The Aboitiz Group operates and manages the interests of its stakeholders through checks and balances that enable the Board of Directors to exercise appropriate control and oversight responsibilities on the environmental and social aspects of the business.
At the helm of the Group’s corporate governance framework are the Boards of Directors who perform the crucial role of articulating and assessing each company’s purpose, vision and mission, and strategies to carry out its objectives. In line with best practices, the Boards of Directors are responsible for establishing and monitoring the Group’s commitment to the principles embodied in environment, social and governance matters (ESG).
Our leadership commitment to continuously improve ensures the Boards' oversight of the Environmental, Social and Corporate Governance (ESCG) committee.
The Group’s Sustainability Report outlines the coordinated efforts of the sustainability stewards and ESG principals in the business units to improve and enhance the Group’s performance on team member engagement and development, corporate social responsibility, customer focus, disaster resilience, carbon emissions reduction, resource efficiency, renewable energy, waste management, financial growth, and financial returns.
Meanwhile, the Group’s Consolidated Annual and Sustainability Report sets out its values and governance model and demonstrates the link between the Group’s strategy and its commitment to a sustainable global economy. Through the consolidated report, Aboitiz is able to measure, understand, and communicate its economic, environmental, social, and governance performance.
The Code of Ethics and Business Conduct (Code) outlines how the executive management, team leaders, and team members can achieve and maintain ethical standards in the Group’s day-to-day operations; as well as summarize the Group’s fundamental policies and directives.
View the Code Of Ethics & Business Conduct
The rights of shareholders are of paramount importance in the AEV By-laws, Codes of Ethics, and Manuals. The goal is to ensure the protection of shareholder interests and concerns through the free exercise of shareholder rights.
View the Rights of ShareholdersThe Manual on Corporate Governance (Manual) is the corporate governance charter of the Company. It is a clear statement by the Company, its Board of Directors, Management, Employees and Shareholders, that corporate governance is a necessary component of sound strategic business management. The Manual was approved by the Board at its regular meeting on August 14, 2002. The Manual has since been reviewed, revised, updated and amended by subsequent Board actions in keeping with evolving best practices in the Philippines and the ASEAN Region. The Group’s governance framework and practices are codified in the Manual of Corporate Governance. These contain the Group’s plan to comply with the Organization for Economic Cooperation and Development (OECD) principles on corporate governance, and are regularly reviewed and updated to ensure that these are at par with the best corporate governance practices.
Our Whistleblowing Policy implement the commitment of the company, along with all of our subsidiaries and affiliates to our core values under the Aboitiz Group Code of Ethics and Business Conduct. At Aboitiz Group, a commitment to the highest standards of ethics and our core values is non-negotiable. It is therefore critical that Aboitiz Group fosters an environment wherein all Employees, Business Partners and other stakeholders are encouraged to report in good faith any wrong doing within the company; free from fear of discrimination, harassment or retaliation.
Matters reported through the whistleblowing platform are discussed by the ESCG Committees and, if necessary, by the entire Board of Directors.
Whistleblowers have the option to report anonymously through our Whistleblowing Portal or send email to whistleblowing.system@aboitiz.com.
Contact us to learn more about our sustainability policy.
As a testament to this commitment, AEV has signed on as the first Philippine company to support the Task Force on Climate-Related Financial Disclosures (TCFD) in 2019.
The company shall embark on enhancing our transparency on the following:
- Governance on Climate-Related Risks and Opportunities
- Actual and potential impacts of climate-related risks and opportunities on the organization’s business strategy and financial planning based on materiality
- Organizational processes to identify, manage, and assess risk
- Targets and Metrics used to assess and manage relevant climate-related risks and opportunities based on materiality
The Group Risk Management has the crucial four-pronged role of developing risk management policies, procedures, guidelines, and structures; implementing processes for assessing, treating, monitoring, and reporting risk; providing value-adding information for strategic decision-making; and instilling risk culture within the Group.
The Aboitiz Group’s 2020-2022 Risk Roadmap aspires to sustain Level 4 Risk Management Maturity that builds upon advances in digital transformation and data-driven decision-making in order to achieve enterprise resilience. Risk Maturity Level 4 would involve a clear understanding of key risks to the organization and the consistent execution of activities to address these risks.
The Aboitiz brand promise of advancing business and communities embodies the Group’s approach to sustainability—to look beyond profitability and towards standards that assess benefit, efficiency, and success in achieving stakeholder expectations.
The Group’s Internal Audit has adopted combined assurance and the Three Lines of Defense approach implemented across the Aboitiz Group. Combined assurance is defined by the Institute of Internal Auditors as the integration and alignment of assurance processes. This allows our senior management, internal audit, and supervisory committees to get a comprehensive and holistic view of the effectiveness of our organization’s governance, risks, and controls. The information enables us to set priorities and take any necessary actions.
The company abides by the applicable laws on lobbying interests in accordance with:
- Republic Act No. 1827 “An Act to Regulate Lobbying in the Congress of the Philippines and in the Commission on Appointments,”
- Republic Act 11232 “Act Providing for the Revised Corporation Code of the Philippines,”
- Omnibus Election Code of the Philippines.
The company in its conduct of business does not provide any monetary contributions for the following activities:
- Political campaigns, ballots, measures, or referendums
- Political organizations whose role is to influence political campaigns or legislative activities
- Policy Lobbying Groups
The Aboitiz Group believes in and adheres to the fundamental principles of good governance. We believe in paying the correct taxes on time and complying with all administrative and reportorial requirements. We recognize that transparent engagement with our stakeholders is critical to the creation and sustainability of long-term value for our business.
Guided on tax matters by the Tax Committee chaired by the Group Chief Finance Officer, the Group commits to:
- Contribute our share to the country’s economic development efforts by paying the correct taxes on time;
- Create, implement, review, and enhance business processes to efficiently comply with applicable tax regulatory requirements;
- Adopt sustainable tax principles, philosophies and best practices that are aligned with the overall Group’s goals and strategies;
- Engage with stakeholders with transparency and establish a cooperative relationship with tax authorities in jurisdictions where we operate; and
- Keep our business partners’ trust and confidence by operating with transparency and accountability.
We monitor and function as an added layer of checks and balances in respect of the Group’s compliance with tax filings, payments, as well as of records retention and management. There are periodic discussions to ensure and promote uniformity of best practices and position across the group.
We continuously educate ourselves to keep up with tax, legal, and business developments in the industries as well as tax jurisdictions applicable to the Group’s portfolio. To ensure that the Group is updated and compliant with the new tax rules and regulations, we actively identify and immediately address competency gaps, consistently advocate for continuous learning & development, review existing policies & controls, and where appropriate, consult our external advisors.
