RISING TO THE CHALLENGE · RISING TO THE CHALLENGE ABOUT THE COVER Water remains an essential...

RISING TO THE CHALLENGEMAYNILAD 2018 SUSTAINABILITY REPORT

RISING TO THE CHALLENGE

ABOUT THE COVER

Water remains an essential component of

sustainable progress. What has undergone

a transformation is the means by which a

utility company such as Maynilad secures

viable water sources and provides access to

potable water. Our challenge is to apply the

best technology to make the connections

and improve our services, so that we could

About the Cover

provide a reliable flow of water from the

source to the end-consumer. On the cover,

you find various tools that allow us to rise

to the challenge and perform our work

safely, efficiently, and with consideration

for our impact on the environment and

greater society.

Drink Sustainability Communications

www.drinkph.com

Design & Editorial

2


ABOUT MAYNILAD

Contents

4About this Report

6Performance

Highlights

11Message from

the Chairman

13Message from

the President/CEO

15Who We Are

18Value Chain

and SDGs

22Sustainability

Framework

23Stakeholder Review

and Materiality

Assessment

3


ABOUT MAYNILAD

About this Report

Climate change and environmental deterioration, high population growth, and poverty are factors that continue to influence the water industry and shape the way we at Maynilad Water Services, Inc. (Maynilad) (102-1) deliver on our commitments to our stakeholders. Maynilad has confronted these challenges head-on and come through strong, meeting—and in some cases, exceeding—the targets we set for ourselves.

REPORTING FRAMEWORK:

GRI Standards

APPROACH TO GRI:

In accordance: ‘Core’

REPORTING PERIOD:

Jan 1 - Dec 31, 2018

(102-50)

REPORTING CYCLE:

Annual

(102-52)

PREVIOUS REPORT:

Expanding Horizons,

published on Aug 2018

(102-51)

Through this sustainability report,

we communicate our continuing

sustainable development

initiatives. Maynilad also publishes

a separate annual report that

covers our complete financial

disclosures and other regulatory

requirements in greater detail.

(102-45)

As the global community

collaborates to achieve the United

Nations Sustainable Development

Goals (SDGs), Maynilad offers its

own contribution to the cause.

We align our initiatives with the

SDGs and strive to address those

within our scope of influence,

with emphasis on Goal 6: Ensure

availability and sustainable

management of water and

sanitation for all.

We remain committed to

the practice of sustainability

reporting, and to tracking the

economic, environmental, social,

and governance metrics that are

relevant to our business.

We use the Global Reporting

Initiative (GRI) Standards, which is

the most widely used framework

by companies and organizations

worldwide. This report has been

prepared in accordance with the

GRI Standards: Core option.

(102-54)

Maynilad has adopted the practice

of external assurance for our

sustainability reports. Our 2017

Sustainability Report, Expanding

Horizons, was the first reviewed

by an external stakeholder panel

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ABOUT THIS REPORT

composed of practitioners in

the fields of social development,

environment, and sustainability.

We continue this practice this year

for our 2018 report. Our external

assurance statement is found on

page 126. (102-56)

We remain committed to working

with you, our stakeholders, in

achieving the goals of sustainable

development. We welcome your

feedback and inquiries on our

report and hope for your continued

trust and support.

For any general inquiry or feedback on the 2018 Sustainability Report,

please contact:

ATTY. ROEL S. ESPIRITU

SAVP & Head, Corporate Quality, Environment, Safety and Health

Telephone number: (+632) 981-3481

Email: [email protected]

ENGR. ENRIQUE G. DE GUZMAN

AVP & Head, Integrated Management System



ENGR. CHESTER Y. DEL ROSARIO

Head, IMS and Sustainability Programs



Maynilad Head Office: Metropolitan Water and Sewerage

Services (MWSS) Complex, Katipunan Avenue, Balara,

Quezon City 1119, Philippines

(102-53, 102-3)

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ABOUT MAYNILAD

Performance Highlights

PERFORMANCE INDICATOR

% CHANGE YoY 15.2% (additional 316 MLD)

TOTAL WATER TREATED

2,390 MLD

2.9% (additional 41 MLD)

TOTAL BILLED VOLUME

1,446 MLD

3.6% (additional 48,745)

TOTAL NO. OF CUSTOMERS

1,407,503

2018 DATA

3.91% percentage-point increase

COVERAGE FOR COMBINED

SEWERAGE CONNECTIONS

10.89%


COVERAGE FOR SEWERAGE

SERVICE CONNECTIONS

9.55%

6


PERFORMANCE HIGHLIGHTS


COVERAGE FOR SANITATION SERVICES

21.24%

7.6% (additional 4,508,327)

WASTEWATER TREATED AND DISCHARGED

63,998,752 m3


PERSONNEL PER 1,000 CONNECTIONS

1.7

(404-1)

AVERAGE HOURS OF TRAINING (PER EMPLOYEE)

46.07


EMPLOYEES WHO AVAILED OF ANNUAL PHYSICAL EXAM

99.95%

Financial Highlights

11,944.45CAPITAL EXPENDITURES

7,367.78NET INCOME

1,652.53EARNINGS PER SHARE

59,638.41DEBT

48,281.61NET EQUITY

(Amount in PhP millions, except for earnings per share value)

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10th Annual Global CSR Summit & Awards,The Pinnacle Group International

“We have always believed that having clean water is a basic human right, so we implement these CSR programs to promote access to potable water, health, and resource conservation. We are humbled and grateful for this recognition from the Global CSR Awards,” said President and CEO Ramoncito S. Fernandez.

2018 Awards & Recognition

53rd Anvil Awards,Public Relations Society of the Philippines (PRSP)

1 PLATINUM AWARD(Excellence in Provision

of Literacy and Education)Daloy Dunong Program

1 GOLD AWARD (Best Community Program)

Samahang Tubig Maynilad (STM) and Pag-asa sa Patubig Partnership (P3)

5 GOLD ANVIL AWARDS• Lingkod Eskwela 2018• Ripples, The Official Company

Newsletter of Maynilad• Maynilad Media Run• Dakilang Manggagawa Awards• “Mayni-LAD to the Rescue!”

Wastewater Video

6 SILVER AWARDS• Green Badge Program• Daloy Dunong Program• Maynilad Simpleng Ginhawa

Videos• Maynilad 10th Anniversary Video• “Maynilad ang kailangan ng poso

(negro) mo” – Wastewater Digital Campaign

• “Isang Dekada, Dala ay Ginhawa” – Maynilad 10th Anniversary Campaign

8



16th Philippine Quill Awards,International Association of Business Communicators

3 Excellence Awards• “Isang Dekada, Dala ay Ginhawa”

– Maynilad 10th Anniversary Campaign• Daloy Dunong Program• Maynilad 10th Anniversary Video

8 Merit Awards• “Maynilad ang kailangan ng poso (negro) mo”

– Wastewater Digital Campaign• Dakilang Manggagawa Awards• Maynilad Rewards: Grandparents’ Day• Lingkod Eskwela 2018• Green Badge Program• Ripples, The Official Company Newsletter of Maynilad• Next Generation, Maynilad 2016 Sustainability Report• “Mayni-LAD to the Rescue!” Wastewater Video

Plaque of Appreciation,Bureau of Fire Protection (BFP)Maynilad is recognized for being a consistent partner in the BFP’s campaign toward maintaining a fire-free and fire-safe nation

Customer Center of Expertise Award,SAPMaynilad is recognized for upholding best practices in service delivery and business innovation enablement

“We are deeply honored and grateful to the IABC for recognizing our company’s advocacy and communications initiatives. These will inspire us to continue pursuing projects that further our ‘higit sa tubig na serbisyo’ brand promise,” said Maynilad President and CEO Ramoncito S. Fernandez.

9


ABOUT MAYNILAD

Outstanding Safety Achievement Awards,Safety Organization of the Philippines, Inc. (SOPI)

Award of MeritDagat-dagatan Sewage and Septage Treatment Plant for 2.6 million man-hours with no lost-time accident (MHNLTA)

Award of HonorMaynilad Head Office for 4.2 million MHNLTA

Safety Excellence AwardHead OfficeNorth Caloocan OfficeFairview-Commonwealth OfficeCentral Depot La Mesa Water Treatment Plant 1La Mesa Water Treatment Plant 2for 1.5 million MHNLTA

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Message from the Chairman

The year 2018 was, generally, a good year for the Company. Maynilad earned a net income of PhP7.3 billion in 2018, up from PhP6.8 billion in 2017. Core income increased by 5% due to the combined effect of a 3% growth in billed volume and several rounds of tariff increases–1.9% and 2.8% in April 2017 and January 2018 for inflation, followed by an additional 2.7% in October 2018 due to the Rate Rebasing process. This is the first time in nearly 10 years that we have an approved rate rebasing increase, and it has taken away the uncertainty from our required expenditures and the tariff needed to support them.

(102-11, 102-14, 102-15)

Dear valued stakeholders,

PHP7.3 BILLIONNET INCOME

5% INCREASEFROM 2017

When we privatized Maynilad a decade

ago, our battle was to transform a leaky

public asset into a profitable and efficient

company. We have certainly done that.

Our Maynilad NextGen program, which

matured in 2018, remains a mechanism for

continued growth. We have implemented

efficiency measures and improved our

service delivery. In fact, Maynilad was

recommended by TÜV Rheinland for

certification in ISO22301:2012 Business

Continuity Management Systems in

November 2018. This validates the

resilience of our operations and our ability

to maintain our services in the event of

a disruption such as an emergency or a

natural calamity.


Maynilad’s goal remains the same—water

solutions that improve access to safe

water—but the context has changed,

and the risks are higher. The Philippines

is dealing with population growth and

rapid industrialization vis-à-vis worsening

environmental conditions, including

fluctuating water levels and rising

temperatures. The global climate crisis

puts utility companies, including Maynilad,

at risk of weather-related disturbances.

This 2018, the rains exacerbated soil

erosion at Ipo watershed, resulting in

extreme water turbidity, and so our people

worked double-time to intensify water

treatment and deliver safe water to our

customers. We also experienced a shortage

of supply allocation. In response, we

managed our existing assets and informed

our customers on when to expect low

water pressure or a temporary

service interruption.

I am pleased to say that despite the

challenges we faced, Maynilad was able to

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MESSAGE FROM THE CHAIRMAN

“I am pleased to say that despite the challenges we faced, Maynilad was able to provide 24-hour service to 97.57% of our customers in 2018.”

provide 24-hour service to 97.57% of our

customers in 2018. Even better, we have

proven that we are responsive to the needs

of our customers, with 99.70% of service-

related complaints resolved within target.

WINNING OUR BATTLES

Water is vital to health and sanitation and

crucial for sustainable development. As the

Philippine population continues to grow,

we see spiking demand from household

accounts, alongside pressure from the

industrial and commercial sectors to ramp

up production. Our countrymen require

ever-increasing amounts of water to

sustain domestic and business activities.

Thus, Maynilad is focused on developing

alternative sources of water supply and

ensuring long-term water security for

our customers. Before the year ended,

we started operating the Putatan Water

Treatment Plant 2, our second treatment

facility sourcing raw water from Laguna

Lake. Initially, this allowed us to produce

an additional 25 million liters daily, but

this has since expanded to 100 MLD. At full

capacity, the new facility will produce 150

MLD by 2019.

For 2019, we will be allotting PhP16.8

billion on capital expenditures, which

is 87% higher than the PhP9 billion

earmarked for expenditures in 2018. We

will be investing more in water operations

support, such as the construction of

additional pumping stations and reservoirs,

water source projects, and service

expansion programs. Maynilad also intends

to build additional sewage treatment

plants (STPs) in the next five years, already

completing two new STPs in 2018.

Our responsibility to our stakeholders

moves beyond profit to public service. I

am proud to say that Maynilad has been

pivotal in supplying underserved but

populous areas in the West Zone of Metro

Manila. We have also been persistent in

educating our consumers—including the

students in our adopted public schools,

which benefited from our W.A.S.H.

program—to use water wisely. Water is a

shared resource, and we all have a stake in

its conservation. We hope to recruit more

water champions to spread this message

of accountability.

We at Maynilad will continue to be

accountable to you, our stakeholders. As

we escalate our efforts, we will remind

ourselves that success is about passion:

passion to succeed, passion for excellence,

and passion to compete. Our sense of

purpose and our ambition provide the

impetus to achieving the goals we have set

for ourselves.

Thank you for your support.

Manuel V. Pangilinan

Chairman

12


ABOUT MAYNILAD

Message from the President/CEO

We attained major accomplishments in 2018 due to strategic planning, continuing investments in infrastructure and water management systems, and a dedicated talent pool who helped us stay competitive.

(102-11, 102-14, 102-15)

Dear valued stakeholders,

25% INCREASEIN NO. OF MAYNILAD

ENGINEERS THROUGH

AGGRESSIVE HIRING AND

TRAINING PROGRAMS

STRONG TEAM EFFORT

Our aggressive hiring and training program

has increased the number of Maynilad

engineers by more than 25% in the past

three years. We also have a new integrated

asset management team who ensured that

our assets performed optimally in 2018.

Modernizing our data management and

information systems is also part of our

strategy. With some processes automated,

it eases the burden on our workforce to

monitor and analyze data, and to expedite

the resolution of any issue.

Although we had our share of challenges—

with regard to supply allocation, raw

water turbidity, and the slight delay in

the completion of the Putatan Water

Treatment Plant 2 (PWTP2)—we rallied by

communicating better across the divisions

and collaborating to fix the issues.

Transparent public communications also

kept customer complaints at a minimum

and improved our customer relationship.

LOWER NRW, HIGHER GAIN

Resource allocation is geared to making

Maynilad risk-ready, agile, and resilient.

We spent PhP2.558 billion to bolster

our pipe network in 2018. Our activities

included diagnostic and leak repair, pipe

replacements, and a PhP326-million meter

replacement project that allowed us to

calibrate our measurements to the most

accurate readings, not just for determining

daily average production but also non-

revenue water (NRW).

We kept water loss at a minimum in the

District Metered Areas (DMAs), with DMA

NRW averaging at 29.76% this 2018 from

32.27% in 2017. We also started to monitor

loss of water in the primary lines, and I

am pleased to report that Total NRW fell

to 38.52% at year-end from 41.36% in

January 2018. This means that the water

we recovered in the DMAs did not get lost

in the primary pipes.

In total, our people repaired approximately

21,000 leaks and recovered an estimated

56 MLD of water, enough to meet the

13


MESSAGE FROM THEPRESIDENT & CEO

requirement of 5,600 households in 2018.

I commend our team for achieving their

repairs with minimum safety incidents so

that we could better deliver on our service

commitments. The record shows that 99%

of mainline bursts which caused service

interruptions were repaired within 24

hours. Moreover, 80% of mainline bursts

that did not cause service disruptions were

also repaired within 24 hours.

PUSH FOR WASTEWATER MANAGEMENT

Equally important to the provision of water

is the proper management of wastewater.

This 2018, we added two new water

reclamation facilities to our assets. We

have also increased our sewerage service

connections and doubled our coverage

for sanitation services. We continue

to encourage customers to avail of

desludging—a service that Maynilad offers

at no additional cost. We will be installing

additional service connections, including

new sewer lines, in 2019.

“I commend our team for achieving their repairs with minimum safety incidents so that we could better deliver on our service commitments.”

We continue to strengthen our

collaboration with different agencies

working on rehabilitating our waterways

toward improving public health. For one,

Maynilad has entered into an agreement

with the Pasig River Rehabilitation

Commission (PRRC), the MWSS, and the

local government of Manila to rehabilitate

four esteros in the next three years. This

not only complies with the Mandamus

directive, but also fulfills Maynilad’s

internal drive to be socially responsible.

RESILIENT AND SUSTAINABLE MAYNILAD

At Maynilad, we see a marked shift in

perspective from a linear to a circular

economy. In the past, our practice has

been simply to get raw water, treat it,

distribute it, collect the wastewater, treat it,

and then release it. Now, however, we are

looking for ways across the supply chain to

further minimize waste and to protect the

environment. We are currently exploring

the possibility of reusing our effluents—

turning wastewater into energy—and

incorporating it back into the cycle.

Moreover, we have already institutionalized

energy management in Maynilad. Our

efforts to reduce power consumption are

geared toward generating energy savings

and decreasing our greenhouse gas

emission intensity through simple process

changes. We are also installing solar

panels at the La Mesa Compound to serve

as a source of renewable energy and have

already been augmenting our energy needs

with solar power at the Maynilad

Safety Center.

Sustainability is not something we can

achieve overnight, but I would like to

think that we have taken steps in the right

direction. I expect to have more good news

to impart to you, our stakeholders, in the

coming year.

Ramoncito S. Fernandez

President

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ABOUT MAYNILAD

Who We Are

Maynilad Water Services, Inc., or Maynilad (102-1), is the country’s largest private water and wastewater services provider, operating the longest ISO-certified water distribution system.

Maynilad is managed by DMCI-

MPIC Company, Inc., a joint-venture

between DMCI Holdings, Inc.

and Metro Pacific Investments

Corporation. In 2013, Marubeni

Corporation acquired 20% of

total shares in Maynilad. Other

subsidiaries, such as PhilHydro

and Metro Pacific Water, are not

covered by this report. (102-45)

As the concessionaire of the MWSS

for the National Capital Region’s

West Zone, Maynilad serves the

cities of Caloocan, Las Piñas,

Malabon, Muntinlupa, Navotas,

Parañaque, Pasay, and Valenzuela,

and areas in Manila, Makati, and

Quezon City. We also serve areas

of the nearby province of Cavite:

the cities of Bacoor and Imus, and

towns of Kawit, Novoleta, and

Rosario. (102-4, 102-6)

Maynilad maintains 7,691

kilometers (kms.) of primary,

secondary, and tertiary pipelines.

The Company sources from Angat

Dam and Laguna Lake. We utilize

28 pumping stations; 2 active

deepwells, with 12 others on

standby; and 32 water reservoirs

with a total holding capacity of

711 million liters of potable water.

Maynilad also operates 22 water

reclamation facilities, 111 sewage

pump/lift stations, and 588 kms.

of sewer lines to collect, treat, and

safely dispatch the wastewater

collected from customers.

We deliver an average of 1,446

million liters of potable water

daily to a service coverage area

encompassing a population of

9.5 million. Our 2,503 permanent

employees and workers take

care of 1.4 million residential,

semi-business, commercial, and

industrial accounts.

(102-2, 102-6, 102-7, 102-8)

Ownership and Legal Form

52.8%

25.2%

20%

2%Others

(102-5)

15


ABOUT MAYNILAD

Water Services (Total Billed)

Maynilad Service Delivery

= 50,000 Domestic Accounts1 = 50,000 Non-Domestic Accounts2

1,342,783

64,720

1 Residential, Semi-business2 Commercial, Industrial

32WATER RESERVOIRS

2ACTIVE DEEPWELLS

604 kilometersSEWER LINES

22WATER RECLAMATION

FACILITIES

28PUMPING STATIONS

(102-7)

(102-2, 102-6, 102-7)

Sewerage Services (Total Billed)

= 10,000 Domestic Accounts = 10,000 Non-Domestic Accounts

64,754 10,425

(21.24%)

Population Covered by Sanitation Services

2.03 million people

SANITATION COVERAGE,

CUMULATIVE SINCE 2017

82,353No. of septic tanks emptied

93,489No. of customers who accepted sanitation service offering

61,862No. of customers who opted out of sanitation services

155,351Total No. of accounts offered sanitation services

Sanitation Services

16


ABOUT MAYNILAD

Our VisionWe are the leading water solutions company in the Philippines with a strong presence across Asia.

Our MissionWe provide safe, affordable, and sustainable water solutions that enable those we serve to lead healthier, more comfortable lives.

Our Values (102-16)

Customer Service Commitment to Excellence

Honesty and Integrity Love for Country

Entrepreneurship Teamwork

For a comprehensive discussion of our values, visit www.mayniladwater.com.ph/company-vision.php.

17

http://www.mayniladwater.com.ph/company-vision.php.


ABOUT MAYNILAD

The water and wastewater industry has a major role to play in achieving the United Nations Sustainable Development Goals (UN SDGs.) While the UN recognizes water as a basic human right, many communities still have limited or no access to clean water for drinking, as well as for basic hygiene and sanitation. Population growth and climate change create further pressure on already scarce resources. This is the context in which Maynilad operates.

Value Chain

Overall, our business affects

the achievement of SDG Goal

6: Clean Water and Sanitation.

Maynilad’s head office is

responsible for administration,

human resource management,

as well as the management

of our legal, regulatory, and

compliance concerns. Apart from

our employees, we partner with a

network of vendors to deliver on

our commitments (SDG8).

As a responsible corporate citizen,

and a partner in development

(SDG16), Maynilad seeks to reduce

negative impacts on society and

the environment throughout all

the operations in our value chain.

We also seek to enhance our social

contributions, and to create and

share the value of our business

with all our stakeholders.

(102-12)

Primarily, our

entire value

chain pursues

these SDGs.

18


VALUE CHAIN

Maynilad also understands the importance of looking for other possible sources of water, to help supplement the amounts withdrawn from Angat. To this end, the Company has invested significant resources in developing Laguna Lake as a viable water source (SDG9).

Angat Dam/ReservoirAngat Watershed Forest Reserve: 520 square kilometers (km2) or 62,000 hectares (ha.)

Brgy. San Lorenzo, Norzagaray, Bulacan

Maynilad’s withdrawal amounts to 2,359.6 million liters per day, which has minimal impact on the dam; Angat stores up to 850 million cubic meters (MCM) of water and supplies around 4MCM per day. Maynilad properly manages water withdrawal in order to prevent strain on the watershed. Additionally, Maynilad contributes to the maintenance of the watershed through reforestation and biodiversity conservation initiatives (SDG15, SDG13).

Ipo DamAngat Watershed Forest Reserve: 70 km2 or 7,000 ha.

Brgy. San Mateo, Norzagaray, Bulacan

Laguna Lake East of Manila, with Laguna to the south and Rizal to the north 911 km2, with a shoreline of 220 kms.

Maynilad withdraws raw water from the Umiray-Angat-Ipo water system. Angat Dam provides 98% of Metro Manila’s water supply, with the balance sourced from deepwells.

Water Collection and/or Withdrawal(102-9, 102-12)

19


VALUE CHAIN

Water Treatment

La Mesa Treatment Plants 1 & 2La Mesa Watershed (2,659 ha.)

Novaliches, Quezon City

Putatan Treatment Plants 1 & 2Muntinlupa City

Raw water withdrawn from the source requires proper treatment. Maynilad has three water treatment facilities to process both surface and groundwater. We operate our facilities according to the highest standards (SDG12). The treatment processes at our facilities enable Maynilad to produce water that is compliant with the Philippine National Standards for Drinking Water of the Department of Health (SDG3).

We invest in improving the resilience of our infrastructure facilities and building in security and redundancy, particularly given the potential impact of climate change on our operations.

Water Distribution to Households and Business Areas

Our distribution system allows us to deliver treated water to the households and business areas within our concession area (SDG12). We strive to provide customers with 24/7 water supply, with a pressure of either 7 or 16 psi. Apart from our

domestic and commercial accounts, Maynilad recognizes that we also have a responsibility to provide water to the low-income sector. As such, we implement projects and programs for social inclusion, to bring clean water to more people (SDG10).

(102-9, 102-12)

20


The business of water goes beyond drinking water. While potable water will always be of high importance, the management of wastewater is critical in terms of maintaining people’s health, as well as that of the environment. To this end, Maynilad maintains and operates water reclamation facilities, sewage pumping stations, lift stations, and sewer lines, to collect and convey wastewater to our water reclamation facilities (SDG11).

Advocacy: Nation-BuildingMaynilad works with partners in national and local government, as well as with civil society organizations, to deliver social development programs that meet the needs of our stakeholders (SDG17). These range from programs for drinking water, WASH facilities, education, and environmental initiatives, such as tree-planting and coastal cleanups.

Wastewater Collection and Conveyance

Compliance to Laws and Regulations ✓ Philippine National Standards for Drinking Water

✓ Republic Act (RA) 9275:The Philippine Clean Water

Act of 2004

✓ RA 6969: Toxic Substances and Hazardous and

Nuclear Wastes Control Act of 1990

✓ RA 9003: Ecological Solid Waste Management Act

of 2000

✓ RA 8749: Philippine Clean Air Act

✓ Supreme Court Mandamus to Clean Up, Rehabilitate,

and Preserve the Manila Bay

✓ Department of Environment and Natural Resources

(DENR) Administrative Order (DAO) 2016-08: Water

Quality Guidelines and General Effluent Standards

of 2016

✓ Labor Code of the Philippines

✓ RA 9231: Anti-Child Labor Law

✓ RA 7322: Increasing Maternity Benefits in Favor of

Women Workers in the Private Sector

✓ RA 10151: An Act Allowing the Employment

of Night Workers

✓ RA 11058: An Act Strengthening Compliance with

Occupational Safety and Health Standards and

Providing Penalties for Violations thereof (OSH Law)

✓ International Organization for Standardization (ISO)

✓ Laboratory Quality Management System – World

Health Organization (WHO)

✓ United Nations Sustainability Development Goals

Our External Initiatives(102-12)

Our External Partnerships

✓ Global Water Intelligence

✓ International Water Association

✓ Management Association of the Philippines

✓ Philippine Business for the Environment

✓ Philippine Water Works Association, Inc.

(102-13)

(102-9, 102-12)

Maynilad strictly adheres to relevant rules and regulations. This is

part of our commitment to remain a responsible corporate citizen.

The Board of Directors is ultimately responsible for evaluating the

effectiveness of Maynilad's socioeconomic compliance practices.

(103-1, 103-2, 103-3)

21


ABOUT MAYNILAD

Sustainability FrameworkMaynilad pursues sustainable water solutions under the NextGen Framework’s three pillars: operational efficiency, business growth, and organizational development. In this way, our key business processes are tied to our sustainability goals, and we make good on our promises to our stakeholders.

Lower Non-Revenue Water

Lower Environmental Footprint

Secured Water Bodies for Sourcing and Receiving

Business Process Improvements

Risk Management

Health and Safety

Service Obligations and Legal Requirements

Operational EfficiencyOrganizational Capability

Employment

Good Corporate Governance

Supply Chain Management

(Procurement and Contract Management)

Asset Management

Business Growth

Economic Performance

Customer Service

Community Development and Social Inclusion

Service Delivery

(Additional Water Connections and Sewerage Services)

New Products and Services

Business Expansion Outside Concession Area

Partnerships

22


ABOUT MAYNILAD

Stakeholder Review and Materiality Assessment

The business of water is becoming increasingly complex. Players in the water industry are challenged to adapt quickly to environmental factors and shifts in governance, as well as economic considerations, while meeting the needs of a rapidly growing population.

To ensure our continued success,

we at Maynilad must engage our

stakeholders and understand

their needs. We have identified

our stakeholders based on their

influence on our business and

whether they will be affected by

our business activities. (102-42)

We consider our employees as

primary stakeholders and we

seek to provide them with a

work environment that is both

challenging and rewarding.

We also work with a network

of vendors.

We recognize that close

collaboration with these business

partners is critical to delivering on

our service commitment.

As a regulated business, Maynilad

must fulfill the obligations of

our service agreement, as well as

comply with the legal requirements

of the government. We also have a

responsibility to the customers we

serve, and to the broader society in

which we operate. They motivate

us to rise to the challenges we

encounter, and to improve and

expand our services.

Understanding our stakeholders

23


Employees

ENGAGEMENT CHANNELS (102-43)

CONCERNS (102-44)

✓ General meetings and assemblies

(Frequency depending on topics to be

discussed and target audience)

✓ Maynilad News (Online, daily)

✓ Company newsletter (Quarterly)

✓ Trainings (Scheduled for specific

audiences, quarterly)

✓ Labor Management Councils and

Grievance Committees meetings

(As needed)

⃝ Compensation and benefits

⃝ Employee engagement and satisfaction

⃝ Health and wellness

⃝ Training and development

⃝ Asset repair and maintenance

Customers


CONCERNS (102-44)

✓ Customer Satisfaction Survey (Annual)

✓ Bills presentment (Daily)

✓ Customer Service Information System

/ Anti-Illegal System / Workflow

Management System (Daily)

✓ Public consultations (As needed)

✓ Door-to-door customer engagement

(As needed)

✓ Contact Center - Hotline, social media, etc.

⃝ Improvement of customer experience

⃝ Delayed resolution of complaints

⃝ Customer service innovations (automated

systems for billing, service information,

complaints and applications)

⃝ Digitization of water service connection

contracts

⃝ Customer advisories on water supply

and billing

⃝ Availability and quality of water ensured

to customers

⃝ Water service interruptions, emergency

water interruptions

⃝ Low water pressure

⃝ Desludging services and sewer line-

related requests

⃝ Traffic and road congestion due to

pipelaying works

⃝ Noise, vibration, dust due to project

implementation

STAKEHOLDER REVIEW AND MATERIALITY ASSESSMENT

STAKEHOLDER GROUPS (102-40)

Customers

Employees

Suppliers and Contractors

(also known as Vendors)

Communities

Industry Partners

Government and Regulators

Civil Society Organizations

For the purposes

of this report, our

business units, with the

help of a third-party

consultant, conducted

a stakeholder audit

and subsequent review

of our stakeholders’

feedback through our

existing engagement

mechanisms.

(102-43) The results

are as follows (arranged

per stakeholder group):

24


✓ Vendor accreditation process

✓ Contractor Performance Evaluation

(On a project basis, as needed)

✓ Toolbox Meetings

✓ Vendor Conference, exhibit,

awarding ceremony

Industry Partners


CONCERNS (102-44)

✓ Conferences (As needed)

✓ Workshops (As needed)

✓ Industry events (As per schedule)

⃝ Water pressure improvement

⃝ Right of way acquisition

⃝ Lot identification

⃝ Updating of standards (materials,

equipment, methods)

⃝ Delayed disbursement

Communities


CONCERNS (102-44)

✓ Public consultations (As needed) ✓ Social Perception Survey (As needed)

⃝ Provision of wash facilities

⃝ Delivery of water to community through

water tankers

⃝ Information and education campaigns (IEC)

⃝ Discounts to lifeline customers and

senior citizens

⃝ Public consultations, plant tours and other

IEC to raise awareness and gain support

on project implementation from our

stakeholders


Government and Regulators


CONCERNS (102-44)

✓ Regulatory disclosures (As needed)

✓ Communication initiatives of the

Government Relations Department

(As needed)

⃝ Compliance with the concession

agreement and regulatory requirements

⃝ Compliance with permits and other

reportorial requirements

⃝ Wastewater effluent quality

⃝ Support for environmental projects of

partner LGUs

⃝ Business continuity management

⃝ Maintain a strong institution, good state of

the company

⃝ Sustain and reinforce strong

organizational culture

Civil Society Organizations


CONCERNS (102-44)

✓ Dialogues (Scheduled per project and per

program)

⃝ Partnerships

⃝ Corporate Social Responsibility

Suppliers and Contractors


CONCERNS (102-44)

⃝ Timely payment to vendors

25



Next Gen Framework Material Topic (102-46, 102-47)

GRI DisclosureSDG

Alignment

OPERATIONAL EFFICIENCY Lower NRW

Boundary: Within the organization

• Management Approach


Boundary: Within the organization, with external impacts

• Materials used by weight or volume • Waste by type and disposal method • Transport of hazardous waste • Energy consumption within the organization • Energy intensity • Direct (Scope 1) GHG emissions • Energy indirect (Scope 2) GHG emissions • Other indirect (Scope 3) GHG emissions • GHG emissions intensity • NOx, SOx, and other significant air emissions • Non-compliance with environmental laws and regulations • Negative environmental impacts in the supply chain and

actions taken • Operational sites owned, leased, managed in, or adjacent to

protected areas, and areas of high biodiversity value outside protected areas

• Significant impacts of activities, products, and services on biodiversity

In selecting the topics for this report,

we resolved to be inclusive, accurate,

and balanced by accommodating

concerns raised by our various

stakeholders. Given that our

stakeholders’ needs are changing, the

list of material topics has expanded to

ensure timeliness and comparability

with industry best practices.

Factored into the consideration are

the performance indicators for the

business units. We continue to be

guided by our Five-Point Strategy for

Growth, our Mission-Vision Statement,

and our Quality, Environment,

Energy, Safety, and Health (QESH)

Management Framework in identifying

the material topics. We also aligned

these topics with the pillars of our

Next Gen Framework, which serves

as the framework for our business,

as well as our approach to providing

sustainable water solutions.

To help the country progress toward

the achievement of the UN SDGs,

we also identified the areas where

we have existing initiatives or new

opportunities.

We strive to follow the GRI Principles

of reporting in terms of materiality,

alongside stakeholder inclusiveness,

completeness, and the overarching

sustainability context.

Reporting on what matters most(102-46)

26




GRI DisclosureSDG

Alignment


Boundary: Within the organization, with consideration for impacts on the community

• Water withdrawal by source • Water sources significantly affected by withdrawal of water • Water discharge by quality and destination• Water bodies affected by water discharges and/or runoff




Asset Management



Risk Management


• Precautionary Principle or approach • Key impacts, risks, & opportunities

Service Obligations and Legal Requirements

Boundary: Within the organization, with consideration for impacts on the regulatory environment

• Non-compliance with laws and regulations in social and economic area

ORGANIZATIONAL CAPABILITY AND PEOPLE DEVELOPMENT

Good Corporate Governance

Boundary: Within the organization, and by extension, third-party vendors under contract

• Values, principles, standards and norms of behavior • Mechanisms for advice and concerns about ethics • Governance structure • Chair of the highest governance body • Conflicts of interest • Highest governance body’s role in sustainability reporting • Non-compliance with laws and regulations in the social and

economic area

27




GRI DisclosureSDG

Alignment

Employment

Boundary: Within the organization, with impacts on supply chain

• New employee hires and employee turnover• Types of and rates of injury, occupational diseases, lost days,

and absenteeism, and number of work-related fatalities • Average hours of training per employee • Programs for upgrading employee skills and transition

assistance programs • Diversity of governance bodies and employees • Incidents of discrimination and corrective actions taken • Operations and suppliers in which the right to freedom of

association and collective bargaining may be at risk

Supply chain management (Procurement and contract management)

Boundary: Within the organization, with external impacts due to business partners

• Supply chain • New suppliers that were screened using social criteria • Negative social impacts in the supply chain and actions taken

Health and Safety


• Occupational health and safety management system • Hazard identification, risk assessment, and incident

investigation • Occupational health services• Worker participation, consultation, and communication on

occupational health and safety• Promotion of worker health• Worker training on occupational health and safety• Workers covered by an occupational health & safety

management system• Work-related injuries• Work-related ill health

BUSINESS GROWTH Economic Performance


• Direct economic value generated, distributed, and retained

Service Delivery (more water connections and sewerage services)

Boundary: Extended outside the organization

• Development and impact of infrastructure investments and services supported

28




GRI DisclosureSDG

Alignment

New Products and Services



Business Expansion Outside Concession Area



Customer Service

Boundary: Within the organization, with customer impact


Partnerships


• Operations with local community engagement, impact assessments, and development programs

• External initiatives • Membership of associations

COMMUNITY DEVELOPMENT AND SOCIAL INCLUSION



• Significant indirect economic impacts• Incidents of non-compliance concerning the health and safety

impacts of products and services • Proportion of spending on local suppliers • Operations with local community engagement, impact

assessments, and development programs

29


ABOUT MAYNILAD

Operational Efficiency

Efficient and eco-friendly operations result in improved service delivery.

We make sure that we meet our service obligations by investing in

infrastructure, and streamlining our key business processes (project

management, asset management, customer relations), so that we respond

better to our customers’ needs.

30

RISING TO THE CHALLENGE 31

OPERATIONAL EFFICIENCY

Lower Non-Revenue Water (NRW)

Maynilad is responsible not only for ensuring sufficient availability of water within our concession, but also in conserving water and minimizing water loss and supply disruptions. This is part of our social contract with MWSS and our customers.

Maynilad invests in network

rehabilitation and maintenance to

ensure uninterrupted water supply for

our customers. This 2018, a total of

PhP2.858 billion was spent on water

loss recovery through our

Non-Revenue Water (NRW)

management program.

Central Non-Revenue Water (CNRW)

Division continues to implement

effective NRW strategies, alongside

quick-response operations to detect

and plug leaks, and improve water

metering. Our Leak Detection

Management (LDM) Department is

responsible for discovering leaks.

The Water Supply Operations (WSO)

Division repairs the primary line leaks,

and Customer Experience and Retail

Operations (CXRO) Division repairs

the secondary and tertiary line leaks.

Meanwhile, the Integrated Meter

Management (IMM) Department

calibrates water meters and replaces

old water meters. Php1.802 billionFULL AND PARTIAL

PIPE REPLACEMENT

Php379 millionMETER MANAGEMENT

Php329 millionLINE REPLACEMENT

CAPEX in 2018:



At least two engineers are assigned to

monitor each BA.

In 2018, there were a total of 7,691

pipes laid and 710 mainline pipes

repaired. Of the latter, 99.4% of the

317 mainline bursts reported by

customers were repaired within

24 hours. Service connection repairs

at 18,796 were lower than the 21,953

in 2017. We also replaced 102,890

meters, bringing the total meters

replaced to 1.4 million since 2008.

This year, we monitored both our

already established DMAs and the

primary lines. The results of our

measurements are as follows:

• an average of 29.76% NRW-DMA

• an average of 39.53% Total NRW

This brings us closer to our goal of

lowering NRW to 20% by 2027.

Through Waze’s “Connected

Citizens Program,” Maynilad

has been uploading real-time

data on road-digging activities,

including projects that may

require road closures, to the

Waze Map. The initiative aims

to promote better road safety

and traffic flow, as drivers who

use the Google-owned Global

Positioning System (GPS)

software app can avoid traffic

buildup near worksites.

Maynilad partners with Waze to enhance roadworks info dissemination

“We strive to alleviate the

effect of our roadworks on the

motoring public. Through this

partnership with Waze, we can

empower drivers by providing

real-time information about

Maynilad roadworks that will

allow them to better plan their

daily routes,” said Maynilad

CEO and President Ramoncito

S. Fernandez.

Our water recovery strategies include:

• detecting leaks and potential

leaks using highly specialized

equipment;

• prioritizing pipe replacement

based on potential water

recovery, frequency of pipe

bursts, and service level

improvement; and

• proper meter management

through automatic

meter reading.

Maynilad’s NRW engineers across

the 12 Business Areas (BAs) use the

Netbase management system to

monitor more than 1,600 District

Metered Areas (DMAs), ’round the clock.

Netbase integrates our telemetry,

consumption, and asset databases.

NRW engineers are automatically

alerted on DMA-specific anomalies.

This allows them to act quickly and to

deploy maintenance crews as needed.

Maynilad’s Concession Area

in Metro Manila and Cavite

Quezon City

Caloocan (north, south)

Malabon

Navotas

Valenzuela

Manila

Makati

Pasay

Parañaque

Las Piñas

Muntinlupa

Bacoor

Imus

Kawit

Rosario

Noveleta

Cavite City

1

2

3

4

5

6

7

8

9

19

11

12

13

14

15

16

17

12

2

34 5

6

78

910

1112

13

1415

16

17




Maynilad depends on natural resources for water supply. What we do has a direct impact on the viability of these resources and the quality of life of our stakeholders. As such, we take our commitment to environmental care and protection seriously. (103-1)

Our environmental performance is

governed by the Corporate Quality,

Environment, Energy, Safety and

Health (CQESH) Policy. The policy

was updated in February 2018 and

signed by Maynilad’s CEO. (103-2)

Maynilad employs the following

strategies to minimize our

environmental impact (103-2):

• maintaining environmental

permits, licenses, clearances,

and certifications;

• incorporating an energy

management system on

existing management

systems;

• optimizing water production

and wastewater treatment

through facilities and process

improvements, and thus

cutting down on emissions;

• implementing clean fleet

management strategies such

as replacing all light vehicles

every five years for more

efficient models, shifting to

low-emissions fuel types,

and using GPS navigation to

determine optimal routes;

• practicing solid waste

management and recyclables

segregation to reduce

landfill emissions;

• promoting reforestation

activities via the Plant for

Life program, to enable

carbon capture and maintain

healthy watersheds;

• institutionalizing corporate

social responsibility (CSR)



programs, particularly in

terms of environmental

initiatives such as

coastal cleanups;

• fostering awareness on

environmental protection

among employees and

encouraging their

active participation

in the Company’s

environmental programs.

We operate under established

systems for environmental

management that are aligned

with internationally accepted

standards. Maynilad is certified

in Environmental Management

System (EMS) and undergoes

annual internal audits to maintain

the standard. Externally, our EMS

is audited by TÜV-Rheinland to

ensure that the company remains

compliant with the guidelines set

by ISO 14001:2015; recertification

is done every three years. (103-3)

To determine the effectiveness

of our programs, we also conduct

environmental impact assessments

(EIA) and social impact

assessments (SIA), including

social participation and

acceptability activities.

Our vendors undergo accreditation

(for details on our accreditation

process, visit www.mayniladwater.

com.ph/supplier-accreditation.

php). Vendor compliance to our

ESH standards is monitored.

We conduct regular/periodic

vendor performance evaluation,

and any deviation from contract

requirements, which includes ESH

requirements, is penalized. (103-3)



In the interest of quality and

uninterrupted service, we enforce

controls that ensure our materials and

chemical supplies are up to standard.

(103-1)

The Inventory and Warehouse

Management Department (IWMD)

ensures the availability of materials

needed for Maynilad operations

and projects, while at the same

time optimizing inventory levels to

minimize costs. (103-2)

Inventory management is based

mainly on the annual materials

forecast of end-users, but also

considers historical consumption of

materials. Regular coordination is

made by IWMD with end-users to

discuss material movements, updated

requirements, stock status, and other

issues and concerns. A Stock Materials

Catalogue is also available online as

reference of end-users in planning

their material requirements.

(103-3) Materials are properly stored

at Maynilad’s Central Depot and

Materials Managementfive strategically located satellite

warehouses. The warehouses are

well-maintained with the two biggest

warehouses being regularly visited

and benchmarked by other

organizations. Proper controls in all

warehouses are implemented

resulting to yearly zero variance

(physical count vs. SAP records) in

the yearend inventory count in all

satellite warehouses. (103-3)

Water and wastewater treatment

chemicals are managed by the

different treatment plants which

store the chemicals properly and

ensure stock availability. IWMD,

however, monitors inventory levels

and movements as well as

consolidates annual chemical

requirements of different plants to

reduce purchasing cost. (103-2)

As a safety measure, employees and

workers undergo materials training,

particularly in the storage, handling,

and disposal of chemicals.

Employees doing inventory of non-renewable materials at the Maynilad Central Depot

(301-1)

Materials(Non-renewable)

2015 2016 2017 2018

Water meters and spare parts (in pcs.)

448,498

472,806

432,984

411,050

Pipes and fittings (in pcs.)

1,178,971

1,288,725

1,123,981

1,093,609

Valves, hydrants, and accessories (in pcs.)

7,646

7,309

6,712

7,329



Chemical consumption is dictated

by the amount of water produced

and by the quality of raw water

being treated. Increased water

production also means an

increase in chemical consumption.

Increased turbidity in the raw

water also requires intensified use

of chemicals for water treatment.

This year’s increase in consumption

of Aluminum Sulfate, the main

coagulant for La Mesa Treatment

Plants 1&2 can be attributed to

the increase in raw water turbidity.

Average raw water turbidity

in 2017 is 9.45 Nephelometric

Turbidity Units (NTU) compared to

22.57 NTU in 2018. The recorded

highest turbidity during the

Habagat month of 2017 is

93.20 NTU compared to 825 NTU

for the same period in 2018.

On the other hand, a noticeable

increase in Sodium Hypochlorite

consumption in 2018 at Putatan

Water Treatment Plant 1 was

due to measures to address

Trihalomethanes (THM) formation.

Ultimately, Maynilad ensured that

the water provided to customers

met the Philippine National

Standards for Drinking Water

despite the highly turbid water

from Ipo Dam.

See Table 1 on page 131 and Table 2 on page132 for more data on

non-renewable chemicals used in 2018

Chemicals(Non-renewable)

Intensity in tonne chemicals used per water produced (in tonne/million liters)

2015 2016 2017 2018

0.0206

0.0209

0.0157

0.0273

Amount used per water production (in MT)

16,912.63

18,095.12

14,262.43

23,978.24

Amount used per wastewater treatment (in MT)

1,434.17

1,613.95

(301-1)

1,434.17

1,613.95



Maynilad aims to be a responsible

corporate citizen and this entails

practicing proper solid waste

management, in accordance

with national law and municipal

ordinances. We strive to reduce

the amount of waste we generate

through reduction, recycling, and

reuse. (103-1, 103-2)

Maynilad adopts solid waste

management practices that comply

with national and local regulations.

We have a System Procedure on

Waste Management, as well as

an Operational Procedure on the

Waste ManagementDisposal of Hazardous Wastes. Both

procedures are consistent with the

requirements of the DENR. (103-2)

Each facility disposes of its

solid waste through the services

of the local government unit

(LGU). Maynilad employs a

DENR-accredited third-party

service provider to haul the

hazardous wastes. Sludge from

the wastewater treatment plants,

meanwhile, is pressed and

converted into biosolids, which

are used as fertilizer or soil

conditioner. (103-2)

Non-Hazardous Waste(in kilograms)

T YPE OF WASTE 2016 2017 2018DISPOSAL

METHOD (2018)

Biodegradable 21,913.24 21,045.81 29,632.92

• wet 15,953.461

• dry 13,680.46

Residuals

(paper, sachet, etc.)14,544.89 7,918.78 12,822.99

Recyclables 10,202.02 18,297.93 14,871.63*

TOTAL 46,660.15 47,262.52 57,327.54

(306-2)Disposed via landfill by the LGU

Sold to accredited partner junk shops



Maynilad also generates hazardous

wastes consisting of used

lightbulbs, batteries, and oil, as

well as contaminated containers,

rags, and electronic waste. These

wastes are hauled and properly

disposed through DENR-accredited

service providers. (103-2)

Maynilad operates a Trash to Cash

program at the Head Office and the

Central Depot, where recyclables

(paper, PET bottles, etc.) are

collected for selling to Maynilad-

accredited partner junk shops.

Some recyclables are donated to

charitable institutions. (103-2)

Hazardous Waste(in kilograms)

T YPE OF

WASTE

2016 2017 2018 DISPOSAL

METHOD (2018)

GENER ATED DISPOSED GENER ATED DISPOSED GENER ATED DISPOSED

Contaminated

containers and

paint cans

306.00 134.70 1,405.12 284.00 2,819.69 427.3

Ink cartridges 1,172.00 789.10 4,866.90 710.75 1,240.68 817.4

Used batteries 2,840.00 0.00 949.20 0.00 11,919.36 8,501.8

Used bulbs and

fluorescent

lamps

859.70 906.80 2,010.55 814.20 1,524.91 263.6

Oil-contaminated

rags and

materials

174.70 277.75 11,599.30 733.20 1,882.30 136.3

SUBTOTAL 5,352.4 2,108.35 20,831.07 2,542.15 19,386.94 10,146.4

(in liters)

Used oil 6,818 3.00 11,599.30 16,764 20,111.63 1,800

(306-2, 306-4)DENR-accredited hauler

chemical fixation and stabilization

micro encapsulation technology

recycling

crushing and filtration

mercury recovery technology



Each Maynilad facility has a

storage area for hazardous waste,

with a maximum storage limit of

one year. All our storage areas are

within the prescribed standard of

the DENR DAO 2013-22.

Following an annual

evaluation, Maynilad did not

renew its agreement with

an underperforming third-

party transporter/hauler. As

a consequence, there was no

accredited transporter/hauler

in 2016 and 2017. Maynilad’s

procurement selects from a

shortlist of DENR-accredited

haulers to identify partner haulers.

However, sometimes there are

too-few haulers in a specific area

that would be able cater to the

demand. The delay in procurement,

exacerbated by a delay in the 60-

day permit to transport, led to a

pile-up of stored waste, outlasting

the disposal limit of one year.

Maynilad has since implemented

a corrective action, whereby

procurement monitors all soon-to-

expire contracts and is obliged to

notify Head Office prior to reaching

over-capacity.

The quantity of wastes hauled per

facility is limited by the quantity

set in the Permit to Transport (also

by facility) granted by DENR to our

third-party haulers. Other factors

would be scheduling conflicts and

the capacity of the vehicle used

by the hauler. Depending on these

factors, Maynilad may have to

temporarily store some generated

waste. The third-party hauler/

treater is obliged to send a copy

to Maynilad of the Certificate of

Treatment as proof that the hauled

wastes have been properly treated

and disposed. (103-3)

Transport of hazardous waste

2017 2018

No. of facilities with zero hazardous waste

18 out of 58 18 out of 61

No. of facilities employing hauling services


No. of facilities that did not employ hauling services


(306-4)



We strive not to squander energy

in our operations. We aim to

reduce our greenhouse gas (GHG)

emissions by lowering our energy

and fuel consumption. We also

Energy Usehope to reduce our dependence

on fossil fuels by shifting to low-

carbon energy, where applicable.

(103-1, 103-2)

Maynilad’s energy management consists of (103-2):

power management systems and ongoing automation projects for water and wastewater facilities;

refurbishment of equipment and installation of variable frequency drives (VFDs) and highly efficient and calibrated pumps and motors;

using Automatic Transfer Switch controls to minimize effects of abrupt change in power from electricity supply to generators and vice versa;

constant monitoring and adjustment to the optimum level of power and chemical volumes (without sacrificing effluent quality) in sewage treatment plants

installation of solar panels and solar-powered light posts in select facilities, starting with the Maynilad Safety Center, and soon to be adopted in the La Mesa Development Plan;

installing motion-detector lighting systems and using LED lamps instead of fluorescent bulbs;

employees encouraged to practice energy conservation measures in all offices and work sites such as: observing a 15-minute interval on switching of pump motors; setting temperatures between 22 to 25 degrees Celsius for the inverter-type air-conditioning units; switching off lights during lunch break and turning off the air-conditioning units at 4:30 PM onwards; and eco-driving.



Energy Consumption Within the Organization

Fuel¹(in liters)

1,443,334.05

1,350,941.87

1,488,706.09

1,545,326.17

Electricity from the grid(in kWh)

112,886,862.53

115,436,790.25

125,725,852.64

131,380,441.00

(302-1)

The ideal is to spend the optimum

amount of energy and fuel to

produce the required water

volumes. In tracking consumption

of fuel and electricity, we monitor

energy reduction by energy

consumption in kilowatt hours,

converting to the liter of oil

equivalent. This is then measured

over water produced to get the

ratio of power consumed per liter

of water produced. (103-2)

2015 2016

2017 2018

2015 2016

2017 2018

1 Fuel consumption represents both fuel consumed by motor vehicles and stationary equipment (e.g., generator sets).

2 Maynilad prefers to re-fleet every five years. In 2016, we started using diesel instead of gas for cost savings of PhP10 per liter and, more significantly, for greater mileage per kilometer. To date, Maynilad is still using Euro II diesel fuel; by 2020, it will switch to Euro IV.

2018 Fuel Consumptionby type

Vehicles²

DIESEL GASOLINE

1,015,438.23 L37,172.75 GJ

75,655.35 L2,507.83 GJ

Stationary Equipment (Generators, etc.)

429,883.63 L15,737.01 GJ

24,348.96 L807.12 GJ



Energy Intensity

Water produced (in million liters)

Energy intensity (in kWh per million liters)

Wastewater treated (in million liters)

= 50,000 ML = 50 kWh/ML

2015

2016

2017

2018

821,661.14

864,564.72

910,961.11

872,077.09

129.58

140.35

59,490.43

63,998,752

(302-3)

Maynilad ‘s WSO has drafted

an energy management plan

that incorporates solar energy

into water production. Together

with the PMD, WSO has been

developing a 1.01MWp Solar

Power Plant at the La Mesa

Compound, initially to power

the water pumps. Panels with

a capacity of 4.5 kWh each

are now installed on top

of the ARPS Reservoir, near

the pumping station. The

installation, a photovoltaic

solar power grid tied system,

A solar-powered Mayniladis designed to connect to

the existing electrical supply

system. It is expected that

the solar power system will

perform at 90% efficiency

for the next 10 years.; and at

least 80% efficiency in the

succeeding decade. The project,

which has a life span of 40

years, costs PhP101.9 milion.

In the future, Pasay WRF and

other facilities will also be

solar-powered.

Maynilad has been monitoring energy intensity in relation

to wastewater treatment for years, but the Company only started

reporting this data in 2018.

57,981.30

57,120.33

137.39

133.52



GHG Emissions(in tonnes CO2e)

Direct (Scope 1)

2015 2016 2017 2018

4,768.51

4,278.94

4,746.10

7,061.13TOTAL

DIRECT

GHG

75,401.17

71,586.25

65,917.22

63,012.07

Power statistics taken from DOE 2017 Gross Power in MWh by generation, by plant type

Energy Indirect (Scope 2)

Purchased

Electricity

See page 135 for breakdown of GHG Emissions, Direct (Scope 1)

158.90

34.31

64.21

39.97

* Maynilad does not account for emissions from degraded materials (i.e., landfill emissions).

Other Indirect (Scope 3) GHG Emissions

TOTAL

OTHER

INDIRECT

GHG*

We ensure that any trips taken are

essential to the business. Notably,

the year 2018 was characterized

by increased participation of

employees and executives in

conferences, trainings, seminars,

and engagements, both within and

outside the country. Benchmarking

new technologies abroad and

exposure trips tied to expansion

activities, also played a part in the

increase in Scope 3 emissions.

(305-1)

(305-2)

(305-3)

GHG Emissions per unit of water distributed

1 liter.09 g CO2e

1 megaliter90 kg CO2e



Significant Air Emissions¹

Amount(in kilograms)

2015 2016 2017 2018

Nitrogen Oxides (NOx) 279.15 260.81 254.79 270.83

Sulfur Oxides (SOx) 1,543.20 1,622.76 1,764.78 1,873.59

Volatile organic compounds (VOCs) 52.33 42.15 27.98 27.0

Particulate matter (PM) 6.57 6.81 5.27 5.05

Carbon monoxide (CO) 351.70 202.44 82.57 72.61

(305-4)

(305-7)

Maynilad calculates for the GHG and air pollutant emissions using the emissions factor approach. Emissions from power usage are calculated using the DOE power statistics report; other GHG emission factors used, such as in fuel and wastewater, are based on accepted international standards.

1 Maynilad uses Microsoft Excel-based calculation tools, which were developed by Clean Air Initiative- Asia with support from Philippine Business for the Environment. These tools were subsequently modified for Maynilad’s needs. The spreadsheet tools utilize globally accepted methodologies and data from sources such as the GHG Protocol, the AP-42 of the United States Environment Agency and the Clean Fleet Management Toolkit of the United Nations Environment Programme.

GHG Emissions Intensity

Water produced (in million liters)

Total GHG Direct and Energy Indirect (tCO₂e)

= 50,000 ML = 50,000 tCO2e

Wastewater treated (in million liters)

Emissions intensity per water produced

and wastewater treated (tCO₂e/million liters)

2015

2016

2017

2018

821,661.14

864,564.72

910,961.11

872,077.09

75,865.19

80,169.68

59,490.43

63,998.75

= 1 tCO₂e/million liters

0.078

0.086

57,981.30

70,663.32

0.076

57,120.33

70,073.20

0.080



Yearly, our expansion activities

result in new service connections

and an extended pipe network. In

2018, we started operating the

Putatan Water Treatment Plant

2, two new water reclamation

facilities in Pasay and Parañaque,

as well as an additional pump

station in Cavite. As a consequence,

our energy consumption increased,

not only because of the new

facilities, but also due to the

energy required to operate

pumping stations due to our

extended reach. To mitigate service

interruptions, we also mobilized

some of our trucks to bring water

to areas affected by temporary

shortage of supply. The rise in

fuel consumption is also attributed

to the increased fuel demand of

stationary equipment, such as

generator sets.

Our fuel management program

has allowed us to reduce Scope

1 (Direct) emissions, which has

remained steady since 2016.

Though our expansion activities

have also increased demand for

purchased electricity, this has

been incremental through the

years. In 2018, the increase has

only been 4.5%. We are hoping

to lessen our dependence on

purchased electricity by adding

solar generation to our La Mesa

Compound, and not just the

Maynilad Safety Center.

We continue to manage energy

intensity through our various

initiatives, including reducing

our pump usage during

off-peak hours and minimizing

our fuel consumption.

Maynilad’s “Green team,” composed

of at least two employees from

each division, the GHG inventory

management plan, update

meetings thrice a year, and

calculations and recommendations

in an annual report. Since 2009,

our internal audits for GHG

emissions and air pollutants have

been verified by an international

certification body. (103-3)



Biodiversity and Watershed ManagementWe at Maynilad aim to prevent the loss

of local biodiversity in order to sustain

healthy watersheds. We do this by

restoring forest cover and practicing

water conservation. We also ensure

that our facilities are designed to

be eco-friendly.

(103-1, 103-2)

Certain parcels of land in Quezon

City and Caloocan City, among other

areas, were declared as the La Mesa

Watershed Reservation through

Presidential Proclamation 1336

in 2007.

Maynilad operates the La Mesa

Treatment Plants 1 and 2 (LMTP1

& LMTP2), located in the La Mesa

Compound, which have a combined

design capacity of 2,400 million liters

per day. LMTP1 & LMTP2 receive and

treat the water coming from the Angat

and Ipo Watersheds. This constitutes

the first stage of water treatment

before distribution to our customers.

Maynilad’s new Safety Center is also

located within the La Mesa Compound.

This is mainly an office and training

facility, with limited environmental

impact from its operations. Maynilad

ensured that the construction had

minimal impact on the surrounding

environment; the newly installed solar

power system is a source of renewable

energy, lessening the Safety Center’s

dependence on power supplied by the

national grid. (304-2)

Maynilad facilities located in areas

under protected status include the

Sacred Heart Pump Station and the

Central Material Depot. Maynilad

is aware of the protected status of

the environment surrounding its

facilities and takes utmost care to

minimize any negative impact on

the natural environment and the

communities in the surrounding areas.

We maintain ISO certifications for

Quality Management, Environmental

Management, and Energy Management

System, among others, as par of our

commitment to global standards.

(304-1)



Plant for LifeMaynilad implements programs to

protect and restore biodiversity, not

just in the Ipo Watershed, but in

other areas where we operate.

The Ipo Watershed has a total land

area of 6,600 hectares. Although

smaller than the Angat and Umiray

Watersheds, the Ipo is vital to

our operations. Water from Angat

and Umiray flows through Ipo to

Maynilad’s La Mesa and Balara

treatment plants, before it is

distributed to the customers.

It is therefore vital that Ipo

Watershed be properly managed

and maintained.

Over the years, however, the

stability of Ipo has deteriorated

due to illegal logging activities and

the increasing human population

around and within the watershed.

The level of soil erosion in Ipo has

worsened, which contributes to the

increased turbidity of the various

river systems fed by the watershed.

Water turbidity directly affects

the quality of water that we will

distribute to our customers.

Therefore, in 2009, Maynilad

developed the Plant for Life

program to nurture and protect

the watershed. Plant for Life set

an initial goal of planting 40,000

native trees to cover 24 hectares

within the watershed every year.

In 2017, Maynilad tied the internal

Plant for Life program with the

Annual Million Tree Challenge

(AMTC) initiated by the MWSS

with its partner agencies. Since

then, Plant for Life has achieved

upwards of 100,000 trees planted

each year, even overshooting the

target by an additional 50,000

trees in 2018. Under the MTC,

Maynilad has also contributed

to the upkeep of Bantay Gubat

rangers tasked with protecting the

Company’s designated area within

Ipo watershed.

2018 Ipo Watershed Planting

53,150NO. OF SEEDLINGS PLANTED

FOR THE YEAR

VARIETIES:

NARRA, CUPANG, ACACIA, AMISAN, MADRE DE CACAO,

BIGNAY

31.9NO. OF HECTARES PLANTED

FOR THE YEAR

1,332TOTAL NO. OF VOLUNTEERS

FOR IPO

649OF WHOM ARE MAYNILAD

EMPLOYEES

PhP872,589BUDGET

169 (from 127)NO. OF BANTAY GUBAT

RANGERS SUPPORTED BY MAYNILAD (FROM JULY TO

DECEMBER 2018)

340.1CUMULATIVE NO. OF

HECTARES PLANTED IN IPO



Mangrove planting under Plant for Life

In 2012, Maynilad also incorporated

mangrove propagation into its Plant

for Life program. This enhancement to

the program is expected to contribute

to flood prevention. It is aligned

with Maynilad’s commitment to

rehabilitate Manila Bay and its

surrounding tributaries, and supportive

of the Supreme Court Mandamus for

Manila Bay.

The Plant for Life program has

progressively grown in scale. With the

addition of mangrove propagation,

Maynilad revised the Plant for Life

annual target to include 15,000

mangrove propagules and 50,000

seedlings in the Ipo Watershed.

Mangrove planting was planned for

various areas in the province of Cavite

City, Bacoor City, and the municipalities

of Novoleta and Rosario. Coverage has

since expanded to include Muntinlupa

in 2017, and Malabon in 2018.

Maynilad has also been tapped to

spearhead several mangrove-planting

activities in collaboration with the

DENR -Provincial Environment and

Natural Resources Offices (PENRO)

Cavite in 2019.

77,000*(rhizopora)

NO. OF PROPAGULES PLANTED

* 59,000 IN NOVOLETA AND KAWIT, CAVITE;

18,000 IN MALABON (DAMPALIT, MAYSILO,

MUZON)

PhP398,763.50BUDGET

2018 Mangrove Planting

15.4NO. OF HECTARES PLANTED

FOR THE YEAR

923TOTAL NO. OF VOLUNTEERS

FOR IPO



Evaluation of Plant for Life Program (413-1)

Members of the community and the

Municipal Fisheries and Aquatic

Resource Management Council

in Kawit, Cavite have reported an

increase in the availability of a

seashell, known locally as “bahong,”

in the rehabilitated mangrove

areas. This attests to a healthy

ecosystem in the mangrove areas.

Additionally, there is a wider

variety of fish now present in

the locality due to the restored

fish nesting and hatching areas.

Fishermen have reported that their

catch of crabs and shrimps has also

increased. According to Municipal

Agriculturist Ronaldo Lontoc,

approximately 5,000 informal

settler communities (ISFs) and the

fisherfolk of Kawit and Noveleta

benefit from the program. For

some, it has been a major source of

income and food for their families.

In Norzagaray, Maynilad’s Water

Supply Operations (WSO) group

regularly checks on water quality at

Ipo Dam. As a rule of thumb, areas

observed to have high turbidity

are prioritized for tree-planting

activities. Although Maynilad’s

designated area is less prone to

logging activities compared to

the other concessionaire’s area

of responsibility, the group also

conducted a bathymetry study

(i.e., water depth) of the soil

composition in 2018. (103-3)

A commissioned study by the

University of the Philippines-

Los Baños (UPLB) and Philippine

Agroforestry Education and

Research Network Inc. (PAFERN)

from May 2018 to May 2019 is set

to determine the effectiveness of

the Plant for Life Program. The

study will be conducted every five

years hence. (103-3)

Initial findings have indicated that

the survival rate of the planted

trees has averaged roughly 40%

from 2012 to 2017. The relatively

low survival rates of each

plantation site can be attributed

to the competition in the sites

in terms of: a) sunlight, due to IPO WATERSHED

PLANTING FROM

2012-2017:

TOTAL CARBON STOCK:

2,511.6 tonnes

TOTAL SEQUESTRATION:

9,209.2 tCO2e

See Table 2 on page 132 for data table on evaluation

MANGROVE PLANTING

FROM 2012-2016:

TOTAL CARBON STOCK:

1,157.55 tonnes

TOTAL SEQUESTRATION:

4,244.4 tCO2e

RESTORATION OF MARINE

ECOSYSTEMS

As of November 2018,

Municipal Fisheries

and Aquatic Resources

Management Council

(MFARMC) Chairman

Reynato Robles has

reported the resurfacing

of “bahong” in the area.

This phenomenon is

attributed to better

environmental conditions

brought about by the

Mangrove Planting Project,

which started in 2012.



the presence of the overtopping

canopy of the existing vegetation,

and b) nutrients and water in the

soil brought by the high

density vegetation.

Survival rate result may also

be accounted to the lack of

maintenance and protection

activities, hence the intensification

of Maynilad’s support for the

Bantay Gubat at Ipo watershed.

Future initiatives will be

geared toward improving

maintenance and protection.

Coastal Clean-Up Activities (304-2)

In order to have a more comprehensive

environmental enhancement program,

Maynilad has also included clean-up

activities to support biodiversity initiatives.

Aside from the major clean-up activities,

Maynilad also conducted regular coastal

cleanups in partnership with DENR and

LGU in its adopted mangrove planting site

in Sta. Isabel, Kawit Cavite.

Maynilad participated in five coastal clean-

up activities in 2018:

• Sucat-Buli River Cleanup.

In collaboration with the

Environmental Protection and

Natural Resources Office of

Muntinlupa, DPWH, and MMDA.

• Manila Bay Sunset Partnership

Cleanup. Maynilad hosted the

activity, which partner agencies

also participated in. Three trucks,

or 750 sacks of garbage, were

collected during the event.

• Save Laguna Lake Cleanup. This

was hosted by Ayala-Alabang

Village Association (AAVA) with

Maynilad, in partnership with

Muntinlupa City Government.

• International Coastal Cleanup (ICC).

Maynilad deployed volunteers to

four sites for the ICC: Las Piñas-

Parañaque Critical Habitat and

Ecotourism Area, Manila Bay beside

the US Embassy, Malabon, and

Navotas. Maynilad also provided

hydration and wash areas in

Polytechnic University of the

Philippines in Manila and Brgy.

Tanza Marine Tree Park in Navotas.

• Plant for Life: Muntinlupa Tree-

Growing Project and Cleanup.

Maynilad, in collaboration with

the DENR and the Muntinlupa LGU,

through the PENRO-ESC and Lake

Management Office, and

other groups.




We do our best to sustain our water resources as these are critical to the local water supply. We monitor our consumption, strictly adhering to the pre-determined allocation in our concession agreement with MWSS. By being a reliable and responsible water provider, we contribute to the environmental, economic, and social health of local communities. (103-1)

Ongoing network upgrades include

new sensors and additional flow

meters which, together with

a new metering scheme, has

allowed us to better measure our

water consumption in 2018. To

strengthen our protection of water

bodies, 30% of the capital budget

for the year went to wastewater

management programs, including

two newly operational reclamation

facilities. (103-2)

Water Supply Operations (WSO)

oversees our water consumption

and management. Meanwhile

our Wastewater Management

Division (WMD) is tasked with

the management of our sewer

network and sanitation services,

while ensuring compliance with

wastewater effluent quality

standards in all catchment areas.

(103-2)

Our performance, service standards,

and rates are subject to audits

under the concession agreement

with MWSS. Our activities in the

Angat-Ipo-La Mesa watershed

and Laguna Lake are overseen

by the National Water Resources

Board (NWRB) and the Laguna

Lake Development Authority,

respectively. (103-3)



We work closely with MWSS and

the national government in the

development of new water sources,

even as we protect the resources

already in use. To that end, we

support the development of the

New Centennial Water Source-

Kaliwa Dam Project (NCWS-KDP),

with its projected discharge

capacity of 600 MLD, in General

Nakar and Infanta, Quezon.

The project is expected to have

an expanded capacity of 2,400

MLD once a conveyance pipe is

connected to Kanan River. We also

welcome the opportunity to be

part of a new Technical Working

Group to develop the water supply

masterplan for both east and

west zones. (103-2)

Water Consumption and ProductionWith the rapid increase in

population of Metro Manila, the

demand for water supply has also

gone up. Currently, the metro

draws 97% of its raw supply from

the Umiray-Angat-Ipo system in

Norzagaray, Bulacan, which has

been the case for decades. (MWSS

gets 4,000 MLD of water supply,

60% of which goes to Maynilad.)

The remaining 3% of raw water

supply is being sourced from the

Laguna Lake. Primarily, Maynilad

draws from the Umiray-Angat-Ipo

system, with Laguna de Bay as an

additional water source. In the

event of a depletion in dam levels,

Maynilad makes use of water

reservoirs in different locations,

coupled with pump stations, to

continue supplying the West Zone.

Water Withdrawal by Source(in MLD)

2016 2017 2018

Ipo watershed

(Angat Dam)

2,359.6

2,355.00

2,318.72

Minimal impact on the watershed, as

Angat Dam can store up to 850 million

cubic meters, and Ipo Dam can store up

to 5.9 million cubic meters. Together, they

can supply 4 million cubic meters per day.

850 million cubic meters

5.9 million cubic meters

4 million cubic meters

(303-1, 303-2)



Water Withdrawal by Source(in MLD)

2016 2017 2018

Minimal impact as Laguna Lake’s total

volume is 3.2 billion cubic meters;

however, water quality is closely

monitored given nearby informal settler

communities and chemical industries.

147

195

159.25

Laguna Lake

watershed

(Laguna de Bay)

Water Withdrawn(Annual Total in million liters)

2015 2016 2017 2018

Maynilad abides by extraction limits set by

MWSS and LLDA to preserve the integrity

of these water bodies.

846,536.51

907,496.80

921,064.22

IPO and

LAGUNA LAKE (groundwater not

included)

920,443.61

Maynilad aims to provide

uninterrupted water supply but has

safeguards in place in the event

of unforeseen circumstances. Such

was the case in August 2018 when

torrential rains brought about

soil erosion at Ipo watershed,

which resulted in uncommonly

high turbidity (i.e, increase in

sedimentation) in the raw water.

abiding by

extraction limits

✓

Maynilad prefers to use surface water; some deepwells were put on standby status and used only for back-up. The reduction in groundwater extraction is because only two deepwells were active and utilized in 2018.

(303-1, 303-2)

(303-1, 303-2)



Normally, the turbidity level would

be 10 to 15 NTU (nephelometric

turbidity units), but at this time,

turbidity levels reached as high as

866 NTU.

Maynilad temporarily reduced

water production at the La Mesa

Treatment Plants 1 & 2. Maynilad

then maximized the limited supply

by initiating a rotational service

interruption in Bulacan, Caloocan,

Malabon, Navotas, Valenzuela,

Quezon City, Manila, Makati, Pasay,

Parañaque, Las Piñas, and Cavite.

The rotational service interruptions

lasted a total of three days. During

those few days, to augment the

water supply, Maynilad also

deployed mobile water tankers to

deliver potable water to customers

in affected areas.

Maynilad completed the upgrade

of one sedimentation basin, which

was kitted out with fitted tube

settlers and sludge scrapers, at

La Mesa Treatment Plant 1 in

July 2018. Upgrades to the other

sedimentation basins to improve

treatment capacity, particularly to

address high turbidity in the raw

water, are ongoing and set to be

completed by 2020. This incident

merely validated the steps that

Maynilad is already taking to

address this issue.

Moreover, screening of raw water

intake, also part of the initial

filtration process, allowed Maynilad

to filter out 130,627.5 kilograms

of grit in 2018. This not only

prevented damage to equipment

but also improved water quality.

Effluents Management

In 2018, Maynilad was able to

commission two new large water

reclamation facilities (WRF)—the

46 MLD Pasay WRF and the 76

MLD Parañaque WRF. Both are

undergoing process proving.

Not only did this result in improved

operational efficiency, but also in

broader environmental benefits.

With these two facilities now

operational, Maynilad was able to

increase its sewer service coverage

by four percentage points from

15.5% in 2017 to 20.4% by the end

of 2018.

The Pasay WRF, situated at

Malibay with a capacity of 46.6

MLD, was operational as of

December 19, 2018. The facility

is fully automated and designed

to treat domestic wastewater

from some 288,000 customers of

Pasay and Makati City. The Pasay

WRF employs the Conventional

Activated Sludge process, a



biological treatment technology,

to treat the by-products of the

wastewater treatment.

Additionally, the facility

utilizes ultraviolet lamps in the

disinfection process, minimizing

the chemical residuals in the

effluent discharged to Maricaban

Creek. Located at the center of a

residential area, it is equipped with

silent-type blowers to comply with

work environment standards, and a

biological odor treatment system

to meet air quality standards.

After its commissioning, the Pasay

WRF underwent process proving

and all equipment were tested

for performance. The Parañaque

WRF, located at Brgy. San Dionisio,

is the first of four stages of

planned wastewater projects in

the Parañaque catchment. It is

by far the largest wastewater

treatment plant in the West Zone

with a design capacity of 76 MLD.

It is also the first large-scale

wastewater treatment plant in the

country that is compliant with the

latest effluent standard mandated

by the DENR under DAO 2016-08.

The facility is set to be inaugurated

in January 2019.

A total of 19 WRFs were able

to renew their IMS Certificates.

Maynilad was also able to acquire

certification for the Alabang-

Zapote Septage Treatment Plant,

for a total of 20 IMS-certified

wastewater facilities in 2018.

Waste Management Highlights

21.24%

SANITATION SERVICE COVERAGE, EXCEEDING

THE 20% TARGET

60.18%DESLUDGING

ACCEPTANCE RATE, IMPROVING ON THE

60% TARGET

4,441

NEW SERVICE CONNECTIONS AGAINST

THE 4,400 TARGET

93.2%

WASTEWATER CAPTURE RATE AGAINST THE 90%

TARGET

3.77CUSTOMER

SATISFACTION RATING (WITH 4 AS THE

HIGHEST SCORE)



Pollution load abatement(in kilograms)

2015 2016 2017 2018

Oil and Grease 72,322 42,178 51,851.28 221,140

Biological Oxygen Demand 1,829,003 1,731,943 2,092,824 2,540,088

Chemical Oxygen Demand 4,820,669 3,171,521 3,209,491 3,632,810

Total Suspended Solids 1,794,646 1,600,121 1,240,935 1,850,171

Maynilad complies with the

environmental laws related to

Wastewater Effluent Standards

as mandated by the Department

of Environment and Natural

Resources (DENR) and the Laguna

Lake Development Authority

(LLDA). Maynilad has assigned

DENR- and LLDA-accredited

Pollution Control Officers (PCO)

per wastewater treatment facility.

The PCO regularly submits a Self-

Monitoring Report (SMR) to the

respective government agencies.

This year, Maynilad is 100%

compliant to the current standards

based on LLDA samplings. (103-3)

This year, there was a strong

government push to accelerate

Manila Bay clean-up initiatives of

the government. Recognizing the

importance of rehabilitating and

restoring Manila Bay, Maynilad

focused its resources and activities

to support government efforts.

As part of its commitment to

the Manila Bay Rehabilitation,

Maynilad fast-tracked sewer

service connections in Manila and

prioritized desludging of septic

tanks in Manila.

Last 2016, DENR released a new

effluent standard, DAO 2016-

08 which includes a regulation

on biological nutrient removal.

Maynilad prepared and submitted

an action plan in order to ensure

compliance with the new standard.

The submission of the plan

automatically grants Maynilad a

five-year grace period to retrofit

existing facilities. Efforts are

underway to ensure that

Maynilad’s facilities meet the

DENR regulations. (103-2)

Maynilad’s initiatives to improve

wastewater management have

made it possible for the community

to reduce pollution load in

receiving water bodies thus:



Treated and discharged wastewater is dependent on the billed volume

of the catchment area. In 2018, Maynilad’s capture rate amounted to

93.23%, an uptick from 91% from 2017. Maynilad has exceeded the target

90% capture rate since 2016.

Water discharge(in m³)

Effluent from Maynilad WRFs passed

the DENR effluent standards: under 50

mg/l for Biochemical Oxygen Demand;

under 100 mg/l for Chemical Oxygen

Demand; under 100 mg/l for Total

Suspended Solids; under 5 mg/l for

oil and grease; and under 10,000 MPN

per 100 ml for Total Coliform.

All of Maynilad’s freshwater discharge

sites (rivers, creeks, etc.) are classified

C for water quality, which means they

have been adequately treated and can

support the propagation and growth

of fish and other aquatic resources.

Meanwhile, Manila Bay is classified

SB, which means it can be used as

a spawning area for milkfish and

other similar species. Under DENR

Administrative Order No. 34, series

of 1990, the latter classification is

also considered “suitable” for public

bathing, swimming, and skin diving.

2016 2017 2018

57,981,304

59,490,425

63,998,752

(306-1)

See page 133 for data table on Water Discharge




To achieve our water service ambition, we follow a strategic business plan that underscores timely project delivery, efficient supply chain management, asset management, and prudent and efficient spending on sustainable water infrastructure.

Continuous improvements are

being made in terms of information

technology and enterprise software

solutions. This includes workflow

management and automation.

We utilize technology not only to

perform digitized record-keeping

and customer advisories, but also

the diagnostics and root cause

analysis that inform our

decision-making.

At the Head Office Central Control

Room (CCR), the Central Control

and Monitoring (CCM) engineers

can now forecast the water

level in the Bagbag Reservoir to

determine if there will be enough

water supply throughout the day

to address the demand on the

network. The intent is to minimize

emergency service interruptions

due to externalities that could



affect operations, such as

weather disturbances and

insufficient supply.

Remote monitoring has become

a norm, with installation of CCTV

cameras in all Maynilad facilities,

and GPS tracking devices in

company vehicles. Technology

has allowed Maynilad to be

more proactive yet strategic in

creating solutions. Inefficiencies

are being cut, cross-functional

and cross-divisional collaboration

encouraged, and in some cases,

functions are integrated.

Maynilad currently holds eight ISO certifications for multiple sites.

Company-wide certifications include the following:

• ISO 9001:2015: Quality Management Systems

• ISO 14001: 2015: Environmental Management Systems

• OHSAS 18001:2007 Occupational Health and Safety Management Systems

In 2018, proof that the Company processes meet stringent global standards, we also passed the recertification, with expansion of scope on all three certifications.

Our IT Division recently earned its ISO/IEC 20000-1:2011; information Technology Service Management System. We upgraded our storage capacity to meet additional capacity requirements. Ongoing consultations and knowledge-sharing with technical experts is being managed.

Company-wide IMS expandedOther ISO certifications we currently hold are the following:

• ISO 14064:2006 Greenhouse Gases Quantification and Reporting using company-wide data

• ISO/IEC 17025: 2005 Laboratory Quality Management Systems for the Central Laboratory and the Meter Laboratory

• ISO 50001:2011 Energy Management Systems covering eight sites

• ISO 22301:2012: Business Continuity Management Systems (BCMS) covering eight sites

The ISO certification for BCMS was conferred on Maynilad in 2018, validating that the Company has an effective system in ensuring the sustained delivery and restoration of water service to customers even when there are disruptive incidents such as emergencies and calamity situations.



Asset Management

Retrofitting of aging assets is ongoing, with aging facilities adhering to an asset management plan, including the La Mesa Treatment Plants 1 & 2 at the La Mesa Compound.

To get the maximum value out of

Maynilad’s assets through proper

asset life-cycle management, the

Integrated Asset Management

(IAM) Division now utilizes a

Computerized Maintenance

Management System (CMMS). The

CMMS intends to streamline the

work processes within Maynilad,

as well as automate scheduled

Preventive Maintenance Activities

and Budget Planning. With this

system in place, the organization

will have a view in asset

maintenance history, life cycle

cost analysis, and maintenance

performance indicators (e.g., cycle

time, reworks, etc.).

We are now also applying a

Condition-based Maintenance

(CBM) approach as an alternative

to the traditional preventive

maintenance strategy. CBM

involves the assessment of

equipment health parameters so

that maintenance decisions will be

based on the equipment’s actual

condition. These health parameters

include running temperature,

vibration, running voltage,

current draw, and power

consumption. Maintenance

decisions may rest on whether

certain limits of these parameters

are reached, and/or when the trend

of these parameters suggests

a developing failure.

In essence, CBM program attempts

to “catch” a developing problem

before it leads to a complete

functional failure. This is done

through the use of specialized

monitoring instruments, or

through simple visual assessment

of the age or noise level of the

equipment. This method may

potentially reduce maintenance

activities (i.e., minimize potentially

unnecessary shutdowns).



Controls Assurance & Risk Management

In September 2018, the Enterprise Risk Management and Internal Audit (ERMIA), was officially formed as a division. It has the twin tasks of:

To achieve this, ERMIA embarked

on the following:

• Creation of its Mission/Vision.

• Identification of the

auditable entities as part of

the Maynilad Audit Universe,

which became the basis of

the 2019 Audit Plan.

• Development of standard

Audit Programs, which will

be used not only by ERMIA

but also by the different

divisions for their controls

self-assessments.

• Implementation of Controls

Issue Classification

and Controls Assurance

Rating System.

• Laying down a five-year

Roadmap for the NextGen

Internal Audit with the

end in mind to meet the

International Standards in

Professional Practice for

Internal Audit (ISPPIA).

• A deep-dive review and

analysis of the top 10

business risks confronting

the Company and,

subsequently, coordinated

and consolidated the

corresponding action plans

from the different divisions

to mitigate these risks.

• Intensified focus on

competency and professional

growth through internal and

external training workshops,

including professional

certifications for ERMIAns.

(102-15)

1. providing assurance services, whether internal controls are in place and are operating as intended; and

2. assisting the different divisions in identifying and mitigating risks.



In a dynamic business environment, Maynilad strives to be attuned to the

uncertainties that may affect our business.

Identified Risks(102-15)

Mitigation Measures(102-11)

REGULATORY COMPLIANCERegulatory changes and requirements with attendant penalties and fines

Maynilad’s Governance Relations Unit is on

top of regulatory risk mitigation. The group

has made many representations to various

national agencies and local governments

through courtesy visits, continuous dialogue, and

partnerships in terms of water and wastewater

training, and social responsibility initiatives.

WATER SOURCE/SECURITYNew and adequate water resources needed to assure quality and reliability of water supply and uninterrupted service

The Company has an alternative water source in

Laguna Lake and is beefing up water treatment

capabilities to increase water production.

We are currently working with the MWSS in the

development of the Kaliwa Dam as a potential

alternative water source. We are also involved

in the TWG to develop a new national water

supply masterplan.

PROJECT DELIVERYTimely completion of scheduled projects to meet operational goals

Maynilad practices risk-based project

management. Each business unit monitors

project executions and milestones to ensure

their timely completion.

ASSET/EQUIPMENTNatural deterioration and aging of assets, and disruptions to the business due to breakdowns of equipment

Maynilad’s IAM Department focuses on each

phase of the asset life cycle: asset creation, asset

maintenance and disposal, risk reliability and

maintenance execution, and asset information.

Each business unit periodically conducts an

Asset Condition and Performance Review and

is currently contributing to the Asset Registry

(asset data, information, maintenance histories,

condition, and performance) under the Asset

Management System. This will aid IAMD in

the establishment of an Asset Reliability and

Maintenance Program.

IT INFRASTRUCTUREReliance on Information Technology systems, benchmarking, and the onboarding of IT experts

The IT Division recently earned its ISO/

IEC 20000-1:2011: Information Technology

Service Management System. We upgraded our

storage capacity to meet additional capacity

requirements. Ongoing consultations and

knowledge-sharing with technical experts is

being managed.



Identified Risks(102-15)

Mitigation Measures(102-11)

CYBERSECURITY/DATA PRIVACYInsufficient infrastructure and processes to manage cyber threats and data protection, which may significantly disrupt core operations and/or the Company’s reputation.

Maynilad adheres to the Data Privacy Act of 2012

and has appointed a Data Privacy Officer. The

Company undertook an awareness campaign

on IT Security and data privacy, including

discussions on external intrusions (phishing,

harmful emails, etc.). Other preventive measures

include a Computer Security Incident Response

Plan; updated anti-virus/anti-malware/e-mail

spam filters, and security patch/firmware;

Intrusion Prevention System/Intrusion Detection

System for distributed denial of service (DDoS)

attacks; and disablement of unnecessary

application services and network protocols to

minimize vulnerability; among others.

HEALTH AND SAFETYOccupational hazards, and potential failure of third-party suppliers to abide by Maynilad standards leading to accidents

Several programs mitigate hazards and promote

safety precautions in the workplace. Maynilad is

also gearing up for a company-wide campaign

on DOLE Department Order No. 198-18 or the

Implementing Rules and Regulations of the

Occupational Safety and Health Law (RA 11058).

The IEC sessions are expected to conclude in the

first half of 2019.

OUTSOURCINGReliability and quality of third-party suppliers

Maynilad continuously sources and accredits new

contractors and service providers. Training is part

of the TOR, and structured collaboration among

a cross-functional team is enhanced.

The organization regularly monitors

performance evaluations.

SOURCINGAssuring quality and timely delivery of materials

Maynilad also continuously sources and accredits

additional suppliers (local and foreign). We also

implement long-term contracting of materials,

and review and monitor projected materials

requirements on a quarterly basis.

PEOPLE MANAGEMENTMeeting turnover targets and maintaining a proficient talent pool

We ensure that our people are adequately

compensated, and continuously supported and

empowered toward professional advancement.

Our people management is benchmarked against

international standards and best practices, and is

continuously enhanced.



Organizational Capability and People Development

We develop our in-house talents because we recognize that our

people create value for Maynilad. At the core of our business are the

talented individuals who safeguard the vision of the Company and

realize Maynilad’s mission to aid Filipinos in leading healthier, more

comfortable lives, given access to the most basic of necessities: safe

and sustainable water.



Corporate Governance

Maynilad is committed to enhancing our corporate governance practices so that responsibilities remain clearly delineated, and we continue to be both accountable and transparent to our stakeholders. Our relationship with our stakeholders is built on a foundation of trust, and our corporate structure is designed to safeguard that trust.

Moreover, we manage our human capital through effective Corporate

Governance. We spend considerable resources on good water

management, which is our core service, but we cannot do so without also

investing in our people management.

Board of DirectorsThe Maynilad Board of Directors

(BOD or “the Board”) is responsible

for upholding high ethical

standards, and the continuous

practice of fairness, transparency,

and accountability within the

company. They are also responsible

for the alignment of Maynilad’s

business practices with our vision,

mission, and values. They guide,

monitor, and evaluate management

performance and ensure that the

company acts in the best interests

of the shareholders and the

public good.

The Board is composed of nine

members and meets at least six

times a year. Board members are

either executives in Maynilad,

or non-executive members and

independent of the Company. The

role of Chairman of the Board is

separate from that of the Chief

Executive Officer. (102-22, 102-23)



MANUEL V. PANGILINANCHAIRMAN OF THE BOARD

ISIDRO A. CONSUNJIVICE CHAIRMAN

RAMONCITO S. FERNANDEZDIRECTOR

RANDOLPH T. ESTRELLADODIRECTOR

JOSE MARIA K. LIMDIRECTOR

JORGE A. CONSUNJIDIRECTOR

MASATO HIRAOKADIRECTOR

SEIJIRO CHIBADIRECTOR

MARILYN A. VICTORIO-AQUINODIRECTOR



Governing committees (102-18)

The Board of Directors implement their responsibilities within

the framework of governing committees.

The Executive Committee acts by majority vote of its members

and may execute business management and corporate affairs

decisions in a restricted capacity when the Board is not in

session and only if a resolution is needed urgently.

The Risk and Audit Committee provides independent reviews

to help in the strategic development of policies on governance,

risk management, financial reporting and audits, information

technology, and security.

The Compensation and Remuneration Committee determines

the most appropriate and equitable remuneration of corporate

officers and directors.

The Nomination Committee vets all nominees to the Board

and/or all applicants to company positions in need of

Board approval. At least three members are required to

review and evaluate nominees to ensure fair, valid, and

effective appointments. (102-24)

Avoidance of Conflicts of Interest (102-25)

Any person with a reason for

engagement in a competing

business with or against Maynilad

or any of its subsidiaries or

affiliates is considered unqualified

to be a member of the Board

of Directors.

The Board adopts guidelines on

the number of directorships that

its members can hold in stock and

non-stock corporations, taking into

consideration the capacity of

a director to diligently and

efficiently perform his or her duties

and responsibilities.

The CEO and other executives

may be covered by a lower

indicative limit for membership

in other Boards. This also applies

to independent or non-executive

directors serving as full-time

executives in other corporations.



Board’s Role in SustainabilityMaynilad, as a subsidiary of

Metro Pacific Investments

Corporation (MPIC), is subject

to the environment, social, and

governance (ESG) strategy of

the Group. The commitment

to disclose economic and ESG

information in accordance with

globally recognized standards

of reporting on sustainability is

a direction cascaded from the

mother company. Maynilad reports

pertinent information on our

sustainability performance to the

MPIC Head Office Sustainability

Working Team.

Maynilad’s Annual Sustainability

Report is subject to the review

of the Technical Working Group,

composed of key officers from the

management team who answer to

the Board of Directors. (102-32)

Management TeamOur management team is composed of professionals who are experts in

their field. Responsibilities are assigned to the Management Team by the

Board of Directors.

RAMONCITO S. FERNANDEZPRESIDENT AND

CHIEF EXECUTIVE OFFICER

RANDOLPH T. ESTRELLADO

CHIEF OPERATING OFFICER

RICARDO F. DE LOS REYES

CHIEF FINANCIAL OFFICER



CHRISTOPHER J. LICHAUCOHEAD, CUSTOMER EXPERIENCE

AND RETAIL OPERATIONS

JOHN PATRICK C. GREGORIO

HEAD, COMMERCIAL AND MARKETING

LOURDES MARIVIC P. ESPIRITUHEAD, LEGAL AND

REGULATORY AFFAIRS

FRANCISCO C. CASTILLOHEAD, INFORMATION

TECHNOLOGY SERVICES

MARTIN B. DE GUZMAN

HEAD, HUMAN RESOURCES

ANTONIO F. GARCIA

HEAD, WASTEWATER MANAGEMENT

IRINEO L. DIMAANOHEAD, CENTRAL

NON-REVENUE WATER

RONALDO C. PADUA

HEAD, WATER SUPPLY OPERATIONS

YOLANDA C. LUCAS

HEAD, PROGRAM MANAGEMENT



ARTURO CELSO D. BARANDA

HEAD, SUPPLY CHAIN MANAGEMENT

MARCOS D. DE JESUS

HEAD, TECHNICAL SERVICES

ERIC J. MONTESHEAD, INTEGRATED ASSET

MANAGEMENT

ROEL S. ESPIRITUHEAD, CORPORATE QUALITY,

ENVIRONMENT, SAFETY AND HEALTH

JOSE RIZAL O. BATILESHEAD, ENTERPRISE RISK MANAGEMENT

AND INTERNAL AUDIT (ERMIA)



The Policy on Gifts guides

employees on the appropriate

behavior when giving or accepting

of gifts in a corporate setting.

The Employee Handbook and

Standards of Discipline prescribes

normative behavior in dealing with

co-employees, customers, vendors,

and other stakeholders, and

provides penalties for infractions

committed against the standards

and guidelines.

The Whistleblowing Policy, made

effective in 2018, provides a secure

channel by which individuals can

raise their legitimate concerns

to the Corporate Governance

Office (CGO), manned by the

Chief Legal Officer. Upon receipt

of the complaint or report, the

CGO will determine the appropriate

investigation procedure to

be taken.

All disclosures made under the

Whistleblowing Policy will be

treated with utmost confidence.

The identity of whistleblowers

will also be protected insofar

as the Company is able, but if

external legal action is taken, this

protection may not be possible.

Corporate Policies & Guidelines (102-16)

Maynilad is committed to the

highest standards of transparency

and accountability. Employees are

expected to conduct themselves

with honestly, integrity, and

impartiality, and uphold Maynilad’s

Core Values. It is the responsibility

of employees to ensure that

there will be no occurrence of

any inappropriate behavior that

may compromise the interests of

shareholders, customers, and

the public, nor undermine

Maynilad’s commitment to

corporate governance.

Code of Business Ethics ensures

that employees comply with all

laws and regulations governing

our business and help uphold the

brand and reputation of Maynilad

as a fair and honest organization.

It is the duty of everyone at

Maynilad to report any violation on

our Code of Business Ethics.

(102-17)



Maynilad has a Data Privacy

Manual and a General Privacy

Policy (pursuant to the Data Privacy

Act of 2012), and has appointed

a Data Privacy Officer. However,

Maynilad also recognizes the

importance of timely disclosures,

particularly to our stakeholders.

We gain the trust of our

stakeholders by practicing

transparency, particularly on

matters that will impact them.

Material information about

Maynilad is reported to MPIC,

DMCI, Marubeni, MWSS, and

other shareholders. We also

publish an Annual Report and

Sustainability Report. Apart from

our company newsletter, Ripples,

we also periodically come out with

special notices and press releases,

which may be viewed and/or

downloaded from our website,

www.mayniladwater.com.ph.

Additionally, whistleblowers are

assured of protection against

reprisals or disciplinary action,

even if the reports turn out to be

unsubstantiated. The Company

also reserves the right to take

appropriate action against the

employees who threaten or

initiate retaliation against the

whistleblower. (102-17)

The Employee’s Code of Conduct

articulates the anti-corruption

policies and procedures to

the employees. It is discussed

during the orientation of

all new employees. In 2018,

as is customary, 100% of

Maynilad’s employees received

this orientation.



Employment

Maynilad seeks to build a sustainable business that creates value not only for the customers, but also for the employees. To us, inclusive growth means that as the business expands, it allows for more opportunities that benefit more people: additional jobs, extended learning for our employees, industry-wide partnerships, and more customers who will benefit from improved services. (103-1)

Good people management is

key to achieving our goals. Our

Human Resources (HR) Division is

responsible for meeting workforce

requirements. Maynilad’s Workforce

Planning Committee, a cross-

functional team composed of

senior-level managers from the

different divisions, also works

with HR in reviewing major

organizational restructuring

activities that could impact on

organizational efficiencies. Both

teams, using the IMS Operational

Procedure for Organization

Planning and Design, ensure that

the activities that are critical to our

business objectives are properly

planned and carried out. (103-2)

We assess the impact of specific

actions on operational efficiency

and track our performance through

a corporate scorecard. In keeping

with globally accepted industry

standards, we measure employee

productivity in terms of the

ratio of the number of regular

personnel per one thousand water

service connections. Our goal is to

maintain a ratio of 1.7 personnel

per 1,000 connections. In 2018,

our workforce productivity was 1.7.

(103-3)

We provide more value for the

customer by raising our level of

service while maintaining the

essential head count. From 2007

to 2017, our workforce vis-à-vis

service connections has been

halved from 3.3 to 1.61. Though

the number of service connections

has increased through the

years, we are able to serve more

customers with the existing head



Employment Type by Gender

2018 Workforce Statistics

Male Female

Total Number of Regular Employees

2,125

Total Number of Probationary Employees

79

Total Number of Project-based Employees

299

25.08% 36.71% 21.07%

74.92% 63.29% 78.93%

TOTAL WORKFORCE (102-8)(Regular and Project-based)2,503

count due to automation and

capability-building. In 2018, a

slight uptick in personnel, due to

the intensification of wastewater

services and the manning of new

facilities, has allowed Maynilad to

deliver on its service commitments

without undue stress on personnel.

Maynilad abides by the 40-hour

work week. For jobs that are

done on a shift basis, a worker

may render a maximum of two

consecutive shifts at eight hours

per shift. As mandated by law,

a worker cannot render two

consecutive 12-hour shifts.



Workforce Diversity

By Gender and Position

Male Female

Senior

Management 47

228

234

1,369

1,710

380

342Middle

Management

Supervisors

Rank & File

24

114

146

341

By Age

< 30 years old 30-50 years old > 50 years old

Senior

Management36

9

80

597

Middle

Management

Supervisors

Rank & File

35

251

228

82

72

879 234

71

= 50 male = 50 female

= 50 employees

(405-1)



New Employee Hires & Employee Turnover

New Employee Hires By Age Group and Gender

Male Female

< 30 years old

30-50 years old

> 50 years old

Turnover By Age Group and Gender

Male Female

< 30 years old

30-50 years old

> 50 years old

= 2 male = 2 female

48 30

29 5

2

= 2 male = 2 female

27 17

24 13

1 15.17%HIRING RATE

3.77%2018 TURNOVER RATE



Maynilad is an equal-opportunity

company, and employees

maintain a culture of respect and

professional courtesy. (103-1)

There were no reported incidents

of discrimination in 2018.

(406-1, 103-3) Since employees

feel comfortable and valued at

work, our absenteeism rate is

only 7%. Anecdotal data based on

personnel interviews indicate that

Maynilad employees elect to stay

because their personal values align

with company values.

Maynilad’s hiring policy is to be

inclusive. Applicants are evaluated

based on their qualifications,

without discrimination in terms

of national origin, ethnicity, faith,

gender and orientation, age,

or disability. (103-1)(401-1)

(401-1)



Parental Leave(fully paid)

Maternity (60-78 days)

Paternity (7 days)

Solo Parent (7 days)

Number of employees who took parental leave

28

73

19

Maynilad acknowledges that

the industry veers toward male

engineers and field workers. It has

come to the attention of Human

Resources that there may be a

need to be more proactive in terms

of hiring female engineers and

field workers.

We source candidates through

multiple channels, including

through third-party vendors.

Our website and social media

accounts advertise job openings

to a wide demographic. These

job advertisements are neutral,

with no stated preference for

male or female applicants. The

ads also feature both female and

male models to negate gender-

stereotyping. In compliance

with labor law, minimum age

requirement is 18. (103-2)

Maynilad also maintains a six-

month Cadet Engineer Program,

which is a combination of

classroom studies and on-the-job

training. Potential hires undergo a

15-week internship program

where they experience working

in different divisions. Fifteen

engineering graduates from

different universities (Batch 12)

completed the program in 2018.

All new hires undergo a six-month

probationary period, after which

they are given regular status based

on performance merit.

As part of our retention strategy,

we provide competitive salaries

and benefits to our employees. We

seek to be fair and just in terms of

compensation, and so the standard

entry-level wage, which is above

the local minimum wage, is the

same for men and women.

We provide the benefits required

by the law, including paid parental

leave. Our retention rate for

parents who availed of parental

leave is 100%. Other regular

benefits include vacation leave,

sick leave, medical reimbursement,

and an annual medical check-up

for employees, among others.

[See following chapter on

Occupational Safety and Health.]

Maynilad tracks individual and

group performance through

a Performance Planning and

Appraisal System, which allows

for systematic and objective

performance evaluations on

which to base incentives, rewards,

promotions, and training and

skills development. In 2018,

100% of employees in Maynilad

received performance reviews.

Post-evaluation, the employees

were mentored by their direct

supervisors on meeting set targets.

(103-3)

Number of employees who returned to work after parental leave

28

73

19

Return to work rate (%)

100%

100%

100%

Number still employed one year after their return from parental leave

28

73

19

Retention rate (%)

100%

100%

100%

(401-2)



Employee Training & EducationWe invest in the future by

providing our employees and

workers with the skills they need

to be effective in carrying out

their tasks and responsibilities.

In keeping with our Training

Policy, the Talent Management

Department of our HR Division

provides relevant employee

training and development. (103-1)

Training programs are selected

and implemented based on HR’s

Training Needs Analysis every year.

The HR competency framework

identifies, enterprise-wide, the

required skill sets, knowledge,

and abilities per role under each

division/functional category. The

division/department heads identify

the gaps to meet the competency

requirements, including individual

needs of employees. (103-2)

The superior/division head who

nominates an employee for

training is obliged to discuss the

performance of the employee.

After the training period, attendees

of workshops are evaluated in

terms of relevance of training and

the improvement in presentation

skills. The effectiveness of trainers

in developing training materials

and cascading the information/new

skill set is also evaluated. (103-3)

Average Hours of Training per Year per Employeeby Gender

Total training hours

49,446.00

Male Female

52,773.00

72,775.50

2016

2017

2018

20,280.50

17,835.00

28,760.5

Average training hours

25.29

33.30

28.33

29.05

38.75

46.02

2016

2017

2018

(404-1)



Outside internal training sessions,

Maynilad employees also have

a chance to attend conferences

here and abroad. For 2018, our

employees participated in the

Indo Water Expo & Forum 2018,

Midyear National Technical

Conference, and the Philippine

Institute of Civil Engineers

(PICE) Bulacan Chapter National

Convention. The conferences

expose employees to new skills

and applicable knowledge, serving

as venues for the exchange of

industry best practices. (404-2)

Teaching opportunities are also

available to employees who are

often invited to deliver a talk

during industry conferences

or share their expertise at

the Maynilad Water Academy.

Teaching outside is also a learning

opportunity in terms of imparting

technical knowledge and applying

newfound capabilities.

Collective Bargaining AgreementMaynilad upholds the freedom

of association and collective

bargaining agreement (CBA).

Maynilad’s management and two

union groups maintain an amicable

relationship through continuous

dialogue. (103-1)

The rank and file are represented

by the Maynilad Water and

Sewerage Union-Philippine Trade

and General Workers Organization

(MWSU-PTGWO), whereas the

supervisory employees are

represented by the Maynilad Water

Supervisors’ Association (MWSA).

(103-2)

Maynilad and MWSU-PTGWO

concluded negotiations and inked

a renewed agreement in December

2018. Meanwhile, negotiations

will reopen between Maynilad and

MWSA in 2019. CBA negotiations

occur twice, for the initial three

years and the latter two years, for

both unions. (103-3)

Average Hours of Training per Year per Employeeby Position (404-1)

Total training hours

201616,423.50

Senior Management

Middle Management

Supervisors

Rank and File

34,491.50

14,962.50

3,849.00

201716,343.00

40,162.00

17,403.00

2,185.00

201826,246.5

48,485.5

22,044

4,760

Average training hours

66.36

201649.22

201753.71

67.04

201876.74

127.59

40.96

23.53

33.62

42.90

28.26

12.89



Maynilad has renewed

its standard accreditation

for effective management

from Investors in

People (IiP), a globally

recognized institution

that helps organizations

assess and improve

their leadership and

management practices.

Maynilad’s leadership

and management

effectiveness were

assessed against the IiP

Standard’s nine indicators

Maynilad wins Investors in People accreditation anew

in 2017. The Company

scored significantly high

on all of the indicators,

even surpassing the

industry average.

The 2018 review,

conducted by a team

of auditors, through

a dialogue with top

management, determined

that the organization

has maintained the IiP

standard. Recertification

is set for 2020.

Employees who will be separated from the company due to authorized

cause(s) are given 30 days’ notice prior to actual separation as mandated

in the Philippine Labor Code. This provision is not specified in the CBA.

(102-41, 402-1)

REPORTING PERIOD

MALE FEMALE TOTAL% COVERED

BY CBA(102-41)

2015 1,296 322 1,618 75.36

2016 1,332 336 1,668 75.33

2017 1,240 334 1,574 71.84

2018 1,259 327 1,586 71.96

Workforce Participation

93%

OF MAYNILAD EMPLOYEES ARE SUSTAINABLY ENGAGED(+7 VS. PHILIPPINE NORM)

97%

BELIEVE STRONGLY IN THE GOALS AND OBJECTIVES OF

MAYNILAD (+6 VS. PHILIPPINE NORM)

93%

AGREE THAT EMPLOYEES, REGARDLESS OF JOB, ARE

TREATED WITH RESPECT AT MAYNILAD

(+8 VS. PHILIPPINE NORM)

87%

HAVE THE EQUIPMENT/TOOLS/RESOURCES

NEEDED TO DO THEIR JOB EFFECTIVELY

(+7 VS. PHILIPPINE NORM)

Source:

Employee Engagement Survey, 2014

Management Scores (IiP Standards)

6.48LIVING THE

ORGANIZATION’S VALUES AND BEHAVIORS

(VS. 6.23 INDUSTRY NORM)

6.46EMPOWERING AND INVOLVING PEOPLE


6.5LEADING AND

INSPIRING PEOPLE(VS. 6.11 INDUSTRY NORM)

6.46BUILDING CAPABILITY


6.52MANAGING PERFORMANCE(VS. 6.22 INDUSTRY NORM)

Source:

Investors in People Survey, 2017



Supply Chain Management

Maynilad recognizes the benefits of working with trusted domestic and foreign partners. Our contractors, consultants, suppliers, and service providers (collectively known as “vendors”) enable the timely and cost-efficient delivery of quality services. We consider it part of our responsibility to educate our vendors in “the Maynilad way” and provide the parameters, as well as the rewards, for good conduct, environmental and social consciousness, and excellent service. (103-1, 103-2, 103-3)

Our vendors undergo evaluation as

part of the procurement process.

They are screened for their

financial capacity and technical

and operational capability. In

addition, we evaluate our vendors

for their commitment to quality,

environment care, promotion of

safety and health. (103-3)

Maynilad conducts regular

vendor audits and even worksite

inspections to check on vendor

compliance to standards. (103-3)

of Maynilad’s procurement budget was spent on local suppliers in 2018 (204-1)

93%(up from 90% in 2017)

Payment to foreign suppliers 185,712,585.90

Payment to local suppliers 2,619,540,720.77

TOTAL PROCUREMENT (IN PHP) 2,805,253,306.67



The procurement process and

inspections ensure that 100%

of our vendors are evaluated in

terms of their environmental and

social impacts during their working

relationship with Maynilad.

(414-1)

Vendor Management is under the

Supply Chain Management Division

of the Company. (103-2)

Maynilad’s Vendor Handbook

covers all the requirements for

Maynilad suppliers and outlines

the Company’s expectations with

respect to their performance and

service delivery.

Vendors are familiarized with

the necessary requirements for

accreditation and, once approved

for service, the criteria and process

of performance evaluation to

remain in our vendor pool.

The Handbook also covers

the Maynilad Safety Code and

Environmental Management and

Monitoring Plan and specifies the

Environment Safety and Health

Guidelines that the vendors

must follow.

All vendors are also guided by

the Vendor Code of Conduct,

which is meant to be followed in

conjunction with the applicable

laws, rules, regulations, Maynilad

policies, and contract provisions.

Maynilad is reviewing the existing

Vendor Management Policy to

further enhance and strengthen

its provisions.

“SOURCE 2018: A Vendor

Conference, Exhibit, and

Awarding Ceremony,”

held in October 2018,

showcased new products

and technologies offered

by vendors, with the end

in mind of engaging

and motivating them

to participate in future

Maynilad plans and projects.

Partner RecognitionMaynilad also held the

8th Top Achievement for

Partners (TAP) Awards,

which recognized the top-

performing consultants,

contractors, and suppliers

for their product and service

innovations, cost efficiency,

timely delivery, and

compliance to Maynilad’s

quality, environment, safety,

and health standards.

(103-3)



Occupational Safety and Health

Maynilad is responsible for maintaining a safe and healthy work environment. We strive to ensure the well-being of our people, whom we consider our greatest assets. (103-1)

We abide by the Corporate Safety

Code and comply with all relevant

government safety standards,

including Republic Act 11058 or

“An Act Strengthening Compliance

with Occupational Safety and

Health Standards and Providing

Penalties for Violations thereof

(OSH Law),” as well as fire safety

standards provided by the Bureau

of Fire Protection. In addition,

Maynilad is certified OHSAS

18001:2007. (103-2)

Maynilad has an established

system in place to monitor and

manage health and safety concerns

of all employees and workers.

(403-8). This is both a matter of

compliance practice and a risk

management strategy. (403-1)

We improve on the system, as we

learn from significant incidents

and injuries in the workplace; the

learnings are then shared across

the business.

Maynilad’s Central Safety and

Health Committee (CSHC) is tasked

with monitoring and management,

particularly of activities that are

deemed prone to safety incidents

(i.e., construction and chemical

processes). The CSHC, which meets

monthly, is composed of 160

members, including 129 Safety

Officers (SOs). (103-2)

The committee also has

an established practice for

Environment, Health, Safety,

and Security (EHSS) Reporting.



Maynilad is now able to better

monitor the number and status of

incident investigations, including

corrective actions taken, and

incidents closed. Reporters are

incentivized and protected from

reprisal by the system. This has

helped Maynilad improve

incident reporting. (103-3)

In 2018, we enhanced our EHSS

reporting so that rank-and-file

employees and onsite SOs and

Pollution Control Officers may

file a report in real-time. Closure

of the investigation is five days

(maximum) upon the report being

filed. Resolution of the issue is

expected to be completed after the

root-cause analysis and mandatory

re-training period of the employee.

Emergency medical treatment and

assistance are automatically given

to employee/worker, even prior to

resolution of the case. (103-3)

Our safety practice is further

strengthened through CSHC-

initiated monthly learning

sessions that provide the

opportunity to share best

practices and cascade learnings

from incidents and near-misses.

In August 2018, we also

established a fleet driver incentive

program that increased awareness

of safety habits on the road,

resulting in fewer traffic violations

and vehicular accidents. (103-2)

Safety inspections in 2018Safety walkthroughs are focused on compliance with safety of

construction/excavation equipment, the proper use of safety

signages, wearing of personal protective equipment (PPE), and

workplace cleanliness. (103-3)

98.8%Percentage of facilities that completed safety inspections

80 out of 81 Targeted facilities that underwent safety inspections

95.6%Percentage compliance on issued violations at worksites

129 of 135 Targeted worksites that improved safety compliance

3.62Customer satisfaction rating for safety (where 4 is the highest score)



Hazard identification and risk

assessment is aided by Maynilad’s

regular facility and worksite audits.

Moreover, the periodic Workplace

Environment Measurement (WEM)

detects and measures workers’

exposure to noise, dust, volatile

organic compounds (VOCs),

and chemicals. In 2018, 69 (out

of targeted 70) WEMs were

completed; the last building is still

under renovation. (403-2, 403-3)

The Company follows the hierarchy

of controls to manage identified

hazards and safeguard health:

(403-2)

• eliminate the exposure before

it can occur or substitute

certain elements of the work

process that are less hazardous

(e.g., substitution of less toxic

chemicals);

• engineer controls, which may

require a physical change to

the workplace to mitigate risks

(e.g., structural changes, use of

safety devices and barriers);

• institute administrative

controls and require workers to

follow safe work practices

(e.g., Stop Work Policy, Worker’s

Right to Refuse Unsafe Work,

immediate reporting of unsafe

conditions, among others); and

• as the final safety precaution,

we require wearing of

appropriate personal protective

equipment (PPE), particularly

for individuals with the

greatest risk of exposure

to hazards.

Any potential risks that may be

introduced as a result of the

implemented changes are

assessed in the next cycle of

Corporate Safety and Health AVP and Head Conrado P. Soriano (right) orients safety officers on new safety and health standards



hazard identification. Checks are

also done during the transition

period to ensure that employees

and workers have been onboarded.

In 2018, Maynilad documented

100% compliance in wearing PPE.

(403-2) Maynilad accounts for

several types of PPE, depending

on the type of work: safety shoes/

boots, goggles, hard hat, ear

plugs/muffs, dust masks/face

masks, gloves (including nitrile or

electrical gloves), full body harness,

reflectorized vest, life vest, raincoat,

and life ring, among others.

Workers on a project site, prior

to being awarded a contract, are

obliged to comply with Maynilad’s

safety policies and align safety

measures. This is accomplished

during the accreditation process

and reinforced in the workers’

orientation. From there, workers

are subject to random spot checks

during the course of the project to

assure compliance. (403-7)

Maynilad implements both a safety

awareness program as well as an

emergency preparedness, planning,

and response program. In line with

these programs, Maynilad ensures

that workplaces have the proper

safety and emergency equipment.

The Company also evaluates

facilities in terms of emergency

preparedness and response (EPR)

capabilities. (103-3)

Safety Awareness & Emergency Preparedness

72 out of 72SAFETY PLANS AND SAFETY EQUIPMENT REVIEWED

85 out of 95TARGETED SITES COMPLETED MAINTENANCE BASED ON BFP STANDARDS

15 out of 27TARGETED SITES SECURED FIRE INSPECTION CERTIFICATES

53 out of 85TARGETED SITES COMPLETED THEIR EPR EVALUATION

2018 Safety and EPR Highlights:



To implement safety procedures,

and prepare for seamless

coordination when it counts,

Maynilad ensures that the SOs

especially, alongside regular

employees and workers, undergo

safety trainings and emergency

drills. Toolbox talks/meetings at

the start of the day also reinforce

safety habits among workers.

(403-5)

Sub-central safety committees

conduct monthly orientation,

training, and open forums on safety

programs. The Head Office and

Corporate QESH may be tapped

to conduct necessary measures,

when needed. The workers are

also represented in the Hazard

Identification Risk Assessment

Team, and thus are able to

participate in capacity-building

activities on occupational safety

and health topics and programs.

(403-4)

Safety Trainings and Drills in 2018

36,248*

TOTAL NO. OF SAFETY TRAINING HOURS

52, exceeding target of 44

EMERGENCY DRILLS CONDUCTED

SCOPETOPIC

(404-2)NO. OF

PARTICIPANTS

NO. OF

TR AINING

HOURS

Mandated by Law Basic Occupational Safety

and Health (BOSH)

35 40

Work Safety Permit System 60 24

Fire and Earthquake

Preparedness By BFP/

Maynilad

50 4

Fire Brigade Training

by BFP/Maynilad

25 24

(3-day training

session)

Basic Life Support and First

Aid Refresher (conducted by

the Philippine Red Cross)

40 64



* Includes safety training hours provided to contractors and other service providers, as well as total no. of safety training lectures attended by employees and workers

SCOPETOPIC

(404-2)NO. OF

PARTICIPANTS

NO. OF

TR AINING

HOURS

Mandated by Law New Employee Safety

Orientation

30 20

(2-4 hours per

session)

Incident Command System

(conducted by the Office of

Civil Defense)

40 16

Safety Orientation – WMD 60 16

Specific to

Maynilad

employees only

SCUBA Diving

Refresher Course

16 16

(2-3 days

training session)

HIRAC Orientation (Hazard

Identification and Risk

Assessment and Controls)

100 60

WEM Orientation 94 8

Specific to

Maynilad

employees and

workers (403-5)

EPR (Emergency

Preparedness and

Response) Lectures

200 88

Basic Safety Awareness 135 24

TOTAL 885 36,248

Maynilad is vigilant in its

maintenance of safety protocols

and procedures. Instances, such

as human error (i.e., lack or

insufficient use of PPE, lack of

man-at-work street signage)

are considered a failure of the

systemic approach to safety and

are quickly corrected. In 2018,

Maynilad immediately launched an

investigation into the root cause

of the few accidents that occurred.

Based on the findings, immediate

control measures were established

and cascaded to all employees

and workers in the specific area

and project, respectively. All

stakeholders were informed and

learned from the experience.

2018 Safety Highlights

0.23FREQUENCY RATE

2,128,571MANHOURS WITH NO LOST-TIME ACCIDENT

(MHNLTA) AS OF DECEMBER 2018

113TOTAL LOST DAYSVS. 6,150 IN 2017

26.39 SEVERITY RATE



CL ASS OF ACCIDENT/

LOST DAYS

EMPLOYEES CONTRACTORS

2018 2017 2018 2017

Workplace accidents 6 12 - -

Vehicular accidents 22 15 - -

Disabling cases with LTI 1 2 2 0

Fatalities 0 1 1 3

The uptick indicates greater vigilance on the part of employees/workers to

prevent accidents from occurring. Near-misses serve as basis for changes in

procedure and additional safety controls.

In the event of an accident, Maynilad

employees are entitled to emergency

medical treatment. Additional medical

benefits that are not covered by the

HMO, alongside disability pay for the

recuperation period, are determined

on a case-to-case basis, dependent

on the findings of the investigation

and the approval of top management.

Employees are given the option to

return to work early, provided they

secure an appropriate fitness clearance

and/or recommendation issued by the

in-house physician.

Disability benefits, medical assistance

(403-9)

Project-based employees are also

covered up to the approved maximum

benefit limit of Maynilad’s HMO.

All-risk insurance for workers is

covered by every project.

Accredited vendors are required

to comply with Maynilad’s health

and safety standards, including this

insurance budget. (403-6)

1,728 near-misses in 2018

(vs. 1,057 in 2017)



In 2018, Maynilad’s Program Management

Division (PMD) undertook a project to

achieve the Philippine Green Building

Council’s Building for Ecologically

Responsive Design Excellence (BERDE)

Certification for the Maynilad Safety Center.

The PMD, together with the Integrated

Management Systems (IMS) Department,

served as consultants, or Certified

BERDE Professionals, and helped achieve

compliance to the BERDE requirements.

The Philippine Green Building Council

(PhilGBC) established the BERDE Rating

System in response to the need for the

local building industry to address the

negative effects of climate change. The

BERDE Certification is a Green Building

Rating System developed under the

PhilGBC’s BERDE Program. BERDE is

recognized by the Philippine government,

through the Department of Energy (DOE),

as the National Voluntary Green Building

Rating System.

Maynilad Safety Center gets 2-star BERDE Certification

Maynilad’s primary objective was to build

a center for safety training and operations

that would enhance our capability for

disaster preparedness and emergency

response. The facility would also serve as a

command center to monitor the Company’s

different offices and facilities from the

northern quadrant of Metro Manila.

Maynilad aimed to achieve a BERDE rating

for this new facility, given its dual purpose.

To obtain the BERDE certification, Maynilad

had to comply with 11 requirements—

management, land use and ecology, water,

energy, transportation, indoor environment

quality, materials, emissions, waste,

heritage conservation, and innovation.

A certain number of points is allotted

per category, for a total of 75 points;

Maynilad’s Safety Center received 65

points, which qualified it to receive a

2-star BERDE rating. This rating indicates

“good practice”; the highest possible

BERDE rating one may achieve is 5 stars,

indicating the organization is a

“world leader.”



certified under the National Ecolabelling

Programme-Green Choice Philippines.

There were several challenges to

hurdle, including aligning BERDE with

Company standards, regulatory and legal

requirements; securing the approval of

the La Mesa Multi-Sectoral Watershed

Council; enforcing strict pollution

controls and avoiding cutting of trees in

the protected area. However, Maynilad’s

experience with this project is proof that

achieving BERDE certification is possible,

given proper planning and management

support. The BERDE 2-Star Certification is

a testament to Maynilad’s commitment to

establish buildings and facilities that are

sustainable and have minimal impact to

the environment.

Among the green building features

that Maynilad integrated into the new

Safety Center are solar panels for on-site

renewable energy, as well as more energy-

efficient equipment and LED lighting. To

conserve water, the Safety Center utilizes

a Rainwater Harvesting System for toilet

flushing and irrigation, as well as water-

saving plumbing fixtures. Open-grid pavers

were used to reduce the heat island effect

and pervious pavers made from recycled

materials were used for the walkways. The

pervious pavers can accommodate one

liter of floor water in 10 seconds, making

them ideal for rainwater recovery. To

facilitate proper waste management, the

Safety Center also has its own Materials

Recovery Facility. Where possible, Maynilad

selected eco-labelled materials that are



Health Management remains to be

an important HR program on which

Maynilad has been heavily investing

for the past several years. Our health

practices follow the World Health

Organization and OSH framework and

comply with the mandatory DOLE and

DOH legal requirements. By promoting

health and wellness, we hope to deliver

quality care and improve workforce

productivity, while reducing health care

costs for our employees and the Company.

(103-1)

Our health-related policies include the

observance of a Drug-free Workplace,

No Smoking Policy, and prevention and

control of Tuberculosis, Hepatitis B,

and HIV/AIDS. We also have an existing

policy on Breastfeeding Promotion in

the Workplace, and so we maintain 13

lactation rooms in our clinics and offices

for the benefit of nursing mothers.

(103-2)

We have also started drafting Maynilad’s

Mental Health policy, ready for approval

in 2019. This is in keeping with the RA

11036 or the Philippine Mental Health

Law, which was signed in 2018.

Maynilad provides medical/dental

services (oral prophylaxis and treatment).

We have three full-sized clinics at Balara

Head Office, Arroceros, and La Mesa. We

also have mini-clinics in Cavite, Central

Depot, Socea Bona, and in other Business

Areas. Apart from which, in-house roving

doctors and a dentist provide on-site

medical and oral consultations.

Promotion of Health & Wellness

Employee Health Statistics

1 The above table shows the number of employees per occupational ailment/disease in 2017 and 2018.

Occupational ailments/disease¹T YPES NO. OF CASES IN 2018 NO. OF CASES IN 2017

Allergic Rhinitis 58 39

Asthma/Bronchial Asthma 7 12

Dermatoses 0 1

Eye strain 0 0

Infected wound 4 5

Infection as folliculitis 4 2

Abscess/paronychia 8 3

Musculoskeletal strain 26 38

TOTAL 107 100

(403-10)



In 2018 alone, 579 employees were given

a complete oral rehabilitation. (103-2)

The Company also has one fitness

center and a sports/recreation

gymnasium strategically situated within

the concession so that employees

have access to fitness equipment.

We have also entrusted a health

management organization (HMO) to

provide the employees appropriate

diagnostics, emergency, out-patient and

hospitalization services. The subsidized

HMO coverage for employees includes

their dependents. (103-2)

Health-hazard reduction initiatives in

the workplace, and various health and

wellness programs, ensure our employees

are healthy, fit, happy and productive.

These initiatives and programs are

established within the context of

prevention, treatment, and rehabilitation.

(103-2)

Health-related policies and programs

are explained to employees during their

onboarding. In 2018, the HR Department

intensified the provision of Health

Bulletins, including announcements of

upcoming health forums, and Health

Alerts, which inform employees of new

treatments. The Company Doctor also

maintains a health column in the official

company magazine, Ripples. (103-2)

As mandated by law, Maynilad

employees are entitled to an

annual physical examination

(APE). The APE enables follow-up

on previous medical findings and

early detection of asymptomatic

diseases. The program also allows

employees to check on their

exposure to any occupational

health hazards. Executives, for their

part, may avail of an executive

check-up (ECU) package.

Annual Physical Examination and Check-ups

APE 2015 2016 2017 2018

Compliance 98.7% 99.4% 99.79% 99.95%¹

Satisfaction

survey rating²

2.96 3.05 2.98 3.06

1 One regular employee resigned and could no longer avail of the APE2 Highest possible score: 4

ECU 2015 2016 2017 2018

Compliance 86.54% 79.31% 87% 96.88%

Change YoY (2017-2018)

APE Compliance

0.16%

Change YoY (2017-2018)

Satisfaction Survey Rating

2.68%



In line with our policy on

maintaining a drug-free workplace,

as well as local ordinances, we also

conducted random drug testing.

Results showed 98% compliance,

with one individual testing positive

and subsequently rehabilitated.

Other screenings we conduct

are aligned with the Hearing

Conservation Program (screening

audiometry) and Chemical Hazard

Exposure Surveillance Monitoring

(blood/urine chemical testing) for

our at-risk employees.

Through partnership with leading

pharmaceutical companies and

their distributors, Maynilad

provides discounted vaccines for

employees—this benefit is also

extended to their families. Included

in the program are vaccines

against common preventable

diseases such as flu, pneumonia,

hepatitis A & B, cervical cancer,

penile cancer, meningococcemia,

chicken pox, measles, mumps,

rubeola, rabies and tetanus.

Enhanced Vaccination Program

VACCINATION

PROGRAM2015 2016 2017 2018¹

Enrolled employees 421 453 255 243

Enrolled dependents 1,417 1,458 1,092 853

Negotiated discount 57.65% 54.62% 56.71% 54.0%

1 Some vaccinations are not required to be taken every year, which results in fewer enrollees for those vaccines. A scare involving the government’s dengue immunization program also had a dampening effect on vaccination programs in general.

Notably, our zone specialists and other field personnel are given

free pre-exposure vaccination against rabies and tetanus as a

precautionary measure.



Cost savings for the individuals who enrolled in the

vaccination program (a flu vaccine costs PhP570 at Maynilad

negotiated price compared to the PhP1,250 at an external

private clinic; similarly, a pneumonia vaccine costs PhP2,690

at Maynilad, compared to PhP4,500 at an external

private clinic)

Reduction in cases of confirmed Hepatitis A, flu, pneumonia,

and other communicable diseases, potentially due to the

vaccination program

Zero cases of rabies and tetanus for high-risk employees in

the past five years

Highlights of our 2018 vaccination program:

CASES 2014 2015 2016 2017 2018 %REDUCTION YoY

Flu 5 3 3 3 2 34%

Pneumonia 52 43 31 67 55 18%

Rabies 0 0 0 0 0 -

Tetanus 0 0 0 0 0 -

Hepatitis A 0 0 0 2 0 100%

Maynilad also provides easy

access to discounted medicines

through a partnership with an

online pharmacy. Rank and file and

supervisors are given PhP1,000

credit, whereas managers

are provided PhP5,000 credit

Employees need only scan or take

a photo of the prescription, order

online, and the medicines will be

delivered to their declared address.



Maynilad’s in-house Fitness

Center provides instructors to aid

employees in reaching their fitness

goals. Maynilad also arranges free

group exercise classes (such as

zumba) and subsidizes enrolment

at an accredited external gym.

Employees are encouraged to join

regular sports fests or “palaro,” the

Maynilad Health Run, and Weight

Loss Challenge programs. In 2018,

a total of 1,606 overweight/obese

employees participated in the

FitFil Weight Loss Challenge.

At the end of the program, 93.8%

or 1,507 of the enrollees had lost

weight. Collectively, they succeeded

in losing 7,096.44 lbs.

Education on proper nutrition

is provided through regular

health bulletins, but Maynilad

also manages Health Support

Clubs with the intent to control

hypertension and diabetes in

the workplace. Health outcomes

through the years show that more

than half of the hypertension cases

are now under control.

Fitness and Nutrition Hypertension Cases

Controlled

Uncontrolled

2014 190 185

2015 216 190

2016 227 187

2017 178 130

2018 183 148

Diabetic Cases

Controlled

Uncontrolled

2014 53 92

2015 52 115

2016 48 123

2017 42 98

2018 41 98

Club Initiative Satisfaction Survey Rating

2014 3.12

2015 3.13

2016 2.99

2017 3.22

2018 3.1

Maynilad employees are encouraged to avail of the in-house fitness center and join in team sports and other wellness activities

(with 4 as the highest possible score)

(103-3)



Employees and workers alike are

entitled to medical treatment from

the licensed doctors and nurses

manning the company clinics.

Maynilad’s in-house ambulance

is available 24/7. Though the

ambulance is based at the Head

Office, it is company practice

to park the ambulance near

major work sites, as needed. The

ambulance is equipped with two

units of user-friendly Automated

External Defibrillators (AED).

These are made available to both

employees and workers.

In compliance to the OSH Law,

hospitals accredited by our HMO

provider are also accessible to our

workers. In areas that do not have

an HMO-accredited facility, we

make sure that we identify medical

facilities that would cater to them.

(403-3)

Occupational health servicesfor workers

Maynilad conducts company-wide

forums to better inform employees/

workers on relevant health topics,

particularly on management of

occupational diseases.

Starting in 2018, the Health

Management Department also took

time to educate forum participants

on the new OSH Law.

Health & Wellness information drive

2014 2015 2016 2017 2018

Forums conducted 19 27 27 27 27

Employee participation 68% 65% 77% 63% 78%

Satisfaction Survey Result 3.14 3.14 3.33 3.30 3.37

Yearly, Maynilad also celebrates

Health and Wellness Awareness

Day. This 2018, the wellness event

included a healthy lifestyle forum

with the theme “Feeling Good,

Looking Great, Inside & Out.”

Invited experts discussed proper

nutrition, fitness regimen, and

skincare. A total of 66 exhibitors

participated, sponsoring 24

free health screening tests for

attendees. Winners of two wellness

contests—the Maynilad Edition

of the FitFil National Weight Loss

Challenge and the Zero Oral Cavity

Awards—were also recognized.


BUSINESS AND COMMUNITY GROWTH

Business and Community Growth

The impact of climate change on already scarce water resources, and the

needs of a rapidly growing population are all part of the context within

which Maynilad operates. It is our responsibility and our commitment to

continue serving our customers by providing water that is safe, reliable,

and affordable—and that we do this in a manner that ensures the long-

term sustainability of our resources.

98



Business Expansion

Water is not a privilege, but a basic human right, hence our push to connect more households and businesses to our distribution network each year. Maynilad aims to increase shareholder value and grow its core income by optimizing capital and operational expenditures to fuel our business expansion activities. Beyond profit, we provide a public service, and contribute to correcting inequities in society. (103-1)

In terms of water supply, our target

is to deliver 24/7 piped-in potable

water at 16 psi (pounds per square

inch) to at least 96.5% of the

West Zone population by 2022.

In 2018, we served an additional

50,766 domestic connections and

1,638 commercial and industrial

customers, bringing our water

supply coverage to 93.86%.

Maynilad has achieved almost

complete water coverage for the

West Zone and continues to look

for ways to improve efficiency and

service delivery.

The Challenges: (102-15)

• To deliver quality water to

our customers’ homes and

places of business

• To reduce physical and

commercial water loss that

can result in negative impact

on water pressure and

reliability

• To achieve effective

wastewater management

that can promote health

among our communities and

avoid environmental impact

Maynilad continues to work with

the MWSS, through the Common

Purpose Facility (CPF) Office,

on ongoing water resources

and infrastructure development

projects, such as the rehabilitation

and strengthening of existing

tunnel structures/facilities to

withstand future typhoons and

potentially high-magnitude

earthquakes in the area. This will

ensure the continuous flow of raw

water from the Umiray River to the

Angat Reservoir and the Ipo Dam.

(103-2)

99



Apart from ensuring that we

have reliable water sources, new

pumping stations and reservoirs

for additional storage capacity,

and a resilient pipe network for

the conveyance of potable water,

Maynilad recently amped up its

wastewater management, and

sewerage and sanitation services.

Within the La Mesa Compound in

Quezon City, Maynilad is expanding

the Central Laboratory, which

monitors and tests the quality of

water supply from samples drawn

in over 1,000 sampling points

throughout the West Zone.

Water reclamation facilities

(WRFs) or Sewage Treatment

Plants (STPs) are continuously

being ``constructed to expand

sewerage coverage in the West

Zone. The Pasay WRF, one of two

recent additions to the WRFs,

has the capacity to reduce the

volume of sludge to 62.5 times

its initial volume. The new Pasay

and Parañaque WRFs increased

the sewer-served population to

1,910,780 in 2018, bringing the

sewerage coverage to 20.43%

(9.55% for Separate Sewerage

Coverage, and 10.89% for

Combined Sewerage Coverage).

This brings us closer to our target

of 47% sewerage coverage by 2022.

We have been vigilant in offering

septic tank cleaning at no

additional cost to our customers.

This 2018 we emptied 82,353

septic tanks (vs. 78,389 in 2017).

We offered our sanitation services

to 155,351 accounts: 61,862

accounts waived the offer, but

93,489 customers did avail of

our services (vs. 89,261 in 2017).

As a result, we have doubled our

sanitation coverage to 21.24%

from 10.66%, serving a cumulative

2,026,315 customers since 2017.

We hope to reach more people in

the coming years, to accomplish

our target sanitation coverage of

81% by 2022.

Our water service ambition is

expansive. Maynilad’s business

units are cognizant of growth

opportunities within and outside

the West Zone. These units have

designed and marketed a suite

of water solution packages to

local water companies, real estate

developers, and commercial

and domestic consumers, which

translated to new revenue streams

for the Company in 2018.

Customer Management 2018

20.43%

SEWERAGE COVERAGECLOSER TO 2022 TARGET

BY 47%

21.24%

SANITATION COVERAGEFROM 10.66% IN 2017

100



DIRECT ECONOMIC VALUE GENERATED, DISTRIBUTED, AND RETAINED IN 2018

ECONOMIC VALUE GENERATED 22,995,894

Revenues 21,761,296

• Water services 17,810,615

• Sewer services 3,851,972

• Others 98,709

Other revenues 1,234,598

• Interest income 184,851

• Foreign currency differential adjustments 1,049,747

ECONOMIC VALUE DISTRIBUTED 18,654,664

Operating costs 6,722,502

Employee wages and benefits 2,234,942

Payments to providers of capital

(declared dividends)

2,999,548

Payments to government 2,767,218

• Taxes and licenses 252,927

• Regulatory costs 126,814

• Income tax 2,387,477

Community investments

• Donations 92,151

Other expenses 3,838,303

• Interest expense, financing charges 2,107,545

• Forex losses 1,061,205

• Miscellaneous (net) 669,553

ECONOMIC VALUE RETAINED¹ 4,341,230

1 Economic Value Generated minus Economic Value Distributed equals Economic Value Retained

Our Finance Department is tasked

with allocating budgets, processing

payments, compensating our

employees, and remitting taxes to

the government. Our financial data

is audited and reported annually.

For more information, please

refer to the Financial Review and

Analysis in the Maynilad Annual

Report 2018. (103-2, 103-3)

(201-1)

101



Customer Health and Safety

Water is vital to the health of the population, and Maynilad’s mission is to provide potable water that will allow our customers to live healthy. Our commitment to quality obliges us to make sure that the water that comes from Maynilad is safe for drinking. (103-1)

As a member of the Metro Manila

Drinking Water Quality Monitoring

Committee, Maynilad meets monthly

with government agencies, LGUs, and

other private companies to monitor

water quality in Metro Manila. (103-2)

We monitor the water we produce

multiple times, daily, at our water

treatment plants. We also monitor

whether the water from our customers’

faucets is fit for drinking.

We utilize a total of 1,127 sampling

points, with 961 sampling points

in Metro Manila alone. This is well

beyond what is required by the

Philippine National Standards for

Drinking Water (PNSDW). (103-2)

The samples we collect undergo

strict bacteriological, physical, and

chemical examination. Maynilad’s

newly expanded Central Laboratory is

accredited by the DOH as a laboratory

for drinking water analysis. Our lab

technicians ensure that we follow the

new quality parameters set by the

DOH’s updated PNSDW.

In 2018, Maynilad provided training

for eight drinking water quality

inspectors, all of whom were among

the first batch to be certified by DOH

as compliant with PNSDW. More

inspectors are expected to be certified

in 2019. (103-3)

Since 2010, Maynilad has consistently

received 100% satisfactory compliance

with the PNSDW.

102



Customer Service

As a utility provider with one of the largest concession areas in the country, Maynilad can be a partner in progress and development. Maynilad serves a diverse market, with domestic, commercial, and industrial accounts. Water is critical to business and industrial operations, and therefore, a driver of the economy. Meanwhile, domestic water consumption is vital to maintain the standard of living of households. (103-1)

Since 2018, Maynilad has

subsidized the consumption of

households classified as “lifeline

customers.” Residential customers

whose consumption do not exceed

10 cubic meters (cu.m.) per month

are automatically given a monthly

41% discount off the basic water

rate. In 2018, our tenth year of

providing this subsidy, we served

318,721 low-income households.

(103-2)

Since 2010, in keeping with the

Expanded Senior Citizens Act of

2010 (RA 9994), we have also

offered a 5% discount to senior

citizen account-holders whose

consumption does not exceed

30 cu.m. monthly. In 2018, 2,934

senior citizen households availed

of the discount. (103-2)

We aim to provide the best

experience for our customers—

from the best-quality product, to

the fast delivery of services, to

responsive complaint resolution

and even special discounts.

103



Customer eXperience and Retail

Operations (CXRO) continuously

improves on customer experience

by tapping technologies that

can enhance customer-facing

processes. For one, a Workflow

Management System enables

frontliners to determine if an

application or complaint is being

acted upon, as well as identify the

person responsible for ensuring

case closure. We conduct an annual

Customer Satisfaction Survey

(CSAT). The survey results are sent

to our respective Business Areas

to analyze and base further process

improvements. (103-3)

See page 134 for data table

Maynilad has adopted an automated customer communication (ACC) dashboard for our call center, which is expected to improve operations and the quality of service delivery to our customers. Part of our commitment is to keep our customers informed about any water interruptions that may occur. The ACC dashboard will serve as a live viewing portal of all future, ongoing, and accomplished water interruption activities.

The call center agents are now able to view the webmap that displays affected areas on our Phase 0 ACC dashboard. This enables the agents to immediately identify which portions of the concession area have water interruptions.

Agents can view interruption activities through various display modes—the

Improved customer experience via automated customer communication dashboard for call center

most used view by Contact Center is the Maynilad Land base, which displays the geographical locations of affected areas through a color-coded heat map. Other details are also available on the dashboard, such as the ongoing activity in the area, type of water interruption, and the duration.

Prompt updates on the live status of activities enables Maynilad’s Contact Center team to get instant information. Because the details are readily available, agents are able to immediately respond to customer inquiries. This lessens creation of Water Availability Complaints tickets that are logged in the system. Other enhancements to the system are being planned that will help generate SMS advisories, and improve management of customer information.

Customer Management 2018

100% DELIVERED

CSAT 3.99APPLICATION FOR

NEW WATER SERVICE CONNECTION

100% DELIVERED

CSAT 3.98INSTALLATION OF

NEW WATER SERVICE CONNECTION

99.70% RESOLVED

CSAT 3.58CUSTOMER SERVICE

COMPLAINTS

99.78% RESOLVED

CSAT 3.59CUSTOMER BILLING

COMPLAINTS

(CSAT top score is 4)

(103-3)

104




Maynilad is committed to delivering the best water and wastewater services to our customers, while also supporting community development. We practice corporate social responsibility (CSR) based on the needs of our beneficiaries, who are primarily located within our concession area. This promise is declared in our tagline, “Higit sa tubig ang aming serbisyo.” We hope to contribute to cities becoming more livable as we promote the Maynilad values and foster water-saving habits among the communities who will care for the surrounding environment. (103-1)

We aim to contribute to nation-

building, and so our CSR initiatives

are influenced by policies and

directives from the government.

For example, coastal cleanups are

intended to fulfill the Supreme

Court Mandamus to rehabilitate

Manila Bay. Our school-based

programs are tailor-fit to the

Department of Education’s (DepEd)

comprehensive Water, Sanitation

and Hygiene (WASH) in Schools

(WinS) policy and national cleanup

drive. Meanwhile, our urban

gardening efforts are an extension

of the Parañaque LGU’s efforts.

(103-2)

We also intend to contribute to

meeting the national targets for

the UN SDGs. Through various

programs that promote hygiene,

education, and social enterprise,

we not only meet the needs of

our community stakeholders,

but adhere to the global

advocacy toward a clean, safe

and sustainable environment.

In the pursuit of these common

objectives, we establish

partnerships in the public and

private sectors. (103-2)

105



Our Advocacy Group is tasked with

the planning and execution of our

CSR programs, which are designed

in consideration of current

business objectives and the agenda

of top management. Our approach

is to translate the business agenda

into social good. For example,

our duty of communicating the

importance of good sanitation

and the protection of waterways

inevitably leads to encouraging

our customers to avail of the

desludging services of Maynilad.

This is aligned with the business

objective of increasing acceptance

of our wastewater services.

(103-2, 413-1)

In 2018, the Advocacy Group’s

target was to expand our service

coverage to poor/informal settler

communities, and to look for

solutions to the financial, legal, and

technical hurdles to connecting

these communities to the network.

We set a coverage target for the

year and evaluate our success

based on our adherence to

these targets and to our budget

allotments. (103-3, 413-1)

106

CSR FOCUS

PRO-POOR WATER SERVICE SCHEMES

• Pag-asa sa Patubig

Partnership

• Samahang Tubig

Maynilad

1

2

W.A.S.H. INITIATIVES

• Lingkod Eskwela

• Brigada Eskwela

• Daloy Dunong

• Talakay Tubig

• GinhaW.A.S.H.

• Global Handwashing

Day

• World Water Day

Awards

3

4

5

6

7

8

9

SOCIAL ENTERPRISE

AND COMMUNITY PROGRAMS

FOR POVERTY ALLEVIATION

• Green Badge

Program

• Sining Ipo

• Kapwa

• Ginhawa Gardening

10

11

12

13

WATER RESOURCE

REHABILITATION

• Mandaragat Festival

2018

• Manila Bay/Laguna

Lake Cleanups

• Plant for Life

Program

14

15

16

1 4

4

5

5

56

15

14

11

(203-1, 203-2)

Expand water connections and sewerage services to underserved communities

POSITIVE IMPACT

Facilitate engagement with potential and existing customers

Increase water and sanitation coverage while relationship-building (gov’t., schools, customers)

Promote good customer behavior with respect to water

AND LINK TO SBO

Company Mission:- Provide safe, affordable, and sustainable water solutions

Business Growth:- Community Development and Social Inclusion- Additional Water Connections and Sewerage Services- Customer Service- Partnerships

Business Growth:- Community Development and Social Inclusion- Additional Water Connections and Sewerage Services- Customer Service- Partnerships

Provide alternative means of livelihood to watershed dwellers who would otherwise be engaged in kaingin (swidden farming)

Provide livelihood support to strengthen economic power of urban poor (potential) customers

Dispose of used uniforms that would have otherwise been sent to landfill

Promote urban gardening as a source of food and a potential source of income, and educate listeners on waste segregation and wastewater services

Operational Efficiency:- Lower Environment Footprint- Secured Water Bodies for Sourcing and Receiving Water

Business Growth:- Community Development and Social Inclusion- Partnerships

DISASTER MITIGATION

AND RESPONSE

• Mission Ginhawa17

Convert IPs/watershed dwellers into stewards who will protect/ replenish the watershed

Mobilize stakeholders (farmers, coastal dwellers, concerned public) to rehabilitate surroundings

Educate public on Maynilad’s wastewater services and the effect of pollution on water sources

Operational efficiency - Secured Water Bodies for Sourcing and Receiving Water- Lower Environment Footprint

Regulatory compliance:- Mandamus

Business Growth:- Community Development and Social Inclusion

Capacity-building (firefighting & emergency training)

Relief efforts in the wake of disasters to help communities recover much faster

Humanitarian efforts - Extension of the social contract between Maynilad and the public

Business Growth:- Community Development and Social Inclusion

Programs /Initiatives

BUDGET FOR COMMUNITY-BASED SOCIAL RESPONSIBILITY INITIATIVES

vs 8.2 million in 2017

PhP7.7 million

1

2

22

3

3

3

3

3

3

3

3

4

4

4

4

4

4

4

4

5

5

5

5

5

5

5

Bulacan, Nueva Ecija, Nueva Vizcaya

12

13

13

15

Bulacan

Cavite

5 Legaspi, Cebu, Davao, General Santos

107



Pro-poor Water Service Schemes

Since 2015, Maynilad has used a

social enterprise model for a bulk

water system to address the water

concerns of informal settler families

in Muntinlupa and Cavite. This 2018,

Maynilad provided training in water

system troubleshooting and basic

bookkeeping for new P3 partners in

two informal settler communities in

Pag-asa sa Patubig Partnership (P3) Program

“Nagpapasalamat ako at nakuha akong kolektor para sa patubig dito sa ’min. Bukod sa ekstrang kita at mas nababantayan ko ang mga anak ko, ramdam ko na may naaambag akong maganda dito sa komunidad.” – Analiza Avelino, TPA Collector

[“I am grateful that I was hired as a water collector in our area. Apart from earning extra income while being able to keep an eye on my children, I feel that I am giving a good contribution to our community.”]

Talaba II, Bacoor City (371 families),

and another urban poor community

in Upper Sucat Extension, Muntinlupa

(100 families). Indigent communities

now pay a reasonable “residential”

rate of PhP18 to the respective

cooperatives versus PhP35 to a water

syndicate for a 200-liter drum of water.

Samahang Tubig Maynilad (STM)Maynilad helps organize residents

from urban poor communities so

they can earn from managing their

own informal water system, which

is installed by Maynilad. From 2009

to 2016, Maynilad organized 13

STMs, which benefits a total of 2,874

households in Manila, Pasay, Caloocan

and Quezon City. These women-led

STMs are still thriving and expanding

into alternative livelihood options

in 2018.

In 2018, Maynilad kickstarted a feasibility study on community-based sanitation and solid waste management, in partnership with the France-based NGO Eau et Vie and Water and Life Philippines. The study aims to address the challenge of collecting septage from informal settler communities.

Community-based sanitation and solid waste management (a feasibility study)

The study commenced in December 2018 and will run for a year in the identified pilot area, the P3 coastal community of Pugad Ibon. The pilot program intends to combine sanitation with a solid waste collection scheme, which can be implemented in other STM and P3 communities in the West Zone.

108



Lingkod Eskwela 2018

Beneficiary Schools

Drink and Handwash - CY-2018 Project

910

11

4

8

8

8

1

Quezon City

Caloocan

Malabon

Navotas

Valenzuela

Manila

Parañaque

Las Piñas

Muntinlupa

n No. of Schools

W.A.S.H. Initiatives

Brigada Eskwela 2018Throughout Brigada Eskwela

2018, Maynilad volunteers

refurbished classrooms and set

up temporary hydration stations

in campuses. They upgraded the

water and sanitation facilities in

122 beneficiary schools, including

siphoning campus septic tanks.

Lastly, they also brought 10

company-donated computers to

one computer laboratory.

Lingkod Eskwela supports the

DepEd’s Water, Sanitation, and

Hygiene in Schools, or WinS

policy, which compels schools to

establish proper wash facilities

and hygiene education programs

in campuses. In 2018, Maynilad

installed drink-wash areas in 50 of

the most populous and resource-

deficient public schools in the West

Zone, bringing the total number of

beneficiaries to 1,300,622.

109



Brigada Eskwela Coverage

13159

2

3

8

6

15

23

Quezon City

Caloocan

Malabon

Navotas

Valenzuela

Manila

Parañaque

Las Piñas

Muntinlupa

Cavite

9

n No. of Schools

Daloy Dunong

Maynilad partners with various water

districts and government agencies

to conduct Daloy Dunong education

campaigns. In 2018, Maynilad inspired

14,300 elementary and high-school

students to become Water Warriors—or

ambassadors for good hygiene, proper

solid and liquid waste management,

and water resource conservation. The

water education drive has engaged

over 138,000 students in 480 public

schools since its 2012 launch.

Talakay Tubig

To complement the youth-

targeted Daloy Dunong, Maynilad

also conducts Talakay Tubig,

a community water forum for

heads of households and local

government officials. For 2018, the

Talakay Tubig forum at the Navotas

Sports Complex in June 2018.

A total of 1,700 Pantawid Pamilya

members attended to discuss water

and wastewater concerns in the

context of the UN SDGs.

Daloy Dunong was

also conducted

in partnership

with PhilHydro in

Bambang, Nueva

Vizcaya and Rizal,

Nueva Ecija in April

and May 2018,

reaching more than

500 household-

customers. Maynilad

partnered with

PhilHydro again

in September and

October for events in

Legaspi and Bulacan.

110



GinhaW.A.S.H.Since 2015, Maynilad’s

GinhaW.A.S.H. program has

installed 500 bidets and 20

drinking fountains in a government

hospital, a health center, and girls’

restrooms in 17 high schools.

Maynilad also put up signages

promoting “health and sanitation

tips” to reinforce proper hygiene

and sanitation. A total of 190 key

accounts engaged in public service

have benefited from GinhaW.A.S.H.

Global Handwashing Day 2018Maynilad celebrates Global

Handwashing Day, an international

advocacy to promote the value

of handwashing. On October 15,

Maynilad visited 11 schools to

teach around 2,000 kids about

the health benefits of regular

and proper handwashing. This

activity was held in partnership

with DepEd, with the support of

handwashing champions such as

Procter and Gamble.

World Water Day (WWD) 2018Eighteen exemplary individuals and organizations were recognized during the 4th World Water Day (WWD) Awards. The awards were pioneered by Maynilad’s AdMark in 2014 to recognize champions who have made strides in achieving water and environment sustainability in the Philippines. Maynilad also led other WWD activities: mangrove-planting activities in partnership with

different government agencies and private organizations, education drives, and a sungka tournament that showcased the premium sungka blocks made by the Dumagats of Ipo Watershed. The latter is one of a series of Sining Ipo Sungka Tournaments held this year, which attracted more than 120 water and environment professionals as players.

111



In 2018, Maynilad’s uniform upcycling

and livelihood program, Green Badge,

had four production cycles.

This resulted in extra income of about

PhP500 to PhP2,000 monthly, for

the seamstresses of STM-Riverview.

Maynilad regularly donates the de-

badged uniforms to charities and

direct to disaster survivors. The Green

Green BadgeBadge team, now on its third year

with the program, continues to

prototype new items, such as tent

canopies made from old tarpaulins.

This 2018, they also produced

drawstring bags that were used by

Maynilad as tokens for outreach

activities, Water Academy training

workshops, and other engagements.

Social Enterprise and Community Programs for Poverty Alleviation

Maynilad continues to engage the

Dumagat sculptors of Ipo Watershed.

In five years, Sining Ipo has grown

from nine to 30 craftsmen. The

enterprise has also expanded its

existing product line from decorative

art to include more functional pieces

such as candleholders, desk clocks,

sungka blocks, and wine-holders.

Lately, the Sining Ipo carvers have

created fruit bowls, which were

used as part of Maynilad’s corporate

Sining Ipogiveaways. Maynilad’s creative

approach to forest conservation is

proving modestly lucrative: Sining Ipo

has boosted the Dumagat sculptors’

monthly income with an additional

PhP2,000 to PhP4,000 per household,

enabling them to better provide for

their families. Maynilad has also been

inviting master sculptors to participate

in a yearly mentorship program, to

help the sculptors improve their skills.

112



Maynilad has sustained its

livelihood partnership with the

women of STM Tondo, which was

established in 2009. The success

of this initiative was highlighted

with the recognition of STM

president Lydia Codinera as one

of GoNegosyo’s 20 Inspiring

Filipina Entrepreneurs of 2018.

The enterprise introduced two

Kapwanew products, shampoo and body

wash, which were packaged into

a premium gift bundle that the

Company now gives to senior

officials of partner organizations.

Due to the modest popularity

of its products, Kapwa provided

an average monthly income of

PhP3,500 for each member of STM

Tondo in 2018.

Maynilad’s urban garden campaign

began as a strategy to supplement

the Parañaque City local

government’s home food security

program in 2016. Today, Parañaque

City maintains 29 vegetable

gardens that Maynilad helped

establish. This 2018, Maynilad

selected five schools Parañaque

City and another five schools in

Ginhawa Gardening Caloocan City, to participate

in green lifestyle workshops.

It was the first time the campaign

has ventured north of Metro

Manila. The 10 schools received

vertical gardens and other

equipment, such as drip irrigation

systems, to facilitate urban

gardening activities.

Water Resource Rehabilitation

Maynilad celebrates Bacoor City’s 347th

founding anniversary through the 5th

Mandaragat Olympics, a yearly event

conceptualized by Maynilad and the

Mamamayan Para sa Lambat at Dagat

Cooperative. The festival promotes the

livelihood of fisherfolk and involves

Mandaragat Festival 2018coastal communities in efforts to

clean up Bacoor Bay, the southern

inlet of Manila Bay. More than 200

fisherfolk-customers, including Bacoor

City LGU and DENR representatives,

participated this year.

113



Maynilad has teamed up with the

Pasig River Rehabilitation Commission

(PRRC) and the Manila Bay SUNSET

Partnership Program, Inc. (MBPSPPI)

in awareness drives and seminars

on the importance of wastewater

services for the rehabilitation of

Pasig River and Manila Bay. Maynilad,

together with the MBPSPPI and

DENR, also conducted monthly

Manila Bay & Laguna Lake CleanupsManila Bay cleanups for the whole

of 2018; collaborated with the Ayala

Alabang Village and the Muntinlupa

Lake Management Office for the

“Save Laguna Lake” cleanup and

PWTP facility tour in July; and the

International Coastal Cleanup (ICC)

campaign in September, with over

5,000 volunteers in five sites from

Malabon to Bacoor City.

Water Resource Rehabilitation

When disaster strikes, Maynilad finds

a way to provide access to clean

water and compact micro-filtration

systems and technical assistance. Prior

Mission Ginhawa to that, Maynilad helps vulnerable

communities to prepare. In 2018,

Maynilad provided capacity-building

for its new P3 communities—this

included firefighting seminars, and

a hygiene-sanitation education

establish a 5-year roadmap

enhance and expand water and wastewater services

draft water supply masterplan for the West Zone, Inc.

The Philippines still has a long way to go in terms of sustainable water management. While Maynilad has shown the effectiveness of the NextGen Framework, we have our work cut out for us in terms of meeting our ambitious targets.

We will establish a five-year roadmap on how to further reduce our carbon footprint. It may seem like an uphill battle, given the projected energy consumption of additional pump stations, but this is why we will be looking at all the variables. We are committed to doing our part in protecting the environment and safeguarding the health of our employees and customers.

Moving ForwardWe will be investing PhP16.8 billion in 2019 for the continued enhancement and expansion of our water and wastewater services. These investments will correct infrastructure limitations, and further enhance reliability, so that we are able to meet the rising demand for water.

We will also be drafting a water supply masterplan for the West Zone, including how to improve climate change resiliency and to develop alternative water sources by 2021-2022. We are not alone in this endeavor, and as long as the government and the private sector work hand-in-hand, we can overcome the challenges of water security.

campaign care of Tubig Pag-asa, which

manages the P3 community water

system, and its NGO arm, Water and

Life Philippines.

114


GRICONTENT INDEX

GRI Content Index

The Maynilad 2018 Sustainability Report, “Rising to the Challenge,” follows the GRI Standards 2016 and 2018. This report has been

prepared in accordance with the GRI Standards: Core Option.

Please refer to the About this Report section on page 4 for information on how we have prepared this Sustainability Report.

For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references for

Disclosures 102-40 to 102-49 align with appropriate sections in the body of the report.

Standard Disclosure Number Disclosure Title Page Direct Answer Reason for Omission

Organizational

Profile

102-1 Name of the organization 4, 15

102-2 Activities, brands, products

and services

15-16

102-3 Location of headquarters 5

102-4 Location of operations 15

102-5 Ownership and legal form 15

102-6 Markets served 15, 16

102-7 Scale of the organization 15, 16

102-8 Information on employees

and other workers

15, 74

102-9 Supply chain 19-21

102-10 Significant changes to the

organization and its supply

chain

There was no significant

change to the

organization and its

supply chain.

102-11 Precautionary Principle 11, 13,

62-63

102-12 External initiatives 18-21

102-13 Membership of associations 21

(102-54, 102-55)

Universal Standards

GRI 101: Foundation 2016

GRI 102: General Disclosures 2016


GRICONTENT INDEX


Strategy 102-14 Statement from senior

decision-maker

11,13

102-15 Key impacts, risks, and

opportunities

11,13,

62-63

Ethics and

integrity

102-16 Values, principles, standards,

and norms of behavior

17, 71

102-17 Mechanisms for advice and

concerns about ethics

71-72

Governance 102-18 Governance structure 67

102-23 Chair of the highest

governance body

65

102-24 Nominating and selecting the

highest governance body

67

102-25 Conflicts of interest 67

102-32 Highest governance body’s

role in sustainability

reporting

68

Stakeholder

engagement

102-40 List of stakeholder groups 24102-41 Collective bargaining

agreements

80

102-42 Identifying and selecting

stakeholders

23

102-43 Approach to stakeholder

engagement

24, 25

102-44 Key topics and concerns

raised

24, 25

Reporting

practice

102-45 Entities included in the

consolidated financial

statements

4, 15 As of publication date,

Maynilad’s Annual Report

was in development.

It will be made

accessible on the official

website: http://www.

mayniladwater.com.ph/

news-dwn-annual.php102-46 Defining report content and

topic Boundaries

26-29

102-47 List of material topics 26-29102-48 Restatements of information There are no

restatements of

information.102-49 Changes in reporting There are no changes in

reporting.102-50 Reporting period 4102-51 Date of most recent report 4102-52 Reporting cycle 4102-53 Contact point for questions

regarding the report

5



GRICONTENT INDEX


Economic Performance

GRI 103:

Management

Approach 2016

103-1 Explanation of the material

topic and its Boundary

99

103-2 The management approach

and its components

99, 101

103-3 Evaluation of the

management approach

101

GRI 201:

Economic

Performance

2016

201-1 Direct economic value

generated and distributed

101

Indirect Economic Impacts

GRI 103:

Management

Approach 2016



105


and its components

105-106


management approach

106

GRI 203:

Indirect

Economic

Impacts 2016

203-1 Infrastructure investments

and services supported

107

203-2 Significant indirect

economic impacts

107

Procurement Practices

GRI 103:

Management

Approach 2016



81


102-54 Claims of reporting in

accordance with the

GRI Standards

4, 115

102-55 GRI content index 115102-56 External assurance 5, 126


Topic-specific Standards

GRI 200: Economic Standards


GRICONTENT INDEX

GRI 300: Environmental Standards


Energy

GRI 103:

Management

Approach 2016



40


and its components

40


management approach

45

GRI 302:

Energy 2016

302-1 Energy consumption within

the organization

41

302-3 Energy Intensity 42

Materials

GRI 103:

Management

Approach 2016



35


and its components

35


management approach

35

GRI 303:

Materials 2016

301-1 Materials used by weight

or volume

35-36,

131-132


GRI 103:

Management

Approach 2016


and its components

81-82


management approach

81

GRI 204:

Procurement

Practices 2016

204-1 Proportion of spending on

local suppliers

81

Customer Service

GRI 103:

Management

Approach 2016


topic and its boundary

103


and its components

103


management approach

104


GRICONTENT INDEX



Water

GRI 103:

Management

Approach 2016



51


and its components

51-52


management approach

51

GRI 303: Water

2016

303-1 Water withdrawal by source 52-53

303-2 Water sources significantly

affected by withdrawal of

water

52-53

Biodiversity

GRI 103:

Management

Approach 2016



46


and its components

46


management approach

49

GRI 304:

Biodiversity

2016

304-1 Operational sites owned,

leased, managed in, or

adjacent to, protected areas

and areas of high biodiversity

value outside protected areas

46

304-2 Significant impacts of

activities, products, and

services on biodiversity

46, 50

Emissions

GRI 103:

Management

Approach 2016



40


and its components

40-41


management approach

45

GRI 305:

Emissions 2016

305-1 Direct (Scope 1)

GHG emissions

43, 135


GRICONTENT INDEX



GRI 305:

Emissions 2016

305-2 Energy indirect (Scope 2)

GHG emissions

43

305-3 Other indirect (Scope 3)

GHG emissions

43

305-4 GHG emissions intensity 44

305-7 Nitrogen oxides (NOx) sulfur

oxides (SOx), and other

significant air emissions

44

Effluents and Waste

GRI 103:

Management

Approach 2016



37-38, 51


and its components

37-38, 51,

56


management approach

39, 51, 56

GRI 306:

Effluents and

Waste 2016

306-1 Water discharge by quality

and destination

57, 133

306-2 Waste by type and disposal

method

37-38

306-4 Transport of hazardous waste 38-39

306-5 Water bodies affected by

water discharges

and/or runoff

133

Environmental Compliance

GRI 103:

Management

Approach 2016



33


and its components

33


management approach

34


GRICONTENT INDEX

GRI 400: Social Standards


Employment

GRI 103:

Management

Approach 2016



73


and its components

73


management approach

73

GRI 401:

Employment

2016

(containing

Standard

Interpretation 1)

401-1 New employee hires and

employee turnover

76

401-2 Benefits provided to full-

time employees that are not

provided to temporary or

part-time employees

77



GRI 307:

Environmental

Compliance

2016

307-1 Non-compliance with

environmental laws and

regulations

Non-compliance was limited

to late submission of reporting

requirements to a regulatory body.

This has since been rectified

and resolved.

Maynilad was required to pay a

penalty of USD 1,038 (1 USD =

53PHP) for late submission of the

Company’s Self-Monitoring Report

of 11 facilities to the Laguna Lake

Development Authority (LLDA).

Supplier Environmental Assessment

GRI 103:

Management

Approach 2016



81


and its components

81-82


management approach

81

GRI 308:

Supplier

Environmental

Assessment

2016

308-2 Negative environmental

impacts in the supply chain

and actions taken

In 2018, there were no

reported incidents of negative

environmental impact.


GRICONTENT INDEX



Labor/Management Relations

GRI 103:

Management

Approach 2016



79

GRI 103:

Management

Approach 2016


and its components

79


management approach

79

GRI 402:

Labor/

Management

Relations 2016

402-1 Minimum notice periods

regarding operational

changes

80

Occupational Health and Safety

GRI 103:

Management

Approach 2016



83, 92


and its components

83-84,

92-93


management approach

84, 86, 96

GRI 403:

Occupational

Health and

Safety 2018

403-1 Occupational health and

safety management system

83

403-2 Hazard identification,

risk assessment, and

incident investigation

85, 86

403-3 Occupational health services 85, 97

403-4 Worker participation,

consultation, and

communication on

occupational health

and safety

87

403-5 Worker training on

occupational health

and safety

87-88

403-6 Promotion of worker health 89

403-7 Prevention and mitigation

of occupational health and

safety impacts directly linked

by business relationship

86

403-8 Workers covered by an

occupational health and

safety management system

83

403-9 Work-related injuries 89

403-10 Work-related ill health 92


GRICONTENT INDEX



Training And EducationGRI 103:

Management

Approach 2016



78


and its components

78


management approach

78

GRI 404:

Training and

Education 2016

404-1 Average hours of training per

year per employee

7, 79

404-2 Programs for upgrading

employee skills and transition

assistance programs

87-88

Diversity and Equal Opportunity

GRI 103:

Management

Approach 2016



76-77


and its components

77


management approach

76-77

GRI 405:

Diversity

and Equal

Opportunity

2016

405-1 Diversity of governance

bodies and employees

75

Non-Discrimination

GRI 103:

Management

Approach 2016



77


and its components

77


management approach

76-77

GRI 406: Non-

discrimination

2016

406-1 Incidents of discrimination

and corrective actions taken

76


GRICONTENT INDEX



Freedom Of Association and Collective Bargaining

GRI 103:

Management

Approach 2016



79


and its components

79


management approach

79

GRI 407:

Freedom of

Association

and Collective

Bargaining

2016

407-1 Operations and suppliers in

which the right to freedom

of association and collective

bargaining may be at risk

No part of our operation

puts to risk the right of

association and collective

bargaining.

Local Communities

GRI 103:

Management

Approach 2016



105


and its components

105-106


management approach

106

GRI 413: Local

Communities

2016

413-1 Operations with local

community, engagement,

impact assessments, and

development programs

49, 106

Supplier Social Assessment

GRI 103:

Management

Approach 2016



81


and its components

81-82


management approach

81-82

GRI 414:

Supplier Social

Assessment

2016

414-1 New suppliers that were

screened using social criteria

82

414-2 Negative social impacts

in the supply chain and

actions taken

In 2018, there were no

reported incidents of

negative social impact.


GRICONTENT INDEX



Customer Health and Safety

GRI 103:

Management

Approach 2016



102


and its components

102


management approach

102, 104

GRI 416:

Customer

Health and

Safety 2016

416-2 Incidents of non-compliance

concerning the health and

safety impacts of products

and services

There were no incidents of

non-compliance concerning

the health and safety

impacts of products and

services.

Socioeconomic Compliance

GRI 103:

Management

Approach 2016



21


and its components

21


management approach

21

GRI 419:

Socioeconomic

Compliance

419-1 Non-compliance with laws

and regulations in the social

and economic area

There were no incidents of

non-compliance with laws

and regulations in the social

and economic area.


EXTERNAL ASSURANCE STATEMENT

This year, Maynilad continued the practice of having a panel of external stakeholders—experts and practitioners in the fields of social development and environmental sustainability—review the sustainability report. The assurance process allows Maynilad to determine whether it is giving a reasonable and balanced view of its sustainability performance.

External Assurance Statement

Maynilad uses the GRI Standards reporting framework and the assurance panel reviewed the report based on these guidelines. Beyond a review of the disclosures in the report, Maynilad’s engagement with the assurers also provides an opportunity to receive valuable feedback and insights on its performance. The external panel also gives recommendations that can help guide Maynilad as it pursues its vision of sustainable water solutions.

The panel is an independent body and the assurers were not involved in the preparation of the report. The members of the panel were engaged only for the conduct of the assurance. The review took place in June 2019, with two days of engagement with Maynilad on June 6 and June 10, 2019.

Scope and Limitations

The external assurance for the 2018 Maynilad Sustainability Report is limited in scope: two providers were appointed to review the environmental disclosures, and one provider to review social disclosures. Economic disclosures, which are audited by a third-party, were partially discussed during the course of the assurance. The scope of this assurance covers the disclosures under the environmental standard and social performance standard, as well as the management approach for these topics.

The panel reviewed the information presented under environmental and social categories, as well as the corresponding management approaches, for alignment with

the GRI Standards reporting requirements. This information was assessed in terms of adherence to the principles of GRI Reporting (materiality, stakeholder inclusiveness, sustainability context, and completeness).

The external panel received a copy of the manuscript and conducted a desktop review of the information presented therein. The GRI Standards served as the main guide for the assurance process. On the invitation of Maynilad, the panel also had the opportunity to meet key personnel at the Maynilad Head Office. This allowed them to ask questions and benefit from the knowledge of the data owners.

The complete findings and recommendations have been submitted separately to the

(102-56)



decision-makers and those involved in the preparation of the report.

Findings Maynilad recognizes its responsibility to its stakeholders and is therefore committed to communicating regularly on its sustainability performance. The sustainability report is a way for the Company to communicate its efforts to manage the environmental and social impact of its operations.

• With respect to Corporate Social Responsibility (CSR), Maynilad has aligned its activities in order to contribute to the achievement of the United Nations’ Sustainable Development Goals. Maynilad has been able to design programs that respond to the SDGs on Clean Water and Sanitation, Good Health, and Quality Education. The clean-up of Manila Bay and Laguna de Bay and desludging of septic tanks, which are continuing activities, also help Maynilad make progress on the SDG agenda.

There are also significant efforts to support community livelihood, particularly in the low-income areas that Maynilad serves. Specific to gender equality, the team recognizes the importance

of women in community organizations and the role they play in sanitation, and the proper use and conservation of water.

The Green Badge, Sining Ipo, Kapwa and Ginhawa Gardening contribute to SDGs Sustainable Cities and Communities, and Partnerships for the Goals. These activities are jointly conducted with the participation of LGUs and community organizations, including the Dumagat community, the indigenous community residing within the Ipo Watershed.

• Human resource management is critical to maintaining a high-performing workforce that is able to meet the demands of the business and maintain efficient delivery of quality service. As part of its commitment, Maynilad seeks to provide a competitive compensation and benefits package, as well as opportunities for growth and development within the organization. The organization is still actively hiring to fill positions that will enable it to achieve its business vision.

• Health and safety are important to Maynilad,

and the organization has established a system by which it can support the health and well-being of its workforce. The company implements all mandated safety and emergency preparedness. It requires that all its safety and emergency measures are also observed by its contractors. Maynilad observes all mandatory leave benefits, such as sick leave and vacation leave, as well as disability benefits and medical assistance.

• Maynilad continues to monitor and manage its environmental performance, with a particular focus on improving its energy use and efficiency, and waste management. A strong commitment to a low-carbon business process and to maintaining standards for environmental management are key in its quest for greater sustainability.

Recommendations

Human Resource Management

• Employee turnover. Maynilad should sustain its effective employee engagement efforts and continue seeking a better understanding of employee turnover. An analysis of turnover across positions, age, and gender



for a particular timeframe (annually, and over a period of three or five years), can help Maynilad continue to develop its employee engagement efforts.

• Gender equality. As is typical for the sector, there are more males than females in the Maynilad workforce, across positions and age groups. It is good to note that Maynilad has a policy on equal opportunity employment. It is also commendable that its job openings and advertisements utilize gender-neutral language and images.

A further analysis of the number and percentage rate of male and female applicants against those accepted across positions and age groups can give more insight into the Company’s performance in terms of equal opportunity hiring and help develop programs to promote inclusion and diversity. As a continuance of a previous recommendation, Maynilad could look further into measures that promote an environment that provides additional opportunities for women to move up the workforce ladder.

• Similarly, Maynilad can also continue to improve on its gender sensitivity in its approach to community activities. Maynilad has indicated that the cooperative-based water associations that they work with are often women-led. It is recommended that Maynilad, through its Advocacy and Business Area teams, continue to encourage the participation of both women and the elderly in setting up cooperatives and household-based livelihood projects.

• Going beyond mandatory requirements. This recommendation is carried over from the previous year. Maynilad should continue to comply with national policy, but also challenge itself to go beyond the minimum benefits required by law, e.g., the parental leave benefit.

Corporate Social Responsibility

• Through its CSR program, Maynilad is able to respond to national government directions, and the expressed needs of stakeholder communities. Maynilad should focus on strengthening and expanding the CSR programs that are linked to its core services and that would have a direct

impact on its business goals. This would make a stronger business case for increasing funding support to these programs.

Additional funding support will not only demonstrate a commitment to CSR, but also allow Maynilad to expand coverage of its programs to reach more people and amplify its effects.

Effective CSR programs require rigorous monitoring and evaluation. Strengthening its monitoring and evaluation systems will enable Maynilad to better assess its social performance and contribution to the Sustainable Development Goals. More clearly communicated targets and objectives will ensure that Maynilad is able to track the effectiveness of its CSR activities.

Environmental Management

• As far as tracking and monitoring its environmental performance, Maynilad can continue to expand its coverage of metrics. While there are increasing number of facilities reporting on waste, for example, they can also begin to give attention to the water and energy consumption of its Business



Areas. It is hoped that Maynilad also consider the panel’s recommendations (from the previous year, as well as this year) to improve the Company’s sustainability performance in the future.

• Continue to shift facilities to renewable energy. It is commendable that Maynilad’s operating units have energy management plans and directions, and that they are pursuing the adoption of renewable energy sources. It would also be good if Maynilad further increase its renewables adoption and consider shifting facilities not directly involved in water production to renewable energy, similar to the Maynilad Safety Center. This would help the Company move toward aligning itself with Republic Act 11285, or the Energy Efficiency and Conservation Act. The company is a Type 2 designated establishment, with an annual energy consumption of over 4,000,000 kWh, and therefore is covered by the new regulation, although it is understandable that full compliance will take time.

• Greening the supply chain. With its scale of operations and financial resources, Maynilad is in a position

to influence its network of vendors to adopt environmentally responsible practices.

The previous year’s recommendations noted that Maynilad should strive to extend its influence and work toward greening its supply chain, given that it works with a network of vendors. The panel recognizes the Company’s efforts to establish systems for vendor evaluation and accreditation. These should be continued and strengthened in order to ensure that Maynilad’s suppliers are selected, not only for their capacity to perform the required functions, but for their social and environmental management and responsibility.

Solid waste management. While Maynilad has moved forward in terms of more of its facilities tracking and reporting on solid waste, efforts should be made to establish a system that will not result in storage of waste for long periods of time. Waste storage may result in emissions that will contribute to the organization’s overall emissions, but this would still need to be verified.

Reforestation programs. Maynilad has made good strides in its reforestation programs. It can further improve on its results by setting evidence-based targets for reforestation. Maynilad can also consider partnering with other organizations to do follow-up measurements of carbon sequestration.

It is a good practice to develop roadmaps to indicate goals and targets and key performance indicators. Such tools enable organizations to effectively monitor progress and evaluate sustainability performance. Maynilad can also adopt this strategy to guide its sustainability efforts, particularly in energy, solid waste, and reforestation.



The Panel

TERESITA G. CAMACHO has extensive

experience in managing social

development projects in both

government and non-government

organizations. She served as Head

of the Communications and Public

Relations Committee of the National

Anti-Poverty Commission (NAPC),

under the Office of the Secretary

for four years, where she conducted

field monitoring and evaluation

for various projects, including the

Bottom-up Budgeting, Salintubig, and

the Comprehensive Agrarian Reform

Program. She has also coordinated,

led, and organized activities to bring

together government agencies

and basic sectors, to deliver basic

social services to poor sectors

and communities, with the active

engagement of involved citizens.

She has served as part of the

External Assurance Panel of the 2016

UnionBank Sustainability Report,

Driven By A Higher Purpose. In 2019,

Ms. Camacho also conducted research

on inclusivity in Disaster Risk

Reduction for HelpAge International.

KATHLEEN B. AVISO, Ph.D. is currently

serving as a full professor of the

Chemical Engineering Department

at De La Salle University, Manila,

Philippines. She is an author, with

over 80 published and forthcoming

Scopus indexed publications

with an h-index of 19, including

50 journal papers, with 8 papers

having 40 or more citations, and

has published 2 book chapters

on energy systems modeling. Her

research interests lie in sustainable

process networks, intelligent

decision analysis for selection of

sustainable technologies, life cycle

assessment and environmental

(carbon and water) footprint analysis,

input-output modeling of industrial

systems for climate resilience, and

novel optimization models for green

process design.

LUDWIG O. FEDERIGAN has an

academic background in science

(engineering) and management

(business administration). A 2017 Yale

Sustainability Leadership Fellow, he

is currently the Executive Director

of the Young Environmental Forum

and part of the Climate Reality

Leadership Corps of The Climate

Reality Project (Philippines). He

has written and published over 60

articles on environmental issues,

climate change, sustainability and

leadership in his weekly column,

All About Choices, in the Green

Industries Section of the country’s

oldest newspaper, The Manila Times.

He is one of the Expert Reviewers

of the first order draft of the

Intergovernmental Panel on Climate

Change (IPCC) Special Report on

Global Warming of 1.5ºC (SR15) and

one of the external assurer of the

Maynilad Water Services Inc.’s 2017

Sustainability Report.

He was formerly the Treasurer

and Vice-President for Business

Operations of the World Wide Fund

for Nature (Philippines), and have

served as a member of the World

Wide Fund for Nature (WWF) Asia-

Pacific Finance & Operations Group.


ANNEX

Annex

Chemical(Non-renewable)

Amount used forwater production

(in MT)

2015 2016 2017 2018

Aluminum sulfate 6,341.86 8,979.82 5,399.83 10,649.44

Liquid chlorine 1,854.36 1,965.20 1,884.00 1,936

Non-ionic polymer 2.50 4.10 4.42 4.51

Cationic polymer 17.33 23.11 17.73 33.399

Polyaluminum chloride 1,871.14 2,707.08 3,146.66 4,839.85

Powdered activated carbon 54.70 80.00

Calcium hypochlorite 3.72 9.70

Aluminum chlorhydrate 955.40 1,303.38 1,843.07 1,718.99

Sodium hypochlorite 4,368.68 1,547.19 940.82 3,225.83

Sodium hydroxide, 25-30% 991.55 729.55 534.57 1,089.79

Sodium hydroxide, 50% 41.31

Citric acid 281.18 288.40 145.68 188.07

Sodium bisulfite 47.28 77.80 30.46 74.66

Anti-scalant 12.97 23.77 11.54 9.89

Potassium permanganate 16.83 63.95 100.51 67.15

Sludge polymer 0.18 0.11 0.01

Hydrochloric acid, 30% 80.66 179.54 67.17 80.77

Hydrochloric acid, 15% 67.00 96.42 55.97 59.88

TOTAL 16,912.63 18,095.12 14,262.43 23,978.24

Intensity in tonne chemicals used per water

produced (tonne/million liters)

0.0206 0.0209 0.0157 0.0273

(301-1)

Table 1. Amount of Non-renewable Chemicals used for water production

Go back to page 36


ANNEX

Chemical(Non-renewable)

Amount used for wastewater treatment(in MT)

2017 2018

Sodium Hypochlorite 650.13 941.78

Calcium hypochlorite 96.38 22.98

Polymer 37.82 35.19

PACI 540.55 494.50

Ferric Chloride 75.00 0.00

Enzyme 0.00 0.61

Powdered AC 0.49 0.00

Aluminum Sulfate 33.80 118.87

TOTAL 1,434.17 1,613.95

(301-1)

Table 2. Amount of Non-renewable Chemicals used for wastewater treatment

PL ANTATION ID LOCATION

TREE SEEDLING SURVIVAL

(in kilograms)

carbon stock(tonnes C/ha)

Plantation area (ha)

RANGE MEANABOVE

GROUNDBELOW

GROUND

SITIO DAM (IPO 1)

San Mateo,

Norzagaray, Bulacan

16.27 to 45.78 31.12 83.77 12.57 1.6

ISLA MANGGA (IPO 2) 18.67 to 66.87 47.11 6.43 0.96 2.61

ISLA PAPAYA (IPO 3) 19.28 to 103.61 46.00 6.61 0.99 18.58

SITIO ANGINAN (IPO 4) 16.87 to 121.69 44.96 8.89 1.33 64.0

SITIO SANTOL (IPO 5) 15.06 to 78.31 21.08 9.99 1.50 28.8

SUMUSULAK/ BAYUKBOK (IPO 6) 20.48 to 115.66 56.43 10.67 1.60 23.8

SITIO PAKO (IPO 7) 6.02 to 107.83 42.91 27.30 4.19 21.0

KAMACHILE (IPO 8) 9.64 to 48.80 29.52 18.9 2.84 11.9

AVERAGE 39.89 % 172.56 25.98

172.29

TOTAL CARBON STOCK/HA 198.54

Table 3. Evaluation of Plant for Life Program

Go back to page 36

Go back to page 49


ANNEX

AREA/FACILIT Y/

BUILDING

TECHNOLOGY USED DISCHARGE

LOC ATION/

RECEIVING

BODY OF

WATER

2016 2017 2018

Tondo Sewage Pumping Station

Grit Removal & Aeration System

Manila Bay 39,762,385 41,111,458 41,647,366

Paco WRF Johkasou Estero De Santibañez

109,306 107,920 86,542

Alabang WRF Conventional Activated Sludge

Pasong Diablo River

1,612,081 2,670,377 2,743,894

Dagat-dagatan WRF Waste Stabilization Pond

Maypajo Creek 718,761 704,768 707,420

Congressional WRF STM Aerotor Culiat Creek 192,229 176,111 199,135

Baesa WRF Sequencing Batch Reactor

Dario Creek 137,689 152,273 79,540

Legal WRF Sequencing Batch Reactor

Dario Creek 234,479 203,858 188,034

Grant WRF Sequencing Batch Reactor

Dario Creek 245,802 251,958 256,985

Tandang Sora WRF STM Aerotor Dario Creek 300,025 403,779 314,473

Bahay Toro WRF Moving Bed Bioreactor Dario Creek 1,621,018 1,596,656 1,499,299

Bagbag WRF Sequencing Batch Reactor

Dario Creek 3,545,322 3,516,065 3,289,462

San Antonio WRF Moving Bed Bioreactor San Franciso River

274,652 731,897 666,008

Del Monte WRF Moving Bed Bioreactor San Franciso River

769,248 691,533 710,179

Paltok WRF Moving Bed Bioreactor Maribolo Creek 1,475,169 1,340,466 1,310,623

Samson WRF STM Aerotor San Franciso River

442,809 336,391 321,079

Kapiligan WRF Moving Bed Bioreactor San Juan River 1,479,785 856,753 714,990

Talayan WRF Conventional Activated Sludge

Talayan Creek 2,984,959 2,636,396 4,511,005

Tatalon WRF Sequencing Batch Reactor

San Juan River 1,580,749 1,448,899 1,741,312

Veterans WRF Sequencing Batch Reactor

Culiat Creek 494,837 552,868 578,059

Pasay WRF Conventional Activated Sludge

Maricaban Creek

n/a n/a 2,433,348

TOTAL 57,981,304 59,490,425 63,998,752

Table 4. Water discharge by quality and destination incubic meters

(306-1, 306-5)Go back to page 57


ANNEX

APPLICATION FOR NEW WATER

SERVICE CONNECTION 2015 2016 2017 2018

Received 49,900 46,628 42,081 41,231

Resolved (w/in 5 calendar days) 49,579 46,339 42,038 41,231

Target resolution rate 95% 95% 95% 95%

Actual resolution rate 99.36% 99.38% 99.90% 100%

Related CSAT Score 3.12 3.52 3.83 3.99

INSTALL ATION OF NEW WATER

SERVICE CONNECTION2015 2016 2017 2018

Received 41,173 37,476 30,121 28,785

Resolved (w/in 7 days) 40,205 37,050 30,080 28,785


Actual resolution rate 97.65% 98.86% 99.86% 100%


CUSTOMER SERVICE COMPL AINTS 2015 2016 2017 2018

Received 35,922 57,898 54,185 60,894

Resolved 40,205 37,050 30,080 28,785

(w/in 10 calendar days) 34,626 56,904 54,031 60,710


Actual resolution rate 96.39% 98.28% 99.72% 99.70%


CUSTOMER BILLING COMPL AINTS 2015 2016 2017 2018

Received 60,417 56,735 56,652 42,919

Resolved 40,205 37,050 30,080 28,785

(w/in 10 calendar days) 55,606 55,958 56,337 42,825


Actual resolution rate 92.04% 98.63% 99.44% 99.78%


Table 5-8. Customer management

Go back to page 104


ANNEX

GHG Emissions(in tonnes CO2e)

Direct (Scope 1)

2015 2016 2017 2018

4,768.51

4,278.94

4,746.10

7,061.13

Vehicles

Engines/

Generators

Others

TOTAL

4,529.82

3,498.67

3,067.30

2,923.22

2,145.43

911.02

439.60

731.87

385.89

336.41

772.03

1,113.42

(305-1)Go back to page 43

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