LIMITS AND BEST PRACTICES OF THE SUSTAINABILITY REPORTING OF AN ELECTRIC COMPANY IN THE PHILIPPINES USING GRI FRAMEWORK

Abstract

GRI framework is one of the generally used standards for sustainability reporting that became a fundamental requirement for most companies in the Philippines, including the electric utility sector. This paper aims to explore the limitations, drivers and best practices affecting the usage of GRI framework by an electric company (the “Electric Company”) in the Philippines in its sustainability reporting and adoption of sustainability KPIs. This research utilized qualitative approach which incorporated self-administered survey with open ended questions with relevant officers of the Electric Company and documentary analysis methodology using data sourced from sustainability reports of the Electric Company covering periods from 2019 until 2022 including other relevant public disclosures from its website. The data extracted were used to corroborate and support the output from the interview. The result explained the limitations encountered by the Electric Company in preparing its sustainability reporting following the GRI framework guidelines. Moreover, this study clarified that the sustainability reporting of the Electric Company was mostly influenced by the mandate of the government regulators and supported by its corporate governance goals to promote accountability and transparency. Lastly, this study suggested that the sustainability reporting of the Electric Company aimed to satisfy the information needed by its stakeholders and value creation expected by external users. Contextualizing the foregoing findings, this study has implications for regulators and researchers and contributes to the literature of sustainability reporting in the utility sector in the Philippines. It will increase pressure on other utility companies in the Philippines to assess the context-specific determinants of sustainability reporting.