Company: MERALCO, Metro Manila, Philippines
Company Description: Meralco is the largest electric distribution utility in the Philippines. Headquartered in Pasig City, the Company provides energy to the entire areas of Metro Manila, Bulacan, Cavite, and Rizal as well as to parts of the provinces of Batangas, Laguna, Pampanga, and Quezon. Business operations cover about 9,685 square kilometers, reaching nearly 7.41 million customers.
Nomination Category: Sustainability Categories
Nomination Sub Category: Sustainability Leadership Award - in Asia, Australia and New Zealand
 Nomination Title: Meralco
- Which will you submit for your nomination in this category, a video of up to five (5) minutes in length about the achievements of the nominated organization since 1 January 2021, OR written answers to the questions for this category? (Choose one):
Written answers to the questions
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the nominated video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video.
- If you are providing written answers for your submission, you must provide an answer to this first question: Briefly describe the nominated organization: its history and past performance (up to 200 words):
Total 198 words used.
Meralco is the largest electric distribution utility in the Philippines. Its mission is to provide customers the best value energy solutions—reliably, affordably, superbly, and sustainably. To drive the fourth mandate, Meralco embarked on its sustainability journey in 2019, placing sustainability atop its corporate agenda and at the core of its strategy and operations. The company thus established a dedicated Sustainability Office and broke ground with important initiatives such as the company-wide ban on single-use plastics.
In 2020, Meralco introduced its overarching sustainability agenda, Powering the Good Life (PGL), which is deeply rooted in the United Nations’ Sustainable Development Goals. PGL is marked by a distinctive focus on four pillars—Power, Planet, People, and Prosperity.
In support of PGL, Meralco launched various groundbreaking initiatives under each pillar. These include the Green Mobility program aimed at electrifying the company’s vehicle fleet. Another initiative launched is the Race to Zero Waste with the goal of minimizing waste and increasing the waste being diverted away from landfills. Meralco also launched Resource Conservation and Efficiency Program focused on reducing its own-use electricity and water consumption.
The company also established baseline metrics and identified targets to measure and monitor the company’s sustainability progress moving forward.
- If you are providing written answers for your submission, you must provide an answer to this second question: Outline the organization's achievements since the beginning of 2021 that you wish to bring to the judges' attention (up to 250 words):
Total 241 words used.
Beginning 2021, the company set its sights in elevating and evolving its sustainability agenda. Thus, Meralco crafted its Long-term Sustainability Strategy (LTSS) outlining three horizons through which it will play out its just, orderly, and affordable transition to clean energy, ultimately becoming coal free before 2050.
In line with LTSS, Meralco made twin commitments: build 1,500MW of renewable energy (RE) capacity and secure 1,500MW of RE supply by 2030. Towards these goals, Meralco already has an RE pipeline exceeding 1,700MW and clean energy contracts totaling 1,880MW.
Meralco also drove impact in the aforementioned sustainability programs. By end-2022, vehicle electrification climbed to 7%, on track to reaching 25% by 2030. Moreover, Meralco achieved its all-time-high waste diversion rate of 96% in 2022 vs. baseline of 17% in 2019. Meralco also reduced its energy and water consumption in its head office by almost 3% and 5%, respectively.
In support of a comprehensive agenda, Meralco established new programs focused on People and Prosperity. Through #Mbrace Diversity and Inclusion Program, Meralco attained 22% women representation, nearly twice the global energy sector average of 13%. Meralco also launched Meralco Supplier Sustainability Scorecard (MS3) wherein vendors are assessed on sustainability criteria for their continued accreditation with Meralco. Today, 93% of Meralco’s top suppliers are compliant with its sustainability standards.
Moreover, Meralco institutionalized its sustainability governance by establishing a Board-level Sustainability Committee and by forming the Sustainability Champions comprised of senior managers across Meralco.
- If you are providing written answers for your submission, you must provide an answer to this third question: Explain why the achievements you have highlighted are unique or significant. If possible compare the achievements to the performance of other players in your industry and/or to the organization's past performance (up to 250 words):
Total 222 words used.
Meralco’s array of initiatives have been instrumental in transforming Meralco from a laggard into a recognized leader in sustainability. This is clearly evidenced by all-time best ESG scores and recognitions across the board.
In 2022, Meralco’s ESG rating was upgraded by MSCI—a multinational investment research firm which assesses over 8,500 companies around the world—to an all‐time best BBB following a baseline B rating in 2018.
Furthermore, Meralco upgraded its CDP Climate Change and Water Security scores from previous years’ F to C in 2022.
Meralco was likewise recognized as one of the most socially and environmentally responsible companies worldwide by UK-based FTSE Russell, making it the second Philippine power company to become a constituent of the FTSE4Good Index Series. Beyond qualifying for inclusion, Meralco also topped the Philippine and global energy sector average ratings.
On the gender inclusion front, Meralco has been recognized as an official member of and the first Philippine utility in the Bloomberg Gender Equality Index.
Lastly, Meralco was included in the World Benchmarking Alliance’s (WBA) SDG2000, a collection of the most influential companies globally that are well-positioned to drive the world towards the fulfillment of the SDGs.
These achievements and recognitions have clearly shown how Meralco has deeply ingrained sustainability in the core of its business objective, cementing itself as a sustainability leader in the energy industry.
- You have the option to answer this final question: Reference any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
Total 207 words used.
Question A.
Attachment 1. Consolidated reference. Contains:
- One Meralco Sustainability Agenda: Powering the Good Life
- Green Mobility Program Brief
- Race to Zero Waste Program Brief
- Resource Conservation and Efficiency Brief
- Corporate Sustainability Metrics
- Sustainability Reports: Awards and Recognitions
Question B.
Attachment 2. SEC 17-A 2022 with Sustainability report. Contains:
- Long-term Sustainability Strategy – includes details on horizons and progress of twin commitments (Pages 487 to 492)
- Green Mobility Program Progress (Page 508)
- Race to Zero Waste Progress (Pages 514 to 515)
- #Mbrace Diversity and Inclusion Program Progress (Pages 518 to 520)
- Meralco Supplier Sustainability Scorecard Progress (Pages 540 to 541)
- Sustainability Governance: Sustainability Committee and Sustainability Champions (Pages 579 to 580)
Question C.
Attachment 3. Press Release on Financial and Operating Results for the year ended December 31,2022, Pages 12-13, “Meralco achieved all-time best ratings in 2022 ESG assessments; continued to advance core sustainability initiatives” – provides details on the latest achievements of Meralco covering improvements in ESG ratings and important progress on sustainability initiatives
URL 1. “Meralco recognized for ESG excellence, now a FTSE4Good constituent” – news on the inclusion of Meralco in the FTSE4Good Index Series—a set of global sustainability indices that measure the performance of companies in key environmental, social, and governance (ESG)
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