(Stock Code: 00142)

Environmental, Social and Governance Report 2016

Contents
  1. About First Pacific 1
  2. About this Report 6

    1. Overview 6

    2. Scope of this Report 6

    3. Reporting Reference 6

    4. Endorsement and Approval 6

    5. Feedback to this Report 6

    6. Message from the Chief Executive 7
    7. Our ESG Approach 10

      1. CG Committee 10

      2. Stakeholder Engagement 10

      3. Materiality of First Pacific 12

      4. Governance and Management 15

        1. Governance Framework 15

        2. Whistleblowing Policy 15

        3. Board Diversity 16

        4. Directors' Training 16

        5. Board Committee 16

        6. Risk Management and Internal Control 17

        7. Communications with Shareholders 17

        8. Environmental Responsibility 18

          1. Environmental Policy 18

          2. Emissions 18

          3. Use of Resources 19

          4. The Environment and Natural Resources 20

          5. Employment and Labour Practices 21

            1. Employment 21

            2. Labour Standards 22

            3. Anti-corruption 22

            4. Health and Safety 23

            5. Development and Training 23

            6. Products and Services 24

              1. Product Responsibility 24

              2. Supply Chain Management 24

              3. Community Development 25
              4. Examples of First Pacific Group of Companies' ESG Reporting 26
                5. Appendix I - ESG Reporting Guide Content Index 28 Appendix II - GRI Content Index 30 1 About First PACiFiC

                First Pacific Company Limited ("First Pacific" or "the Company") is headquartered in Hong Kong Special Administrative Region ("Hong Kong SAR") where our shares are listed on the Stock Exchange of Hong Kong Limited ("SEHK") under stock code 00142. We are an investment management and holding company with operations located in Asia-Pacific. Our principal business interests relate to consumer food products, infrastructure, natural resources and telecommunications.

                Our mission is to invest responsibly and unlock and enhance value in the companies under our stewardship by:

                • Delivering dividend/distribution returns to shareholders;

                • Delivering share price/value appreciation of First Pacific and our investee companies; and

                • Making further investments in our businesses taking into consideration all relevant criteria, including Environmental, Social and Governance ("ESG") factors, to better manage risk and generate sustainable long-term returns.

                  Our investment criteria are based on principles of responsible investing, including ESG factors, and they are:

                • Investments must be related to our areas of expertise and experience (consumer food products, infrastructure, natural resources and telecommunications);

                • Investments must meet not only our criteria on potential financial returns, but also our minimum requirements on ESG;

                • Investee companies must have a strong or dominant market position in their sectors;

                • They must possess the potential for significant cash flows; and

                • We must obtain management control or significant influence to ensure our goals can be met.

                  Our strategies are threefold:

                • Identify undervalued or underperforming assets with strong potential for growth and synergies;

                • Manage investments by setting strategic direction, developing business plans and defining targets; and

                • Raise standards to world-class levels at the investee companies including a strong focus on ESG.

                First Pacific's shares are also available for trading in the United States through American Depositary Receipts under ticker FPAFY. Our main source of income is dividends from our investments.

                Consolidated revenues in the year ended 31 December 2016 amounted to US$6.8 billion while recurring profit was US$264.9 million and reported net profit was US$103.2 million. Total equity amounted to US$8.0 billion and total assets were US$17.2 billion. At the end of 2016, First Pacific Head Office had gross debt of US$1.8 billion and net debt of US$1.5 billion.

                First Pacific's portfolio has a balance of more mature assets in PLDT Inc. ("PLDT") and PT Indofood Sukses Makmur Tbk ("Indofood") which deliver steady dividend flows allowing investment for growth in Metro Pacific Investments Corporation ("MPIC"), Goodman Fielder Pty Limited ("Goodman Fielder"), Philex Mining Corporation ("Philex"), PacificLight Power Pte. Ltd. ("PLP") and Roxas Holdings, Inc. ("RHI").

                PLDT is the dominant telecommunications services provider in the Philippines and Indofood is the largest vertically integrated food company in Indonesia. MPIC is the Philippines' largest infrastructure investment management and holding company with investments in the Philippines' largest electricity distributor, toll road operator, water distributor, hospital group and rail, as well as the largest electricity generator in the Visayas region of the Philippines. Goodman Fielder is a leading food company in Australasia. Philex is one of the largest metal mining companies in the Philippines, producing gold, copper and silver. PLP is the operator of one of Singapore's most efficient gas-fired power plants and RHI runs an integrated sugar and ethanol business in the Philippines.

                As at 31 December 2016, the gross asset value ("GAV") of First Pacific's investments is valued at US$7.2 billion, with the following geographic breakdown:

                Philippines

                53%

                Indonesia

                36%

                Australasia

                8%

                Singapore

                3%

                GAV is made up of the attributable market capitalization of First Pacific's listed investments plus the investment or carrying costs of unlisted investments.

                As at 31 December 2016, First Pacific's economic interest in PLDT was 25.6%, in Indofood 50.1%, in MPIC 42.0%, in FPW Singapore Holdings Pte. Ltd. ("FPW"), the parent company of Goodman Fielder, 50.0%, in Philex 31.2% (Two Rivers Pacific Holdings Corporation, a Philippine affiliate of First Pacific, holds an additional 15.0% economic interest in Philex), in FPM Power Holdings Limited ("FPM Power"), the parent company of PLP, 67.8% and in FP Natural Resources Limited ("FP Natural Resources"), the parent company of RHI, 79.4%.

                First Pacific is a member of the Hong Kong Management Association. Looking ahead, the Company plans to coordinate with other Group operating companies to work towards membership of leading ESG organizations whose aims are to promote responsible and sustainable investment.

              First Pacific Company Limited published this content on 14 July 2017 and is solely responsible for the information contained herein.
              Distributed by Public, unedited and unaltered, on 14 July 2017 04:19:07 UTC.

              Original documenthttp://www.firstpacific.com/media/normal/16002_LTN20170714167.pdf

              Public permalinkhttp://www.publicnow.com/view/5CB25C42492942DD23387D205F36D465EF5F5598