Employees, Customers, Suppliers and Creditors

Overview

Governance Statement Company Strategy and Objective Articles of Incorporation and By-laws

Board and Board Committees

Board Profile Board Structure Board Meetings Board Committees Board Development

Shareholders

Ownership Structure Rights and Equitable Treatment of Shareholders Annual Stockholders' Meeting Enterprise Risk Management Internal Controls

Stakeholders

Employees, Customers, Suppliers and Creditors Medium of Communication

CG Manual and Policies

Revised Corporate Governance Manual Code of Business Conduct and Ethics Anti-Bribery and Anti-Corruption Policy Board Diversity Policy Board Nomination and Election Policy Conflict of Interest Policy Corporate Disclosure Policy Dividend Policy Health, Safety and Welfare Policy Insider Trading Policy Protection of Creditors’ Rights Policy Succession Planning and Remuneration Policy Supplier Accreditation Policy Whistleblowing Policy

Compliance Reports

Annual and Sustainability Report Integrated Annual Corporate Governance Report (I-ACGR) Compliance Manual

Employees, Customers, Suppliers, Creditors and Communities

2023 Stakeholder Engagement Results

Stakeholders	Material Concerns	Modes of Engagement	Response
Investors and shareholders	Financial growth and profitability Ethical standard for governance and business conduct Commitment and targets to social and environmental responsibility especially on Climate Change	Result briefings through Quarterly and Annual Reports Annual stockholder meetings Disclosures to the Philippine Stock Exchange and other pertinent agencies Meetings with investors Oversight of the Board through its Governance, Nomination, Remuneration and Sustainability Committee (GNRSC) Correspondence with ESG rating agencies (e.g., CDP, Sustainalytics, MSCI)	Continuous development of business strategy to improve financial and operational performance Compliance with laws and regulations Adherence to good governance principles Incorporation of sustainability to business strategy Enhanced sustainability disclosure to include strategy to reach targets along with milestones Communication of received feedback to top management through Executive Leadership Council (ELC) meetings tofurther incorporate sustainability into business strategy
Employees	Competitive compensation and benefits Frequent career conversations between employees and their managers Exposure to career advancement opportunities Positive work culture driven by purpose, values and community	Town hall meetings Open dialogues Pulse Employee Engagement Survey	Continuous benchmarking to ensure up to date provision of competitive salaries, benefits, and employee growth initiatives such as formal training and e-training Strong partnership between HR and leadership on employees' performance management and development Setting of town hall meetings and other avenues for employee communication Adherence to good labor practices and workplace standards Purpose and values-driven initiatives to strengthen group identity, engagement and community
Suppliers and service providers	Lasting business commitments Complying to sustainable policies of JGSHI Timely payment	Vendor audits Open line communication	Execution of purchasing ethics, strategic purchasing, and supplier relationship management Strict implementation of Supplier Accreditation Policy Practice of due diligence in processing liabilities
Regulators and government bodies	Legal compliance with laws and regulations Comments and improvements on legislative proposals Partnership in social and environmental responsibility Feedback and suggestions on existing policies, laws and regulations affecting our other stakeholders	Annual and Sustainability Reports Statement of compliance Licenses to operate Position Papers Corporate social responsibility programs Association and/or community engagement with discussion regarding policies, laws and regulations affecting the association members and/or communities	Compliance with laws and regulations Submission of official position papers on legislative proposals Implementation of initiatives to support government programs (e.g., Lingkod Pinoy Centers and tree planting) Drafting and submission of feedback and suggestions for and on behalf of the Association and/or community
Communities	Community engagement and development Responsible environmental management	Corporate social responsibility programs Environmental compliance programs	Continuous development and design of projects and programs that respond to community needs Compliance with environmental standards
Customers of SBUs	Product quality Health and safety Marketing and labelling Data Privacy	Open communication channels Customer Satisfaction Survey	Quality assurance for products and services of each SBU Implementation of environmental, safety, and quality standards and assurance systems Proper marketing and labelling for product content, usage and service inclusions Enhanced JGSHI-wide information security system to prevent any data leak and security breach

I. Employees

The Company complies with the standards and policies set by the Department of Labor and Employment. Likewise, the Company has Security and Safety Manuals that are implemented, reviewed and regularly updated to ensure the security, safety, health, and welfare of the employees in the workplace. The Board also establishes policies, programs and procedures that encourage employees to actively participate in the realization of the Company’s goals and its governance including but not limited to:

Health, Safety and Welfare – Health, Safety and Welfare Policy
Training and Development – 2023 Digital Annual and Sustainability Report – Leadership and People Development; Digital Transformation and Customer Centricity
Rewards, Compensation and Benefits

A. Health, Safety and Welfare

Foster the health and well-being of our people

Worker safety and wellbeing are of utmost importance. To support the physical and mental health of our employees, we continued to improve our office spaces and included areas where people can work, eat, and relax. To provide a space that caters to new workplace realities, workspace renovations took place. Aside from this, to strengthen the culture of well-being, monthly webinars were conducted on diverse topics from subject matter experts. To check the health of employees, an Annual Physical Examination was likewise made available.

Pulsed our needs through employee listening and targeted our actions via analytics

We kept abreast of our people’s needs through employee listening initiatives. Through seamless surveys and clear analytics dashboards, we can ensure targeted action planning that drives our employee engagement.

Improved employee services via digitalization

Access to efficient employee services on an online platform was made possible through the Company's internal Employee Service Portal. To provide a delightful employee experience, the Company’s business units continued to utilize the Darwinbox human resource management platform with modules in Recruitment, Performance, Career Development, and more. Implementation of the Darwinbox platform was also expanded to more business units.

Embraced the hybrid environment to engage and recognize our people

We built connections with each other through groupwide and localized engagement and recognition initiatives. Likewise, we adapted by socializing our values and culture through hybrid events that were accessible to both onsite and online participants, resulting in better choices for our people.

Great Place to Work

The Company achieved a milestone by securing a Great Place to Work certification last year.

“Be A Hero” Campaign

In 2023, the culture team of the Company’s Corporate Human Resources Group strengthened the Company Purpose, Values, and Ambition (“PVA”) awareness through online and onsite activations.

Blood Donation Drive with Philippine Red Cross

As part of the OSH initiatives pursuant to the Company’s advocacy to provide impactful ways for individuals to make a positive difference in the lives of others and contribute to the overall health and well-being of the community, an onsite blood donation drive in partnership with the Philippine Red Cross was held in 2023.

Pride in Performance Awards

At last year’s annual Pride in Performance (“PIP”) Awards, teams that exemplify JGSHI's PVA in their endeavors were recognized and celebrated. The 13th edition of the PIP Awards had “The Great Big Leap” as its theme, highlighting the outstanding projects and initiatives from the past year that significantly contributed to the group's success, positively influencing stakeholders and the numerous customers it serves. The PIP Awards are discussed in more detail in https://www.jgsummit.com.ph/people-culture/the-gokongwei-group-s-13th-pip-awards-celebrating-purpose-values-ambition-20230912-lfrm3

B. Training and Development

The Corporate Human Resources Group of the Company conducts various trainings for its key officers and employees, as follows:

Leaders’ Conferences – strengthens enablement of skills for CHRO, CRO and OCFRO functions held in March, June and July, 2023, respectively
Executive Development Program – catered to over 150 graduates, such as i.) Executive Development Program: EVOLVE (35 leaders); ii.) Executive Development Program: ADVANCE (35 leaders); iii.) Executive Development Program: INSPIRE (35-47 leaders); and iv.) Executive Development Program: Executive Coaching (20 leaders)
Individual Development Plan - With a KPI of 75%, CCU adoption exceeded this target at 81% compliance and 210 employees who submitted their IDPs.
Craft Café - provided for opportunities for people’s continuous growth and development were identified for more focused efforts, a total of 4 Craft Café learning sessions were introduced as pilot courses for 2023, which garnered a 4.5 average rating with a total of 53 attendees.
LinkedIn Learning - ensure continuity and reinforcement of leadership learning via the online platform that can also help support self-directed learning.

C. Rewards, Compensation and Benefits

Rewards policy that accounts the company's performance in the long-term

At JG Summit, we firmly believe that good governance is the cornerstone of sustainable success. As we strive to attain excellence in corporate governance, we recognize the crucial role that rewards programs play in aligning the interests of our employees and stakeholders with the long-term goals of the company. Our commitment to fostering a culture of accountability, transparency, and ethical behavior is reflected in the design and implementation of our rewards programs, which effectively account for the company's performance in the long term.

Performance-Based Compensation

Our rewards programs are structured to emphasize performance-based compensation, ensuring that the financial incentives provided to employees are directly linked to the company's long-term success. We have implemented a comprehensive system that combines individual and team performance metrics with strategic objectives, enabling us to reward employees based on their contributions towards sustainable growth.

Balanced Scorecard Approach

To account for the company's performance holistically, we have adopted a balanced scorecard approach in our rewards programs. Beyond financial metrics, we consider a wide range of key performance indicators (KPIs) that align with our long-term strategy, including customer satisfaction, innovation, employee engagement, social responsibility, and environmental sustainability. This approach helps foster a well-rounded performance evaluation and rewards system, where employees are incentivized to contribute to the company's overall success across multiple dimensions.

Performance Assessment and Goal Setting

Our rewards programs go beyond annual performance evaluations. We engage in regular performance assessments, allowing us to review progress towards long-term goals and make necessary adjustments. Through this process, we provide employees with constructive feedback and set new targets, reinforcing our commitment to continuous improvement and long-term success.

Transparent Communication

Transparency is a fundamental aspect of good governance, and we prioritize open communication throughout our rewards programs. Employees are provided with clear guidelines and expectations regarding their performance assessments, rewards criteria, and the company's long-term objectives. Regular communication channels are established to share updates on progress and reinforce the link between performance and rewards, fostering a culture of trust and accountability.

Conclusion

At JG Summit, our rewards programs are designed to account for the company's performance in the long term, reflecting our commitment to good governance and sustainable success. By embracing performance-based compensation, adopting a balanced scorecard approach, engaging in regular performance assessments, and promoting transparent communication, we strive to ensure that our rewards programs effectively align the interests of our employees and stakeholders with the long-term goals of the company. Through these efforts, we demonstrate our dedication to fostering a culture of accountability, transparency, and ethical behavior, which underpins our pursuit of excellence in corporate governance.

II. Customers’ Welfare

The Company adopts customer relations policies and procedures to protect the customer’s welfare. This includes providing and making available the customer relations contact information empowered to address and attend to customer questions and concerns.

III. Supplier & Contractor Selection

The Company follows the Supplier Accreditation Policy to ensure that the Company’s suppliers and contractors are qualified to meet its commitments. Apart from the accreditation process, suppliers and contractors also undergo orientation on Company policies and ethical practices.

Supplier Accreditation Policy

IV. Creditors

The Company honors its contracted obligations and ensures the protection of creditors’ rights. The policy is posted on its website under the Governance section.

Protection of Creditors Rights Policy

V. Communities

The Company conducts various projects for its communities discussed in “Our Signature Initiatives” and “Shared Success” of the Annual Report.