CORPORATE SOCIAL RESPONSIBILITY

OF
PETRON CORPORATION
Profile

Petron Corporation is the largest oil refining and marketing company in the Philippines.
Supplying nearly 40% of the country’s oil requirements, our world-class products and
quality services fuel the lives of millions of Filipinos every day.

Operating an integrated crude oil refinery and petrochemicals complex with a rated
capacity of 180,000 barrels per day in Limay, Bataan. Petron’s Integrated Management
System (IMS)-certified refinery processes crude oil into a full range of petroleum
products including:
 gasoline,
 diesel,
 liquefied petroleum gas (LPG),
 jet fuel,
 kerosene,
 industrial fuel oil,
 and petrochemical feedstock benzene,
 toluene,
 mixed xylene,
 and propylene.

 largest retail network

 1,900 service stations

Exports various petroleum and non-fuel products to Asia-Pacific countries such as

o Japan,
o India,
o Malaysia,
o Singapore,
o South Korea,
o Thailand,
o Pakistan,
o and even to the United Arab Emirates.

Recently established Petron Oil and Gas International to run three companies in Malaysia
that comprise an integrated downstream business.

With nearly 80 years of experience in the oil industry, Petron continued to be dedicated
and passionate about vision to be the leading provider of total customer solutions in the
energy sector and its derivative businesses.

∞
As the country's largest oil refining and marketing company, they continuously aspire to
be socially responsible and good corporate citizens. Thus, they integrate sustainability
and corporate social responsibility (CSR) programs into their business prospects.

Through Petron Foundation Inc. (PFI), their CSR arm, Petron launch and maintain
various initiatives that address national concerns in essential areas such as education,
environment, health and human services, and other advocacies in partnership with the
communities, local and national government units, like-minded organizations, and their
employee-volunteers.

Ultimately, the goal is to contribute to a brighter future for Filipinos by fueling H.O.P.E.
(Helping the Filipino Children and Youth Overcome Poverty through Education), their
flagship program in education.

SHARING THE GIFT OF EDUCATION

Tulong Aral ng Petron is a long-term and strategic initiative that helps send poor children
to school, keep them there, and make sure they learn.

Petron started Tulong Aral in 2002 to give scholars the opportunity to complete
elementary education. It has since provided scholarships to top scholars in high school
and college.

Tulong Aral Ng Petron

Tulong Aral scholars are enrolled from Grades 1 to 6 in partner schools in the
National Capital Region (Caloocan, Malabon, Navotas, Valenzuela, Manila,
Pasay, Mandaluyong, Quezon City, Parañaque, Taguig, Pateros, Pasig and Las
Piñas) and in the Mindanao region (Davao, South Cotabato, Sarangani, Iligan,
Misamis Oriental and Zamboanga).

Scholars enjoy benefits, including the provision of books, school supplies and
uniforms as well as daily meal allowances. Petron also give capability building
and livelihood programs for their parents.

Their partners in Tulong Aral include the Department of Social Welfare and
Development (DSWD) and the Department of Education (DepEd), with World
Vision Development Foundation in implementing the program. Our partnership
with SM Retail, Inc. allows for the efficient distribution of school supplies to the
scholars.

Support programs for Tulong Aral include the conduct of mentoring sessions for
scholars by students from the Ateneo de Manila High School.
Tulong Aral High School Scholarship
Petron is supporting the education of its top Tulong Aral elementary graduates
through secondary school under the Tulong Aral High School Scholarship
Program, a partnership among DepEd, DSWD, and Land Bank of the Philippines.

The program is being implemented for Petron by the Philippine Business for
Social Progress (PBSP), with the Philippine Psychology and Research Training
House providing the research and training component.

To further their scholars' development, PFI and PBSP conduct a series of one-day
leadership and life skills workshop "The Best U Can Be" to better prepare them
for their graduation from high school. Employee volunteers from Petron and Land
Bank help facilitate the learning sessions.

Tulong Aral College Scholarship

Through the Tulong Aral College Scholarship, Petron makes ten scholarship slots
each in a Bachelor's degree in Engineering, a Bachelor's degree in a four-year
course relevant to Petron's business, and a Technical/Vocational course for
Tulong Aral seniors who qualify in the schools' admissions procedures.

Petron see this as the next step in road map for an integrated poverty alleviation
strategy, with the college scholars eventually earning an opportunity to be
employed in Petron.

Petron Schools
With a dearth of classrooms in the country, Petron build schools to give children
access to venues for learning, especially in the most remote areas in the
Philippines.

Starting in 2002, they have put up and inaugurated Petron schools in the following
locations:
 Misamis Oriental
 Davao City
 Zamboanga City
 Basilan
 Bataan
 Sarangani
 Mandaue City
 Iligan City
 Jimenez
 Nasipit
 Tawi-Tawi
 Sultan sa Barongis and Datu Paglas in Maguindanao

A partnership with the United States Agency for International

Development/Philippines (USAID) has allowed for the construction and repair of
 classrooms in Region 9, Region 12, and the Autonomous Region of Muslim
Mindanao. By the end of 2011, we were able to build a total of 108 new
classrooms or 59 two-classroom USAID-Petron Schools, furnished with comfort
rooms, student desks, teacher's tables and chairs, bookshelves and wall fans and
refurbished 480 existing ones, or 588 classrooms in all.

Another partnership with USAID, under the International Youth Foundation-

Education and Livelihood Skills Assistance 2 (IYF-ELSA2), is the Educators
Professional Development Program. It was implemented under the International
Youth Foundation-Education and Livelihood Skills Alliance (ELSA) composed of
the Philippine Business for Social Progress (PBSP), Ayala Foundation, and
Consuelo Foundation. Through this large-scale capability building program for
teaching English, Science and Math covering Region 12, we are able to train
nearly 4,500 elementary school teachers through our partnership with the
International Youth Foundation, under ELSA and Notre Dame of Marbel
University in Koronadal City. Furthermore, 278 school administrators were given
support through management and leadership trainings.

Brigada Eskwela
Petron continues to be an active participant in the annual Brigada Eskwela or
National Schools Maintenance Program by DepEd. They have engaged volunteers
to help repair, refurbish, and rehabilitate public schools within their areas of
operation.

Reading Programs
Together with Sa Aklat Sisikat Foundation (SAS), Petron build a nation of
readers. SAS works with public schools all over the country, providing resources
to motivate Grade 4 students to make reading a part of their daily lives. A parallel
effort, the Petron Gurong Kaakbay Conference, helps sustain the reading program
and focuses on enabling public school teachers to serve as reading advocates and
change agents. The program offers additional in-depth training and support for
groups of highly motivated teachers from partner schools. Enrichment
Workshops, a component program of Petron Gurong Kaakbay, are conducted to
further the learning of teachers and principals.

Entrepreneurship Education

Petron contribution to sharing the gift of education continues to extend to the

secondary and tertiary levels, with entrepreneurial education as its focus.

High School Level: Through the Youth in Entrepreneurship and Leadership

Development or YIELD program, third year students of Muntinlupa Business
High School (MBHS) undertake a 240-hour on-the-job training at Petron service
stations. Their training includes learning the ropes in operations at the forecourt
and back office, as well as the rudiments of food service and business in the
 service station locators. Their knowledge is enhanced by skills and values learned
from weekly reflection sessions conducted among their fellow trainees.

College Level: The Junior Achievement Philippines, Inc. (JAPI) mini-company is

a program on enterprise education, where participating university students
undergo training on managing a company—from the time it is organized until its
dissolution. Petron employees serve as JAPI advisers for marketing, production,
and finance. The program, which begins in August and ends in March, has the
equivalent of six units in the schools' curriculum.

CARING FOR OUR COMMUNITY

1. Province of Bataan
Petron undertake strategic community programs to benefit thousands of residents
in the province:

Sulong KaBataan
In partnership with the Diocese of Balanga City, they established Sulong
KaBataan (which freely translates to encouraging the province, and in particular
its young people, to move forward).

Sulong KaBataan is a movement aimed at helping thousands of out-of-school

youth of the province by encouraging them to participate in programs to ensure
their long-term development, specifically through values formation, technical
skills, and leadership training. Sulong KaBataan also creates a platform for
discussion among youth leaders and the business community to pave the way for
greater opportunities for employment and livelihood. Ultimately, these
interventions are seen to help Bataeños become better, more productive, and
responsible citizens of Bataan.

Sulong KaBarangay
Sulong KaBarangay is the result of a public-private partnership among the local
government of Limay, DSWD, Petron Foundation, Petron Bataan Refinery, and
PinoyME Foundation. The program maintains five community sub-projects and
one livelihood sub-project by resident volunteers of Barangays Alangan and
Lamao, who take part in the seminars and trainings to identify the different issues
in their communities that need to be addressed.

Community projects include:

 Sulong Kalinisan –seeks to reduce, and manage solid waste in both
barangays
 Sulong Karunungan – aims to establish a training center in Brgy. Lamao
through the assistance of the Technical Education and Skills Development
Authority (TESDA)
  Sulong Katubigan – aims to aid resident in Sitios Calula, Ogpoy, and
Kalula in the construction of a gravitational water system
 Sulong Kalusugan, Sulong Kinabukasan – a health initiative to address
malnutrition and other diseases in the community

Meanwhile, the parallel sub-project, Sulong Kabuhayan, helps address the livelihood
concerns of the residents.

2. Pandacan, Manila
Petron inaugurated the Petron Community Health Center within the compound of
their Pandacan Terminal. A joint effort with the Manila Health Department, and
Ospital ng Maynila, the Community Health Center augments the health care
programs and services being delivered by nearby barangay health centers by
providing consultation and treatment, a clinical laboratory, X-Ray, and ultrasound
facilities.

Petron also established the Barangay Ecological Solid Waste Management

Program for residents of fenceline barangays in Pandacan, Manila.

ENGAGING OUR EMPLOYEES

Volunteerism has long been an entrenched corporate value in Petron Corporation. It was
in 1999 when they institutionalized all their projects under Volunteers in Action (VIA)
and strengthened the role of their employees in driving the company's corporate social
responsibility (CSR) programs.

Through VIA, management and employees deepen their engagement with communities
affected directly or indirectly by their business. They become stakeholders of a larger
community and see themselves as active agents of meaningful change.

Petron promotes the value of CSR as the spirit of bayanihan, a traditional trait that
resonates in every Filipino. Employees' family members and business partners participate
in VIA as well to become better involved in social development.

In 2011, Petron registered a milestone for employee volunteerism. In what is a first for
the company—and probably in the history of Philippine business—Petron achieved a
100% participation among its workforce. Petron employees put in an equivalent of
16,120 hours to various efforts in education, environment, and other community
endeavors. Furthermore, they pledged at least an hour of their salaries for the last
working day of 2011 to raise funds for Tulong Aral ng Petron under the "Share Your
Spare" campaign.
Not just their employees, their stakeholders engage in CSR projects. Also in 2011, they
accounted for 28,585 hours of volunteer work rendered to benefit 88,823 people.

VIA is a continuing employee engagement program that articulates Petron's corporate

positioning of leadership through partnerships. It has received citations from the
International Association of Business Communicators (IABC) and the Public Relations
Society of the Philippines (PRSP).