CORPORATE GOVERNANCE SCORECARD* FOR GOCC 2021**

QUESTION

YES

NO

LINK SOURCE

1. Does the GOCC disclose a policy that:

a. Stipulates the existence and scope of its effort to address customer’s welfare?

Yes. See LANDBANK Mission and Corporate Social Responsibility Statement

b. Elaborates its efforts to interact with the communities in which they operate?

Yes. See Our Corporate Policy, and Corporate Social Responsibility Statement

c. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?

Yes. See Corporate Social Responsibility Statement

2. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?

a. Customer health and safety

Yes. Please see below:

1. Consumer Protection Programs

2. COVID-19 Mitigation Protocols

"b. Interaction with the communities

Yes. Please see below:

1. LANDBANK Corporate Social Responsibility Statement 

2. LANDBANK’s list of awards for PY 2021

3. Community Involvement:

• Financial literacy training
• Waiver of fees for online fund transfers of retail clients
• LANDBANK paves the way for 1.5K Payatas families to become landowners
• LANDBANK donation to Odette-hit LGUs
• LANDBANK Share-A-Gift Program 
• LANDBANK Gawad Patnubay Scholarship Program

c. Environmentally-friendly value chain

3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?

Yes. Please see LANDBANK CSR Statement page and the following: 

1. LANDBANK donation to Odette-hit LGUs

2. LANDBANK Share-A-Gift Program 

3. LANDBANK Gawad Patnubay Scholarship Program

4. Where stakeholders interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights

a. Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders ( e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

Yes. See LANDBANK's website "Contact Us" page 

5. Performance-enhancing mechanisms for employee participation should be permitted to develop.

a. Does the GOCC explicitly mention the health, safety and welfare policy for  its employees?

Yes. See Employee Health and Well-being (2021) and COVID-19 HR Advisory

b. Does the GOCC publish data relating to health, safety and welfare of its employees?

c. Does the GOCC have training and development  programmes  for its employees?

Yes. See LANDBANK 2021 Training Calendar

d. Does the GOCC publish data on training and development programs for its employees?

6. Stakeholders including individual employee and their representative bodies should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.

a. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?

Yes. Provided under Item D. General Guidelines/Policies and Procedures of Rights of Whistleblowers LBP AO No. 141, s. 2018 Revised Guidelines on Internal Whistleblowing and Reporting (pages 3-8)

b. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

7. Quality of the Annual Report. Does the GOCC’s AR disclose the following items:

a. Corporate Objectives

Yes. See LANDBANK Vision and Mission , Our Corporate Policy and LANDBANK Business Model and Strategic Objectives

You may also see the following 2021 Performance Scorecard on the Transparency Seal:

• 2021 First Quarter Performance Scorecard (Board approval on 28 April 2021)
• 2021 Second Quarter Performance Scorecard (Board approval on 28 July 2021)
• 2021 Third Quarter Performance Scorecard (Board approval on 27 October 2021)
• 2021 Fourth Quarter Performance Scorecard (Board approval on 26 January 2022)

b. Financial performance indicators

Yes. See Financial Performance. (The Audited FS is not yet available.)

c. Non-financial performance indicators

Yes. See the following:

• Touchpoints

• Support to National Government Programs
• Digital Banking Reach
• ATM Availability Rate
• Major IT Projects in 2021
  • Credit Risk Engine System (CRES) I Enhancement- Phase 1

  • Digital Lending System

  • Provision for Virtual Private Network (VPN) and other related activities

  • Digitization of Bank Documents

  • Internet Banking Upgrade

  • IST-ATM Switch System Version Upgrade

  • Systematics (Deposit System) Upgrade

  • Vocalink (InstaPay 2.0)

  • Credit Risk Engine System (CRES) Phase II

d. Details of whistleblowing policy

e. Biographical details (directors)

Yes. See Board Qualifications, Educational Background And Experiences (2021)

f. Trainings or continuing education (directors)

Yes. See Board Qualifications, Educational Background And Experiences (2021)

8. Are the Annual Reports downloadable from the GOCC’s website?

9. Corporate Governance Confirmation Statement

a. Does the AR contain a statement confirming the company’s full compliance with the code of corporate governance and where there is non-compliance, identify and explain reasons for each such issue?

Yes. See Corporate Governance

10. Timely filing/release of annual/financial reports

a. Are the audited annual financial report/statement released within 60 days upon receipt from COA?

b. Is the Annual Report released within 90 days from the release of the audited financial report?

c. Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or the relevant officers of the company? 

11. Corporate Vision/Mission

a. Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?

b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?

Yes. See Board’s Overall Responsibility 2021 

12. Did the GOCC achieve 90% in the PES?

13. Code of ethics or conduct

a. Are the details of the code of ethics or conduct disclosed?

Yes. See 2021 Code of Conduct for LANDBANK Employees and Board of Directors

b. Does the GOCC disclose that all Directors/Commissioners, senior management  and employees are required to comply with the code?

c. Does the company disclose how it implements  and monitors compliance with the code of ethics or conduct?

14. Does the Board appoint  a Nomination Compensation/Renumeration Committee?

15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year?

Yes.See Board-Level Committees including Membership and Function, Corporate Governance Committee, pages 8-9, which states that based on its charter, the Corporate Governance Committee has to meet at least every quarter of every year. It held a total of nine meetings in 2021.

16. If yes, is the report of the Nomination Compensation/Renumeration Committee publicly disclosed?

17. Does the Board appoint  an Audit Committee?

18. If yes, is the report of the Audit Committee publicly disclosed?

19. Does at least one member of the Audit Committee have an audit, accounting or finance background  (qualification  or experience)?

Yes.  Please see Membership to Board-Level Committees.

The following AC Com members have Audit and Finance Background:

Director Jesus V. Hinlo , Jr.

Director Jaime Miralles

Director Virgilio DV. Robes

20. Did the Audit Committee meet at least four times during the year?

Yes, it meets at least once a month. Please refer to Board-Level Committees including Membership and Function, last paragraph, which states that “The Committee meets at least once a month and held a total of 6 meetings in 2021.”

22. If yes, is the report on Risk Management  Committee publicly disclosed?

Yes. See page 32 to 34 under Board-Level Committees including Membership and Function, Risk Oversight Committee

23. Does at least one member of the Risk Management  Committee have a background  in finance and investments?

24. Board meetings and attendance

a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)

Yes. See Board Meetings and Attendance 2021, which states that the schedule of the meetings of the Board of Directors is agreed upon at the beginning of the year. For CY 2021, this was agreed upon during the Board meeting held on January 13, 2021.

b. Does the Board of Directors meet at least monthly?

c. Did the Board of Directors meet on at least 75% on their scheduled meetings?

d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?

e. Did the Board of Directors meet separately at least once during the year without the President/CEO present?

25. Access to information

a. Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting?

b. Is the Board Secretary trained in legal, accountancy or company secretarial practices?

26. Internal Audit

a. Does the company have a separate internal audit function?

Yes, thru the Internal Audit Group.  Please refer to Units under the Board of Directors (Internal Audit Group).

b. Is the head of internal audit identified or, if outsourced,  is the name of the external firm disclosed?

Yes, the head of the Internal Audit Group is the head of the internal audit, who is a bank employee.  The external auditor is the Commission on Audit, Land Bank being a government entity.

Please refer to Land Bank of the Philippines Organizational Structure. 

c. Does the appointment  and removal of the internal auditor require the approval of the Audit Committee?

27. Risk Oversight

a. Does the company disclose the internal control procedures/risk management  systems it has in place?

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture, particularly the 1st sentence of the 5th paragraph, stating that: "At the Strategic Level, the LANDBANK Board through the Risk Com and Senior Management, are actively involved in an enterprise-wide RM oversight which involves formulation and approval of RM framework, policies and strategies, internal controls, and RM system as well as the annual review thereof.

b. Does the Annual Report disclose that the board of Directors/Commissioners have conducted a review of the company's material controls (including operational,  financial and compliance controls) and risk management  systems?

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture,page 1 of 34, particularly the 2nd sentence of the 5th paragraph, stating that:

"The LANDBANK Board and Senior Management are also involved in an organizational-wide risk monitoring  which is used as basis for decision-making and review of LANDBANK's controls/mitigating measures (operational, financial & compliance control) and RM system."

c. Does the company disclose how key risks are managed?

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture pages 3 to 29, under the topics 1. Credit RM 2. Market RM, 3. Liquidity RM, 4. Interest Rate Risk in the Banking Book 5. Operational RM 6. Information Security & Technology RM

d. Does the Annual Report contain a statement from the Board of Directors or Audit Committee commenting  on the adequacy of the GOCC's internal controls/risk  management  systems?

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture,   page 1 of 34, particularly the 4th paragraph stating that: “Results of audit engagements disclosed that the Bank’s overall internal control, risk management, and compliance processes provide reasonable assurance that the operating objectives are met in the areas of: (1) efficiency and effectiveness of operations; (2) reliability, timeliness, and transparency of internal and external information; and (3) compliance with laws, regulations, bank policies, and contracts."

28. Board Chairman

a. Do different persons assume the roles of Chairman and CEO?

29. Board of Directors Development

a. Does the GOCC have orientation programmes  for new Directors?

b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional  education programmes?

c. Did all Appointive Directors attend at least 1 training for the calendar year?

Dir. Jaime L. Miralles 
Dir. Jesus V. Hinlo, Jr. 
Dir. Nancy D. Irlanda 
Dir. Virgilio D. Robes

30. Board Appraisal

a. Is an annual performance  assessment  conducted of the Board of Directors assessment?

b. Does the GOCC disclose the process followed in conducting the Board assessment?

c. Does the GOCC disclose the criteria used in the Board assessment?

31. Committee Appraisal

a. Is an annual performance  assessment  conducted of the Board of Directors Committees?

BONUS

Stakeholder's Relationship: Does the GOCC practice Global Reporting Index (GRI) on its annual reports?

Disclosure and Transparency: Are the audited annual financial report/statement released within 30 days upon the receipt from COA?

PENALTY

Responsibilities of the Board

a. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs?

b. Is there non-compliance with Good Governance Conditions?

None. See Corporate Governance. LBP is fully compliant with Good Governance Conditions