Converge Sustainability Report 2022

GIVING BACK TO OUR PLANET

Energy and
Emissions GRI 3-3, 302, 305; SASB TC-TL-130a; TCFD RM a), RM b), MT b), MT c)

Topic Owners:
EVP & Chief Network Transformation Officer
VP & Head of Workplace, Premises and Fleet Management Group

As Converge continuously upgrades its sustainability practices, we

also improved the efficiency and effectivity of our impact monitoring 2022 Performance Highlights: Energy and Emissions
processes to accurately measure our operations’ level of compliance
with Philippine environmental laws and the company’s share in
We also launched the following initiatives to provide better environmental
achieving UN SDGs 3 (Ensure healthy lives and promote well-being
outcomes:
for all at all ages), 12 (Responsible Consumption and Production) and
13 (Take urgent action to combat climate change and its impacts).
1. Renewable Energy Expansion - transition in energy source to
geothermal energy for our Clark Data Center
In 2022, we joined the Net Zero Carbon Alliance (NZCA), a private- 2. Acquired an energy data analytics solution to monitor our
sector led movement that encourages reduction of global warming- energy consumption patterns
contributing greenhouse gas (GHG) emissions to mitigate the 3. Established an Energy Management Policy in accordance with
negative effects of climate change. We also disclosed climate change ISO 50001:2018 Energy Management Systems
information to Carbon Disclosure Project (CDP) for the first time. 4. Data Center Power Usage Effectiveness
• Reduced cabling through better design to prevent
energy leak out
• Replaced old rectifiers with more efficient units to
reduce electricity consumption
2022 Performance Highlights: Energy and Emissions

Total fuel Total Power Gross Gross GHG

consumption electricity Usage Scope Scope Emissions We will continue to look for ways to lower our GHG emissions by
Effectiveness
consumption 1 GHG 2 GHG Reduction investigating the expansion of Retail Competition and Open Access
Emissions Emissions from
Conservation
(RCOA) contracts to other locations. We are also monitoring
7,781.2 21,145 7,594.2 government policy and programs for electric and hybrid vehicles, and
113,538.4 GJ 145,270 GJ 1.65 expect to pilot their use in our fleet when the infrastructure is ready
tCO2e tCO2e tCO2e
and costs are within an acceptable range. We will also continue to find
Note: This reflects energy and emissions data for generator sets, 1,441 vehicles, and 2,490 Converge
opportunities to improve our energy efficiency by analyzing energy
facilities and sites in the Philippines. The GHG Emissions Reduction is from the renewable energy consumption in our core operations for potential reduction and/or
switch of our data centers in Pasig and Clark. avoidance.

Given our larger-scale of operations for 2022, we worked closely with
Business Unit Partners to align strategies and develop all-inclusive
implementation procedures for business units. This provided a baseline for
the policy agenda to manage our energy and emission impacts, as well as
the business’ climate change, resource depletion, pollution, and health risk
to all living beings.
Finally, we have reviewed the exposure draft of International Financial
Reporting Standards (IFRS) S2 Climate-related Disclosures standard
and have taken note of the decision to include Scope 3 emissions in
reporting. Accordingly, we will prepare to estimate and disclose our
Scope 3 emissions in the next few years.

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 Converge Sustainability Report 2022
Converge ‘greens’ Pampanga
data center
With sustainability high on its agenda, Converge
has switched to 100% clean energy to run its data
center in Angeles City, Pampanga which is owned
and operated by its parent company, ComClark
Network and Technologies Corp.

Converge shared this milestone on Earth Day

2022, signifying its commitment to ensure a
livable planet and environmental sustainability.
Converge recently entered into a supply contract
with First Gen subsidiary, Greencore Geothermal,
to secure 14.4MW of geothermal energy for
two years (or 7.2 MW per year) until 2024 for
the Pampanga data center. The contract was
enacted through the guidance of the Department
of Energy RA 11285 Energy Efficiency and
Conservation Act, and Retail Competition
and Open Access (RCOA). The establishment
of RCOA is mandated by the Electric Power
Industry Reform Act of 2001 to offer options to
the end-users and grow the market.

“As part of our green initiatives and overall

sustainability commitment, we are progressively
moving towards the use of renewable energy
in our operations. Data centers which operate
24/7 require a lot of cooling and thus, consume
a lot of energy. This is the reason why we need to
ensure that our power requirement comes from
renewable sources like geothermal energy so that
it will have less impact on the environment,” said
Converge CEO Dennis Anthony Uy.

“Converge is continuously looking for ways to

further reduce its carbon footprint as we have
always believed that we need to protect the
environment for our business to be sustainable
and continue to flourish,” Uy stressed.

In 2021, Converge concluded a similar agreement

with Lopez Holdings’ First Gen, contracting 48
MW of geothermal energy until 2023 for the
company’s headquarters in Pasig, Metro Manila
which also houses a data center.

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Converge Sustainability Report 2022
GIVING BACK TO OUR PLANET

Materials and
Waste GRI 3-3, 301, 306; SASB TC-TL-440a; TCFD RM a), RM b), MT c)

Topic Owners:
VP & Head of Supply Chain
VP & Head of Workplace, Premises and Fleet Management Group
As part of our contribution to achieving UN SDG 12 (Ensure
sustainable consumption and production patterns) and with the
enactment of the Extended Producer Responsibility Law of 2022
(RA 11898), it is imperative to drive our business operations and
influence our business partners across the supply chain to pursue
greener operations that aim to curb waste electrical and electronic
equipment (WEEE) or e-waste, which aligns with the ITU target to
increase the global e-waste recycling rate to 30% by 2023.
Our wastes are mostly composed of E-Waste such as scrap
modems and routers, fiber optic cables, batteries, network
equipment, and various devices. We also have plastic wastes (i.e.
tarpaulins) for our marketing activities. Additionally, we have office
wastes composed of paper, plastics and general wastes, and mixed
construction debris from construction.
Waste Generation and Disposal
400 387 metric tons
Total weight of
waste generated
350
300
In 2022, we improved our end-of-life management by embedding
circularity in our operations and we were able to divert 98% of
waste from disposal through internal recycling and engagement
with accredited recyclers.
We continue to improve our performance as responsible producers
through the following initiatives:
1. CPEs refurbishment and disposal management - CPEs
are monitored from dispatch to disposal with programs
to prioritize refurbishment of returned CPEs. In 2022, we
were able to issue and utilize over 8,000 refurbished CPEs
instead of issuing brand new models.
2. Product End-of-life Management
• Engaged with key suppliers to encourage their continued
commitment to green product design and manufacturing,
reduce waste, inventory obsolescence, and damage
through better planning and develop future recovery
initiatives for operational reuse of materials
• Partnered with accredited recyclers such Jontrix
Trading Philippines and Green Antz Builders Inc. for the
processing, recycling, or thermal dissolution (waste-to-
energy) of WEEE or e-waste
• Partnered with KREations PH for the upcycling of excess
marketing materials (tarpaulins to bags)

3. Zero Waste Campaign - launched in November 2022 to

250
23% Total weight of
support solid waste management target of zero waste to
200 379 metric tons waste diverted landfill by 2030
from disposal

Percentage of 150 4. Solid and Hazardous Waste Management Framework

reclaimed products • Development of waste management classification scheme
and their packaging
materials for each
100 • To engage third-party for collection and treatment/
product category. disposal of residual waste
50
Total weight of
waste directed
0 8 metric tons to disposal

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 Converge Sustainability Report 2022
GIVING BACK TO OUR PLANET

Supplier Environmental
Assessment GRI 3-3, 308

Topic Owner:
VP & Head of Supply Chain

The suppliers and third-parties we engage are also expected

to comply with mandated environmental standards in their
operations, in support of UN SDG 12, as well as the country’s PDP
2017-2022 that upholds “Ecological Integrity, Clean and Healthy
Environment.” In order to ensure our stakeholders have the same
level of commitment in giving back to our planet, we had sharing
sessions on sustainable practices and experiences with some of
our key suppliers. With our updated Third Party due diligence
checklist for all suppliers, we require them to submit the following
documents:

• Sustainability Assessment Checklist - included in Third

Party Vendor Accreditation Policy
• Vendor Commitment - shall be part of the 2023 Vendor
Performance Management System, which encourages
vendors alignment to implemented sustainability
programs
• Environmental Compliance Certificate

The above requirements will give us an indication on the

environmental impact of our suppliers. In 2022, 65 out of 207
assessed suppliers were not yet compliant with the precautionary
approach to environmental challenges. We will undertake initiatives
to promote greater environmental responsibility with our suppliers
and encourage them to develop and explore environmentally
friendly technologies.

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