2012 Sustainability Report
2012
Sustainability
Report
Linking
Business with
Society
a
b
Petron Corporation
2012 Sustainability Report
Contents
Message of the Chairman and the President
The Business of Petron
Awards and Recognition
About Our Report
Economic Performance
Environmental Performance
Social Performance
The Business Case for Sustainable Dealership: 2
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An Interview with Mr. Archie B. Gupalor,
Vice President for National Sales Division
Greening the Supply Chain
View Forward
Petron Sustainability Council 2013
Independent Assurance Report on the 68
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2012 Sustainability Report of Petron Corporation
Global Reporting Initiative Index (with reference to 82
ISO 26000 guidelines)
Spotlight
Leading By Greening: Petron Service Stations
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Set Themselves Apart
“I Love Boracay… For Boracay I Will”: Petron Makes Our Cover
Makes Safety Second Nature
Our communities grow as we grow.
Breaking the Cycle of Poverty through Whether through the continued expansion
of our business, our faithful service to our
customers, fueling hope in the lives of those
we serve, or taking excellent care for our
environment, we make sure that we strengthen
the link between business and society.
Because our success is anchored on the well
being of our employees, business partners,
customers, and communities.
Tulong Aral ng Petron
Life
2012 Vision Petron Lakbay Alalay
Para sa Kalikasan
Winner (Photography)
MARC HENRICH V. GO
University of Sto. Tomas
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Sustainability a Way of Life in Boracay
Petron Reaps Safety Recognitions, From Relief to Recovery, Resilience and Self-Reliance:
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Petron’s Disaster Management Program
Lakbay Alalay: Linking with our Mobile Communities
Petron Dealer Puts a Premium on Sustainability 61
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Petron Corporation
Message of the
Chairman and the President
Dear Stakeholders,
P
etron turned in relatively solid
business results in 2012 despite a
very tough operating environment.
We performed well in many
aspects of our operations and further
strengthened our market position.
As one of the country’s largest corporations,
Petron’s business is closely linked with
the Philippine economy. Thus, we have a
strong sense of responsibility to help build
our nation and act in partnership with the
government so that the greater majority
will experience growth and development.
Central to our continued success is our
commitment to our stakeholders—as Petron
grows, so do our communities.
“Our external stakeholders
continue to grow alongside
us. Our presence translates
to education, livelihood,
entrepreneurship, and
employment, so that our
communities grow
self reliant.”
Growing Our Business
Petron marked 2012 with a number of
significant business successes. Total
domestic volume surged by 8% buoyed
by strong sales in all major market
segments—Reseller, Industrial, and LPG.
This is the highest domestic growth your
Company has posted in the past five
years. Our retail network, already the most
extensive in the country, grew to over
2,000 service stations. Petron remains the
undisputed industry leader serving 38.5%
of the total market.
Our biggest investment to date, the Refinery
Master Plan Phase 2 (RMP-2), is more than
halfway completed. The RMP-2’s construction
has already generated employment for
thousands of Filipino engineers and skilled
workers, and continues to stimulate the local
economy of our host province, Bataan. Once
fully on-stream by the 2nd half of 2014, the
upgrade will allow us to produce more fuels
(e.g. gasoline and diesel) and petrochemicals,
helping ensure the supply security of the
country. This will give Petron the distinction
as the only oil company in the Philippines
capable of producing the more stringent
2012 Sustainability Report
RAMON S. ANG
ERIC O. RECTO
Chairman and
Chief Executive
Officer
President
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Petron Corporation
and environment-friendly Euro 4 standard
fuels. RMP-2 is truly a showcase of Filipino
ingenuity and skill.
These operating successes boosted our
contributions to the nation, creating jobs
and allowing us to better provide our
customers with quality, value-for-money
fuel products. Last year, we went beyond
our comfort zone and expanded our
horizons with the successful acquisition
of ExxonMobil’s downstream business
in Malaysia, making this our pioneering
international venture in our rich eightyyear history. This investment includes an
88,000 barrel-per-day refinery, 550 service
stations, and seven storage terminals.
Greening As We Grow
Petron’s growth is always linked to the right
way of doing things, especially in the areas
of safety and the environment. In 2012, we
received numerous awards including the
Department of Labor and Employment’s
Bureau of Working Conditions, Safety
Milestone (SMile) Award for 31 depots and
terminals. In early 2013, we marked 50
million safe man-hours without lost time
incident for all our storage depots.
At our Bataan Refinery, we were able
to sustain the Integrated Management
Systems (IMS) certification for the fourth
straight year. This underscores the facility’s
adherence in the areas of process quality,
environment, and health and safety.
Caring for the environment remains a
constant priority. Throughout the year, we
made great strides in our on-going efforts to
be more efficient in our use of energy and
water, and in the effective management of
the by-products of our operations.
We have intensified our campaign to
raise the environmental know-how and
performance of our service station dealers,
contractors, and Petron employees. Our
specially designed Pollution Control Officer
(PCO) training, a pioneering initiative of the
company, has already trained 904 partners
since 2010. We are growing the number of
service stations that have an Environmental
Management System (EMS) or ISO 14001:2004
in place. We take pride in being the only
oil company in the Philippines with EMScompliant service stations, and intend
to extend this to our entire service
station network.
Enriching Our Communities
Our company’s success is anchored on the
growth and well being of our stakeholders:
our employees, business partners,
customers, and communities.
Our presence translates to more
opportunities for education, livelihood,
entrepreneurship and employment for our
stakeholders. We build and repair schools,
train teachers, and shape entrepreneurs.
We have seen our Tulong Aral ng Petron
scholars journey through elementary
and high school levels; 24 outstanding
students are now taking up engineering and
business-related courses in top schools.
Complementing this is the Refinery’s Special
Campus Recruitment Program, with 142
engineering scholars from nine colleges and
universities. We look forward to the day
when they join the Petron organization.
On the environmental front, we continued
to lead in coastal management, specifically
in Bataan and Boracay. Our contribution
to DENR’s National Greening Program and
Adopt-An-Estero Water Body Program helped
address climate change issues.
2012 Sustainability Report
We also extended help to the thousands
of families in Mindanao devastated by
super typhoon Pablo. Employee-volunteers
spent the Christmas season holding soup
kitchens and providing relief assistance
to those displaced by the calamity. We
hope to complete the construction of
several classrooms in Compostela Valley
in 2013, as our contribution to the overall
rehabilitation efforts. We also supported
the rehabilitation programs for hundreds
of victims of Typhoon Sendong in late
2011. We partnered with Habitat for
Humanity Philippines and Gawad Kalinga
to build houses for those rendered
homeless in the cities of Cagayan de Oro
and Iligan.
measure our successes against a higher,
more meaningful benchmark: how they
help address core and critical issues of
national development.
We are one of the few companies in the
country that has integrated CSR into its
business planning process. We believe that
the private sector, especially businesses
like Petron, has a bigger responsibility:
to build and strengthen the partnership
between business and the community,
where everyone will be afforded
opportunities to realize his own potential
for a productive and meaningful future.
Strengthening Our Supply Chain
Petron’s sustainable supply chain serves
as one of our differentiating factors. Given
the complexity of our business operations,
a supply chain that requires its partners
to adhere to the same high standards of
our company will allow us to maximize
our potential growth and improve our
value to stakeholders. We are very proud
of the fact that Petron remains one of the
few Philippine companies that report its
initiatives in creating a sustainable supply
chain. By strengthening our ties with our
business partners, we are able to benefit
more of society.
Linking Business and Society
Within this context, Petron’s sustainability
agenda continues to flourish. Years of
sustainable programs and practices have
made it the norm for Petron employees
to consider the impact of their actions
based on the triple bottom line. We see
our 2012 milestones beyond corporate
success and view them using the wider
lens of inclusive development. We now
Ramon S. Ang
Chairman and Chief Executive Officer
Eric O. Recto
President
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Petron Corporation
The Business
of Petron
P
etron Corporation is the largest oil
refining and marketing company
in the Philippines, proudly
servicing nearly 40% of the
country’s oil requirements. The Company
has consistently been able to provide
world-class petroleum products through
its extensive network of depots and
service stations.
It all starts at the Petron Bataan Refinery
(PBR), an Integrated Management System
(IMS)-certified crude oil refinery and
petrochemicals complex in Limay, Bataan,
capable of processing a maximum of
180,000 barrels of crude oil per day into a
wide array of petroleum products including
gasoline, diesel, liquefied petroleum gas
(LPG), jet fuel, kerosene, and industrial fuel
oil. Aside from these, PBR also produces
petrochemical feedstock benzene, toluene,
mixed xylene, and propylene.
From the PBR, the petroleum products are
transported via barges and marine vessels
to 31 strategically located depots, plants,
and terminals for storage, from which
they are further transported by tank
trucks for delivery to service stations,
airports, and industrial accounts all over
the country.
decades has been marked by world-class
quality petroleum products that continually
challenge and raise fuel technology
standards locally. This is best exemplified
by our Petron Blaze 100 Gasoline Euro
4, the only premium plus gasoline that
meets globally-accepted European emission
standards for vehicles, which was launched
recently. Blaze 100 provides optimum
engine performance with the added benefit
of improved fuel economy and reduced
exhaust emissions, and is thoughtfully
designed both for high-performance engines
as well as older vehicle types.
Through an extensive dealership network,
we are able to bring Petron Gasul and
Petron Fiesta liquefied petroleum gas (LPG)
to more households Filipino households.
Our Jet-A1 is used by international and
domestic air carriers in local major airports,
while our diesel and industrial fuel oil
are used by the power generation and
manufacturing sectors, and by marine
vessels and other industrial clients. We also
sell kerosene for the cooking/heating and
lighting needs of consumers.
We blend fuel additives and produce
petrochemical feedstocks for various clients
in the Asia-Pacific region.
Our distribution network ensures that
our products continually and dependably
reach consumers. Our product portfolio,
on the other hand, ensures that client
and consumer needs are being met and
even exceeded.
Ownership and Structure
We retail our automotive fuels in over
2,000 service stations across the country.
Our presence in the industry for eight
Our Corporate Office is at the San Miguel
Head Office Complex in Mandaluyong City.
We have three main operating divisions:
Since 2010, Petron has been part of the San
Miguel Corporation (SMC), one of the largest
conglomerates in the Philippines known for
operating in diverse industries.
Operations
2012 Sustainability Report
Over the last three years, we have laid down the foundation for
sustainable growth and profit through the Refinery Masterplan
Phase 2 (RMP-2). Scheduled to be completed by 2014, this is
Petron’s single largest investment to date, and the biggest
showcase of our commitment to fuel the future of our country.
the Refinery, National Sales Division, and
Supply and Operations. Apart from our
Refinery, other facilities include the Fuel
Additives Blending Plant in Subic Bay
Freeport, where we produce the additive
requirements for our automotive fuels
and export the rest of the additives to
the regional market; the lube oil blending
plant at the Pandacan Terminal, where lube
and grease products are manufactured;
and the polypropylene plant in Mariveles,
Bataan, where the refinery’s propylene
production is converted into higher-value
polypropylene resin.
Our Company has a stake in the Pandacan
Depot Services, Inc., a shared services
venture with two other oil industry
players. Other Petron units supporting
the main operating divisions include
Marketing, Corporate Technical and
Engineering Services Group, Business
Planning and Development, and Property
Management and Insurance.
Earlier this year, we completed the
acquisition of three companies of
ExxonMobil in Malaysia that comprised an
integrated downstream oil business. Our
operations in Malaysia boasts of the Petron
Port Dickson Refinery and a retail network
of 550 service stations. These facilities
have likewise been consistently conferred
the prestigious Malaysian Society for
Occupational Safety and Health (MSOH)
Award. These acquisitions, however,
are not part of the 2012 reporting scope
and boundaries.
Governance
We have long been guided by effective
corporate governance practices Petron’s
Board of Directors oversees the
management of the Company to ensure our
competitiveness in a manner consistent
with our fiduciary responsibilities. The
Board is organized into four committees—
Nomination, Compensation, Audit, and
Executive. Of the 15 members of the
Board, two are Independent Directors. The
Chairman of the Board is the Chief Executive
Officer of the Company, which enables
seamless synergy and coordination between
the Board and management. The Chairman
and the President are the only two board
members concurrently serving as Executive
Officers. Check and balance is preserved
by the presence and active participation of
the President and the encouragement of
and due consideration given to independent
views during Board meetings. The meetings
are held on a regular basis to guarantee
consistent efficiency, and the respective
schedules and materials are released and
disseminated prior to the meetings.
In compliance with the Securities and
Exchange Commission (SEC) Memorandum
Circular No. 2, Series of 2002, Petron
issued its Corporate Governance Manual,
which recognizes and upholds the rights
of every stockholder and reflects the key
internal control features necessary for
good corporate governance.
The Corporate Governance Manual
includes guidelines in determining the
composition and qualification of the
Board of Directors of the Company.
There is a selection process for directors
who can add value and contribute
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Petron Corporation
independent judgment to the formulation
of sound economic, environmental,
and social corporate strategies and
policies. The Company also recognizes
the right of stockholders to elect and
replace directors. Stockholders nominate
directors to the Nomination Committee
which, together with the rest of the Board,
endorses their chosen nominees to the
stockholders for election at the next
stockholders’ meeting.
On the other end, members of the Board
are likewise evaluated by the President and
Chairman at year-end on the merits of their
performance in deliberating issues dealt
by the Company during the year. A similar
evaluation is also made by each member
of the different Board Committees on the
performance of their respective Committees
as a whole.
When it comes to stockholder matters, no
one is deprived of representation in the
Board. Minority shareholders may propose
agenda items for legitimate purposes and/
or call a special meeting upon the written
request of one or more stockholders
holding at least 20% of the total issued and
outstanding shares of the Company.
Management and employees are also able
to actively participate in the governance
process. We welcome feedback, and an
annual stockholders’ meeting serves as
a direct venue where Petron officials are
able to engage shareholders in dialogue.
We maintain open lines of communication
with our employees, properly cascading
information to them, and inviting
their participation.
The public is also highly encouraged to
submit their feedback on Petron through
the company website, www.petron.com.
This feedback is essential as we review our
performance and strive to understand the
views of our external stakeholders. Similar
with the Directors, all Officers and Senior
Managers are required to attend basic
The Annual Stockholders’ Meeting provides a regular forum for every Petron shareholder to dialogue with the
company’s management.
For a more in-depth discussion of Petron’s ownership, capitalization, corporate
governance practices, and sales and revenue we invite you to access our 2012
annual report, Forging Ahead, Thinking Big at www.petron.com
2012 Sustainability Report
corporate governance seminars at SECaccredited providers.
Petron has in place its Rewarding
Excellence through Alternative Pay (REAP)
program, a variable component embedded
in the total compensation package that
provides contingent financial incentives
for officers and employees to achieve the
Company’s business goals and objectives,
including social and environmental
innovation and performance. Merit given is
based on the individual performance.
Petron complies with regulatory policies
on the submission of reports to all
stockholders pursuant to its By-Laws and
the Securities and Regulation Code.
Conflict of Interest
Petron has Conflict of Interest and
Undertaking Statements, which all directors,
officers, and employees are required to sign.
The policy requires signatories to disclose
their respective business interests to ensure
that these are not in competition with the
business of Petron. Signatories are likewise
provided with the Company’s Code of
Conduct and Ethical Business Policy.
The Company has a Conflict-of-Interest
Committee composed of all Vice-Presidents,
with the Committee Chairman appointed by
the Chairman of the Board of Directors and
the President.
Risk Management
Petron employs an enterprise-wide risk
management framework to identify,
map, and address the risk factors that
affect or may affect its businesses. Top
management oversees the sustainability
performance of the Company, using a
For more information on our
Risk Management,
visit www.petron.com
management framework that essentially
entails a bottom-up approach in which
risks are identified at the process level
guided by a risk-assessment process, and
risk owners accordingly formulate action
plans to address them. Petron has a system
of approvals to delegate the authorization
of conducting businesses and to verify
accountability at all times. The results of
these activities flow up to the Management
Committee and eventually, the Board during
Petron’s annual business planning process.
At the top level, the Board created separate
entities that have explicit authority
and responsibility over managing and
monitoring risks: the Audit Committee
ensures the integrity of the internal controls
in place for the Company’s activities
while the Compliance Officer monitors
compliance with the Corporate Governance
Manual, determines possible violations,
recommends corresponding penalties subject
to Board review and approval, and submits
pertinent reports to the SEC. Oversight and
technical assistance are provided by the Risk
and Insurance Management Group, Financial
Risk Management Unit at Treasurers,
Transaction Management Unit of Controllers,
Corporate Technical and Engineering
Services, Internal Audit Department, and
Petron Singapore Trading Pte. Ltd.
The major risks that the Company
managed this year were substantially the
same as those in the previous year since
there were no fundamental changes in the
nature of our operations that are covered
in this report. Major risks are those
identified as having a high probability of
occurence and posing substantial negative
impacts on Petron.
The Company’s risk-assessment process has
allowed us to predict potential economic
and environmental risks, hence, giving us
an opportunity to develop preventive action
steps to address these risks.
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Petron Corporation
The continuous expansion at the
Refinery and Petron’s dealership network
significantly increases the Company’s
environmental footprint as well as the
probability of an environmental, health,
or safety-related incident in our areas of
operations as well as during transport.
Petron adheres to strict environmental,
health, or safety programs, and
continuously upgrades manpower skills
and available technologies that minimize
risks throughout our value chain. Potential
oil spills are prevented by engineering and
system controls that go down to the level
of our suppliers and contractors.
The Marine Department and Road
Transport Group manage the primary and
secondary distribution network of the
Company for the efficient and safe delivery
of products nationwide.
Operating in a closely monitored industry,
Petron makes sure to comply with all
prevailing laws and regulations. We
participate in stakeholder consultations
on new laws, standards, and regulations
that affect the oil and gas industry, and
make sure that we remain up to date
to avoid the risk of non-compliance.
At present, we are still monitoring
the outcomes on the Industry Specific
Effluent Standards, Mass Emission Rate
System for Sulfur Oxide Emissions, and
Oxygen Correction Factor for Stationary
Air Emission Sources.
The risk management process of Petron
is guided by the Precautionary Principle,
which emphasizes that decisions must
take into account potential harmful
effects, even when the outcome is not
certain. While the Company cannot
completely eliminate the impacts of its
operations, Petron is fully committed to
this process to minimize and mitigate the
negative effects of its actions.
Engaging Stakeholders
Every day, the actions and decisions made
by Petron—its management, employees,
and partners—touch millions of lives.
As one of the biggest players in the local
oil industry, we have a significant role in
fueling the productivity of the economy as
well as the life of every Filipino; we have the
responsibility to leave an impact of lasting
and positive change.
Beyond getting feedback, we believe that
engaging stakeholders effectively helps
enhance our economic, environmental,
and social performance in the long run. In
“Every day, the actions and decisions made by Petron—its
management, employees, and partners—touch millions of lives.
As one of the biggest players in the local oil industry, we have a
significant role in fueling the productivity of the economy as well
as the life of every Filipino.”
2012 Sustainability Report
evaluating the materiality of performance
indicators under the GRI framework for
this Report, we were able to identify the
stakeholders that are key to the conduct of
our operations:
•
•
•
•
•
•
•
•
Petron employees, and other partners with
knowledge on environmental practices and
policies. Petron dealers also participated in a
materiality survey to gather information on
which aspect of sustainability they consider
as priority areas. This way, the Company can
engage our partners in our sustainability
agenda and concretize it by harnessing
champions in local communities.
Shareholders
Governments and regulators
Industry/business groups
Consumers
Employees
Local communities and civil society
Academe
Suppliers, contractors, and service
providers
• International organizations
or donor agencies
• Media
Petron’s sustainability initiatives are anchored
on international principles such as the United
Nations Millennium Development Goals and
the United Nations Global Compact.
Stakeholder engagement activities occur
virtually in every aspect of Petron’s
operations and business transactions. The
Marketing Department, for example, invests
in market research surveys to gauge how
the Company, our products, and services are
perceived by the public, consumers, and the
industry. Feedback from the public can help
improve Petron’s products and services.
Serving the Filipino Public
As discussed in more detail in a
subsequent section of this Report, there is
a move to infuse a sustainability-oriented
mindset into the entire supply chain of
Petron. Already, initiatives on economic,
environmental, and social improvements
have been introduced at the refinery,
depots and terminals, transport, and
service station levels.
Petron continues the conduct of its Pollution
Control Officer (PCO) Training Course series
primarily to equip service station dealers,
For more discussion on our
stakeholder engagement, visit
www.petron.com
We are also a member of industry
associations, as well as national and
international advocacy organizations where
we have positions in governance bodies,
participate in projects or committees, or
provides substantive funding other than
membership dues.
Given our critical role in supplying our
nation’s fuel needs, it is our responsibility
to work closely with the government,
regulatory agencies, and relevant
stakeholder groups to help develop strategic
initiatives concerning the oil and energy
sector as we pursue the twin goals of
industry leadership and nation building.
We recognize the value of our public policy
positions on issues relevant to our business
and the oil industry; thus we make it a
point to regularly engage with government
officials and regulators. We aid legislation,
policies, and voluntary agreements related
to our industry and with the end view of
advancing economic and social growth. We
participate actively in public hearings and
public stakeholders’ meetings on various
issues affecting the energy sector, including
public policy development in relevant
issues, which include (but are not limited
to): oil prices; oil deregulation; the Biofuels
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Petron Corporation
Law implementation the strengthening
of the government’s powers over the
illegal activities of the LPG industry and
anti-oil smuggling; Petron product and
facility standards; and such advocacies as
emergency response capabilities and road
safety. We also work with oil industry
players and other business groups
especially in terms of joint legal action
against illegal activities.
Our Corporate Affairs Department
(CAD) works in coordination with
concerned departments and divisions
on this aspect of our business and
maintains memberships in local industry
organizations. Our Marine Group is very
active in lobbying in Congress as part of
the Technical Working Group (TWG) of the
House Committee on Environment to help
prevent marine pollution from ships.
Petron also strictly complies with the
policies of governing institutions such as the
Department of Energy, the Department of
Trade and Industry, Securities and Exchange
Commission, and the Philippine Stock
Exchange, among others. Thus, there were
no legal actions filed against Petron in court
for anti-trust, anti-competitive behavior, and
monopoly practices. We were not subjected
to significant fines and non-monetary
sanctions for non-compliance with laws and
regulations in 2012.
Sustainability at Petron
Sustainability goes hand in hand with
the going concern concept of Petron as a
business entity in that it must be responsible
in using natural resources and harnessing
people—both of which the Company depends
on. For Petron, this holistic approach elevates
the sustainability agenda to creating shared
2012 Sustainability Report
value, where our enhancements to Petron’s
value due to our improved sustainability
performance feed into our leadership
position and competitiveness and link
directly to improvements in the lives of
Filipinos and Philippine society in general.
Being a leader in the local oil industry at a
time when concern, and not just awareness,
about climate change is on the rise, Petron
is in a unique position to show through this
Report how fostering sustainability in our
corporate culture continues to transform us
for the better. This mindset guides us in to
meeting our sustainability priorities.
Petron is committed to regularly
reviewing its corporate performance and
reporting its progress publicly, based
on the GRI International Guidelines on
Sustainability Reporting.
We take pride in being named as the top
Philippine Company in the 3rd Asian
Sustainability Ratings (ASR) conducted
by CSR Asia, besting other local publiclytraded corporations. This is the second
time that the Company has topped
the ratings board, which measures a
company’s performance in key areas such
as environment, social, and governance.
ASR examines the publicly available
information of leading listed companies in
ten Asian countries and provides investors,
companies, and other stakeholders with
a view of the strategic sustainability of
these companies. This adds to the local and
international recognitions we have been
receiving for our sustainability efforts.
We take pride in being
named as the top Philippine
Company in the 3rd Asian
Sustainability Ratings (ASR)
conducted by CSR Asia,
besting other local publicly
traded corporations.
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Petron Corporation
Our VISION and MISSION
Our vision is to be the leading provider of total customer solutions in the energy sector and its
derivative businesses.
We will achieve this by:
• Being an integral part of our customer’s lives, delivering consistent customer experience
through innovative products and services;
• Developing strategic partnerships in pursuit of growth and opportunity;
• Leveraging our refining assets to achieve competitive advantage;
• Fostering an entrepreneurial culture that encourages teamwork, innovation, and excellence;
• Caring for the community and the environment;
• Conducting ourselves with professionalism, integrity, and fairness; and
• Promoting the best interest of all our stakeholders.
These are the principles that every member of the Petron organization across all divisions
and all across the country live by.
OUR SUSTAINABILITY
POLICY
We at Petron Corporation believe that we have a solemn responsibility to our stakeholders to
continue growing our business while also creating healthier and safer communities, and a
cleaner environment.
We believe that sustaining our leadership in the local oil industry is not just defined by
our profitability, our market share, our world-class products, or our operational efficiency;
our leadership also means being at the forefront of corporate social responsibility and
sustainable development.
These beliefs guide us in the way we do our business to further enhance our performance,
and maximize our positive impact on our business, our society, and our nation., and our planet.
Consistent with these principles, we commit to meeting the following sustainability priorities:
Economic Responsibility - create long-term economic value and mutual advantage for our
company and our shareholders.
Governance - comply with, and exceed where practicable, all applicable legislation, regulations and
codes of corporate conduct and practice.
Environmental Stewardship - measure and effectively manage our environmental footprint in
every aspect of our operations.
Operational Efficiency - ensure the continuous improvement of our operations and in our supply
chain, guided by global standards of efficiency.
Health and Safety - seek ways at every opportunity to promote and improve the safety and
health of our personnel, contractors, and surrounding communities.
People Management - create a fair, conducive and enabling work environment for the growth and
development of our employees and the betterment of their families.
Strategic Partnerships - foster alliances with every stakeholder to ensure sustainable development
of our communities while serving customers better and creating more value for our
investors,establish strategic partnerships to ensure the success of our business and our
sustainability initiatives.
Product and Service Innovation - constinuously come up with products, services and processes
that delight our customers, attain competitive advantage, help shape the industry and fuel
environmental protection.
Advocacy and Social Responsibility - ensure our company's positive contribution to the economic
and social needs of our communities, anchored on national and global development goals
and principles.
We regularly review our corporate performance and report our progress publicly, based on
the Global Reporting Initiative (GRI) International Guidelines on Sustainability Reporting.
Our efforts are driven by the strong team spirit of an excellent Petron workforce from all
levels of the organization and buoyed by the dynamic partnership with our stakeholders
whom we continue to engage, as we set out to make our business last and the future secure
and sound.
Ramon S. Ang
Chairman and
Chief Executive Officer
Eric O. Recto
President
2012 Sustainability Report
Awards and
Recognition for 2012
Our efforts to make sustainability a way of life has earned for Petron a number of noteworthy accolades from local and
international awards organizations and government and business groups.
•
•
Global CSR Awards
o Award for Environmental Excellence for
“Sustainability at Petron: Integrating
Environmental Excellence with Economic
and Social Success”
48th Anvil Awards
o HALL OF FAME AWARD & AWARD OF EXCELLENCE for Vision Petron 12 Collaterals
o AWARD OF EXCELLENCE for 25 Years of
Lakbay Alalay: Journeys Beyond the Road
o AWARD OF EXCELLENCE for Vision
Petron FOLIO Magazine 2012
o AWARD OF EXCELLENCE for Tulong Aral
ng Petron: A Decade of Fueling Hope
o AWARD OF EXCELLENCE for
Sustainability: Petron’s Way of Life
o AWARD OF EXCELLENCE for Boracay
Beach Management Program
o AWARD OF MERIT for Managing our
Environmental Footprint in Bataan
o AWARD OF MERIT for Right Moves: The
2011 Petron Sustainability Report
•
All 31 depots and terminals were awarded by
the DOLE-BWC with the 2012 Safety Milestone
(SMile) award
•
Pandacan, JOCASP, Batangas, Palawan and
Nasipit achieved IMS Certification which
covers the standards of Quality (ISO 9001),
Safety (OHSAS 18001) and Environment (ISO
14001). Twenty Three (23) out of the 32 locations, or 72%, are now IMS Certified.
•
Tacloban Depot and its superintendent
Joey P. Ortega were awarded with the Gawad
Kaligtasan at Kalusugan (GKK) Award of Honor for Institutional and Individual
categories, respectively
•
Petron Tacloban being recognized as an
environment-friendly and most safe and
community-friendly establishment in Tacloban City
•
The Recognition received by Petron Nasipit for
qualifying to DOLE’s Incentivizing program;
•
Named Marketing Company of the Year by the
Philippine Marketing Association (PMA) during
the 2012 Agora Awards
•
Petron Iligan’s award for being the cleanest
and most orderly depot in Iligan for two
consecutive years;
•
A Gold Trusted Brand Award by Reader’s
Digest for the 12th straight year
•
DENR’s recognition of the invaluable support
of Gasul San Fernando in their environmental
programs;
•
Philippine Quill Awards
o AWARD OF EXCELLENCE for Vision
Petron 12 Collaterals: Nurturing Nature
o FINALIST for Vision Petron 12: A Journey
to Nurture Nature
•
Top 5 Best Suppliers of Aboitiz Power
Generation – Diesel Oil-fired Plant Group
•
Garnered perfect score in Hanjin Heavy
Industries and Construction Co.’s Supplier
Performance Evaluation •
Accumulating a total of 50 million safe manhours without lost time accident since 1967.
15
16
Petron Corporation
About our
Report
L
inking Business with Society, our
2012 Report, has been prepared
on a B+ level application, as
verified by a Global Reporting
Initiative (GRI) Application Level Check,
which confirms that we have fully provided
the disclosures required at this level under
GRI guidelines, and that our report has been
subjected to external assurance review.
This highlights our commitment to espouse
quality, relevance, and transparency in
our economic, environmental, and social
performance. All information disclosed in
this report pertain to our operations from
January 1 to December 31, 2012.
This year, we disclose 52 performance
indicators under the GRI Framework. The
discussion of these indicators includes
our Corporate Head Office, the Petron
Bataan Refinery (PBR), our 32 depots and
terminals nationwide, company-owned,
company-operated service stations, and
our corporate social responsibility arm,
Petron Foundation. We also discuss current
issues and challenges faced by the Company
in the context of sustainability in our
operations and our corresponding planned
actions, including those on the prior-year
recommendations of the External Review
Committee (ERC).
Since 2008, we have annually published a
sustainability report in conformance with
the GRI guidelines. In determining which
GRI performance indicators to measure
our operations against, we made use of a
materiality matrix that required discussion
among our stakeholders. As a result of such
stakeholder engagement and guided by our
ERC, we initiated a review of our efforts to
green our supply chain. For the second year,
we report on voluntary initiatives to involve
Since 2008, we have reported our sustainability performance each year, following the Global Reporting Initiative (GRI) G3
Guidelines on Sustainability Reporting.
2012 Sustainability Report
our external stakeholders such as service
station dealers, business partners, vendors,
suppliers, and contractors in furtherance of
our sustainability agenda.
In preparing data for the report, we
continued to adopt the data monitoring and
measurement methods in the environmental
manual of all our facilities with Integrated
Management System and Environmental
Management System. Greenhouse gas (GHG)
calculations for fuel consumption were
based on emission factors provided by the
United Nations Framework and Convention
on Climate Change (UNFCCC), and the
emission factors for GHG emissions from
power consumption were based on derived
figures from the Clean Air Initiatives–Asia.
Air pollutants were computed using the U.S.
Environmental Protection Agency Emission
Factors. Petron’s involvement in joint
ventures, our subsidiaries, leasing facilities,
and other entities does not affect the
comparability of the data.
Independent Third-Party Review
We voluntarily submitted our sustainability
report for review by a team of independent
experts in related fields engaged by the
University of Asia and the Pacific’s Center
for Corporate Social Responsibility. The
work of the External Review Committee
(ERC) involved meetings with our
technical working group, ocular visits
to the Refinery, two provincial depots
and terminals, seven service stations in
Metro Manila, Visayas, and Mindanao, and
interviews with various stakeholders.
There were no significant changes from
previous reporting periods in terms of scope
and methodology of gathering data. There
were no restatements of any information
published in prior periods.
Feedback
We believe that
sustainability takes
a lot of coordinated
effort, and that it is a
continuous process.
We enjoin you to be
a part of our effort in
this agenda. You may
sendyour comments,
suggestions, and
critiques on our
sustainability
practices or on
the content of
this Report to
sustainability@
petron.com.
17
18
Petron Corporation
Economic
Performance
Petron’s Management Approach
to Economic Sustainability
Driving Petron’s goal of business
sustainability are the twin objectives of
profitable growth and long-term value
to all stakeholders. We continue to
enhance our market leadership through
continuous investments in our Bataan
Refinery, relevant products for our
customers, operational efficiency, and
strict adherence to corporate governance
and international and local industry
standards.
We recognize Petron’s role in being a
major driver of economic development.
Because our business reaches every
corner of the country, we strive for
inclusive growth. Thus, corporate social
responsibility is one of four strategic
thrusts and is an integral part of our
business planning process.
Our financial bottom line must enable
us to better serve our communities and
various publics.
Where Petron has a presence, we increase
economic opportunities by tapping into
local businesses. We are able to promote
local employment, equitable livelihood,
and infrastructure investments which not
only contribute to Petron’s growth but our
partners and communities as well.
Answering Challenges, Seizing
Opportunities
Petron’s vision to be the leading
provider of total customer solutions
in the energy sector and its derivative
businesses guided us in facing the
challenges of 2012. Last year, we sought
to broaden our market reach amid an
environment of price volatility and
increasing competition, among others.
Our company’s commitment to our
sustainability agenda provides consistent
profitable growth and, hence, long-term
value for all our stakeholders. Because of
the integrated, multi-stakeholder view of
our business, we are able to continuously
improve our economic performance. Our
business partners—from vendors and
suppliers to dealers and contractors—
help enhance the value of Petron are
being brought to alignment with our
sustainability roadmap and they journey
with us in setting goals and improving
performance throughout our operations.
We also continued to adhere to high
standards of corporate governance in
conducting our business. By doing so,
we add more value to our business and
for our stakeholders as we enhance
transparency and accountability in
our operations.
This allowed Petron to post a modest
performance despite a challenging
economic environment. In 2012, we
posted record revenues, due to the
consolidation of operations in Malaysia
for the last three quarters of 2012.
However, profit levels dipped mainly as a
result of volatile crude and product prices
in the region.
The year 2012 saw unprecedented
expansion and efficiency improvement
projects that remain on track. We also
marked the Company’s first international
venture with the acquisition of a fully
2012 Sustainability Report
Economic
Report Card
2012 Revenues
PhP424.8 Billion
Net Income
PhP2.3 Billion
Social Investment
PhP377.3 Million
19
20
Petron Corporation
integrated downstream business in
Malaysia which includes an 88,000
barrel-per-day refinery, seven (7) storage
terminals, and 550 service stations.
Major projects in 2012 are the continuing
expansion of the service station
network, the continuing improvement of
distribution capabilities, the construction
of a power plant in the Refinery, and the
ongoing construction of facilities under
the US$2 billion Refinery Master Plan 2
(RMP-2). Petron has also embarked on
aggressive rebranding efforts of the newly
acquired business in Malaysia.
Because Petron sees business success tied
with sharing value with our wider group
of stakeholders, we remained committed
to provide economic contributions to
the government through tax remittances,
to our suppliers through purchases, to
our capital providers through dividends
and interests, to our employees in the
form of wages and benefits, and to the
communities touched by our social
investments. The table below does not
include valuation of our volunteers’
services as part of social investments.
As illustrated, the main challenge for
us is to maintain a sustainable margin
between operating costs and economic
value generated to have adequate
economic value retained after payments
to government, capital providers and
employees, and investments to the
community. Higher economic value
retained equates to sustained economic
value distributed over time.
Creating and Channeling
Inclusive Growth
In 2012, sales revenues increased by 55%
to PhP424.8 billion compared to PhP274.0
billion the previous year. Net income
amounted to PhP2.3 billion, around 73%
lower versus PhP8.5 billion last year. The
Economic Performance by the Numbers*
Amounts in Million Pesos
2012
2011
2010
424,795
273,956
229,094
2,098
1,811
1,188
426,893
275,767
230,282
404,301
250,594
203,249
Salaries, Wages and Other Employee
Costs
3,027
2,705
2,274
Payments to Capital Providers
9,780
7,035
3,884
Payments to the Government
17,958
19,271
16,826
377
194
123
435,443
279,799
226,356
(8,550)
(4,032)
3,926
Economic Value Generated
Revenues – Core
Non-core
Total Economic Value Generated
Economic Value Distributed
Operating Costs
Community Investments
Total Economic Value Distributed
Economic Value Retained (Distributed)
*Certain amounts stated in the table differ from presentation in the financial statements.
2012 Sustainability Report
company managed a turnaround within
the year and achieved a modest income
despite suffering a PhP2.1 billion loss
in the second quarter of 2012 due to
volatility in crude and product prices,
which resulted in inventory loses. Dubai
crude prices went as high as US$124/
barrel in March and to as low as US$89/
barrel in June.
Petron’s aggregate sales volume increased
by 59% to 74.3 million barrels (MMB) in
2012 versus 46.7 MMB in the previous
year. Of such volume, 26.6 MMB can be
attributed to operations in Malaysia starting
in the second quarter of 2012, while 47.7
MMB were from the Philippines.
Petron’s Philippine domestic sales volume
growth increased by 8%, outpacing total
industry growth, which increased by only
4% year on year, enabling the Company
to increase its domestic market share to
38.5%. This is bigger than the combined
market share of the next two largest
downstream oil industry competitors. The
larger market share was boosted by the
aggressive expansion of distribution outlets
and aggressive solicitation of industrial,
accounts. Petron maintained its leadership
position in major market segments namely
retail, industrial, and LPG businesses.
Our capability to face numerous
challenges in our existing businesses
amidst pursuit of various projects in
solidifying future sources of growth
emanates from our strong financial
position and judicious use of resources.
Total assets grew by 59% to PhP279.2
billion with the acquisition of Petron
Malaysia and substantial investments in
property and equipment.
Due to our strong operating performance,
we paid around PhP404.3 billion to
suppliers, contractors, service providers
and others, 61.3% higher than in the
previous year. However, due to lower
income, tax payment decreased by 6.8%
to PhP18.0 billion in 2012 from PhP19.3
billion in 2011. Payments to capital
providers increased by 39.0% year-on-year
to PhP9.8 billion.
The company has a tax-qualified and
fully funded defined benefit pension plan
administered by trustee banks. This plan
covers all permanent, regular, and full-time
employees. The cost of providing benefits
under these plans is determined using
the projected unit credit actuarial
valuation method.
Despite the lower income, Petron
managed to step up its corporate social
responsibility (CSR). In fact, we invested
PhP377 million on various CSR programs
and initiatives with our stakeholder
communities, around 94% higher than
the previous year’s PhP194 million. This
increase is in keeping with our promise
to our stakeholders that we will make
sure that our partners keep in pace with
our growth.
The FUEL HOPE (Helping the Filipino
children and youth Overcome Poverty
through Education) remained the
company’s centerpiece program.
Our Tulong Aral ng Petron program
covered 3,900 scholars from grade
school to college. Of our high school
scholar graduates, 24 were able to
enroll in engineering and other businessrelated courses, ushering us into the
third stage of our roadmap to
poverty alleviation.
The year 2012 also marked a major step
forward in caring for the environment and
in disaster management. Some highlights
include the signing of a Memorandum
21
22
Petron Corporation
of Agreement with the Department of
Environment and Natural Resources and
the Municipality of Malay for the threeyear reforestation and rehabilitation of 20
hectares of the Nabaoy Watershed under
the Boracay Beach Management Program.
Petron also planted a total of 52,000
mangrove propagules and seedlings.
Under the Sagip Alalay program, the
Company partnered with the Department
of Science and Technology on October
2012 to join the Nationwide Operational
Assessment of Hazards or Project NOAH,
whereby Petron service stations will serve
as local information centers for motorists
and select Petron facilities all over the
country shall be installed with automated
weather systems to serve as advance
warning to disaster-prone communities.
Petron also partnered with Marikina City
for the Noah’s Ark program that aims
to build disaster resilient communities
through risk assessment and community
preparedness. Together with San Miguel
Foundation, Petron employee-volunteers
conducted numerous relief operations
benefitting 36,000 victims in 48 different
locations nationwide.
Partnerships remained a critical part of
our CSR programs last year. Throughout,
business must link with society, thus we
worked closely with partner-communities,
national and local government agencies,
private entities, and employee volunteers.
We do this because concerted effort
enables the widespread and immediate
scaling-up of positive impacts on
communities whose lives we wish to
uplift. Only through strong stakeholderfocused linkages will Petron be able to
contribute to economic development that
is equitable and inclusive.
We take measures to ensure that we contribute to the growth of the communities where we are present. Initiatives
such as Sulong KaBarangay and the Petron-Rosario Livelihood program help empower residents near our facilities
to engage in activities that generate opportunities for additional livelihood.
2012 Sustainability Report
Environmental
Performance
Management Systems
1 Refinery & 23 Facilities
1 Refinery & 32 Facilities
1 Refinery, 23 Facilities, 12 Service Stations
1 Refinery & 23 Facilities
1 Refinery & 17 Facilities
Integrated Management System Certification
ISO 9001 Quality Management System
ISO 14001 Environmental
Management System
OHSAS 18001 Occupational Health & Safety
International Ship and Port Facility
Security (ISPS)
Greening Program
9
Number of depots actively engaged in the National Greening Program and Linis
Estero Program
Bataan, Boracay, Rosario
Locations with integrated coastal
management/beach management/
reforestation programs
Certification
904 Petron Service Station dealers,
personnel, and contractors
Trained under Petron’s nationwide Basic Pollution Control program accredited by the DENR-EMB in preparation for Pollution Control Officer accreditation since 2010
23
24
Petron Corporation
Petron’s Management Approach
to Environmental Sustainability
Environmental sustainability is a critical aspect
of our business. We develop our own systems
for measuring, managing, and minimizing our
environmental footprint and invest in cleaner
production and greener product lines. To
manage emissions, Petron employs Greenhouse
Gas-Air Pollutant Accounting and Energy
Conservation measures. Safe and strategic
transport of all products is critical as well to
our operations. And because our operations
are often located within or near critical areas
such as coastlines and coastal areas, we invest
in rehabilitating the surrounding natural
habitats to protect these critical ecosystems
and offset our carbon footprint.
While the responsibility for environmental
management is shared across the business,
Petron’s Environment Council assists
management in the formulation and
implementation of environmental policies,
disseminates new regulations, standards, and
corporate policies throughout the organization,
and shares best practices in environmental
management. The refinery, depots, terminals,
and retail facilities nationwide have Health,
Safety, and Environment (HSE) committees
which involve all employees from management
to rank and file.
Ultimately, Petron is committed to
providing fuel and energy products that
deliver maximum performance without
compromising the environment.
Deepening Environmental
Sustainability Commitments
The year 2012 saw Petron further deepen
our caring for the environment which
has steadily been refined over the last
four years under a serious and formal
sustainability agenda.
Petron acknowledges that our business has
significant impacts on the environment
and must go beyond compliance with
environmental regulations. The Company
has been able to better articulate how our
operations stay in line with our vision of
being an industry leader that cares for the
environment by developing a system in place
for measuring environmental footprint,
which we extend from the Refinery to our
service stations.
The Company undertakes regular training,
inspections, multi-partite monitoring,
and stakeholder engagement to ensure
cascading of environmental policies and
practices. These were also implemented
in response to the recommendation of
the ERC in the previous year to have more
meaningful stakeholder engagement.
Petron took to heart their suggestion
to “implement a number of activities to
effectively communicate its sustainability
reporting vision and direction especiallly
among permanent and casual employees,
contractors, community leaders, and project
beneficiaries.” We do this by cascading to our
wider network of service stations the policies
and practices we already abide to at the
operations level.
One of Petron’s major initiatives is the
adherence to and application of the globally
recognized Environmental Management
System (EMS) throughout operations,
including an initial batch of service stations
implementing EMS. Petron is proud of the
fact that it is currently the only oil company
in the Philippines with service stations
implementing EMS, and the goal of the EMS
program is to have as many service stations
as possible implement EMS as part of the
sustainable dealership premise.
The number of service stations with an EMS
(ISO 14001:2004) in place has increased to
12 from three in the previous year. Nine
stations (eight in General Santos and one in
Davao) were certified after an extensive 2nd
2012 Sustainability Report
25
26
Petron Corporation
party audit conducted by Petron’s CTESG.
The implementation of EMS has drawn the
interest of other service station dealers: an
additional batch of 20 dealers from NCR was
trained on the overview and implementation
of EMS.
Petron has also secured renewal of
accreditation from the Department of
Environment and Natural Resources –
Environment Management Bureau (DENREMB) on its Pollution Control Officer
Training (PCO) Training Course, which seeks
to equip the Company’s service station
dealers, employees, and other partners with
knowledge on environmental practices and
policies. Since its inception in 2010, the PCO
Training Course has already trained 904
employees, dealers, and contractors in 21
batches. To monitor the effectiveness of the
program, a random follow-up assessment
is conducted on a representative sample
population to monitor the compliance
of attendees. There is a general trend of
increasing percentage-compliance of those
who have attended the training. The batch
trained in General Santos was the most
successful with the dealers achieving almost
100% compliance with environmental
requirements six months after the training.
Service station compliance to environment
regulations before and after attending
PCO training.
To encourage and reward partners for
contributing to the Company’s sustainability
goals, Petron recognizes its greenest service
stations in the annual GreenS/S Awards
Ceremonies. The award is given to dealers
who run their service stations sustainably
and implement programs that mitigate
environmental risks.
Because of innovative programs and
our years of practice, Petron’s efforts in
environmental sustainability have resulted in
declining consumption and emission figures
despite the aggressive growth projects of
the Company, as well as improved ratios of
energy conserved and water recycled.
The Company is also proud to report that
there have been no significant oil spills
during the year, or any other instance of
non-compliance with environmental laws and
regulations, resulting in fines or penalties
or non-monetary sanctions. The Companyoperated facilities have consistently
complied with the standards set by the
Department of Environment and Natural
Resources (DENR), and as such maintained a
zero record of notice of violations.
Aside from ensuring integrity in our
operations, Petron also gained from this
in the business sense of avoiding penalty
payments and having to incur additional
expenses to correct the facilities.
Managing our Materials
PCO
DP
PO
ECC
SMR
ID SW
- Pollution Control Officer
- Discharge Permit
- Permit to Operate
- Environmental Compliance Certificate
- Self Monitoring Report
- Hazardous Waste Generator’s ID
- Solid Waste Segregation
Due to the volatility in price of raw
materials and operational considerations,
volume of crude oil processed was reduced
in favor of importation of finished fuel
products. As a result, volume of crude oil
processed dropped by 12.3%. Despite that,
total volume domestic of products sold
(LPG and Fuel only) increased by 6.0% from
40,311 thousand barrels (MB) to 42,703 MB.
This reflects a general increase in activity at
the depots/terminals and service stations.
Despite the general increase in material
use, there were programs implemented that
resulted to a reduction in other types of
chemical consumption. Optimizing chemical
consumption by improving the control set
points has resulted to 56.7% (30.9 Tons)
decrease in water and wastewater treatment
chemical usage at the Refinery.
20,000
50,000
16,000
40,000
12,000
30,000
8,000
20,000
4,000
10,000
0
2010
2011
Energy Consumption
2012
Crude Oil
Processed, MB
Chemicals and industrial gases used
increased by 64.2% and 36.9%, respectively.
In particular, the use of nitrogen gas went
up by 37% (1.3 million m3) due to higher
number of maintenance activities that
required nitrogen purging.
Refinery Total Energy
Consumption, TJ
2012 Sustainability Report
0
Crude Oil Processed
Annual Energy Consumption (GJ)
Promoting Energy Efficiency
Since our Refinery in Limay, Bataan
accounts for 99.6% of Petron’s total
energy (direct and indirect) consumption,
continuous improvements in its
environmental performance in terms of
energy use remain top priority.
The major energy conservation programs
implemented in the Refinery in 2012
were the cleaning of pipestills’ pre-heat
exchangers, which increased its efficiency
and pressure safety valve (PSV) survey,
which identified and replaced passing
through valves causing inadvertent flaring.
These initiatives contributed to aggregate
savings of 29,806 GJ in the second half of
2012 alone. Together with conservation
and efficiency improvements implemented
since 2009 and still in place, total energy
saved this year reached 1,697,184 GJ.
Energy conserved against consumption
was 10.44%, higher than the 9.54%
recorded in 2011.
To gain a more comprehensive
understanding of its environmental
footprint, Petron also takes note of how
much fuel is used in activities supporting
its Depot and Plant Operations. The energy
consumption of the depots/terminals
increased by 4.3% due to increase in volume
of fuel products received and dispatched.
The participation of our refinery, depots
and terminals in the annual Earth
Hour Celebration, the scheduling of air
conditioning units and perimeter lighting
systems, the conversion to CFL in various
depots areas, and the switching off of
lightings and electricals during break and
after office hours, translate to electrical
consumption savings of about 182,481 kw/hr
annually, or PhP1.5 million
Overall, there was a decline of 3.87% in
total energy consumption. Total electric
consumption stood at 265,942,389 kilowatts
per hour (KWH), resulting in a footprint of
7,344 KWH per MB of crude produced. Of
the total, 114,448,779 KWH (43%) pertained
to the purchase of electricity at the Refinery,
27
28
Petron Corporation
2012 Indirect Energy Consumption (GJ)
gas desulfurizer. In the meantime, water
withdrawn for depot operations remained
at previous-year levels.
PBR
Operation
COCOs
Head Office
slightly lower compared to 119,096,500
KWH last year. On the other hand, electricity
purchased for depot and plant operations
increased by 5.3% to 10,099,536 KWH.
Improving Water Footprint
Total water consumption decreased by
8.3% in 2012 and is mainly attributed to
the Refinery. The lower crude run coupled
with the increasing volume of water that
has been recycled, reused, or reduced
resulted to 9.58% decrease in water
consumption. The biggest reduction was
attained from the continuous program in
reduction of condensible blowdown water.
Further, with the Refinery’s maintenance
Water Consumption Profile
Refinery
Operation
COCOs
Head Office
turnaround in May 2012, streams entering
in the condensible blowdown have now
been re-routed to the Refinery’s flare
system. This allowed us to decommission
the condensible blowdown starting June
2012 and further reduced our water
consumption by 3m3/hr. Another program
is the use of stripped sour water at the flue
Of the total water consumption of
4,397,128 m3, we sourced 93.66% from deep
wells, and the remaining 5.83% and 0.5%
from external suppliers and surface water,
respectively. Of the total, Petron was able to
recycle 710,591 m3 or 16.2%, compared to
the 13.6% ratio achieved in the previous year.
Water consumed pertaining to the Refinery
operations amounted to 4,054,653 m3.
The Company was able to keep its water
footprint per liter of crude processed
at 0.70 liters, well in line with previous
year levels.
These improvements resulted from Project
CODy, a water footprint initiative begun
in 2010, which aims to characterize and
measure the various types of waste and
segregate clean from oily wastewater
streams in the plant. This opened
opportunities for water reduction and reuse
while minimizing wastewater treatment
expenses. Initiatives in place include
condensible blowdown water reduction and
decommissioning, recycling of stripped
sour water to fluegas desulfurizer and
condensate recovery to cooling water
systems. As a result, the volume of water
recycled in the Refinery (659,351 m3)
constituted 92.7% of the aggregate water
recycled this year.
Petron is also proud to report that
wastewater discharged in its operations
was reduced substantially by 798,510
m3 (27.9%). Further, the footprint in the
Refinery in terms of water discharged for
every MB of crude processed was reduced
to 53 m3/MB. However, the Company
acknowledges that at the depot level, the
amount of water discharged via oil water
separators doubled to 81,945 m3 compared
2012 Sustainability Report
every five years to five tanks, equivalent to
savings of PhP2.0 million a year over the
same period.
Reducing Air Emissions
In 2012, Petron recorded the lowest GHG
Emission since 2008, when GHG Emission
was first reported. This is a testament of
the positive impact of the energy efficiency
programs implemented by the various
operating units.
Total greenhouse gas (GHG) amounted to
950,376 tons of CO2. Of this, the Refinery
remains the biggest contributor accounting
for 99.25% of the total direct and indirect
GHG emissions (892,033 direct CO2 emissions
and 49,253 indirect CO2 emissions).
To manage emissions, Petron employs
Greenhouse Gas-Air Pollutant Accounting and
Energy Conservation measures.
to the previous year. Actions are taken to
improve on this.
Despite this, Petron continues to implement
its water conservation initiative at the
depot level called the Product Recovery
System, which eliminates the use of
water to transport products from the fuel
receiving lines to the storage tanks. The
initiative yields an average reduction of
water effluent to around 1,680 kiloliters
of effluent per month, as well as prolongs
the tanks’ bottom life, having reduced the
previous average of ten tanks for repair
The Refinery has improved its performance
in terms of its Greenhouse Gas Index,
measured as Tons CO2e/MB Crude
processed. The index has decreased by 5.9%
relative to 2011 levels as a result of the
energy efficiency programs mentioned in
the previous section. The Greenhouse Gas
Index significantly decreased by 22% from
28.5 to 22.2 Tons CO2e/KL Fuel Sold.
GHG reduction efforts improved by 6,771
tons of CO2 (5.2%). These efforts were
related to new energy efficiency initiatives
Indirect
Direct
Inland water
Coastal water
29
30
Petron Corporation
implemented at the Refinery this year,
which included the cleaning of the preheat
exchangers used in the Refinery, as well
as the PSV survey. Refinery production
yield a carbon footprint of 26 tons CO2 e/
MB of crude processed, slightly lower than
previous year levels.
In fulfilling our vision of infusing
sustainability into its entire supply chain,
Petron acted on the recommendation
of the External Review Committee in its
2011 report and further widened the
scope of GHG emissions reported to
Scope 3 emissions from the land-based
transport of fuel products from depots
and terminals to the service stations.
This gives Petron a clearer picture of our
impacts down the line. This year, the
Company’s Scope 3 emissions covered
our tank trucks and LPG trailers, with
emissions amounting to 34,539 tons and
5,882 tons, respectively. It was noted that
the said emissions are significant sources
2012 GHG Emission by Source
(Scope 1&2 Emission)
940,260.0
99.25%
5,001.0
0.53%
Other Significant Air Emissions
CO
NOx
SOx
of GHG emission for Petron and account
for 4% of the total emissions (Scopes 1-3
emissions) combined. The road transport
and tank truck modernization, as well
as our Inventory-Driven Delivery System
(IDDS) have helped contribute to the
reduction of our GHG emissions.
Refinery
Operation
1,035.6
0.11%
COCOs
1,079.8
0.11%
Head Office
Other improvements from emissions data
included reductions in nitrogen oxides
(NOx) and sulfur oxides (SOx) by 246 tons
and 678 tons, respectively.
Declining Discharges,
Cleaner Operations
2012 GHG Emission by Source
57,702.4
5.82%
892,674.0
Direct
Indirect
90.10%
Scope3
Waste management is another key area
for us. Not only does it minimize the
environmental impact of our operations,
it also helps improve our internal
processes and make us realize economic
gains in the form of expenses avoided or
additional profits.
40,421.05.
4.08%%
The Company continues to implement
Project SolHaze (Solid Hazardous Waste)
2012 Sustainability Report
at the Refinery. This began in 2010 with a
comprehensive inventory of all solid and
hazardous wastes generated throughout
its operations. From the baseline data, it
was determined that spent caustic soda
and catalysts comprised the bulk of wastes
that needed to be reduced. For 2012, the
refinery was able to reduce consumption
of caustic soda by 4,536 tons and the
spent caustic for treatment by 680 cubic
meters. This translates to a savings of
around PhP70.1 million.
In the depot and terminals, solid waste is
segregated into three categories—green
(biodegradable), blue (non-biodegradable)
and yellow (recyclables). Biodegradable
wastes are segregated and recycled as
fertilizer sources for plants. Through this
practice, collection of local garbage was
reduced from three trips to two per week.
In terms of resource savings, 30 m3 of land
disposal sites were spared and estimated
costs of PhP384,000 were avoided.
At the Pandacan Terminal, recycled drums
are utilized for the filling of selected
lubricants. This initiative minimized the
production of brand new drums which
otherwise require additional energy for
production and result in the release of
combustion gases. Estimated annual
savings from this initiative amount to
PhP22 million due to the price difference
between brand new and recycled drums.
The Company regularly monitors the
movement of hazardous wastes from its
operations. There was substantial decline
observed in Pb batteries (61 pcs. or 76.3%), BFLs
(2,735 pcs. or 69%), oil contaminated material
(1,092 drums or 61.2%), oil sludge (549 m3
or 56.5%), and drums previously containing
chemicals (107 pcs. or 29.5%). On the other
hand, increased movement was observed in the
flow of spent caustic (694 m3 or 100%) and
Cd batteries (159 pieces. or 69.4%).
Since 2010, the Refinery has been
implementing a rating scheme called Waste
Segregation Performance Index (WSPI),
which gauges the performance of different
Refinery sections/departments in terms of
segregation at source. The scheme allows for
proper monitoring, enhances accountability
of area champions of the different sections/
departments and gives a free hand to area
champions to make and implement their own
strategies so as to improve segregation. For
2012, the Refinery has maintained an average
score of 9.7 out of 10 on its WSPI.
Boosting Research and
Development
Petron is always at the forefront of research
and fuel technology through its partnerships
with global research centers, and wellequipped local research and testing laboratory.
In November 2012, the former Pandacan
Laboratory was formally inaugurated as the
new Petron Research and Testing Center
(PRTC). Our upgraded petroleum laboratory is
now equipped with new instruments, fixtures,
and accessories to augment its capabilities
in testing EURO IV fuels for sulfur, biodiesel,
LPG, and environmental samples. PRTC
always examines raw materials before these
are processed, as well as finished products
before these are delivered to industrial clients
or the service stations.
The PRTC’s testing and non-testing areas
have been strategically laid out to ensure
more efficient personnel movement,
prevent occupational hazards, and maintain
personnel safety.
To ensure high level of testing proficiency
conforming to international standards, the
PRTC is working to become accredited in
ISO/IEC 17025:2005 Laboratory Management
System by the Philippine Accreditation Office,
as well as from the DENR-Environment
Management Bureau for its environmental
laboratory that is currently being set up.
31
32
Petron Corporation
BUSINESS CASE
FOR ENVIRONMENTAL
SUSTAINABILITY
Waste
Management
PhP36.02M Savings
Solid hazardous waste
minimization through
recycling and reuse
Water
Consumption
Raw Materials
PhP4.48M Savings
PhP58.67M Savings
679,511m3 reduction or
additional one year water
supply for 4,918 families
for the Refinery
4,463 tons of
caustic soda
2012 Gains
PhP1.30B
savings
Air Emission
PhP1.2B Savings
in fuel consumption and
flare gas recovery
139,140.25 tons CO2
emission reduction
Electrical Energy Conservation
Measures
PhP1.5M Savings
for depots and plants
Waste Management
Solid hazardous waste
minimization through
recycling and reuse
Water
Consumption
Raw Materials
1.66M m
of water
conserved
3
2008-2012
19,689 tons
of materials
conserved
Total Savings
PhP4.32B
Air Emission
394,140.25 tons
of CO2 emission
reduction
Electrical Energy
Conservation Measures
2012 Sustainability Report
Protecting Biodiversity,
Enhancing Ecosystems
The nationwide reach of Petron’s operations
exposes us to the varying conditions of and
risks to our natural environment. Thus we
seize opportunities to protect and
nurture biodiversity.
Integrated Coastal Management
Petron’s main initiative to protect biodiversity
is the Integrated Coastal Management
(ICM) program, a globally recognized, interdisciplinary, and multi-sectoral in approach
that links environmental management with
social development goals.
Led by Petron Foundation, the Bataan
Integrated Coastal Management Program
(BICMP) is a 13-year public-private partnership
among the Provincial Government of Bataan,
the United Nations Development Programme
(UNDP), and the business community
represented by the Bataan Coastal Care
Foundation (BCCF). The BICMP pioneered the
Coastal Land and Sea Use Zoning Plan in the
Philippines, and has been asked to assist other
LGUs, such as the Provinces of Bulacan and
Pampanga, in their respective zoning efforts.
Bataan’s Balanga City and the municipalities
of Abucay, Mariveles, and Pilar are in various
stages of implementing their respective zoning
plans. The BICMP Project Management Office
is also in the process of completing the Bataan
Oil Spill Contingency Plan and developing the
province’s State of the Coast report.
Boracay Beach Management Program (BBMP)
is another ICM initiative that seeks to foster
multi-stakeholder participation in attaining
sustainable development for Boracay Island.
River and Water Body Rehabilitation
Our efforts to promote the health of larger
bodies of water, however, also depend on the
health of the estuaries that flow out from our
cities and into the ocean. Clogged or polluted
water systems can also compromise wellbeing,
affecting food and water quality and leading
to disastrous floods.
In this light, Petron partnered with the
Department of Environment and Natural
Resources and the City Government of
Marikina to support the Adopt-An-Estero/
Water Body Program. The 3.1-kilometer
Concepcion Creek, a major tributary of
the Marikina River connecting three big
barangays that comprise approximately a
third of the city’s population, is the pilot
site for this program.
The program has two main focus areas:
community engagement and engineering
component. Under the former, regular
stakeholder consultations and dialogues
have been conducted, with the Marikina River
Management Council (of which Petron is a
member) established to implement programs
to reduce and manage pollution in the creek.
The engineering component of the program
consists of the dredging, rehabilitation of the
creek banks, and easements, and repair of bike
lanes along three identified areas of the creek.
Apart from the Concepcion creek, Petron has
committed its network of facilities nationwide
to adopt rivers and other water bodies within
the proximity of their areas. As of year-end
2012, Petron facilities in Nasipit, Davao City,
Pampanga, Legazpi City, and Palawan have
instituted their own Adopt-an-Estero activities.
Saving Our Flora and Fauna
Petron continues to support the government’s
National Greening Program and its goal
of planting 1.5 billion trees until 2016
by establishing carbon sinks in our areas
of operation. Initiatives in 2012 include
reforestation programs in the provinces of
33
34
Petron Corporation
Iloilo, La Union, Bataan, and Aklan.
We have also established coral nurseries in
Boracay Island and deployed locally fabricated
reef domes to promote coral growth and
marine life. Periodic beach and underwater
cleanups are also undertaken by various island
communities and stakeholders.
Petron also supported the continuing efforts
to advocate the protection of the pawikan
(Olive Ridley Turtles) and the preservation of
their habitats in Morong, Bataan, as well as
the Balanga City Wetland and Nature Park, a
100-hectare mudflat that serves as a stopover
for migratory birds
Investing in Environmental
Sustainability
There has been a steady increase in
environmental expenditures reflecting the
company’s thrust in sustainable operation. Of
the Company’s PhP166.1 million expenditures
and investments in environmental protection,
80% was allotted to the operation and
maintenance of its pollution control units,
to the proper treatment and disposal of
wastes generated from the facilities, and to
the mitigation of its operational impact on
the environment. There was also an increase
in expenditure on environment training for
contractors and employees to ensure that
everyone is aware and committed to Petron’s
policies and programs on environment.
Expenditures (Million Pesos)
The progress Petron has been making in
its environmental indicators is because the
transformation to sustainability has already
begun within and it is reaching farther out
to its operational network. The Company’s
investments in its operational expansion
through the RMP-2, the expected completion
of which will be by 2014, will allow the
Company to produce more environmentfriendly and superior fuel products.
National Greening Program
Adopt-an-Estero Program
Petron terminals and depots nationwide have been adopting water bodies and watersheds within or near their
areas of operations to support the protection of biodiversity and promote awareness in caring for the environment.
2012 Sustainability Report
Environment Performance by the Numbers
Performance Indicator
2012
2011
36,212 41,300 2010
Materials
•Crude Oil (MB)
41,355
•Fuel Additives (m )
6,968,643
6,830,090
6,247,501
•Chemicals and Catalyst (kg)
8,292,551
5,040,509
4,827,188
•Industrial Gases (m3)
4,876,923
3,571,769
3,372,489
466,015
488,187
467,443
15,854,285
16,488,664
16,193,102
1,697,184
1,613,436
1,559,129
4,397,128
4,794,752
4,472,243
3
Energy
•Total Power Consumption (GJ)
•Total Fuel Consumption (GJ)
•Energy Conservation (GJ)
Water
•Total Water Consumption (m3)
Wastewater Effluent
•Total Wastewater Discharged (m3)
2,066,731
•Percentage Discharged to Coastal
Surface Water
96.5%
•Quality of Wastewater Discharged
Volume Water Recycled (m )
3
2,865,242
3,277,260
96.9%
96.9%
Compliant with DENR Effluent Standards
for Class “SC” Water
659,351
651,370
485,285
Air
Air Emission (tons CO2)
•Total GHG Emission
950,376
1,149,290
1,124,019
•Direct Emissions 892,674
1,090,896
1,067,968
57,702
58,394
56,012
•Indirect Emissions
Other Significant Emissions
•SOx (tons)
10,448
11,126
11,130
•NOx (tons)
1,668
1,914
1,953
1,771
2,665
3,006
Waste
•Total Hazardous Waste Disposed (Tons)
•Method of DisposalThrough DENR Accredited Treaters
Significant Oil Spill Incidents
•Number of oil spill incidents
0
0
0
•Volume of oil spilled (L)
0
0
0
Environmental Expenditures
Total environment protection expenditures
and investment (Million PhP)
166.1
111
92
35
36
Petron Corporation
SPOTLIGHT
Leading By Greening:
Petron Service Stations
Set Themselves Apart
Petron achieved a groundbreaking milestone in
the Philippine oil industry when three of its service
stations implemented the globally-recognized
Environment Management System (EMS) in a
record time of six months in 2011, making Petron
the only petroleum company in the Philippines that
runs EMS-compliant stations. This pioneering batch
of dealers was selected for their level of compliance
and high awareness of environmental regulations,.
Operating a service station business entails
vigilance. Incidents of product spillage in
whatever form may cause obnoxious fumes and
contamination of soil and ground water, not only
in the station but also in surrounding communities.
This is why Petron works closely with its dealers
to mitigate potential environmental risks from
their operations and guides them in complying
with critical environmental laws on Clean Air,
Clean Water, Solid Waste Management, Toxic
Substances, and Hazardous Waste Control,
among others.
According to Corporate Technical and Engineering
Services Group (CTESG) Head Rodulfo L. Tablante,
“The idea behind implementing EMS in our service
stations was born out of our desire to enhance
Petron’s leadership in the local oil industry, as well
as in environmental care.”
The journey begins with an EMS Awareness
Seminar, which shows how the EMS enhances
business performance through environmental
responsibility. Dealers are encouraged to vie for
certification and those interested are helped
through the rigorous process – including developing
a comprehensive manual -- by CTESG’s Area
Engineers from Retail Network Engineering and
Maintenance (RNEM), and Area Sales Executives
(ASE). ASEs Roman Escano and Biboy Montenegro
compared the dealers to students producing a
thesis. “To motivate them, we held workshops
on documentation and complying with ISO14001 requirements.” RNEM Area Engineer Romel
Lucentales was tasked to install new environmental
technologies in each service station without
hampering its daily operations. “What I found more
challenging though, was teaching the dealers and
their personnel the value of EMS in their business.
Luckily, our dealers worked hand-in-hand with
us and each other, creating an atmosphere of
camaraderie.”
CTESG-Environment Head Edith Cabrera then leads
the meticulous EMS audit (she received her EMS
auditor certification from UK-based Certification
International) after the dealers have completed
several months of documentation, training, and
adoption of the new technologies.
“The certification process tested our dedication to
our business and sharpened our awareness of its
impact to the environment,” Davao dealer Cristy
Tan says, “My fellow dealers and I share this success
with our partners in Petron whose patience and
perseverance helped us achieve this milestone.”
Complementing the EMS certification program of
Petron is the greenest service station or GreeneS/S
Awards. Initiated in 2010 by CTESG-Environment
in coordination with Reseller Trade, the program
sought to bring the sustainability agenda closer
to the dealers by encouraging them to comply
with all applicable environmental regulations and
implement programs to manage their operations’
environmental impacts. By rewarding “green
minded” dealers, the program became an effective
approach to introducing them to the concept of
EMS certification.
2012 Sustainability Report
“I am proud to be part of a
company that cares for its
environment. To me, keeping
my business green is my
contribution towards making
our world a better place for our
children and grandchildren.”
HAYDE ALCAZAREN
Dealer, Jasmin Petron station
“We at Petron are always looking for ways to green
our supply chain, from our refinery to our service
stations. Beyond compliance, we look forward to
producing more EMS-certified service stations,”
adds Mr. Tablante.
The GreeneS/S Award though, is hard-earned. The
process starts with the ASE, who will nominate
from his/her area one dealer for each category: 1)
Company Owned Service Station (COSS), 2) Dealer
Owned Filling Station (DOFS), and 3) Micro Filling
Station (MFS). CTESG-Environment then reviews
the submitted documents of best nominees with the
endorsement of Reseller District Managers. Finally,
there is a rigid inspection and validation audit before
top management selects a winner per category.
Petron conferred this year’s GreeneS/S Awardees
last September 2012 in Davao City. For the second
straight year, the city’s own Jasmin Petron station
triumphed in the COSS category. Dealer Hayde
Alcazaren shared that on her first win last year, she
was so proud that she put up a streamer that read
“Green Awardee,” which got her customers asking.
“After I explained what ‘Green Awardee’ means,
they appreciated Petron’s vision and admired
our company for taking the lead in promoting
environmental vigilance in the petroleum industry.
They told me that they feel more assured now that
every time they enter a Petron station to gas up,
they are in a safe and environment-friendly place,”
Ms. Alcazaren shares. “I am proud to be part of a
company that cares for its environment. To me,
keeping my business green is my contribution
towards making our world a better place for our
children and grandchildren.”
Meanwhile, the Chevy Petron station, located
along National Highway in Dipolog City, won in
the DOFS category. Dealer Roland Soliva says,
“Since I opened my Petron service station four
years ago, Petron has dutifully guided me in
keeping my business environment-friendly. I
believe it is our duty to comply with environment
laws. It is a tedious process far outweighed
by its benefits. One with Petron, I hope that
our success will inspire our fellow dealers to
green their operations.” This is the first time a
DOFS station has received a GreeneS/S Award.
Concludes Mr. Tablante, “Petron is determined
to make the operations of our more than 2,000
service stations nationwide more environmentfriendly. After all, a greener supply chain
redounds to a healthier bottom line by further
enhancing our business operations. Additionally,
a fully implemented EMS will improve our
company’s efficiency, resulting to better service
and greater customer satisfaction. It will also
help us minimize our environmental footprint by
allowing us to measure and better manage our
impact. Thus we will not stop at certification, but
will continue to look for ways to further green
our supply chain.”
Davao City’s Jasmin Petron Station (above left) and Chevy Petron Station (above right) symbolize the new breed of service station
dealers who put an equal premium on environmental sustainability as part of their day-to-day business.
37
38
Petron Corporation
SPOTLIGHT
“I Love Boracay…
For Boracay I Will”
Petron makes
sustainability a way
of life in Boracay
Malay Mayor and Mrs. John Yap proudly show off the acclaim given by the international publication Travel+Leisure
naming Boracay as the World’s Best Island for 2012 as well as Asia’s Best Beach.
A pristine island paradise in the Philippines’ Visayas
region, Boracay has gained global popularity since
the turn of the millennium. From a mere 135,000
visitors in 1998, the number surged to 908,000
in 2011, and breached 1.2-million in 2012. While
this has spurred economic activities through a
vibrant tourism industry, the unbridled growth
has also created attendant problems such as the
degradation of its coral reefs and natural habitats,
poor sanitation, water pollution, and many others.
The BBMP is a collection of strategic and
sustainable initiatives driven by the collaboration
of all its stakeholders. Here, the concept of publicprivate partnerships is at its finest, with industry
leader Petron Corporation linking hands with the
Municipality of Malay, Aklan, and the Boracay
Foundation, whose membership of over 100
various small-, medium- and large-scale businesses
in the island are working together in implementing
the program.
Various interest groups have attempted to address
these growing problems in Boracay. Concerned
however at the prospect of failure if efforts
remained piecemeal and lacking in coordination,
Petron Corporation joined hands with the
Municipality of Malay and the Boracay Foundation,
Inc. (BFI) to implement the Boracay Beach
Management Program (BBMP).
The BBMP is also based on the globally recognized
Integrated Coastal Management (ICM) framework,
which provides an integrated approach to
“Petron has always been a staunch advocate
of the environment, and we are determined to
make significant contributions towards Boracay’s
maintenance and rehabilitation,” said Petron
Chairman and CEO Ramon S. Ang. “Through the
BBMP, we hope to impact a sustainable change in the
lifestyles of both residents and visitors of Boracay to
preserve the island for generations to come.”
The BBMP focuses on seven
priority programs:
•
•
•
•
•
•
•
effective governance
coastal resources management
water and wastewater management
watershed protection
solid waste management
hazard prevention, and
information, education, and communication.
A Technical Working Group (TWG)
was established with representatives
from local government, the business
community, and other concerned
stakeholders to oversee and ensure
proper implementation.
2012 Sustainability Report
addressing multiple resource-use conflicts. This
was further enhanced by a scientific forum
and consultation workshop conducted in April
2010 among the various Boracay stakeholders
by experts from the UNDP Partnerships in
Environmental Management for the Seas of East
Asia (PEMSEA) and scientists from the U.P. Marine
Science Institute (UPMSI) to better understand
the state of the environment and develop a
concerted plan of action for its rehabilitation and
sustainable development.
From its simple beginnings three years ago, the
BBMP has evolved today into a transformative
force in Boracay for both environmental
excellence and sustainable development
through effective local governance with multisectoral support. It has already fast-tracking
the rehabilitation of corals, encouraging greater
efforts in mangrove reforestation and watershed
protection, facilitating the vast improvement of
the island’s water and sewage systems, sustaining
a model waste management practice, and
strengthening emergency response capabilities
for better hazard management.
Because of its systematic advocacy campaign
anchored on the theme, “For Boracay, I Will…”,
BBMP encourages both locals and foreigners alike
to do their share in saving Boracay. Contributing to
BBMP’s overwhelming success are the following:
• A clear program of action based on an internationally proven scientific framework
• Strong political will and leadership from a committed and visionary local chief executive
•
•
•
•
•
•
Clear accountabilities for delivering results in priority areas through “champions”
Regular coordination via the Technical Working Group (TWG)
Widespread multi-sectoral and
inter-agency engagement
Community outreach and participation through volunteer partners
Milestone celebrations to recognize group and individual accomplishment/contributions
Consensus-building through information, education and communication programs.
Malay Mayor John P. Yap lauded the public-private
partnership that is helping transform the island
paradise. “Local government can truly succeed
in attaining our vision if we have partners willing
to help build and nurture our community with us.
I am thankful that people have come together
to work hand in hand with us in helping achieve
sustainable development, whose impact I believe
will go beyond the shores of Boracay.”
On its third year, the Municipality of Malay
celebrated the BBMP’s milestone be declaring
it as Boracay Day. The celebration was an
opportunity for coming together and joining the
various initiatives that will ensure that this island
paradise sustains its tourists and nurtures its
residents. With the theme “WE LOVE BORACAY,”
Petron, as a major stakeholder and proponent, is
proud to wear its heart on its sleeve.
39
40
Petron Corporation
Social
Performance
Labor Practices
1,951
Health and Safety
Number of employees
80
Average number of
hours of training
per employee
4%
Attrition Rate
Human Rights
Zero (0)
Incidence of child
labor in any aspect
of operations
Zero (0)
Incidence of
discrimination
in any aspect of
operations
31
Facilities
Recipients of the Safety
Milestone (SMile) Award from
the Department of Labor and
Employment (DOLE)
for operating without Lost
Time Incident.
Product Responsibility
133,018
Feedback and inquiries received
and handled by the Petron
Customer Interactive
Center (PCIC)
Community
100%
Percentage of Petron terminals and depots undertaking social
development initiatives
100%
Percentage of employees who volunteered their time, treasure, or
talent in Petron’s CSR programs
12,719
Number of non-employee volunteers
2012 Sustainability Report
41
42
Petron Corporation
Petron’s Management Approach
to Social Sustainability
Human capital development is crucial to
Petron’s long-term goals. We identify two
types of human capital that we consider
as our network: permanent communities
and mobile communities. Our permanent
communities are our employees, our
fenceline areas, and our direct business
partners while our mobile communities
are the general public who patronize our
products. We consider them the driving
force behind our business and work
closely with them in the mutual aspiration
of national development that filters to
all levels of society. We believe that the
connections we have with our communities
pave the way in ensuring the sustainability
of our business.
Nurturing our Permanent
Communities
Through the leadership of our Human
Resources Department, we provide
training, incentives, and a continuing career
development program to strengthen the
competencies of our employees. To attract
and retain the best people, the Company
commits to a safe and healthy workplace
that fosters professional development and
promotes economic and personal wellbeing.
This commitment is deeply ingrained in
our business practices because Petron’s
value proposition rests on our solid
track record in safety performance. Our
Occupational Health and Safety Policy
uses a standardized system to effectively
monitor the progress of safety programs,
and conducts company-wide campaigns
and activities on fire protection, disaster
response and mitigation, among others.
We always strive to protect employees,
contractors, and the immediate community
in all areas of operations. We establish a
decent workplace by prioritizing industrial
peace and harmonious relations. We
conduct business responsibly and uphold
inclusivity and non-discrimination, and
Petron has a policy on the employment of
cultural minorities and indigenous peoples.
Petron values independent assessments
against internal standards, adheres to
international human rights principles,
and complies with Philippine labor laws,
expecting all partners to uphold them as
well. All applicable laws and regulations
serve as the linchpin of excellent
performance. To monitor our human rights
activities, all employees are expected
to report any violations and hence, are
accountable for its various aspects.
Overall responsibility for Petron’s Human
Resource Management rests with the
HRM Assistant Vice President, while
various heads of line divisions occupying
Vice President positions oversee labor
concerns, in consultation with the General
Counsel and the HRM Assistant Vice
President. Overall responsibility for safety
performance rests with the Safety and
Engineering Section of our Corporate
Technical and Engineering Services Group,
in coordination with line divisions.
We work closely with fenceline communities
and other stakeholders through meetings
and consultations on their needs and
expectations.
A concrete testament that underscores
CSR as a boardroom agenda in Petron
Corporation is the top-level organization
of the Petron Foundation (PFI). The
Company’s Vice Chairman serves as
the Foundation’s Chairman and the
Company’s Chief Financial Officer as the
Foundation’s President. PFI, led by its
General Manager, develops and implements
strategic programs aimed at creating
2012 Sustainability Report
greater value for our communities while
in partnership with key internal and
external stakeholders. While PFI is the
lead implementing unit for Petron’s CSR
commitments, all business units are able
to effectively integrate the CSR agenda into
their respective operations.
Strategic CSR, for Petron, is a proper way to
strengthen and improve on the Company’s
positive contributions to the nation and to
the communities where it operates, while
minimizing negative impacts.
Reaching Out to Our Mobile
Communities
We built our name and reputation on
safe, high-quality, reliable products and
services that best fuel the needs of the
everyday Filipino, allowing us to flourish
in the industry for eight decades. Investing
in research and development is crucial to
the introduction of fuel products that live
up to the brand’s promise and customers’
expectations, and comply with local
and international standards. The latest
technologies are utilized to continuously
improve our petroleum products.
Petron’s product responsibility extends to
our commitment to our mobile community
in terms not only of product excellence
but also related advocacies such as road
and product safety and environmental
protection. We take the lead in the effort
to guarantee the integrity of our brand and
take pride in our practices for responsible
product labelling and advertising, ensuring
that we comply with laws and standards.
Through the Petron Customer Interaction
Center, and the consumer research or
Brand Health Tracking initiative, we
maintain communication lines with our
customers and ensure their satisfaction
with our products and services.
Most importantly, through our products and
campaigns, we communicate our Company’s
role in driving economic growth, and in
fueling community and social development.
We aim to connect our business with all
our consumers, enabling them as prime
contributors to our advocacy for sustainability.
Activities like assemblies with students allow us to engage our communities in a meaningful stakeholder dialogue
and encourage their active participation.
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Petron Corporation
LABOR AND HUMAN RIGHTS
Attaining Targets Because of
Our People
Powering the engine behind our 2012
growth are our people. Because Petron
believes in the partnership between
business and society as the foundation
of growth and progress, our managers
and employees possess a strong service
orientation to the community.
Last year’s milestones, while ambitious,
proved within reach. Among them were
the expansion both in terms of domestic
network and into foreign shores, the first
firing of Unit One of the Bataan Refinery’s
power plant, the inauguration of the
Petron Research and Testing Center, and
the record-breaking safe-man hours. Our
employee volunteerism remained at 100%,
and when tragedy struck in Mindanao,
where thousands of people lost their lives
and property or were displaced due to
Typhoon Pablo, our people -- together with
those from other San Miguel business units
-- coordinated and manned a month-long
soup kitchen and relief operations in the
devastated areas. Given these achievements
of 2012, the level of excellence, productivity,
and malasakit (compassion) among
employees is something that we strive to
protect and surpass.
Training a Strong Workforce
employees. Each employee logged in an
average of 80.12 hours of training . While
the average decreased from 2011’s 86
hours due to the increased manpower, 2012
still logged the greatest number of hours
in terms of total over the last five years at
156,323 hours, which was 21% higher than
the 2011 figure. Professional and technical
personnel again accounted for the bulk of
the training hours at 45%, majority of which
were conducted for the Refinery at 96,894
hours, followed by rank and file at 43%.
We also offered a diverse coverage of topics
so that employees are able to respond to
the demands of the job, maintain wellbeing, and remain competitive in this
dynamic industry. A total of 165 in-house
learning programs were conducted on top
of foreign and local training, with programs
running multiple times throughout the
year. Continuing education in accredited
colleges and universities may be availed by
interested, eligible employees through the
Educational Reimbursement Program.
Being the Employer of Choice
Our Company continuously seeks to be the
employer of choice in the local oil industry,
and to always foster a safe, ideal workplace
that upholds and complies with local and
international labor practices and standards.
We continue to offer a compensation and
benefits package that remains one of the best
in the industry, with an entry-level wage that
Training and development play a critical
role in the top performance of personnel,
especially with manpower complement
increasing by 29.7%, from 1,504 to 1,951
full-time permanent and probationary
Average Training Hours per Employee per Employee Category
Category Executive Managers Supervisors Prof/Tech R&F
Average Hours/
Employee
10.6 34.97 56.44 80.88
95.65
Average Days/ Employee
1.32 4.37 7.05 10.11 11.96
2012 Sustainability Report
is 2.03 times higher than is mandated by law.
All permanent, regular, full-time employees
are covered by a defined benefit pension
plan administered by trustee banks.
There was an increase in the number of
employees across all levels as we match
the manpower requirement attendant to
growth, especially at the rank and file
level, from 468 in 2011 to 708 in 2012.
Attrition rate was at 4%, with the majority
of separating employees being males and
from the 20–29 age group. There were
1,391 contractual employees last year.
Most of these contractuals were hired
through accredited, legal contractors while
the rest were independent professionals
such as medical retainers. All permanent
employees received their regular
performance and career development
reviews last year.
While the industry is heavily maledominated, figures over the last five years
show that the percentage of female middle
and senior managers remain substantial at
Petron. The nature of the industry requires
physical exertion/exposure that draw more
male applicants, however, we observe
the highest standard in gender equality
at the workplace. Our compensation
and promotions are based on merit and
experience. Ratio of basic salary between
the genders shows a large percentage
for the male employees because of the
consistently larger male population across
all employee levels. Actual average pay of
female employees is about the same as the
average for male employees.
We do not tolerate any form of
discrimination, whether in terms of
gender, religion, political beliefs, and
other kinds of affiliations, and employees
are provided with protective mechanisms
and a labor-management council, both of
which facilitate filing of grievances and
discrimination cases, supported by an
open-door management approach. Thus,
there were no such incidents and cases filed
against us last year.
Employees by Gender
Male
Female
Turnover by Gender
Male
Female
Turnover by Age
50-59
40-49
30-39
20-29
For more discussion on our Labor
Statistics and Training Programs, visit
www.petron.com
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Petron Corporation
Fostering a Safe, Healthy,
Decent Workplace
We make sure that none of our full-time,
contractual, and sub-contracted operations
are at risk for human-rights violations,
such as incidents of child labor and forced/
compulsory labor. We only directly hire college
graduates as regular employees based on the
knowledge and skills required by the job.
Employees also have the right to join any
of our Company’s three labor unions,
which has membership from our various
facility locations. Union members come
mostly from our Supply and Operations
and Refinery Divisions, with the former
seen to be facing the most risk in terms
of their freedom of association given that
the depots and terminals are spread out
all over the country. In actual practice,
however, this challenge has not hindered
the employees from exercising their
rights as we have always maintained open
communication lines and avenues for
discussion with our employees.
We support and protect the freedom of
association and the right to collectively
bargain, and there has been an increase
in the percentage of employees covered
by collective bargaining agreements, from
31% in 2011 to 36% in 2012. Harmonious
industrial relations continue to be a
Our employees enjoy the freedom of association and the right
to collectively bargain. They are likewise free to join any of the
Company’s three labor unions from all sites of operations in
the Philippines.
Percentage of employees covered by
collective bargaining agreements
2012 2011 2010 2009 2008
36% 31% 33% 34% 35%
sustainability priority in Petron. In the
Refinery, Labor Management Meetings
(LMM) are held monthly. We have
activities that support the employees’
right to self-organization and collective
bargaining such as the Industrial Peace
Day. Union rights are stipulated under
the CBAs like the union security clause.
The landmark 2011 CBA with one of the
unions, negotiated and concluded within
two hours, shows the mutual trust and
respect that our management and rank
and file employees have for each other.
Negotiations with the two other unions
were also quick and smooth.
As we deepen the practice of sustainability
throughout our supply chain, we commit to
identifying aspects of our entire operation as
well as significant suppliers that may prove a
risk to freedom of association and the right
to collective bargaining.
Corruption is strictly prohibited by law and is
not tolerated in Petron. The Company strictly
adheres to high standards of ethical conduct.
Through our Board and Management, we
have developed a comprehensive internal
control system that ensures efficient and
effective management of activities so as to
meet the organization’s objectives. While we
have not actively identified business units
vis-a-vis their exposure to corrupt practices,
this internal control system is designed to
manage the risks to which the Company is
exposed to, including possible breaches of
integrity. We are thus proud to report that
there was no incidence of corruption in the
Company in 2012.
2012 Sustainability Report
means by which suppliers and contractors
can accelerate their own growth and
improve on their technologies and practices.
This allows them to be preferred partners
of our Company.
SOCIETY
Embracing a Comprehensive
Approach to Development
We continue to emphasize that it is the
responsibility of employees to monitor
and report violations of laws and Company
policies. Last year, we had four sessions of
labor relations seminars which included
modules on corruption, anti-discrimination,
and anti-harassment.
Elevating the Standards of
Excellence Among Our Partners
We take an active role in the Department of
Labor and Employment’s (DOLE) Kapatiran
WISE-TAV (Work Improvement for Small
Enterprise - Technical Assistance Visitation),
a big-brother-small-brother partnership.
In 2012, we welcomed 200 “small brothers”
to participate in the Kapatiran. As big
brothers, we help them to comply with the
government’s regulatory requirements,
increase productivity of the workers, and
promote occupational health and safety
at the workplace. By participating in
the program, we serve as benchmark for
sustainable development practices that our
contractors and service providers can begin
to adopt through our proper guidance.
Given the growth and expansion that we
have been experiencing, Kapatiran is also a
Petron adopts a results-oriented,
stakeholder-centric approach that allows
the business to connect more meaningfully
with various communities and introduce
a trajectory of inclusionary growth. We
are able to achieve this by including CSR
in our business planning guidelines and
positioning it as a primary strategy for
optimizing business value.
We conduct a site assessment to gather
baseline data on various aspects of
communities where we are present. We
study all possible impacts of our presence
and operations, including health and safety
issues and infrastructure construction.
We document and establish the socioeconomic profile and the general health
condition of the community. Some of our
activities include Hazard Identification Risk
Assessment and Control; Environmental
Site Assessment; an Annual Work
Environmental Measurement to establish
noise levels, air quality, and soil quality;
and a Hazard Operability Studies and fire
scenario heat models per project.
Program monitoring is a vital component of
all CSR programs. Results of our monitoring
and documentation guide the programs
on education, livelihood development
and micro-financing, community health
and social services, and the environment.
Programs are also measured against
national and global development goals and
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Petron Corporation
principles. Regular stakeholder engagements
are conducted to make sure that programs
are able to achieve their objectives and to
address any shortfalls immediately.
Training and awareness cover topics that
ensure the health and safety of the site and
the community such as oil spill seminars,
Pollution Control Officers training, annual
audits and inspections, emergency response
and rescue, and firefighting, some of
which are open to the community to build
their capacity to properly respond to
emergencies. We fulfill requirements such
as environmental compliance certificates,
barangay clearance, zoning clearance, and
certificates of non-coverage.
Fuel H.O.P.E.: Lighting the Path
to a Brighter Future
We continued the implementation and
monitoring of long-running projects under
“Tulong Aral” (send
a child to school):
Elementary Education for
Children in Urban Poor
areas in Metro Manila and
in Mindanao
> Social Preparation
> Fund Sourcing/ Management
> Educational Assistance
(Tulong Aral)
> Mentoring Program
> Tie-up with Schools/
Agencies for Support
Programs/Activities
> Stakeholders’
Workshops/Planning
and Review Sessions
3,486 Scholars for
SY 2012-2013
5,176 Scholars who
have graduated from
elementary since 2008
“Tulong Aral”: Preschool /
Day Care Center
1
PHASE
High School Education
for Outstanding Students:
with Leadership Courses
and Community Service
Program
369 Scholars for
SY 2012-2013
258 Scholars who
have graduated from
high school
2
Fuel H.O.P.E., a poverty-alleviation program
that is anchored on enhancing support
for basic education particularly on grade
school children, and have since expanded
coverage to livelihood creation, the social
development aspects of environmental
protection, and health and safety. This
expansion grows from an improved
understanding of the interconnectivity of
these aspects in empowering communities
and fueling a more inclusive growth.
Training on enterprise development,
health and human services programs, and
environmental initiatives enhance the
projects under Fuel H.O.P.E.
Building the Future through Education
Considered the longest-running senda-child-to-school program done in
collaboration with Department of
Petron College
Scholarship/Technical
-Vocational Program
> College Scholarship for
Outstanding Students
(Engineering and other
related fields) c/o PFI
and PBR
> Technical/Vocational
Scholarship
Link with other
Foundations/Schools/
Institutions offering
scholarships
Employment
Opportunities in
Petron (e.g. Petron
Bataan Refinery,
Service Stations)
4
PHASE
171 Scholars for SY 2012-2013
3
PHASE
PHASE
Petron’s Roadmap
for Poverty
Alleviation
through Education
Employment
Educational Assistance
(with support system)
• Preschool
• Elementary
• Secondary
• Tertiary/Vocational
Training and Development
• Access to Technology
• Entrepreneurship
• Employment
2012 Sustainability Report
Year 2012 saw the graduation of the fourth batch of TAP Elementary Scholars and the first batch of High School Scholars.
Twenty-four proceeded to tertiary education through the Tulong Aral ng Petron College Scholarship Program.
Education (DepEd), Department of
Social Welfare and Development
(DSWD) and the Local Government
Units, Tulong Aral ng Petron (TAP)
addresses the educational needs of
children from urban poor families and
measures its impacts using performance
indicators established by DepEd such
as completion rate, cohort survival rate,
and dropout rate to ensure quality,
concrete results.
levels. Employment in Petron awaits
scholars graduating from the tertiary level
and the technical-vocational courses.
In 2012, the following were our
achievements in Tulong Aral Elementary
and High School:
We subscribe to a “ladder” approach
which allows us to strategically
implement Tulong Aral, one phase at
a time. The ladder has four phases
covering educational assistance through
scholarships at the elementary, secondary,
and tertiary or technical-vocational levels
and employment opportunities at Petron.
Top scholars from the elementary level
receive further support from Petron as
they move to the secondary and tertiary
Cohort Survival Rate
2012 2011
Elementary
High School
71.5%
86% 73.7%
––
Number of Tulong Aral Scholars
who graduated in 2012
Elementary
High School
1,100 students
258 students
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Petron Corporation
At the tertiary level were 29 TAP scholars
in nine colleges and universities. Petron
Bataan Refinery Engineering Scholarship,
which complements the Refinery’s OJT
and apprenticeship program, posted a 43%
increase in the number of scholars from 99
in 2011 to 142 in 2012.
The Tulong Aral program is supported
by mentoring sessions, social preparation
of the students for better integration and
performance, an annual leadership program,
joint support projects with schools and
agencies, financial assistance and free
provision of books, school supplies, and
uniforms. The program features a daily and
supplementary feeding allowance to address
the undernourishment or malnourishment
among the children and eventually remove
or minimize incidences of absenteeism. Food
preparation in some schools is done by the
Petron Parents Association.
software (teacher training and reading
program). Infrastructure development
through classsroom construction and
repair also continued last year.
Supplementing the grant from USAID and
the Whole School Reading Program (WSRP)
is Petron’s commitment to improve
reading proficiency and develop a lifelong
love of reading.
Indeed, these programs demonstrate
Petron’s strategic response to help
overcome poverty through education,
through an active partnership with the
schools, parents, communities, employees
and business partners.
Encouraging Self-Reliance through
Entrepreneurship
Petron’s livelihood development and
capacity building thrust covered the sevenyear-old Youth in Entrepreneurship and
Leadership Development (YIELD) program
and new modules on microfinance, values
formation, and skills training.
In 2012, YIELD trained 100 qualified
incoming third-year high school students
from Muntinlupa Business High School
The Whole School Reading Program (WSRP) builds and
improves the reading foundation skills of students,
teachers, and school administrators in 53 selected
schools in poor and conflict areas in Mindanao
benefitting 38,566 students. The program was formally
signed by Education Development Center Chief of
Party Marcial Salvatierra, Petron Foundation General
Manager Marilou Erni, Petron Corporation Vice
Chairman Eric Recto, DepEd Secretary Bro. Armin
Luistro, USAID Education Chief Robert Burch, and
DepEd Adopt-A-School Program Operations Manager
Merlie Asprer.
A holistic approach to educational
development is undertaken together with
various relevant agencies to deliver the
necessary hardware (classroom repair and
construction, schoolbook donation) and
AVP for HR Cherrie Vergel de Dios celebrates the
graduation of YIELD trainees.
2012 Sustainability Report
(MBHS), bringing the total to 827 studenttrainees over the last seven years. YIELD
is an intensive 240-hour on-the-jobtraining at participating company-owned,
dealer-operated service stations. Petron’s
participation in the entrepreneurship
curriculum of MBHS includes an on-job
training on forecourt operations, food
service and back-office management.
On the other hand, Petron’s microfinance
program benefitted members of the
transport group, whom the Company
considers one of its most important
stakeholders. Their dependents were also
part of a skills training program on auto
servicing, computer programming, and
computer hardware, among others.
In our fenceline communities in Bataan, we
implement the Sulong KaBarangay Program
together with the PinoyME Foundation.
Sulong KaBarangay is a holistic community
and enterprise development program in
Limay, Bataan, which also serves as a model
for stakeholder engagement. The livelihood
and enterprise development aspect of
the program saw an upscale in the ragmaking project for the women in Barangays
Alangan and Lamao. The members of
the group are now starting to earn from
the project. The rag sewers have since
been formalized and registered with the
Securities and Exchange Commission.
This allows the Bataan Refinery to
partly source its rag requirements from
the group.
the healthcare services available at the
barangay health centers.
Feeding programs that ran from four
to 10 months benefitted at least
1,447 beneficiaries while our Soup
Kitchens reached 45,924 individuals
last year. Medical mission beneficiaries
numbered 4,299. Further contributing
to the community’s health and safety
are Petron’s accreditation of safety
practitioners and the Company’s road
transport program so that drivers and
contractors observe safety protocols and
do not endanger the lives of communities
they come into contact with.
The fulfillment of our various
CSR Programs would not have
been possible without the
dedication of all our employees.
In 2012, man-hours for volunteer work
reached 64,827. One hundred percent of our
employees contributed their time, treasure,
and talent to the various CSR programs; nonemployee volunteers, which include dealers
and business partners, were at 12,719. The
Volunteer in Action program testify to the
commitment of our employees in enhancing
Petron’s value within a larger community
and the belief that doing good supports the
business goals our Company.
Promoting Stewardship
in the Health and Human Services
Petron contributes to the health and
safety of the communities of Bataan and
Pandacan through the Petron Community
Health Centers, both of which augment
Eighty volunteers spent one Saturday morning building
houses in Navotas in a program with Habitat for
Humanity. Our employees enthusiastically engage in
volunteering activities throughout the year.
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Petron Corporation
Petron’s Social Performance Data
2012
2011
2002-2010
I. Education
A. Elementary Scholarship Program
Scholars to date
3,486
4,513
5,232
Scholars who finished grade level
4,481
5,288
6,000
Number of graduates
1,100
1,366
1,989
Completion rate
95.5%
97.5%
96.7%
Cohort survival rate
75.1%
73.7%
78.4%
4.5%
2.5%
3.3%
Dropout rate
First honor scholars
16
22
269
433
693
3,310
Scholars to date
370
439
373
Number of graduates
258
--
--
98.20%
94.20%
96.60%
86%
--
--
2%
5.76%
3.39%
4
8
2
52
51
34
460
227
537
29
--
--
9
--
--
142
99
39
Petron Schools Constructed (in partnership with PBSP,
USAID, TVI)
2
16
61
Classrooms Built (in partnership with PBSP,
USAID, TVI)
5
31
161
Number of Pre-schools built (in partnership with Aklat,
Gabay, Aruga tungo sa Pag-angat at Pag-asa [AGAPP])
2
7
Classroom repaired with USAID and under the Brigada
Eskwela Program
231
392
587
977
3199
4150
--
175
1963
53
114
Outstanding students
B. High School Scholarship Program
Completion rate
Cohort survival rate
Dropout rate
First honor scholars
Outstanding students
Scholars who benefitted from leadership workshops
C. College Scholarship Program
Scholars under Tulong Aral
No. of Schools/Universities with TAP scholars
Refinery Engineering Scholars
D. Classroom Construction and Repair Program
E. Teachers Training
Number of teachers/mentors/trainers/
administrators trained
Beneficiaries of Programang Kaakbay Conference/SAS
Enrichment Workshop
Number of schools reached
F. Reading Program
Number of students who benefitted from the reading
program in partnership with DepEd/USAID
Number of schools reached
Number of books distributed
38,566
8,641
53
64
40,000
11,576
2012 Sustainability Report
II. Environment
Mangrove/tree seedlings planted
52,924/
4,880
40,650 /
2,300
288,870 /
43,903
125
100
812
50.25 km
10.25 km
145 km
9
1
--
1,447
3,060
6,953
45,924
29,930
96,482
4,299
6,745
13,859
433
families
--
150
families
100
100
627
--
28
Areas covered by the reforestation program (in has.)
Total kilometers of coastline cleaned
Number of estero and water bodies adopted
III. Health And Social Services
Beneficiaries of Feeding Program
Beneficiaries of Soup Kitchen**
Beneficiaries of Medical Mission
Number of houses built (GK Energy Village I & II /
Habitat iBuild / Cagayan de Oro / Iligan /
Negros Oriental Housing Program)
IV. Entrepreneurship/Microfinance
And Livelihood
A. Youth in Entrepreneurship Program
Students who benefitted from the Summer on-JobTraining in Petron Service Stations
Students who benefitted from the mentoring by Petron
Employees
2,240
B. Microfinance
Beneficiaries of Rosario, Cavite
839
895
--
Beneficiaries from the Transport Group
812
--
--
C. Values Formation and Skills Training
Beneficiaries of Skills Training for Transport Group
Beneficiaries of Skills Training for Out Of School Youth
in Bataan
Beneficiaries of Values Formation for Out-of- School
Youth in Bataan
25
68/33
253
210
1,635
1612
8,446
V. Volunteerism
Employee volunteers (time/talent/treasure)
Employee volunteer hours
16,548
16,120
135,040
Non-employee volunteers**
12,719
5149
46212
Non-employee volunteer hours**
48,279
28,585
282,750
*service count
“Volunteering for worthwhile projects is my way of
reaching out and sharing to our less fortunate fellowmen.
Volunteering reminds me of how blessed I am and prompts
me to share this with other people. Education is especially
close to my heart as I firmly believe it’s the best gift we can
bestow on the generations after us.”
SUSAN Y. YU
Vice President for Procurement
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Petron Corporation
PRODUCT RESPONSIBILITY
Aiming for Product Improvement
Last year, we
developed
innovations to
five existing
products—
Petromul SS01,
Rev-X All Terrain,
Hydrotur T46,
Regatta and
Petromaar HF5040. All our previous
products have been subjected to similar
evaluation.
Through the newly inaugurated Petron
Research and Testing Center (PRTC),
our Company utilizes the top of the line
technology for the development and
continuous improvement of our petroleum
products. There are challenges ahead brought
about by changing product specifications,
engine operating requirements, more stringent
environmental regulations, and changing
product component properties—the PRTC is
equipped and ready to meet them all.
Ensuring a More Responsible
Life Cycle
We make sure that throughout all the stages
of the life cycle of our products—from
introduction to growth and maturity to
“decline”— the health and safety impacts
on users and consumers, as well as the
environment are considered. During its maturity
stage for instance, fuel products are subjected
to reformulations and enhancements necessary
to ensure that they comply with the latest
local and international standards.The decline
of a product, when it is no longer marketable,
is considered an opportunity for innovation.
Product development at this stage is driven by
updates in the market as well as changes in
fuels technology.
For more thorough discussion and listing
of all our products and services, visit
www.petron.com
Enhancing Product Knowledge
and Awareness
All our products carry appropriate
information and proper labeling on matters
which are considered important disclosures
so that consumers will be adequately
informed of their environmental, health, and
social impacts. All our products have Material
Safety Data Sheets.
We also reach out to different LGUs and endusers to conduct information and education
campaigns in support of environmentrelated programs. Part of these information
campaigns are product knowledge seminars
and demos conducted for tricycle and jeepney
2012 Sustainability Report
operators and drivers on the appropriate use
of motorcycle oils, diesel engine oils, engine
decarbonizer, among others, to comply with
emission limits. Also, in support of LGU
initiatives, we provided product and logistics
support to the following LGU programs: TricyClean Project of Quezon City, Tricy-Clean
Project of Taguig City, and Quezon City Clean
Air Compliance Assistance Program.
Using a Consumer-Centric Approach
to Improvement
There are many ways to connect with and
engage consumers.
At the basic level, we receive feedback from
customers via the following platforms: the
Petron website, the Petron Customer Interaction
Center (PCIC) where various customer concerns,
inquiries, and complaints on orders, facilities
and prices are attended to, and the feedback
program at the service stations where posters
in place indicate a hotline number where
customers can send feedback via SMS. The
number of PCIC inquiries and feedback in 2012
was 131,230, almost 50% increase from 66,942.
This may be attributed to the transition of the
Luzon, Visayas, and Mindanao depot networks
into PCIC, where previously, PCIC only handled
Pandacan, Navotas, and Pasig. In 2012, PCIC
effectively centralized and handled all order
bookings and inquiries. All callers are informed
that the calls are recorded.
Consumer feedback collected are incorporated
in qualitative and quantitative research
initiatives, such as quarterly mystery shopping,
We secure our consumers’ health and safety through
every stage of our products’ life cycle.
which seek to capture the overall service
station experience; and customer feedback
studies, which seek to profile product users and
determine consumer perception of our brands.
Under the customer feedback studies, we
conduct Brand Health Tracking (BHT) studies
for our fuel brands on a weekly basis among
consumers from Metro Manila, Metro Cebu,
and Metro Davao. This helps us measure
our performance on key consumer factors as
compared to other brands, and gauge if our
products and brands are able to meet our
consumers’ needs. The scope of the BHT studies
in 2012 included a total of 6,000+ respondents.
We have not received any complaints regarding
breaches of customer privacy.
We proudly state that there were no incidences
of non-compliance with regulations and
voluntary codes concerning marketing
communications, including advertising,
promotion, and sponsorship, which would
have resulted in significant fines or penalties.
We are an active member of the Philippine
Association of National Advertisers and
uphold the rules and regulations concerning
marketing and information materials.
Advertising and promotional materials are
duly screened and cleared.
Overall, the results of the consumer market
research initiatives conducted show that we
continue to be a strong brand in the fuel category.
Users buy our premium, regular, and diesel
products. Our business has high brand equity
among public and private motorists; the top
reasons for using Petron include good location,
engine performance benefits, and fuel quality.
While we have achieved headway in terms of
incorporating sustainability in our operations,
we continue to improve ways to communicate
this agenda to our consumers and include it
in their overall perception of the Company in
the long run.
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Petron Corporation
SPOTLIGHT
Petron Reaps Safety
Recognitions,
Makes Safety
Second Nature
Firefighting is among the skills regularly instilled among our employees and members
of our fenceline communities.
Safety at Petron begins with each employee’s
commitment to it and cooperation among those in
our supply chain and our partner communities. The
Petron Safety Council strengthens the coordination
of safety and health practices across all sites of
operations, improve our Company’s performance,
share Behavior-Based Safety (BBS) tools, and
promote safe operations through productive
discussion. Our employees likewise provide
valuable inputs towards a safe work environment
through their representation in our Health, Safety
and Environment (HSE) Committees (13% of total
workforce in 2012).
Ortega also received the Gawad Kaligtasan at
Kalusugan Award of Honor for the institutional and
individual categories, respectively, for excellence in
occupational health and safety.
Our BBS program continued to cultivate a
pervasive corporate culture of safety. An Online
BBS Reporting Application system is in place
to streamline the reporting of BBS initiatives.
“Near Miss Mo, I-patrol Mo!”, a BBS module,
enjoins employees to point out “unsafe” or at-risk
practices through vigilant reporting and proactive
prevention strategies.
This safety consciousness allowed our entire Petron
operations to attain 2.23 million safe man hours
in 2012, while reducing minor plant and personnel
related incidents from 25 in 2011 to 21 in 2012.
On February 2013, we celebrated a rare industry
milestone when all our 32 depots and terminals
across the Philippines accumulated 50 million
safe man-hours without lost time incident. This
is equivalent to 18 years of operating safely,
preserving our resources and most importantly,
lives. Our depots and terminals, as well as safety
practitioners, received the Department of Labor
and Employment’s (DOLE) Safety Milestone (SMile)
Awards, with our facilities in Iloilo, Poro, Rosario,
Mactan, Tacloban, and Davao becoming Hall of
Famers for garnering five consecutive SMile Awards.
Tacloban Depot and its superintendent Joey P.
The Refinery Safety Pledge concretizes the shared belief
and commitment among the Refinery and its industry
partners to think, breathe, and live safety at all times.
2012 Sustainability Report
Personnel from Petron’s Depot Operations celebrate the milestone marking 50 million safe man hours
without lost time incident equivalent to 18 years of securing our safety.
We conducted a Contractor Safety Workshop as a
venue to share insights, comments and ideas among
employees and industry partners and to further
strengthen and improve safety in the Refinery. This
was highlighted by the signing of a Safety Pledge
of all participants to affirm their commitment to
safety through compliance with Petron’s safety
policy, development of skilled workers, continuous
improvement and effective communication/
coordination. As an offshoot, various safety
trainings in coordination with DOLE are now being
provided by Petron to its contractors.
Alongside workplace safety, we take care of our
employees and their dependents by providing the
best possible health care available through periodic
physical examinations, medical consultations, as
well as immunization programs. Our collective
bargaining agreements include provisions on family
planning and dangerous drugs, as well as the
provision of safety clothing and equipment, and
medical consultations and examinations. We also
provide regular education on serious illnesses and
emerging health issues through counseling and
medical bulletins.
We extend this advocacy to our communities by
assisting barangays in awareness and prevention
programs on dengue and other illnesses. Our
Community Health Center in the Pandacan Terminal
provides free consultation and other health services.
Our commitment to safety serves to make our
operations more efficient and flexible and fortifies
our leadership in the industry. Says Petron Supply
and Operations Vice President Rowena O. Cortez:
“Ultimately, not only does having a safety culture
add to our bottomline, but it also gives us a
competitive advantage and allows us to gain the
trust of motorists and residents of communities
which we are part of.”
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Petron Corporation
SPOTLIGHT
Breaking the
Cycle of Poverty
through Tulong
Aral ng Petron
We regularly bring our college scholars to have a dialogue with our Management. This is an opportunity
for scholars to feel the continued support of Petron.
In 2012, Petron Foundation entered Phase Three of the
Roadmap for Poverty Alleviation through Education
and Employment by launching the Tulong Aral ng
Petron College Scholarship Program. Twenty-four (24)
graduates of the high school scholarship were selected
after undergoing a rigorous screening process to
form the first batch of college scholars. The program
demonstrates how Petron’s educational investment
ultimately contributes to the Company’s further growth
in terms of an assured supply of skilled employees.
These scholars -- studying a wide array of business
related courses such as Engineering, Accountancy and
Psychology -- are envisioned to one day be part of the
Petron organization.
Edelyn Adriano recalls the day when she was called
as one of Petron’s pioneer college scholars. “Sobrang
thankful and answered prayer talaga yung scholarship.
Mula nung nag-apply po ako, yun na lang po ang laging
nasa isip ko. Tuwang tuwa po ako at nakapagpapatuloy
ako ng pag-aaral, at sa magandang paaralan pa. Dahan
dahang natutupad ang aking pangarap” (I’m very
thankful for this scholarship; it’s an answered prayer.
It was all I could ever think of since applying for it. I’m
very happy that I am able to continue my education,
and in a good university no less. My dreams are slowly
being fulfilled.)
Edelyn is studying BS Accountancy at the National
University. She and her fellow scholars enjoy full
tuition and miscellaneous school fees, book, and living
allowances. They are also given special workshops
to further improve themselves. For Year One, they
underwent an English Proficiency course, organized by
Petron Foundation and conducted by a University of
the Philippines professor.
Edelyn has steadily proved herself worthy of the college
scholarship by consistently garnering high marks
during her freshman year. She was regularly honored
in her university and was frequently awarded with a
university scholarship alongside the Petron scholarship.
“Pinagbubutihan ko po talaga ang aking pag- aral para
makapag “give back” sa Petron sa lahat ng nagawa nila
para sakin.” (I make sure that I always do my best in my
studies in order to give back to Petron everything they
have done for me.)
For our scholars, giving back is a common theme.
Danica Ramirez of the University of Perpetual Help
has been an active Petron volunteer, helping facilitate
leadership workshops for Tulong Aral high school
scholars, assisting in the Christmas celebration for
elementary scholars, and helping build houses. “Excited
po ako tuwing may volunteering activities dahil mula
bata ako, nakikita ko na nagvo-volunteer ang mga
Petron employees para sa aming mga scholars.
Ngayong may pagkakataon kami, nais ko maging
instrumento para makapagbigay naman ng pag-asa at
kalakasan sa mga tulad kong kapus-palad kagaya ng
pagtulong sa akin ng Petron.” (I am always excited when
there are volunteering opportunities [in Petron]. Since
I was younger, I saw how Petron employee volunteers
were there for us scholars. Now that we have volunteer
opportunities, I wish to become an instrument in giving
hope and strength to others like me the same way that
Petron has helped me.)
“Tulong Aral ng Petron has lived up to its promise,” says
Marilou G. Erni, Petron Foundation General Manager and
fondly regarded as the ‘mother’ of the program. “It has
almost come full circle for these children who we took
from the streets and sent to classrooms instead. The
hope that we have given them through our send-a-child
to school program will now truly be their passport to a
better future.”
TAP College Scholars take time off from their busy
academic schedule to serve as volunteers.
2012 Sustainability Report
SPOTLIGHT
From Relief to
Recovery, Resilience and
Self-Reliance: Petron’s
disaster management
program
Under our Sagip Alalay program, we are able to render swift and substantial assistance to families
severely affected by natural calamities.
In mid-December last year, the Category 5
Super Typhoon Pablo, slammed into Compostela
Valley and Davao Oriental in Mindanao, a region
unfamiliar with inclement weather. It leveled
everything in its path and left a trail of desperation
and hopelessness.
The company immediately mobilized our SAGIP
ALALAY program and through Petron Foundation
(PFI), implemented a one-month soup kitchen
in the most severely hit communities. The team,
complemented by volunteers from various San
Miguel Corporation companies, also organized
themselves and developed a plan to the
geographical and logistical challenges required of
the month-long relief operations.
The activity eventually benefitted 41 communities
in 12 municipalities through the following:
• 27,764 individuals served by the soup kitchens
• 15,000 individuals received relief goods
• 2,200 students from Compostela Central Elementary School gifted with school supplies
• 2,000 liters of fuel in support to the Philippine National Red Cross
• 950 individuals given medical attention during a 2-day medical outreach
Philippines, Inc. and Gawad Kalinga in the building
of houses in the cities of Cagayan de Oro,
Iligan, and Negros Oriental. Beyond providing
infrastructure for the displaced residents, we see
the opportunity to serve as a catalyst among our
partners in bringing together all their expertise
and resources towards creating an integrated
development leading to a self-reliant community.
Post-Sendong
Rehabilitation Program
(As of December 2012)
1,136 houses
LOCATION COMPLETED ONGOING
Cagayan
de Oro City
307
85
Iligan City
101
100
Negros
Oriental
–
32
Despite the geographical and logistical challenges,
SAGIP ALALAY proved to be successful, but it was
temporary. Thinking sustainably, we looked to help
Filipinos better prepare for calamities and reduce
their vulnerability.
In the aftermath of Typhoon Sendong which struck
Mindanao near Christmas 2011 and razed entire
villages and their population, we supported the
rehabilitation efforts of San Miguel Corporation
through a partnership with Habitat for Humanity
Petron is building 433 out of 1,136 houses committed
by San Miguel Corporation in the cities of Cagayan de
Oro (above) and Iligan for families displaced by
Typhoon Sendong.
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Petron Corporation
In 2012, we partnered with the Department of
Science and Technology for Project NOAH (National
Operational Assessment of Hazards) to help greatly
improve floods and hazards forecasting. Selected
Petron facilities nationwide will be installed with
automated weather systems. The service stations in
particular will also serve as local information centers
on weather bulletins and advisories for motorists.
With real-time access to accurate weather
information, Filipinos will be better prepared against
natural hazards and calamities.
Together with Corporate Network for Disaster
Response (CNDR), Petron is helping build
community resilience through the Noah’s Ark
Project. Adopting Barangay Nangka in Marikina
City, we provided a six-month training on risk
assessment, community preparedness, and
contingency planning, aided by table top exercises
and community drills. Barangay Nangka is
expected to publish in July 2013 a disaster risk
management manual to help this flood-prone
community attain zero casualties in
future calamities.
Sagip Alalay, the house building project,
Project NOAH, and the Noah’s Ark Project
embody Petron’s commitment to caring for our
communities through initiatives that ensure rapid
assistance, relief and recovery, disaster prevention,
and community resilience.
(above) Flyers and other educational materials will be
made available in service stations as part of providing
accurate and early weather warning/advisories
through Project NOAH. (right) Petron “adopted”
Barangay Nangka in Marikina City is better prepared
now to handle floods as part of their immersion in the
Noah’s Ark project.
2012 Sustainability Report
SPOTLIGHT
LAKBAY ALALAY:
Linking with
our Mobile
Communities
(above and below) The long-running Lakbay Alalay has since expanded from simply rendering
roadside assistance to helping Filipinos enjoy the journey of life through initiatives in tourism, health,
environmental, education, and entrepreneurship.
LAKBAY ALALAY has been synonymous to roadside
assistance among Filipino commuters for the last 26
years. The longest running public service program
of its kind by a corporation, Lakbay Alalay has
endeavored to evolve beyond its original mandate,
shaped by the thoughts, experiences, and concerns of
our mobile communities – our consumers – whose lives
are touched by Petron.
Says Marketing Assistant Vice President Mary
Ann M. Neri: “We expanded the scope of Lakbay
Alalay to make Petron more relevant in the lives of
customers, not only when they gas up, but in their
everyday endeavors.”
Through new and diverse Lakbay Alalay initiatives, we
extend the participation in social activities beyond the
company to include our consumers. Our campaigns
in 2012 provided the motoring public with avenues
to give back, participate, and help address social
advocacies: roadside assistance is an opportunity
to promote safety and
local tourism; gassing up
in our service stations
becomes a venue for
increasing awareness for
the environment, and a
motorist is able to have
a tree planted in his/
her name. LPG safety
checks are conducted
in households in Metro
Manila together with the
Bureau of Fire Protection.
Public utility drivers are
able to collect stamps for
minimum purchases and
exchange these for school
supplies to help them with
the cost of sending their
children to school.
The Anvil Award Hall of Famer VISION PETRON is
another avenue for us to promote social awareness.
Filipino students are encouraged to submit works
of art that promote Filipino culture, and caring for
the environment, among others. We then translate
their artworks into various paraphernalia that
further extends our vision to the general public.
Through our aggressive marketing campaigns,
we hope to actively and consistently relate to our
customers their participation in the fulfillment
of our vision. Ultimately, these initiatives seek
to position Petron’s sustainability agenda as an
opportunity for stronger partnerships with our
users and motorists.
Ms. Neri adds, “As we continue to grow our service
station network, our presence in communities
all over the country grows stronger. Herein lies
our responsibility and opportunity to enhance
customer service and deepen our relationship with
every Filipino.”
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Petron Corporation
In 2012, we
launched three print
advertisements
that further elevate
our campaign in
sustainability. By
fueling up in a
Petron station, our
consumers take part
in energizing the
economy, preserving
the environment,
and supporting the
education of our
children and youth.
2012 Sustainability Report
The Business Case for
Sustainable Dealership
An interview
with Mr. Archie
Gupalor, Vice
President,
National Sales
Division
How vital is the
National Sales
Division to the
sustainability agenda
of Petron?
Archie B. Gupalor
(ABG): The National
Sales Division is a key
element in Petron’s
sustainability agenda.
Because the service
station is the face of Petron in the market,
the dealership network, to a great extent,
links the business of Petron to society. We
see the service station as a crucial channel
for communicating the message that Petron
is a responsible oil company.
On the economic aspect in particular,
we generate revenues for the Company
by serving the fuel requirements of
our customers and business partners
nationwide, who in turn also contribute
to the economy of the country and the
local communities where they are based.
Stimulating the local economies of areas
where we build and operate our service
station through job creation and sourcing of
supplies, especially in rural areas, is part of
Sales’ social sustainability thrust. Promoting
environmental stewardship as we conduct
our business
in over 2,000
service stations
is equally
prioritized. In
fact, we have
been upgrading
our service
stations to
respond to all
three areas
of economic,
environment,
and social
responsibility
because we see
the National
Sales Division as
a key enabler of and contributor to Petron’s
sustainability thrust.
Why is a sustainable dealer network
important to Petron, especially given the
cutthroat competitiveness of the market
with its issues of oil price wars and oil
smuggling?
ABG: Petron continues to wield the
advantage of having the biggest network
of service stations that provide superior
quality products and services to our
motorists. Because concerns like oil price
smuggling and price wars persist, Petron
needs to maintain its advantages and
key differentiators against competition.
Sustainable dealership is aligned with this
goal. NSD develops a unique and valuable
position rooted in systems of activities
that are much more difficult to match by
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Petron Corporation
competition. This ensures the business
viability of our dealer partners.
Our size, quality products and services,
support our partners’ business viability, and
we further differentiate ourselves through
social responsibility and environmentfriendly operations. All activities and
interactions taking place at the service
station level should consistently manifest
this commitment.
efforts. For example, our Sustainable
Dealership Performance Index and the
Petron 16 Core Standards checklist identify
environmental and social sustainability
performance metrics. Through these
metrics, we show our dealers that it’s
not entirely about profit. If they conduct
their business in a way that harms the
environment or if they don’t participate in
Petron’s CSR programs, then something
is still lacking and
their dealership
performance score
gets affected. To us,
it’s simple: we want
to move forward with
partners who are on
the same page with us
in terms of our vision
and goals.
I believe that whether
there’s competition or none,
the sustainable dealership
program has to go on
stream. Why? Because this
is the future of
our business.
How does NSD ensure
that the service
stations remain
committed to the
triple bottom line of
profit, planet, and
people? How will you
be able to achieve the
goal of sustainable
dealership?
ABG: The National
Sales Division, in
coordination with Procurement, Corporate
Technical and Engineering Services Group,
and Petron Foundation is continuously
examining and assessing its existing
programs while planning initiatives
and targets geared towards sustainable
dealership to cover not only our dealers,
but all stakeholders in the dealership supply
chain. Why? Because a sustainable dealer
network ensures continuity and stability
for Petron’s service station business. The
programs and initiatives that we develop
and improve on are part of the Business
Plans of the concerned groups to ensure
proper accountability and implementation.
Specifically, we make sure that NSD’s Key
Performance Indices (KPIs) include strong
support for the Company’s sustainability
We do our best to
help our dealers.
Our microfilling station (MFS, or Bulilit) is a very
important component of sustainable
dealership. It has a very clear economic
and social sustainability thrust built into
its model. Bulilit stations help generate
economic activity especially in rural
areas, supporting development at the
grassroots level. We help the dealer
make the business sustainable so that it
will continue to offer Petron’s quality,
value-for-money products where they
are needed most, such as the countryside
where resources are limited. We’re
redefining business viability to encompass
responsibilities to the environment and
society. Thus, when we introduce more
sustainability programs, the dealers are
open. They know Petron will take care of
them.
2012 Sustainability Report
What are the major challenges to
sustainable dealership and how will NSD
address them?
ABG: The major challenge is to be able
to disseminate and cascade proper
information and guidelines so that these
programs will be implemented correctly. We
have an interlocking system of programs
for dealers that manifest business viability,
social responsibility, and environmental
consciousness. It is important to come up
with the correct KPIs because I have always
believed that what gets measured gets done.
Through constant dialogue, we help our
dealers understand that while adhering to
Petron’s environmental and social programs
may initially seem to require additional
effort and costs, sustainability as a way of
life eventually pays off. Station operations
become more efficient and dealers now
have more time for customers. Customers
start patronizing the service station more,
enhancing our dealers’ business viability
over the long run.
The Dealers’ Management Courses, the PCO
training sessions, the sales conventions—
these are venues that emphasize the need
for sustainable dealership. If we don’t talk
about it, measure it, or implement programs
that emphasize its importance and urgency,
most likely, the activity will be sidetracked.
Ultimately, we respond to challenges we
face in sustainable dealership by evolving.
We observe the guiding principles of our
group, and the first principle is the cycle
of continuous improvement. If there are
gaps or inconsistencies in manifesting these
environment-friendly activities and socially
responsive programs, we will improve on
them to make the programs grow stronger.
Do you feel that the market is ready for a
sustainable service station? What are you
doing to shape the market’?
ABG: Yes, I believe that the market is ready
for a responsible service station like the
Petron service station. In fact, I believe that
on the matter of educating the market,
we’re late. We may be ahead in terms of
our competitors and industry practices,
but I think the market has been ready for
a while. But you cannot measure readiness
if you do not test the waters, so it’s good
that we are testing these new ideas on
sustainable dealership. Now, how do we do
this—test new ideas—when confronted with
cutthroat competition and the market has
all these choices for gas stations? I believe
that whether there’s cutthroat competition
or none, the sustainable dealership program
has to go on stream. Why? Because this is
the future of our business.
Why do you say that it is the
future of Petron?
ABG: Businesses come and go. Only
companies with sustainable programs that
survive. Entry barriers for gas stations are
very low; gas stations open and you can
almost duplicate their system overnight.
When everybody is doing the same thing
in the market place , everything becomes
commoditized. We really have to choose an
activity that will differentiate us. Petron’s
way of doing business is hard to copy. It
takes money to invest in training, education,
communication, the design of the gas station,
the environmental management system.
We run an integrated system of sustainable
activities cannot be matched by competition.
It’s no longer just about the product offering
or the service or the price tag. Customers are
searching for something more.
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Petron Corporation
An example is Compostela Valley, after
Typhoon Pablo. For 30 days, all the Petron
service stations in the area were converted
to venues for relief operations and drop off
centers for donations. We did this because
we see our service station as a true member
of the community. Petron Foundation
was there to provide food and logistical
support for the victims. This is one concrete
manifestation or specific activity that shows
how social responsibility differentiates our
service stations.
Petron is the first oil company in the
Philippines to go green its supply
chain. Why is this necessary in Petron’s
sustainability agenda?
ABG: We see our service station network
as the link between our business and
society, whether they are motorists or the
VP for National Sales Archie B. Gupalor “rallies the
troops” during the national convention of Petron’s
entire sales force.
surrounding communities, I believe it falls
on our group to influence other groups in
our system. The dealers are our primary
stakeholders because they are the face of
the Company to the market, but in order to
have a sustainable dealership, we have to
engage other stakeholders that contribute
to the successful construction and operation
of a station. This includes the owners of
the properties that are occupied by the
stations, the contractors and suppliers
who are involved in the construction and
maintenance of the stations, the service
providers and haulers who ensure the
timely delivery of products to the stations,
the motorists who gas up at the stations,
among others.
How do you see Petron’s network of
service stations in the next five years?
ABG: The key role of a Petron station is to
provide the fuel requirements of motorists
in the community where it is located and
to contribute to the economy through
generation of employment opportunities
and increased economic activity in
the vicinity. Consistent with Petron’s
sustainability agenda, each service station
must also ensure the protection of the
environment and the safety, security, and
well being of the people in the area where it
is located. By 2018, we will have 5,000 gas
stations nationwide and we want all 5,000
stations aligned with this vision of Petron.
We also want the 5,000 service stations to
be the preferred stopover of motorists and
this, again, goes back to sustainability.
How can we realize this goal? Right
now, we must ensure that the more than
2,000 service stations are sustainable.
We educate all our dealers and impart to
them the aspects of economic, social and
environmental sustainability that influence
us. We are progressing towards having
2012 Sustainability Report
more service stations implementing EMS,
which are compliant to the core standards,
and are particular on the environmental
and social metrics of the performance card.
We look forward to the annual GreeneS/S
awards where we determine the service
stations which have shown compassion
towards their impact in the environment.
Everyone in Petron is active towards
this vision.
By sticking to this vision, we can ensure
that the other stations we will build are
quality service stations demonstrating
environmental and social responsibility.
It’s good that Petron is very aggressive
about this. Our business is here to stay and
we are determined to realize our vision of
sustainable dealership.
We see our service station
network as the link between
our business and society,
whether they are motorists
or the surrounding
communities... In order
to have a sustainable
dealership, we have to
engage other stakeholders
that contribute to the
successful construction and
operation of a station.
As we continue to further grow this network, we intend to make it the preferred stopover of motorists
and a reliable partner in the growth of our communities. The Petron service stations ­– the face of our
Company to the public – is the Philippines’ most extensive retail network.
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Petron Corporation
Greening the Supply Chain
Discussion of Management Approach
Since undertaking the challenge of integrating
sustainability into our operations in 2008,
we have strengthened our efforts to integrate
profitability with responsibility, fostering
equitable growth and environmental
accountability wherever we are.
As we continue our journey, we endeavor to
grow and integrate sustainability principles
throughout our supply chain. This starts
from our Bataan refinery, to our network
of depots and terminals, all the way to our
consumers through our service stations.
Only a sustainable supply chain structure
can fortify our goals of maintaining market
leadership over the long-term.
We have a Supply Chain Management
Committee that monitors and promotes
programs with the aim of improved customer
service, increased revenues, and reduced
costs. The Committee defines business
processes, formulates the guidelines and
procedures, and establishes key performance
indicators that are applicable to the
integrated Supply Chain Management Plan,
including greening of the supply chain.
Recently, the Supply Chain Management
Committee and the Sustainability Council
created a Sustainable Supply Chain Technical
Working Group, which undertakes a more
hands-on approach in developing the
Sustainable Supply Chain Roadmap and
establishing direct linkages between the
performance of our suppliers, contractors,
and dealers to our sustainability goals.
Roadmap Development: Initial Steps, Issues,
and Indicators
Petron is unique since it operates in an
ecosystem that includes a diverse group of
supply chain stakeholders, from large foreign
and local contractors to Philippine society’s
most basic units, the household and the
barangay. While the potential for inclusive
development is great, the challenge for
alignment is enormous. We seek to leverage on
our size and scale to extend the sustainability
agenda throughout our sphere of influence.
To develop the Sustainable Supply Chain
Roadmap, we identified all aspects of the
entire business process which we disclosed
in the 2011 Sustainability Report.We mapped
the risks and opportunities available to
our primary and secondary distribution
network—consisting of third-party suppliers
and contractors of marine vessels and tank
trucks—crucial to the end goal of ensuring
a safe and on-time delivery of products and
services at a reasonable cost to end users.
SUSTAINABLE DEALERSHIP
A focus on the triple bottom line of the
service stations
To further build the baseline information in
the 2011 report, our Sustainability Council
identified sustainable dealership as the initial
phase in the development of the Sustainable
Supply Chain Roadmap.
2012 Sustainability Report
In 2012, as recommended by the 2011
External Review Committee, we introduced
sustainability principles to assess the
performance of our dealers and our primary
and secondary distribution suppliers. A
Sustainable Dealership Issue Analysis was
also conducted on the various service station
processes—from ordering and product delivery
and storage to sales and after-sales support.
Process owners per stage were identified along
with potential economic, environmental, and
social issues as well as existing initiatives.
The table below shows the results of a survey
among service station dealers indicating their
top priorities on each of the three bottom lines:
The following section of our report
captures briefly the major initiatives
that support the Sustainable Supply
Chain Roadmap under these priority
aspects. In each of the initiatives,
Petron sought to embed triple bottom
line goals and objectives so that
they help protect market leadership,
enhance the business performance
of Petron and its partners, provide a
competitive advantage because of bestin-class products and services, promote
environmental stewardship and social
responsibility, and ensure the health
and safety of stakeholders.
SUMMARY OF DEALER PRIORITY AREAS
ECONOMIC
ENVIRONMENTAL
Economic Performance
Market Presence
Indirect Economic Impacts
Products and Services
Emissions, Effluents, and Wastes
Energy
SOCIAL
Labor
Human Rights
Occupational Health
and Safety
Education and Training
Non-discrimination
Freedom of Association and
Collective Bargaining
Society
Product Responsibility
Community
Compliance
Customer Health and Safety
Marketing Communications
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Petron Corporation
SUSTAINABLE
DEALERSHIP PROCESS
Empowering the People in
Service Stations
Dealer Management Courses
Petron has a holistic program for training
dealers, service station supervisors, and
service masters as a way to keep ahead of
competition. Going beyond the basics, our
Dealer Management Course, Micro Filling
Station (MFS) Dealer’s Course, and Service
Masters Training Course provide the knowhow to ensure the success of the business.
In 2012, 197 new dealers and servicestation supervisors attended 20 days
of training. There were 11 five-day MFS
Dealer’s Courses conducted for 240 Bulilit
Station dealers and 37 three-day Service
Masters Training Courses to 820 service
masters. Regular follow-up programs using
training videos for our service masters,
who are our frontliners, guide them in
achieving service excellence.
We also have the biannual Petron Dealers’
Association (PETDA) National Sales
Activities such as the Dealers Management Training and Pollution Control Officers training provide
our service station owners, dealers, and personnel with the knowledge, skills, and mindset to practice
sustainable dealership.
2012 Sustainability Report
Convention which is a venue to further
enhance the knowledge and skills of
our dealers.
Contractor Safety Management
We make sure to observe the Contractor
Safety Management (CSM) Program in all
our facilities. The CSM outlines guidelines
on health and safety requirements that
all contractors and their subcontractors
must adhere to before and during all work
activities in our sites.
Integrated in the Petron Safety Performance
program—which covers standards on the
health and safety of employees, customers,
suppliers, contractors, and the general
public—the CSM is our commitment to
ensure that contractors work safely at all
times. It accredits safety practitioners and
officers among them, conducts orientations
on behavior-based safety, and promotes
continuous improvement through regular
performance monitoring. Our CSM is
aligned with the contractor’s obligations
under the Occupational Safety and Health
Standard of the Philippines (OSHS) and
assists them in complying with government
regulations and in adopting standard
operating procedures.
Pollution Control Officers Training
Service stations are required to have their
own Pollution Control Officers (PCO). We
conduct our own PCO Training Course
for dealers based on the Department
of Environment and Natural Resources
- Environmental Management Bureau’s
(DENR–EMB) Basic Pollution Course.
Accredited by the DENR Central Office, our
PCO Training Course meets the 40-hour
PCO training requirement of the EMB prior
to accreditation.
In 2012, a total of seven (7) three-day PCO
Training Courses were offered to 232
participants. Since the program began in
2010, there have been a total of 21 batches
and 904 Petron Service Station dealers,
personnel, and contractors trained under
our DENR–EMB accredited Basic Pollution
Control program.
Environmental Management System and
Environmental Management Plan
Environmental protection is integral
to our business. We see to it that
our service stations comply with our
Environmental Management Plan (EMP).
Petron’s EMP seeks to address all the
environmental impact and permitting
requirements of the service stations. At
the core of the plan are guidelines that
adhere to environmental laws. These
provide the framework for the different
environmental programs implemented at
our service stations. Through the EMP,
our service stations can work towards
the globally-recognized Environmental
Management System (EMS) certification
with assistance from Petron’s CTESGEnvironment and Retail Network
Engineering and Maintenance Groups as
well as Area Sales Executives. At present,
there are 12 stations which are EMS
compliant. Last year, 20 service stations
underwent EMS training.
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Petron Corporation
Ensuring the success of the program’s
goals of tank truck safety, product
security, and delivery reliability are thirdparty personnel consisting of about
1,000 drivers.
Road Transport Program for Drivers
Between our service stations and depots is
a nationwide road network that we seek to
protect from oil spills and other possible
hazards through a major tank truck
modernization program.
A Driver’s
Handbook was
published for our
tank truck drivers
to guide them
in handling the
products.
Petron makes sure that they are physically,
mentally, and professionally fit to support
the goal of meeting customer’s needs in
terms of product transport and delivery.
Our drivers undergo a service excellence
program, together with haulers, to learn
about the parameters of world-class
service. At the end of 2012, a total of
794 meetings on safe tank truck delivery
procedure and delivery route assessment
safety were conducted. Drivers also have
an annual physical examination, random
drug testing, and neuropsychiatric tests.
We strictly regulate drivers’ hours on
the road and provide them with clean
and decent quarters at the depots and
terminals where they could rest.
2012 Sustainability Report
Customer Satisfaction Surveys
Throughout the year, we conduct market
research studies that identify our strengths
as well as areas for improvement, engaging
customers from all economic and social
backgrounds, from rural areas to urban
centers nationwide. Various mechanisms
are in place to assess customer satisfaction.
Internal and external customer feedback
studies profile the users of Petron products,
specifically their perception, usage, habits,
and satisfaction levels among others.
Results of these year-round surveys are
integrated into our Marketing programs so
that the Petron brand remains top of mind.
Upholding Sound Business Processes
and Systems
We adopt best practices and harness
compliance tools and systems to ensure
superior performance amid a complex
business environment. Documentation,
automation, and standardization of quality
processes, behaviors, and systems ensure
quality results while still acknowledging
the uniqueness that differentiate Petron’s
performance, products and services from
our competitors.
Procurement Improvement Program
We have an ongoing Procurement
Improvement Program to enhance
efficiencies that maintain competitive
advantage and promote savings.
Streamlining the process, the program
underwent a study that sought to identify
opportunities for improvement, establish
a strategic sourcing program, and allow
Petron to benchmark against world-class
standards and industry best practices
in procurement.
The Procurement Improvement Program
is seen to benefit vendors, contractors,
and service providers. Phase 1 seeks to
integrate strategic procurement closer with
the business units. This fosters improved
transparency in the supplier selection
process, focuses more “spend” with the
best suppliers, and creates opportunities
for partnerships between the business
unit and the suppliers. Phase 2 focuses
on optimizing existing IT infrastructure
and investment to facilitate the work of
the strategic procurement organization
by activating the eProcurement facility
for both materials and services. We will
have a Vendor Portal that serves as a
centralized, web-based repository of
information on vendors that accepts
accreditation application. By addressing
the time-consuming, labor-intensive
manual filing and updating of vendors’
business documents, the portal fosters
greater transparency and efficiency
when selecting vendors, evaluating their
offers, and receiving Purchase Orders,
while eliminating the use of paper and
ink among other resources. Phase 3
rationalizes procurement resources
towards strategic sourcing, allowing for
alliances with vendors of critical and
strategic items. The Vendor Portal is also
envisioned to facilitate the regular or
annual performance review or appraisal
of vendors.
Our accreditation process also looks at the
triple bottom line of the vendors. In terms
of economic sustainability, we look at the
suppliers’ financial condition, investments,
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Petron Corporation
profile of technical personnel, technology,
systems, and plant or site of operation to
evaluate how they can support our shortterm and long-term projects.
In terms of environmental sustainability,
vendors who manufacture and supply
chemicals, and contractors who are engaged
in a project with environmental impact, are
required to submit applicable environmental
licenses such as DENR permits, required
environmental compliance certificates (ECC),
or other environmental licenses before
delivery of materials or services. Plant visits
also give insights on how safety practices
are being implemented, and validate if these
green and safety requirements are actually
observed. Lined up for implementation
is a rating for vendors who use materials
and other resources that conform to
green standards. We will soon require
relevant suppliers to have programs on
the management, reduction, and proper
disposal of waste materials, contaminated
materials, industrial chemicals, hazardous
waste, and scraps.
In terms of social sustainability, contractor
applicants are required to submit mandatory
legal documents that show that the vendor
observes and protects the right of workers
to just compensation and benefits. There
are safety requirements that need to be
complied with, depending on the nature
or risk involved, such as company safety
management systems, Occupational Safety
& Health Standards (OSHS) registration
certified by DOLE, and OSHS certificate of its
Safety Officer or consultants to show that
the vendor safeguards its worker’s social
and economic well-being as well as physical
safety and health. The contractor should
also enroll in DOLE’s Kapatiran WISE-TAV
Program, whether as big brother to small
scale vendor or as a contractor that engages
the services of workers in the locality.
Product Delivery System Improvements
Our Road Transport Program has a Haulers
Management System that documents
all established hauling operating
policies, procedures, and initiatives to
ensure that haulers comply with all the
business requirements that support the
Company’s objectives. The Road Transport
Group continue to implement its fleet
modernization program to improve
transport efficiency and reduce air
emissions. For 2012, it fielded 24 brand new
tank trucks and replaced 54 old tank trucks,
bringing the total to 60 brand new trucks
and 182 accelerated second-hand tank-truck
replacements. This resulted to a reduction
of 280 tons of CO2e Greenhouse Gas.
Furthermore, the supply and operations
group also implemented the InventoryDriven Delivery System (IDDS) in 363
Petron service stations, which resulted in a
reduction of 30 tons of CO2e Greenhouse
Gas. The IDDS is a more efficient delivery
system, since tank truck trips are planned
in advance. Delivery is based on the
daily inventory provided by the service
station dealers instead of the usual
practice of planning the delivery based
on orders placed by the dealers. In terms
of its implementation of its In-Vehicle
Management System, 255 trucks out of
the total 700 contracted fleet have been
installed with a Global Positioning
System (GPS).
Petron 16 Core Standards Checklist
To secure Petron’s leadership in Reseller
Trade, Petron makes sure to foster the
culture of sustainability through a cycle
of continuous improvement. Our service
stations are regularly subjected to Petron’s
16 Core Standards Checklist on top of
the Sustainable Dealership Performance
Index or the Dealer Performance Card.
2012 Sustainability Report
Conducted by the Area Sales Executive,
the 16 Core Standards Checklist identifies
the standards that dealers must pass and
surpass, from the maintenance of the
driveway and yard, to customer-centric
practices so that customers will enjoy a
positive experience.
Sustainable Dealership Performance Index
and Dealer Performance Card
In 2012, Petron developed the Sustainable
Dealership Performance Index (SDPI) to
integrate our environmental and social
sustainability metrics into the performance
evaluation of our service station dealers. We
also embarked on a target-setting initiative
for the economic, environmental, and social
performance of our service stations over the
next two years.
Guided by Firm Corporate Governance
Good corporate governance is the foundation
of our leadership position. We see
procurement’s central role in encouraging
the adoption of good governance principles
among the suppliers, communicating and
cascading ethical practices throughout the
supply chain, and increasing the compliance
with these principles. Thus, we created
a governance group that looks into the
development, updating, and consistent
application of procurement-related policies
and procedures.
At present, our procurement manual
and procedures are being reviewed and
updated to reflect guidelines on working
conditions, business standards and
ethics, business integrity, occupational
health and safety, environment,
workplace harassment, conflict of interest
and commercial bribery, company
confidentiality, dangerous drugs, and
dealing with government intermediaries.
We understand that the business conduct
of our suppliers and contractors reflects
on the Company’s honesty, integrity, and
impartiality, and affect its reputation.
Our memorandum of agreement and/
or general terms and conditions for
services and construction stipulates the
company’s and vendor’s commitment
to provisions on good governance, antiworkplace harassment, prevention of
child labor, and freedom of association.
Vendors, whether contractor or supplier,
are expected to commit to use their
resources judiciously in its production,
maintenance, and facilities processes,
to maintain a safe and healthy working
environment, and to ensure the proper
disposal of wastes. They are also expected
to comply with all regulations regarding
the preservation of the environment and
the territory where they operate.
These agreements also outline the highest
possible standards of ethical and business
conduct required of each and every
vendor, their employees, officers, agents,
and subcontractors in the performance
of their duties and responsibilities. We
expect all vendors and their employees,
officers, agents, and subcontractors to be
guided by our vision and mission which
highlight professionalism, integrity,
fairness, commitment to excellence,
and care of the environment as their
core values.
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Petron Corporation
SPOTLIGHT
Petron Dealer Puts
a Premium on
Sustainability
Far-flung and off the beaten path, Flor Navarra’s micro-filling station has a huge responsibility to fuel
the economy of the entire municipality and serve its community.
A small town with a population of 25,575,
Babatngon is a quiet, third-class municipality
in Leyte Province that thrives on agriculture,
aquaculture, tourism, and basic industrial and
commercial services. Here, one hears not the
orchestra of car horns and crowds but the distant
crash of waves, and a great majority of the
motoring public that Flor Roble Navarra’s Petron
service station serves, which includes fishermen in
their motorized bancas out at sea for their catch.
Flor owns a bulilit station, 33 kilometers away
from the next station in Tacloban City. According
to her, “Our service station is the first and only
one here and it was established to answer the
needs of Babatngon and its neighbouring towns.”
Before her station opened, people had to go
all the way to Tacloban City to fuel up their
fishing boats, commuter vehicles, or their small
enterprises. With no regular and reliable access to
quality fuel products, consumers are forced to use
products of suspicious quality, in containers that
compromise the safety of both seller and buyer.
Flor enjoys the advantage of being the only
gas station in town, capturing a large market
share, but welcomes competition. Speaking with
confidence, she says, “Competition can actually
help. It builds awareness; it’s how we learn what
works and, more importantly, what does not.”
For Flor, people development is key to her
business’ success. Thus, she trains her employees
to develop the necessary skills in managing the
business. She welcomes their ideas on how to
improve operations and services, so that they
have a sense of ownership of the business and
understand that they are part of its future growth.
Along the way, she hopes for them to gain pride
as Petron service station personnel.
Flor understands the need of spreading the
gospel of sustainability and explains why she
feels it is important. “Sustainability makes sure
that we have and will continue to have the water,
materials, and resources to protect our health
and our environment.”
As the station’s Pollution Control Officer (PCO),
Flor personally supervises the implementation
of environmental standards. “I explain to my
employees why and how should we protect our
environment. Environment protection is important
because the earth, is our only home. It is where we
live, breathe, eat, and raise our children. Without it,
we would never even be alive.”
Flor is also active in the community. The Petron
service station supports the various activities
of the town that help build camaraderie, such
as through the sponsorships of sports fest
and youth development trainings. She is also a
volunteer catechist.
With sustainable dealership as a focus of the
Company, Flor looks forward to a strong, enduring
business with Petron as her partner. “Petron is
known for its trustworthiness, credibility, quality
and social responsibility. To be their partner is
definitely an honor.”
2012 Sustainability Report
View Forward
Five years into our sustainability journey, we are
reaping the gains of anchoring our business goals
on the triple bottomline performance. Thinking and
acting sustainably has led us to confidently steer
the company through the continued uncertainties
of the business environment and more importantly,
enable the Company to be a catalyst of inclusive
growth for our communities and for environmental
protection. At the same time, we remain cognizant
that our continued success relies on strengthening
the links between our business and society.
Central to our efforts in achieving this is
to ensure that every aspect of our supply
chain observes sustainability as way of
life, and adopts the same commitment
to the standards of excellence that we
have. We already made substantial gains
in fostering this culture of excellence
among many of our dealers and business
partners. We intend to see this practice
spread out and ultimately, be embraced
by all of our supply chain partners. We
will continually align their operations with
our standards and values as we increase
our engagement with them, especially in
the social and environmental fronts. This
includes institutionalizing the sustainability
training of dealers to ensure that the quality
standards of Petron and the best practices
are articulated, inculcated, and shared. At
the completion of our Sustainable Supply
Chain Roadmap, we will be able to integrate
the many facets of our sustainability
practices into one coherent system.
At the same time, we need to affirm the
connectedness of our business with our
communities, both permanent and mobile.
While we have been generally successful
in our CSR initiatives, we shall strengthen
our support for our communities to
achieve self-reliance and inclusionary
growth. These next steps, along with
other relevant recommendations of our
External Review Committee, will help
enhance our practices and further our
sustainability journey. We look forward
to the continued improvement of our
efforts within Petron and in partnership
with everyone in our supply chain to
ensure the growth and development of
our company, our customers, and our
communities.
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Petron Corporation
Petron Sustainability
Council 2013
Champion:
Lubin B. Nepomuceno, President
STEERING COMMITTEE
Chairman:
Emmanuel E. Eraña, Senior Vice President and Chief Finance Officer
Vice-Chairs:
Efren P. Gabrillo, Vice President, Controllers (economic)
Edith G. Cabrera, Environment Manager, Corporate Technical
and Engineering Services Group (CTESG) (environmental)
Ma. Rosario D. Vergel de Dios, Assistant Vice President, Human Resources (social)
Marilou G. Erni, General Manager, Petron Foundation (social)
MEMBERS Archie B. Gupalor, Vice President, National Sales
Rowena O. Cortez, Vice President, Supply and Operations
Susan Y. Yu, Vice President, Procurement
Freddie P. Yumang, Vice President, Bataan Refinery
Rodulfo L. Tablante, Head , Corporate Technical and Engineering Services Group (CTESG)
Jose Joel Angelo C. Cruz, Vice President, General Counsel and Corporate Secretary
Julieta L. Ventigan, Assistant Vice President, Business Planning
Andrew S. Fortuno, Assistant Vice President, Operations
Nathaniel R. Orillos, Assistant Vice President, Refinery
Mary Ann M. Neri, Assistant Vice President, Marketing
Charmaine V. Canillas, Head, Corporate Affairs
Odon G. Galido, Jr., Head, Research and Development, CTESG
Lucio C. Batugal, Manager, Business Systems Support
Muriel Q. Surbano, Manager, Human Resources
TECHNICAL WORKING GROUP (TWG)
Bataan Refinery Susana M. Lalo, Safety, Health, Environment & Facilities Manager
Ariz C. Lorenzana, Environment Section Energy Engineer
Business Planning
Ma. Jocelyn L. Agustin, Project Manager
Corporate Affairs Rafael R. Ledesma, Strategic Communications Manager
Lionel D. Lopez-Dee, Internal Communications Officer
Business Systems Support
Noel C. Gutilban, Application Development Specialist
Andro-Mikael B. Ainza, Application Support Associate
Supply and Operations
Joel V. Escandor, Supply and Operations Planning Department Manager
Bryan A. Gapas, Strategic Supply Chain Development Coordinator
Rene C. Reyes, Health, Safety, and Environment (HSE) Coordinator
Manuel S. Balce, Operations HSE Engineer
Corporate Technical and Engineering Services Group (CTESG) Edwin G. Francisco, CTESG Safety Manager
Emer M. Tera, CTESG Safety Specialist
Gerard James L. Alan, CTESG Environment Engineer
Cristina C. Banogon, QC Supervisor, Technical Quality Control
Patricia Vanessa S. dela Vega, HSE Engineer
Legal Division
Atty. Liam S. Pagdanganan, Legal Counsel
Finance and Subsidiaries Michael L. Ordinanza, Finance Planning Officer
Melissa M. Nuguid, Transaction Management Supervisor
Human Resources (HR) Ma. Angela K. Valenzuela, HR Manager, Talent Acquisition and Development
Marketing Ramon M. Cruz, Brand Marketing Group Head
National Sales Division Jose Facundo D. Palafox, Selling Systems, Training and Development Manager
Jose Miguel O. Torres, Business Center Coordinator
Procurement
Ana Maria C. Mendoza, Procurement Manager
Petron Foundation Ronald Allan S. Victorino, Program Officer
Raquel L. Cedeño, Program Officer
Margarita Victoria C. Caballa, Project Assistant
Sherly P. Viñas, Project Assistant
2012 Sustainability Report
Independent Assurance Report
on the 2012 Sustainability
Report of Petron Corporation
Members of the 2012 External
Review Committee
WINSTON CONRAD B.
PADOJINOG, Ph.D.
Chairman, ERC 2012
Dean, School of Management,
University of Asia and the
Pacific
NANETTE DUNGO, Ph.D.
Professor and former
Chairperson, Sociology
Department, University of the
Philippines in Diliman
GRACE F. FAVILA
Adviser to the Board, Philippine
Business for the Environment
Vice President, Philippine
Pollution Prevention
Roundtable
COLIN LeGARDE HUBO
GRI Elected Stakeholder
Council Member, 2007-2012
Vice-Director, Center for Social
Responsibility, University of
Asia and the Pacific
CHARLIE VILLASENOR
President & CEO, TransProcure
Corporation
General Disclosures
Petron is now on its fourth year of annually
disclosing its sustainability report. Beginning 2010,
Petron has submitted its sustainability reports
to independent scrutiny by tapping independent
experts to assure the report’s quality and content
using the framework of the Global Reporting
Initiative (GRI).
Once again, Petron is subjecting its 2012 Report
entitled “Linking Business with Society” to
independent assessment. Petron invited a team
of five experts from the fields of economics,
environment, social and labor and, for the first time
- the supply chain – to comprise its External Review
Committee (ERC) and assess the Report. To ensure
continuity, four of the five have been members of
Petron’s ERC - two (2) since 2009 and the other
two (2) since 2010. The presence of a supply chain
expert reflects Petron’s focus on scaling up the
overall sustainability efforts and program along its
supply chain.
As in the last four years, Petron commissioned the
Center for Social Responsibility of the University
of Asia and the Pacific (CSR-UA&P) to provide the
administrative and logistical support needed by the
review process. Petron shouldered the expenses
of the site visits. Likewise, the ERC and CSRUA&P received honorarium for their professional
services. In the course of assurance, Petron
pre-selected the facilities and the people to be
interviewed by the ERC.
The foregoing Assurance Statement represents our
collective statement as ERC members. Our statement
does not reflect the views of CSR-UA&P nor does
it provide a guarantee to the accuracy of the data
and information presented in the Report, nor to the
principles and standards of practices of Petron. Our
review is limited by the scope defined in the Report.
Excluded from the Report are the subsidiaries and
affiliates of Petron, its foreign operations and the
other second level parties that Petron’s contractors
engage with on a regular basis.
We adopted the 2011 sustainability roadmap
as a framework in analyzing the Report and the
observations we gathered during the site visits
and interviews. In addition to the assessment of
the Report, we also provided Petron our individual
recommendations on how Petron can pursue its twin
objectives of profitable growth and sharing value to
all its stakeholders.
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Petron Corporation
Petron’s commitment to sustainability
No doubt that after four years of preparing
sustainability reports and subjecting it to global
standards and independent reviews, Petron has
attained a multi-stakeholder perspective and
appreciation of its operations. And this is mirrored
in the Report’s presentation of the indicators and
its analysis – meeting GRI’s disclosure standards
for report content (i.e., materiality, inclusiveness,
context, completeness) and quality (balance,
comparability, accuracy, timeliness, clarity and
reliability). As members of Petron’s ERC for over
four to five years, we have noticed how the plans
and operations of Petron is evolving into a more
integrated approach to meeting the company’s
sustainability agenda. Activities along Petron’s
value chain including those of the suppliers,
dealers, distributors and contractors – are getting
oriented and aligned to a sustainability roadmap.
Some of Petron’s sustainability initiatives and its
indicators are already beyond the indicators and
even standards that GRI would normally require (i.e.,
sustainability roadmaps for sales, distribution and
dealers, incentives given to reporting, etc.).
A sustainability roadmap to guide business
transformation
and dealers.” These standards particularly those
pertaining to environmental and labor standards
have been one of the most visible aspects of Petron’s
sustainability project in the recent years. Initiatives
to improve the supply chain’s sustainability program
like defining more clearly goals, strategy, timelines
and accountabilities are on going.
The forces that are reshaping Petron’s value chain
activities have also reached the communities along its
refinery and depot network. In fact, this network has
become the infrastructure that Petron uses to reach
out and “connect” to the permanent and the dealers’
mobile communities through its environmental care,
education, health, safety, livelihood and even disaster
relief programs.
Petron’s sustainability initiatives are bearing fruits
across its value chain. In addition to keeping
operational, financial and environmental risks
in check, the efficiency gains from sustainability
initiatives have led to concrete economic rewards in
terms of savings from lower water consumption, waste
treatment and air emission levels from the refinery,
savings from better inventory management for the
dealers and the depots. All these have strengthened
Petron’s business case for pursuing sustainability.
Our recommendations
The journey that Petron took towards business
sustainability has led to far reaching implications
on its business model and operations. The roadmap
has become a reference point both for goal setting
and performance evaluation for the different units
in and partners of Petron. The indicators captured
very well the unique aspects and performance
of the operations at each activity in the supply
chain. Moreover, the practice of regularly reporting
indicators and sustainability initiatives are
encouraged by regular performance reviews, rewards
and incentives.
Pursuit of this road map is gradually reshaping
Petron’s business model. By extending its compliance
standards beyond its operations and to its dealers,
vendors and suppliers, Petron’s value chain activities
are being aligned more and more towards its
sustainability agenda. This business model’s gradual
transformation through alignment is driven by forces
from within - for instance by strengthening business
relationships like competitive pricing, better services
and sustainability, obtaining IMS certifications at
the depots and refinery levels - and from without
- such as contract-driven dealer and subcontractor
standards of operational and environmental conduct
and performance, environmental and safety training
for contractors and sub-contractors like tank truck
drivers, security and utility personnel.
Much of the focus of Petron’s sustainability
initiatives has been to strengthen the “supply chain
standards as it relates to sub-contractors, depots
In terms of future reporting, we recommend that
Petron gradually expands the scope of its Reporting
and as a consequence its sustainability initiatives
to cover a wide network of dealers and suppliers,
distributors, subsidiaries and affiliates, new plants
and foreign operations. It follows that new initiatives
will have to be considered:
Sustainability code of conduct and supply chain
certification. Petron should consider formulating and
adopting an acceptable common framework or code
of conduct that would allow Petron to monitor and
evaluate compliance of suppliers, dealers, affiliates
and subsidiaries to the company’s sustainability
initiative. Moving beyond the individual relationship,
Petron can also encourage its partners to adopt
certification systems related to supply chain. To
complement this effort, Petron can extend training
programs such as EMS to all interested dealers.
Reasonable Care and Contractual Transfer of
Liability. Petron can also consider focusing its
sustainability project at the suppliers and dealership
chains on the promotion of “Reasonable Care”. That
is, the sustainability project should contribute in the
reduction of business risks especially those related
to the “Contractual Transfer of Liability.” To mitigate
the risks from sub par performance of suppliers
and affiliates, the code of conduct must (a) ensure
that all suppliers and affiliates have established and
implemented effective programs that adequately
protect employees, the public and the environment;
(b) achieve minimum possible transfer of liability
2012 Sustainability Report
for a supplier/dealer’s actions;(c) avoid regulatory
penalties caused by a supplier/dealer’s violations
and related actions; and, (d) avoid negative
publicity associated with the poor supplier/dealer
safety performance.
Extending social principles. Petron may want to
consider integrating other human rights principles
(on top of human rights associated with labor) in its
agreements and contracts with partners, affiliates
and subsidiaries. From a business perspective,
enhancing support for human rights can provide
access to markets, customers and capital. To begin
with, Petron can explore resources related to the
“Global Business Initiative on Human Rights”, “Tools
on Voluntary Principles on Human Rights and
Security”, “Guide for Integrating Human Rights into
Business Management”, “Business and Human Rights
Resource Centre”.
Develop a more integrated community
development program. Petron must ensure societal
“connectedness” in the Company’s impacted
communities governed by the principles of selfreliance and inclusive growth. The mechanisms for
human capital development within the company
must cascade to the communities through programs
designed to improve the socio-economic conditions,
health and safety of community residents.
Program design must have specific targets that are
periodically monitored, and terminally evaluated
to determine the extent to which these targets
for inclusive growth are being achieved. Businesscommunity linkage is one among other essential
requirements that constitute a holistic approach to
sustainability at the community level.
Develop integrated sustainability roadmap indicators.
Petron may consider developing a few but highly
comprehensive sets of indicators that capture the
multi-stakeholder perspective of its sustainability
road map. By far, there are too many indicators to
monitor such that their inter-relationships will have
to be established. These comprehensive indicators
can be used both as a guide to articulate Petron’s
long term strategy and vision as well as to measure
the impact of process improvements at the different
levels of the business and the supply chain.
Compensate for emissions from the expansion
program. With the forthcoming completion and
commissioning of the refinery phase 2 and the
new power plant in Limay, Bataan, we expect a
surge in GHG emissions. We recommend that
Petron rationalize its current tree-planting efforts
and other environmental programs nationwide,
and together with its suppliers, dealers and
distributors, offset some if not all of the
anticipated GHG emissions as these new projects
come on stream.
Cascade business sustainability by cluster level,
multitier strategy. Despite the efforts, there is
still the call for a more in-depth understanding of
sustainability and its practices in the community
especially at the dealership, supplier and distributor
levels. From an operational perspective, it is
recommended that Petron should first focus
on urban clusters of dealers and suppliers for
cascading the sustainability project rather than
throughout the entire country. In the long-term,
Petron should be able to craft a multitier strategy
for cascading sustainability in its urban, rural and
Bulilit dealers. A multitier sustainability strategy is
important because of crucial variations in consumer
preferences and behavior, market share (e.g.
penetration rates are higher in urban centers than in
rural areas), among others.
In Closing
We see Petron defining its success in terms of
generating and sharing value to a broader spectrum
of stakeholders. Pursuing a sustainable business
agenda that involves the rest of the business model
is integral to Petron’s goal to grow, remain profitable
and at the same time to be relevant to society. We
congratulate Petron for its continuing commitment
towards business sustainability and encourage them
to connect even more their business to society.
The Center for Social Responsibility at the University of Asia and the Pacific (CSR-UA&P) was commissioned by Petron
to host the 2012 External Review Committee. Our terms of engagement were limited to facilitating the administrative
and logistical requirements of the ERC and were not part or responsible for preparing the assurance statement nor
have effective control over the data and information disclosed. Thus, CSR-UA&P assumes no responsibility over the
statement and shall not be liable to any person or organization for any loss, damage or expense caused by reliance on
the information or advice in this document.
81
82
Petron Corporation
Global Reporting Initiative Index
GRI INDICATOR AND DESCRIPTION
1.
Strategy and Analysis
1.1
Statement from the most senior decision maker(s) of the organization
1.2
Description of the main impacts, risks and opportunities
2.
Reference / Page
Number
2-5
9-10
Organizational Profile
2.1
Name of the organization
6
2.2
Primary brands, products, and/or services
6
2.3
Operational structure and major divisions
6-7
2.4
Location of the company headquarters
6
2.5
Countries of operations
6
2.6
Nature of ownership and legal form
2.7
Markets served
6, 42-43, 55
2.8
Scale of the reporting organization
6, 19-21, 44
2.9
Significant changes during the reporting period
2.10
3.
Awards and recognitions received during the reporting period
6
7, 20
15
Report Parameters
3.1
Reporting period
16
3.2
Date of most recent previous report
16
3.3
Reporting cycle
16
3.4
Contact point for questions about the report and its contents
17
3.5
Process for defining report content
17
3.6
Boundary of the report
16
3.7
Limitations on the scope or boundary of the report
16
3.8
Basis for reporting on joint ventures, subsidiaries, and other related entities
17
3.9
Assessment methods for data and bases for estimates in data compilation
17
3.10
Explanation of the effect of any re-statements of information provided in previous
reports
17
3.11
Significant changes from previous reporting period
17
3.12
GRI Index Page
3.13
Current policy and practice dealing with external verification
4.
82-85
17
Governance, Commitments, and Engagement
4.1
Governance structure of the organization
7
4.2
Indicate if the Chair of the highest governance body is also an Executive Officer
7
4.3
Number of Independent and non-executive members
7
4.4
Mechanisms for shareholders and employees to provide recommendations
8
4.5
Association between the compensation of the members of top management, high
directors and the performance of the organization including environmental and social
performance
9
4.6
Procedures for avoiding conflict of interest in top management
9
4.7
Procedures for determining qualifications and experience of top management for guiding
the organization in economic, environmental, and social aspects
7-8
4.8
Statement concerning missions and values implemented internally, codes of conduct
and standards for economic, environmental, and social performance, and the status of
implementation
7-8
4.9
Procedures for top management to supervise the identification and management of the
organization’s economic, environmental, and social performance, including assessment
of risks and opportunities, as well as adherence to international level codes of conduct
and standards.
9
4.10
Process to assess the performance of top management, especially with respect to
economic, environmental, and social performance
8
4.11
Explanation of how the organization has adopted the precautionary principle
10
4.12
Externally developed economic, environmental, and social standards adopted or any
other related initiatives
11
4.13
Listing of groups of interest included by the organization
11
2012 Sustainability Report
4.14
List of stakeholders groups
11
4.15
Basis for identification and selection of stakeholders groups
11
4.16
Approaches used to include interest groups, including frequency of participation
according to the type of group of interest
11
4.17
Main concerns and topics raised by stakeholders and how the organizations has
responded to these concerns
11
GRI INDICATOR AND DESCRIPTION
Reference /
Page Number
ISO 26000
Core Issues Addressed
Economic Performance Indicators
Discussion of Management Approaches
18
EC 1
Economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other
community investments, retained earnings, and payments to capital
providers and governments.
19-21
6.8.7 Wealth and Income
Creation; 6.8.3 Community
Involvement
EC 3
Coverage of the organization’s defined benefit plan obligations.
21, 45
6.8.7 Wealth and Income
Creation
EC 5
Range of ratios of standard entry level wage compared to local
minimum wage at significant locations of operation.
44-45
6.4.4 Conditions of Work
and Social Protection
EC 8
Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or
pro bono engagement.
21-22
6.8.5 Employment Creation
and Skills Development;
6.8.9 Social Investment
Environment Performance Indicators
Discussion of Management Approaches
EN 1
Major Materials used by weight or volume.
EN 3
Direct energy consumption by primary energy source.
EN 4
Indirect energy consumption by primary source.
EN 5
Energy saved due to conservation and efficiency improvements.
EN 8
Total water withdrawal by source.
EN 9
Water sources significantly affected by withdrawal of water.
EN 10
Percentage and total volume of water recycled and reused.
24
26-27, 35
6.5.4 Sustainable
Resource Use
27, 35
6.5.4 Sustainable
Resource Use
27-28, 35
6.5.4 Sustainable
Resource Use
27, 35
6.5.4 Sustainable
Resource Use
28-29, 35
6.5.4 Sustainable
Resource Use
28-29
6.5.4 Sustainable
Resource Use
28-29, 35
6.5.4 Sustainable
Resource Use
33-34, 38-39
6.5.6 Protection of the
environment, biodiversity
and restoration of natural
habitats
EN 13
Habitats protected or restored.
EN 16
Total direct and indirect greenhouse gas emissions by weight.
29, 35
6.5.3 Prevention
of Pollution
EN 18
Initiatives to reduce greenhouse gas emissions and reductions
achieved.
29-30
6.5.3 Prevention
of Pollution
EN 20
NOx, SOx, and other significant air emissions by type and weight.
30, 35
6.5.3 Prevention
of Pollution
EN 21
Total water discharge by quality and destination.
28-29, 35
6.5.3 Prevention
of Pollution
EN 23
Total number and volume of significant spills.
26, 35
6.5.3 Prevention
of Pollution
EN 24
Weight of transported, imported, exported, or treated waste deemed
hazardous under the terms of the Basel Convention Annex I, II, III, and
VIII, and percentage of transported waste shipped internationally.
30-31, 35
6.5.3 Prevention
of Pollution
EN 26
Initiatives to mitigate environmental impacts of products and services,
and extent of impact mitigation.
31
6.5.6 Prevention
of Pollution
EN 28
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations.
26
6.5 The Environment
EN 29
Significant environmental impacts of transporting products and other
goods and materials used for the organization’s operations, and
transporting members of the workforce.
30
6.5.6 Prevention
of Pollution
EN 30
Total environmental protection expenditures and investments by type.
34-35
6.5 The Environment
83
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Petron Corporation
Social Performance Indicators
Discussion of Management Approaches
LA 1
Total workforce by employment type, employment contract, and
region.
LA 2
Total number and rate of employee turnover by age group, gender, and
region.
42-43, 47-48
44-45
6.4.3 Employment and
Employment Relationships
45
6.4.3 Employment and
Employment Relationships
LA 4
Percentage of employees covered by collective bargaining agreements.
46
6.3.8 Civil and Political
Rights; 6.3.10 Fundamental
Principles and Rights at
Work; 6.4.4 Conditions of
Work and Social Protection;
6.4.5 Social Dialogue
LA 6
Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on
occupational health and safety programs.
56
6.4.6 Health and Safety
at Work; 6.4.7 Human
Development and Training
in the Workplace
LA 7
Rates of injury, occupational diseases, lost days, and absenteeism, and
number of work-related fatalities by region.
56
6.4.6 Health and Safety at
Work
LA 8
Education, training, counseling, prevention, and risk-control programs
in place to assist workforce members, their families, or community
members regarding serious diseases.
57
6.4.6 Health and Safety at
Work; 6.8.8 Health
LA 9
Health and safety topics covered in formal agreements with trade
unions.
57
6.4.6 Health and Safety at
Work
LA 10
Average hours of training per year per employee by employee category.
44
6.4.7 Human Development
and Training in the
Workplace
LA 11
Programs for skills management and lifelong learning that support the
continued employability of employees and assist them in managing
career endings.
44
6.3.9 Economic, Social
and Cultural Rights; 6.4.7
Human Development and
Training in the Workplace;
6.8.5 Employment Creation
and Skills Development
LA 12
Percentage of employees receiving regular performance and career
development reviews.
45
6.4.7 Human Development
and Training in the
Workplace
LA 13
Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership,
and other indicators of diversity.
45
6.3.7 Discrimination
and Vulnerable Groups;
6.4.3 Employment and
Employment Relationships
LA 14
Ratio of basic salary of men to women by employee category.
45
6.3.7 Discrimination and
Vulnerable Groups
HR 4
Total number of incidents of discrimination and actions taken.
45
6.3.5 Avoidance of
Complicity; 6.3.7
Discrimination and
Vulnerable Groups; 6.3.10
Fundamental Principles
and Rights at Work;
6.4.3 Employment and
Employment Relationships
HR 5
Operations identified in which the right to exercise freedom of
association and collective bargaining may be at significant risk, and
actions taken to support these rights.
46
6.3.8 Civil and Political
Rights; 6.3.10 Fundamental
Principles and Rights at
Work
HR 6
Operations identified as having significant risk for incidents of child
labor, and measures taken to contribute to the elimination of child
labor.
46
6.3.4 Human Rights
Risk Situations; 6.3.7
Discrimination and
Vulnerable Groups; 6.3.10
Fundamental Principles
and Rights at Work
HR 7
Operations identified as having significant risk for incidents of forced
or compulsory labor, and measures to contribute to the elimination of
forced or compulsory labor.
46
6.3.10 Fundamental
Principles and Rights at
Work
2012 Sustainability Report
48-53, 58-60
6.3.9 Economic, Social
and Cultural Rights; 6.8.3
Community Involvement;
6.8.4 Education and
Culture; 6.8.5 Employment
Creation and Skills
Development; 6.8.7 Wealth
and Income Creation; 6.8.9
Social Investment
Percentage and total number of business units analyzed for risks
related to corruption
46
6.6.3 Anti-corruption
SO 3
Percentage of employees trained in organization’s anti-corruption
policies and procedures.
46
6.6.3 Anti-corruption
SO 4
Actions taken in response to incidents of corruption.
46
6.6.3 Anti-corruption
SO 5
Public policy positions and participation in public policy development
and lobbying.
11-12
6.6.4 Responsible Political
Involvement
SO 7
Total number of legal actions for anti-competitive behavior, anti-trust,
and monopoly practices and their outcomes.
12
6.6.5 Fair Competition
SO 8
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations.
12
6.6.5 Fair Competition
PR 1
Life cycle stages in which health and safety impacts of products and
services are assessed for improvement, and percentage of significant
products and services categories subject to such procedures.
54
6.7.4 Protecting
Consumers’ Health and
Safety; 6.7.5 Sustainable
Consumption; 6.7.9
Education and Awareness
SO 1
Nature, scope, and effectiveness of any programs and practices that
asses and manage the impacts of operations on communities, including
entering, operating, and exiting.
SO 2
PR 3
Type of product and service information required by procedures
and percentage of significant products and services subject to such
information requirements.
54
6.7.3 Fair marketing,
factual and unbiased
information and fair
contractual practices; 6.7.5
Sustainable Consumption;
6.7.9 Education and
Awareness
PR 5
Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction.
55
6.7.6 Consumer service
support and compliant
with dispute resolution
PR 6
Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising,
promotion, and sponsorship.
55
6.7.3 Fair marketing,
factual and unbiased
information and fair
contractual practices
PR 7
Total number of incidents of non-compliance with regulations and
voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes.
55
6.7.3 Fair marketing,
factual and unbiased
information and fair
contractual practices
PR 8
Total number of substantiated complaints regarding breaches of
customer privacy and losses of customer data.
55
6.7.7 Consumer data
protection and privacy
PR 9
Monetary value of significant fines for non-compliance with laws and
regulations concerning the provision and use of products and services.
55
6.7 Consumer Issues
OUTPUT
B
Report on all criteria
listed for Level C plus:
1.2
3.9, 3.13
4.5 - 4.13, 4.16 - 4.17
Management Approach
Disclosures for Each
Indicator Category
Report on a minimum of
20 Performance Indicators,
at least one from each of
Economic, Environmental,
Human rights, Labor,
Society, Product
Responsibility.
B+
A
A+
Same as requirement
for Level B
Management Approach
Disclosures for Each
Indicator Category
Report on each core G3
and Sector Supplement*
Indicator with due regard
to the Materiality Principle
by either: a) reporting
on the Indicator or b)
explaining the reason for
its omission.
Report Externally Assured
Report on a minimum
of 10 Performance
Indicators, including
at least one from each
of: Economic, Social
and Environment
C+
Report Externally Assured
G3 Performance
Indicators and
Sector Supplement
Performance
Indicators
OUTPUT
Not Required
G3 Management
Approach
Disclosures
OUTPUT
Standard Disclosures
Disclosures
C
Report on:
1.1
2.1 - 2.10
3.1 - 3.8, 3.10 - 3.12
4.1 - 4.4, 4.14 - 4.15
Report Externally Assured
Report
Application Level
85
86
Petron Corporation
Petron Corporation
SMC Head Office Complex
40 San Miguel Avenue
1550 Mandaluyong City
Telephone No.: 886-3888
Fax No.: 884-0983
www.petron.com
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