CORPORATE GOVERNANCE SCORECARD* FOR GOCC 2022**

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
a) Client Advisory on Preventive Measures against COVID-19
b) Strict Observance of COVID-19 Risk Mitigating Protocols

b. Interaction with the communities

Yes. Please see below:

1. LANDBANK Corporate Social Responsibility Statement 

2. Awards:

a) LANDBANK bags three ADFIAP awards (Nov. 9, 2022)
b) LANDBANK wins three honors at 13th Asia CEO Awards (Oct 19, 2022)
c) LANDBANK bags two awards from Bataan LGUs (Aug 30, 2022)
d) LANDBANK’s agri support reaps ‘Gawad Lingap’ award (May 4, 2022)

• See more: List of awards

3. Financial Literacy Training
LANDBANK shares agri, dev't finance expertise to Cambodian bank (Nov. 17, 2022) 

4. Aids/Donation
a) LANDBANK, DA deliver cash aid to 6,200 Cagayan rice farmers (Nov. 11, 2022)
b) LANDBANK launches P10-B facility for Odette-affected rural banks (July 17, 2022)
c) LANDBANK: P21.2-M aid released to 198 LGUs affected by Odette (Jan. 21, 2022)
d) LANDBANK mobile ATM delivers cash aid to Leyte seniors
e) LANDBANK, UNICEF join hands to extend pre-disaster aid (Oct 7, 2022)
f) LANDBANK donates P1.5-M to earthquake-hit LGUs (Sept 21, 2022)
g) LANDBANK supports moratorium on ARB payments (Sept. 19, 2022)
h) LANDBANK deploys Mobile ATM in quake-hit Abra (Aug 9, 2022)
i) LANDBANK, DSWD deliver P3.8-B cash aid under targeted ‘ayuda’ program (July 4, 2022)
j LANDBANK delivers P1.51-B in loans to rice farmers (Apr 28, 2022)
k) LANDBANK deploys Mobile ATMs in typhoon-hit Nueva Ecija (Oct 7, 2022)

c. Environmentally-friendly value chain

Yes. See our Environmental-friendly value chain process.
a) Seaman-turned-farmer reaps success with help from LANDBANK (Dec. 6, 2022)
b) LANDBANK backs fisheries sector with P2.8-B credit (Dec. 29, 2022)
c) LANDBANK to fund P2.6-B hydropower plant in Bukidnon (Dec 20, 2022)
d) LANDBANK-funded ‘Cocohub’ boosts Cebu farmers’ income (Dec. 1, 2022)
e) LANDBANK-financed cold storage facility boosts local onion supply (Nov. 18, 2022)
f) LANDBANK AgriSenso underscores gov’t support for ARBs, ARBOs (Nov. 8, 2022)
g) LANDBANK assures available climate finance for adaptation, mitigation (Oct 3, 2022)
h) LANDBANK AgriSenso puts spotlight on affordable financing for agri players (Oct 3, 2022)
i) LANDBANK supports Cebu LGU’s livelihood program for farmers, fishers (Sept 22, 2022)
j) LANDBANK loans for high-value crops reach P17.4-B (Aug. 31, 2022)
k) LANDBANK lends P5.8-B to boost climate resiliency of agri sector (Aug 17, 2022)
l) LANDBANK bankrolls P1.15-B waste-to-energy power plant in Nueva Ecija (May 25, 2022)
m) LANDBANK launches P50-B loan program for crisis-affected enterprises (May 16, 2022)
n) LANDBANK loans reach P20-B for green energy projects (Apr 27, 2022)
o) LANDBANK delivers P569-M fuel subsidy for PUV drivers (Mar 19, 2022)
p) LANDBANK partners with agro-industrial firm to aid hog, poultry raisers (Feb 22, 2022)

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: 
a) LANDBANK tapped to deliver pre-disaster aid in typhoon-prone towns (June 29, 2022)
b) LANDBANK: P21.2-M aid released to 198 LGUs affected by Odette (Jan. 21, 2022)
c) Farmers to receive crop insurance via LANDBANK cash cards (Apr 8, 2022)
d) LANDBANK, DSWD strengthen partnership for vulnerable sectors (Sept 23, 2022)

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 (2022) 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 2022 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 2022 Performance Scorecard on the Transparency Seal:

• 2022 First Quarter Performance Scorecard
• 2022 Second Quarter Performance Scorecard
• 2022 Third Quarter Performance Scorecard
• 2022 Fourth Quarter Performance Scorecard

b. Financial performance indicators

Yes. See Annual Financial Reports 2022 on the Transparency Seal. (The Audited 2022 FS is not yet available.)
 

c. Non-financial performance indicators

Yes. See the following:
1. Touchpoints as of December 2022:
- Branches - 607
- Agri-hubs  - 16  
- Branch-lites - 8
- LEAFs - 44
- Mobile branches - 2
- FX & Tellering Booths - 6
- Agent Banking Partners - 1,056
- Cash Deposit Machines - 228
- LANDBANK ATMs - 2,997
- 7-11 ATMs - 2,323
- Provincial Lending Centers - 58 

2. Support to National Government Programs, page 3

3. Digital Banking Reach, page 3

4. ATM Availability Rate as of December 2022:
- 94.76% Ave. Service Availability of onsite ATMs 
- 85.28% Ave. Service Availability of offsite ATMs 
- Total Onsite ATMs – 1,128
- Total Offsite ATMs – 1,748
- Total Number of ATMs – 2,876 *excluding 121 UCPB-converted ATMs

5. Major IT Projects in 2022
- ATM Monitoring Solution Phase 2 – Enhancement 
- Legal Information Management System on Microsoft 365
- LANDBANK Tellering System
- New Human Resource Information System (NHRIS) 
- Systematics (Deposit System) Upgrade Phase 3
- IT System Enhancements for UCPB Products and Services 

d. Details of whistleblowing policy

e. Biographical details (directors)

Yes. See Board Qualifications, Educational Background And Experiences  (2022)

f. Trainings or continuing education (directors)

Yes. See Board Qualifications, Educational Background And Experiences  (2022)

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

LANDBANK's 2022 AR is not yet available. It shall be made available and downloadable from the Bank website within 90 days from receipt by the Bank of the COA AFS.

The Audited Annual Financial Report/Statement has not yet been received from COA.

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 2022 

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 2022 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 2022.

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

17. Does the Board appoint  an Audit Committee?

Yes.  Please refer to Audit and Compliance Committee section of  Board-Level Committees including Membership and Function, pages 1-3 (as of December 31, 2022).

1. Dir. Jesus V. Hinlo - Chairman (Term ended on 15 January 2022)
2.  Dir. Atty. Jaime L. Miralles - Vice-Chairman)
3.  Dir Virgilio DV. Robes - Member 

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

Yes. The AC Com’s oversight responsibilities and accomplishment report are incorporated in the Bank’s Annual Report which is posted in the LANDBANK website hence, available to the public. Please refer to Functional Supervision of the Audit and Compliance Committee of the Board-Level Committees including Membership and Function, pages 1-3

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. - Bachelor of Laws (Term ended on 25 January 2022)
- Director Atty. Jaime L. Miralles - Bachelor of Laws
- Director Virgilio DV. Robes - Business Administration

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 2022.”

For 2022, the committee held 12 meetings:
1.  2022-01-05
2.  2022-02-03
3.  2022-03-02
4.  2022-04-06
5.  2022-05-04
6.  2022-06-01
7.  2022-07-06
8.  2022-08-03
9.  2022-09-07
10.  2022-10-12
11.  2022-11-02
12.  2022-12-07 

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture, particularly the 2nd sentence of the 1st paragraph.
See also Board-Level Committees including Membership and Function, Risk Oversight Committee, pages 4-5.

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

Yes. See RiskCom Accomplishment Report, 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 2022, which states that the schedule of the meetings of the Board of Directors is agreed upon at the beginning of the year. For CY 2022, this was agreed upon during the Board meeting held on December 15, 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 6th 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, particularly the 2nd sentence of the 6th paragraph, stating that:"The LANDBANK Board through the RiskCom 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"

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

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture, 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, 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 programs for new Directors?

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

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

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?

Timely release of annual financial
report: Is the audited annual financial report/statement released within 30 days upon receipt from COA?

The Audited Annual Financial Report/Statement has not yet been received 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?

None for Appointive Directors. There is no appointive member of the Board of Directors who holds more than five (5) positions in GOCCs and PLCs. See Relevant Qualifications.

On the otherhand, ex officio members of the LANDBANK Board (DOF, DA, DOLE, DAR Secretaries) may occupy various positions in GOCCs and PLCs pursuant to a law or by virtue of their position or at the pleasure of the appointing authority (Philippine President).

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

None.