Percentage refers to growth/ decline versus same period last year (SPLY)
We will continue to grow and invest in business to enable
shared success across our different stakeholders
As our core purpose states, JGS is committed to create long- term value and wealth for our stakeholders. In 2020, the company generated PHP222.9 billion in revenue and other investments.
Due to the coronavirus pandemic disrupting business operations and economic flows nationwide, JGS experienced a significant decline in revenue compared to the previous year. However, the topline performance of the food, banking, and office business segments tempered the year-on-year decline in airline, malls, hotels, and petrochemical revenues.
Despite the public health and economic crisis, JGS still fulfilled its financial obligations to employees, suppliers, capital providers, and the government. The company also made investments, donations, and contributions to communities affected by the pandemic. For 2020, we distributed PHP233.8 billion to stakeholders. This significantly reflects the livelihoods of local suppliers whom we have supported during the year overtaken by the pandemic situation.
Beyond the financial flows from our businesses to stakeholders, we contribute indirectly to the economy through our portfolio of accessible, relevant, and high-quality products and services that stimulate economic growth.
Project Salig is a program of URC SURE that started in 2019 with the aim to develop partnership with sugarcane planters in districts where URC sugar mills operate. “Salig” is a Visayan word for “trust”; hence, the program aims to create partnership based on trust. In order to gain the trust of planters and make URC sugar mills their “mill of choice”, the mill endeavors to address major areas of concern for the planters – sugar recovery (LKgTC) and farm yield (tons cane per hectare), turn-around of hauling trucks during the milling season and customer service provision.
To ensure a successful supply chain, JGS business units follow a strict Enterprise Accreditation Policy that makes sure the businesses transact with reputable and reliable suppliers who are compliant with applicable environmental, labor, health, and safety regulations.
To the extent possible, JGS promotes inclusivity by obtaining supply from farmers and cooperatives to support low-income communities. For URC’s snack and beverage items, the company is supplied by sugar cane farmers in Negros and Batangas and corn farmers in Ilocos Sur.
Internationally, URC sources from its local sites such as tea in Vietnam and potato in Australia.
In addition, JGS joined the Roundtable on Sustainable Palm Oil (RSPO) in December 2020, allowing the group to make contributions in the growth, use, and promotion of sustainable palm oil in the market.
At JGS, we consider local communities as valued stakeholders of our business as well as our partners in nation-building. Engagement efforts of the company aim to improve the quality of life of underdeveloped and underserved communities through programs on sustainable livelihood, financial literacy, education, nutrition, and community well-being.
In 2020, most of JGS’s community engagement efforts were focused on providing support and relief for the local communities heavily affected by the public health crisis. The Bike for Good program by URC supplied bikes and a negosyo package of Baker John products to 30 beneficiaries who lost their source of income due to the pandemic or the typhoons Rolly or Ulysses.
After the community quarantine, the Locally Sourced Weekend Fair at Robinsons Malls resumed operations to help create earning opportunities for local farmers, fisherfolks, and vendors. Relief aid by the SBUs prioritized the distribution of essential products, such as grocery items and school supplies for distance learning.
CEB also mounted sweeper flights for stranded individuals and free cargo operations for essential goods and relief services.
We will reduce and/or offset our carbon emissions and strengthen our climate-related risk management.
In 2020, JGS consumed 17,206,631 GJ of energy across all SBUs, a 56% decline from 39,011,696 GJ from previous year. In particular, CEB and RLC malls and hotels experienced a huge drop in energy consumption due to the nationwide lockdown and restricted air travel.
Beyond the effects of the coronavirus pandemic, we are working on promoting energy efficiency, and increasing the capacity of our renewable energy.
In 2020, CEB’s total fuel consumption decreased due to pandemic-related restrictions on air travel, but fewer passengers in each flight led to a decline in fuel efficiency, measured by kilometers traveled by a passenger per liter of fuel burned (pax-km/L). Fuel efficiency dropped by 15% from 28.96 pax km/L in 2019 to 25.10 pax-km/L in 2020.
Moving forward, the airline is committed to boost fuel efficiency and keep carbon emissions in check through modernization of CEB’s fleet with new-generation fuel- efficient aircraft (Airbus NEO series), digitization of fuel efficiency monitoring (SkyBreathe® Fuel Efficiency Management System), and application of the best operational practices in fuel efficiency.
In line with our vision of a low-carbon future, JGS business units take the initiative to pursue solar energy (RLC and URC) and biomass-fired power (URC).
To date, RLC operates 21 solar facilities that generate a maximum capacity of 32.157M kWh (32,157 MWh). Solar panels in three more RLC commercial centers are set to become fully operational in 2021.
URC’s biomass-fired power cogeneration plant SONEDCO generates 46 megawatts of power, while the recently installed one megawatt solar power rooftop plant in Canlubang, Laguna factory was designed to reduce approximately 900 metric tons of CO2 yearly.
In BCF Vietnam, we plan to install a 2.85-megawatt solar power system in the Coffee Plant that will cover an area of 14,000 sq.m and operate 3.5 hours daily on average. In addition, BCF Thailand will install a 5-megawatt solar power system on the roofs of their warehouses and plants to help reduce approximately 4,000 metric tons of CO2 yearly.
Individually, limited flight operations resulted in CEB’s total GHG emissions dropping 72% from last year, but a low number of passengers in each flight caused the GHG emissions intensity per passenger kilometer ratio to rise by nearly 53%.
At the head office, work from home arrangements and reduced manpower led to a 71% reduction in electricity consumption.
Alternatively, JGSPG marked an increase in overall energy consumption as the complex resumed operations after extended turnaround maintenance from Q4 2019.
As part of JGS’s agenda on climate action, CEB and JGSPG also spearhead the group’s initiatives on tree planting and forest rehabilitation and protection. Since 2013, 420,944 seedlings have been planted as part of these activities.
With climate change exposing our operations to potential risks like business interruptions, infrastructure losses, supply shortages, and other material hazards, we put systems in place to identify climate-related risks and to develop mitigation plans to address them.
Among JGS’s climate risk readiness measures is CEB’s real-time weather forecasting system that enables the airline to avoid flying in hazardous conditions. In 2020, this system led to 106 flights being diverted, delayed, or cancelled due to inclement weather, reducing the risk for more than 9,487 passengers.
Creating more value using fewer resources not only mitigates environmental impact, but also generates significant cost savings for JGS. In line with this, RLC seeks greater efficiency by reducing material intensity, which is the amount of materials needed to produce one square meter of space.
Digitization initiatives in RBank’s processes, products, and services helped save a total of 17,338 kg of paper resources in 2020, quadruple the amount of paper saved in 2019.
For JGSPG, initiatives undertaken towards maximization of target production rates and improved procedures to prevent unplanned shutdowns resulted in improved efficiency.
Total PE and PP capacity utilization in 2020 increased to 69% versus 63% in 2019. Overall PE and PP production totaled 389 kilotons (kT) in 2020, increasing by 12% from last year’s 349 kT.
Water management initiatives of the JGS business units include the use of rainwater collection systems (CEB, RLC) and wastewater treatment and recycling (CEB, RLC, JGSPG). Aside from groundwater wells, the businesses utilize alternative water sources such as seawater desalination (JGSPG).
Processes that utilized recycled water, eliminated water wastage, optimized water intensive cleaning activities, and reduced frequent changeovers resulted in significant improvements to JGS’s overall water usage.
In the wake of these measures, as well as decreased operations due to the pandemic, JGS’s total withdrawal dropped from 14,557,195 cubic meters in 2019 to 13,168,077 cubic meters in 2020. Of the water withdrawn by the SBUs, 8,947,163 cubic meters were discharged and returned to the water source, while 4,217,783 cubic meters were consumed and not returned.
In 2020, JGS and its subsidiaries generated a total of 165,017 tons of wastes. As trash collection and disposal remains an ongoing problem in the Philippines, we recognize the need to reduce, reuse, and recycle as well as practice proper waste disposal throughout our company.
For these purposes, the SBUs focused on the following initiatives:
As part of the company’s push for zero waste to landfill, URC also started waste profiling using Waste Analysis and Characterization Study (WACS). As of 2020, URC’s Branded Consumer Foods (BCFG) Philippines has already started the process of monitoring the group’s waste to landfill information.
Our portfolio will continue to drive innovative and accessible products and services that improve the quality of life, especially of the ordinary Filipino.
Guided by our purpose to provide customers with better choices, we recognize our responsibility to deliver safe, accessible, and high-quality goods and services to the public.
As consumers are more drawn to a health-conscious lifestyle, URC addresses the need to balance the taste and affordability of products with nutritional benefits. Embedded in URC’s commitment is to improve the nutrition and wellness profile of product portfolio aligned with the URC wellness criteria. URC’s 10 wellness criteria tackles areas of product renovation and development which includes the reduction of sugar, sodium, trans fat (TraFa), and partially hydrogenated oil (PHO) as well as the substitution of saturated fat (SaFa) and colors. As we continue to innovate our products, we monitor progress related to the percentage of products passing 1 to 10 wellness criteria. In 2020, more than 85% of URC products passed one wellness criteria; more than 65% passed two; and more than 30% passed three Wellness Criteria.
Part of our sustainability commitment is giving underserved markets access to essential services, including banking (RBank), air travel (CEB), and infrastructure (RLC).
RBank understands that having access to financial services enables access to other essential services that facilitates day-to-day living and promotes wellbeing. Financial inclusion provides families and microbusinesses with a safe and secure means to make transactions, send and receive payments, as well as save money in order to plan for long-term goals and emergencies. In 2020, RBank provided 9,259 MPhp in financial inclusion financing, with 16,119 MPhp in countryside development financing, and 62.3 MPhp banking for the unbanked.
For CEB, facilitating essential air travel means supporting connections among families and delivering indispensable goods. While the pandemic paused non-essential traveling in 2020, CEB has made sure 5,026,112 passengers and 109,409 tonnes of cargo were carried safely across their 57 routes. Thereby providing an important service for Filipinos.
For CEB, facilitating essential air travel means supporting connections among families and delivering indispensable goods. While the pandemic
paused non-essential traveling in 2020, CEB has made sure 5,026,112 passengers and 109,409 tonnes of cargo were carried safely across their 57 routes. Thereby providing an important service for Filipinos.
RLC’s properties serve as convenient and critical hubs for customers in need of government services. For one, Lingkod Pinoy in 2020 made 31,883 transactions per day. The properties also provide accessibility for the transport sector, dedicating 63,003 square meters of area for transport hubs. RLC’s residences also provide families with secure and safe homes. In 2020, 256 hectares were built for townships, providing people a space to live and flourish.
Privacy protection is also a priority with state-of-the art technology safeguarding customer data. In 2020, no data breach was recorded across the subsidiaries
Each subsidiary ensures the consistent delivery of quality and excellence to consumers, adapting to the ever-evolving market to offer products and services that are not just innovative and accessible but also relevant to the public’s present needs.
This year, RLC Hotels and Resorts addressed consumer demands in the pandemic by converting hotel rooms into Working-on-the-Go and Home-to-Go Accommodations for remote students and professionals.
A pioneer in the petrochemical industry as the largest manufacturer of polyolefins in the country, JGSPG provides key industries in the Philippines with EVALENE® polyethylene (PE) and polypropylene (PP) resins that are FDA Philippines- and Halal-certified. In 2020, JGSPG sold a total of 925,506 metric tons of products. Of these, 73% were sold locally and 27% sold internationally.
At JGS, we place utmost importance on customer satisfaction. In a recent customer survey through “Advantage Group,” URC BCF Philippines ranked at 7th place in retailer perception after coming in at 13th in the previous year. An annual customer satisfaction survey in 2020 showed that 93% of JGSPG customers across all category segments expressed overall satisfaction with EVALENE product performance, which is an improvement from the 90% satisfaction rating in 2019. Respondents of the survey represented 57% of the total volumes sold in the previous year.
For a better gauge of consumer sentiment and expectations, JGSHI subsidiaries have created channels for customer communication such as:
We invest in our greatest asset, our people, to thrive in the workplace of the future.
*In 1H2020 face-to-face training stalled due to pandemic; digital trainings kicked-off in second half of 2020. Number does not include CCU employees.
In 2020, JGS’s total workforce consists of 22,508 individuals of different skills and backgrounds. Despite the economic implications of the pandemic, the company hired 3,173 new employees this year. In particular, URC’s increase in data coverage and JGSPG’s continuous hiring to prepare the organization for upcoming new businesses led to both companies growing in number in 2020.
• URC Thailand named among Marketeer Business
Magazine’s “Best Companies to Work for in Asia”
• RBank was among the winners at the Philippines
Best Employer Brand Awards 2020
At JGS, we recognize the value of hiring people with diverse genders, nationalities, and ages to promote inclusivity and foster innovation. One of our priorities is accelerating gender equality and inclusion throughout the company.
As of 2020, JGS’s total workforce is 60.3% male and 39.7% female. Gender diversity and equality are further emphasized in the various JGS subsidiaries.
Additionally, millennials, whose age is between 25 to 40 years old, mainly compose JGS’s talent pool, accounting for 55% of the employees. This is followed by a crop of fresh talents from Gen X (42-56 years of age) and Gen Z (26 years old and below), making up 23% and 17% of the manpower, respectively. The rest of our talents comprise the experienced baby boomers (57 years of age and up).
As employees are one of the most valuable assets of JGS, we are committed to cultivating a long-term partnership with them. As of 2020, most of our workforce consists of regular employees under a full-time contract. In addition, more than half of the employees have been working at the company for over three years and more than a quarter have been employed at JGS for over seven years, demonstrating long lasting partnership between the Company and the employees.
Successful operations of the JGS subsidiaries rely in large part on the knowledge and skills of our labor force. As such, we champion the continuous growth and development of our people.
As the pandemic presented a challenge for staff training, new learning modalities and approaches were adopted to ensure that the organization maximized online learning opportunities. We have strengthened our digital delivery learning systems and platforms by providing self-directed learning content, allowing our employees to have the flexibility and access of learning anytime, and anywhere. These initiatives include JGS’s LinkedIn Learning , URC University Virtual Learning Plan, and CEB’s Learning Management System, and CEB University on the Go.
These online classes allowed continuous staff development with employees logging in a total of 2,437 training hours or an average of 7.25 training hours per employee for Corporate Center Units.
Individually, JGSPG invested Php 13.4 million in employee learning, development, and technical training with each employee completing an average of 32.6 training hours within the year.
Through the Environment, Health, and Safety (EHS) Group, the company sets safety standards and practices for the workplace with regular assessment of risks, hazards, and actions to eliminate or minimize incidents. Notably, JGSHI marked 65.9 million safe man-hours in 2020.
Twenty-seven lost time incidents (LTI) occurred throughout the year, more than half of last year’s accidents. We continue to monitor and review safety measures to prevent further incidents from happening.
At the onset of the coronavirus pandemic, the company made sure frontline workers and remote employees were equipped with the necessary safeguards to thrive in the new normal. This includes stricter safety protocols in the workplace, transportation, personal protective equipment (PPE), health care access, and social and financial assistance.