation and Evacuation Drill In partnership with the Bureau of Fire Protection, a 4-hour session discussing the varying levels of risks and fire hazards we might encounter in our daily lives and how to prevent them.
Construction Project Quality Assurance and Quality Control A 2-day seminar for our Technical teams (Engineers and Architects) about effective quality assurance measures of Filinvest Projects. This seminar is also PRC accredited for Continuous Professional Development (CPD) points.
Filinvest eLearning Launch A 4-hour session on the launch of Filinvest Mentor - Filinvest's eLearning platform.
Strategic Planning and Strategic Thinking Workshop A 4-hour session preparing our leaders and groups for strategic planning sessions with their respective teams.
Power BI Bootcamp A training program designed to improve data representation and data modeling skills of our employees through the use of Power BI.
PCO Training Training for our Project Engineers and Project Technical Heads as Pollution Control Officers.
Basic Occupational Safety and Health Training Mandatory training program for Occupational Health and Safety.
Mandatory Continuing Legal Education Various seminars and programs for lawyers to further hone their legal knowledge and skills.
Continuing Professional Development (CPD) Accreditations Various seminars and programs for our technical teams (Engineers and Architects) for Continuing Professional Development and Licensure Renewal.
HATS Level 1 Certification Training on HATS administration for efficient promotion screening.
Paralegal Training Program A 100-hour training program on Paralegal certification to aide our lawyers in legal matters and procedures.

Beyond training, all regular employees take part in an annual performance evaluation. Also, to develop the highest level of skill among employees and enhance personal and professional growth, the company periodically assesses the training needs of each employee. In addition, we recognize employees with 10, 15, 20, 25, 30 years of service to celebrate the appreciation of their hard work and loyalty.

Employees Trained by gender and employment category

Employees Trained by gender and employment category

 

Average training hours provided to employees (by male/female)

Average training hours provided to employees

Health, Safety and Wellbeing

We value the health and wellbeing of our team members and are committed to providing all employees with a safe, secure, and healthy working environment. Our goal is zero accidents, injuries and illnesses. To achieve this, we have a thorough set of policies and programs to uphold the occupational health and safety (OHS) of our employees. This includes a Safety Policy, Accident Prevention Program, Code of Safe Practices, injury and illness prevention programs, and more.

Our OHS Program was established to ensure a clean, safe, and healthy work environment for all its employees. All employees including newly hired staff, after orientation on the safety procedures and practices, must be able to assimilate our safety program and follow what was prescribed by the program induction. The company’s OHS program is designed to prevent or minimize the possibilities of injuries at the workplace.

Per our Security, Environment, Health and Safety (SEHS) Policy, we strive to ensure that all work and work-related activities are performed responsibly and safely and in compliance with applicable laws and regulations. The SEHS Policy applies to all businesses, subsidiaries, and all employees and is available to the public on our website under Company Policies. We regularly check compliance through internal and external audits and appropriate channels are set up to encourage reporting of behaviors not compatible with the policy. We have also set objectives and targets which support a proactive SEHS culture throughout FLI for continual improvement.

All our policies, accident prevention, and safety training programs are designed to comply with all applicable laws and regulations and are implemented using appropriate company standards where regulatory requirements do not exist. All employees are expected to comply with the requirements these programs, particularly our Safety Plan, and failure to observe safe work practices and requirements are cause for disciplinary action. Employees are requested to sign an Employee Acknowledgement of the Health and Safety Plan, indicating that they have read and understood the plan, will comply with applicable safety rules, policies and procedures and completely understood the safety plan.

We believe that heightened awareness of the physical or administrative consequences of ignoring safe practices fosters a healthy respect for company policy and procedures, as well as the hazards themselves. We require OHS training for all employees to ensure instruction in safe work practices and rules, and to provide the skills and knowledge necessary to identify and control workplace hazards. Throughout 2019, we ran 116 trainings and drills covering a range of topics including sexual harassment, fire and earthquake evacuation drills, and personal injury prevention.

EnRiCh-ing Employee Engagement

Every year we host an array of programs aimed at training and keeping employees engaged starting from the leaders. Programs such as coaching, behavioral interviewing, problem-solving, and decision making were conducted to further develop the leadership skills of supervisors and managers. We believe these activities not only contribute to employee overall wellbeing, but they also create stronger connections between employees and increase employee satisfaction and productivity.

In 2019, we launched the EnRiCh Program to encourage employee wellness, social bonds, and teamwork. The activities anchored around EnRiCh aim to ensure that FLI promotes work-life balance, team companionship, and a fun working environment through various employee engagement activities. These activities have also provided employees with avenues to build social connections – within and outside the Company.

To encourage healthy lifestyles among employees, FLI conducted its Annual Physical Examination (APE) in January 2019, which was attended by 570 employees. Other activities, such as vaccinations and bloodletting, were also offered throughout the year. Aside from physical wellness, FLI also enabled First Friday Masses to be held every month and confessions during Holy Week for our more spiritual team members.

To encourage the development of solid working relationships among colleagues, FLI held a variety of events to celebrate Valentine’s, Mother’s Day, and Father’s Day. For Halloween, the children of the employees were invited to go Trick or Treating around the office. We also host retirement parties for soon to be retirees to show our appreciation for their service to the Company,

During the Christmas holidays, we held an MTV-themed Party and contest where employees dressed up as their favorite pop music icons. For this year’s contest, teams created music video parodies, which brought out everyone’s creativity and resourcefulness.

We continually host a range of employee activities such as sports and family days for employees and their families. One of the major employee engagement activities for the year was the FLI Sports Fest. Various games of basketball, volleyball, badminton, table tennis, chess, and dama were played. Participating employees showed a real passion for sports and practiced their camaraderie and teamwork as well. We also have internal communications tools, namely bulletin boards and newsletters, to update employees on new policies and other important information.

We recognize that conducting our business with integrity and high standards is central to our long-term success and underpin our ability to serve and retain our customers. To ensure service quality, we have implemented a suite of policies and procedures, which cover service quality improvement processes, customer satisfaction surveys and complaints, and more.

Motivated by the SEC’s sustainability reporting requirements, in coming years, we seek to improve our understanding of the impact our operations have on our customers. We will also assess ESG related risks and opportunities as related to the relationships and impacts we have with our customers.

Serving Our Customers

We pride ourselves on excellent customer service and place great importance on listening to our customers. We continually seek and respond to customer feedback through a variety of channels, including via our website, social media, direct interaction, a customer service hotline, e-mail, and SMS, among others

Led by our Service Quality Improvement Head, our customer satisfaction surveys are shared with customers to measure how our products and services meet or surpass their expectations. If a customer is not satisfied, our Handling of High-Level Complaints Manual guides our Customer Care - Customer Fulfilment team on how to best find a resolution.

The manual covers proper channels through which we address high-level complaints by outlining ways of identifying the severity level of complaints, acknowledgments to the complainant, and sharing of complaints reports to all concerned departments. Any complaint received is assigned a Customer Fulfilment (CF) officer for immediate response/feedback and resolution. After a CF head determines the content and severity of a complaint, a Complaints Report Form is prepared by CF Staff within 24-hours after receipt from a CF Head. Then, an investigation shall be conducted, and resolution sought. A complaint is only ever considered “CLOSED” by a CF Manager/Head when the complainant is satisfied with the resolution provided.

We consider our employees to be our ambassadors. To improve customer service and enhance interpersonal skills, frontline personnel are required to undergo regular training on topics such as improving listening and verbal and written communication skills, and problem-solving and conflict resolution. All employees are also expected to abide by our Basic Customer Service Standards manual, which aims to instill best practices to enable us to deliver excellent service to our customers. These standards are reviewed, approved, and supported by the President and CEO of FLI and all members of our Senior Management Committee.

In 2019, we received 165 substantiated complaints regarding our products and marketing and labeling, which were resolved promptly with rectification procedures.

In 2019, we received a satisfaction rating of 65% based on a customer survey conducted among 500 customers. 65% of the 500 customers rated Filinvest Land with either Very Satisfied or Satisfied.

Protecting Privacy

Our Privacy Policy, which is available on our company website outlines our commitment to respecting and protecting the privacy of customer and keeping personal information (“Personal Information”) in accordance with Republic Act No. 10173 or the Data Privacy Act of 2012, its Implementing Rules and Regulations and other issuances of the National Privacy Commission (NPC).

The Group responds to reasonable requests to review personal information collected by us and to correct any inaccuracies, amend or delete any entry per customer privacy rights under the Data Privacy Act of 2012. During the reporting period, there were no data breaches, including leaks, thefts, or losses of data.

As mentioned in our Privacy Policy, personal information possessed by the Group shall be kept confidential. However, it may be necessary for the Group to disclose and transfer personal information to third party companies, entities, or service providers engaged by the Group to perform certain services on its behalf, including:

  • Government agencies such as SSS, PhilHealth, HDMF;
  • Banking and financial institutions;
  • Insurance providers;
  • Storage facility providers;
  • External advisors and other professional advisors, such as auditors and legal firms;
  • Contractors or subcontractors; and
  • Such other service providers that may be appointed by the Filinvest Group including background investigators.

In addition, being mindful of the risks posed by the rapidly evolving digital environment, we work to educate and empower our customers to be more risk-aware and to provide them with requisite skills and know-how to avoid fraud, scams, and cybercrimes when using our products and services.

As one the largest property development firms in the Philippines - with a portfolio of more than 25 million square meters under management – we recognize our responsibility in minimizing the negative environmental impacts in the built environment through both the services we provide to our clients and our own operations. As our acquisitions, divestments, and development activity within a given year can significantly impact our environmental performance, we are committed to implementing environmentally sustainable best practices for our operations and to assist our tenants in their efforts to address their environmental concerns.

Applicable to all FLI projects, our Environmental Compliance Policy aims to provide effective environmental programs for the prevention of pollution, preservation of natural resources, and solid waste management, in compliance with relevant local and national environmental laws and regulations. Approved by our President and CEO, the policy mandates compliance to local environmental laws and regulations (such as DENR and the National Building Code of the Philippines), environmental impact planning, and measures to mitigate the potentially negative impact that a new building or community development project can create for both the pre-construction and construction/operations phases.

The Policy also mandates that with any new project, a Social Development Program shall be established to offer training and hiring of local residents, a solid waste management program, support to local institutions and schools, and to create education and communications campaigns.

We recognize that growing stakeholder demands for transparency have led to more stringent environmental reporting requirements, including the SEC ESG Guidelines. We are working to further develop and strengthen our data collection procedures and adopt a systematic approach to data collection across the Company over the next three years to enable us to better identify, disclose and manage our environmental impacts. We are also exploring strategies to address air quality, climate change, resource efficiency, and waste. We will aim to assess ESG related risks and opportunities as related to our resource and environmental management.

To our knowledge, we comply with all applicable local environmental laws and regulations. In 2019, no monetary fines, non-monetary sanctions, or disputes arose for non-compliance with environmental laws and/or regulations.

Sustainable Building Practices

Sustainability Report 2019-Studio 7

In 2017 we set out to be the first to create a master-planned development in the country with a LEED version four of Neighborhood Development Plan certification. With only two other developments in the world – in Japan and Italy – bearing this coveted recognition requires meeting several criteria across several areas that address sustainability issues – among them location and transportation, sustainable sites, water efficiency, and energy and atmosphere considerations.

To meet LEED certification standards,2 our design project teams have identified several cost-effective and energy-efficient fixtures and incorporated them into focal design features in three of our commercial buildings. While some features (such as green walls and bicycle storage) are quite visible, others are less apparent to the average occupant (such as water-efficient landscaping and optimized energy performance-usage of low electric consuming lights and equipment). Altogether, each feature helps to deliver outstanding sustainable performance.

Highlights of these green building features include:

  • Site Connectivity – building in high high-density areas, within a range of basic services for the immediate needs of the community.
  • Green Transportation – buildings are located near public and other alternative modes of transportation for more efficient travel. They also feature bicycle storage and changing rooms to encourage occupants to limit their vehicle use and lessen the environmental impact and traffic congestion of private cars.
  • Regional Building Materials – Construction materials are purchased within the vicinity of the project.
  • Quality Indoor Environment – The thermal comfort of the end-users is monitored and low emitting VOC materials are used to prevent harm to occupants and the environment.  

Since 2016, Filinvest has been awarded several LEED building certifications for a number of our developments:

Green Building Certification

DEVELOPMENT CERTIFICATION AWARDED
Axis Tower One LEEDv3 Gold for Core and Shell – 2017
Axis Tower Two LEEDv3 Gold for Core and Shell - 2018
Cyberzone Bay City Phase 1 LEEDv3 Silver for Core and Shell - 2017
Cyberzone Bay City Phase 2 LEEDv3 Silver for Core and Shell - 2019

Green Building Pre-Certifications

DEVELOPMENT CERTIFICATION AWARDED
Axis Tower Four LEEDv3 for Core and Shell - In progress
Axis Tower Three LEEDv3 for Core and Shell - In progress
Activa - Mixed Use LEEDv3 Gold for Core and Shell – In progress
Studio 7 LEEDv3 for Core and Shell - In progress
IT Park - Building 1 LEEDv3 Gold for Core and Shell – In progress
IT Park - Building 2 LEEDv3 for Core and Shell - In progress
One Filinvest LEEDv3 for Core and Shell - In progress
2LEED® stands for Leadership in Energy & Environmental Design, which is an internationally recognized green building standard established by the United States Green Building Council. Official website: www.usgbc.org/leed

Resource Management

Our approach to measuring and monitoring how we manage resources starts with projects adhering to our Environmental Compliance Policy and continues throughout the lifecycle of the construction and operations phases.

Ecosystems and Biodiversity

Our Environmental Compliance Policy outlines proper preservation methods, such as ensuring that all existing endemic wildlife species in a development area shall be protected by FLI, including their habitats. It also includes a clause that an Environmental Guarantee Fund shall be set up for every FLI project for rehabilitation and restoration activities of affected areas, as well as stipulating compensation of damages and assistance to affected parties should irreparable damages occur.

We have also set as a rule that for every tree cut for a development project, it shall be replaced for continuous greenery maintenance.

Energy and Air Emissions

We recognize our capacity to enhance the energy efficiency of our projects while reducing our carbon emissions. Beyond our green building efforts, we continually seek ways to optimize building performance and reduce energy usage and emissions.

Within our operations, as mandated in our Environmental Compliance Policy, during the construction phase all emissions are to confirm with the emissions standards of DAO 14 (Revised Air Quality Standards of 1992). Any dust emissions are controlled with periodic watering of roads during the dry season and dump trucks used in the delivery and transport of filling materials are covered.

Spotlight: PDDC’s Innovative District Cooling Systems

Keeping the Northgate Cyberzone cool

In 2017, FLI’s Philippine DCS Development Corporation (PDDC) partnered with Engie Services Philippines* on a joint venture to develop the Philippines’ largest district cooling system in Northgate Cyberzone in Filinvest City. The 10,000-ton centralized DCS plant has a cooling capacity of 42.2 Megawatts that caters to 15 buildings through a 3.4km underground distribution network of steel pipes with a span of 20 years. The system provides numerous benefits including:

  • Lower building structural requirements 
  • Noise reduction
  • Reduction of CO2 emissions and polluting waste (i.e. refrigerant leakage) 
  • Reduction of electricity consumption of at least 30% - 40% of plant consumption
  • Reduction of water consumption 
  • Smaller electrical system and backup generators 
  • Reduction of operations and maintenance costs in terms of:
    • No chemical usage for cooling towers 
    • Spare parts and consumables 
    • Periodic and unscheduled major maintenance 
    • Engineering Services
    • Manpower cost related to Chilled Water operations 
    • Management oversight

The Northgate Cyberzone District Cooling System has put the Philippines on the global map alongside the world’s key players in District Cooling System, such as ENGIE’s Climespace in Paris, France, and the Megajana in Cyberjaya, Malaysia.

Boosting PBCom Tower’s Energy Efficiency

In 2019 PDDC also partnered with Engie Services Philippines* on a joint venture to provide a chilled water plant within the 52-story PBCom Tower through the Build-Own-Operate-Transfer (BOOT) model, where PDDC will design, finance, rehabilitate, construct, install, operate and maintain a new and efficient chilled water plant that will provide energy savings to the tower. State-of-the-art technology will cut energy consumption in the Philippines’ third tallest building by about 4,103 MWh per year (equivalent to 2,429 eq. tons of CO2 emissions). The project also aims to cut carbon dioxide emissions, a key component of FAC’s vision of sustainable development.

*PDDC is an incorporated joint venture between FLI and Engie Services (Philippines), the local arm of the France-based Engie, a global leader in Energy Efficiency and Environmental Services. The joint venture is part of Filinvest’s efforts to develop environmentally-sustainable communities and to show support for the Philippine Government’s drive for green energy. It is also the collaborative response of Filinvest and Engie to the co-create mitigating measures that address climate change-related concerns.

(December 26, 2018 - December 25 2019) from 1.3 Eff

(December 26, 2018 - December 25 2019) from 0.78

 

Water

Water is a key component of the construction and operations of any project. As such, we are committed to ensuring that we manage water and wastewater as responsibly as we can. In 2019, we consumed 5,132,064 cubic meters of water and discharged 4,517,545 cubic meters. We recycled 1.16% of our total wastewater.

Our Environmental Compliance Policy mandates proper drainage systems be installed during pre-construction, for the proper collection and disposal of storm run-off. We also use a combination of open and closed drainage systems when building in smaller land areas and we install a sewerage system and/or a sewerage treatment plant to treat domestic discharges, in compliance with discharge standards set by the DENR.

During the construction and operations phase, we ensure that housing units and other amenities are not built along active natural waterways and no construction or development is undertaken immediately next to rivers or streams in efforts to avoid erosion and unintended siltation of water bodies. Any temporary ditches or canals are lined with silt raps to minimize sedimentation/siltation of nearby tributary rivers and are removed after construction is completed. Also, all deep well water supply is subject to primary water treatment and any effluent discharges must meet the Effluents Standards under DAO 35 (Revised Effluent Regulations of 1990) and DAO 34 (Revised Water Quality Criteria).

Thinking beyond our own development projects, we consistently seek to create environmentally-friendly infrastructure and support local community investment initiatives when we can. For example, Filinvest City was the first township in the Philippines to register for LEED v4 for Neighborhood Development Plan and is currently in the initial phases of completing its certification requirements. The Group has also constructed a sewage plant and water recycling facility within Filinvest City to allow the use of greywater for irrigation. Also, our Northgate Cyberzone development houses the country’s largest district cooling system that can reduce energy consumption for chilled water supply by up to 40%.

Spotlight: Utilizing Desalination Technology and Providing Water Services

The Group, through its wholly-owned subsidiary, Countrywide Water Services, Inc. (CWSI), has been utilizing desalination technology for several years to provide much-needed water at competitive rates to hotels and residential projects that are owned by the Group as well as by external entities. The Group is also exploring potential partnerships with major industry players to tap into the latest developments in desalination technology to further improve the efficiency of this cutting-edge technology. CWSI provides water and wastewater services to its affiliates in the property business such as Filinvest City in Alabang and the Filinvest Mimosa+ Leisure City in Clark, Pampanga and Filinvest Land residential projects. CWSI’s water services include the supply and distribution of potable water to domestic, commercial, and industrial consumers while its wastewater services include the treatment of domestic and commercial sewage.

Materials

In 2019, our projects required the use of 29,773 tonnes of rebar, and 137,860 tonnes of cement.

Waste

Most of the waste directly generated by our business comes from the construction of our development projects. Our Environmental Compliance Policy outlines that all solid waste be properly collected and disposed of in designated disposal sites in accordance with the project site’s Solid Waste Management Plan.

Also, the proper handling, collection, and disposal of toxic and/or hazardous substances are fulfilled in accordance with the provisions of RA 6969 (Toxic Substances and Hazardous and Nuclear Waste Control Act of 1990) and that proper permits are secured from DENR accordingly.

In 2019, 158,481 tonnes of office and construction waste was sent to landfill.

 

FLI supports local enterprises and local supply chains by investing in the local market, through our suppliers, and our championship of small and medium enterprises (SMEs). In 2019, of our 505 suppliers, 98.81% were Philippines based companies, with the rest coming for other parts of Asia.

For our property development operations, we depend on inputs from multiple suppliers and service providers, and we take it upon ourselves at FLI to facilitate ESG considerations throughout this value chain. When vetting new suppliers, we consider a range of ESG related topics such the supplier’s environmental performance, efforts to avoid any forced or child labor in their operations, their approach to labor and human rights issues, and their mechanisms to ensure that bribery and corruption do not occur in their company or in relation to ours.

We mainly achieve this by adhering to our Supplier Accreditation Program, which was established in 2015 and is overseen by our Purchasing Department. The program outlines ways we can maintain quality management by checking for various ISO, DENR, and OSHA certifications or programs in place (such as ISO 9000/9002 and 14000 or equivalent environment programs) and by requesting data on the sources of raw materials (percentage of local/international). Regular reviews or assessments are also conducted to ensure our supply chain partners comply with local laws and our requirements.

We believe that by measuring our progress and adhering to the ideal of transparency in our supply chain decisions, our sourcing and procurement efforts are shaping a value chain that positively influences the market and encourages the industry towards sustainability.

Motivated by the SEC’s sustainability reporting requirements, in coming years, we seek to improve our understanding of the impact our operations have on our supply chain and suppliers. We will also assess ESG related risks and opportunities as related to the relationships and impacts we have on our suppliers and overall value chain.

We have a longstanding commitment to giving back to the communities where we build as well as those nearby. We aspire to make a positive impact on our communities and are committed to contributing to their long-term prosperity. In 2019, our support focused on the areas of health, community outreach, and environmental preservation. In 2019, we contributed PHP 167,350 to local charities and non-governmental organizations (NGOs). We also work with our partners and stakeholders to support local causes and help provide relief in incidents of a natural disaster.

We also encourage our employees to participate in volunteer and community service programs that interest them. In 2019, our employees participated in several events across the Philippines and dedicated a combined total of 9,504 volunteer hours.

Highlights of our engagement in 2019:

  • Tree Planting in NCR and Cebu – As part of our "Keep it Green" initiative, which includes annual tree-planting activities, 81 employee volunteers contributed to reforestation activities being carried out at Georeserve sites in Rizal and Cebu. A total of 200 tree seedlings were planted and nurtured by the FLI volunteers.
  • Blood Donation Drive – run in partnership with the Red Cross, 100 FLI employees filled 39 bags in our annual blood donation drive.
  • Team Coastal Cleanup – 52 FLI employee volunteers joined a coastal cleanup at Freedom Island (located in the Las Piñas-Parañaque Critical Habitat and Ecotourism) and collected 50 bags of plastic, cigarette butts, used PET bottles, fishnets, etc. from the beaches.
  • Support for the elderly of Visayas – 15 FLI Visayas' employees ran a feeding/gift-giving program in December for Gasa sa Gugma, a home for abandoned elderly. Their efforts helped 63 elderly in need with one month’s supply of basic needs such as rice, milk canned goods, toiletries, etc.
  • Outreach for the Elderly and Street Children – 5 FLI employees hosted a feeding/gift-giving program in October to benefit Por Cristo Foundation Inc., a charity home for the abandoned elderly. The foundation provides accommodation, food assistance, medical care, and hospitalization, etc. to needy elderly and street children. Over 60 elderly and street children in need received a one months’ supply of basic needs such as rice, milk canned goods, toiletries, etc.
  • Outreach and support for Abandoned and Neglected Children – 25 FLI employees ran a feeding/gift-giving program to collect donations for the children and staff of Tahanan ng Pagmamahal in Pasig, City in November. Tahanan ng Pagmamahal is a home for abandoned and neglected children. Altogether, we collected and donated more than a one months’ supply of basic needs such as rice, milk canned goods, toiletries, etc., which benefitted 57 children in need. Employees also contributed via a fund-raising program to purchase simple Christmas gifts/tokens for the institution and supported its facility improvement construction project(s) with a P36,000 cash donation.
  • Helping Students Prepare for School – In support of the Department of Education's nationwide initiative, "Brigada Eskwela", FLI-Mindanao mobilized its employees to show their support by ensuring the students of Nueva Fuerza Elementary School are ready for their first day of school. 10 FLI volunteers spearheaded the effort to collect and donate school supplies and backpacks for 180 students.

Motivated by the SEC’s sustainability reporting requirements, in coming years, we seek to improve our understanding of the impact our operations have on local communities, particularly indigenous peoples and vulnerable groups. We will map out both mitigating and enhancement measures based on our findings and will also assess ESG related risks and opportunities as related to the relationships and impacts we have on the communities in which we operate.

 

Current Residential Development Projects

The following are the most recently launched projects and projects with new phases and buildings:

PROJECT LOCATION
Levels Alabang
Studio City Alabang
Futura Homes Palm Estat Bacolod
Sandia Batangas
Tierra Vista Bulacan
One Oasis Cagayan de Oro Cagayan de Oro
Futura East Cainta
Futura Mira Calamba
Pineview Cavite
Savannah Place Cavite
Meridian Place Cavite
New Leaf Cavite
Futura Homes Mactan Cebu
One Oasis Cebu Cebu
San Remo Cebu
Futura Homes Davao Davao
Centro Spatial Davao
8 Spatial Davao
Maldives Oasis Davao
Veranda  Davao
Marina Spatial Dumaguete
Futura Homes Iloilo Iloilo
One Spatial Iloilo Iloilo
Valle Dulce Laguna
Southwinds Laguna
Maui Oasis Manila
Centro Spatial Manila
Enclave Muntinlupa
Belize Muntinlupa
Claremont Expansion Pampanga
Hampton Orchard Pampanga
One Spatial Pasig
Bali Oasis Pasig
Sorrento Oasis Pasig
The Prominence Quezon City
Activa Quezon City
Amarilyo Crest Rizal
The Grove Rizal
Anila Park Residences Rizal
Aria at Serra Monte Rizal
New Fields at Manna Rizal
Ventura Real Rizal
Mira Valley Rizal
Futura Plains Rizal
Futura Homes Koronadal Alta Spatial
Panglao Oasis Taguig
Alta Spatial Valenzuela City
Futura Zamboanga Zamboanga

Complete List of Mid-Rise Buildings

PROJECT LOCATION
METRO MANILA / LUZON
The Signature Balintawak, Quezon City
Futura East Cainta, Rizal
Asiana Oasis Paranaque City
Bali Oasis Pasig City
Bali Oasis 2 Pasig City
Capri Oasis Pasig City
One Oasis Ortigas Pasig City
One Spatial Pasig City
Sorrento Oasis Pasig City
Fortune Hill San Juan City
Maui Oasis Sta. Mesa, Manila
Fora Tagaytay
Panglao Oasis Taguig
Verde Spatial Quezon City
Alta Spatial Valenzuela City
Centro Spatial Manila
Belize Oasis Muntinlupa
VISAYAS
Amalfi Oasis City di Mare, Cebu
San Remo Oasis City di Mare, Cebu
Umi Garden City di Mare, Cebu
Marina Spatial Dumaguete
One Spatial Iloilo Iloilo
One Oasis Cebu Mabolo, Cebu City
MINDANAO
One Oasis Cagayan de Oro Cagayan de Oro
Veranda Resort Condos Davao 
Maldives Oasis Davao
Centro Spatial Davao City
One Oasis Davao Davao City
Eight Spatial Maa, Davao

A. Economic disclosures

Economic Performance

2019

Direct Economic Value Generated and Distributed

Total (in PHP)

Direct economic value generated (Revenue)

25,673,310,000

Direct economic value distributed

36,159,277,000

Procurement Practices

Proportion of Spending on Local Suppliers

%

Percentage of procurement budget used for significant locations of operations that is spent on local suppliers

98.81%

Anti-Corruption

Training on Anti-Corruption Policies and Procedures

%

Percentage of employees who have received written communication about corporate anti-corruption policies and procedures

--

Percentage of business partners who have received written communication about corporate anti-corruption policies and procedures

--

Percentage of directors and management who have received anti-corruption training

80%

Percentage of employees who have received anti-corruption training

--

Incidents of Corruption

Number

Number of incidents in which directors were removed or disciplined for corruption

0

Number of incidents in which employees were dismissed or disciplined for corruption

0

Number of incidents when contracts with business partners were terminated due to corruption

0

 

B. Environment Disclosures

Resource Management

2019

Energy consumption within the organization and Reduction of Energy Consumption

Unit Amount

Energy consumption - by fuel type - Gasoline

Liters 165,495.15

Energy consumption - by fuel type - Diesel

GJ 590,570.51

Energy consumption - by fuel type - Electricity

kwh 192,551,750

Energy reduction - by fuel type - Gasoline

 

--

Energy reduction - by fuel type - Diesel

 

--

Energy reduction - by fuel type - Electricity

  --

Water consumption within the organization

Water consumption within the organization

CBM 5,132,064.12

Water withdrawal

 

-

Water consumption

 

5,132,064.12

Water recycled and reused

 

 

Materials Used by the Organization

Materials used by weight or volume - rebar

Tonnes 29,773.19

Materials used by weight or volume - cement

Tonnes 137,860.38

Percentage of recycled input materials used to manufacture the organization’s primary products and services

 

-

Ecosystems and Biodiversity

Operational sites owned, leased in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

 

-

Habitats protected or restored

 

-

IUCN Red List species and national conservation list species with habitats in areas affected by operations

 

-

Environmental Impact Management

Air Emissions - Green House Gasses (GHG)

Unit Amount
Direct (Scope 1) GHG Emissions Tonnes CO2e 3,689.56

Energy indirect (Scope 2) GHG Emissions

Tonnes CO2e 115,800.29

Emissions of ozone-depleting substances (ODS)

  -

Air Pollutants

Nitrogen oxides (NOx)

 

-

Sulfur oxides (SOx)

 

-

Persistent organic pollutants (POPs)

 

-

Volatile organic compounds (VOCs)

 

-

Hazardous air pollutants (HAPs)

 

-

Particulate matter (PM)

 

-

Solid Waste

Reusable

 

5.86

Recyclable

  33.32

Composted

Tons 16.20

Residuals/Landfilled

  158,481

TOTAL

  158,536.38

Hazardous Waste

Total weight of hazardous waste generated

 

2,000

Total weight of hazardous waste transported

KG 2,000

TOTAL

 

4,000

Effluents

Total volume of water discharges

CBM 4,517,545.44

Percent of wastewater recycled

% 1.16

Environmental Compliance

 

 

Non-compliance with environmental laws and regulations

 

 

Total amount of monetary fines for non-compliance with environmental laws and/or regulations

 

--

--

C. Social Disclosures

Employee Management

2019

 

Employee Hiring and Benefits

Total Male Female

Total number of employees

1,170 459 711

Attrition rate

-- -- --

Ratio of lowest paid employee against minimum wage

-- -- --

Employee Training and Development

Total training hours provided to employees (by male/female)

9,241 4,195.5 5,045.5

Average training hours provided to employees (by male/female)

10.99 10.95 11.04

Labor Management Relations

% of employees covered by Collective Bargaining Agreements 0 --  

Number of consultations conducted with employees concerning employee-related policies

0 -- --

Diversity and Equal Opportunity

-- 39.23% 60.77%

% of workers in the workforce by gender

--    

Workplace Conditions, Labor Standards, and Human Rights Occupational Health and Safety

Safe Man-Hours

-- -- --

No. of work-related injuries

-- -- --

No. of work-related fatalities

-- -- --

No. of work-related ill-health

-- -- --

No. of safety drills

-- -- --

Labor Laws and Human Rights

Policies that explicitly disallow violations of labor laws and human rights (e.g. harassment, bullying) in the workplace

1 -- --

No. of legal actions or employee grievances involving forced or child labor

0 -- --

Relationship with Community

Significant Impacts on Local Communities

 

 

 

For operations affecting IPs, total number of Free and Prior Informed

 

 

 

Consent (FPIC) consultations and Certification Preconditions (CPs) secured

0 -- --

Customer Management

Customer Satisfaction Score(s)

65%

-- --

Health and Safety

Number of substantiated complaints on product or service health and safety

0 -- --
Number of complaints addressed 0 -- --

Marketing and Labelling

Number of substantiated complaints on marketing and labelling

165 -- --

Number of complaints addressed

165 -- --

Customer Privacy

Number of substantiated complaints on customer privacy

0 -- --

Number of complaints addressed

0 -- --

Number of customers, users and account holders whose information is used for secondary purposes

0 -- --

Data Security

No. of data breaches, including leaks, thefts and losses of data

0 -- --

 

SEC Content Index 

Disclosures   Reporting location Remarks/ explanation

Company details

 

Name of Organization

 

Filinvest Land, Inc.

 

Location of Headquarters

 

Mandaluyong City, Metro Manila

 

Location of Operations

Content Index

Philippines

 

Report Boundary: Legal entities included in this report

About this Section

Filinvest Land, Inc.

 

Business Model

 

Property Development

 

Reporting Period

 

January 1 – December 31, 2019

 

Highest Ranking Person for this report

Sustainability Governance

 

A. Economic disclosures

Reporting location

 

Remarks/ explanation

Economic Performance
Direct Economic Value Generated and Distributed

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

--
About this Section
 

 

KPIs

Direct economic value generated (Revenue)
Direct economic value distributed

Performance Metrics
Performance Metrics

 

Climate-Related Risks and Opportunities

General Disclosures

Governance
Strategy
Risk Management
Metrics and Targets

--

Data not available at time of reporting.

Procurement Practices
Proportion of Spending on Local Suppliers

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

Our Suppliers
About this Section

 

KPI

Percentage of procurement budget used for significant locations of operations that is spent on local suppliers

Our Suppliers
Performance Metrics

 

Anti-Corruption
Training on Anti-Corruption Policies and Procedures

General Disclosures

Management Approach
The Impact and Where it Occurs 
Stakeholders Affected

Approach to CSR – Anti-Corruption
About this Section

 

KPIs Percentage of employees who have received written communication about corporate anti-corruption policies and procedures
Percentage of business partners who have received written communication about corporate anti-corruption policies and procedures
Percentage of directors and management who have received anti-corruption training
Percentage of employees who have received anti-corruption training
-- Data not available at time of reporting.

Incidents of Corruption

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected
Number of incidents in which directors were removed or disciplined for corruption

Approach to CSR – Anti-Corruption
About this Section

 

 

KPIs

Number of incidents in which employees were dismissed or disciplined for corruption
Number of incidents when contracts with business partners were terminated due to corruption
Performance Metrics  

B. Environment Disclosures

Reporting location Remarks/ explanation

Resource Management
Energy consumption within the organization and Reduction of Energy Consumption

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected
Our Environmental Impact

About this Section
 

KPIs

Energy consumption - by fuel type
Energy reduction - by fuel type
Our Environmental Impact
Performance Metrics
 

Water consumption within the organization

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected
ESG Risks and Opportunities
Our Environmental Impact
About this Section
 

KPIs

Water consumption within the organization
Water withdrawal
Water consumption
Water recycled and reused
Our Environmental Impact
Our Environmental Impact
Performance Metrics
 

Materials Used by the Organization

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

--
About this Section

 

 

Materials used by weight or volume

Our Environmental Impact
Performance Metrics

 

KPIs

Percentage of recycled input materials used to manufacture the organization’s primary products and services

--

Data not available at time of reporting.

Ecosystems and Biodiversity

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

Our Environmental Impact
About this Section
 

KPIs

Operational sites owned, leased in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
Habitats protected or restored
IUCN Red List species and national conservation list species with habitats in areas affected by operations

-- Data not available at time of reporting.

Environmental Impact Management
Air Emissions - Green House Gasses (GHG)

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected
ESG Risks and Opportunities
 

Our Environmental Impact
About this Section

 

KPIs

Direct (Scope 1) GHG Emissions
Emissions of ozone-depleting substances (ODS)

Performance Metrics
--

Data not available at time of reporting.

Air Pollutants

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

--
About this Section

 

 

Nitrogen oxides (NOx)
Sulfur oxides (SOx)
 

 

 

KPIs

Persistent organic pollutants (POPs)
Volatile organic compounds (VOCs)
Hazardous air pollutants (HAPs)
Particulate matter (PM)

-- Data not available at time of reporting

Solid Waste

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

Our Environmental Impact
About this Section
 

KPI

Total solid waste generated - by type

Our Environmental Impact
Performance Metrics
 

Hazardous Waste

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

Our Environmental Impact
About this Section
 

KPIs

Total weight of hazardous waste generated
Total weight of hazardous waste transported

Performance Metrics  

Effluents

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

Our Environmental Impact
About this Section
 

KPIs

Total volume of water discharges
Percent of wastewater recycled

Our Environmental Impact
Performance Metrics
 

Environmental Compliance
Non-compliance with environmental laws and regulations

General Disclosures

Management Approach
The Impact and Where it Occurs
Stakeholders Affected

Our Environmental Impact
About this Section
 
 

Total amount of monetary fines for non-compliance with environmental laws and/or regulations

   

KPIs

Number of non-monetary sanctions for non-compliance with environmental laws and/or regulations
Number of cases resolved through a dispute resolution mechanism

Our Environmental Impact
Performance Metrics
 

C. Social Disclosures

  Reporting location Remarks/ explanation

Employee Management
Employee Hiring and Benefits

General Disclosures

Management Approach
The Impact and Where it Occurs

Our People – Hiring and Benefits
About this Section
 

KPIs

Total number of employees
Attrition rate
Ratio of lowest paid employee against minimum wage
List of employee benefits

Our People
Performance Metrics
--
--
Our People
Data not available at time of reporting.
 

Employee Training and Development

General Disclosures

Management Approach
The Impact and Where it Occurs

Our People – Training and Development
About this Section
 

KPIs

Total training hours provided to employees (by male/female)
Average training hours provided to employees (by male/female)

Our People
Performance Metrics
 

Labor Management Relations

General Disclosures

Management Approach
The Impact and Where it Occurs

Our People
About this Section
 

KPIs

% of employees covered by Collective Bargaining Agreements
Number of consultations conducted with employees concerning employee-related policies

-- Data not available at time of reporting

Diversity and Equal Opportunity

General Disclosures

Management Approach
The Impact and Where it Occurs
% of female workers in the workforce
% of male workers in the workforce

--
About this Section
Our People
 

KPIs

Number of employees from indigenous communities and/or vulnerable sector

Performance Metrics
--
Data not available at time of reporting.

Workplace Conditions, Labor Standards, and Human Rights Occupational Health and Safety

General Disclosures

Management Approach
The Impact and Where it Occurs

Our People - Health, Safety and Wellbeing
About this Section
 

KPIs

The Impact and Where it Occurs
Safe Man-Hours
No. of work-related injuries
No. of work-related fatalities
No. of work-related ill-health
No. of safety drills

-- Data not available at time of reporting

Labor Laws and Human Rights

General Disclosures

Management Approach

Our Suppliers
Our People
 

KPIs

The Impact and Where it Occurs
Policies that explicitly disallow violations of labor laws and human rights (e.g. harassment, bullying) in the workplace
No. of legal actions or employee grievances involving forced or child labor

About this Section
Our People
Performance Metrics
 

Supply Chain Management
Supplier Accreditation and Screening

General Disclosures

Management Approach
The Impact and Where it Occurs

Our Suppliers
About this Section
 

KPIs

Supplier Accreditation Policy
Sustainability Topics Considered When Selecting/Screening Suppliers

Our Suppliers  

Relationship with Community
Significant Impacts on Local Communities

General Disclosures Management Approach    

KPIs

Operations with significant impacts on local communities (by location, vulnerable group/indigenous people (IPs))
Mitigating measures (if negative) or enhancement measures (if positive)
For operations affecting IPs, total number of Free and Prior Informed Consent (FPIC) consultations and Certification Preconditions (CPs) secured

Our Communities Data not available at time of reporting.

Customer Management
Customer Satisfaction

General Disclosures

Management Approach
The Impact and Where it Occurs

Our Customers – Serving our Customers
Approach to CSR
 

KPI

Customer Satisfaction Score(s)

Our Customers- Serving our Customers  

Health and Safety

General Disclosures

Management Approach
The Impact and Where it Occurs

Our Customers – Serving our Customers
Approach to CSR
 

KPIs

Number of substantiated complaints on product or service health and safety
Number of complaints addressed

Our Customers
Performance Metrics
 

Marketing and Labelling

General Disclosures

Management Approach
The Impact and Where it Occurs

Our Customers – Serving our Customers  

KPIs

The Impact and Where it Occurs
Number of substantiated complaints on marketing and labelling
Number of complaints addressed

Approach to CSR
Our Customers
Performance Metrics
 

Customer Privacy

General Disclosures

Management Approach
The Impact and Where it Occurs

Our Customers – Protecting Privacy
Approach to CSR
 

KPIs

Number of substantiated complaints on customer privacy
Number of complaints addressed
Number of customers, users and account holders whose information is used for secondary purposes


Our Customers
Performance Metrics
 

Data Security

General Disclosures

Management Approach
The Impact and Where it Occurs

Our Customers – Protecting Privacy
Approach to CSR
 

KPI

No. of data breaches, including leaks, thefts and losses of data

Our Customers – Protecting Privacy
Performance Metrics
 

**As stated in the Approach to CSR – Sustainability Governance Section, ESG Risks and Opportunities as related to our material topics and climate-related issues were not assessed for this reporting period.

 

On
1255

Contact Us

Maintaining your privacy is an important part of the products and services rendered by the Filinvest Land.

Filinvest Land, Inc.

79 EDSA, Mandaluyong City,
1550 Philippines
(63 2) 7-918-8188

Sales Inquiries

Tel. No.: (63 2) 8-850-0888
Mobile No: (63 919) 076-4836

Shareholder Contacts

Tel. No: (63 2) 7-918-8188 loc. 6143

Customer Service

Metro Manila: (63 2) 8-588-1688
Email: servicedesk@filinvestland.com