Prudent financial management is key to EDC’s operations. Our strong financial position is maintained through healthy cash flows from long-term contract agreements. This allows us to finance the expansion of our portfolio, improve the profitability of energy projects in the pipeline, and provide regular returns to shareholders. We continuously evaluate and improve our treasury, financial, accounting and budgeting systems to tighten fiscal control, and promote corporate governance, and better risk management.

EDC implements an extensive capital expenditure program to maintain optimum availability and reliability of all our power generating assets. This includes upgrading activities, as well as investments in climate-proofing and resiliency.

We comply with corporate governance rules and regulations and submit regular reports as required by the Securities and Exchange Commission and to our shareholders.

To uphold our commitment to responsible business, EDC assesses its risks through its Enterprise Risk Management Program. This is also aligned with ISO 31000 on risk management. EDC conducts an annual review of operational risks as part of its planning and budgeting process. Should the risks be assessed as high, EDC will formulate corresponding risk treatment plans in response and escalate it to the appropriate Management or Board Committee. This will be continuously monitored to ensure that it is properly addressed.

EDC has a nationwide presence, with facilities located in Luzon, Visayas, and Mindanao that have a combined current installed capacity of 1,476.6 MW. Our headquarters are located in Manila, but we hire from the areas where we operate. Where possible, we prioritize qualified applicants from our host provinces for employment. EDC complies with current wage orders and minimum wage standards, and benchmarks its offers against the industry average.

Apart from employment, EDC also contributes to the local economies where we operate by engaging with locally-based suppliers. We also work closely with our community organizations and cooperatives and implement programs to build their capacity for economic participation.

We have a diverse customer base that includes commercial and institutional clients, as well as directly connected customers. We provide power to electric cooperatives and distribution utilities, who in turn supply to commercial, residential, and industrial customers. EDC also provides electricity to businesses through its subsidiaries that are licensed retail electricity suppliers.

EDC builds strong and healthy relationships with its customers. We seek to provide them with flexible contract terms, value-added services, and guidance, as they make the transition to renewable energy. We assess and evaluate our performance in delivering energy to our customers and use this to further strengthen and improve our services to them. This helps promote customer satisfaction and retention.

Providing clean and reliable energy to our customers boosts their productivity and enables them to engage in economic activities. Aside from this benefit, EDC also implements programs to engage and empower our community stakeholders to become agents of their own development.

We elevate our communities and the environment through initiatives and direct investments in education, enterprise development, biodiversity conservation, watershed management, and environmental management. We also provide royalty payments for host communities where our power projects are located. As our services are dependent on the health and stability of the environment, we also invest in ecosystem services for the management of the watersheds in our project sites.

EDC conducts bi-annual social acceptability surveys to evaluate our performance. We also monitor key Corporate Social Responsibility (CSR) performance indicators. This allows us to assess the effectiveness of our initiatives and helps us refine our activities to contribute to lasting inclusive growth and self-reliance for our partner communities.

EDC works with a network of suppliers and contractors who enable us to run our operations and conduct our activities. The quality of the vendors we engage has implications on our success.

EDC’s approach to Supply Chain Management involves strategic sourcing and optimized inventory levels to ensure reliable and uninterrupted supply of goods and services necessary for our operations. Vendor accreditation, spend analysis and market studies, and warehousing and logistics are all components of EDC’s supply chain management.

With respect to vendor selection, our decisions are based on price, technical capability, safety practices, and industry expertise. EDC has accreditation requirements with which potential vendors must comply. They must also demonstrate their financial capacity to provide the goods and services needed and their long-term business sustainability. In line with our priority of creating Shared Economic Value, EDC promotes economic inclusion by practicing local purchasing to qualified locally based suppliers and contractors.

We maintain open and regular lines of communication with our vendors’ assemblies at each of our business units,, including at our Head Office. We manage and evaluate our performance in this area through regular monitoring and benchmarking, as well as through the practice of internal and external audits.