Industry Insight By The ESG Research Team The Intelligent Shift: Using Tech for Cost-Effective & Traceable Waste Management The Future is Now: Smart Technology for Waste Hauling and Real-Time Data for DENR Compliance For too long, waste management has been viewed as a necessary, but untrackable, operational cost. Today, the convergence of stricter Philippine regulation (RA 9003, RA 11898) and the need for ESG transparency is making technological integration mandatory. The goal is to move beyond mere collection and toward intelligent resource logistics. From Black Box to Traceable Supply Chain The key to cost efficiency and compliance is data traceability, which eliminates uncertainty and prevents financial penalties: Optimized Logistics & Cost Savings: Our use of modern fleet management and GPS tracking for our Solid Waste Collection & Hauling service is more than just timely—it’s efficient. Route optimization, enabled by real-time data, reduces fuel consumption, minimizes operational hours, and limits the carbon footprint of your waste transport, driving down your overall hauling costs by eliminating unnecessary trips. Reverse Vending Machine (RVM) Data: The RVM is a sophisticated data-capture tool. Every collected PET bottle or can is verified by barcode/weight, generating a tamper-proof, auditable record of collected volume. This immutable data stream directly supports your Extended Producer Responsibility (EPR) reporting requirements, offering verifiable proof of recovery to the DENR. Compliance Certainty: Utilizing technologies like smart bins (sensors that report fill levels) or integrated tracking systems ensures that segregation is properly maintained from the point of generation to the Material Recovery Facility (MRF). This prevents cross-contamination, maximizes resource recovery, and provides the documentation needed to prove compliance with RA 9003’s segregation at source mandate. In the Philippines, the move is toward “Smart Cities” and digital governance in waste management. ESG leverages this technological edge to provide clients with a verifiable, efficient, and future-proof waste management system that protects your bottom line and your license to operate. References for Insight Philippine Regulation & Technology: Republic Act No. 11898 (EPR Law) requires traceable, auditable systems for proving plastic recovery. Global Best Practice: Integration of Internet of Things (IoT) sensors and GPS tracking is recognized globally (e.g., in smart city initiatives) for optimizing collection routes, reducing fuel consumption, and cutting operational costs in waste management. Data Integrity: The use of technology (like RVMs and real-time tracking) addresses the persistent problem in the Philippines of inaccurate and disaggregated data on waste streams, which is critical for effective policy and reporting. Operational Efficiency: Data analytics and digital platforms improve overall performance, helping manufacturers and commercial establishments maintain ISO 14001 standards and meet customer-driven environmental supply chain requirements.

Industry Insight By The ESG Research Team Beyond Bins—The Shift to Circularity for Property Developers Maximize Property Value: Integrated Waste Solutions for Sustainable Real Estate (The RA 9003/EPR Edge) For property developers and managers, waste is a daily logistical headache and a long-term reputation risk. The modern tenant and consumer demand visible, high-performing sustainability in the properties they occupy. Converting Waste Liability into a Property AmenityThe Ecological Solid Waste Management Act (RA 9003) requires segregation at the source, but successful implementation is challenging for large developments. Our Integrated Facility Maintenance service bridges this gap by making compliance seamless: Hyper-Efficient Logistics: By integrating our personnel and systems into your malls and offices, we ensure segregation compliance post-tenant and manage the logistics of Material Recovery (MRF). This prevents compliance fines and ensures the environment remains pristine. Organic Waste Value: Our Composting & Organic Waste Solutions are critical for food-service tenants and large cafeterias. Diverting food waste prevents odors, reduces the overall volume of hauled garbage, and creates a circular output (compost) for property landscaping—a visible sign of sustainability. EPR Infrastructure: Deploying our Reverse Vending Machines (RVMs) on your premises provides a high-tech, consumer-friendly service that directly supports EPR compliance for brands within your portfolio, making your property a sustainable partner to major OEs. By outsourcing end-to-end waste compliance and recovery to [ESGC], property managers can focus on core operations while delivering verifiable, gold-standard sustainability for their tenants and patrons. References for Insight Philippine Law: Republic Act No. 9003 (Ecological Solid Waste Management Act of 2000), particularly on mandatory segregation and municipal solid waste management. Industry Standards: LEED (Leadership in Energy and Environmental Design) or EDGE Certifications (recognize high-performing, sustainable building operations, heavily weighted by waste diversion). Consumer Trend: Increasing tenant and consumer preference for commercial properties that visibly demonstrate active waste reduction and environmental responsibility. Circular Economy Principle: The service directly supports the principles of the Circular Economy, moving away from the linear “take-make-dispose” model by maximizing resource recovery within the property’s ecosystem.

Industry Insight By The ESG Research Team EPR Compliance is Not Optional—It’s a Financial Deadline Avoid Multi-Million Peso Fines: The Philippines’ EPR Law Demands Immediate, Verifiable Action The Extended Producer Responsibility (EPR) Act of 2022 (RA 11898) has fundamentally shifted the financial burden of plastic packaging waste from the government to large enterprises. This is no longer a Corporate Social Responsibility (CSR) initiative; it is a mandatory, time-bound legal requirement backed by hefty financial penalties. Why Act Now? The Compounding Targets The law imposes a progressive increase in recovery targets for Obliged Enterprises (OEs) (those with assets exceeding ₱100 million): Compliance Year Minimum Recovery Target (of Plastic Footprint) End of 2023 20% End of 2024 40% End of 2025 50% End of 2028 and beyond 80% OEs failing to meet these targets face steep fines: from ₱5 million to ₱10 million for the first offense, escalating to automatic business permit suspension for the third offense. Furthermore, the penalty can be twice the cost of the shortfall, whichever is higher. Our Reverse Vending Machine (RVM) Program and traceable plastic offsetting services provide the verifiable, auditable data required to prove compliance to the DENR. Don’t risk a violation; partner with an accredited organization to turn your legal obligation into a measurable, traceable sustainability win. References for Insight Philippine Law: Republic Act No. 11898 (Extended Producer Responsibility Act of 2022). Implementing Rules and Regulations (IRR): DENR Administrative Order No. 2023-02 (Implementing Rules and Regulations of the EPR Act of 2022). Penalty Structure: RA 11898, Section 44-H (Fines and Penalties). Asset Threshold: RA 11898 (Assets over ₱100 million define an Obliged Enterprise).