MANAGEMENT APPROACH TO CORPORATE GOVERNANCE
First Gen understands the importance of good corporate governance in fostering the Company’s long-term success and securing sustained competitiveness in the energy industry. The Company remains steadfast in its commitment to finding resilient and regenerative solutions to mitigate the worsening effects of climate change. First Gen ensures that it strictly complies with corporate governance regulations and continuously improves its corporate governance structures to comply with, or even perform beyond, global best practices. The Company’s governance structure is detailed in its Manual on Corporate Governance available on the Company’s website. Details of and information on the Company’s governance practices may be seen in its Integrated Annual Corporate Governance Report which is likewise posted on the Company’s website.
First Gen’s approach to corporate governance is guided by the Lopez Values, adherence to the SEC’s issuances on governance, as well as respect for human rights and our commitment to environmental, social, and governance (ESG) safeguards principles. Our structure, policies, programs, and protocols ensure the following:
- Full compliance with local regulations and international conventions signed by the country and relevant to our operations;
- Balanced emphasis on financial and non-financial aspects of the company’s business strategy, operation and performance to achieve both short and long term goals;
- Creation of an environment that will protect the rights and allow equal treatment of all stakeholders;
- Sufficient controls that ensure effective management oversight within a culture of honesty and accountability throughout the organization; and
- Robust stakeholder engagement inclusive of timely disclosure of relevant information and the installation of necessary feedback mechanisms.
GOVERNANCE STRUCTURE
The Company relies on decision-making groups which are tasked to provide guidance in identifying and addressing material issues which may have a significant impact on the Company. To ensure that these groups are properly equipped to provide solutions and make decisions in the best interests of the organization, the Company has in place a collaborative process for effective information exchange and productive consultation. At the initial stage, operating groups are responsible for determining material issues which have to be raised to these decision-making bodies. Once a decision has been made, these are cascaded through the following process:
